Lake Shore Bancorp, Inc. · NASDAQ:LSBK
Lake Shore Bancorp — Investor Presentation (November 2016)
20 slides from Lake Shore Bancorp's investor presentation, Nov 8, 2016
Slide 1: Investor Information November 9, 2016
Investor Information November 9, 2016
Slide 2: Safe Harbor Statement
2 Safe Harbor Statement This presentation includes “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the Safe Harbor Provision and are including this statement for the purpose of such Sa
Slide 3: An Overview of Lake Shore
An Overview of Lake Shore 3 .Lake Shore Savings Bank is a federally chartered, community-oriented financial institution headquartered in Dunkirk, New York, with a longstanding history of community banking since 1891 .Focuses on organic growth of loan portfolio primarily through commercial real estat
Slide 4: An Overview of Lake Shore (Con't)
An Overview of Lake Shore (Con’t) 4 Source: SNL Financial. Note: Stockholder information based on a closing stock price of $14.01 on 11/3/2016 Stockholder InformationDividendsMarket InformationDividend Yield2.00%Total Market Cap (mm)$85.4OwnershipMinority Market Cap (mm)$34.5Mutual Holding Company59
Slide 5: Financial Highlights
Financial Highlights 5 Financial data is presented for Lake Shore’s Fiscal Year Ended December 31 for each respective year or for Lake Shore’s quarter ended September 30 for each respective quarter. Dollars in Thousands(except per share amounts)2016 FQ32015 FQ3QoQ ChangeAssets$478,431$472,2971.3%Net
Slide 6: Total Assets
$488.6M$482.4M$482.2M$487.5M$473.4M$478.4M$400$425$450$475$500$525201120122013201420153Q 2016Total Assets 6 .Focused on asset diversification to improve margins. Financial data is presented for Lake Shore’s Fiscal Year Ended December 31 for each respective year.
Slide 7: Total Net Loans
$275.1M$272.9M$277.3M$284.9M$297.1M$320.4M$200$225$250$275$300$325$350201120122013201420153Q 2016Total Net Loans 7 .Lake Shore continues to execute its strategic plan of organic growth primarily through loan originations. .Net Loans increased 7.8% since December 31, 2015 primarily due to organic com
Slide 8: Loan Growth
$276.4M$274.7M$279.2M$286.8M$299.1M$322.5M$0$50,000$100,000$150,000$200,000$250,000$300,000$350,000201120122013201420153Q 2016Residential One-to Four-FamilyCommercial Real EstateHome EquityConstruction and LandOther + Deferred FeesLoan Growth 8 .In recent years Lake Shore has become more focused on
Slide 9: NPLs/Total Net Loans
NPLs/Total Net Loans 9 .Lake Shore’s nonaccrual loans have consistently remained at lower levels compared to its peers. Financial data is presented for Lake Shore’s Fiscal Year Ended December 31 for each respective year. Peer group detailed on page 20. 1.02%0.89%1.66%1.66%1.57%1.81%3.46%2.70%4.12%3.
Slide 10: Continued Focus on Deposit Growth
Continued Focus on Deposit Growth 10 .Our focus has been on reducing our cost of funds by concentrating our efforts on growing core deposits. Financial data is presented for Lake Shore’s Fiscal Year Ended December 31 for each respective year. $379.8M$378.5M$388.2M$386.9M$369.2M$374.5M1.21%1.03%0.82%
Slide 11: Strong Net Interest Margin
Strong Net Interest Margin 11 .Despite operating in an environment that places significant pressure on spread and margin, Lake Shore’s margin has been increasing due to change to loan/deposit mix. Financial data is presented for Lake Shore’s Fiscal Year Ended December 31. Peer group detailed on page
Slide 12: Loan Originations 36.8% YOY Increase
Loan Originations 12 36.8% YOY Increase as of December 31, 2015 New Loans201420159/30/16 YTDResidential Mortgage - New & Modified$15.98$21.37$12.75Commercial Mortgage - New & Modified19.1327.5527.87Commercial Loans7.6411.697.22Home Equity Loans6.086.407.94Consumer Loans0.380.330.30Total New Loans$49
Slide 13: Net Income Trends
$3,680$3,626$3,743$3,158$3,338$3,375$0.65$0.64$0.66$0.55$0.57$0.56$0.48$0.50$0.52$0.54$0.56$0.58$0.60$0.62$0.64$0.66$0.68$0$500$1,000$1,500$2,000$2,500$3,000$3,500$4,000$4,500$5,000$5,500201120122013201420159/30/16 YTDNet IncomeBasic Earnings Per ShareNet Income Trends 13 Financial data is presented
Slide 14: Comparison of ROAA Results to Peers
Comparison of ROAA Results to Peers 14 Financial data is presented for Lake Shore’s Fiscal Year Ended December 31 for each respective year. Peer group is detailed on page 20 0.76%0.74%0.77%0.65%0.70%0.94%0.56%0.47%0.37%0.42%0.40%0.37%0.25%0.50%0.75%1.00%201120122013201420152016 YTD Ann.LSBK ROAAMedi
Slide 15: Continued Focus on Cost Control
Continued Focus on Cost Control 15 .Lake Shore’s efficiency ratios are generally below the peer group. Financial data is presented for Lake Shore’s Fiscal Year Ended December 31 for each respective year. Peer group is detailed on page 20 67.3%69.2%71.9%76.5%74.6%76.2%75.0%78.0%76.0%72.7%79.5%80.5%30
Slide 16: LSBK Price / Volume Chart Since IPO
LSBK Price / Volume Chart Since IPO 16 Price on 11/3/16 - $14.01 Source: SNL Financial. As of November 3, 2016. 4.006.008.0010.0012.0014.0016.00255075100125150175200Price ($)Volume (shares 000's)VolPrice
Slide 17: Creating Shareholder Value
Creating Shareholder Value 17 .High Capital Ratios enable organic growth without diluting shareholder value .Consistent dividend payment history .Stock buyback program in place Financial data is presented for Lake Shore’s Fiscal Year Ended December 31 for each respective year. 201120122013201420159/
Slide 18: Strategic Focus to Enhance Value
Strategic Focus to Enhance Value 18 .Grow deposits and diversify deposit mix, focus on low-cost core deposits .Grow loan portfolio and diversify the mix from residential to commercial loans .Grow and diversify non-interest income .Control expenses .Enhance the branch network and alternative delivery
Slide 19: Questions & Answers
QUESTIONS & ANSWERS L Lake Shore Bancorp, Inc.
Slide 20: Appendix: Lake Shore Peer Data
Appendix: Lake Shore Peer Data 20 Source: SNL Financial as of the most recent reported quarter. MHCs located in the Mid-Atlantic and Northeast Regions. Institution Name Ticker City, State Total Assets ($mm)HarborOne Bancorp, Inc. (MHC)HONEBrockton, MA2,267Greene County Bancorp, Inc. (MHC)GCBCCatskil
Lake Shore Bancorp — Investor Presentation (November 2016) on 6ix