Lake Shore Bancorp Reports Fourth Quarter and Full Year 2023 Financial Results

In Dunkirk, New York, on January 31, 2024, Lake Shore Bancorp, Inc., the parent company of Lake Shore Savings Bank, disclosed unverified financial details for the fourth quarter and the entire year of 2023. For the fourth quarter of 2023, the company announced a net income of $749,000, which equals $0.13 per diluted share. This is a decline from the $1.2 million, or $0.20 per diluted share, reported in the same quarter the previous year.

Annual Financial Overview

The annual net income stood at $4.8 million or $0.82 per diluted share for 2023, down from $5.7 million or $0.97 per diluted share in the previous year. This decrease was mainly influenced by the regulatory action from the Office of the Comptroller of the Currency which elevated non-interest expenses.

President's Statement

Kim Liddell, the President, CEO, and Director, commented that despite regulatory challenges and an unfriendly interest rate climate, the organization's 2023 performance was admirable. Efforts are being made to improve regulatory operations, which, in turn, should benefit shareholders, according to Liddell.

Noteworthy Financial Highlights

The company has shown resilience with a 6.6% increase in the book value per share, ending at $15.17 by December 31, 2023. While the Bank's overall capital remains robustly 'well capitalized', the net interest margin and interest rate spread contracted during the year. Furthermore, there was a 3.6% year-over-year growth in total deposits, bolstering the institution's liquidity.

Credit Quality and Balance Sheet Summary

Lake Shore Bancorp transitioned to the CECL methodology for recording expected credit losses on loans, resulting in a $282,000 pre-tax increase in the allowance for credit losses on loans. Non-performing assets modestly increased as a percentage of total assets. Total assets rose by 3.6%, cash and cash equivalents surged, and securities available for sale saw a decrease as part of balance sheet adjustments. The end of the year brought a good increment in stockholders’ equity, which grew by $5.1 million, supporting the institution's financial standing.

About Lake Shore Bancorp

Lake Shore Bancorp, Inc. operates Lake Shore Savings Bank, which serves the Western New York region with its numerous full-service branches. They offer a variety of commercial and retail lending and deposit services and are publicly traded on the NASDAQ Global Market.

Forward-Looking Statements

The company's report included forward-looking statements, cautioning that future performance might differ significantly due to various risks and uncertainties, such as changes in economic conditions, interest rates, as well as decisions impacting the regulatory and taxation landscape.

Financial, Performance, Earnings