DUNKIRK, N.Y., Oct. 26, 2022 (GLOBE NEWSWIRE) — Lake Shore Bancorp, Inc. (the “Company”) (NASDAQ: LSBK), the holding firm for Lake Shore Savings Bank (the “Bank”), reported unaudited internet revenue of $1.8 million, or $0.30 per diluted share, for the 2022 third quarter in comparison with internet revenue of $1.7 million, or $0.29 per diluted share, for the 2021 third quarter. For the primary 9 months of 2022, the Company reported unaudited internet revenue of $4.5 million, or $0.77 per diluted share, as in comparison with $4.4 million, or $0.74 per diluted share, for the primary 9 months of 2021.
2022 Third Quarter and Year to Date Financial Highlights:
- 2022 third quarter internet revenue elevated $80,000, or 4.7%, when in comparison with 2021 third quarter internet revenue primarily resulting from a $508,000 enhance in internet curiosity revenue which was partially offset by will increase in non-interest expense and revenue tax expense and a lower in non-interest revenue;
- Net revenue for the 9 month interval ended September 30, 2022 elevated $144,000, or 3.3%, when in comparison with the identical interval in 2021. The enhance was primarily resulting from a $1.3 million enhance in internet curiosity revenue and a lower in provision for mortgage losses, which was partially offset by will increase in non-interest expense and revenue tax expense and a lower in non-interest revenue when in comparison with the identical interval in 2021;
- Net curiosity margin and rate of interest unfold was 3.67% and 3.58%, respectively, for the 9 months ended September 30, 2022 as in comparison with 3.35% and 3.22%, respectively, for the 9 months ended September 30, 2021;
- Loans receivable, internet grew by 8.5%, to $561.2 million at September 30, 2022 when in comparison with December 31, 2021, primarily resulting from $43.2 million of internet progress in industrial and residential actual property loans through the 9 months ended September 30, 2022;
- Non-performing loans as a % of complete internet loans decreased to 0.53% at September 30, 2022 from 1.86% at December 31, 2021, primarily as a result of payoff of a non-accrual industrial actual property mortgage through the 9 months ended September 2022; and
- Dividend payout ratio was 64.9% at September 30, 2022 as in comparison with 54.1% at September 30, 2021.
“During the first nine months of 2022, we have produced strong financial results due to the expansion of our net interest margin while also maintaining our regulatory capital position and improving asset quality.” acknowledged Daniel P. Reininga, President and Chief Executive Officer. “While the current economic direction remains uncertain, we remain focused on providing lending and deposit opportunities in order to meet the financial needs of our customers and promote economic growth in our market areas. This growth is possible due to our strong financial and regulatory capital positions, which is reinforced by maintaining our strong underwriting standards and conservative risk tolerances.”
Dividends Declared
On October 21, 2022, the Company’s Board of Directors accepted a quarterly money dividend of $0.18 per share of frequent inventory. The dividend is payable on November 18, 2022, to shareholders of file as of November 4, 2022. Lake Shore, MHC (the “MHC”), which holds 3,636,875 shares, or 63.7%, of the Company’s complete excellent inventory as of October 21, 2022, has elected to obtain $0.03 per share of the dividend on its shares and waive receipt of $0.15 per share of the dividend on its shares. The closing inventory value of Lake Shore Bancorp, Inc. shares was $13.41 on October 21, 2022, which implied a dividend yield for the Company’s frequent inventory of 5.4%.
Net Interest Income
2022 third quarter internet curiosity revenue elevated $508,000, or 8.7%, to $6.3 million as in comparison with $5.8 million for the 2021 third quarter. Net curiosity revenue for the primary 9 months of 2022 elevated $1.3 million, or 7.6%, to $17.8 million as in comparison with $16.5 million for the primary 9 months of 2021.
Interest revenue for the 2022 third quarter was $6.9 million, a rise of $453,000, or 7.0%, in comparison with $6.5 million for the 2021 third quarter. The enhance was primarily resulting from a 41 foundation factors enhance within the common yield on interest-earning belongings resulting from a rise in rates of interest. The enhance was additionally resulting from a $16.5 million, or 3.1%, enhance within the common steadiness of loans receivable, internet since September 30, 2021.
Interest revenue for the 9 months ended September 30, 2022 was $19.3 million, a rise of $592,000, or 3.2%, in comparison with $18.7 million for the 9 months ended September 30, 2021. The enhance was primarily resulting from a 19 foundation factors enhance within the common yield on interest-earning belongings resulting from a rise in rates of interest. The enhance was additionally resulting from a $7.2 million enhance within the common steadiness of securities obtainable on the market and loans receivable, internet since September 30, 2021.
2022 third quarter curiosity expense was $573,000, a lower of $55,000, or 8.8%, from $628,000 for 2021 third quarter primarily resulting from a lower in curiosity paid on deposit accounts. During the third quarter of 2022, there was a six foundation factors lower within the common rate of interest paid on deposit accounts and a $9.2 million, or 1.9%, lower in common interest-bearing deposits. The lower within the common price and steadiness of interest-bearing deposits was primarily resulting from a lower in common time deposit balances. During the 2022 third quarter, curiosity expense on long-term debt elevated by $22,000, or 18.5%, in comparison with the 2021 third quarter, primarily resulting from 28 foundation factors enhance within the common price paid on long-term debt.
Interest expense for the 9 months ended September 30, 2022 was $1.5 million, a lower of $661,000, or 30.7%, as in comparison with $2.2 million for the 9 months ended September 30, 2021 primarily resulting from a lower in curiosity paid on deposit accounts. During the primary 9 months of 2022, there was a 17 foundation factors lower within the common rate of interest paid on deposit accounts and a $19.1 million lower within the common steadiness of time deposits. The lower within the common price paid on deposit accounts was primarily as a result of lower in common time deposit balances. During the 9 months ended September 30, 2022, curiosity expense on long-term debt decreased by $47,000, or 11.7%, in comparison with the 9 months ended September 30, 2021, primarily resulting from a $4.0 million lower within the common steadiness of long-term borrowings.
Non-Interest Income
Non-interest revenue was $668,000 for the 2022 third quarter, a lower of $39,000, or 5.5%, as in comparison with the identical quarter within the prior 12 months. The lower was primarily resulting from a $69,000 internet change within the realized (loss)/achieve on the sale of residential loans resulting from a lower within the quantity of gross sales because of a rise in rates of interest. The lower was additionally resulting from a $38,000 lower in earnings on financial institution owned life insurance. The decreases have been partially offset by a $66,000 enhance in unrealized positive factors on rate of interest swaps primarily resulting from a rise in rates of interest.
Non-interest revenue was $2.1 million for the 9 months ended September 30, 2022, a lower of $90,000, or 4.1%, as in comparison with the 9 months ended September 30, 2021. The lower was primarily resulting from a $296,000 internet lower within the realized (loss)/achieve on the sale of residential loans, because of a rise in rates of interest. Non-interest revenue was additionally impacted by a $51,000 lower in earnings on financial institution owned life insurance and a $38,000 lower in recoveries on beforehand impaired funding securities. The decreases have been partially offset by a $223,000 enhance in unrealized positive factors on rate of interest swaps and a $69,000 enhance in service prices and charges.
Non-Interest Expense
Non-interest expense was $4.9 million for the third quarter of 2022, a rise of $376,000, or 8.4%, as in comparison with $4.5 million for the third quarter of 2021. Salary and worker advantages expense elevated $129,000, or 5.4%, primarily resulting from annual wage will increase and will increase in worker advantages. Professional companies elevated $108,000, or 23.8%, primarily resulting from a rise in consulting prices through the third quarter of 2022. Other bills elevated $138,000, or 60.5%, primarily resulting from a rise in capital primarily based taxes.
Non-interest expense was $14.0 million for the 9 months ended September 30, 2022, a rise of $1.1 million, or 8.9%, as in comparison with $12.8 million for the 9 months ended September 30, 2021. Salary and worker advantages expense elevated $652,000, or 9.7%, primarily resulting from a $383,000 lower in deferred salaries related to a lower within the variety of loans originated through the 9 months ended September 30, 2022 when in comparison with the 9 months ended September 30, 2021. The enhance was additionally resulting from annual wage will increase and will increase in worker advantages. Other bills elevated $413,000, or 47.5%, primarily resulting from a rise in capital primarily based taxes, phone, mortgage and foreclosures associated bills. Occupancy and tools elevated $225,000, or 11.0%, primarily resulting from a rise in upkeep contracts and tools bills associated to the core processing system conversion accomplished within the third quarter of 2021 and the conversion to a cloud primarily based computing system within the second quarter of 2022. The enhance in complete non-interest bills was partially offset by decrease bills for information processing, promoting, postage and provides through the 9 months ended September 30, 2022 when in comparison with the identical interval in 2021.
Asset Quality
There was no provision for mortgage losses recorded through the third quarter of 2022 and 2021 as current reserves adequately lined the dangers inherent within the mortgage portfolio.
The provision for mortgage losses was $500,000 for the 9 months ended September 30, 2022, a $150,000, or 23.1%, lower as in comparison with $650,000 for the 9 months ended September 30, 2021. The lower in provision for mortgage losses was primarily as a result of payoff of 1 non-accrual industrial actual property mortgage through the 9 months ended September 30, 2022, which was partially offset by a rise in industrial building and industrial actual property mortgage balances and industrial actual property mortgage recoveries through the 9 months ended September 30, 2022 when in comparison with the identical interval in 2021.
Non-performing loans as a % of complete internet loans decreased to 0.53% at September 30, 2022 as in comparison with 1.86% at December 31, 2021. The lower was primarily resulting from a $6.6 million, or 68.9%, lower in non-accrual loans through the first 9 months of 2022 resulting from a payoff acquired on an impaired industrial actual property mortgage. The Company’s allowance for mortgage losses as a % of complete internet loans was 1.22% and 1.18% at September 30, 2022 and December 31, 2021, respectively.
Balance Sheet Summary
Total belongings at September 30, 2022 have been $695.7 million, an $18.0 million lower, or 2.5%, as in comparison with $713.7 million at December 31, 2021. Cash and money equivalents decreased by $47.9 million, or 70.9%, from $67.6 million at December 31, 2021 to $19.7 million at September 30, 2022. The lower was primarily resulting from using money to fund mortgage originations. Securities obtainable on the market decreased $17.5 million, or 19.8%, to $71.3 million at September 30, 2022 from $88.8 million at December 31, 2021. The lower was primarily resulting from unrealized mark to market losses on securities obtainable on the market resulting from a rise in market rates of interest through the first 9 months of 2022. Loans receivable, internet have been $561.2 million, a rise of $44.0 million, or 8.5%, in comparison with $517.2 million at December 31, 2021. The enhance in loans receivable, internet was primarily resulting from elevated industrial and residential actual property mortgage originations through the first 9 months of 2022. Total deposits at September 30, 2022 have been $583.4 million, a lower of $9.8 million, or 1.7%, in comparison with $593.2 million at December 31, 2021 primarily resulting from a lower in industrial deposits because of elevated business prices.
Stockholders’ fairness at September 30, 2022 was $78.2 million, a $9.8 million lower, or 11.2%, as in comparison with $88.0 million at December 31, 2021. The lower in stockholders’ fairness was primarily attributed to a $13.5 million lower in accrued different complete revenue (loss) referring to unrealized mark to market losses on the securities portfolio and the cost of dividends, partially offset by internet revenue through the first 9 months of 2022. During the primary 9 months of 2022, the Company repurchased 5,701 shares of frequent inventory at a mean price of $14.91 per share as in comparison with 139,928 shares of frequent inventory repurchased at a mean price of $14.98 per share through the first 9 months of 2021.
About Lake Shore
Lake Shore Bancorp, Inc. (NASDAQ Global Market: LSBK) is the mid-tier holding firm of Lake Shore Savings Bank, a federally chartered, community-oriented monetary establishment headquartered in Dunkirk, New York. The Bank has eleven full-service department places in Western New York, together with 5 in Chautauqua County and six in Erie County. The Bank provides a broad vary of retail and industrial lending and deposit companies. The Company’s frequent inventory is traded on the NASDAQ Global Market as “LSBK”. Additional details about the Company is accessible at www.lakeshoresavings.com.
Safe-Harbor
This launch comprises sure forward-looking statements throughout the that means of the Private Securities Litigation Reform Act of 1995, which are primarily based on present expectations, estimates and projections in regards to the Company’s and the Bank’s business, and administration’s beliefs and assumptions. Words resembling anticipates, expects, intends, plans, believes, estimates and variations of such phrases and expressions are supposed to establish forward-looking statements. Such statements mirror administration’s present views of future occasions and operations. These forward-looking statements are primarily based on info at present obtainable to the Company and Bank as of the date of this launch. It is necessary to notice that these forward-looking statements usually are not ensures of future efficiency and contain and are topic to important dangers, contingencies, and uncertainties, a lot of that are tough to foretell and are typically past our management together with, however not restricted to, dangers from information loss or different safety breaches, dangers from the COVID-19 pandemic, compliance with the Bank’s Formal Agreement with the Office of the Comptroller of the Currency, the power of the United States economy normally and of the native economies by which we conduct operations, the impact of adjustments in financial and fiscal coverage, together with adjustments in rate of interest insurance policies of the Board of Governors of the Federal Reserve System, inflation, local weather change, elevated unemployment, deterioration in credit score high quality of our mortgage portfolio and/or the worth of the collateral securing the compensation of these loans, discount within the worth of our funding securities, the price and potential to draw and retain key staff, a breach of our operational or safety techniques, insurance policies or procedures together with cyber-attacks on us or third social gathering distributors or service suppliers, regulatory or authorized developments, tax coverage adjustments, and our potential to implement and execute our business plan and technique and broaden our operations. Therefore, precise outcomes might differ materially from these expressed or forecast in such forward-looking statements. The Company and Bank undertake no obligation to replace publicly any forward-looking statements, whether or not because of new info or in any other case.
Source: Lake Shore Bancorp, Inc.
Category: Financial
Investor Relations/Media Contact
Rachel A. Foley
Chief Financial Officer and Treasurer
Lake Shore Bancorp, Inc.
31 East Fourth Street
Dunkirk, New York 14048
(716) 366-4070 ext. 1020
Lake Shore Bancorp, Inc.
Selected Financial Information
Selected Financial Condition Data | |||||
September 30, | December 31, | ||||
2022 | 2021 | ||||
(Unaudited) | |||||
(Dollars in 1000’s) | |||||
Total belongings | $ | 695,728 | $ | 713,739 | |
Cash and money equivalents | 19,676 | 67,585 | |||
Securities obtainable on the market | 71,273 | 88,816 | |||
Loans receivable, internet | 561,170 | 517,206 | |||
Deposits | 583,360 | 593,184 | |||
Long-term debt | 24,950 | 21,950 | |||
Stockholders’ fairness | 78,162 | 87,976 |
Statements of Income | |||||||||||
Three Months Ended | Nine Months Ended | ||||||||||
September 30, | September 30, | ||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||
(Unaudited) | |||||||||||
(Dollars in 1000’s, besides per share quantities) | |||||||||||
Interest revenue | $ | 6,918 | $ | 6,465 | $ | 19,283 | $ | 18,691 | |||
Interest expense | 573 | 628 | 1,492 | 2,153 | |||||||
Net curiosity revenue | 6,345 | 5,837 | 17,791 | 16,538 | |||||||
Provision for mortgage losses | – | – | 500 | 650 | |||||||
Net curiosity revenue after provision for mortgage losses | 6,345 | 5,837 | 17,291 | 15,888 | |||||||
Total non-interest revenue | 668 | 707 | 2,120 | 2,210 | |||||||
Total non-interest expense | 4,870 | 4,494 | 13,979 | 12,842 | |||||||
Income earlier than revenue taxes | 2,143 | 2,050 | 5,432 | 5,256 | |||||||
Income tax expense | 372 | 359 | 916 | 884 | |||||||
Net revenue | $ | 1,771 | $ | 1,691 | $ | 4,516 | $ | 4,372 | |||
Basic and diluted earnings per share | $ | 0.30 | $ | 0.29 | $ | 0.77 | $ | 0.74 | |||
Dividends declared per share | $ | 0.18 | $ | 0.14 | $ | 0.50 | $ | 0.40 |
Lake Shore Bancorp, Inc.
Selected Financial Information
Selected Financial Ratios | |||||||||
Three Months Ended | Nine Months Ended | ||||||||
September 30, | September 30, | ||||||||
2022 | 2021 | 2022 | 2021 | ||||||
(Unaudited) | |||||||||
Return on common belongings | 1.02 | % | 0.94 | % | 0.86 | % | 0.83 | % | |
Return on common fairness | 8.62 | % | 7.75 | % | 7.19 | % | 6.69 | % | |
Average interest-earning belongings to common interest-bearing liabilities | 131.10 | % | 133.36 | % | 129.95 | % | 131.43 | % | |
Interest price unfold | 3.81 | % | 3.36 | % | 3.58 | % | 3.22 | % | |
Net curiosity margin | 3.92 | % | 3.48 | % | 3.67 | % | 3.35 | % |
September 30, | December 31, | |||
2022 | 2021 | |||
(Unaudited) | ||||
Asset Quality Ratios: | ||||
Non-performing loans as a % of complete internet loans | 0.53 | % | 1.86 | % |
Non-performing belongings as a % of complete belongings | 0.46 | % | 1.37 | % |
Allowance for mortgage losses as a % of complete internet loans | 1.22 | % | 1.18 | % |
Allowance for mortgage losses as a % of non-performing loans | 231.46 | % | 63.50 | % |
September 30, | December 31, | ||||
2022 | 2021 | ||||
(Unaudited) | |||||
Share Information: | |||||
Common inventory, variety of shares excellent | 5,707,587 | 5,692,410 | |||
Treasury inventory, variety of shares held | 1,128,927 | 1,144,104 | |||
Book worth per share | $ | 13.69 | $ | 15.45 |