Lake Shore Bancorp, Inc. · NASDAQ:LSBK
Lake Shore Bancorp — Shareholder Meeting (May 2007)
21 slides from Lake Shore Bancorp's shareholder meeting presentation, May 23, 2007
Slide 1: Annual Meeting of Shareholders
Annual Meeting of Shareholders May 23, 2007 Exhibit 99.1
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation includes "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements concerning future business, revenue and earnings. These statements are not historical
Slide 3: Lake Shore Bancorp Inc. Corporate Profile
Lake Shore Bancorp Inc. Corporate Profile Market Data (as of May 18, 2007) Ticker Symbol LSBK 52 – week Range $9.92 - $14.50 Current Price $12.35 Market Capitalization $81.7 million Shares Outstanding 6,612,500 50 Day Avg. Trading Vol. 5,275 Dividend Yield 0.98% Ownership – Insider 57.32% – Individu
Slide 4: Our Mission
Our Mission Our mission is to be a high quality, well respected financial institution in the markets that we serve. We will continue to serve the financial needs of the communities in our market area by providing various residential lending products. We will continue to expand our commercial lending
Slide 5: Challenges
Challenges Interest rate environment Yield curve flat/inverted Higher deposit cost due to higher short-term rates Maintaining our current lending level as the real estate market tries to recover from lagging sales and declining housing values Brand awareness for our new branches
Slide 6: Treasury Yield Curve
Treasury Yield Curve - 1.00 2.00 3.00 4.00 5.00 6.00 7.00 1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr Treasury Maturities 5/8/2007 1/2/2002
Slide 7: Opportunities
Opportunities Growth by new bank expansion into Erie County Increase market share in Erie County Grow small business and commercial loans Earnings enhancement study – to improve fee structure
Slide 8: Strengths
Strengths Lake Shore Savings has a great story, Established 1891 Community based bank with a strong history of success Above peer deposit growth over the last 10 years High quality loan portfolio – with no subprime loans Our employees – we have long-term employees with significant banking experience
Slide 9: Goals
Goals Continue to look for opportunities to grow the bank, either by new start-ups or by acquisitions that complement our banking style Recruit talented employees Reduce our efficiency ratio Continue to work to improve earnings Enhance shareholder value
Slide 10: Financial Presentation
• Financial Presentation – Rachel Foley, CFO
Slide 11: Total Assets
Total Assets ($ in millions) $238.1 $303.5 $329.8 $333.7 $354.2 $352.0 $200.0 $250.0 $300.0 $350.0 $400.0 2002 2003 2004 2005 2006 Q1 2007
Slide 12: Total Deposits
Total Deposits ($ in millions) $195.1 $230.5 $243.6 $250.9 $249.6 $248.8 $- $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 2002 2003 2004 2005 2006 Q1 2007
Slide 13: Loans, net
Loans, net ($ in millions) $156.7 $187.1 $199.5 $206.2 $205.7 $206.1 $100.0 $150.0 $200.0 $250.0 2002 2003 2004 2005 2006 Q1 2007
Slide 14: Loan Composition
Loan Composition (as of December 31, 2006) Home equity 12.60% Consumer loans 1.31% One-to-four family 72.72% Commercial loans 4.26% Construction loans 0.77% Commercial real estate 8.34%
Slide 15: Deposit Composition
Deposit Composition (as of December 31, 2006) Time Deposits > $100,000 12.37% Noninterest- Bearing Demand 6.99% Interest- Bearing Demand 15.62% Money Market Accts 9.83% Savings 10.38% Time Deposits < $100,000 44.80%
Slide 16: Non-performing Loans as a percentage of Gross Loans
Non-performing Loans as a percentage of Gross Loans 0.90% 0.56% 0.40% 0.66% 0.64% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 2002 2003 2004 2005 2006
Slide 17: Loan Loss Reserves as a percentage of Loans
Loan Loss Reserves as a percentage of Loans 0.78% 0.69% 0.65% 0.60% 0.61% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 2002 2003 2004 2005 2006
Slide 18: Net Income
Net Income ($ in millions) $2.2 $1.5 $2.2 $2.1 $1.8 $- $0.5 $1.0 $1.5 $2.0 $2.5 2002 2003 2004 2005 2006
Slide 19: Return on Average Assets
Return on Average Assets (in percentages) 1.00% 0.58% 0.68% 0.62% 0.52% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 2002 2003 2004 2005 2006
Slide 20: Interest Rate Margin & Spread
Interest Rate Margin & Spread (in percentages) 3.95 3.32 3.15 3.09 3.00 3.68 3.18 3.03 2.93 2.60 0.00 1.00 2.00 3.00 4.00 5.00 2002 2003 2004 2005 2006 Net Interest Margin Interest Rate Spread
Slide 21: Net Interest Income
Net Interest Income ($ in millions) $8.2 $8.1 $9.4 $9.5 $9.7 $7.0 $7.5 $8.0 $8.5 $9.0 $9.5 $10.0 2002 2003 2004 2005 2006