Group 1 - Lake Shore Bancorp, Inc. has had a busy year primarily due to events unrelated to its core operations [1] - The company is involved in the financial sector and emphasizes the efficiency of financial markets [1] - The best investment opportunities are identified in stocks that are less followed or mispriced in their respective markets [1]

Core Insights - Lake Shore Bancorp (NASDAQ: LSBK) has had a busy year, primarily involving events unrelated to its daily operations [1] Company Activity - The holding company for Lake Shore Bancorp has been active, but the nature of the activities does not pertain to its core business operations [1] Market Perspective - The financial market is viewed as efficient, with most stocks reflecting their true current value, suggesting that investment opportunities may arise from less-followed stocks or those mispriced in their markets [1]

Core Points - Lake Shore Bancorp, Inc. declared a cash dividend of $0.09 per share on its outstanding common stock, with the payment expected on August 13, 2025, to stockholders of record as of August 4, 2025 [1] 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 branches in Western New York [2] - The Bank provides a wide range of retail and commercial lending and deposit services, and its common stock is traded on the NASDAQ Global Market under the ticker "LSBK" [2]

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].