Lake Shore Bancorp(LSBK) - 2024 Q3 - Quarterly Results

Financial Performance - Net income for Q3 2024 was $1.3 million, an increase of $216,000, or 19.4%, compared to Q2 2024, but a decrease of $300,000, or 18.8%, compared to Q3 2023[1][2]. - Non-interest income for Q3 2024 was $791,000, an increase of $53,000, or 7.2%, compared to Q2 2024, and an increase of $186,000, or 30.7%, compared to Q3 2023[10]. - Net income for the three months ended September 30, 2024, was $1,332 thousand, compared to $1,571 thousand for the same period in 2023, reflecting a decline of approximately 15.2%[22]. - Basic and diluted earnings per share for the three months ended September 30, 2024, were $0.24, down from $0.27 for the same period in 2023, a decrease of approximately 11.1%[22]. Interest Income and Margin - Net interest income increased by $177,000, or 3.4%, to $5.4 million in Q3 2024 compared to Q2 2024, but decreased by $912,000, or 14.5%, compared to Q3 2023[3]. - Net interest income for the three months ended September 30, 2024, was $5,383 thousand, down from $6,295 thousand for the same period in 2023, a decrease of about 14.5%[22]. - Net interest margin improved to 3.28% in Q3 2024, up 14 basis points from 3.14% in Q2 2024[2]. - The net interest margin for the three months ended September 30, 2024, was 3.28%, compared to 3.74% for the same period in 2023, reflecting a decline of about 12.3%[23]. Assets and Liabilities - Total assets decreased by $27.5 million, or 3.8%, to $697.6 million as of September 30, 2024, compared to $725.1 million at December 31, 2023[16]. - Total assets decreased from $725,118 thousand as of December 31, 2023, to $697,596 thousand as of September 30, 2024, representing a decline of approximately 3.5%[21]. - Total borrowings decreased by $25.0 million, or 70.9%, to $10.3 million as of September 30, 2024, as the company reduced its FHLBNY borrowings[17]. - Long-term debt decreased significantly from $35,250 thousand as of December 31, 2023, to $10,250 thousand as of September 30, 2024, a reduction of approximately 70.1%[21]. Deposits and Equity - Total deposits, excluding brokered CDs, increased by $12.6 million, or 2.2%, to $587.6 million as of September 30, 2024[17]. - Total deposits as of September 30, 2024, were $587,563 thousand, a slight decrease from $590,924 thousand as of December 31, 2023, indicating a reduction of about 0.6%[21]. - Stockholders' equity increased by $3.6 million, or 4.2%, to $89.9 million as of September 30, 2024, primarily due to $3.5 million in net income earned during the first nine months of 2024[17]. Credit Quality - The allowance for credit losses on loans was $5.5 million at September 30, 2024, down from $6.5 million at December 31, 2023[14]. - The provision for credit losses for the three months ended September 30, 2024, was $(229) thousand, compared to $(199) thousand for the same period in 2023, showing an increase in credit loss provisions[22]. - Non-performing loans as a percentage of net loans increased to 0.74% in September 2024 from 0.60% in December 2023[25]. - Non-performing assets as a percentage of total assets rose to 0.57% in September 2024 from 0.47% in December 2023[25]. - Allowance for credit losses as a percentage of net loans decreased to 1.01% in September 2024 from 1.16% in December 2023[25]. Efficiency and Returns - Non-interest expense decreased to $4.8 million in Q3 2024, a decrease of $84,000, or 1.7%, compared to Q2 2024, and a decrease of $383,000, or 7.4%, compared to Q3 2023[12]. - Return on average assets decreased to 0.76% in September 2024 from 0.87% in September 2023[25]. - Return on average equity declined to 6.03% in September 2024 compared to 7.48% in September 2023[25]. - Efficiency ratio worsened to 77.96% in September 2024 compared to 75.30% in September 2023[25]. Capital Ratios - Tier 1 leverage ratio improved to 13.37% in September 2024 from 12.68% in December 2023[27]. - Total risk-based capital ratio increased to 18.85% in September 2024 from 17.77% in December 2023[27]. - Book value per share increased to $15.67 in September 2024 from $15.17 in December 2023[27].