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Lake Shore Bancorp, Inc. Announces Third Quarter 2024 Financial Results

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Lake Shore Bancorp (NASDAQ: LSBK) reported Q3 2024 net income of $1.3 million ($0.24 per diluted share), up from $1.1 million in Q2 2024 but down from $1.6 million in Q3 2023. The quarterly improvement was driven by increased net interest income and reduced non-interest expenses. Net interest margin improved to 3.28%, up 14 basis points from Q2. The company successfully grew organic deposits by 2.2% while repaying $25.0 million in FHLBNY borrowings and not renewing $16.0 million in brokered CDs. Year-to-date net income was $3.5 million compared to $4.1 million in the same period of 2023.

Lake Shore Bancorp (NASDAQ: LSBK) ha riportato un utile netto per il terzo trimestre del 2024 di 1,3 milioni di dollari (0,24 dollari per azione diluita), in aumento rispetto a 1,1 milioni di dollari nel secondo trimestre del 2024, ma in calo rispetto a 1,6 milioni di dollari nel terzo trimestre del 2023. Il miglioramento trimestrale è stato guidato da un incremento del reddito netto da interessi e da una riduzione delle spese non legate agli interessi. Il margine di interesse netto è migliorato portandosi a 3,28%, con un aumento di 14 punti base rispetto al secondo trimestre. L'azienda ha registrato una crescita dei depositi organici del 2,2%, mentre ha rimborsato 25,0 milioni di dollari di prestiti FHLBNY e non ha rinnovato i certificati di deposito da 16,0 milioni di dollari. L'utile netto da inizio anno è stato di 3,5 milioni di dollari rispetto ai 4,1 milioni di dollari nello stesso periodo del 2023.

Lake Shore Bancorp (NASDAQ: LSBK) reportó un ingreso neto para el tercer trimestre de 2024 de 1.3 millones de dólares (0.24 dólares por acción diluida), un aumento con respecto a 1.1 millones de dólares en el segundo trimestre de 2024, pero una disminución en comparación con 1.6 millones de dólares en el tercer trimestre de 2023. La mejora trimestral se debió al aumento en el ingreso neto por intereses y a la reducción de los gastos no relacionados con intereses. El margen de interés neto mejoró al 3.28%, un incremento de 14 puntos base con respecto al segundo trimestre. La compañía logró aumentar los depósitos orgánicos en un 2.2% mientras reembolsaba 25.0 millones de dólares en préstamos de FHLBNY y no renovó 16.0 millones de dólares en CD brokerados. El ingreso neto acumulado hasta la fecha fue de 3.5 millones de dólares en comparación con 4.1 millones de dólares en el mismo período de 2023.

레이크 쇼어 뱅코프 (NASDAQ: LSBK)는 2024년 3분기 순이익이 130만 달러(희석 주당 0.24 달러)로, 2024년 2분기의 110만 달러 대비 증가했지만, 2023년 3분기의 160만 달러와 비교하면 감소했다고 보고했습니다. 분기별 개선은 증가한 순이자 수입과 감소한 비이자 비용에 의해 이끌어졌습니다. 순이자 마진은 3.28%로 향상되어, 2분기보다 14베이시스 포인트 상승했습니다. 회사는 FHLBNY 차입금 2500만 달러를 상환하고, 중개된 CD 1600만 달러를 갱신하지 않으면서 유기적인 예금을 2.2% 증가시켰습니다. 연초부터 현재까지의 순이익은 350만 달러로, 2023년 같은 기간의 410만 달러와 비교됩니다.

Lake Shore Bancorp (NASDAQ: LSBK) a rapporté un revenu net de 1,3 million de dollars (0,24 dollar par action diluée) pour le troisième trimestre 2024, en hausse par rapport à 1,1 million de dollars au deuxième trimestre 2024, mais en baisse par rapport à 1,6 million de dollars au troisième trimestre 2023. L'amélioration trimestrielle a été soutenue par une augmentation des revenus nets d'intérêts et une réduction des dépenses non liées aux intérêts. La marge d'intérêts nets a progressé pour atteindre 3,28%, soit une hausse de 14 points de base par rapport au deuxième trimestre. L'entreprise a réussi à augmenter ses dépôts organiques de 2,2%, tout en remboursant 25,0 millions de dollars de prêts FHLBNY et en ne renouvelant pas 16,0 millions de dollars de CD de courtage. Le revenu net depuis le début de l'année était de 3,5 millions de dollars contre 4,1 millions de dollars pour la même période en 2023.

Lake Shore Bancorp (NASDAQ: LSBK) berichtete im dritten Quartal 2024 von einem Nettogewinn von 1,3 Millionen Dollar (0,24 Dollar pro verwässerter Aktie), ein Anstieg gegenüber 1,1 Millionen Dollar im zweiten Quartal 2024, jedoch ein Rückgang im Vergleich zu 1,6 Millionen Dollar im dritten Quartal 2023. Die Verbesserung im Quartal wurde durch einen Anstieg des Nettozinseinkommens und eine Reduzierung der nicht-zinsbezogenen Aufwendungen getrieben. Die Nettomarge der Zinsen verbesserte sich auf 3,28%, ein Anstieg um 14 Basispunkte gegenüber dem zweiten Quartal. Das Unternehmen konnte die organischen Einlagen um 2,2% steigern, während es 25,0 Millionen Dollar an FHLBNY-Darlehen zurückzahlte und 16,0 Millionen Dollar an vermittelten Festgeldern nicht erneuerte. Der Nettogewinn seit Jahresbeginn betrug 3,5 Millionen Dollar im Vergleich zu 4,1 Millionen Dollar im gleichen Zeitraum 2023.

Positive
  • Net income increased 19.4% quarter-over-quarter to $1.3 million
  • Net interest margin improved by 14 basis points to 3.28%
  • Efficiency ratio improved to 77.96% from 82.39% in Q2 2024
  • Organic deposit growth of 2.2% during first nine months of 2024
  • Strong capital position with Tier 1 Leverage ratio of 13.37%
Negative
  • Year-to-date net income declined to $3.5 million from $4.1 million in 2023
  • Net interest income decreased 16.4% year-over-year for first nine months
  • Non-performing assets increased to 0.57% of total assets from 0.47%
  • Total assets decreased by $27.5 million or 3.8% since December 2023
  • Net loans decreased by $16.8 million or 3.0% since December 2023

Insights

Lake Shore Bancorp's Q3 2024 results show mixed performance with some positive trends emerging. Net income increased 19.4% quarter-over-quarter to $1.3 million, though it's down from $1.6 million in Q3 2023. Key improvements include a 14 basis point increase in net interest margin to 3.28% and improved efficiency ratio of 77.96%.

The bank's strategic moves to reduce costly funding sources are noteworthy - retiring $25 million FHLB borrowings and $16 million brokered CDs while growing organic deposits by 2.2%. Capital ratios remain strong with Tier 1 Leverage at 13.37%. However, asset quality shows slight deterioration with non-performing assets ratio increasing to 0.57%.

The 3.8% reduction in total assets to $697.6 million reflects deliberate balance sheet optimization rather than weakness. The relatively low 13.4% uninsured deposits ratio provides stability in the current banking environment.

DUNKIRK, N.Y., Oct. 23, 2024 (GLOBE NEWSWIRE) -- Lake Shore Bancorp, Inc. (the “Company”) (NASDAQ: LSBK), the holding company for Lake Shore Savings Bank (the “Bank”), reported unaudited net income of $1.3 million, or $0.24 per diluted share, for the third quarter of 2024 compared to net income of $1.1 million, or $0.19 per diluted share, for the second quarter of 2024, and $1.6 million, or $0.27 per diluted share, for the third quarter of 2023. The increase in net income during the third quarter of 2024 was primarily driven by an increase in net interest income and a reduction in non-interest expenses when compared to the previous quarter. For the first nine months of 2024, the Company reported unaudited net income of $3.5 million, or $0.62 per diluted share, as compared to $4.1 million, or $0.69 per diluted share, for the first nine months of 2023. During the first nine months of 2024, the Company repaid Federal Home Loan Bank of New York (“FHLBNY”) borrowings of $25.0 million and did not renew $16.0 million of brokered certificates of deposit (“CDs”) while growing organic deposits by 2.2%.

“I am pleased to report a solid quarter of financial results, marked by quarterly earnings growth and an uptick in the net interest margin for the first time in well over a year," stated Kim C. Liddell, President, CEO, and Director. "These earnings reflect the Company’s ongoing focus on managing its financial performance amid challenging market conditions."

Third Quarter 2024 and Year-to-Date Financial Highlights:

  • Net income increased to $1.3 million during the third quarter of 2024, an increase of $216,000, or 19.4%, when compared to the second quarter of 2024. Net income was positively impacted by an increase in net interest income of $177,000, or 3.4%, and a decrease in non-interest expenses of $84,000, or 1.7%;
  • Net interest margin increased to 3.28% during the third quarter of 2024, an increase of 14 basis points when compared to a net interest margin of 3.14% during the second quarter of 2024;
  • Efficiency ratio improved to 77.96% for the third quarter of 2024 when compared to 82.39% for the second quarter of 2024;
  • Did not renew $16.0 million of brokered CDs and $25.0 million of FHLBNY borrowings through organic deposit growth of 2.2% during the first nine months of 2024;
  • At September 30, 2024 and December 31, 2023, the Company’s percentage of uninsured deposits to total deposits was 13.4% and 12.8%, respectively; and
  • The Bank's capital position remains "well capitalized" with a Tier 1 Leverage ratio of 13.37% and a Total Risk-Based capital ratio of 18.85% at September 30, 2024.

Net Interest Income

Net interest income for the third quarter of 2024 increased $177,000, or 3.4%, to $5.4 million as compared to $5.2 million for the second quarter of 2024 and decreased $912,000, or 14.5%, as compared to $6.3 million for the third quarter of 2023. Net interest margin and interest rate spread were 3.28% and 2.67%, respectively, for the third quarter of 2024 as compared to 3.14% and 2.56%, respectively, for the second quarter of 2024 and 3.74% and 3.32%, respectively, for the third quarter of 2023.

Net interest income for the first nine months of 2024 decreased $3.1 million, or 16.4%, to $15.7 million as compared to $18.8 million for the first nine months of 2023. Net interest margin and interest rate spread were 3.17% and 2.59%, respectively, for the first nine months of 2024 as compared to 3.72% and 3.36%, respectively, for the first nine months of 2023.

Interest income for the third quarter of 2024 was $8.9 million, an increase of $97,000, or 1.1%, compared to $8.8 million for the second quarter of 2024, and an increase of $130,000, or 1.5%, compared to $8.7 million for the third quarter of 2023. The increase from the prior quarter was primarily due to an 11 basis points increase in the average yield on interest-earning assets, partially offset by a decrease in the average balance of interest-earning assets of $6.0 million, or 0.9%. The increase from the prior year quarter was primarily due to a 21 basis points increase in the average yield on interest-earning assets, partially offset by a decrease in the average balance of interest-earning assets of $16.7 million, or 2.5%.

Interest income for the first nine months of 2024 was $26.2 million, an increase of $1.1 million, or 4.3%, compared to $25.1 million for the first nine months of 2023. The increase was primarily due to a 32 basis point increase in the average yield on interest-earning assets, partially offset by a decrease in the average balance of interest-earning assets of $14.0 million, or 2.1%.

Interest expense for the third quarter of 2024 was $3.5 million, a decrease of $80,000, or 2.3%, from the second quarter of 2024, and an increase of $1.0 million, or 43.0%, from $2.4 million for the third quarter of 2023. 

The decrease in interest expense when compared to the previous quarter was primarily due to a decrease in the average balance of interest-bearing liabilities of $12.0 million, or 2.3%. During the third quarter of 2024, there was a $52,000 decrease in interest expense on total deposit accounts when compared to the second quarter of 2024, due to a decrease in the average balance of total deposit accounts of $7.2 million, or 1.4% and a one basis point decrease in the average interest rate paid on total deposits. Additionally, interest expense on borrowed funds and other interest-bearing liabilities decreased by $28,000, or 15.8% during the third quarter of 2024 when compared to the second quarter of 2024, due to a decrease in the average balance of borrowed funds and other interest-bearing liabilities of $4.8 million, or 19.1%, as we reduced our FHLB borrowings.

The increase in interest expense when compared to the third quarter of 2023 was primarily due to an 86 basis points increase in the average interest rate paid on interest-bearing liabilities, partially offset by a decrease in the average balance of interest-bearing liabilities of $10.9 million, or 2.1%. During the third quarter of 2024, there was a $1.2 million increase in interest expense on total deposit accounts when compared to the third quarter of 2023 due to a 97 basis points increase in the average interest rate paid on total deposits along with an increase in average total deposit balances of $5.5 million, or 1.1%. The increase in the average interest rate paid on deposit accounts was primarily due to the increase in market interest rates and deposit competition. This increase was partially offset by a decrease in interest expense on borrowed funds and other interest-bearing liabilities of $173,000, or 53.7%, in the third quarter of 2024 when compared to the third quarter of 2023, primarily due to a $16.5 million decrease in the average balance of borrowed funds and other interest-bearing liabilities outstanding as we reduced our FHLBNY borrowings, and the average rate paid declined by 58 basis points.

Interest expense for the first nine months of 2024 was $10.5 million, an increase of $4.2 million, or 65.4%, from $6.3 million for the first nine months of 2023. The increase in interest expense was primarily due to a 109 basis points increase in average interest rate paid on interest-bearing liabilities, partially offset by a decrease in the average balance of interest-bearing liabilities of $8.0 million, or 1.5%. During the first nine months of 2024, there was a $4.6 million increase in interest expense on total deposit accounts when compared to the first nine months of 2023 due to a 122 basis points increase in the average interest rate paid on total deposits along with an increase in average total deposit balances of $6.3 million, or 1.3%. The increase in the average interest rate paid on deposit accounts was primarily due to the increase in market interest rates and deposit competition. This increase was partially offset by a decrease in interest expense on borrowed funds and other interest-bearing liabilities of $452,000, or 44.8%, during the first nine months of 2024 when compared to the first nine months of 2023, primarily due to a $14.4 million decrease in the average balance of borrowed funds and other interest-bearing liabilities outstanding along with a 45 basis points decrease in the average interest rate paid on borrowed funds and other interest bearing liabilities as we reduced our FHLBNY borrowings.

Non-Interest Income

Non-interest income was $791,000 for the third quarter of 2024, an increase of $53,000, or 7.2%, as compared to $738,000 for the second quarter of 2024, and an increase of $186,000, or 30.7%, as compared to $605,000 for the third quarter of 2023. The increase from the prior quarter was primarily due to a $67,000 increase in earnings on bank-owned life insurance during the third quarter of 2024 as the result of the recognition of a death benefit. The increase from the prior year quarter was primarily due to a $173,000 increase in earnings on bank-owned life insurance in connection with the restructuring of bank-owned life insurance during the fourth quarter of 2023 as well as an increase in service charges and fees of $28,000, or 10.9%.  

Non-interest income was $2.2 million for the first nine months of 2024, an increase of $524,000, or 30.6%, as compared to the first nine months of 2023. The increase was primarily due to a $394,000 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 the recognition of a death benefit in the third quarter of 2024, a favorable variance of $58,000 related to interest rate swaps during the first nine months of 2024 as a result of unwinding the swaps during 2023, and a $52,000 increase related to the loss on the sale of securities available for sale that occurred during the first nine months of 2023 as part of a balance sheet restructuring.

Non-Interest Expense

Non-interest expense was $4.8 million for the third quarter of 2024, a decrease of $84,000, or 1.7%, as compared to $4.9 million for the second quarter of 2024, and a decrease of $383,000, or 7.4%, as compared to $5.2 million for the third quarter of 2023. 

The decrease from the prior quarter was primarily related to a decrease in FDIC insurance expense of $154,000, or 54.2% and a decrease in professional services expense of $36,000, or 9.1%. These decreases were partially offset by an increase in salaries and employee benefit costs and other expenses.

The decrease from the prior year quarter was primarily related to a decrease in FDIC insurance expense of $165,000, or 55.9%, and a decrease in advertising expense of $146,000, or 93.0%, as a result of a decrease in marketing spending. As a result of management's efforts to rationalize staffing and optimize operating expenses, salaries and employee benefits decreased by $31,000, or 1.1%.

Non-interest expense was $14.7 million for the first nine months of 2024, a decrease of $1.9 million, or 11.5%, as compared to $16.6 million for the first nine months of 2023. The decrease related primarily to a decline in professional services expense of $1.0 million, or 48.0%, as a result of a decrease in the use of external consultants. Additionally, advertising costs decreased by $435,000, or 84.6%, due to a decrease in marketing spending, and FDIC insurance costs decreased by $133,000, or 16.1%. As a result of management's efforts to rationalize staffing and optimize operating expenses, salaries and employee benefits decreased by $208,000, or 2.5% and occupancy and equipment expenses decreased by $148,000, or 6.7%. These decreases were partially offset by an increase in data processing costs of $51,000, or 4.0%.

Credit Quality

The Company's allowance for credit losses on loans was $5.5 million at September 30, 2024 as compared to $6.5 million at December 31, 2023. The Company's allowance for credit losses on unfunded commitments was $574,000 at September 30, 2024 as compared to $485,000 at December 31, 2023.

Non-performing assets as a percentage of total assets increased to 0.57% at September 30, 2024 as compared to 0.47% at December 31, 2023 as a result of a decrease in total assets of $27.5 million and an increase in non-performing assets of $628,000. The Company’s allowance for credit losses on loans as a percent of net loans was 1.01% at September 30, 2024 and 1.16% at December 31, 2023. The decline in the allowance for credit losses to net loans and the corresponding credit to the provision for credit losses recognized was primarily due to a decrease in the quantitative loss factors derived from historical loss rates calculated in the vintage model as well as a decrease in the qualitative loss factor derived from forecasting economic trends.

Balance Sheet Summary

Total assets at September 30, 2024 were $697.6 million, a $27.5 million decrease, or 3.8%, as compared to $725.1 million at December 31, 2023. Cash and cash equivalents decreased by $3.7 million, or 7.0%, from $53.7 million at December 31, 2023 to $50.0 million at September 30, 2024. The decrease was primarily due to the repayment of $25.0 million of FHLBNY borrowings and the nonrenewal of $16.0 million of brokered CDs, partially offset by organic deposit growth of $12.6 million, or 2.2%, and loan repayments, net of originations, of $16.8 million, or 3.0%. Securities available for sale were $58.8 million at September 30, 2024 as compared to $60.4 million at December 31, 2023.  Loans receivable, net at September 30, 2024 and December 31, 2023 were $539.0 million and $555.8 million, respectively.  

Total deposits, excluding brokered CDs, at September 30, 2024 were $587.6 million, an increase of $12.6 million, or 2.2%, compared to $574.9 million at December 31, 2023. Total deposits at September 30, 2024 were $587.6 million, a decrease of $3.4 million, or 0.6%, due to the nonrenewal of $16.0 million in brokered CDs, compared to $590.9 million at December 31, 2023. Total borrowings decreased to $10.3 million at September 30, 2024, a decrease of $25.0 million, or 70.9% as compared to $35.3 million as of December 31, 2023 as we reduced our FHLBNY borrowings. 

Stockholders’ equity at September 30, 2024 was $89.9 million, a $3.6 million increase, or 4.2%, as compared to $86.3 million at December 31, 2023. The increase in stockholders’ equity was primarily attributed to $3.5 million in net income earned during the first nine months of 2024. 

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 ten full-service branch locations in Western New York, including four 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, dividend 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 Contact
Taylor M. Gilden
Chief Financial Officer and Treasurer
Lake Shore Bancorp, Inc.
31 East Fourth Street
Dunkirk, New York 14048
(716) 366-4070 ext. 1065



Selected Financial Condition Data As of   As of 
  September 30,   December 31, 
  2024   2023 
  (Unaudited) 
  (Dollars in thousands) 
        
Total assets $697,596   $725,118 
Cash and cash equivalents  49,981    53,730 
Securities available for sale, at fair value  58,782    60,442 
Loans receivable, net  539,005    555,828 
Deposits  587,563    590,924 
Long-term debt  10,250    35,250 
Stockholders’ equity  89,877    86,273 



Condensed Statements of Income         
  Three Months Ended  Nine Months Ended 
  September 30,  September 30, 
  2024   2023   2024   2023 
 (Unaudited) 
 (Dollars in thousands, except per share amounts) 
                
Interest income$ 8,851  $ 8,721  $ 26,215  $ 25,142 
Interest expense  3,468    2,426    10,492    6,342 
Net interest income  5,383    6,295    15,723    18,800 
(Credit) provision for credit losses  (229)   (199)   (866)   (1,011)
Net interest income after (credit) provision for credit losses  5,612    6,494    16,589    19,811 
Total non-interest income  791    605    2,236    1,712 
Total non-interest expense  4,813    5,196    14,706    16,614 
Income before income taxes  1,590    1,903    4,119    4,909 
Income tax expense  258    332    657    838 
Net income$ 1,332  $ 1,571  $ 3,462  $ 4,071 
Basic and diluted earnings per share$ 0.24  $ 0.27  $ 0.62  $ 0.69 



  Three Months Ended  Three Months Ended 
  September 30, 2024  September 30, 2023 
  Average  Interest Income/  Yield/  Average  Interest Income/  Yield/ 
  Balance  Expense  Rate(2)  Balance  Expense  Rate(2) 
  (Dollars in thousands) 
Interest-earning assets:                      
Interest-earning deposits & federal funds sold $ 54,527  $ 716   5.25% $ 43,374  $ 559   5.16%
Securities(1)   59,536    405   2.72%   65,019    463   2.85%
Loans, including fees   542,612    7,730   5.70%   565,011    7,699   5.45%
Total interest-earning assets   656,675    8,851   5.39%   673,404    8,721   5.18%
Other assets   48,797           45,506        
Total assets $ 705,472         $ 718,910        
                       
Interest-bearing liabilities                      
Demand & NOW accounts $ 66,739  $ 15   0.09% $ 76,171  $ 19   0.10%
Money market accounts   145,641    986   2.71%   123,998    405   1.31%
Savings accounts   57,772    10   0.07%   69,327    13   0.08%
Time deposits   219,166    2,308   4.21%   214,282    1,667   3.11%
Total deposits   489,318    3,319   2.71%   483,778    2,104   1.74%
Borrowed funds & other interest-bearing liabilities   20,479    149   2.91%   36,953    322   3.49%
Total interest-bearing liabilities   509,797    3,468   2.72%   520,731    2,426   1.86%
Other non-interest bearing liabilities   107,327           114,152        
Stockholders' equity   88,348           84,027        
Total liabilities & stockholders' equity $ 705,472         $ 718,910        
Net interest income     $ 5,383         $ 6,295    
Interest rate spread          2.67%          3.32%
Net interest margin          3.28%          3.74%

(1) The tax equivalent adjustment for bank qualified tax exempt municipal securities results in rates of 3.11% and 3.24% for the three months ended September 30, 2024 and 2023, respectively.
(2) Annualized.



  Nine Months Ended  Nine Months Ended 
  September 30, 2024  September 30, 2023 
  Average  Interest Income/  Yield/  Average  Interest Income/  Yield/ 
  Balance  Expense  Rate(2)  Balance  Expense  Rate(2) 
  (Dollars in thousands) 
Interest-earning assets:                      
Interest-earning deposits & federal funds sold $ 50,409  $ 1,962   5.19% $ 34,214  $ 1,214   4.73%
Securities(1)   60,082    1,243   2.76%   70,268    1,502   2.85%
Loans, including fees   549,925    23,010   5.58%   569,977    22,426   5.25%
Total interest-earning assets   660,416    26,215   5.29%   674,459    25,142   4.97%
Other assets   49,771           45,690        
Total assets $ 710,187         $ 720,149        
                       
Interest-bearing liabilities                      
Demand & NOW accounts $ 67,882  $ 48   0.09% $ 77,948  $ 57   0.10%
Money market accounts   142,078    2,899   2.72%   133,491    1,091   1.09%
Savings accounts   60,319    31   0.07%   72,111    35   0.06%
Time deposits   223,108    6,956   4.16%   203,527    4,149   2.72%
Total deposits   493,387    9,934   2.68%   487,077    5,332   1.46%
Borrowed funds & other interest-bearing liabilities   25,099    558   2.96%   39,451    1,010   3.41%
Total interest-bearing liabilities   518,486    10,492   2.70%   526,528    6,342   1.61%
Other non-interest bearing liabilities   104,728           110,108        
Stockholders' equity   86,973           83,513        
Total liabilities & stockholders' equity $ 710,187         $ 720,149        
Net interest income     $ 15,723         $ 18,800    
Interest rate spread          2.59%          3.36%
Net interest margin          3.17%          3.72%

(1) The tax equivalent adjustment for bank qualified tax exempt municipal securities results in rates of 3.14% and 3.26% for the nine months ended September 30, 2024 and 2023, respectively.
(2) Annualized.



          
 Three Months Ended  Nine Months Ended 
 September 30,  September 30, 
 2024 2023  2024 2023 
 (Unaudited) 
Selected Financial Ratios:     
Return on average assets 0.76% 0.87%  0.65% 0.75%
Return on average equity 6.03% 7.48%  5.31% 6.50%
Average interest-earning assets to average interest-bearing liabilities 128.81% 129.32%  127.37% 128.10%
Interest rate spread 2.67% 3.32%  2.59% 3.36%
Net interest margin 3.28% 3.74%  3.17% 3.72%
Efficiency ratio 77.96% 75.30%  81.89% 81.00%



 As of As of 
 September 30, December 31, 
 2024 2023 
 (Unaudited) 
     
Asset Quality Ratios:    
Non-performing loans as a percentage of net loans 0.74% 0.60%
Non-performing assets as a percentage of total assets 0.57% 0.47%
Allowance for credit losses as a percentage of net loans 1.01% 1.16%
Allowance for credit losses as a percentage of non-performing loans 137.03% 193.09%



 As of  As of 
 September 30,  December 31, 
 2024  2023 
  (Unaudited) 
        
Share and Capital Information:       
Common stock, number of shares outstanding  5,737,036    5,686,288 
Treasury stock, number of shares held  1,099,478    1,150,226 
Book value per share$ 15.67  $ 15.17 
Tier 1 leverage ratio  13.37%   12.68%
Total risk-based capital ratio  18.85%   17.77%

FAQ

What was Lake Shore Bancorp's (LSBK) Q3 2024 earnings per share?

Lake Shore Bancorp reported earnings of $0.24 per diluted share for Q3 2024.

How much did Lake Shore Bancorp's (LSBK) net interest margin improve in Q3 2024?

Net interest margin increased by 14 basis points to 3.28% in Q3 2024 compared to 3.14% in Q2 2024.

What was Lake Shore Bancorp's (LSBK) organic deposit growth in the first nine months of 2024?

Lake Shore Bancorp achieved organic deposit growth of 2.2% during the first nine months of 2024.

How much did Lake Shore Bancorp (LSBK) reduce its FHLBNY borrowings in 2024?

Lake Shore Bancorp repaid $25.0 million of Federal Home Loan Bank of New York borrowings during the first nine months of 2024.

Lake Shore Bancorp, Inc.

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77.45M
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Banks - Regional
Savings Institution, Federally Chartered
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United States of America
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