NasdaqGM:LSBK

Stock Analysis Report

Executive Summary

Lake Shore Bancorp, Inc. operates as the savings and loan holding company for Lake Shore Savings Bank that provides retail and commercial banking products and services.

Snowflake

Fundamentals

Flawless balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

How has Lake Shore Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.7%

LSBK

2.1%

US Mortgage

2.3%

US Market


1 Year Return

-6.8%

LSBK

12.0%

US Mortgage

5.6%

US Market

Return vs Industry: LSBK underperformed the US Mortgage industry which returned 12% over the past year.

Return vs Market: LSBK underperformed the US Market which returned 5.6% over the past year.


Shareholder returns

LSBKIndustryMarket
7 Day0.7%2.1%2.3%
30 Day0.3%-0.4%-1.0%
90 Day0%3.0%-0.7%
1 Year-4.0%-6.8%14.4%12.0%7.9%5.6%
3 Year12.3%4.3%39.1%29.7%45.6%36.3%
5 Year33.2%18.7%70.4%52.4%65.8%47.6%

Price Volatility Vs. Market

How volatile is Lake Shore Bancorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Lake Shore Bancorp undervalued compared to its fair value and its price relative to the market?

24.09x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: LSBK ($15) is trading above our estimate of fair value ($3.99)

Significantly Undervalued: LSBK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LSBK is poor value based on its PE Ratio (24.1x) compared to the Mortgage industry average (14.6x).

PE vs Market: LSBK is poor value based on its PE Ratio (24.1x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate LSBK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LSBK is good value based on its PB Ratio (1.1x) compared to the US Mortgage industry average (1.1x).


Next Steps

Future Growth

How is Lake Shore Bancorp forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

12.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LSBK's forecast earnings growth (12.5% per year) is above the savings rate (2.7%).

Earnings vs Market: LSBK's earnings (12.5% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: LSBK's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if LSBK's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if LSBK's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if LSBK's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Lake Shore Bancorp performed over the past 5 years?

1.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: LSBK's earnings have grown by 1.7% per year over the past 5 years.

Accelerating Growth: LSBK's earnings growth over the past year (8.6%) exceeds its 5-year average (1.7% per year).

Earnings vs Industry: LSBK earnings growth over the past year (8.6%) underperformed the Mortgage industry 31.7%.


Return on Equity

High ROE: LSBK's Return on Equity (4.6%) is considered low.


Return on Assets

ROA vs Industry: LSBK's Return on Assets is below or equal to the Mortgage industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate LSBK's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Lake Shore Bancorp's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: LSBK has a low level of unsold assets or inventory.

Debt Coverage by Assets: LSBK's debt is not covered by short term assets (assets are 0.8x debt).


Financial Institutions Analysis

Asset Level: LSBK's level of assets compared to its equity is low.

Allowance for Bad Loans: LSBK has a sufficient allowance for bad loans.

Low Risk Liabilities: LSBK's liabilities are made up of primarily low risk sources of funding.

Loan Level: LSBK has an acceptable proportion of non-loan assets held.

Low Risk Deposits: LSBK's loans are broadly funded by customer deposits.

Level of Bad Loans: LSBK has an appropriate level of bad loans (0.76%)


Next Steps

Dividend

What is Lake Shore Bancorp's current dividend yield, its reliability and sustainability?

3.20%

Current Dividend Yield


Dividend Yield vs Market

company3.2%marketbottom25%1.5%markettop25%3.8%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: LSBK's dividend (3.2%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: LSBK's dividend (3.2%) is low compared to the top 25% of dividend payers in the US market (3.76%).

Stable Dividend: LSBK's dividend payments have been volatile in the past 10 years.

Growing Dividend: LSBK's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (73.9%), LSBK's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Lake Shore Bancorp's salary, the management and board of directors tenure and is there insider trading?

4.8yrs

Average management tenure


CEO

Dan Reininga (60yo)

8.8yrs

Tenure

US$470,023

Compensation

Mr. Daniel P. Reininga, also known as Dan, is the President and Chief Executive Officer of Lake Shore Bancorp, Inc. (MHC) and Lake Shore Savings Bank (MHC) in January 28, 2011. He serves as the Director at ...


CEO Compensation Analysis

Compensation vs. Market: Dan's total compensation ($USD470.02K) is about average for companies of similar size in the US market ($USD493.00K).

Compensation vs Earnings: Dan's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.8yrs

Average Tenure

50yo

Average Age

Experienced Management: LSBK's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

8.7yrs

Average Tenure

64yo

Average Age

Experienced Board: LSBK's board of directors are considered experienced (8.7 years average tenure).


Insider Trading

Insider Buying: LSBK insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$17,89015 Aug 19
Daniel Reininga
EntityIndividual
Role
Chief Executive Officer
President
Shares1,217
Max PriceUS$14.70
BuyUS$1,43808 May 19
Tracy Bennett
EntityIndividual
Role
Member of the Board of Directors
Director
Shares96
Max PriceUS$14.98
BuyUS$39,70825 Mar 19
John Mehltretter
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,500
Max PriceUS$16.47
SellUS$7,37125 Oct 18
Jeffrey Werdein
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Commercial Division
Shares471
Max PriceUS$15.65
SellUS$1,28325 Oct 18
Beverly Sutton
EntityIndividual
Role
Other Key Executive
Vice President of Retail Banking Operations
Shares82
Max PriceUS$15.65

Ownership Breakdown


Management Team

  • Dan Reininga (60yo)

    President

    • Tenure: 8.8yrs
    • Compensation: US$470.02k
  • Rachel Foley (50yo)

    CFO & Treasurer

    • Tenure: 13.6yrs
    • Compensation: US$262.17k
  • Steven Schiavone (40yo)

    Controller & Principal Accounting Officer

    • Tenure: 0.8yrs
  • Nicole May

    Compliance & CRA Officer

    • Tenure: 3.9yrs
  • John Huber

    Vice President & Regional Branch Sales Manager of Lake Shore Savings Bank

    • Tenure: 0yrs
  • Beverly Sutton (49yo)

    Vice President of Retail Banking Operations

    • Tenure: 4.3yrs
    • Compensation: US$142.88k
  • Janinne Dugan

    VP & HR Officer

    • Tenure: 25.8yrs
  • Jeff Werdein (52yo)

    Executive Vice President of Commercial Division

    • Tenure: 5.2yrs
    • Compensation: US$356.32k
  • Wendy Harrington

    Corporate Secretary

    • Tenure: 0yrs
  • Brenda Mikolajczak

    Assistant VP and Marketing & Sales Director

    • Tenure: 3.8yrs

Board Members

  • Nancy Yocum (72yo)

    Director

    • Tenure: 24.8yrs
    • Compensation: US$40.95k
  • Gary Winger (74yo)

    Chairman of the Board

    • Tenure: 6.4yrs
    • Compensation: US$69.12k
  • Dan Reininga (60yo)

    President

    • Tenure: 8.8yrs
    • Compensation: US$470.02k
  • Dave Mancuso (73yo)

    Director

    • Tenure: 21.8yrs
    • Compensation: US$38.80k
  • Sharon Brautigam (63yo)

    Director

    • Tenure: 15.8yrs
    • Compensation: US$41.12k
  • Tracy Bennett (68yo)

    Director

    • Tenure: 9.7yrs
    • Compensation: US$39.57k
  • Jack Mehltretter (60yo)

    Director

    • Tenure: 2.9yrs
    • Compensation: US$34.35k
  • Kevin Sanvidge (64yo)

    Vice Chairman of the Board

    • Tenure: 1.8yrs
    • Compensation: US$40.73k
  • Susan Ballard (55yo)

    Director

    • Tenure: 7.8yrs
    • Compensation: US$40.18k
  • John McGrath

    Director

    • Tenure: 0.2yrs

Company Information

Lake Shore Bancorp, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lake Shore Bancorp, Inc.
  • Ticker: LSBK
  • Exchange: NasdaqGM
  • Founded: 1891
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$87.201m
  • Shares outstanding: 5.81m
  • Website: https://www.lakeshoresavings.com

Number of Employees


Location

  • Lake Shore Bancorp, Inc.
  • 31 East Fourth Street
  • Dunkirk
  • New York
  • 14048
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LSBKNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDApr 2006

Biography

Lake Shore Bancorp, Inc. operates as the savings and loan holding company for Lake Shore Savings Bank that provides retail and commercial banking products and services. It accepts various deposit products, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 23:55
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.