Lake Shore Bancorp, Inc. · NASDAQ:LSBK
Lake Shore Bancorp — Shareholder Meeting (May 2023)
22 slides from Lake Shore Bancorp's shareholder meeting presentation, May 17, 2023
Slide 1: Annual Shareholders' Meeting May 17, 2023
LS ® Lake Shore Savings Putting People First ANNUAL SHAREHOLDERS’ MEETING MAY 17, 2023
Slide 2: Safe Harbor Statement
LS® LAKE SHORE BANCORP, INC. Safe Harbor Statement This presentation contains certain forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on current expectations, estimates and projections about the Company’s and the Bank’s industry, a
Slide 3: Agenda
LS® LAKE SHORE BANCORP, INC. Agenda Call to Order – Kevin M. Sanvidge, Chairman Introduction of Officers, Directors and Director Nominees Secretary’s Report Presentation of Proposals Executive Management Report to Shareholders Vote Report Adjournment 3
Slide 4: Board of Directors
LS® LAKE SHORE BANCORP, INC. Board of Directors Director Since Tracy S. Bennett, Audit Committee Chairperson 2010 Sharon E. Brautigam, Vice Chairperson of the Board, Nominating and Governance Committee Chairperson 2004 Michelle M. DeBergalis, Nominating and Governance Committee member 2022 Kim C. Li
Slide 5: Bank Officers
LS® LAKE SHORE BANCORP, INC. Bank Officers Hired Hired Kim Liddell, President and Chief Executive Officer 2023 Rachel Sanchioni, VP, Comm. Loan Officer 2022 Rachel Foley, Chief Financial Officer/Treasurer and Principal Financial/Accounting Officer 1999 Adam Dimitri, VP, Retail Banking 2006 Benjamin
Slide 6: Business of Annual Shareholders Meeting
LS® LAKE SHORE BANCORP, INC. Business of Annual Shareholders Meeting Election of Directors: Elect two Class Three directors to serve until the 2026 annual meeting: Class Three Directors Michelle M. DeBergalis John (“Jack”) L. Mehltretter 6
Slide 7: Business of Annual Shareholders Meeting (Continued)
LS® LAKE SHORE BANCORP, INC. Business of Annual Shareholders Meeting (Continued) Say on Pay Proposal: A non-binding “say on pay” proposal to approve the compensation of the named executive officers. Appointment of Independent Registered Public Accounting Firm: Ratify the appointment of Baker Tilly U
Slide 8: Executive Management Presentation
LS® LAKE SHORE BANCORP, INC. Executive Management Presentation Kim C. Liddell, President and Chief Executive Officer 8
Slide 9: An Overview of Lake Shore Savings
LS® LAKE SHORE BANCORP, INC. An Overview of Lake Shore Savings Projected Median Projected Company Deposit Population HH HH Income Deposits Market Change Income Change in Market Share 2023-2028 2023 2023-2028 County Rank Branches ($000) (%) m ($) (%) Chautauqua 5 5 317,831 14.93 (224) 56,393 15.21 Er
Slide 10: An Overview of Lake Shore Savings (Continued)
LS® LAKE SHORE BANCORP, INC. An Overview of Lake Shore Savings (Continued) Stockholder Informal 1 Ownership Mutual Holding Company 63.9% Institutional 7.9% Insider* 7.9% (NASDAQ: LSBK) Market Information as of 5/15/23 Total Market Cap (mm) $65.0 Minority Market Cap (mm) $23.5 Book Value Per Share *'
Slide 11: Financial Highlights
LS® LAKE SHORE BANCORP, INC. Financial Highlights Dollars in Thousands (except per share anxrunts) 2023 FQ1 2022 FQ1 QoQ Change Assets $730,315 $707,452 3.2% Net Loans $574,408 $550,286 4.4% Deposits $595,207 $592,820 0.4% Net Income $1,684 $1,061 58.7% Basic Earnings Per Share $0.29 $0.18 61.1% Boo
Slide 12: Total Assets, Net Income, Loan Portfolio and Deposit Trends
LS® LAKE SHORE BANCORP, INC. Total Assets $545.7M $610.9M $686.2M $713.7M $699.9M $730.3M 2018 2019 2020 2021 2022 Q1 2023 Loans Receivable, Net Bank Owned Life Insurance Securities - AFS Premises and Equipment. Net Cash and Cash Equivalents ■ FHLB Stock Net Income $4,000 $4,087 $4,558 $6,187 $5,708
Slide 13: Loan Loss Reserves and NPAs
LS® LAKE SHORE BANCORP, INC. Loan Loss Reserves / Total Net Loans 0.88% 0.91% 1.12% 1.18% 1.23% 1.17% 2018 2019 2020 2021 2022 Q1 2023 NPAs / Total Assets 0.71% 0.71% 0.46% 1.37% 0.43% 0.39% 2018 2019 2020 2021 2022 Q1 2023 Financial data is presented for Lake Shore’s Fiscal Year Ended December 31 f
Slide 14: Loan Portfolio – Office Concentration
LS® LAKE SHORE BANCORP, INC. Loan Portfolio – Office Concentration Total Loan Portfolio as of 3/31/2023 Commercial 3% Consumer 0% One- to four-family 31% Home Equity 9% Commercial Real Estate 57% ■ One- to four-family ■ Home Equity ■ Commercial Real Estate ■ Commercial ■ Consumer Office Real Estate
Slide 15: Change in Deposit Mix
LS® LAKE SHORE BANCORP, INC. Change in Deposit Mix Change in Deposit Mix Time Deposits Savings Accounts Money Markets Demand and NOW Non-interest bearing 3/31/2022 12/31/2022 3/31/2023 Total Deposits as of March 31, 2023 16.2% 13.6% 23.1% 12.7% 34.5% ■ Non-interest bearing ■ Demand and NOW ■ Money M
Slide 16: Uninsured Deposits
LS® LAKE SHORE BANCORP, INC. Uninsured Deposits Uninsured Deposits as of 3/31/2023 $84,679,361 Uninsured Deposits make up 14.4% of overall deposits. Uninsured Deposits consists of 284 accounts $595,207,120 Total Deposits Uninsured Depostis 16
Slide 17: Net Interest Margin, ROAA and Efficiency Ratio vs Peers
LS® LAKE SHORE BANCORP, INC. Net Interest Margin 3.61% 3.59% 3.58% 3.51% 3.23% 3.26% 3.35% 3.03% 3.77% 3.23% 3.76% 2.66% 2018Y 2019Y 2020Y 2021Y 2022Y Q1 2023 LSBK Net Interest Margin Peer Median Net Interest Margin Return on Average Assets 0.75% 0.71% 0.69% 0.88% 0.82% 0.94% 0.55% 0.54% 0.55% 0.92%
Slide 18: Since IPO Creating Shareholder Value
LS® LAKE SHORE BANCORP, INC. Since IPO Creating Shareholder Value High capital ratios enable organic growth without diluting shareholder value Elected the Community Bank Leverage Ratio effective January 1, 2020 2018 2019 2020 2021 2022 3/31/2023 Tier 1/Community Bank Leverage Ratio 14.0% 13.0% 11.8%
Slide 19: Summary
LS® LAKE SHORE BANCORP, INC. Summary After 132 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 adop
Slide 20: Questions and Answers
LS® LAKE SHORE BANCORP, INC. QUESTIONS AND ANSWERS 20
Slide 21: Vote Report; Adjournment of Annual Shareholders' Meeting
LS® LAKE SHORE BANCORP, INC. Vote Report Adjournment of Annual Shareholder’ Meeting 21
Slide 22: Appendix: Lake Shore Savings Peer Data
LS® LAKE SHORE BANCORP, INC. Appendix: Lake Shore Savings Peer Data Institution Name Ticker Columbia Financial, Inc. (MHC) CLBK Greene County Bancorp. Inc. (MHC) GCBC PioneerBancorp. Inc. (MHC) PB FS Rhine beck Bancorp. Inc. (MHC) RBKB Bogota Financial Corp. (MHC) BSBK BV Financial, Inc. (MHC) BVFL