Lake Shore Bancorp, Inc. (the “Company”) (NASDAQ: LSBK), the
holding company for Lake Shore Savings Bank (the “Bank”), reported
unaudited net income of $1.0 million, or $0.17 per diluted share,
for the 2024 first quarter compared to net income of $1.7 million,
or $0.29 per diluted share, for the 2023 first quarter. Net income
decreased $670,000, or 39.8%, when compared to the 2023 first
quarter and was negatively impacted by a decrease in net interest
income and the period-over-period change in the provision for
credit losses. These changes were partially offset by a decrease in
non-interest expense and an increase in non-interest income
primarily as a result of a bank-owned life insurance restructure
which took place during the fourth quarter of 2023.
“I am pleased with our first quarter 2024
earnings as we continue to transition from regulatory matters to
more customer driven performance,” stated Kim Liddell, President,
CEO, and Director. "As a sign of this transition, our members
approved the dividend waiver for Lake Shore, MHC, creating the
potential to resume paying a dividend of up to $0.72 per share over
the next year."
2024 First Quarter Financial
Highlights:
- Total deposits increased by $3.8
million, or 0.6% since December 31, 2023. At March 31, 2024 and
December 31, 2023, the Company’s percentage of uninsured
deposits to total deposits was 12.6% and 12.8%, respectively;
- Reduced reliance on wholesale
funding with the repayment of $11.0 million of brokered CDs and
$10.0 million of Federal Home Loan Bank of New York ("FHLBNY")
borrowings during the 2024 first quarter;
- On April 2, 2024, members of Lake
Shore, MHC (the "MHC") approved the waiver of potential dividends
by the MHC for up to $0.72 per share for dividends to be
potentially declared by the Company during the twelve months ending
April 2, 2025, subject to the non-objection by the Federal Reserve
Bank of Philadelphia;
- Book value per share increased 0.3%
to $15.22 per share at March 31, 2024 as compared to $15.17 per
share at December 31, 2023; and
- The Bank's capital position remains
"well capitalized" with a Tier 1 Leverage ratio of 13.05% and a
Total Risk-Based capital ratio of 18.13% at March 31, 2024.
Net Interest Income
Net interest income for the 2024 first quarter
decreased $1.2 million, or 18.4%, to $5.1 million as compared to
$6.3 million for the 2023 first quarter. Net interest margin and
interest rate spread were 3.10% and 2.55%, respectively, for the
2024 first quarter as compared to 3.76% and 3.48%, respectively,
for the 2023 first quarter.
Interest income for the 2024 first quarter was
$8.6 million, an increase of $658,000, or 8.3%, compared to $8.0
million for the 2023 first quarter. The increase was primarily due
to a 45 basis point increase in the average yield on
interest-earning assets due to an increase in market interest
rates, partially offset by a decrease in the average balance of
interest-earning assets of $7.5 million, or 1.1%.
Interest expense for the 2024 first quarter was
$3.5 million, an increase of $1.8 million, or 109.4%, from $1.7
million for the 2023 first quarter. The increase in interest
expense was primarily due to a 138 basis point increase in average
interest rate paid on interest-bearing liabilities. During the
first quarter of 2024, there was a $1.3 million increase in
interest expense on time deposit accounts when compared to the
first quarter of 2023 due to a 192 basis point increase in the
average interest rate paid on time deposits along with an increase
in average time deposit balances of $39.5 million, or 21.6%. The
increase in the average interest rate paid on deposit accounts was
primarily due to the increase in market interest rates and deposit
competition. Average interest-bearing deposit balances were $494.4
million during the first quarter of 2024, a 2.4% increase primarily
resulting from an increase in time deposits since March 31, 2023.
During the 2024 first quarter, interest expense on borrowed funds
and other interest-bearing liabilities decreased by $115,000, or
33.1%, compared to the 2023 first quarter, primarily due to a $12.2
million decrease in average borrowed funds and other
interest-bearing liabilities outstanding as we reduced our FHLBNY
borrowings.
Non-Interest Income
Non-interest income was $707,000 for the 2024
first quarter, an increase of $153,000, or 27.6%, as compared to
the 2023 first quarter. The increase was primarily due to a
$110,000 increase in earnings on bank-owned life insurance in
connection with the restructuring of bank-owned life insurance
during the fourth quarter of 2023 and a favorable variance of
$49,000 related to interest rate swaps during the first quarter of
2024 as the result of unwinding the swaps during 2023.
Non-Interest Expense
Non-interest expense was $5.0 million for the
2024 first quarter, a decrease of $522,000, or 9.5%, as compared to
$5.5 million for the 2023 first quarter. The decrease relates
primarily to a decline in professional services expense of
$523,000, or 61.5%. Additionally, advertising costs decreased by
$127,000, or 71.3%, due to a decrease in marketing spending, and
occupancy and equipment expenses decreased by $94,000, or $11.8% as
the result of efforts to optimize operating expenses. These
decreases were partially offset by an increase in FDIC insurance
expense of $184,000, or 193.7%, when compared to the prior year
period due to an increase in premium assessments related to
regulatory matters and an increase in data processing costs of
$75,000, or 19.8%, primarily due to an increase in costs related to
core system maintenance and enhancements to existing IT security
protocols.
Credit Quality
The Company's allowance for credit losses on
loans was $6.2 million at March 31, 2024 as compared to $6.5
million at December 31, 2023. The Company's allowance for credit
losses on unfunded commitments was $356,000 at March 31, 2024 as
compared to $485,000 at December 31, 2023.
Non-performing assets as a percentage of total
assets increased to 0.55% at March 31, 2024 as compared to 0.47% at
December 31, 2023. The Company’s allowance for credit losses on
loans as a percent of net loans was 1.12% at March 31, 2024 and
1.16% at December 31, 2023. The decline in the allowance for credit
losses to net loans was primarily due to a decrease in the
quantitative loss factors derived from historical loss rates
calculated in the vintage model.
Balance Sheet Summary
Total assets at March 31, 2024 were $717.6
million, a $7.5 million decrease, or 1.0%, as compared to $725.1
million at December 31, 2023. Cash and cash equivalents increased
by $1.2 million, or 2.3%, from $53.7 million at December 31, 2023
to $55.0 million at March 31, 2024. The increase was primarily due
to an increase in total deposits, a decrease in securities
available-for-sale, and the cash proceeds received from the
restructure of bank-owned life insurance, partially offset by a
decrease in total borrowings. Securities available for sale were
$58.7 million at March 31, 2024 as compared to $60.4 million at
December 31, 2023. Loans receivable, net at March 31, 2024 and
December 31, 2023 were $555.5 million and $555.8 million,
respectively. Total deposits at March 31, 2024 were $594.7 million,
an increase of $3.8 million, or 0.6%, compared to $590.9 million at
December 31, 2023. Total borrowings decreased to $25.3 million at
March 31, 2024, a decrease of $10.0 million, or 28.4% as compared
to $35.3 million as of December 31, 2023.
Stockholders’ equity at March 31, 2024 was $86.5
million, a $273,000 increase, or 0.3%, as compared to $86.3 million
at December 31, 2023. The increase in stockholders’ equity was
primarily attributed to $1.0 million in net income earned during
the first quarter of 2024, partially offset by a $798,000
unrealized mark-to-market loss on the available-for-sale securities
portfolio recognized as an other comprehensive loss during the
period. About Lake Shore
Lake Shore Bancorp, Inc. (NASDAQ Global Market: LSBK) is the
mid-tier holding company of Lake Shore Savings Bank, a federally
chartered, community-oriented financial institution headquartered
in Dunkirk, New York. The Bank has eleven full-service branch
locations in Western New York, including five in Chautauqua County
and six in Erie County. The Bank offers a broad range of retail and
commercial lending and deposit services. The Company’s common stock
is traded on the NASDAQ Global Market as “LSBK”. Additional
information about the Company is available at
www.lakeshoresavings.com.
Safe-Harbor
This release contains certain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995, that are based on current expectations,
estimates and projections about the Company’s and the Bank’s
industry, and management’s beliefs and assumptions. Words such as
anticipates, expects, intends, plans, believes, estimates and
variations of such words and expressions are intended to identify
forward-looking statements. Such statements reflect management’s
current views of future events and operations. These
forward-looking statements are based on information currently
available to the Company as of the date of this release. It is
important to note that these forward-looking statements are not
guarantees of future performance and involve and are subject to
significant risks, contingencies, and uncertainties, many of which
are difficult to predict and are generally beyond our control
including, but not limited to, compliance with the Bank’s Consent
Order and an Individual Minimum Capital Requirement both issued by
the Office of the Comptroller of the Currency, compliance with the
Written Agreement with the Federal Reserve Bank of Philadelphia,
data loss or other security breaches, including a breach of our
operational or security systems, policies or procedures, including
cyber-attacks on us or on our third party vendors or service
providers, economic conditions, the effect of changes in monetary
and fiscal policy, inflation, unanticipated changes in our
liquidity position, climate change, geopolitical conflicts, public
health issues, increased unemployment, deterioration in the credit
quality of the loan portfolio and/or the value of the collateral
securing repayment of loans, reduction in the value of investment
securities, the cost and ability to attract and retain key
employees, regulatory or legal developments, tax policy changes,
and our ability to implement and execute our business plan and
strategy and expand our operations. These factors should be
considered in evaluating forward looking statements and undue
reliance should not be placed on such statements, as our financial
performance could differ materially due to various risks or
uncertainties. We do not undertake to publicly update or revise our
forward-looking statements if future changes make it clear that any
projected results expressed or implied therein will not be
realized.
Source: Lake Shore Bancorp, Inc.Category: Financial
Investor Relations/Media ContactTaylor M.
GildenChief Financial Officer and TreasurerLake Shore Bancorp,
Inc.31 East Fourth StreetDunkirk, New York 14048(716) 366-4070 ext.
1065
Lake Shore Bancorp, Inc.Selected Financial
Information |
|
|
|
|
|
|
|
|
Selected Financial
Condition Data |
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
2024 |
|
2023 |
|
|
(Unaudited) |
|
|
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
717,582 |
|
|
$ |
725,118 |
|
Cash and
cash equivalents |
|
54,953 |
|
|
|
53,730 |
|
Securities available for sale |
|
58,682 |
|
|
|
60,442 |
|
Loans
receivable, net |
|
555,455 |
|
|
|
555,828 |
|
Deposits |
|
594,704 |
|
|
|
590,924 |
|
Long-term debt |
|
25,250 |
|
|
|
35,250 |
|
Stockholders’ equity |
|
86,510 |
|
|
|
86,273 |
|
|
|
|
|
|
|
|
|
Condensed
Statements of Income |
|
|
Three Months Ended |
|
March 31, |
|
2024 |
|
2023 |
|
(Unaudited) |
|
(Dollars in thousands, except per share
amounts) |
|
|
|
|
|
|
|
|
Interest
income |
$ |
8,609 |
|
|
$ |
7,951 |
|
Interest
expense |
|
3,476 |
|
|
|
1,660 |
|
Net
interest income |
|
5,133 |
|
|
|
6,291 |
|
(Credit)
provision for credit losses |
|
(352 |
) |
|
|
(625 |
) |
Net
interest income after (credit) provision for credit losses |
|
5,485 |
|
|
|
6,916 |
|
Total
non-interest income |
|
707 |
|
|
|
554 |
|
Total
non-interest expense |
|
4,995 |
|
|
|
5,517 |
|
Income
before income taxes |
|
1,197 |
|
|
|
1,953 |
|
Income
tax expense |
|
183 |
|
|
|
269 |
|
Net
income |
$ |
1,014 |
|
|
$ |
1,684 |
|
|
|
|
|
|
|
|
|
Basic and diluted earnings per
share |
$ |
0.17 |
|
|
$ |
0.29 |
|
|
|
|
|
|
|
|
|
Lake Shore Bancorp, Inc.Selected Financial
Information |
|
|
|
|
|
|
|
Three Months Ended |
|
March 31, |
|
2024 |
|
2023 |
|
(Unaudited) |
|
Selected Financial
Ratios: |
|
|
Return on average assets |
|
0.57 |
% |
|
|
0.94 |
% |
Return on average equity |
|
4.69 |
% |
|
|
8.16 |
% |
Average interest-earning
assets to average interest-bearing liabilities |
|
126.33 |
% |
|
|
127.65 |
% |
Interest rate spread |
|
2.55 |
% |
|
|
3.48 |
% |
Net interest margin |
|
3.10 |
% |
|
|
3.76 |
% |
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
2024 |
|
2023 |
|
(Unaudited) |
|
|
|
|
|
|
|
Asset Quality
Ratios: |
|
|
|
|
|
Non-performing loans as a percentage of net loans |
|
0.71 |
% |
|
|
0.60 |
% |
Non-performing assets as a
percentage of total assets |
|
0.55 |
% |
|
|
0.47 |
% |
Allowance for credit losses as
a percentage of net loans |
|
1.12 |
% |
|
|
1.16 |
% |
Allowance for credit losses as
a percentage of non-performing loans |
|
159.19 |
% |
|
|
193.09 |
% |
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
2024 |
|
2023 |
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
Share
Information: |
|
|
|
|
|
|
|
Common
stock, number of shares outstanding |
|
5,684,784 |
|
|
|
5,686,288 |
|
Treasury
stock, number of shares held |
|
1,151,730 |
|
|
|
1,150,226 |
|
Book
value per share |
$ |
15.22 |
|
|
$ |
15.17 |
|
|
|
|
|
|
|
|
|
Lake Shore Bancorp (NASDAQ:LSBK)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Lake Shore Bancorp (NASDAQ:LSBK)
Gráfica de Acción Histórica
De May 2023 a May 2024