Breaking Down Lake Shore Bancorp, Inc. (LSBK) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments? Ever wonder how to really gauge the financial stability of a company like Lake Shore Bancorp, Inc. (LSBK)? In 2024, LSBK's net income reached $4.9 million, a slight increase of 2.3% from the previous year, with earnings per share (EPS) at $0.88. But how does this translate into a clear picture of the bank's financial health, and what key factors should investors consider? Let's delve into the essential insights that can help you make informed decisions.

Lake Shore Bancorp, Inc. (LSBK) Revenue Analysis

Understanding where Lake Shore Bancorp, Inc. (LSBK) generates its income is crucial for investors. A detailed look into its revenue streams provides insights into the bank's stability and growth potential. Here's a breakdown of what drives LSBK's financial performance:

Primary Revenue Sources:

As a community-oriented financial institution, Lake Shore Bancorp, Inc. primarily generates revenue through:

• Interest Income: This comes from loans, including commercial real estate, residential mortgages, and consumer loans. It is the largest contributor to the bank's revenue.
• Service Fees and Other Charges: These include fees for deposit accounts, transaction services, and wealth management services.

Year-over-Year Revenue Growth:

Analyzing the historical revenue trends helps in understanding the bank's performance. While specific year-over-year growth rates require up-to-date financial reports, investors should look for consistent growth, or factors explaining any fluctuations. Monitoring these trends provides insights into the bank's ability to adapt to changing economic conditions.

Contribution of Business Segments:

To dissect Lake Shore Bancorp, Inc.'s revenue, it's helpful to consider the contribution from each of its key business segments. The main segments include:

• Community Banking: Revenue is derived from traditional banking activities, such as deposits, loans, and other financial services offered to individuals and small businesses.
• Commercial Banking: Focuses on providing financial solutions to larger businesses, including commercial lending, treasury management, and other specialized services.

Analysis of Changes in Revenue Streams:

Significant changes in revenue streams could be attributed to factors such as changes in interest rates, shifts in loan demand, or the introduction of new services. Monitoring these shifts is essential for assessing the bank’s adaptability and long-term prospects.

Here is an example table that displays potential revenue streams and their contributions. Note that this is an example, and real-time data should be sourced from the company's financial statements.

For more insights, you can check out: Breaking Down Lake Shore Bancorp, Inc. (LSBK) Financial Health: Key Insights for Investors

Lake Shore Bancorp, Inc. (LSBK) Profitability Metrics

Analyzing Lake Shore Bancorp, Inc. (LSBK)'s profitability involves examining several key metrics that provide insights into the company's financial health and operational efficiency. These metrics include gross profit, operating profit, and net profit margins, as well as trends in profitability over time and comparisons with industry averages. Additionally, evaluating operational efficiency, such as cost management and gross margin trends, is crucial for a comprehensive understanding.

For the fiscal year ended December 31, 2024, Lake Shore Bancorp reported a net income of $4.9 million, which translates to $0.88 per diluted share. This represents a slight increase from the previous year's net income of $4.8 million, or $0.82 per diluted share. The company's performance was positively impacted by a decrease in non-interest expenses of $1.8 million, or 8.4%, and an increase in non-interest income of $669,000, or 25.4%.

Here is a summary of Lake Shore Bancorp, Inc. (LSBK)'s key profitability figures for 2024:

• Net Income: $4.9 million, a 2.3% increase compared to 2023.
• Earnings per Share (EPS): $0.88, up from $0.82 in 2023.
• Net Interest Margin: 3.31% during the fourth quarter, a slight increase from 3.28% in the third quarter of 2024.
• Decrease in Non-Interest Expenses: $1.8 million, or 8.4% for the year.
• Increase in Non-Interest Income: $669,000, or 25.4% for the year.

While specific figures for gross profit and operating profit margins for 2024 are not explicitly available in the search results, some sources provide related insights. For instance, one source mentions that Lake Shore Bancorp's gross profit for the most recently reported fiscal quarter, ending December 31, 2024, was $6.41 million. Another source indicates a gross margin of 100% for the same period, but this may be an anomaly or an industry-specific calculation, requiring further clarification.

The company's net interest margin (NIM) is a critical indicator of profitability. For the year ended December 31, 2024, the net interest margin was 3.21%, compared to 3.62% for the year ended December 31, 2023. This decrease reflects challenges in the earnings environment, as noted by Lake Shore Bancorp's President and CEO, Kim C. Liddell.

Lake Shore Bancorp's financial performance also reflects effective cost management. Non-interest expenses decreased by $1.8 million, or 8.4%, due to lower professional services expenses, advertising costs, and FDIC insurance expenses. Additionally, the company reduced its reliance on wholesale funding by not renewing $16.0 million of brokered CDs and repaying $25.0 million of FHLBNY borrowings.

To provide a clearer picture, here's a table summarizing key income statement items (in thousands of U.S. dollars) for Lake Shore Bancorp:

Lake Shore Bancorp's Return on Assets (ROA) for the fiscal year 2024 improved to 0.72%, compared to the prior year. This increase is attributed to a 2.3% growth in annual net income, reaching $4.93 million. The company's Return on Equity (ROE) as of April 2025 (TTM) is 5.58%, a 300.87% change compared to the average of 1.39% over the last four quarters. For more insights into the company's mission, vision, and core values, you can visit Mission Statement, Vision, & Core Values of Lake Shore Bancorp, Inc. (LSBK).

Lake Shore Bancorp, Inc. (LSBK) Debt vs. Equity Structure

Understanding Lake Shore Bancorp, Inc.'s financial strategy involves analyzing its approach to debt and equity. This provides insights into how the company funds its operations and growth.

As of the fiscal year 2024, Lake Shore Bancorp, Inc. (LSBK) exhibits the following debt structure:

• Long-term Debt: Analysis of the 2024 data is required to provide the exact figures.
• Short-term Debt: Analysis of the 2024 data is required to provide the exact figures.

The debt-to-equity ratio is a critical metric in assessing financial leverage. To calculate this ratio for Lake Shore Bancorp, Inc. (LSBK) for 2024, we would divide the total liabilities by shareholders' equity. The acceptable range for the debt-to-equity ratio can vary by industry, but generally, a ratio of around 1.0 or lower is considered conservative, indicating that the company relies more on equity than debt to finance its assets. A higher ratio, such as 2.0 or greater, might indicate higher financial risk.

Factors influencing a company's decision to issue debt include:

• Market Conditions: Interest rates and investor confidence play crucial roles.
• Growth Plans: Debt can finance expansions or acquisitions.
• Tax Advantages: Interest payments on debt are often tax-deductible.

Lake Shore Bancorp, Inc. (LSBK) must strategically balance debt and equity to maintain financial health. Too much debt can increase financial risk, while too little debt might indicate missed opportunities for growth. Further information about Lake Shore Bancorp, Inc. (LSBK) can be found at Mission Statement, Vision, & Core Values of Lake Shore Bancorp, Inc. (LSBK).

Lake Shore Bancorp, Inc. (LSBK) Liquidity and Solvency

Analyzing Lake Shore Bancorp, Inc.'s (LSBK) financial health involves a close examination of its liquidity and solvency positions. These metrics provide insights into the company's ability to meet its short-term and long-term obligations.

Liquidity Ratios:

Understanding LSBK's liquidity position involves analyzing key ratios:

• Current Ratio: The current ratio, calculated by dividing current assets by current liabilities, indicates LSBK's ability to cover its short-term liabilities with its short-term assets.
• Quick Ratio: The quick ratio, which excludes inventory from current assets, provides a more conservative measure of LSBK's immediate liquidity.

Working Capital Trends:

Monitoring LSBK's working capital, which is the difference between its current assets and current liabilities, is crucial. A positive working capital balance suggests that LSBK has sufficient short-term assets to cover its short-term liabilities. Trends in working capital can reveal whether LSBK's liquidity position is improving or deteriorating.

Cash Flow Statements Overview:

LSBK's cash flow statements provide a comprehensive view of its cash inflows and outflows from operating, investing, and financing activities.

• Operating Cash Flow: This indicates the cash generated from LSBK's core business operations. A positive and stable operating cash flow is essential for maintaining liquidity.
• Investing Cash Flow: This reflects cash spent on investments in assets, such as property, plant, and equipment.
• Financing Cash Flow: This includes cash flows related to debt, equity, and dividends.

Potential Liquidity Concerns or Strengths:

Investors should be aware of any potential liquidity concerns or strengths that may affect LSBK's financial health. For example, a high level of short-term debt or a decline in operating cash flow could indicate liquidity risks. Conversely, a strong cash position and a history of generating positive operating cash flow could be signs of liquidity strength.

For more detailed insights, refer to: Breaking Down Lake Shore Bancorp, Inc. (LSBK) Financial Health: Key Insights for Investors

Lake Shore Bancorp, Inc. (LSBK) Valuation Analysis

Determining whether Lake Shore Bancorp, Inc. (LSBK) is overvalued or undervalued requires analyzing several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, stock price trends, dividend yield and payout ratios, and analyst consensus.

Currently, up-to-date, specific valuation ratios such as P/E, P/B, and EV/EBITDA for Lake Shore Bancorp, Inc. are not available as of April 20, 2025. Investors typically use these ratios to compare LSBK’s market value to its earnings, book value, and operational cash flow. A lower P/E ratio might suggest undervaluation relative to peers, while a higher P/B ratio could indicate overvaluation if the market price significantly exceeds the company's net asset value.

Analyzing Lake Shore Bancorp, Inc.'s (LSBK) stock price trends over the past 12 months (or longer) provides insights into market sentiment and investor confidence. As of April 2025, specific stock trends are not available in the search results. Generally, a consistent upward trend may suggest positive market perception, whereas a downward trend could indicate concerns about the company's performance or industry outlook.

To evaluate Lake Shore Bancorp, Inc.'s valuation, consider the following:

• Price-to-Earnings (P/E) Ratio: Compares the company's stock price to its earnings per share. A lower P/E ratio could suggest the stock is undervalued.
• Price-to-Book (P/B) Ratio: Measures the market value of a company relative to its book value of equity. A lower P/B ratio might indicate undervaluation.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: Compares the company's enterprise value to its earnings before interest, taxes, depreciation, and amortization. It's used to assess if a company is undervalued or overvalued.

If Lake Shore Bancorp, Inc. distributes dividends, the dividend yield and payout ratios are important valuation considerations. The dividend yield indicates the return on investment based on the dividend payments, while the payout ratio shows the proportion of earnings paid out as dividends. Currently, specific dividend yield and payout ratios are not available. A higher dividend yield can attract income-seeking investors, but a high payout ratio may raise concerns about the sustainability of dividend payments if earnings decline.

Analyst consensus on Lake Shore Bancorp, Inc.'s stock valuation provides a summarized view of professional opinions. These ratings typically range from 'buy' to 'hold' to 'sell.' However, the current analyst consensus is not available as of April 2025. A consensus of 'buy' ratings suggests that analysts believe the stock is undervalued, while 'sell' ratings indicate the opposite.

For further insights into Lake Shore Bancorp, Inc.'s investors, explore: Exploring Lake Shore Bancorp, Inc. (LSBK) Investor Profile: Who’s Buying and Why?

Lake Shore Bancorp, Inc. (LSBK) Risk Factors

Several internal and external risk factors could significantly impact the financial health of Lake Shore Bancorp, Inc. (LSBK). These risks span from industry-specific challenges to broader market conditions, regulatory changes, and the company's operational and strategic decisions.

Industry Competition: The financial services industry is highly competitive. Lake Shore Bancorp, Inc. faces competition from other community banks, regional and national banks, credit unions, and non-bank financial service providers. Increased competition can pressure profit margins, limit growth opportunities, and require increased investments in technology and customer service to remain competitive.

Regulatory Changes: Banks are subject to extensive regulation at both the federal and state levels. Changes in regulations, such as capital requirements, lending restrictions, and compliance rules, can increase operating costs, limit lending activities, and impact profitability. For example, changes related to the Dodd-Frank Act or other financial reform measures can have significant implications.

Market Conditions: Economic downturns, changes in interest rates, and fluctuations in the real estate market can all impact Lake Shore Bancorp, Inc.'s financial performance. Rising interest rates can decrease demand for loans, while declining economic conditions can increase loan defaults and reduce asset values. The bank's performance is also tied to the economic health of the communities it serves.

Operational Risks: These include risks related to the bank's internal processes, systems, and people. Operational risks can stem from:

• Cybersecurity Threats: Banks are increasingly vulnerable to cyberattacks, which can compromise sensitive customer data, disrupt operations, and result in financial losses.
• Credit Risk: The risk that borrowers will default on their loans is a constant concern. Effective credit risk management is crucial to maintaining a healthy loan portfolio.
• Liquidity Risk: The risk of not having sufficient cash to meet obligations. Maintaining adequate liquidity is essential for meeting deposit withdrawals and funding loan demand.

Financial Risks:

• Interest Rate Risk: Fluctuations in interest rates can affect the bank's net interest income, which is the difference between the income generated from assets and the expense paid on liabilities.
• Credit Risk: As mentioned above, the potential for borrowers to default on loans remains a significant financial risk.

Strategic Risks: Strategic risks involve decisions related to the bank's business model, growth strategy, and competitive positioning. Failure to adapt to changing market conditions or make sound strategic investments can negatively impact the bank's long-term performance.

While specific mitigation strategies are not detailed here, banks typically employ various methods to manage these risks, such as diversifying their loan portfolio, implementing robust risk management systems, maintaining adequate capital reserves, and staying informed about regulatory changes.

More insights about Lake Shore Bancorp, Inc. (LSBK) can be found here: Mission Statement, Vision, & Core Values of Lake Shore Bancorp, Inc. (LSBK).

Lake Shore Bancorp, Inc. (LSBK) Growth Opportunities

For Lake Shore Bancorp, Inc. (LSBK), several factors could drive future growth. These encompass new services, market penetration, and strategic financial decisions. The company's ability to adapt to changing market conditions and leverage its resources will be crucial for sustaining growth.

While specific future revenue growth projections and earnings estimates for Lake Shore Bancorp, Inc. (LSBK) aren't available, insight into the company's recent financial performance can be found in their filings. For instance, their latest financial releases and investor presentations often detail current performance and expectations. These resources would be helpful in understanding potential revenue growth and earnings.

Strategic initiatives and partnerships are vital for Lake Shore Bancorp, Inc. (LSBK) to enhance its market position and explore new opportunities. Though specific recent initiatives or partnerships aren't detailed, such collaborations are typical growth strategies in the financial sector. To get current details, reviewing their latest investor relations releases and financial news could provide insights into any new strategic moves.

Lake Shore Bancorp, Inc. (LSBK)'s competitive advantages are key to its growth prospects. While a comprehensive list of these advantages isn't readily available, several factors typically give financial institutions a competitive edge:

• Customer Relationships: Strong ties with local customers.
• Market Expertise: Deep understanding of the regional market.
• Efficient Operations: Streamlined services and cost management.
• Technology Adoption: Embracing new technologies for better service delivery.

These elements, when effectively leveraged, can significantly bolster Lake Shore Bancorp, Inc. (LSBK)'s growth trajectory. More details about Lake Shore Bancorp, Inc. (LSBK)'s financial health can be found here: Breaking Down Lake Shore Bancorp, Inc. (LSBK) Financial Health: Key Insights for Investors