DUNKIRK, N.Y., July 24, 2025 (GLOBE NEWSWIRE) -- Lake Shore Bancorp, Inc. (“Lake Shore Bancorp”) (NASDAQ: LSBK), the holding company for Lake Shore Bank (the “Bank”), announced today that the Board of Directors declared a cash dividend of $0.09 per share on its outstanding common stock on July 23, 2025. The dividend is expected to be paid on August 13, 2025 to stockholders of record as of August 4, 2025. About Lake Shore Lake Shore Bancorp is the holding company of Lake Shore Bank, a New York chartered, com ...

Core Viewpoint - Lake Shore Bancorp, Inc. reported significant financial growth in the second quarter of 2025, with net income increasing to $1.9 million, driven by higher net interest income and reduced non-interest expenses [1][5][3]. Financial Performance - The Company reported unaudited net income of $1.9 million, or $0.34 per diluted share, for Q2 2025, compared to $1.1 million, or $0.19 per diluted share, for Q2 2024 [1]. - For the first half of 2025, net income was $3.0 million, or $0.53 per diluted share, up from $2.1 million, or $0.36 per diluted share, in the first half of 2024 [1]. - The increase in net income for Q2 2025 was 72.0% compared to Q2 2024, and for the first half of 2025, it was 39.7% compared to the first half of 2024 [5]. Net Interest Income - Net interest income for Q2 2025 increased by $657,000, or 12.0%, to $6.1 million compared to Q1 2025, and increased by $916,000, or 17.6%, compared to Q2 2024 [4]. - The net interest margin for Q2 2025 was 3.84%, up from 3.49% in Q1 2025 and 3.14% in Q2 2024 [5][4]. Non-Interest Income - Non-interest income for Q2 2025 was $800,000, an increase of $76,000, or 10.5%, from Q1 2025, and an increase of $62,000, or 8.4%, from Q2 2024 [15]. - For the first half of 2025, non-interest income was $1.5 million, up $79,000, or 5.5%, from the first half of 2024 [16]. Non-Interest Expense - Non-interest expense for Q2 2025 was $4.6 million, a decrease of $253,000, or 5.2%, from Q1 2025, and a decrease of $272,000, or 5.6%, from Q2 2024 [17]. - For the first half of 2025, non-interest expense was $9.5 million, down $389,000, or 3.9%, from the first half of 2024 [18]. Balance Sheet Highlights - Total assets increased to $734.8 million as of June 30, 2025, a rise of $49.3 million, or 7.2%, from December 31, 2024 [24]. - Total deposits reached $627.5 million, an increase of $54.5 million, or 9.5%, compared to December 31, 2024 [24]. - Stockholders' equity increased to $92.9 million, up $3.0 million, or 3.4%, from December 31, 2024 [25]. Credit Quality - Non-performing assets as a percentage of total assets decreased to 0.24% as of June 30, 2025, down from 0.55% at December 31, 2024 [22]. - The allowance for credit losses on loans was $5.2 million as of June 30, 2025, compared to $5.1 million at December 31, 2024 [22].

Core Viewpoint - Lake Shore Bancorp, Inc. has successfully completed its conversion from mutual to stock form, along with a related stock offering, and will begin trading on the Nasdaq Global Market under the symbol "LSBK" on July 21, 2025 [1]. Group 1: Stock Offering Details - Lake Shore Bancorp sold a total of 4,950,460 shares of common stock at a price of $10.00 per share, resulting in total gross proceeds of $49.5 million [2]. - Approximately 7,825,877 shares of Lake Shore Bancorp common stock are outstanding after the conversion and stock offering, before adjustments for fractional shares [3]. Group 2: Shareholder Information - Public stockholders of Lake Shore Federal Bancorp will receive shares of Lake Shore Bancorp common stock based on an exchange ratio of 1.3549 shares for each share they owned prior to the conversion [3]. - Stockholders holding shares in street name will receive their shares and cash for fractional shares directly in their accounts, while those with certificated shares will receive a letter of transmittal for the exchange [4]. Group 3: Company Overview - Lake Shore Bancorp is the holding company for Lake Shore Bank, a community-oriented financial institution based in Dunkirk, New York, with ten full-service branch locations in Western New York [6]. - The Bank offers a wide range of retail and commercial lending and deposit services [6].

Core Points - Lake Shore Bancorp, Inc. has received all regulatory approvals to convert Lake Shore, MHC from mutual to stock form and to complete the related stock offering [1][2] - The closing of the conversion is expected to occur after business hours on July 18, 2025, with trading of Lake Shore Bancorp's common stock on Nasdaq beginning on July 21, 2025 [2] - The company anticipates selling approximately 4,950,460 shares at $10.00 per share, resulting in total gross proceeds of $49.5 million [3] - Existing public stockholders of Lake Shore Federal Bancorp will have their shares converted at an exchange ratio of 1.3549 shares of Lake Shore Bancorp common stock for each share of Lake Shore Federal Bancorp common stock [4] - Approximately 7,825,877 shares of Lake Shore Bancorp common stock are expected to be outstanding post-conversion [4] - Stockholders holding shares in street name will receive their shares and cash for fractional shares directly in their accounts, while those with certificated shares will receive a letter of transmittal [5] - Lake Shore Federal Bancorp operates as a community-oriented financial institution with ten full-service branches in Western New York, offering a range of retail and commercial banking services [7]

Core Viewpoint - Lake Shore Bancorp, Inc. has received approval from stockholders and members for its conversion plan from a mutual holding company to a fully public stock holding company, along with the Bank's transition to a New York chartered commercial bank [1] Group 1: Company Overview - Lake Shore Federal Bancorp is the mid-tier holding company for Lake Shore Savings Bank, which is a federally chartered, community-oriented financial institution based in Dunkirk, New York [4] - The Bank operates ten full-service branch locations in Western New York, providing a wide range of retail and commercial lending and deposit services [4] - Lake Shore Federal Bancorp's common stock is traded on the NASDAQ Global Market under the ticker symbol "LSBK" [4] Group 2: Conversion and Reorganization - The special meetings held on July 1, 2025, resulted in the approval of the Amended and Restated Plan of Conversion and Reorganization [1] - The completion of the conversion and stock offering is contingent upon receiving final regulatory approvals and meeting customary closing conditions [2]

Core Viewpoint - Lake Shore Bancorp, Inc. is initiating a common stock offering as part of its conversion from a mutual holding company to a stock holding company, which includes renaming the Bank to Lake Shore Bank and converting its charter to a New York commercial bank [1][4]. Group 1: Stock Offering Details - Lake Shore Bancorp is offering up to 5,750,000 shares of common stock at a price of $10.00 per share, with the possibility of increasing to 6,612,500 shares [2]. - The stock will be available to eligible depositors and the employee stock ownership plan, with a community offering for unsubscribed shares, prioritizing residents of Chautauqua, Erie, and Cattaraugus counties [2]. - A minimum of 4,250,000 shares must be sold to complete the conversion and stock offering, subject to regulatory approvals and customary closing conditions [4]. Group 2: Company Background - Lake Shore Federal Bancorp is the mid-tier holding company for Lake Shore Savings Bank, a community-oriented financial institution based in Dunkirk, New York, with ten full-service branches in Western New York [6]. - The Bank provides a range of retail and commercial lending and deposit services, and its common stock is traded on NASDAQ under the symbol "LSBK" [6]. Group 3: Contact and Information - For inquiries regarding the conversion and stock offering, interested parties can contact the Stock Information Center, which will operate from May 27, 2025, to June 24, 2025 [3]. - Additional information about the company and the stock offering can be accessed through the SEC's website or by contacting Lake Shore Bancorp directly [9].

Financial Performance - Total interest income for Q1 2025 was $8,367,000, a decrease of 2.8% from $8,609,000 in Q1 2024[13] - Net interest income after provision for credit losses was $5,417,000, slightly down from $5,485,000 in the same period last year[13] - Non-interest income increased to $724,000 in Q1 2025, up from $707,000 in Q1 2024, representing a growth of 2.4%[13] - Net income for Q1 2025 was $1,057,000, compared to $1,014,000 in Q1 2024, reflecting a growth of 4.2%[13] - Basic and diluted earnings per share increased to $0.19 in Q1 2025, up from $0.17 in Q1 2024[13] - Total comprehensive income for Q1 2025 was $1,070,000, significantly higher than $216,000 in Q1 2024[14] - Other Comprehensive Income for Q1 2025 was $13,000, a significant recovery from a loss of $798,000 in Q1 2024[14] Expenses and Dividends - Total non-interest expense decreased to $4,878,000 in Q1 2025, down from $4,995,000 in Q1 2024, a reduction of 2.4%[13] - Cash dividends declared per share were $0.18 in Q1 2025, compared to no dividends declared in Q1 2024[13] Credit Losses and Provisions - The provision for credit losses was $48,000 in Q1 2025, a reversal from a credit loss of $352,000 in Q1 2024[13] - The allowance for credit losses increased by $37,000 for loans and $9,000 for unfunded commitments as of March 31, 2025, compared to December 31, 2024[30] - The provision for credit losses for the three months ended March 31, 2025, was $39 thousand, while for the same period in 2024, it was a negative $223 thousand, indicating a significant shift in credit quality assessment[55] - The total allowance for credit losses on loans was $5,170 thousand as of March 31, 2025, compared to $6,463 thousand on March 31, 2024, reflecting a decrease of about 20%[55] Loans and Deposits - Net increase in deposits was $9,752,000, up from $3,780,000 in the previous year[18] - As of March 31, 2025, the company's total gross loans amounted to $553.6 million, an increase from $546.5 million as of December 31, 2024, representing a growth of approximately 1.9%[45] - The company's real estate loans totaled $528.7 million as of March 31, 2025, slightly down from $529.8 million as of December 31, 2024, indicating a decrease of about 0.2%[45] - The total gross loans receivable as of March 31, 2025, was $553,631,000, showing a slight increase from $546,490,000 as of December 31, 2024[61] Cash Flow and Investments - Net cash provided by operating activities was $718,000, compared to a net cash used of $32,000 in the prior year[18] - The company reported a net cash used in investing activities of $5,601,000, a significant decrease from $8,411,000 in the same period of 2024[18] - Cash and cash equivalents at the end of the period were $30,428,000, down from $54,953,000 at the end of the same period in 2024[18] - Interest paid during the period was $2,918,000, a decrease from $3,979,000 in the prior year[18] Securities and Fair Value - Total debt securities available for sale had a fair value of $55,681,000, with unrealized losses of $12,620,000[36] - The estimated fair value of total securities as of March 31, 2025, was $55,801,000, compared to $56,495,000 as of December 31, 2024[98] - The fair value of municipal bonds pledged as collateral for customer deposits was $3.8 million as of March 31, 2025, down from $4.6 million as of December 31, 2024[39] - The company recognized an unrealized gain of $46,000 on equity securities during the three months ended March 31, 2025, compared to an unrealized gain of $11,000 during the same period in 2024[44] Stock and Compensation - Stock-based compensation costs for the three months ended March 31, 2025, were $120,000, compared to $38,000 for the same period in 2024[80] - The 2025 Equity Incentive Plan was approved on February 4, 2025, allowing for the issuance of up to 300,000 shares of common stock[88] - A total of 27,197 restricted stock awards were granted under the 2025 EIP at a fair value of $15.77 per share[89] - The ESOP compensation expense was $31,000 for the three months ended March 31, 2025, compared to $23,000 for the same period in 2024[91] Credit Quality and Loan Classification - The company classified its loans into categories such as Pass, Special Mention, Substandard, Doubtful, and Loss, with a focus on monitoring credit quality indicators monthly[65][67] - The total gross loans classified as Pass for residential, one- to four-family loans was $156,198,000 as of March 31, 2025[68] - Non-accrual loans totaled $3,804 thousand as of March 31, 2025, compared to $3,472 thousand on December 31, 2024, marking an increase of approximately 9.5%[60] Miscellaneous - The company is transitioning to a fully-public stock holding company structure, with the SEC declaring the New Bank Holding Company's Registration Statement effective on May 14, 2025[32] - The company had no foreclosed real estate as of March 31, 2025, and December 31, 2024[75] - The company did not sell any debt securities during the three months ended March 31, 2025, and 2024[43]

Core Viewpoint - Lake Shore Bancorp, Inc. reported a net income of $1.1 million for Q1 2025, reflecting a 4.2% increase from the same period in 2024, driven by higher net interest income and reduced non-interest expenses [1][7]. Financial Performance - The net interest income for Q1 2025 was $5.5 million, up by $124,000 or 2.3% from Q4 2024, and increased by $332,000 or 6.5% compared to Q1 2024 [3][7]. - The net interest margin improved to 3.49% in Q1 2025, an increase of 18 basis points from Q4 2024 and 39 basis points from Q1 2024 [7]. - Interest income decreased to $8.4 million in Q1 2025, down by $223,000 or 2.6% from Q4 2024, and down by $242,000 or 2.8% from Q1 2024 [4][6]. Expense Management - Non-interest expenses were $4.9 million in Q1 2025, a decrease of $397,000 or 7.5% from Q4 2024, and down by $117,000 or 2.3% from Q1 2024 [12]. - Interest expense for Q1 2025 was $2.9 million, a decrease of $347,000 or 10.7% from Q4 2024, and down by $574,000 or 16.5% from Q1 2024 [8][10]. Balance Sheet Highlights - Total assets increased to $689.0 million as of March 31, 2025, a rise of $3.5 million or 0.5% from December 31, 2024 [18]. - Total deposits rose to $582.7 million, an increase of $9.8 million or 1.7% compared to December 31, 2024 [18]. - Stockholders' equity increased to $90.7 million, a rise of $794,000 or 0.9% from December 31, 2024 [19]. Credit Quality - The allowance for credit losses on loans was $5.2 million as of March 31, 2025, compared to $5.1 million at December 31, 2024 [15]. - Non-performing assets as a percentage of total assets decreased to 0.50% at March 31, 2025, down from 0.55% at December 31, 2024 [15]. Income Tax Expense - Income tax expense for Q1 2025 was $206,000, a decrease of $72,000 or 25.9% from Q4 2024, and an increase of $23,000 or 12.6% from Q1 2024 [13][14].

Financial Performance - Net income for the first quarter of 2025 was $1.1 million, an increase of $43,000, or 4.2%, compared to the first quarter of 2024[2]. - Net income for Q1 2025 was $1,057 thousand, compared to $1,014 thousand in Q1 2024, marking a growth of 4.24%[26]. - Net income for the quarter was $1,057 thousand, a decrease of 28% from $1,469 thousand in the prior quarter[29]. - Basic and diluted earnings per share increased to $0.19 in Q1 2025 from $0.17 in Q1 2024, reflecting a growth of 11.76%[26]. - Basic and diluted earnings per share decreased to $0.19 from $0.26 in the previous quarter, reflecting a 26.9% decline[29]. Interest Income and Margin - Net interest income increased by $124,000, or 2.3%, to $5.5 million compared to the fourth quarter of 2024, and increased by $332,000, or 6.5%, compared to the first quarter of 2024[4]. - Net interest income for the three months ended March 31, 2025, was $5,465 thousand, up from $5,133 thousand in the same period of 2024, representing an increase of 6.47%[26]. - Net interest income after provision for credit losses was $5,417 thousand, down from $5,954 thousand in the previous quarter[29]. - The interest rate spread widened to 2.94% in Q1 2025 from 2.55% in Q1 2024, reflecting improved interest income relative to interest expense[26]. - The net interest margin improved to 3.49% in Q1 2025 from 3.10% in Q1 2024, indicating better profitability on interest-earning assets[26]. - Net interest margin improved to 3.49%, an increase of 18 basis points from the fourth quarter of 2024 and 39 basis points from the first quarter of 2024[6]. Assets and Deposits - Total assets increased by $3.5 million, or 0.5%, to $689.0 million as of March 31, 2025, compared to $685.5 million at December 31, 2024[19]. - Total assets increased to $688,996 thousand as of March 31, 2025, compared to $685,504 thousand at December 31, 2024, reflecting a growth of 0.22%[25]. - Total deposits rose by $9.8 million, or 1.7%, to $582.7 million at March 31, 2025, compared to $573.0 million at December 31, 2024[20]. Non-Interest Income and Expense - Non-interest income was $724,000 for the first quarter of 2025, a decrease of $344,000, or 32.2%, compared to the fourth quarter of 2024[12]. - Total non-interest income rose to $724 thousand in Q1 2025, compared to $707 thousand in Q1 2024, an increase of 2.41%[26]. - Total non-interest income decreased to $724 thousand from $1,068 thousand in the prior quarter, a decline of 32.3%[29]. - Non-interest expense decreased by $397,000, or 7.5%, to $4.9 million compared to the fourth quarter of 2024[14]. Equity and Credit Losses - Stockholders' equity increased by $794,000, or 0.9%, to $90.7 million at March 31, 2025, primarily due to net income earned[21]. - The allowance for credit losses on loans was $5.2 million as of March 31, 2025, compared to $5.1 million as of December 31, 2024[16]. Debt and Funding - Long-term debt decreased significantly to $4,000 thousand as of March 31, 2025, down from $10,250 thousand at December 31, 2024, a reduction of 61.07%[25]. - The Company reduced its reliance on wholesale funding by repaying $6.3 million of FHLBNY borrowings during the first quarter of 2025[6]. Efficiency and Returns - The efficiency ratio improved to 78.82% in Q1 2025 from 85.53% in Q1 2024, indicating better cost management[26]. - Return on average assets increased to 0.62% in Q1 2025 from 0.57% in Q1 2024, showing enhanced asset utilization[26]. - Return on average assets decreased to 0.62% from 0.85% in the previous quarter[29]. - Return on average equity decreased to 4.65% from 6.52% in the prior quarter[29]. Loan Performance - Non-performing loans as a percent of loans at amortized cost improved slightly to 0.62% from 0.69% in the previous quarter[29]. Book Value - Book value per share increased to $15.74 from $15.67 in the previous quarter[29].

Stock Information - Lake Shore Bancorp's common stock is traded on the Nasdaq Global Market under the symbol "LSBK" with 63.4% of shares held by Lake Shore, MHC as of December 31, 2024[14]. Market Share - The company holds a 15.2% deposit market share in Chautauqua County as of June 30, 2024, while its largest competitors hold 25.8% and 20.5% respectively[34]. - In Erie County, Lake Shore Bancorp's deposit market share increased to 0.5% as of June 30, 2024, up from 0.4% in 2023[34]. Loan Portfolio - The loan portfolio totals $546.49 million, with $161.33 million in residential one- to four-family loans and $320.98 million in commercial loans[41]. - Total loans outstanding at December 31, 2024, were $558.5 million, a decrease of 3.1% from $576.7 million in 2023[43]. - Commercial real estate loans totaled $321.0 million, representing 58.7% of the total gross loan portfolio as of December 31, 2024[43]. - Home equity loans and lines of credit amounted to $47.5 million, accounting for 8.7% of the total gross loan portfolio[65]. - The average loan balance in the commercial real estate loan portfolio was $875,000, with the largest individual loan being $10.6 million[47]. - Residential, one- to four-family loans totaled $161.3 million, representing 29.5% of the total gross loan portfolio[53]. - Commercial real estate loans secured by residential properties and multi-family complexes made up 40.0% of the commercial real estate portfolio, totaling $128.3 million[44]. - Commercial business loans totaled $15.7 million, representing 2.9% of the total gross loan portfolio as of December 31, 2024[68]. - Consumer loans totaled $1.0 million, or 0.2% of the total gross loan portfolio, as of December 31, 2024[71]. Lending Strategy - The company has no loan sales recorded for the years 2024 or 2023, indicating a strategy of retaining originated loans[42]. - The primary lending activities include fixed and adjustable-rate mortgage loans, with a focus on commercial and residential real estate[38]. Economic Outlook - The company anticipates continued growth opportunities driven by local economic expansion and demographic trends[31]. - Competition remains intense, with significant pressure from larger financial institutions and online service providers[33]. - The company aims to compete through personalized service and local market knowledge, despite the challenges posed by technological advances in the financial services industry[36]. Asset Quality - The company maintains a high level of asset quality, with a focus on commercial real estate and one- to four-family residential mortgage loans[79]. - The classification of loans includes "Substandard," "Doubtful," and "Loss," with management closely monitoring the quality of the loan portfolio[87]. - The allowance for credit losses is reviewed quarterly and is based on expected credit losses in the loan portfolio[90]. - As of December 31, 2024, the total allowance for credit losses was $5,133,000, a decrease from $6,463,000 in 2023[95]. - The commercial real estate loans accounted for 81.3% of the total allowance in 2024, compared to 81.0% in 2023[95]. Deposits and Funding - The company had $10.5 million in depositor funds placed in the IntraFi Network Deposits program as of December 31, 2024, down from $12.9 million in 2023[113]. - Uninsured deposits in excess of the FDIC insurance limit were $77.5 million, or 13.5% of total deposits, as of December 31, 2024[117]. - Long-term debt from the FHLBNY decreased to $10.3 million in 2024 from $35.3 million in 2023[117]. Employee Information - As of December 31, 2024, Lake Shore Savings Bank employed 93 full-time employees and 7 part-time employees[123]. - The bank provides a comprehensive benefit package that includes health, dental, life, and disability insurance, as well as a generous paid time off policy[125]. - The bank's employees participate in an Employee Stock Ownership Plan, aligning employee and stockholder interests[125]. Regulatory Compliance - Lake Shore Savings Bank is primarily supervised by the OCC and is required to file reports and pay assessments to fund the agency's operations[130]. - The bank's capital distributions are governed by federal regulations, which include cash dividends and stock repurchases[141]. - Lake Shore Savings Bank received an "outstanding" rating under the Community Reinvestment Act in its most recent federal examination[153]. - As of December 31, 2024, Lake Shore Savings is in compliance with Regulation O regarding credit extensions to insiders[157]. Risk Factors - Deteriorating credit quality could adversely affect earnings, with potential significant loan losses impacting operating results[203]. - Increased credit risk is associated with non-residential, non-owner-occupied real estate loans, which depend on tenants' ability to pay rent[201]. - The investment portfolio may experience credit deterioration, impacting operating results and necessitating adjustments to the allowance for credit losses[204]. - Off-balance sheet arrangements expose the company to credit and interest rate risk, which could affect liquidity and capital resources[207]. - Low demand for real estate loans may lower profitability, particularly if economic conditions weaken or interest rates rise[209]. - The company relies on key personnel for business strategy implementation, with potential adverse effects from the loss of executive officers[210]. Future Plans - The proposed transaction for Lake Shore, MHC to convert to a stock holding company is expected to be completed in the third quarter of 2025, pending regulatory approval[185]. - The proposed stock offering will be based on the aggregate pro forma market value of the common stock of the New Bank Holding Company, determined by an independent appraisal[184].