Lake Shore Bancorp, Inc. · NASDAQ:LSBK
Lake Shore Bancorp — Shareholder Meeting (May 2016)
41 slides from Lake Shore Bancorp's shareholder meeting presentation, May 18, 2016
Slide 1: Annual Meeting of Shareholders May 18, 2016
Annual Meeting of Shareholders May 18, 2016 1 LSS Bancorp logo.epsLake Shore Bancorp, Inc. Copyright 2016
Slide 2: Welcoming Remarks
Welcoming Remarks Gary W. Winger Chairman of the Board 2 Lake Shore Bancorp, Inc. Copyright 2016
Slide 3: Agenda
Agenda .Call 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 3 Lake Shore Bancorp, Inc. Copyright 2016
Slide 4: Board of Directors
Board of Directors 4 Lake Shore Bancorp, Inc. Copyright 2016 Director Since Susan C. Ballard 2012 Tracy S. Bennett 2010 Sharon E. Brautigam, Nominating and Corporate Governance Committee Chairperson 2004 Reginald S. Corsi 2008 David C. Mancuso, Asset/Liability Committee Chairman 1998 Daniel P. Reini
Slide 5: Business of Annual Shareholders Meeting
Business of Annual Shareholders Meeting 5 Lake Shore Bancorp, Inc. Copyright 2016 .Election of Three Directors: Tracy S. Bennett Sharon E. Brautigam Kevin M. Sanvidge .An advisory vote on executive compensation (“Say-on-Pay”) .Ratification of the appointment of Baker Tilly Virchow Krause, LLP as ind
Slide 6: Executive Management Presentation
Executive Management Presentation 6 Lake Shore Bancorp, Inc. Copyright 2016 Daniel P. Reininga President and Chief Executive Officer
Slide 7: Safe Harbor Statement
Safe Harbor Statement 7 Lake Shore Bancorp, Inc. 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 this statement f
Slide 8: Lake Shore Bancorp Inc. Stock Profile
Lake Shore Bancorp Inc. Stock Profile 8 Lake Shore Bancorp, Inc. Copyright 2016 Market Data (as of May 11, 2016) – (Source - NASDAQ) .Ticker Symbol LSBK .52 – week Range $13.00 - $15.85 .Current Price $13.60 .Market Capitalization $32.7 million - minority shares only .Minority Shares Outst . 2.4 mil
Slide 9: Lake Shore Savings Fast Facts
Lake Shore Savings Fast Facts 9 Lake Shore Bancorp, Inc. Copyright 2016 .Lake Shore Savings has been in business for over 125 years. .As of March 31, 2016 •Total Assets $474.3 million •Total Deposits $371.2 million •Total Loans Receivable, net $301.7 million .11 branch locations throughout Chautauqu
Slide 10: Loan Originations
Loan Originations New Loans 2015 2014 ($’s in millions) Residential Mortgage - New & Modified $ 21.37 $15.98 Commercial Mortgage - New & Modified 27.55 19.13 Commercial Loans 11.69 7.64 Home Equity Loans 6.40 6.08 Consumer Loans 0.33 0.38 Total New Loans $ 67.34 $49.21 36.8% YOY Increase 10 Lake Sho
Slide 11: Commercial Lending
Commercial Lending .Commercial Division Activities in 2015 .Growth of the Commercial Lending Portfolio .$39.24 Million in New Originations 46.6% YOY Increase .$104.3 Million of Commercial Portfolio Outstanding at year-end, 27.6% YOY increase (includes construction loans) .The Right Kind of Interest.
Slide 12: 2015 Deposits
2015 Deposits 12 Lake Shore Bancorp, Inc. Copyright 2016 .2.82% Growth in Core Deposits (includes all deposits except time deposits) .12.9% Decrease in Time Deposits .Lower Average Rate Paid on Deposits – 15 basis points decrease •For the year ended 2015 – 0.68% •For the year ended 2014 – 0.83% .Yea
Slide 13: Deposit Mix
Deposit Mix (as of December 31st) 13 Lake Shore Bancorp, Inc. Copyright 2016 57.04% 42.96% 2015 Deposit Mix Core Deposits Time Deposits 42.10% 57.90% 2011 Deposit Mix Core Deposits Time Deposits
Slide 14: Operational and Strategic Review
Operational and Strategic Review 14 Lake Shore Bancorp, Inc. Copyright 2016 Solid and Sustainable Value Proposition - The CornerStone of our Community
Slide 15: Balance Sheet Growth and Risk Management
Balance Sheet Growth and Risk Management 15 Lake Shore Bancorp, Inc. Copyright 2016 .Accomplished, experienced management team with extensive banking knowledge and a great understanding of our service areas .Long range strategic effort to diversify our loan portfolio in a way that increases earnings
Slide 16: Creating Shareholder Value
Creating Shareholder Value 16 Lake Shore Bancorp, Inc. Copyright 2016 .High Capital Ratios enable organic growth without diluting shareholder value .Consistent dividend payment history .Stock buyback program in place .Meeting expectations of our shareholders
Slide 17: Operating Profile
Operating Profile 17 Lake Shore Bancorp, Inc. Copyright 2016 .Corporate Wide Commitment to an Efficient Operating Profile .Efficiently managing operating expenses while growing bank income .Continually outperform our peer group in many categories .Commitment to effective management of Interest Rate
Slide 18: Community Banking Strategy
Community Banking Strategy 18 Lake Shore Bancorp, Inc. Copyright 2016 .Effectively and efficiently meeting the needs of our customers .Strong Customer Value Proposition differentiating Lake Shore Savings from its toughest competitors .Personalized Friendly Service .Building Individual Customer Relat
Slide 19: Financial Presentation
Rachel Foley Chief Financial Officer Lake Shore Bancorp, Inc. Copyright 2016 Lake Shore Bancorp, Inc. Financial Presentation 19
Slide 20: Total Assets
Total Assets ($ in millions) 20 Lake Shore Bancorp, Inc. Copyright 2016 $488.6 $482.4 $482.2 $487.5 $473.4 $474.3 $400.0 $425.0 $450.0 $475.0 $500.0 $525.0 2011 2012 2013 2014 2015 1Q2016
Slide 21: Loans, net
Loans, net ($ in millions) 21 Lake Shore Bancorp, Inc. Copyright 2016 $275.1 $272.9 $277.3 $284.9 $297.1 $301.7 $200.0 $225.0 $250.0 $275.0 $300.0 $325.0 $350.0 2011 2012 2013 2014 2015 1Q2016 CAGR 2.65%
Slide 22: Loan Composition
Loan Composition (as of December 31st) 22 Lake Shore Bancorp, Inc. Copyright 2016 2011 2015 Commercial real estate and commercial loans have increased by 72.8% since 2011, while one-to four-family loans have decreased by 14.0%. One-to-four family 66.8% Commercial real estate 16.4% Construction loans
Slide 23: Non-performing Loans as a Percentage of Loans
on-performing Loans as a Percentage of Loans (as of December 31st) 23 Lake Shore Bancorp, Inc. Copyright 2016 3.67% 3.32% 2.44% 2.04% 1.76% 1.02% 0.89% 1.66% 1.66% 1.57% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 2011 2012 2013 2014 2015 National Average* Lake Shore *Average of all saving
Slide 24: Loan Loss Reserves as a Percentage of Loans
Loan Loss Reserves as a Percentage of Loans (as of December 31st ) 24 Lake Shore Bancorp, Inc. Copyright 2016 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 2011 2012 2013 2014 2015 0.50% 0.66% 0.65% 0.67% 0.67%
Slide 25: Total Deposits
Total Deposits ($ in millions) 25 Lake Shore Bancorp, Inc. Copyright 2016 $379.8 $378.5 $388.2 $386.9 $369.2 $371.2 $200.0 $250.0 $300.0 $350.0 $400.0 $450.0 2011 2012 2013 2014 2015 1Q2016
Slide 26: Net Interest Income
Net Interest Income ($ in millions, as of December 31st) 26 Lake Shore Bancorp, Inc. Copyright 2016 $15.1 $15.0 $15.1 $14.5 $14.8 $10.0 $12.5 $15.0 $17.5 $20.0 2011 2012 2013 2014 2015
Slide 27: Treasury Yield
Treasury Yield 27 Lake Shore Bancorp, Inc. Copyright 2016 0.01 0.03 0.09 0.25 0.61 1.00 1.58 2.00 2.28 2.75 3.02 0.25 0.24 0.36 0.52 0.72 0.88 1.20 1.52 1.77 2.18 2.61 -1 0 1 2 3 4 1 mo3 mo6 mo1 yr2 yr3 yr5 yr7 yr10 yr20 yr30 yrPercentage Treasury Maturities 5/12/2015 5/10/2016
Slide 28: Net Income
Net Income ($ in millions, as of December 31st) 28 Lake Shore Bancorp, Inc. Copyright 2016 $- $1.0 $2.0 $3.0 $4.0 2011 2012 2013 2014 2015 $3.7 $3.6 $3.7 $3.2 $3.3
Slide 29: Efficiency Ratio
Efficiency Ratio (as of December 31st) 29 Lake Shore Bancorp, Inc. Copyright 2016 73.38% 86.51% 77.75% 80.08% 78.50% 67.32% 69.16% 71.92% 76.46% 74.60% 60.00% 65.00% 70.00% 75.00% 80.00% 85.00% 90.00% 2011 2012 2013 2014 2015 National Average* Lake Shore * Includes Savings Institutions between $300
Slide 30: Capital Levels – Bank Only
Capital Levels – Bank Only (as of December 31st) 30 Lake Shore Bancorp, Inc. Copyright 2016 2015 2014 Well-Capitalized (Regulatory Definition)* Total capital (to risk-weighted assets) 24.93% 25.71% >10.0% Tier 1 capital (to adjusted total assets) 24.21% 24.95% >8.0% Common Equity Tier 1 capital (to
Slide 31: 1st Quarter 2016 Balances vs. 2015 Year End Balances
1st Quarter 2016 Balances vs. 2015 Year End Balances 31 Lake Shore Bancorp, Inc. Copyright 2016 .Total Assets of $474.3 million .Sold $14.4 million of Treasury Bonds .$12.0 million increase in Cash & Cash Equivalents .$15.6 million decrease in Investments .Loans, net increased $4.6 million .Total De
Slide 32: 1st Quarter 2016 vs. 1st Quarter 2015 Results
1st Quarter 2016 vs. 1st Quarter 2015 Results 32 Lake Shore Bancorp, Inc. Copyright 2016 .2016 1st Quarter Net Income .$1.95 million - a $1.39 million increase .Impacted by $1.1 million after tax gain on sale of securities .$874,000 - without gain on sale of securities, a 53.6% YOY increase Other Co
Slide 33: LSBK Closing Stock Price
LSBK Closing Stock Price December 31, 2011 thru May 10, 2016 33 Lake Shore Bancorp, Inc. Copyright 2016 Source: Nasdaq.com $9.55 $10.00 $10.27 $10.40 $10.29 $11.09 $11.70 $11.42 $12.20 $12.39 $12.45 $12.60 $13.56 $13.75 13.43 $13.50 $13.40 $13.29 $13.95 $8 $9 $10 $11 $12 $13 $14 $15 12/1/20116/1/201
Slide 34: 2016 Activities
2016 Activities Celebrating 125 Years of Service in 2016 34 Lake Shore Bancorp, Inc. Copyright 2016 Daniel P. Reininga President and Chief Executive Officer
Slide 35: New Checking Accounts & Mobile App
Celebrating 125 Years of Service in 2016 35 Lake Shore Bancorp, Inc. Copyright 2016 New Checking Accounts & Mobile App .Checking accounts enhanced with “proximity couponing” technology and additional lifestyle savings benefits
Slide 36: 125th Anniversary Product Promotions
Celebrating 125 Years of Service in 2016 36 Lake Shore Bancorp, Inc. Copyright 2016 125th Anniversary Product Promotions
Slide 37: 125th Anniversary Product Promotions
Celebrating 125 Years of Service in 2016 37 Lake Shore Bancorp, Inc. Copyright 2016 125th Anniversary Product Promotions •Anniversary Money Market oHigh-yield product to attract new customers •Earn Bonus for Switching to Lake Shore Savings oAcquire new core deposit relationships
Slide 38: 125th Anniversary Events & Activities
Celebrating 125 Years of Service in 2016 38 Lake Shore Bancorp, Inc. Copyright 2016 125th Anniversary Events & Activities oSeptember 10th - Cortese Live Radio Show and “Celebration Day” at each branch location oSweepstakes - win trip for 4 to Disney World oVarious local sponsorships throughout the y
Slide 39: Summary
Summary 39 Lake Shore Bancorp, Inc. Copyright 2016 Putting People First is not simply our Bank’s Mission Statement, it is a fundamental belief shared by all of our Lake Shore Savings Bank Associates!
Slide 40: Conclusion
Conclusion 40 Lake Shore Bancorp, Inc. Copyright 2016 Questions? Thank you for your continued confidence in Lake Shore Bancorp, Inc.!
Slide 41: Lake Shore, MHC Annual Meeting of Members
Lake Shore, MHC Annual Meeting of Members 41 Lake Shore Bancorp, Inc. Copyright 2016 •Call to Order • Introduction of Proposal to Elect Directors •Tabulation of Votes •Adjournment