Lake Shore Bancorp(US:LSBK)2023-05-15 21:02Financial Performance - Total interest income for the three months ended March 31, 2023, was $7,951,000, an increase of 34% compared to $5,934,000 in the same period of 2022[12]. - Net income for the first quarter of 2023 was $1,684,000, representing a 59% increase from $1,061,000 in the first quarter of 2022[12]. - Basic and diluted earnings per common share for Q1 2023 were $0.29, up from $0.18 in Q1 2022[12]. - Total comprehensive income for Q1 2023 was $2,937,000, compared to a loss of $5,073,000 in Q1 2022[13]. - Net income for the three months ended March 31, 2023, was $1,684,000, compared to $1,061,000 for the same period in 2022, representing a 58.6% increase[94]. - Basic and diluted earnings per share for Q1 2023 were both $0.29, up from $0.18 in Q1 2022, reflecting a 61.1% increase[94]. Income and Expenses - Net interest income after provision for credit losses was $6,916,000 for Q1 2023, up from $5,068,000 in Q1 2022, marking a 36% increase[12]. - Total non-interest income decreased to $554,000 in Q1 2023 from $732,000 in Q1 2022, a decline of 24%[12]. - Total non-interest expense increased to $5,517,000 in Q1 2023, compared to $4,532,000 in Q1 2022, reflecting a rise of 22%[12]. Credit Losses and Provisions - The company reported a provision for credit losses of $(625,000) in Q1 2023, compared to a provision of $400,000 in Q1 2022, indicating a reversal of credit losses[12]. - The allowance for credit losses increased from $7,065 thousand on January 1, 2023, to $6,708 thousand by March 31, 2023, reflecting a provision of $(625) thousand during the quarter[56]. - The company expects credit losses to be reviewed by bank regulators, which may require additional expected credit losses to be established[30]. - The allowance for credit losses on unfunded loan commitments was recorded at $633,000 following the adoption of CECL[65]. Loans and Deposits - The net increase in deposits for Q1 2023 was $25,088,000, compared to a decrease of $364,000 in Q1 2022[16]. - Total gross loans amounted to $577.2 million as of March 31, 2023, with real estate loans totaling $556.9 million[49]. - The total gross loans receivable as of March 31, 2023, was $577,238,000, reflecting a slight increase from the previous quarter[71]. - The total past due loans as of March 31, 2023, were $2,872,000, with $1,927,000 being 90 days or more past due[71]. Securities and Investments - The total amortized cost of debt securities available for sale as of March 31, 2023, is $85,235,000, with unrealized losses of $11,618,000, resulting in a fair value of $73,742,000[37]. - The total fair value of securities, including equity and debt, was $73,751,000 at March 31, 2023, compared to $73,047,000 at December 31, 2022, representing an increase of approximately 1%[111]. - The fair value of municipal bonds was $43,412,000 at March 31, 2023, compared to $42,414,000 at December 31, 2022, reflecting an increase of approximately 2%[109]. Regulatory and Accounting Changes - The Company adopted ASU 2022-02 on January 1, 2023, which did not have a material impact on its consolidated financial statements but required enhanced vintage disclosures[35]. - The company adopted the current expected credit loss (CECL) model for estimating the allowance for credit losses effective January 1, 2023[51]. - The transition to ASC 326 reflects a shift from the incurred loss methodology to a more forward-looking approach for estimating credit losses[58]. Shareholder Equity and Compensation - The company did not repurchase any shares during the three months ended March 31, 2023, with 30,626 shares remaining under the stock repurchase program[126]. - Compensation expense related to unvested restricted stock awards under the 2012 Equity Incentive Plan amounted to $(49,000) for Q1 2023, compared to $42,000 for Q1 2022[102]. - As of March 31, 2023, there were 25,029 unvested shares outstanding under the 2012 Equity Incentive Plan, down from 56,627 shares at the same time in 2022[102].