Lake Shore Bncop Stock Price, News & Analysis

Lake Shore Bancorp (NASDAQ: LSBK) announced that stockholders and members have approved the Amended and Restated Plan of Conversion and Reorganization at special meetings held on July 1, 2025. The plan involves two significant changes: the conversion of Lake Shore, MHC from a mutual holding company to a fully public stock holding company, and the Bank's transformation from a federal savings bank to a New York chartered commercial bank.

The transaction's completion remains subject to final regulatory approvals and customary closing conditions. Lake Shore Savings Bank, headquartered in Dunkirk, New York, currently operates ten full-service branch locations across Western New York, with four in Chautauqua County and six in Erie County.

Lake Shore Bancorp (NASDAQ: LSBK) has announced the commencement of a stock offering as part of its conversion from a mutual holding company to a stock holding company. The company is offering up to 5,750,000 shares (expandable to 6,612,500) at $10.00 per share. The Bank will convert to a New York commercial bank and be renamed Lake Shore Bank.

The offering prioritizes eligible depositors and the employee stock ownership plan, followed by residents of Chautauqua, Erie, and Cattaraugus counties, and current stockholders. A minimum of 4,250,000 shares must be sold to complete the conversion. Raymond James & Associates is acting as marketing agent for the offering, which runs from May 27 to June 24, 2025.

Lake Shore Bancorp reported strong financial results for Q1 2025, with net income rising to $1.1 million ($0.19 per diluted share), a 4.2% increase from Q1 2024. The bank's performance showed notable improvements in key metrics:

Net interest income grew by 6.5% year-over-year to $5.5 million, while net interest margin expanded to 3.49%, up 39 basis points from Q1 2024. The bank successfully reduced its reliance on wholesale funding by repaying $6.3 million of FHLBNY borrowings.

The bank maintains a strong capital position, with a Tier 1 Leverage ratio of 14.31% and Total Risk-Based Capital ratio of 18.67%. Book value per share increased to $15.74, and uninsured deposits decreased to 11.8% of total deposits. Credit quality remained solid with non-performing assets at 0.50% of total assets and an allowance for credit losses on loans at 0.93%.

Lake Shore Bancorp (NASDAQ: LSBK) announced that its parent mutual holding company, Lake Shore, MHC, will undergo a 'second step' conversion from mutual holding company structure to stock holding company structure. Lake Shore, MHC currently owns 63.4% of LSBK's outstanding shares.

The conversion will involve creating a new bank holding company that will offer shares representing Lake Shore, MHC's ownership stake to Bank depositors through a subscription offering. Bank depositors as of December 31, 2023, will have first priority subscription rights. The number of shares to be issued will be based on an independent appraisal of the new holding company's pro forma market value.

Existing minority shareholders will receive shares in the new holding company based on an exchange ratio designed to maintain their current ownership percentage. The transaction is expected to complete in Q3 2025, subject to regulatory, member, and shareholder approvals.

Lake Shore Bancorp (NASDAQ: LSBK) has announced its fourth quarter 2024 dividend declaration. The Board of Directors declared a cash dividend of $0.18 per share on January 27, 2025, following written approval from the Federal Reserve Bank of Philadelphia received on January 9, 2025.

The dividend will be paid on February 14, 2025 to stockholders of record as of February 10, 2025. Lake Shore Savings Bank operates as a federally chartered, community-oriented financial institution headquartered in Dunkirk, New York, with ten full-service branch locations across Western New York, including four in Chautauqua County and six in Erie County.

Lake Shore Bancorp (NASDAQ: LSBK) reported Q4 2024 net income of $1.5 million ($0.26 per diluted share), a 96.1% increase from Q4 2023. Full-year 2024 net income reached $4.9 million ($0.88 per diluted share), up 2.3% from 2023.

Key financial highlights include: net interest margin increased to 3.31% in Q4 2024; reduced wholesale funding by $41.0 million; book value per share grew 3.3% to $15.67; and maintained 'well capitalized' status with 13.83% Tier 1 Leverage ratio. The company successfully exited the OCC's Consent Order early and reinstated quarterly dividend payments.

Non-interest expenses decreased by $1.8 million (8.4%) in 2024, while non-interest income increased by $669,000 (25.4%). The allowance for credit losses on loans decreased to $5.1 million, with non-performing assets at 0.55% of total assets.

Lake Shore Savings Bank announced on December 3, 2024, that the Office of the Comptroller of the Currency (OCC) has terminated its Consent Order and 'Troubled Condition' status. The Consent Order had required the Bank to address deficiencies in several operational areas, including information technology, security, automated clearing house, audit, management, and Bank Secrecy Act / Anti-Money Laundering.

President, CEO, and Director Kim C. Liddell highlighted the team's significant and swift progress in remediation efforts. Lake Shore Savings Bank, a subsidiary of Lake Shore Bancorp (NASDAQ: LSBK), operates ten full-service branch locations across Western New York, providing retail and commercial lending and deposit services.

Lake Shore Bancorp (NASDAQ: LSBK) announced that its Board of Directors has declared a cash dividend of $0.18 per share on its outstanding common stock. The dividend will be paid on November 8, 2024 to stockholders of record as of November 4, 2024. The company received approval from the Federal Reserve Bank of Philadelphia for this dividend payment on September 30, 2024. Lake Shore Savings Bank operates ten full-service branch locations across Western New York, with four in Chautauqua County and six in Erie County.

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.