Lake Shore Bancorp, Inc. · NASDAQ:LSBK
Lake Shore Bancorp — Shareholder Meeting (May 2011)
36 slides from Lake Shore Bancorp's shareholder meeting presentation, May 18, 2011
Slide 1: May 18, 2011 Annual Meeting of Shareholders
Lake Shore Bancorp, Inc. Copyright 2011 1 May 18, 2011 Annual Meeting of Shareholders
Slide 2: Safe Harbor Statement
Lake Shore Bancorp, Inc. Copyright 2011 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
Slide 3: Lake Shore Bancorp Inc. Stock Profile
Lake Shore Bancorp, Inc. Copyright 2011 3 Lake Shore Bancorp Inc. Stock Profile Market Data (as of May 13, 2011) – (Source - NASDAQ) » Ticker Symbol LSBK » 52 – week Range $ 7.52 - $ 14.00 » Current Price $10.88 » Market Capitalization $25.68 million » Minority Shares Outst . 2.4 M shares » 50 Day A
Slide 4: Corporate Profile
Lake Shore Bancorp, Inc. Copyright 2011 4 Corporate Profile: » Lake Shore Savings has been in business for over 120 years » As of March 31, 2011 we had: □ Total Assets - $483.9 million □ Total Loans Receivable, net - $266.2 million □ Total Deposits - $376.8 million
Slide 5: Corporate Profile (continued): Branch Locations
Corporate Profile (continued): » 10 Branch Locations in Chautauqua and Erie County Lake Shore Bancorp, Inc. Copyright 2011 5 Chautauqua Erie Dunkirk Depew Fredonia East Amherst Jamestown Kenmore - Tonawanda West Ellicott Hamburg Westfield Orchard Park
Slide 6: Corporate Profile (continued): Management and employees
Corporate Profile (continued): » Strong management team. 22 Officers have an average of 19 years of experience in banking industry. » 101 full - time employees and 23 part – time employees as of April 30, 2011. Lake Shore Bancorp, Inc. Copyright 2011 6
Slide 7: Economic Environment
Economic Environment National Economy » Housing Market » Gas Prices » Unemployment Rate Lake Shore Bancorp, Inc. Copyright 2011 7
Slide 8: Economic Environment (continued): Local Economy
Economic Environment (continued) Local Economy: » Stable Housing Market » Unemployment rate - below national rate In spite of the current economic environment, our overall performance was strong during 2010. Lake Shore Bancorp, Inc. Copyright 2011 8
Slide 9: Strong 2010 Loan Originations
Strong 2010 Loan Originations » Loan originations in 2010 met our strategic goals. 2010 New Loans ($’s in millions) Residential Mortgage – New & Modified $ 34.91 Commercial Mortgage – New & Modified 11.31 Commercial Loans 4.36 Home Equity Loans 7.17 Total New Loans in 2010 $ 57.75 milli on Lake Shor
Slide 10: 2010 Erie County Deposit Growth
Lake Shore Bancorp, Inc. Copyright 2011 10 2010 Erie County Deposit Growth » More than 48% Deposit Growth Erie County Deposits 2009 $ 108.7 million Erie County Deposits 2010 $ 161.6 million Total New Deposits - Erie County 2010 $ 52.9 million Growth Percentile 48.7% New branch – Depew, New York open
Slide 11: 2010 Facilities & Technology Upgrades
2010 Facilities & Technology Upgrades » Renovation of 31 East Fourth Street location into state - of - the - art administrative offices. » Board Room - Implementation of digital technology and “going green” □ Web Based Board Materials » Relocation of the Information Technology function from the seco
Slide 12: 2010 Commercial Lending Review
2010 Commercial Lending Review » Experiencing the benefits of the realignment of our Commercial Lending activities. □ Being recognized as a primary lender, first look at deals. □ Primarily commercial real estate backed. » Branch Manager Business Lending Training » BlueBridge Small Equipment Lending
Slide 13: 2011 CEO Transition
Lake Shore Bancorp, Inc. Copyright 2011 13 2011 CEO Transition » Daniel P. Reininga - promoted to President and Chief Executive Officer on January 28, 2011. » Served as Chief Operating Officer with Lake Shore since January 4, 2010, overseeing the loan department and bank operations. » A member of th
Slide 14: Strategic Review
Strategic Review » Continue to service traditional customer base by providing cost effective banking solutions. » QuickBooks and Quicken download features recently added to Lake Shore on line banking. » Senior Staff training. □ An intensive week is planned facilitated by Jamestown Community College.
Slide 15: Strategic Review (continued): Dodd-Frank and regulators
Strategic Review (continued) » The Impact of Dodd - Frank legislation □ Projected to be in excess of 200 new regulations implemented over the next several years. » Transition from the Office of Thrift Supervision (OTS) to the Office of the Comptroller of the Currency (OCC) as the Bank’s Primary Regu
Slide 16: Strategic Review (continued): Branch Growth
Strategic Review (continued) Branch Growth » New Branch every 12 - 18 months » Market area in Erie County provides great potential for future growth opportunities. Lake Shore Bancorp, Inc. Copyright 2011 16
Slide 17: Strategic Review (continued)
Strategic Review (continued) Operationally, LSBK is positioned to continue to achieve results aimed at managing overall risk while enhancing shareholder value. Lake Shore Bancorp, Inc. Copyright 2011 17
Slide 18: Financial Presentation – Rachel Foley, Chief Financial Officer
Lake Shore Bancorp, Inc. Copyright 2011 18 » Financial Presentation – Rachel Foley, Chief Financial Officer
Slide 19: Total Assets
Lake Shore Bancorp, Inc. Copyright 2011 19 Total Assets ($ in millions) $354.2 $357.8 $407.8 $425.7 $479.0 $483.9 $200.0 $250.0 $300.0 $350.0 $400.0 $450.0 $500.0 2006 2007 2008 2009 2010 1Q 2011
Slide 20: Loans, net
Lake Shore Bancorp, Inc. Copyright 2011 20 Loans, net ($ in millions) $205.7 $218.7 $240.5 $259.2 $263.0 $266.2 $100.0 $150.0 $200.0 $250.0 $300.0 2006 2007 2008 2009 2010 1Q 2011
Slide 21: Loan Composition
Lake Shore Bancorp, Inc. Copyright 2011 21 Loan Composition (as of December 31, 2010) One - to four - family 70.32% Commercial real estate 12.92% Construction loans 0.24% Home equity 11.71% Commercial loans 3.96% Consumer loans 0.85%
Slide 22: Non-performing Loans as a percentage of Gross Loans
Lake Shore Bancorp, Inc. Copyright 2011 22 Non - performing Loans as a percentage of Gross Loans 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 2006 2007 2008 2009 2010 0.64% 0.75% 0.69% 0.65% 0.89%
Slide 23: Loan Loss Reserves as a percentage of Loans
Lake Shore Bancorp, Inc. Copyright 2011 23 Loan Loss Reserves as a percentage of Loans 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 2006 2007 2008 2009 2010 0.61% 0.56% 0.61% 0.60% 0.36%
Slide 24: Total Deposits
Lake Shore Bancorp, Inc. Copyright 2011 24 Total Deposits ($ in millions) $249.6 $240.8 $293.2 $318.4 $375.8 $376.8 $ - $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 $400.0 2006 2007 2008 2009 2010 1Q 2011
Slide 25: Deposit Composition
Lake Shore Bancorp, Inc. Copyright 2011 25 Deposit Composition (as of December 31, 2010) Savings 8.55% Money Market Accts 12.72% Interest - Bearing Demand 11.17% Noninterest - Bearing Demand 6.12% Time Deposits > $100,000 21.19% Time Deposits < $100,000 40.25%
Slide 26: Net Interest Income
Net Interest Income ($ in millions) Lake Shore Bancorp, Inc. Copyright 2011 26 $9.7 $9.5 $11.2 $11.80 $13.60 $ - $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 2006 2007 2008 2009 2010
Slide 27: Interest Rate Margin & Spread
Interest Rate Margin & Spread (in percentages) Lake Shore Bancorp, Inc. Copyright 2011 27 3.00 2.92 3.19 3.03 3.21 2.60 2.42 2.75 2.70 2.98 0.00 1.00 2.00 3.00 4.00 5.00 2006 2007 2008 2009 2010 Net Interest Margin Interest Rate Spread
Slide 28: Treasury Yield
Treasury Yield Lake Shore Bancorp, Inc. Copyright 2011 28 0.02 0.03 0.07 0.19 0.59 1.03 1.91 2.57 3.23 4.07 4.34 0.13 0.16 0.22 0.39 0.87 1.4 2.27 2.98 3.57 4.23 4.41 0 1 2 3 4 5 1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr Percentage Treasury Maturities 5/10/2011 5/10/2010
Slide 29: Net Income
Lake Shore Bancorp, Inc. Copyright 2011 29 Net Income ($ in millions) $ - $1.0 $2.0 $3.0 2006 2007 2008 2009 2010 $1.8 $1.8 $1.5 $2.2 $3.0
Slide 30: Return on Average Assets
Lake Shore Bancorp, Inc. Copyright 2011 30 Return on Average Assets (in percentages) 0.52% 0.52% 0.39% 0.52% 0.67% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 2006 2007 2008 2009 2010
Slide 31: Return on Average Equity
Return on Average Equity (in percentages) Lake Shore Bancorp, Inc. Copyright 2011 31 4.05% 3.39% 2.76% 3.93% 5.32% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 2006 2007 2008 2009 2010
Slide 32: Regulatory Capital Requirements
Lake Shore Bancorp, Inc. Copyright 2011 32 Regulatory Capital Requirements To be Well Capitalized under Prompt Corrective Action Provisions Actual Actual Action Provisions Amount Ratio Amount Ratio (Dollars in Thousands) As of December 31, 2010: Total capital (to risk - weighted assets) $49,862 20.4
Slide 33: 1st Quarter 2011 Balances Vs. 2010 Year End Balances
Lake Shore Bancorp, Inc. Copyright 2011 33 1 st Quarter 2011 Balances Vs. 2010 Year End Balances » Total Assets up $4.9 million □ Loans, net up $3.2 million □ Investments up $9.1 million □ Cash and Cash Equivalents down $6.3 million » Total Deposits up $1.0 million » Increases in Loans, net and Inve
Slide 34: 1st Quarter 2011 vs. 1st Quarter 2010 Results
Lake Shore Bancorp, Inc. Copyright 2011 34 1 st Quarter 2011 vs. 1 st Quarter 2010 Results » $950,000 net income in 1 st quarter of 2011 compared to $721,000 in 1 st quarter of 2010, a 31.8% increase. □ $188,000 increase in interest income due to an increase in investment purchases since March 31, 2
Slide 35: Dividends Paid per Share
Lake Shore Bancorp, Inc. Copyright 2011 35 Dividends Paid per Share $ - $0.01 $0.02 $0.03 $0.04 $0.05 $0.06 $0.07 $0.08 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11
Slide 36: LSBK Closing Stock Price December 31, 2006 thru May 13, 2011
LSBK Closing Stock Price December 31, 2006 thru May 13, 2011 Lake Shore Bancorp, Inc. Copyright 2011 36 $12.56 $12.72 $12.00 $10.30 $8.61 $9.30 $8.57 $9.50 $7.00 $6.89 $7.25 $8.25 $7.86 $8.20 $7.90 $8.03 $9.23 $10.21 $10.88 $ - $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00