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

Financial Performance - Net income for the three months ended September 30, 2024, was $1,332 thousand, down from $1,571 thousand for the same period in 2023, a decrease of about 15.2%[10] - Basic and diluted earnings per share for the three months ended September 30, 2024, were $0.24, down from $0.27 in the same period of 2023, a decline of about 11.1%[10] - Total comprehensive income for the three months ended September 30, 2024, was $3,197 thousand, compared to a loss of $(1,599) thousand in the same period of 2023, showing a significant improvement[11] - Net income for the nine months ended September 30, 2024, was $3,462,000, a decrease of 15% compared to $4,071,000 for the same period in 2023[17] - Net income for the quarter ending March 31, 2024, was $1,116,000, an increase from $1,014,000 in the previous quarter[14] Assets and Liabilities - 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%[6] - Total liabilities decreased from $638,845 thousand as of December 31, 2023, to $607,719 thousand as of September 30, 2024, a reduction of approximately 4.9%[7] - Total stockholders' equity increased from $86,273 thousand as of December 31, 2023, to $89,877 thousand as of September 30, 2024, an increase of approximately 3.0%[8] Income Sources - Total interest income increased to $8,851 thousand for the three months ended September 30, 2024, compared to $8,721 thousand in the same period of 2023, reflecting a growth of approximately 1.5%[10] - Non-interest income rose to $791 thousand for the three months ended September 30, 2024, up from $605 thousand in the same period of 2023, an increase of about 30.7%[10] Dividends and Stockholder Returns - Dividends declared per share increased to $0.18 for the three months ended September 30, 2024, compared to no dividends declared in the same period of 2023[10] - Cash dividends declared were $0.18 per share, totaling $361,000 for the quarter ending September 30, 2024[14] Credit Losses and Provisions - 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, indicating a slight increase in credit loss provisions[10] - The allowance for credit losses on loans decreased to $5.5 million as of September 30, 2024, down from $6.5 million as of December 31, 2023, indicating a reduction of about 14.9%[33] - The company recorded a provision for credit losses of $(129) million for the nine months ended September 30, 2024, compared to $(220) million for the same period in 2023[47] Cash Flow and Investments - Net cash used in operating activities was $(875,000) for the nine months ended September 30, 2024, compared to $4,625,000 for the same period in 2023[17] - Net cash provided by investing activities increased to $27,950,000 for the nine months ended September 30, 2024, up from $19,943,000 in 2023[17] - Cash and cash equivalents at the end of the period were $49,981,000, an increase from $45,999,000 at the end of September 30, 2023[17] Loan Portfolio - As of September 30, 2024, the total gross loans amounted to $541.0 million, a decrease from $558.5 million as of December 31, 2023, reflecting a decline of approximately 3.0%[33] - The total gross loans receivable reached $541,048 million as of September 30, 2024, reflecting a significant portfolio size[43] - The total past due loans as of September 30, 2024, amounted to $4,330 million, with $1,212 million past due by 30-59 days and $502 million past due by 60-89 days[50] Stock Options and Compensation - As of September 30, 2024, there were 29,142 stock options outstanding with a weighted average exercise price of $14.38, down from 58,857 at the beginning of the year[80] - The company granted 9,306 stock options under the Equity Incentive Plan at an exercise price of $10.69 during the nine months ended September 30, 2024[87] - Stock-based compensation costs for the three months ended September 30, 2024, were $109,000, an increase of 75.8% from $62,000 in the same period of 2023[78] Securities and Unrealized Losses - The company reported a gross unrealized loss of $11,089,000 on total securities as of September 30, 2024[24] - The fair value of mortgage-backed securities was reported at $23.8 million as of September 30, 2024, down from an amortized cost of $27.1 million[32] - The company considers noncredit-related factors, such as changes in interest rates, as the primary reason for unrealized losses on securities[28]