Lake Shore Bancorp, Inc. · NASDAQ:LSBK
Lake Shore Bancorp — Shareholder Meeting (May 2022)
41 slides from Lake Shore Bancorp's shareholder meeting presentation, May 18, 2022
Slide 1: Annual Shareholders' Meeting May 18, 2022
Lake Shore Savings Bank Putting People First ANNUAL SHAREHOLDERS’ MEETING May 18, 2022
Slide 2: Safe Harbor Statement
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, and
Slide 3: Agenda
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•AdjournmentA person in a suit smiling
Slide 4: Board of Directors
LAKE SHORE BANCORP, INC.Board of DirectorsDirectorSinceTracy S. Bennett2010Sharon E. Brautigam, Vice Chairperson of the Board, Nominating and Governance Committee Chairperson2004Michelle M. DeBergalis2022John P. McGrath, Asset and Liability Management Committee Chairman2019John (“Jack”) L. Mehltrett
Slide 5: Senior Management Team
LAKE SHORE BANCORP, INC.Senior Management Team Employee Since Susan C. Ballard, EVP Retail, Sales and Marketing 2020 Janinne Fiegl Dugan, VP Human Resource Officer 1993 Rachel A. Foley, Chief Financial Officer and Treasurer 1999 Nicole May, Compliance and CRA Officer 1996 Sonia N. Ortolano, VP Infor
Slide 6: Business of Annual Shareholders Meeting
LAKE SHORE BANCORP, INC.Business of Annual Shareholders Meeting1.Election of Directors:Elect three Class Two directors to serve until the 2025 annual meeting and one Class Three director to serve until the 2023 annual meeting. Catharine M. Young resigned from the Board of Directors, effective May 12
Slide 7: Business of Annual Shareholders Meeting, cont.
LAKE SHORE BANCORP, INC.Business of Annual Shareholders Meeting, cont.2.Say on Pay Proposal:A non-binding “say on pay” proposal to approve the compensation of our named executive officers.3.Appointment of Independent Registered Public Accounting Firm:Ratify the appointment of Baker Tilly US, LLP as
Slide 8: Executive Management Presentation
LAKE SHORE BANCORP, INC.Executive Management PresentationDaniel P. Reininga, President and Chief Executive OfficerA person in a suit and tie
Slide 9: An Overview of Lake Shore
LAKE SHORE BANCORP, INC.An Overview of Lake Shore Source: S&P Global Market Intelligence. Deposit information as of June 30, 2021, updated for any pending acquisitions.New York Franchise demographic information weighted by deposits by county.•Lake Shore Savings Bank is a federally chartered, communi
Slide 10: Positioned for Growth - Financial Highlights
LAKE SHORE BANCORP, INC.Positioned for Growth-Financial HighlightsFinancial data is presented for Lake Shore’s at or for the Fiscal Year Ended December 31 for each respective year or at or for Lake Shore’s quarter ended March 31 for each respective quarter.*Dividend Yield as of December 31st for eac
Slide 11: Financial Highlights, cont.
LAKE SHORE BANCORP, INC.Financial Highlights, cont.Ownership information based on Proxy Statement and S&P Global, Inc. as of 3/31/2022. Market Information and Dividends as of 4/29/2022.*Includes 3.12% of the shares of common stock outstanding owned by the ESOP.** Price/Fully Converted Tangible BookT
Slide 12: Envisioning a Bright Banking Future
LAKE SHORE BANCORP, INC.Envisioning a Bright Banking Future•Commercial Business Overview•Retail Business Overview•Core Conversion•Security Enhancements
Slide 13: Commercial Business Overview
LAKE SHORE BANCORP, INC.Envisioning a Bright Banking FutureCommercial Business Overview:Outstanding Success of the Commercial Team:•Helping our Commercial Customers navigate through difficult times•Paycheck Protection Program –Round 2•Originated $11.4 million in 2021 for borrowers in our local marke
Slide 14: Retail Business Overview
LAKE SHORE BANCORP, INC.Envisioning a Bright Banking FutureRetail Business Overview•Record breaking year in Loan volume•Total Residential Loan Refinances -$23.7 million•Total Residential Loan Purchases -$26.4 million•Total Home Equity Loan Originations -$20.5 million
Slide 15: Positioned for Growth - Deposits
LAKE SHORE BANCORP, INC.Positioned for Growth -Deposits•Our focus has been on reducing our cost of funds by concentrating our efforts on growing core deposits (which include checking, savings and money market accounts and exclude time deposits).•Core Deposits increased 135.6% since December 31, 2013
Slide 16: Core Conversion and Security Enhancements
LAKE SHORE BANCORP, INC.Envisioning a Bright Banking FutureCore Conversion and Security Enhancements•Smooth Transition•Efficiencies•Enhanced Banking Features as we continue to meet the digital banking needs of our customers•Transition to enhanced security profile in the second quarter of 2022
Slide 17: Putting People First
LAKE SHORE BANCORP, INC.Putting People First A picture containing person, personTwo men shaking handsA picture containing person, personA group of people standing in front of a buildingA group of people posing for a photo
Slide 18: Creating Shareholder Value
LAKE SHORE BANCORP, INC.Creating Shareholder Value•High capital ratios enable organic growth without diluting shareholder value•Balanced approach to dividends and buybacks•Elected the Community Bank Leverage Ratio effective January 1, 2020Financial data is presented at or for Lake Shore’s Fiscal Yea
Slide 19: Tangible Book Value per Share
LAKE SHORE BANCORP, INC.Creating Shareholder ValueTangible Book Value per ShareSource: S&P GlobalTangible Book Value per Share is presented at December 31 for each respective year and at March 31, 2022. The tangible book value per share is the same as book value per share for each period presented.*
Slide 20: Treasury Stock Buybacks Trends
LAKE SHORE BANCORP, INC.Creating Shareholder ValueTreasury Stock Buybacks TrendsTreasury Stock data is presented for Lake Shore’s Fiscal Year Ended December 31 for each respective year. Treasury Stock Purchases $’s in Thousands $2,500 $2,000 $1,500 $1,000 $500 $ 2017 FY 2018 FY 2019 FY 2020 FY 2021
Slide 21: Celebrating Years: Administration Building Named in Honor
LAKE SHORE BANCORP, INC.Celebrating 30 YearsMichael E. BruneczAdministration Building Named in Honor of Former Chairman of the BoardServed from 1993 until 2013
Slide 22: 2022 Board Member Changes: New Board Member
LAKE SHORE BANCORP, INC.2022 Board Member ChangesMichelle M. DeBergalis –New Board Member•President and CEO of American Realty Group, Inc.•Formerly held position of Chief Operating Officer at McGuire Development Company, LLC•Business First List of Power 125A person with blonde hair
Slide 23: Retirement of Nancy L. Yocum, Director
LAKE SHORE BANCORP, INC.2022 Board Member ChangesRetirement of Nancy L. Yocum, DirectorIn May 2022 Mrs. Yocum will retire, after more than 27 years of service to the Company.She has served as Chairperson of the Audit/Risk Committee for the majority of her time with theCompany and had also served as
Slide 24: Corporate Governance
LAKE SHORE BANCORP, INC.Corporate Governance•The Board of Directors and Management remain focused on governance over the Company.•We expect the new core system efficiencies will lay the foundation for the growth of the organization.
Slide 25: Summary
Lake Shore Bancorp, Inc. Summary After 131 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 adopt n
Slide 26: Financial Highlights
LAKE SHORE BANCORP, INC.Financial HighlightsRachel A. Foley,Chief Financial Officer and Treasurer
Slide 27: Total Assets
LAKE SHORE BANCORP, INC.Total AssetsSteady growth –12.3% in 2020; 4.01%in 2021; exceeded $700M in 2021.Financial data is presented at December 31 for each respective year and at March 31, 2022.$482.2M$487.5M$473.4M$489.2M$519.0M$545.7M$610.9M$686.2M$713.7M$707.5M$0$100,000$200,000$300,000$400,000$50
Slide 28: Positioned for Growth - Loan Portfolio
LAKE SHORE BANCORP, INC.Positioned for Growth –Loan Portfolio•Lake Shore continues to execute its strategic plan of organic growth primarily through loan originations. •From December 31, 2013 through March 31, 2022, net loans increased 98.4% primarily due to net organic commercial loan growth of 374
Slide 29: Loan Originations
LAKE SHORE BANCORP, INC.Loan OriginationsDollars in millions2.2% Increase for the Year ended December 31, 2021, excluding PPP Loans Loan Origination data is presented for Lake Shore’s Fiscal Year Ended December 31 for each respective year and for the three months ended March 31, 2022.New Loans201520
Slide 30: NPLs/Total Net Loans
LAKE SHORE BANCORP, INC.NPLs/Total Net LoansFinancial data is presented at Lake Shore’s Fiscal Year Ended December 31 for each respective year and at March 31, 2022. Peer data groups are detailed on slide 40.* Not all peer banks reported this data for first quarter 2022 period.1.66%1.66%1.57%1.80%1.
Slide 31: Loan Loss Reserves/Total Net Loans
LAKE SHORE BANCORP, INC.Loan Loss Reserves/Total Net LoansFinancial data is presented at or for Lake Shore’s Fiscal Year Ended December 31 for each respective year and at or for the three months ended March 31, 2022.* 2020 Loan Loss Reserves reflected a $425,000 increase in provision for loan losses
Slide 32: Change in Deposit Mix
LAKE SHORE BANCORP, INC.Change in Deposit Mix27.97%13.58%20.32%38.13%Transaction Accounts Savings Accounts Money Market Accounts Time Deposits34.69%12.50%29.65%23.16%Transaction Accounts Savings Accounts Money Market Accounts Time Deposits
Slide 33: Net Interest Margin
LAKE SHORE BANCORP, INC.Net Interest MarginFinancial data is presented at or for Lake Shore’s Fiscal Year Ended December 31 for each respective year and at or for the three months ended March 31, 2022. Peer data group is detailed on slide 40.•Received $202,000 in interest related to the pay-off of o
Slide 34: Net Income Trends
LAKE SHORE BANCORP, INC.Net Income TrendsDollars in thousands, except per share amounts•Growth in Adjustable Rate Loans and Core Deposits, along with PPP Loan Fees improved marginsFinancial data is presented at or for Lake Shore’s Fiscal Year Ended December 31 for each respective year and at or for
Slide 35: Return on Average Assets
LAKE SHORE BANCORP, INC.Return on Average AssetsFinancial data is presented at or for Lake Shore’s Fiscal Year Ended December 31 for each respective year and at or for the three months ended March 31, 2022. Peer data group is detailed on slide 40.•During the fiscal year ended December 31, 2016, Lake
Slide 36: Continued Focus on Cost Control
LAKE SHORE BANCORP, INC.Continued Focus on Cost ControlFinancial data is presented at or for Lake Shore’s Fiscal Year Ended December 31 for each respective year and at or for the three months ended March 31, 2022. Peer data group is detailed on slide 40.** Not all peer banks reported this data for t
Slide 37: LSBK Price/Volume Chart since IPO
LAKE SHORE BANCORP, INC.LSBK Price/Volume Chart since IPO4.006.008.0010.0012.0014.0016.0018.0020.00255075100125150175200Price ($)Volume (shares 000's)VolumePriceLAKE SHORE BANCORP, INC.
Slide 38: Questions and Answers
LAKE SHORE BANCORP, INC.Questions and Answers
Slide 39: Vote Report: Adjournment of Annual Shareholders' Meeting
LAKE SHORE BANCORP, INC.Vote ReportAdjournment of Annual Shareholders’ Meeting
Slide 40: Appendix: Lake Shore Peer Data
LAKE SHORE BANCORP, INC.Appendix: Lake Shore Peer Data* Financial institution is in the process of completing a second step conversion. Institution Name Ticker City, State Total Assets ($mm)Columbia Financial, Inc. (MHC)CLBKFair Lawn, NJ$9,237Greene County Bancorp, Inc. (MHC)GCBCCatskill, NY$2,522Pi
Slide 41: Lake Shore, MHC Annual Meeting of Members
LAKE SHORE BANCORP, INC.Lake Shore, MHCAnnual Meeting of MembersCall to OrderIntroduction of Proposal to Elect DirectorsTabulation of VotesAdjournment