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Lake Shore Bancorp (LSBK)
NASDAQ:LSBK
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Lake Shore Bancorp (LSBK) AI Stock Analysis

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LSBK

Lake Shore Bancorp

(NASDAQ:LSBK)

Rating:73Outperform
Price Target:
$17.50
▲(44.03%Upside)
Lake Shore Bancorp demonstrates solid financial performance with a robust balance sheet and consistent revenue growth. Recent strategic corporate events further strengthen its market positioning. However, technical indicators are neutral, and the valuation is reasonable but not particularly compelling.

Lake Shore Bancorp (LSBK) vs. SPDR S&P 500 ETF (SPY)

Lake Shore Bancorp Business Overview & Revenue Model

Company DescriptionLake Shore Bancorp (LSBK) is a publicly-traded financial institution headquartered in Dunkirk, New York. Operating primarily through its wholly-owned subsidiary, Lake Shore Savings Bank, the company provides a comprehensive range of banking products and services. These include personal and business deposit accounts, residential and commercial mortgage loans, consumer loans, and other financial services to individuals and businesses in Western New York. The bank is committed to delivering community-focused banking services while maintaining a strong emphasis on customer relationships and local economic growth.
How the Company Makes MoneyLake Shore Bancorp generates revenue primarily through the interest income it earns on the loans it provides, including residential mortgages, commercial real estate loans, and consumer loans. It also earns income from the interest on its portfolio of investment securities. Additionally, the company derives non-interest income from service charges on deposit accounts, fees from loan originations, and other financial services. Key factors contributing to its earnings include effective interest rate management, maintaining strong relationships with local businesses and consumers, and leveraging its community presence to attract deposits. Partnerships with local businesses and community institutions also play a role in expanding its customer base and enhancing revenue streams.

Lake Shore Bancorp Financial Statement Overview

Summary
Lake Shore Bancorp exhibits financial strength with consistent revenue growth and strong operational margins. The balance sheet is solid, demonstrating low leverage and strong liquidity. While cash flow metrics show some variability, the company's overall cash generation remains positive.
Income Statement
75
Positive
Lake Shore Bancorp has demonstrated steady revenue growth over the years, with a notable increase from $27.8M in 2021 to $37.9M in TTM 2025. The gross profit margin remains strong, consistently above 67%, indicating efficient cost management. However, the net profit margin has seen a slight decline from 20.8% in 2021 to 13.1% in TTM 2025, signaling some pressure on profitability. Despite this, EBIT and EBITDA margins have remained fairly stable, suggesting operational efficiency.
Balance Sheet
80
Positive
The company's balance sheet is robust, with a low debt-to-equity ratio of 0.04 in TTM 2025, reflecting conservative leverage. The equity ratio stands at 13.2%, indicating a stable capital structure. Furthermore, the return on equity is strong at 5.5%, although it has slightly decreased from previous years. Overall, the balance sheet portrays financial stability with ample liquidity, evidenced by a consistent increase in cash and short-term investments.
Cash Flow
70
Positive
Lake Shore Bancorp's cash flow position is solid, with free cash flow growth of 24.1% from 2024 to TTM 2025, showcasing effective capital management. The operating cash flow to net income ratio of 0.65 suggests efficient cash conversion. However, the free cash flow to net income ratio has declined slightly, highlighting some volatility in cash flow generation. Despite these fluctuations, the company maintains a positive cash flow trajectory.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue38.11M36.39M29.46M27.85M27.33M
Gross Profit25.85M28.04M26.32M24.53M21.30M
EBITDA6.61M7.03M7.73M8.34M6.22M
Net Income4.93M4.82M5.71M6.19M4.56M
Balance Sheet
Total Assets685.50M725.12M699.91M714.09M686.20M
Cash, Cash Equivalents and Short-Term Investments89.63M114.17M82.68M156.76M122.26M
Total Debt10.25M35.25M37.55M21.95M29.75M
Total Liabilities595.64M638.85M618.73M625.76M600.28M
Stockholders Equity89.87M86.27M81.18M87.98M85.92M
Cash Flow
Free Cash Flow2.51M5.81M7.80M7.92M5.20M
Operating Cash Flow2.51M6.21M8.21M8.55M5.60M
Investing Cash Flow21.12M19.52M-57.20M-5.74M-62.14M
Financing Cash Flow-44.22M18.37M-8.95M21.80M69.22M

Lake Shore Bancorp Technical Analysis

Technical Analysis Sentiment
Positive
Last Price12.15
Price Trends
50DMA
11.63
Positive
100DMA
11.42
Positive
200DMA
10.83
Positive
Market Momentum
MACD
0.12
Negative
RSI
62.73
Neutral
STOCH
57.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LSBK, the sentiment is Positive. The current price of 12.15 is above the 20-day moving average (MA) of 11.83, above the 50-day MA of 11.63, and above the 200-day MA of 10.83, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 62.73 is Neutral, neither overbought nor oversold. The STOCH value of 57.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LSBK.

Lake Shore Bancorp Risk Analysis

Lake Shore Bancorp disclosed 38 risk factors in its most recent earnings report. Lake Shore Bancorp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Lake Shore Bancorp Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$74.48M10.098.10%2.01%5.04%-6.92%
73
Outperform
$93.26M16.086.43%4.37%1.49%33.52%
73
Outperform
$81.46M11.4011.29%6.25%5.81%-22.37%
69
Neutral
$110.01M10.938.68%1.53%18.82%35.24%
68
Neutral
$83.12M24.284.35%1.66%11.65%67.39%
61
Neutral
C$15.12B6.8123.28%5.39%33.61%-23.38%
56
Neutral
$104.20M-0.73%-9.96%-23.54%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LSBK
Lake Shore Bancorp
12.15
3.38
38.54%
IROQ
IF Bancorp
24.13
7.19
42.44%
MGYR
Magyar Bancorp
17.00
4.93
40.85%
UBCP
United Bancorp
14.40
2.71
23.18%
FUSB
First US Bancshares
13.12
2.98
29.39%
BSBK
Bogota Financial
8.06
0.70
9.51%

Lake Shore Bancorp Corporate Events

Delistings and Listing ChangesPrivate Placements and FinancingBusiness Operations and Strategy
Lake Shore Bancorp Completes Conversion and Raises $49.5M
Positive
Jul 18, 2025

On July 18, 2025, Lake Shore Bancorp, Inc. completed the conversion of Lake Shore, MHC from mutual to stock form and transitioned Lake Shore Savings Bank from a federal savings bank to a New York chartered commercial bank. The company raised $49.5 million through a stock offering, selling 4,950,460 shares at $10.00 each. This strategic move is expected to enhance the company’s market positioning and operational flexibility, with its common stock set to begin trading on the Nasdaq Global Market on July 21, 2025.

Delistings and Listing ChangesPrivate Placements and FinancingBusiness Operations and Strategy
Lake Shore Bancorp Announces Conversion and Stock Offering
Positive
Jul 8, 2025

On July 8, 2025, Lake Shore Bancorp, Inc. announced the expected closing of its conversion from mutual to stock form and related stock offering on July 18, 2025, after receiving all regulatory approvals. The company’s common stock is anticipated to start trading on the Nasdaq Global Market on July 21, 2025. The stock offering is expected to raise $49.5 million through the sale of 4,950,460 shares at $10.00 per share. The conversion will result in Lake Shore Federal Bancorp’s public stockholders receiving shares in the new holding company, Lake Shore Bancorp, maintaining their ownership percentage. The transaction is significant for the company’s strategic positioning, allowing it to transition to a New York chartered commercial bank, potentially impacting its operations and market presence.

Shareholder MeetingsBusiness Operations and Strategy
Lake Shore Bancorp Approves Conversion Plan at Special Meeting
Neutral
Jul 1, 2025

On July 1, 2025, Lake Shore Bancorp, Inc. held a Special Meeting of Stockholders where the Amended and Restated Plan of Conversion and Reorganization was approved. This plan involves converting from a mutual holding company structure to a fully public stock holding company and transitioning the Bank from a federal savings bank to a New York chartered commercial bank. The conversion and stock offering are still subject to final regulatory approvals and customary closing conditions.

Delistings and Listing ChangesPrivate Placements and FinancingBusiness Operations and Strategy
Lake Shore Bancorp Announces Stock Offering Conversion
Neutral
May 23, 2025

On May 23, 2025, Lake Shore Bancorp, Inc. announced the commencement of a stock offering as part of its conversion from a mutual holding company to a stock holding company. The new Maryland corporation aims to sell up to 5,750,000 shares, with a potential increase to 6,612,500 shares, at $10.00 per share. This move involves converting the bank’s charter to a New York commercial bank and renaming it Lake Shore Bank. The stock offering is primarily available to eligible depositors and the employee stock ownership plan, with any remaining shares offered to the community and public stockholders. The completion of this conversion and offering is contingent upon selling at least 4,250,000 shares and receiving necessary regulatory and stockholder approvals.

Executive/Board ChangesShareholder Meetings
Lake Shore Bancorp Holds Annual Shareholder Meeting
Neutral
May 21, 2025

On May 21, 2025, Lake Shore Bancorp, Inc. held its Annual Meeting of Shareholders. During this meeting, shareholders elected three Class Two directors to the board for terms expiring in 2028, approved a non-binding resolution on executive compensation, and ratified the appointment of Yount, Hyde & Barbour, P.C. as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

Shareholder MeetingsBusiness Operations and Strategy
Lake Shore Bancorp Announces Annual Shareholders’ Meeting
Positive
May 21, 2025

Lake Shore Bancorp, Inc. announced its annual shareholders’ meeting scheduled for May 21, 2025, in Dunkirk, New York. The meeting will include the election of directors, a ‘say on pay’ proposal, and the ratification of an independent accounting firm. The company is undergoing a ‘second-step’ conversion to a fully-public stock holding company structure, reflecting its growth strategy. This move is expected to enhance shareholder value and align with its long-term goals of expanding its financial services and market presence.

Private Placements and FinancingRegulatory Filings and Compliance
Lake Shore Bancorp Partners with Raymond James for Stock Offering
Neutral
May 20, 2025

On May 14, 2025, Lake Shore Bancorp, Inc. entered into an Agency Agreement with Raymond James & Associates, Inc. to assist in marketing its common stock during the company’s stock offering, related to its conversion from a mutual holding company to a stock holding company. Raymond James will receive a success fee for its services, and the shares are being offered under a Registration Statement declared effective by the SEC.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 19, 2025