Lake Shore Bancorp(LSBK) - 2024 Q4 - Annual Results

Financial Performance - Net income for Q4 2024 was $1.5 million, a 96.1% increase from $749,000 in Q4 2023, and for the full year, net income was $4.9 million, a 2.3% increase from $4.8 million in 2023[1][3] - Net income for the year ended December 31, 2024, was $4.9 million, compared to $4.8 million for the year ended December 31, 2023[31] - Net income for the three months ended December 31, 2024, was $1,469 thousand, an increase of 10.3% from $1,332 thousand in the previous quarter[34] - Basic and diluted earnings per share increased to $0.26 in Q4 2024, up from $0.24 in Q3 2024[34] Income and Expenses - Net interest income for Q4 2024 decreased by $42,000, or 0.8%, to $5.3 million compared to Q3 2024, and decreased by $217,000, or 3.9%, compared to Q4 2023[3][5] - Non-interest income for Q4 2024 was $1.1 million, a 35.0% increase from $791,000 in Q3 2024, and a 15.7% increase from $923,000 in Q4 2023[15] - Non-interest income for the year ended December 31, 2024, was $3.3 million, a 25.4% increase from $2.6 million in 2023[16] - Non-interest expense for the year ended December 31, 2024, was $20.0 million, a decrease of $1.8 million, or 8.4%, compared to $21.8 million in 2023[18] - Interest expense for the year ended December 31, 2024, was $13.7 million, an increase of $4.3 million, or 46.2%, from $9.4 million in 2023[14] Asset and Capital Management - Total assets were $685.5 million at December 31, 2024, a decrease of $39.6 million, or 5.5%, from $725.1 million at December 31, 2023[25] - Stockholders' equity increased to $89.9 million at December 31, 2024, a $3.6 million increase, or 4.2%, compared to $86.3 million at December 31, 2023[26] - The Tier 1 Leverage ratio was 13.83% and the Total Risk-Based Capital ratio was 18.79% at December 31, 2024, indicating a well-capitalized position[3] - The total risk-based capital ratio remained stable at 18.79% in Q4 2024, slightly down from 18.85% in Q3 2024[34] Funding and Liquidity - The company's reliance on wholesale funding was reduced by $41.0 million, including the non-renewal of $16.0 million in brokered CDs and repayment of $25.0 million in FHLBNY borrowings[1][3] - Total deposits decreased to $573.0 million at December 31, 2024, a decrease of $17.9 million, or 3.0%, from $590.9 million at December 31, 2023[25] - Cash and cash equivalents decreased by $20.6 million, or 38.3%, from $53.7 million at December 31, 2023, to $33.1 million at December 31, 2024[25] - Total borrowings decreased to $10.3 million at December 31, 2024, a decrease of $25.0 million, or 70.9%, compared to $35.3 million as of December 31, 2023[26] Credit Quality - The allowance for credit losses on loans decreased to $5.1 million as of December 31, 2024, down from $6.5 million as of December 31, 2023[22] - Non-performing assets as a percentage of total assets increased to 0.55% at December 31, 2024, compared to 0.47% at December 31, 2023, due to a decrease in total assets of $39.6 million, or 5.5%[22] - Non-performing loans as a percentage of total net loans rose to 0.80% in Q4 2024 from 0.74% in Q3 2024[34] - The company recorded a credit to the provision for credit losses of $613,000 for the fourth quarter of 2024[23] Operational Efficiency - The efficiency ratio for Q4 2024 was 82.30%, compared to 77.96% in Q3 2024, indicating a decline in operational efficiency[34] - The return on average assets improved to 0.85% in Q4 2024 from 0.76% in Q3 2024[34] Future Outlook - The company anticipates a challenging earnings environment in 2025 while continuing efforts to increase shareholder value[2]