GlobeNewswire
Lake Shore Bancorp, Inc. Announces Full Year 2020 and Fourth Quarter Financial Results
DUNKIRK, N.Y., Jan. 29, 2021 (GLOBE NEWSWIRE) — Lake Shore Bancorp, Inc. (the “Firm”) (NASDAQ: LSBK), the holding firm for Lake Shore Financial savings Financial institution (the “Financial institution”), reported unaudited web revenue of $1.24 million, or $0.21 per diluted share, for the fourth quarter of 2020 in comparison with web revenue of $1.17 million, or $0.20 per diluted share, for the fourth quarter of 2019. For the yr ended December 31, 2020, the Firm reported unaudited web revenue of $4.6 million, or $0.77 per diluted share, as in comparison with $4.1 million, or $0.68 per diluted share, for the yr ended December 31, 2019. 2020 Full 12 months and Fourth Quarter Monetary Highlights: Web revenue of $1.24 million within the fourth quarter of 2020 elevated $71,000, or 6.1%, when in comparison with the fourth quarter of 2019. The rise in fourth quarter 2020 web revenue was primarily impacted by will increase in non-interest revenue and web curiosity revenue, which was partially offset by will increase in provision for mortgage losses, non-interest expense and revenue tax expense. Web revenue elevated $471,000, or 11.5%, for the yr ended December 31, 2020 when in comparison with the yr ended December 31, 2019, primarily as a result of will increase in web curiosity revenue and non-interest revenue partially offset by will increase in provision for mortgage losses and revenue tax expense;Provision for mortgage losses for the yr ended December 31, 2020 was $1.6 million, a $725,000 improve as in comparison with the prior yr, primarily reflecting the financial uncertainty regarding COVID-19. The ensuing allowance was 1.16% of the whole mortgage portfolio at December 31, 2020 (excluding $18.1 million of Small Enterprise Administration (“SBA”) Paycheck Safety Program (“PPP”) loans excellent at December 31, 2020 which are 100% assured by the SBA);Loans, web totaled $524.1 million at December 31, 2020, in comparison with $470.8 million at December 31, 2019, a rise of $53.3 million, or 11.3%, primarily because of the origination of economic actual property and PPP loans throughout the yr ended December 31, 2020;Whole property at December 31, 2020 elevated $75.3 million, or 12.3%, to $686.2 million when in comparison with December 31, 2019 primarily as a result of a rise in loans in addition to a rise in money and money equivalents and securities obtainable on the market; andTotal deposits grew by $76.8 million, or 15.9%, to $560.3 million at December 31, 2020 when in comparison with December 31, 2019, primarily as a result of development in core deposits. “Within the face of the extraordinary challenges skilled in 2020, we’re extraordinarily proud to report that we efficiently met the wants of our clients and communities as evidenced by the sturdy stage of mortgage originations and deposit development mirrored on our stability sheet,” acknowledged Daniel P. Reininga, President and Chief Government Officer. “Our sturdy threat administration practices, the dedication and dedication of our workers, and our sustained deal with personalised customer support allowed us to successfully navigate the pandemic challenges and market situations. We’re happy to finish the yr with file earnings and whole property, 13.2% annual development in earnings per share and 5.5% annual development in e-book worth per share which was $14.75 at December 31, 2020.” COVID 19 Pandemic Replace Throughout the 2nd and third quarters of 2020, the Financial institution originated SBA PPP loans to reduce the financial affect of the COVID-19 pandemic on small companies in our market areas. The Financial institution originated 252 PPP loans for $26.9 million, of which 68.5% was funded straight by the Financial institution and the remaining 31.5% was funded not directly through our partnership with an SBA lender that operates within the northeast. As of December 31, 2020, $18.1 million of the straight funded PPP loans had been nonetheless excellent on the Financial institution’s stability sheet. The Financial institution expects {that a} majority of those PPP loans might be forgiven by the SBA throughout the first quarter of 2021. In December 2020, a stimulus package deal was permitted by Congress which included further PPP mortgage funding from the SBA. The Financial institution is at the moment working with clients which are fascinated with making use of for this second spherical of funding. The Financial institution carried out a mortgage deferral program throughout 2020, in keeping with regulatory steering, to additional help clients which were impacted by the pandemic. As of June 30, 2020, we had permitted mortgage cost deferral requests of as much as 90 days on 219 loans, representing $103.1 million, or 21.1%, of the Financial institution’s mortgage portfolio. The variety of mortgage cost deferral requests has decreased and as of December 31, 2020 there have been 15 loans, representing $24.0 million, or 4.6%, of the mortgage portfolio, which are deferring funds. Whereas many industries have and can proceed to expertise antagonistic impacts on account of the COVID-19 pandemic, the Firm’s administration workforce has thought of the classes under to be “in danger” of great affect. The desk under identifies these segments in addition to the excellent mortgage stability, dedicated mortgage stability, and present excellent cost deferrals for every trade kind. At December 31, 2020 ({dollars} in 1000’s) Variety of Stability Excellent % of Whole Loans Mortgage Commitments Loans Excellent with Fee Deferrals% of Loans with Fee Deferral to Whole LoansIndustry TypeLoans ($) Excellent ($) # $Excellent Retail (non-essential)18 $19,390 3.7% $231 – $- – Consuming and Consuming Establishments41 16,377 3.1 3,104 9 9,809 1.9percentHotels/Accommodations16 10,980 2.1 1,226 3 6,129 1.2percentConstruction Trades44 9,946 1.9 10,514 – – – Dental and Medical Practices and Gyms12 3,631 0.7 2,231 1 193 0.1% 131 $60,324 11.5% $17,306 13 $16,131 3.2% “There stays appreciable uncertainty surrounding the affect of the pandemic and the present financial setting on a borrower’s potential to repay mortgage obligations,” acknowledged Mr. Reininga. “Nevertheless, our sizeable capital ranges, conservative underwriting and steady threat administration practices present us with the instruments to appropriately handle asset high quality.” Web Curiosity Earnings Fourth quarter 2020 web curiosity revenue elevated $194,000, or 4.0%, to $5.1 million as in comparison with $4.9 million for the fourth quarter 2019. For the yr ended December 31, 2020, web curiosity revenue elevated $862,000, or 4.5%, to $19.9 million as in comparison with $19.1 million for the yr ended December 31, 2019. Curiosity revenue for the fourth quarter of 2020 was $6.0 million, a lower of $355,000, or 5.6%, in comparison with $6.3 million for the fourth quarter of 2019. The lower was attributable to an 80 foundation factors lower within the common yield earned on property because of the lower in market rates of interest since December 31, 2019. The lower was partially offset by an $80.6 million, or 14.4%, improve within the common stability of interest-earning property throughout fourth quarter 2020 as in comparison with the fourth quarter 2019. The rise within the common stability of interest-earning property was primarily as a result of development within the common stability of money and money equivalents, business actual property and PPP loans. Curiosity revenue was $24.3 million for the years ended December 31, 2020 and 2019. Curiosity revenue was positively impacted by an $84.6 million, or 15.9%, improve within the common stability of interest-earning property throughout the yr ended December 31, 2020 as in comparison with the yr ended December 31, 2019. The rise within the common stability of interest-earning property was primarily as a result of development within the common stability of money and money equivalents, business actual property and PPP loans. Curiosity revenue was negatively impacted by a 61 foundation factors lower within the common yield earned on property because of the lower in market rates of interest since December 31, 2019. Fourth quarter 2020 curiosity expense was $0.9 million, a lower of $549,000, or 38.2%, from $1.4 million for the fourth quarter 2019 primarily as a result of a lower in curiosity paid on deposit accounts. Throughout the fourth quarter of 2020, there was a 58 foundation factors lower within the common rate of interest paid on deposit accounts on account of a lower in market rates of interest since December 31, 2019. The lower was partially offset by a $52.5 million, or 12.7%, improve in common interest-bearing deposits throughout the 2020 fourth quarter as in comparison with the 2019 fourth quarter. The rise within the common stability of interest-bearing deposits was as a result of a rise in core deposit accounts primarily via natural development, the deposit of PPP funds and authorities stimulus funds into our clients’ deposit accounts and the affect of COVID-19 on shopper and enterprise spending and financial savings ranges. Curiosity expense for the yr ended December 31, 2020 was $4.4 million, a lower of $793,000, or 15.3%, from $5.2 million for the yr ended December 31, 2019 primarily as a result of a lower in curiosity paid on deposit accounts. Throughout the yr ended December 31, 2020, there was a 32 foundation factors lower within the common rate of interest paid on deposit accounts on account of a lower in market rates of interest since December 31, 2019. The lower was partially offset by a $56.4 million, or 14.2%, improve in common interest-bearing deposits throughout the yr ended December 31, 2020 as in comparison with the yr ended December 31, 2019. The rise within the common stability of interest-bearing deposits was as a result of a rise in core deposit accounts primarily via natural development, the deposit of PPP funds and authorities stimulus funds into our clients’ deposit accounts and the affect of COVID-19 on shopper and enterprise spending and financial savings ranges. The lower in curiosity expense was partially offset by a $30,000 improve in curiosity paid on long-term borrowings. Curiosity expense paid on long-term borrowings elevated as a result of a $3.5 million improve within the common stability of borrowings throughout the yr ended December 31, 2020 as in comparison with the yr ended December 31, 2019. The rise within the common stability was as a result of further borrowings drawn by the Financial institution to benefit from low, fastened rates of interest to fund mortgage development and mitigate rate of interest threat. Non-Curiosity Earnings Non-interest revenue was $1.2 million for the fourth quarter of 2020, a rise of $470,000, or 68.3%, as in comparison with the identical quarter within the prior yr. The rise was primarily as a result of a $473,000 improve in features on the sale of loans, on account of an $8.7 million, or 441.5%, improve within the quantity of low-rate, long-term residential mortgage loans bought into the secondary market to handle rate of interest threat. Non-interest revenue was additionally impacted by a web $28,000 improve in unrealized features on fairness securities and recoveries on beforehand impaired securities, partially offset by a $38,000 lower in service costs and costs. The lower in service costs and costs was primarily as a result of a lower in inadequate fund service costs obtained on business deposit accounts. Non-interest revenue was $3.0 million for the yr ended December 31, 2020, a rise of $500,000, or 20.1%, as in comparison with the yr ended December 31, 2019. The rise was primarily a results of a $777,000 improve in features on the sale of loans. The amount of residential mortgage loans originated on the market throughout the yr ended December 31, 2020 elevated by $15.9 million, or 489.2%, as in comparison with the prior yr as a result of a lower in market charges throughout 2020. We promote sure low, fastened charge mortgages into the secondary market to handle rate of interest threat. The rise in non-interest revenue was partially offset by a $110,000 improve in unrealized losses on rate of interest swaps and fairness securities on account of decreases in market rates of interest throughout the yr ended December 31, 2020 and a $177,000 lower in service costs and costs because of the waiver of sure ATM charges and different service costs for our clients throughout the COVID-19 pandemic. Non-Curiosity Expense Non-interest expense was $4.3 million for the fourth quarter of 2020 as in comparison with $4.1 million for the fourth quarter of 2019, primarily as a result of a rise in knowledge processing {and professional} companies bills. Information processing expense elevated $137,000, or 41.6%, primarily as a result of a rise in core system processing prices and exercise. Skilled companies expense elevated $104,000, or 84.6%, primarily as a result of a rise in authorized and accounting prices. Wage and worker advantages expense elevated $59,000, or 2.9%, primarily as a result of a rise in worker incentive awards throughout the fourth quarter of 2020 when in comparison with the fourth quarter of 2019. The present yr fourth quarter additionally had greater FDIC insurance coverage and occupancy and gear prices. These will increase had been partially offset by a lower in promoting and different bills. Non-interest expense was $15.9 million for the years ended December 31, 2020 and December 31, 2019. Information processing expense elevated $127,000, or 9.4%, primarily as a result of a rise in core system processing prices and exercise. Skilled companies expense elevated $110,000, or 12.8%, primarily as a result of a rise in authorized, accounting and consulting prices. Wage and worker advantages expense decreased by $139,000, or 1.6%, as a result of a rise in deferred wage expense associated to elevated mortgage originations and reduces in inventory compensation bills and medical health insurance prices, partially offset by will increase in worker salaries and incentive awards. The yr ended December 31, 2020 additionally had decrease different bills and promoting bills, which had been partially offset by greater bills for occupancy and gear, FDIC insurance coverage and postage and provides. Asset High quality The supply for mortgage losses was $500,000 for fourth quarter of 2020 as in comparison with $175,000 for the fourth quarter of 2019. The fourth quarter 2020 provision expense was primarily as a result of common reserves for $32.3 million of economic actual property mortgage development throughout the fourth quarter of 2020. The supply for mortgage losses for the yr ended December 31, 2020 was $1.6 million as in comparison with $900,000 for the yr ended December 31, 2019. The rise within the provision expense was primarily as a result of an adjustment of sure qualitative elements to keep in mind the affect of COVID-19 and associated financial situations on debtors’ potential to repay loans and a $12.5 million improve in criticized business actual property and business enterprise loans. Non-performing loans as a p.c of whole web loans decreased to 0.59% at December 31, 2020 as in comparison with 0.75% at December 31, 2019. The Firm’s allowance for mortgage losses as a p.c of whole web loans was 1.12% and 0.91% at December 31, 2020 and 2019, respectively. Stability Sheet Abstract Whole property at December 31, 2020 had been $686.2 million, a $75.3 million, or 12.3%, improve as in comparison with $610.9 million at December 31, 2019. Loans receivable, web at December 31, 2020 was $524.1 million, a $53.3 million improve, or 11.3%, as in comparison with $470.8 million at December 31, 2019. The rise in whole loans was primarily as a result of a rise in business actual property and PPP mortgage originations. Securities obtainable on the market elevated $8.1 million, or 11.4%, to $79.3 million at December 31, 2020 from $71.2 million at December 31, 2019. Money and money equivalents elevated by $12.7 million, or 41.9%, from $30.3 million at December 31, 2019 to $43.0 million at December 31, 2020. The rise was primarily as a result of a rise in deposits, partially offset by means of funds for mortgage originations and securities purchases. Whole deposits at December 31, 2020 had been $560.3 million, a rise of $76.8 million, or 15.9%, in comparison with $483.5 million at December 31, 2019. The rise in deposits was as a result of a rise in core deposit accounts, primarily pushed by authorities stimulus-related deposit funding. Stockholders’ fairness at December 31, 2020 was $85.9 million as in comparison with $82.8 million at December 31, 2019. The rise in stockholders’ fairness was primarily attributed to web revenue and a rise in gathered different complete revenue which was partially offset by dividend funds and inventory repurchases throughout the yr ended December 31, 2020. About Lake Shore Lake Shore Bancorp, Inc. (NASDAQ International Market: LSBK) is the mid-tier holding firm of Lake Shore Financial savings Financial institution, a federally chartered, community-oriented monetary establishment headquartered in Dunkirk, New York. The Financial institution has eleven full-service department areas in Western New York, together with 5 in Chautauqua County and 6 in Erie County. The Financial institution presents a broad vary of retail and business lending and deposit companies. The Firm’s widespread inventory is traded on the NASDAQ International Market as “LSBK”. Further details about the Firm is on the market at www.lakeshoresavings.com. Protected-Harbor This launch comprises sure forward-looking statements inside the that means of the Personal Securities Litigation Reform Act of 1995, which are based mostly on present expectations, estimates and projections concerning the Firm’s and the Financial institution’s trade, and administration’s beliefs and assumptions. Phrases resembling anticipates, expects, intends, plans, believes, estimates and variations of such phrases and expressions are supposed to establish forward-looking statements. Such statements should not ensures of future efficiency and are topic to sure dangers, uncertainties and assumptions which are tough to forecast. Subsequently, precise outcomes could differ materially from these expressed or forecast in such forward-looking statements. The Firm and Financial institution undertake no obligation to replace publicly any forward-looking statements, whether or not on account of new data or in any other case. As the results of the COVID-19 pandemic and the associated antagonistic native and nationwide financial penalties, the Firm could possibly be topic to any of the next further dangers, any of which may have a fabric, antagonistic impact on its enterprise, monetary situation, liquidity, and outcomes of operations: demand for our services and products could decline, making it tough to develop property and revenue;if the economic system is unable to considerably reopen, and excessive ranges of unemployment proceed for an prolonged time period, mortgage delinquencies, downside property, and foreclosures could improve, leading to elevated costs and lowered revenue;collateral for loans, particularly actual property, could decline in worth, which may trigger mortgage losses to extend;our allowance for mortgage losses could should be elevated if debtors expertise monetary difficulties past forbearance intervals, which is able to adversely have an effect on our web revenue;the web price and liquidity of mortgage guarantors could decline, impairing their potential to honor commitments to us;as the results of the decline within the Federal Reserve Board’s goal federal funds charge to close 0%, the yield on our property could decline to a larger extent than the decline in our price of interest-bearing liabilities, lowering our web curiosity margin and unfold and lowering web revenue;a fabric lower in web revenue over a number of quarters may end in a lower within the charge of our quarterly money dividend; our cyber safety dangers are elevated as the results of a rise within the variety of workers working remotely;we depend on fourth celebration distributors for sure companies and the unavailability of a vital service because of the COVID-19 outbreak may have an antagonistic impact on us; and FDIC premiums could improve if the company experiences further decision prices. Supply: Lake Shore Bancorp, Inc.Class: Monetary Investor Relations/Media ContactRachel A. FoleyChief Monetary Officer and TreasurerLake Shore Bancorp, Inc.31 East Fourth StreetDunkirk, New York 14048(716) 366-4070 ext. 1020 Lake Shore Bancorp, Inc.Chosen Monetary Data Chosen Monetary Situation Information December 31, December 31, 2020 2019 (Unaudited) ({Dollars} in 1000’s) Whole property$ 686,200 $610,869Cash and money equivalents 42,975 30,289Securities obtainable on the market 79,285 71,201Loans receivable, web 524,143 470,816Deposits 560,259 483,476Long-term debt 29,750 34,650Stockholders’ fairness 85,924 82,840 Statements of Earnings Three Months Ended Years Ended December 31, December 31, 2020 2019 2020 2019 (Unaudited) ({Dollars} in 1000’s, besides per share quantities) Curiosity revenue$ 5,979 $6,334 $ 24,336 $24,267Interest expense 889 1,438 4,404 5,197Net curiosity revenue 5,090 4,896 19,932 19,070Provision for mortgage losses 500 175 1,625 900Net curiosity revenue after provision for mortgage losses 4,590 4,721 18,307 18,170Total non-interest revenue 1,158 688 2,992 2,492Total non-interest expense 4,262 4,051 15,917 15,920Income earlier than revenue taxes 1,486 1,358 5,382 4,742Income tax expense 243 186 824 655Net revenue$ 1,243 $1,172 $ 4,558 $4,087Basic and diluted earnings per share$ 0.21 $0.20 $ 0.77 $0.68Dividends declared per share$ 0.13 $0.12 $ 0.49 $0.48 Lake Shore Bancorp, Inc.Chosen Monetary Data Chosen Monetary Ratios Three Months Ended Years Ended December 31, December 31, 20202019 20202019 (Unaudited) Return on common assets0.73% 0.78% 0.69% 0.71percentReturn on common equity5.79% 5.64% 5.37% 4.99percentAverage interest-earning property to common interest-bearing liabilities128.17% 124.03% 126.65% 124.61percentRate of interest spread3.03% 3.26% 3.05% 3.34percentNet curiosity margin3.18% 3.51% 3.23% 3.58% December 31,December 31, 2020 2019 (Unaudited) Asset High quality Ratios: Non-performing loans as a p.c of whole web loans0.59% 0.75percentNon-performing property as a p.c of whole assets0.46% 0.71percentAllowance for mortgage losses as a p.c of whole web loans1.12% 0.91percentAllowance for mortgage losses as a p.c of non-performing loans118.75% 120.30% December 31, December 31, 2020 2019 (Unaudited) Share Data: Widespread inventory, variety of shares excellent 5,823,786 5,924,339Treasury inventory, variety of shares held 1,012,728 912,175Book worth per share$ 14.75 $13.98
