Lake Shore Bancorp, Inc. Announces First Quarter 2025 Financial Results
Rhea-AI Summary
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%.
Positive
- Net income increased 4.2% YoY to $1.1M in Q1 2025
- Net interest margin improved to 3.49%, up 39 basis points YoY
- Book value per share increased 0.4% to $15.74
- Strong capital position with Tier 1 Leverage ratio of 14.31%
- Net interest income grew 6.5% YoY to $5.5M
- Reduced uninsured deposits from 13.5% to 11.8% of total deposits
- Non-interest expense decreased by 2.3% YoY to $4.9M
Negative
- Interest income decreased 2.8% YoY to $8.4M
- Average balance of interest-earning assets declined 5.3% YoY
- Non-interest income down 32.2% QoQ to $724,000
- Average interest-bearing deposit balances decreased 3.4% YoY
- Non-performing assets at 0.50% of total assets
- $1.2M commercial relationship in foreclosure proceedings
News Market Reaction 1 Alert
On the day this news was published, LSBK gained 0.82%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
DUNKIRK, N.Y., April 29, 2025 (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
"Given the ongoing economic uncertainty, I am pleased with our first quarter 2025 performance," stated Kim C. Liddell, President, CEO, and Director. "We continue to focus efforts on improving the efficiency of our core operations while maintaining a disciplined approach to balance sheet management."
First Quarter 2025 Financial Highlights:
- Net income increased to
$1.1 million during the first quarter of 2025, an increase of$43,000 , or4.2% , when compared to the first quarter of 2024. Net income was positively impacted by an increase in net interest income of$332,000 , or6.5% , when compared to the first quarter of 2024; - Net interest margin increased to
3.49% during the first quarter of 2025, an increase of 18 basis points when compared to net interest margin of3.31% during the fourth quarter of 2024 and an increase of 39 basis points when compared to net interest margin of3.10% during the first quarter of 2024; - Reduced reliance on wholesale funding by repaying
$6.3 million of FHLBNY borrowings during the first quarter of 2025; - At March 31, 2025 and December 31, 2024, the Company’s percentage of uninsured deposits to total deposits was
11.8% and13.5% , respectively; - Book value per share increased
0.4% to$15.74 per share at March 31, 2025 as compared to$15.67 per share at December 31, 2024; and - The Bank's capital position remains "well capitalized" with a Tier 1 Leverage ratio of
14.31% and a Total Risk-Based Capital ratio of18.67% at March 31, 2025.
Net Interest Income
Net interest income for the first quarter of 2025 increased by
Interest income for the first quarter of 2025 was
The decrease in interest income from the prior quarter was primarily due to a decrease in the average balance of interest-earning assets of
The decrease in interest income from the prior year quarter was primarily due to a decrease in the average balance of interest-earning assets of
Interest expense for the first quarter of 2025 was
The decrease in interest expense when compared to the previous quarter was primarily due to a 21 basis points decrease in the average interest rate paid on interest-bearing liabilities and a
The decrease in interest expense when compared to the prior year quarter was primarily due to a 25 basis points decrease in average interest rate paid on interest-bearing liabilities and a
Non-Interest Income
Non-interest income was
Non-Interest Expense
Non-interest expense was
Income Tax Expense
Income tax expense was
Credit Quality
The Company’s allowance for credit losses on loans was
The Company recorded a provision for credit losses of
The increase in the allowance for credit losses on loans and unfunded commitments and the corresponding provision for credit losses recognized during the first quarter of 2025 was the result of an increase to the quantitative estimated loss calculation inclusive of forecasted economic trends, primarily related to the mortgage loan pools, including residential mortgages and commercial real estate mortgages.
Balance Sheet Summary
Total assets at March 31, 2025 were
Stockholders’ equity at March 31, 2025 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, 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, tariffs, unanticipated changes in our liquidity position, climate change, public health issues, geopolitical conflict, 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 Contact
Kim C. Liddell
President, CEO, and Director
Lake Shore Bancorp, Inc.
31 East Fourth Street
Dunkirk, New York 14048
(716) 366-4070 ext. 1012
Selected Financial Condition Data
| March 31, | December 31, | |||||
| 2025 | 2024 | |||||
| (Unaudited) | ||||||
| (Dollars in thousands) | ||||||
| Total assets | $ | 688,996 | $ | 685,504 | ||
| Cash and cash equivalents | 30,428 | 33,131 | ||||
| Securities, at fair value | 55,801 | 56,495 | ||||
| Loans receivable, net | 551,640 | 544,620 | ||||
| Deposits | 582,730 | 572,978 | ||||
| Long-term debt | 4,000 | 10,250 | ||||
| Stockholders’ equity | 90,662 | 89,868 | ||||
Statements of Income
| Three Months Ended | ||||||
| March 31, | ||||||
| 2025 | 2024 | |||||
| (Unaudited) | ||||||
| (Dollars in thousands, except per share amounts) | ||||||
| Interest income | $ | 8,367 | $ | 8,609 | ||
| Interest expense | 2,902 | 3,476 | ||||
| Net interest income | 5,465 | 5,133 | ||||
| Provision (credit) for credit losses | 48 | (352 | ) | |||
| Net interest income after provision (credit) for credit losses | 5,417 | 5,485 | ||||
| Total non-interest income | 724 | 707 | ||||
| Total non-interest expense | 4,878 | 4,995 | ||||
| Income before income taxes | 1,263 | 1,197 | ||||
| Income tax expense | 206 | 183 | ||||
| Net income | $ | 1,057 | $ | 1,014 | ||
| Basic and diluted earnings per share | $ | 0.19 | $ | 0.17 | ||
| Selected Financial Ratios | ||||||
| Return on average assets(1) | 0.62 | % | 0.57 | % | ||
| Return on average equity(1) | 4.65 | % | 4.69 | % | ||
| Average interest-earning assets to average interest-bearing liabilities | 129.52 | % | 126.33 | % | ||
| Interest rate spread(1) | 2.94 | % | 2.55 | % | ||
| Net interest margin(1) | 3.49 | % | 3.10 | % | ||
| Efficiency ratio | 78.82 | % | 85.53 | % | ||
(1) Annualized.
Average Balance Sheets, Interest, and Rates (Quarterly Comparison)
| For the Three Months Ended | For the Three Months Ended | |||||||||||||||||
| March 31, 2025 | March 31, 2024 | |||||||||||||||||
| Average | Interest Income/ | Yield/ | Average | Interest Income/ | Yield/ | |||||||||||||
| Balance | Expense | Rate(2) | Balance | Expense | Rate(2) | |||||||||||||
| (Unaudited) | ||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||
| Interest-earning deposits & federal funds sold | $ | 23,562 | $ | 234 | 3.97 | % | $ | 44,038 | $ | 598 | 5.43 | % | ||||||
| Securities(1) | 57,804 | 381 | 2.64 | % | 61,728 | 425 | 2.75 | % | ||||||||||
| Loans, including fees | 545,561 | 7,752 | 5.68 | % | 556,151 | 7,586 | 5.46 | % | ||||||||||
| Total interest-earning assets | 626,927 | 8,367 | 5.34 | % | 661,917 | 8,609 | 5.20 | % | ||||||||||
| Other assets | 51,656 | 50,866 | ||||||||||||||||
| Total assets | $ | 678,583 | $ | 712,783 | ||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||
| Demand & NOW accounts | $ | 62,784 | $ | 15 | 0.10 | % | $ | 69,753 | $ | 17 | 0.10 | % | ||||||
| Money market accounts | 152,680 | 867 | 2.27 | % | 139,794 | 966 | 2.76 | % | ||||||||||
| Savings accounts | 53,541 | 9 | 0.07 | % | 62,684 | 11 | 0.07 | % | ||||||||||
| Time deposits | 208,804 | 1,951 | 3.74 | % | 222,179 | 2,250 | 4.05 | % | ||||||||||
| Borrowed funds & other interest-bearing liabilities | 6,237 | 60 | 3.85 | % | 29,556 | 232 | 3.14 | % | ||||||||||
| Total interest-bearing liabilities | 484,046 | 2,902 | 2.40 | % | 523,966 | 3,476 | 2.65 | % | ||||||||||
| Other non-interest bearing liabilities | 103,593 | 102,299 | ||||||||||||||||
| Stockholders' equity | 90,944 | 86,518 | ||||||||||||||||
| Total liabilities & stockholders' equity | $ | 678,583 | $ | 712,783 | ||||||||||||||
| Net interest income | $ | 5,465 | $ | 5,133 | ||||||||||||||
| Interest rate spread | 2.94 | % | 2.55 | % | ||||||||||||||
| Net interest margin | 3.49 | % | 3.10 | % | ||||||||||||||
(1) The tax equivalent adjustment for bank qualified tax exempt municipal securities, using a federal statutory rate of
(2) Annualized.
Average Balance Sheets, Interest, and Rates (Prior Quarter Comparison)
| For the Three Months Ended | For the Three Months Ended | |||||||||||||||||
| March 31, 2025 | December 31, 2024 | |||||||||||||||||
| 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 | $ | 23,562 | $ | 234 | 3.97 | % | $ | 43,366 | $ | 499 | 4.60 | % | ||||||
| Securities(1) | 57,804 | 381 | 2.64 | % | 61,137 | 388 | 2.54 | % | ||||||||||
| Loans, including fees | 545,561 | 7,752 | 5.68 | % | 540,376 | 7,703 | 5.70 | % | ||||||||||
| Total interest-earning assets | 626,927 | 8,367 | 5.34 | % | 644,879 | 8,590 | 5.33 | % | ||||||||||
| Other assets | 51,656 | 49,207 | ||||||||||||||||
| Total assets | $ | 678,583 | $ | 694,086 | ||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||
| Demand & NOW accounts | $ | 62,784 | $ | 15 | 0.10 | % | $ | 64,465 | $ | 15 | 0.09 | % | ||||||
| Money market accounts | 152,680 | 867 | 2.27 | % | 153,407 | 912 | 2.38 | % | ||||||||||
| Savings accounts | 53,541 | 9 | 0.07 | % | 55,451 | 9 | 0.06 | % | ||||||||||
| Time deposits | 208,804 | 1,951 | 3.74 | % | 214,150 | 2,207 | 4.12 | % | ||||||||||
| Borrowed funds & other interest-bearing liabilities | 6,237 | 60 | 3.85 | % | 10,641 | 106 | 3.98 | % | ||||||||||
| Total interest-bearing liabilities | 484,046 | 2,902 | 2.40 | % | 498,114 | 3,249 | 2.61 | % | ||||||||||
| Other non-interest bearing liabilities | 103,593 | 105,881 | ||||||||||||||||
| Stockholders' equity | 90,944 | 90,091 | ||||||||||||||||
| Total liabilities & stockholders' equity | $ | 678,583 | $ | 694,086 | ||||||||||||||
| Net interest income | $ | 5,465 | $ | 5,341 | ||||||||||||||
| Interest rate spread | 2.94 | % | 2.72 | % | ||||||||||||||
| Net interest margin | 3.49 | % | 3.31 | % | ||||||||||||||
(1) The tax equivalent adjustment for bank qualified tax exempt municipal securities, using a federal statutory rate of
(2) Annualized.
Selected Quarterly Financial Data
| As of or For the Three Months Ended | ||||||||||||||||||||
| March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | ||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||||||||||||
| Selected Financial Condition Data: | ||||||||||||||||||||
| Total assets | $ | 688,996 | $ | 685,504 | $ | 697,596 | $ | 711,042 | $ | 717,582 | ||||||||||
| Cash and cash equivalents | 30,428 | 33,131 | 49,981 | 60,987 | 54,953 | |||||||||||||||
| Securities, at fair value | 55,801 | 56,495 | 58,782 | 57,309 | 58,682 | |||||||||||||||
| Loans receivable, net | 551,640 | 544,620 | 539,005 | 544,337 | 555,455 | |||||||||||||||
| Deposits | 582,730 | 572,978 | 587,563 | 589,395 | 594,704 | |||||||||||||||
| Long-term debt | 4,000 | 10,250 | 10,250 | 23,250 | 25,250 | |||||||||||||||
| Stockholders’ equity | 90,662 | 89,868 | 89,877 | 86,932 | 86,510 | |||||||||||||||
| Condensed Statements of Income: | ||||||||||||||||||||
| Interest income | $ | 8,367 | $ | 8,590 | $ | 8,851 | $ | 8,754 | $ | 8,609 | ||||||||||
| Interest expense | 2,902 | 3,249 | 3,468 | 3,548 | 3,476 | |||||||||||||||
| Net interest income | 5,465 | 5,341 | 5,383 | 5,206 | 5,133 | |||||||||||||||
| Provision (credit) for credit losses | 48 | (613 | ) | (229 | ) | (285 | ) | (352 | ) | |||||||||||
| Net interest income after provision (credit) for credit losses | 5,417 | 5,954 | 5,612 | 5,491 | 5,485 | |||||||||||||||
| Total non-interest income | 724 | 1,068 | 791 | 738 | 707 | |||||||||||||||
| Total non-interest expense | 4,878 | 5,275 | 4,813 | 4,897 | 4,995 | |||||||||||||||
| Income before income taxes | 1,263 | 1,747 | 1,590 | 1,332 | 1,197 | |||||||||||||||
| Income tax expense | 206 | 278 | 258 | 216 | 183 | |||||||||||||||
| Net income | $ | 1,057 | $ | 1,469 | $ | 1,332 | $ | 1,116 | $ | 1,014 | ||||||||||
| Basic and diluted earnings per share | $ | 0.19 | $ | 0.26 | $ | 0.24 | $ | 0.19 | $ | 0.17 | ||||||||||
| Selected Financial Ratios: | ||||||||||||||||||||
| Return on average assets(1) | 0.62 | % | 0.85 | % | 0.76 | % | 0.63 | % | 0.57 | % | ||||||||||
| Return on average equity(1) | 4.65 | % | 6.52 | % | 6.03 | % | 5.19 | % | 4.69 | % | ||||||||||
| Average interest-earning assets to average interest-bearing liabilities | 129.52 | % | 129.46 | % | 128.81 | % | 127.00 | % | 126.33 | % | ||||||||||
| Interest rate spread(1) | 2.94 | % | 2.72 | % | 2.67 | % | 2.56 | % | 2.55 | % | ||||||||||
| Net interest margin(1) | 3.49 | % | 3.31 | % | 3.28 | % | 3.14 | % | 3.10 | % | ||||||||||
| Efficiency ratio | 78.82 | % | 82.30 | % | 77.96 | % | 82.39 | % | 85.53 | % | ||||||||||
| Asset Quality Ratios: | ||||||||||||||||||||
| Non-performing loans as a percent of loans at amortized cost | 0.62 | % | 0.69 | % | 0.74 | % | 0.73 | % | 0.71 | % | ||||||||||
| Non-performing assets as a percent of total assets | 0.50 | % | 0.55 | % | 0.57 | % | 0.56 | % | 0.55 | % | ||||||||||
| Allowance for credit losses on loans as a percent of loans at amortized cost | 0.93 | % | 0.93 | % | 1.01 | % | 1.08 | % | 1.12 | % | ||||||||||
| Allowance for credit losses on loans as a percent of non-performing loans | 148.89 | % | 134.91 | % | 137.03 | % | 148.20 | % | 157.62 | % | ||||||||||
| Share Information: | ||||||||||||||||||||
| Common stock, number of shares outstanding | 5,760,272 | 5,735,226 | 5,737,036 | 5,737,036 | 5,684,784 | |||||||||||||||
| Treasury stock, number of shares held | 1,076,242 | 1,101,288 | 1,099,478 | 1,099,478 | 1,151,730 | |||||||||||||||
| Book value per share | $ | 15.74 | $ | 15.67 | $ | 15.67 | $ | 15.15 | $ | 15.22 | ||||||||||
| Tier 1 leverage ratio | 14.31 | % | 13.83 | % | 13.37 | % | 13.02 | % | 12.87 | % | ||||||||||
| Total risk-based capital ratio | 18.67 | % | 18.79 | % | 18.85 | % | 18.64 | % | 18.13 | % | ||||||||||
(1) Annualized
FAQ
How much did Lake Shore Bancorp (LSBK) earn in Q1 2025?
What is Lake Shore Bancorp's (LSBK) net interest margin for Q1 2025?
How much uninsured deposits does Lake Shore Bancorp (LSBK) have in 2025?
What is Lake Shore Bancorp's (LSBK) book value per share in Q1 2025?
How strong is Lake Shore Bancorp's (LSBK) capital position in 2025?
How did Lake Shore Bancorp (LSBK) reduce its wholesale funding in Q1 2025?
