Lake Shore Bancorp, Inc. · NASDAQ:LSBK
Lake Shore Bancorp — Shareholder Meeting (May 2020)
37 slides from Lake Shore Bancorp's shareholder meeting presentation, May 20, 2020
Slide 1: Annual Shareholders' Meeting May 20, 2020
1 Annual Shareholders’ Meeting May 20, 2020 LS Bancorp JPG.png
Slide 2: Agenda
2 Agenda LS Bancorp JPG.pngCall to Order - Gary W. Winger, Chairman Introduction of Officers, Directors and Director Nominees Secretary’s Report Presentation of Proposals Executive Management Report to Shareholders Vote Report Adjournment
Slide 3: Board of Directors
3 Board of Directors LS Bancorp JPG.png Director Since Susan C. Ballard 2012 Tracy S. Bennett 2010 Sharon E. Brautigam, Nominating and Corporate Governance Committee Chairperson 2004 David C. Mancuso, Asset/Liability Committee Chairman 1998 John P. McGrath 2019 John (“Jack”) L. Mehltretter 2016 Rona
Slide 4: Business of Annual Shareholders Meeting
4 Business of Annual Shareholders Meeting LS Bancorp JPG.pngThe election of three Class Three directors to serve until the 2023 Annual Meeting and two Class One directors to serve until the 2021 Annual Meeting. Upon the recommendation of the Nominating and Corporate Governance Committee, the followi
Slide 5: Executive Management Presentation
5 Executive Management Presentation LS Bancorp JPG.pngDaniel P. Reininga, President and Chief Executive Officer
Slide 6: Safe Harbor Statement
6 Safe Harbor Statement LS Bancorp JPG.pngThis 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
Slide 7: COVID Response and Bank Strategy
7 COVID 19 Response and Bank Strategy LS Bancorp JPG.pngPandemic Plan Implemented March 12, 2020 Protecting our Customers and Employees Our Mission and Values Drive Our Response to COVID-19 Our primary management strategy has been to maintain our position as an authentic community bank, locally head
Slide 8: Our Mission & Values Drive Our Response to COVID-19
8 Our Mission & Values Drive Our Response to COVID-19 Customers Associates Response Plan Goal = Protect our Employees, Customers and Communities we serve Immediate Work from Home Program Separated 70% of back office personnel into alternative work locations Closed community banking office lobbies –
Slide 9: An Overview of Lake Shore
9 An Overview of Lake Shore LS Bancorp JPG.pnghttps://maps.snl.com/arcgisoutput/Utilities/PrintingTools_GPServer/_ags_5648a30321784a39a89ed894a10948f2.jpgSource: S&P Global Market Intelligence. Deposit information as of June 30, 2019, updated for any pending acquisitions. New York Franchise demograp
Slide 10: An Overview of Lake Shore (Con't)
10 An Overview of Lake Shore (Con’t) LS Bancorp JPG.pngDividendsMarket InformationDividend Yield3.83%Total Market Cap (mm)$74.2OwnershipMinority Market Cap (mm)$28.6Mutual Holding Company61.45%Book Value Per Share$14.16Institutional8.69%Price / Book88%Insider*8.54%Price / MRQ EPS26.1xStockholder Inf
Slide 11: Positioned for Growth
11 Positioned for Growth LS Bancorp JPG.pngDedicated to Community Banking Model Focus on High-Quality, Personalized Customer Service Enhanced Operating Efficiency Enterprise Risk Mitigation Safe, Reasonable, Sustainable Growth
Slide 12: Customer Value
12 Customer Value LS Bancorp JPG.pngContinue to deploy Technology Driven Solutions, geared at driving optimum customer experience and efficiency LS Rewards debit card program Converted P2P payment system to Zelle from Pop Money Optimization of the mobile experience for the LSSB website Enhanced busi
Slide 13: Technology
13 Technology LS Bancorp JPG.pngImproved network infrastructure Deployed new telecommunications system Seamless mobility Strictly a financial sector vendor Cybersecurity Enhancements Cloud based with enhance mobility Network Backbone, enhanced security Due diligence started on core solutions for bes
Slide 14: Continue to….
14 Continue to…. LS Bancorp JPG.pngEmpower our employees focusing on professional development Promote Ethical Behavior Support the Communities we serve
Slide 15: Creating Shareholder Value
15 Creating Shareholder Value LS Bancorp JPG.pngFinancial data is presented for Lake Shore’s Fiscal Year Ended December 31 for each respective year and for the three months ended March 31, 2020. * Dividends per share of $0.48 annualized in the 1st quarter of 2020. High capital ratios enable organic
Slide 16: Board Member Changes
16 Board Member Changes LS Bancorp JPG.png Retirement of Gary W. Winger, Chairman of the Board Incoming Board Chair – Kevin M. Sanvidge
Slide 17: New Board Members
17 New Board Members LS Bancorp JPG.png John P. McGrath Ronald J. Passafaro
Slide 18: Commercial Division
18 Commercial Division LS Bancorp JPG.pngPersonalized lending services Experienced team of commercial lenders and support staff Quick turnaround on lending requests due to local approval structure Full suite of commercial lending products with an ever growing product suite from the branch side to pr
Slide 19: Summary
19 Summary LS Bancorp JPG.pngAfter more than 128 years in business, we continue to be a local bank that cares about its customers and communities. At Lake Shore Savings, that has always meant “Putting People First”. We will continue to put our customers, communities and shareholders “First”, as we a
Slide 20: Financial Highlights
20 Financial Highlights LS Bancorp JPG.pngRachel A. Foley, Chief Financial Officer and Treasurer
Slide 21: Financial Highlights
21 Financial Highlights LS Bancorp JPG.pngFinancial data is presented for Lake Shore’s Fiscal Year Ended December 31 for each respective year or for Lake Shore’s quarter ended March 31 for each respective quarter. * Dividend Yield is as of December 31 for each respective year or as of March 31 for e
Slide 22: Total Assets
22 Total Assets LS Bancorp JPG.pngFinancial data is presented for Lake Shore’s Fiscal Year Ended December 31 for each respective year and for the three months ended March 31, 2020. Focused on asset diversification to improve margins. $482.2M$487.5M$473.4M$489.2M$519.0M$545.7M$610.9M$628.3M$0$100,000
Slide 23: Loan Growth
23 Loan Growth LS Bancorp JPG.pngFinancial data is presented for Lake Shore’s Fiscal Year Ended December 31 for each respective year and for the three months ended March 31, 2020. $277.3M$284.9M$297.1M$326.4M$365.1M$392.5M$470.8M$473.4 M$0$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,0
Slide 24: Loan Originations
24 Loan Originations LS Bancorp JPG.pngDollars in millions. Data is presented for Lake Shore’s Fiscal Year Ended December 31 for each respective year and for the three months ended March 31, 2020. 6.12% YOY Increase as of December 31, 2019 New Loans201520162017201820193/31/2020Residential Mortgage -
Slide 25: COVID-19 Loan Deferrals
25 COVID-19 Loan Deferrals LS Bancorp JPG.pngAs of May 11, 2020, we had received requests to modify 219 loans with a balance outstanding of $103.1 million, or 21.0%, of the Bank’s loan portfolio. Modifications are primarily for 3 month deferral of principal and interest payments. Note: Data as of 5/
Slide 26: COVID-19 - At-Risk Loans
26 COVID-19 - At-Risk Loans LS Bancorp JPG.pngNote: Data as of 3/31/20
Slide 27: NPLs / Total Net Loans
27 NPLs / Total Net Loans LS Bancorp JPG.pngDuring the last three years 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 36.
Slide 28: Loan Loss Reserves / Total Net Loans
28 Loan Loss Reserves / Total Net Loans LS Bancorp JPG.pngFinancial data is presented for Lake Shore’s Fiscal Year Ended December 31 for each respective year and for the three months ended March 31, 2020. 0.65%0.67%0.67%0.88%0.90%0.88%0.91%1.01%0.00%0.20%0.40%0.60%0.80%1.00%1.20%20132014201520162017
Slide 29: Continued Focus on Deposit Growth
29 Continued Focus on Deposit Growth LS Bancorp JPG.pngFinancial data is presented for Lake Shore’s Fiscal Year Ended December 31 for each respective year and for the three months ended March 31, 2020. $388.2M$386.9M$369.2M$385.9M$405.2M$432.5M$483.5M$501.2M0.83%0.76%0.60%0.49%0.61%0.81%1.13%1.12%0.
Slide 30: Strong Net Interest Margin
30 Strong Net Interest Margin LS Bancorp JPG.pngFinancial data is presented for Lake Shore’s Fiscal Year Ended December 31 for each respective year and for the three months ended March 31, 2020. Peer group detailed on page 36. *Received $202,000 in interest related to the pay-off of one non-performi
Slide 31: Net Income Trends
31 Net Income Trends LS Bancorp JPG.pngFinancial data is presented for Lake Shore’s Fiscal Year Ended December 31 for each respective year and for the three months ended March 31, 2020. Dollars in thousands except per share amounts. *In the first quarter of 2016, Lake Shore sold $14.4 million of U.S
Slide 32: Comparison of ROAA Results to Peers
32 Comparison of ROAA Results to Peers LS Bancorp JPG.pngFinancial data is presented for Lake Shore’s Fiscal Year Ended December 31 for each respective year and for the three months ended March 31, 2020. Peer group detailed on page 36. Dollars in thousands except per share amounts. *In the first qua
Slide 33: Continued Focus on Cost Control
33 Continued Focus on Cost Control LS Bancorp JPG.pngFinancial data is presented for Lake Shore’s Fiscal Year Ended December 31 for each respective year and for the three months ended March 31, 2020. Peer group detailed on page 36. Lake Shore’s efficiency ratios are generally below the peer group. 7
Slide 34: LSBK Price / Volume Chart Since IPO
34 LSBK Price / Volume Chart Since IPO LS Bancorp JPG.pngSource: S&P Global Market Intelligence. As of May 14, 2020. Price on 5/14/20 - $12.53 4.006.008.0010.0012.0014.0016.0018.0020.00255075100125150175200Price ($)Volume (shares 000's)VolumePrice
Slide 35: Questions & Answers
35 LS Bancorp JPG.pngQUESTIONS & ANSWERS
Slide 36: Appendix: Lake Shore Peer Data
36 LS Bancorp JPG.pngAppendix: Lake Shore Peer Data Source: S&P Global Market Intelligence as of the most recent reported quarter. MHCs located in the Mid-Atlantic and Northeast Regions. Excludes merger targets. Institution Name Ticker City, State Total Assets ($mm)Columbia Financial, Inc. (MHC)CLBK
Slide 37: Lake Shore, MHC Annual Meeting of Members
37 LS Bancorp JPG.pngLake Shore, MHC Annual Meeting of Members Call to Order Introduction of Proposal to Elect Directors Tabulation of Votes Adjournment