Lake Shore Bancorp, Inc. Announces Third Quarter 2024 Financial Results
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.
- 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%
- 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
The bank's strategic moves to reduce costly funding sources are noteworthy - retiring
The
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
“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 , or19.4% , when compared to the second quarter of 2024. Net income was positively impacted by an increase in net interest income of$177,000 , or3.4% , and a decrease in non-interest expenses of$84,000 , or1.7% ; - 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 of3.14% during the second quarter of 2024; - Efficiency ratio improved to
77.96% for the third quarter of 2024 when compared to82.39% 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 of2.2% 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% and12.8% , 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 of18.85% at September 30, 2024.
Net Interest Income
Net interest income for the third quarter of 2024 increased
Net interest income for the first nine months of 2024 decreased
Interest income for the third quarter of 2024 was
Interest income for the first nine months of 2024 was
Interest expense for the third quarter of 2024 was
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
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
Interest expense for the first nine months of 2024 was
Non-Interest Income
Non-interest income was
Non-interest income was
Non-Interest Expense
Non-interest expense was
The decrease from the prior quarter was primarily related to a decrease in FDIC insurance expense of
The decrease from the prior year quarter was primarily related to a decrease in FDIC insurance expense of
Non-interest expense was
Credit Quality
The Company's allowance for credit losses on loans was
Non-performing assets as a percentage of total assets increased to
Balance Sheet Summary
Total assets at September 30, 2024 were
Total deposits, excluding brokered CDs, at September 30, 2024 were
Stockholders’ equity at September 30, 2024 was
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
(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
(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?
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What was Lake Shore Bancorp's (LSBK) organic deposit growth in the first nine months of 2024?