Lake Shore Bancorp第二季淨利增13% 淨息差擴至4.06% 業績穩健

EX-99.1
2
lsbk-ex99_1.htm
EX-99.1

 
 EX-99.1
 
 
 

 
Lake Shore Bancorp, Inc. Announces
Second Quarter 2026 Financial Results 
 
 
DUNKIRK, N.Y. — July 22, 2026 — Lake Shore Bancorp, Inc. (the “Company”) (NASDAQ: LSBK), the holding company for Lake Shore Bank (the “Bank”), reported unaudited net income of $2.2 million, or $0.29 per diluted share, for the second quarter of 2026 compared to net income of $1.9 million, or $0.25 per diluted share, for the second quarter of 2025. For the first six months of 2026, the Company reported unaudited net income of $4.1 million, or $0.56 per diluted share, as compared to $3.0 million, or $0.39 per diluted share, for the first six months of 2025. The Company's financial performance for the second quarter of 2026 was positively impacted primarily by higher net interest income.
 
"I am pleased with our second quarter results, which reflect disciplined expense management, improved net interest income, and our team’s focused execution of strategic initiatives,” stated Kim C. Liddell, President, CEO, and Director. “These results provide a strong foundation as we continue serving our customers, communities, and shareholders."
 
Second Quarter 2026 and Year-to-Date Financial Highlights:
 
•Net income increased to $2.2 million during the second quarter of 2026, an increase of $254,000, or 13.2%, when compared to the second quarter of 2025. Net income was positively impacted by an increase in net interest income of $771,000, or 12.6%, when compared to the second quarter of 2025;

•Net income increased to $4.1 million during the first half of 2026, an increase of $1.1 million, or 37.7%, when compared to the first half of 2025. Net income was positively impacted by an increase in net interest income of $2.0 million, or 17.0%, when compared to the first half of 2025;

•Net interest margin increased to 4.06% during the second quarter of 2026, an increase of four basis points when compared to net interest margin of 4.02% during the first quarter of 2026 and an increase of 22 basis points when compared to net interest margin of 3.84% during the second quarter of 2025;

•Efficiency ratio improved to 63.77% for the quarter ended June 30, 2026, a decrease of 5.81% as compared to 69.58% for the quarter ended March 31, 2026 and a decrease of 3.05% when compared to 66.82% for the quarter ended June 30, 2025;

•Annualized return on average assets increased to 1.19% for the quarter ended June 30, 2026, an increase of 12 basis points as compared to 1.07% for the quarter ended March 31, 2026, and an increase of eight basis points when compared to 1.11% for the quarter ended June 30, 2025; 

•Book value per share increased 1.7% to $18.41 per share at June 30, 2026, as compared to $18.10 per share at December 31, 2025; 

•Non-performing assets as a percentage of total assets decreased to 0.20% at June 30, 2026, as compared to 0.23% at December 31, 2025; and

•The Bank's capital position remains "well capitalized" with a Tier 1 Leverage ratio of 17.43% and a Total Risk-Based Capital ratio of 24.04% at June 30, 2026.

 

 

 
 

 Net Interest Income
 
Net interest income for the second quarter of 2026 increased by $233,000, or 3.5%, to $6.9 million as compared to $6.7 million for the first quarter of 2026 and increased $771,000, or 12.6%, as compared to $6.1 million for the second quarter of 2025. Annualized net interest margin was 4.06% for the second quarter of 2026, as compared to 4.02% for the first quarter of 2026 and 3.84% for the second quarter of 2025. 
Net interest income for the first half of 2026 increased $2.0 million, or 17.0%, to $13.6 million as compared to $11.6 million for the first half of 2025. Annualized net interest margin was 4.04% for the first half of 2026, as compared to 3.67% for the first half of 2025.
Interest income for the second quarter of 2026 was $9.4 million, an increase of $333,000, or 3.7%, compared to $9.1 million for the first quarter of 2026, and an increase of $281,000, or 3.1%, compared to $9.1 million for the second quarter of 2025. Interest income was $18.4 million for the first six months of 2026, an increase of $1.0 million, or 5.5%, when compared to $17.5 million for the first six months of 2025.
The increase in interest income from the prior quarter was primarily due to a six basis point increase in the average yield on interest-earning assets and a $16.7 million, or 2.5%, increase in the average balance of interest-earning assets. Interest earned on loans increased by $232,000, or 2.8%, due to an eight basis point increase in the average yield on loans and an $8.1 million, or 1.5%, increase in the average balance of loans. Interest earned on interest-earning deposits increased by $107,000, or 22.8%, due to a $10.7 million, or 19.9%, increase in the average balance of interest-earning deposits and a nine basis point increase in the average yield earned on interest-earning deposits. 
The increase in interest income from the prior year quarter was primarily due to a $42.0 million, or 6.6%, increase in the average balance of interest-earning assets, partially offset by a 19 basis point decrease in the average yield on interest-earning assets. During the second quarter of 2026 as compared to the same period in 2025, there was a $306,000, or 113.3%, increase in interest income on interest-earning deposits due to a $37.6 million increase in the average balance of interest-earning deposits. This increase was partially offset by a 42 basis point decrease in the average yield on interest-earning deposits. 
Interest income for the first half of 2026 was $18.4 million, an increase of $968,000, or 5.5%, compared to $17.5 million, for the first half of 2025. This increase was primarily due to an increase in the average balance of interest-earning assets of $38.7 million, or 6.1%, when compared to the previous year period. Interest earned on interest-earning deposits increased by $541,000, or 107.3%, primarily due to a $34.1 million, or 134.4%, increase in the average balance of interest-earning deposits. Interest earned on loans increased by $474,000, or 2.9%, due to an increase in the average balance of loans of $5.6 million, or 1.0%, along with an 11 basis points increase in the average yield earned on loans. 
Interest expense for the second quarter of 2026 was $2.5 million, an increase of $100,000, or 4.2%, from $2.4 million in the first quarter of 2026, and a decrease of $490,000, or 16.4%, from $3.0 million for the second quarter of 2025. Interest expense for the first six months of 2026 was $4.9 million, a decrease of $1.0 million, or 16.9%, from $5.9 million for the first six months of 2025.
 
The increase in interest expense when compared to the previous quarter was primarily due to an increase in the average balance of interest-bearing liabilities of $11.6 million, or 2.5%, along with an increase in the average interest rate paid on interest-bearing liabilities of three basis points. During the second quarter of 2026, as compared to the previous quarter, interest expense on deposits increased by $100,000, or 4.2%, due to a $10.9 million, or 2.3% increase in the average balance of interest-bearing deposits and a three basis point increase in the average interest rate paid on interest-bearing deposit accounts. The increase in interest paid on interest-bearing deposit accounts was impacted by a $12.7 million, or 6.4%, increase in the average balance of time deposits, partially offset by a $2.4 million, or 1.5%, decrease in the average balance of money market accounts. The average interest rate paid on deposit accounts increased three basis points during the second quarter of 2026, when 

 

 
 

 compared to the previous quarter primarily due to a two basis point increase in the average interest rate paid on money market accounts. 
 
The decrease in interest expense when compared to the prior year quarter was primarily due to a 33 basis points decrease in average interest rate paid on interest-bearing liabilities and a $15.1 million, or 3.0%, decrease in the average balance of interest-bearing liabilities. During the second quarter of 2026 as compared to the same period in 2025, interest expense on deposits decreased by $476,000, or 16.1%, due to a 33 basis points decrease in the average interest rate paid on interest-bearing deposit accounts and a $14.3 million, or 2.9%, decrease in the average balance of interest-bearing deposits. The decrease in the average interest rate paid on deposit accounts was primarily due to the decrease in market interest rates, time deposit repricing, and a marginal shift in deposit composition. Average interest-bearing deposit balances decreased 2.9% during the second quarter of 2026 when compared to the second quarter of 2025 due to a decrease in all deposit categories except money market accounts. 
 
Interest expense for the first half of 2026 was $4.9 million, a decrease of $997,000, or 16.9%, from $5.9 million for the first half of 2025. The decrease in interest expense was primarily due to a 35 basis points decrease in average interest rate paid on interest-bearing liabilities and a decrease in the average balance of interest-bearing liabilities of $14.3 million, or 2.9%. During the first half of 2026, there was a $946,000 decrease in interest expense on interest-bearing deposit accounts when compared to the first half of 2025 due to a 33 basis points decrease in the average interest rate paid on interest-bearing deposits along with a decrease in the average balance of interest-bearing deposits of $12.0 million, or 2.5%. The decrease in the average interest rate paid on deposit accounts was primarily due to the decrease in market interest rates, time deposit repricing, and a marginal shift in deposit composition. 
 
Non-Interest Income
 
Non-interest income was $749,000 for the second quarter of 2026, an increase of $46,000, or 6.5%, as compared to $703,000 for the first quarter of 2026, and a decrease of $51,000, or 6.4%, as compared to $800,000 for the second quarter of 2025. The increase from the prior quarter was primarily due to a $22,000 increase in service charges and fees and a $16,000 increase in debit card fees. The decrease from the prior year quarter was primarily due to a $65,000 decrease in gain on equity securities that were held in the prior year, partially offset by a $28,000 increase in earnings on bank-owned life insurance. 
 
Non-interest income was $1.5 million for the first half of 2026, a decrease of $72,000, or 4.7%, as compared to the first half of 2025. The decrease was primarily due to a $111,000 decrease in gain on equity securities that were held in the prior year and a $14,000 decrease in earnings on annuity assets, partially offset by a $53,000 increase in earnings on bank-owned life insurance and a $12,000 increase in service charges and fees.
 
Non-Interest Expense
 
Non-interest expense was $4.9 million for the second quarter of 2026, a decrease of $250,000, or 4.9%, as compared to $5.1 million for the first quarter of 2026, and an increase of $248,000, or 5.4%, as compared to $4.6 million for the second quarter of 2025. The decrease from the prior quarter was primarily due to a decrease in salaries and employee benefits of $216,000, or 6.5%, along with decreases in occupancy and equipment of $77,000, or 10.7%, partially offset by an increase in data processing costs of $65,000, or 18.0%. The increase from the second quarter of 2025 was primarily related to an increase in the cost of health insurance, taxes, and other non-salary benefits of $236,000, or 8.3%, and an increase in occupancy and equipment of $27,000, or 4.4%, partially offset by a decrease in data processing of $31,000, or 6.8%.
 
Non-interest expense was $10.0 million for the first half of 2026, an increase of $493,000, or 5.2%, as compared to $9.5 million for the first half of 2025. The increase related primarily to an increase in the cost of health insurance, taxes, and other non-salary benefits of $628,000, or 10.9%, partially offset by a decrease in data processing costs of $130,000, or 14.2% and professional services of $37,000, or 6.5%, as a result of management's efforts to optimize operating expenses. 

 

 
 

  
Income Tax Expense
 
Income tax expense was $477,000 for the second quarter of 2026, an increase of $47,000, or 10.9%, as compared to $430,000 for the first quarter of 2026, and an increase of $99,000, or 26.2%, as compared to $378,000 for the second quarter of 2025. The effective tax rate was 18.0% for the second quarter of 2026 as compared to 18.3% for the first quarter of 2026 and 16.5% for the second quarter of 2025. The increase in income tax expense from the prior quarter and prior year quarter was primarily related to the increase in pre-tax income earned during the current quarter. The increase from the prior year quarter was also due to an increase in the effective tax rate, which was primarily due to an increase in taxable income earned during the second quarter of 2026. 
 
Income tax expense was $907,000 for the first half of 2026, an increase of $322,000, or 55.0%, as compared to $585,000 for the first half of 2025. The effective tax rate was 18.1% for the first half of 2026 and 16.4% for the first half of 2025. The increase in income tax expense from the first half of 2025 was primarily related to the increase in pre-tax income earned during the first half of 2026. The increase in the effective tax rate during the first half of 2026 was primarily due to an increase in taxable income earned during the first half of 2026. 
 
Credit Quality
 
The Company’s allowance for credit losses on loans was $4.7 million as of June 30, 2026 as compared to $4.9 million as of December 31, 2025. The Company’s allowance for credit losses on unfunded commitments was $495,000 as of June 30, 2026 as compared to $361,000 as of December 31, 2025. Non-performing assets as a percent of total assets decreased to 0.20% at June 30, 2026 as compared to 0.23% at December 31, 2025, primarily due to a decrease in non-performing assets of $250,000, or 14.9%. The Company’s allowance for credit losses on loans as a percent of loans at amortized cost was 0.84% and 0.87% and its allowance for credit losses on loans as a percent of non-performing loans was 331.85% and 290.71% at June 30, 2026 and December 31, 2025, respectively.
 
The Company recorded $119,000 provision for credit losses during the second quarter of 2026 and recorded a net provision for credit losses of $5,000 for the first half of 2026. Of the amount recorded for the second quarter of 2026, $170,000 related to a provision recorded to the allowance for credit losses for unfunded commitments, and $51,000 related to a credit recorded to the allowance for credit losses on the loan portfolio. For the first half of 2026, $134,000 related to a provision recorded to the allowance for credit losses for unfunded commitments, and $137,000 related to a credit recorded to the allowance for credit losses on the loan portfolio, net of charge-offs and recoveries. The increase in the allowance for credit losses on unfunded commitments and the corresponding provision for credit losses recognized during the first half of 2026 was primarily the result of an increase in outstanding unfunded commitments between the periods. The decrease in the allowance for credit losses on the loan portfolio was primarily related to a decrease in the calculated reserve rates, including the expected quantitative losses inclusive of forecasted economic trends, and the qualitative factor loss rates related to economic factors. The decrease primarily related to the commercial real estate and residential mortgage loan pools, partially offset by an increase in the calculation of expected losses for the commercial loan pool.
 
 
Balance Sheet Summary
 
Total assets at June 30, 2026 were $736.7 million, a $9.3 million increase, or 1.3%, as compared to $727.3 million at December 31, 2025. Cash and cash equivalents increased by $8.0 million, or 12.4%, from $64.3 million at December 31, 2025 to $72.2 million at June 30, 2026. The increase in cash and cash equivalents was primarily due to an increase in deposits of $5.0 million, or 0.9%, partially offset by an increase in loans receivable of $2.9 million, or 0.5%. Securities available for sale were $53.6 million at June 30, 2026 as compared to $56.1 million at December 31, 2025 representing a decrease primarily due to a decrease in the market value of the portfolio and paydowns received during the first half of 2026. Net loans receivable at June 30, 2026 and December 31, 2025 were $558.3 million and $555.4 million, respectively. Total deposits at June 30, 2026 were $578.2 million, an 

 

 
 

 increase of $5.0 million, or 0.9%, compared to $573.3 million at December 31, 2025. The Company's uninsured deposits as a percentage of total deposits were 10.9% and 11.3%, at June 30, 2026 and December 31, 2025, respectively.
 
Stockholders’ equity at June 30, 2026 was $144.8 million, a $3.1 million increase, or 2.2%, as compared to $141.6 million at December 31, 2025. The increase in stockholders’ equity was primarily attributed to net income of $4.1 million, partially offset by dividends declared and paid of $1.3 million during the first half of 2026.
 
About Lake Shore
 
Lake Shore Bancorp is the holding company of Lake Shore Bank, a New York chartered, community-oriented financial institution headquartered in Dunkirk, New York. The Bank has ten full-service branch locations in Western New York, including four in Chautauqua County and six in Erie County. The Bank offers a broad range of retail and commercial lending and deposit services. Lake Shore Bancorp’s common stock is traded on the NASDAQ Global Market as “LSBK”. Additional information about Lake Shore Bancorp is available at www.mylsbank.com. 
 
Safe-Harbor 
This release 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 management’s beliefs and assumptions. Words such as anticipates, expects, intends, plans, believes, estimates and variations of such words and expressions are intended to identify forward-looking statements. Such statements reflect management’s current views of future events and operations. These forward-looking statements are based on information currently available to the Company as of the date of this release. It is important to note that these forward-looking statements are not guarantees of future performance and involve and are subject to significant risks, contingencies, and uncertainties, many of which are difficult to predict and are generally beyond our control including, but not limited to, data loss or other security breaches, including a breach of our operational or security systems, policies or procedures, including cyber-attacks on us or on our third party vendors or service providers, economic conditions, the effect of changes in monetary and fiscal policy, inflation, tariffs, unanticipated changes in our liquidity position, climate change, public health issues, geopolitical conflict, increased unemployment, deterioration in the credit quality of the loan portfolio and/or the value of the collateral securing repayment of loans, reduction in the value of investment securities, the cost and ability to attract and retain key employees, regulatory or legal developments, tax policy changes, and our ability to implement and execute our business plan and strategy and expand our operations. These factors should be considered in evaluating forward looking statements and undue reliance should not be placed on such statements, as our financial performance could differ materially due to various risks or uncertainties. We do not undertake to publicly update or revise our forward-looking statements if future changes make it clear that any projected results expressed or implied therein will not be realized. 
# # # # #
Source: Lake Shore Bancorp, Inc.
Category: Financial
 
Investor Relations/Media Contact
Kim C. Liddell
President, CEO, and Director
Lake Shore Bancorp, Inc.
31 East Fourth Street
Dunkirk, New York 14048
(716) 366-4070 ext. 1012
 
 
 

 

 
 

 Selected Financial Condition Data

 
 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 June 30,

  

  

  

 December 31,

  

 

 
  

  

 2026

  

  

  

 2025

  

 

 
  

  

 (Unaudited)

  

 

 
  

  

 (Dollars in thousands)

  

 

 
  

  

  

  

  

  

  

  

 

 
 Total assets

 $

  

 736,652

  

  

 $

  

 727,323

  

 

 
 Cash and cash equivalents

  

  

 72,237

  

  

  

  

 64,280

  

 

 
 Securities available for sale, at fair value

  

  

 53,567

  

  

  

  

 56,138

  

 

 
 Loans receivable, net

  

  

 558,317

  

  

  

  

 555,441

  

 

 
 Deposits

  

  

 578,240

  

  

  

  

 573,277

  

 

 
 Stockholders’ equity

  

  

 144,761

  

  

  

  

 141,639

  

 

  
Statements of Income

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 Three Months Ended

  

  

 Six Months Ended

  

 

 
  

  

 June 30,

  

  

 June 30,

  

 

 
  

  

 2026

  

  

  

 2025

  

  

  

 2026

  

  

  

 2025

  

 

 
  

  

 (Unaudited)

  

 

 
  

 (Dollars in thousands, except per share amounts)

  

 

 
 Interest income

 $

  

 9,388

  

  

 $

  

 9,107

  

  

 $

  

 18,442

  

  

 $

  

 17,474

  

 

 
 Interest expense

  

  

 2,495

  

  

  

  

 2,985

  

  

  

  

 4,890

  

  

  

  

 5,887

  

 

 
 Net interest income

  

  

 6,893

  

  

  

  

 6,122

  

  

  

  

 13,552

  

  

  

  

 11,587

  

 

 
 Provision for credit losses

  

  

 119

  

  

  

  

 —

  

  

  

  

 5

  

  

  

  

 48

  

 

 
 Net interest income after provision for credit losses

  

  

 6,774

  

  

  

  

 6,122

  

  

  

  

 13,547

  

  

  

  

 11,539

  

 

 
 Total non-interest income

  

  

 749

  

  

  

  

 800

  

  

  

  

 1,452

  

  

  

  

 1,524

  

 

 
 Total non-interest expense

  

  

 4,873

  

  

  

  

 4,625

  

  

  

  

 9,996

  

  

  

  

 9,503

  

 

 
 Income before income taxes

  

  

 2,650

  

  

  

  

 2,297

  

  

  

  

 5,003

  

  

  

  

 3,560

  

 

 
 Income tax expense

  

  

 477

  

  

  

  

 378

  

  

  

  

 907

  

  

  

  

 585

  

 

 
 Net income

 $

  

 2,173

  

  

 $

  

 1,919

  

  

 $

  

 4,096

  

  

 $

  

 2,975

  

 

 
 Basic and diluted earnings per share(1)

 $

  

 0.29

  

  

  $

  

 0.25

  

  

  $

  

 0.56

  

  

  $

  

 0.39

  

 

 
 Dividends declared and paid per share(1)

 $

  

 0.09

  

  

  $

  

 —

  

  

  $

  

 0.18

  

  

  $

  

 0.13

  

 

 
  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Selected Financial Ratios

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Return on average assets(2)

  

  

 1.19

 %

  

  

  

 1.11

 %

  

  

  

 1.13

 %

  

  

  

 0.87

 %

 

 
 Return on average equity(2)

  

  

 6.04

 %

  

  

  

 8.37

 %

  

  

  

 5.71

 %

  

  

  

 6.52

 %

 

 
 Average interest-earning assets to average interest-bearing liabilities

  

  

 140.83

 %

  

  

  

 128.12

 %

  

  

  

 140.80

 %

  

  

  

 128.81

 %

 

 
 Interest rate spread(2)

  

  

 3.46

 %

  

  

  

 3.32

 %

  

  

  

 3.44

 %

  

  

  

 3.13

 %

 

 
 Net interest margin(2)

  

  

 4.06

 %

  

  

  

 3.84

 %

  

  

  

 4.04

 %

  

  

  

 3.67

 %

 

 
 Efficiency ratio

  

  

 63.77

 %

  

  

  

 66.82

 %

  

  

  

 66.62

 %

  

  

  

 72.48

 %

 

  
(1) Per share information reflects the effects of the Company's conversion and related stock offering for all periods presented, as applicable.
(2) Annualized 
 

 

 
 

 Average Balance Sheets, Interest, and Rates (Quarterly Comparison)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 For the Three Months Ended

  

  

 For the Three Months Ended

  

 

 
  

  

 June 30, 2026

  

  

 June 30, 2025

  

 

 
  

  

 Average

  

  

 Interest Income/

  

  

 Yield/

  

  

 Average

  

  

 Interest Income/

  

  

 Yield/

  

 

 
  

  

 Balance

  

  

 Expense

  

  

 Rate(2)

  

  

 Balance

  

  

 Expense

  

  

 Rate(2)

  

 

 
  

  

 (Unaudited)

  

 

 
  

  

 (Dollars in thousands)

  

 

 
 Interest-earning assets:

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Interest-earning deposits

  

 $

  

 64,801

  

  

 $

  

 576

  

  

  

 3.56

 %

  

 $

  

 27,162

  

  

 $

  

 270

  

  

  

 3.98

 %

 

 
 Securities(1)

  

  

  

 54,910

  

  

  

  

 348

  

  

  

 2.54

 %

  

  

  

 56,222

  

  

  

  

 368

  

  

  

 2.62

 %

 

 
 Loans, including fees

  

  

  

 559,192

  

  

  

  

 8,464

  

  

  

 6.05

 %

  

  

  

 553,550

  

  

  

  

 8,469

  

  

  

 6.12

 %

 

 
 Total interest-earning assets

  

  

  

 678,903

  

  

 $

  

 9,388

  

  

  

 5.53

 %

  

  

  

 636,934

  

  

 $

  

 9,107

  

  

  

 5.72

 %

 

 
 Other assets

  

  

  

 53,753

  

  

  

  

  

  

  

  

  

  

  

 52,724

  

  

  

  

  

  

  

  

 

 
 Total assets

  

 $

  

 732,656

  

  

  

  

  

  

  

  

  

 $

  

 689,658

  

  

  

  

  

  

  

  

 

 
  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Interest-bearing liabilities:

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Demand & NOW accounts

  

 $

  

 63,572

  

  

 $

  

 14

  

  

  

 0.09

 %

  

 $

  

 64,337

  

  

 $

  

 15

  

  

  

 0.09

 %

 

 
 Money market accounts

  

  

  

 153,861

  

  

  

  

 731

  

  

  

 1.90

 %

  

  

  

 153,547

  

  

  

  

 955

  

  

  

 2.49

 %

 

 
 Savings accounts(3)

  

  

  

 50,642

  

  

  

  

 8

  

  

  

 0.06

 %

  

  

  

 58,286

  

  

  

  

 9

  

  

  

 0.06

 %

 

 
 Time deposits

  

  

  

 210,894

  

  

  

  

 1,719

  

  

  

 3.26

 %

  

  

  

 217,101

  

  

  

  

 1,969

  

  

  

 3.63

 %

 

 
 Total interest-bearing deposits

  

  

  

 478,969

  

  

  

  

 2,472

  

  

  

 2.06

 %

  

  

  

 493,271

  

  

  

  

 2,948

  

  

  

 2.39

 %

 

 
 Borrowed funds & other interest-bearing liabilities

  

  

  

 3,105

  

  

  

  

 23

  

  

  

 2.96

 %

  

  

  

 3,869

  

  

  

  

 37

  

  

  

 3.83

 %

 

 
 Total interest-bearing liabilities

  

  

  

 482,074

  

  

 $

  

 2,495

  

  

  

 2.07

 %

  

  

  

 497,140

  

  

 $

  

 2,985

  

  

  

 2.40

 %

 

 
 Other non-interest bearing liabilities

  

  

  

 106,759

  

  

  

  

  

  

  

  

  

  

  

 100,826

  

  

  

  

  

  

  

  

 

 
 Stockholders' equity

  

  

  

 143,823

  

  

  

  

  

  

  

  

  

  

  

 91,692

  

  

  

  

  

  

  

  

 

 
 Total liabilities & stockholders' equity

  

 $

  

 732,656

  

  

  

  

  

  

  

  

  

 $

  

 689,658

  

  

  

  

  

  

  

  

 

 
 Net interest income

  

  

  

  

  

 $

  

 6,893

  

  

  

  

  

  

  

  

  

 $

  

 6,122

  

  

  

  

 

 
 Interest rate spread

  

  

  

  

  

  

  

  

  

  

 3.46

 %

  

  

  

  

  

  

  

  

  

  

 3.32

 %

 

 
 Net interest margin

  

  

  

  

  

  

  

  

  

  

 4.06

 %

  

  

  

  

  

  

  

  

  

  

 3.84

 %

 

  
(1) The tax equivalent adjustment for bank qualified tax exempt municipal securities, using a federal statutory rate of 21%, results in rates of 2.92% and 3.03% for the three months ended June 30, 2026 and 2025, respectively. Yields above are not presented on a tax equivalent basis.
(2) Annualized.
(3) Included within savings accounts as of June 30, 2025 is $43.7 million of funds collected and held on deposit in a segregated account in connection with the Company's completed second-step conversion and stock offering. The average rate paid on these funds was 5 basis points and the collection of these funds resulted in a $3.8 million increase in the average balance of savings accounts during the three months ended June 30, 2025.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

 
 

 Average Balance Sheets, Interest, and Rates (Year-to-Date Comparison)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 For the Six Months Ended

  

  

 For the Six Months Ended

  

 

 
  

  

 June 30, 2026

  

  

 June 30, 2025

  

 

 
  

  

 Average

  

  

 Interest Income/

  

  

 Yield/

  

  

 Average

  

  

 Interest Income/

  

  

 Yield/

  

 

 
  

  

 Balance

  

  

 Expense

  

  

 Rate(2)

  

  

 Balance

  

  

 Expense

  

  

 Rate(2)

  

 

 
  

  

 (Unaudited)

  

 

 
  

  

 (Dollars in thousands)

  

 

 
 Interest-earning assets:

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Interest-earning deposits

  

 $

  

 59,461

  

  

 $

  

 1,045

  

  

  

 3.51

 %

  

 $

  

 25,372

  

  

 $

  

 504

  

  

  

 3.97

 %

 

 
 Securities(1)

  

  

  

 55,975

  

  

  

  

 701

  

  

  

 2.50

 %

  

  

  

 57,008

  

  

  

  

 748

  

  

  

 2.62

 %

 

 
 Loans, including fees

  

  

  

 555,178

  

  

  

  

 16,696

  

  

  

 6.01

 %

  

  

  

 549,578

  

  

  

  

 16,222

  

  

  

 5.90

 %

 

 
 Total interest-earning assets

  

  

  

 670,614

  

  

 $

  

 18,442

  

  

  

 5.50

 %

  

  

  

 631,958

  

  

 $

  

 17,474

  

  

  

 5.53

 %

 

 
 Other assets

  

  

  

 53,542

  

  

  

  

  

  

  

  

  

  

  

 52,193

  

  

  

  

  

  

  

  

 

 
 Total assets

  

 $

  

 724,156

  

  

  

  

  

  

  

  

  

 $

  

 684,151

  

  

  

  

  

  

  

  

 

 
  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Interest-bearing liabilities

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Demand & NOW accounts

  

 $

  

 62,982

  

  

 $

  

 29

  

  

  

 0.09

 %

  

 $

  

 63,565

  

  

 $

  

 30

  

  

  

 0.09

 %

 

 
 Money market accounts

  

  

  

 155,037

  

  

  

  

 1,466

  

  

  

 1.89

 %

  

  

  

 153,116

  

  

  

  

 1,822

  

  

  

 2.38

 %

 

 
 Savings accounts(3)

  

  

  

 50,951

  

  

  

  

 16

  

  

  

 0.06

 %

  

  

  

 55,927

  

  

  

  

 18

  

  

  

 0.06

 %

 

 
 Time deposits

  

  

  

 204,604

  

  

  

  

 3,333

  

  

  

 3.26

 %

  

  

  

 212,975

  

  

  

  

 3,920

  

  

  

 3.68

 %

 

 
 Total interest-bearing deposits

  

  

  

 473,574

  

  

  

  

 4,844

  

  

  

 2.05

 %

  

  

  

 485,583

  

  

  

  

 5,790

  

  

  

 2.38

 %

 

 
 Borrowed funds & other interest-bearing liabilities

  

  

  

 2,725

  

  

  

  

 46

  

  

  

 3.38

 %

  

  

  

 5,046

  

  

  

  

 97

  

  

  

 3.84

 %

 

 
 Total interest-bearing liabilities

  

  

  

 476,299

  

  

 $

  

 4,890

  

  

  

 2.05

 %

  

  

  

 490,629

  

  

 $

  

 5,887

  

  

  

 2.40

 %

 

 
 Other non-interest bearing liabilities

  

  

  

 104,401

  

  

  

  

  

  

  

  

  

  

  

 102,202

  

  

  

  

  

  

  

  

 

 
 Stockholders' equity

  

  

  

 143,456

  

  

  

  

  

  

  

  

  

  

  

 91,320

  

  

  

  

  

  

  

  

 

 
 Total liabilities & stockholders' equity

  

 $

  

 724,156

  

  

  

  

  

  

  

  

  

 $

  

 684,151

  

  

  

  

  

  

  

  

 

 
 Net interest income

  

  

  

  

  

 $

  

 13,552

  

  

  

  

  

  

  

  

  

 $

  

 11,587

  

  

  

  

 

 
 Interest rate spread

  

  

  

  

  

  

  

  

  

  

 3.45

 %

  

  

  

  

  

  

  

  

  

  

 3.13

 %

 

 
 Net interest margin

  

  

  

  

  

  

  

  

  

  

 4.04

 %

  

  

  

  

  

  

  

  

  

  

 3.67

 %

 

  
(1) The tax equivalent adjustment for bank qualified tax exempt municipal securities, using a federal statutory rate of 21%, results in rates of 2.88% and 3.03% for the six months ended June 30, 2026 and 2025, respectively. Yields above are not presented on a tax equivalent basis.
(2) Annualized.
(3) Included within savings accounts as of June 30, 2025 is $43.7 million of funds collected and held on deposit in a segregated account in connection with the Company's completed second step conversion and stock offering. The average rate paid on these funds was 5 basis points and the collection of these funds resulted in a $1.9 million increase in the average balance of savings accounts during the six months ended June 30, 2025.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

 
 

 Average Balance Sheets, Interest, and Rates (Prior Quarter Comparison)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 For the Three Months Ended

  

  

 For the Three Months Ended

  

 

 
  

  

 June 30, 2026

  

  

 March 31, 2026

  

 

 
  

  

 Average

  

  

 Interest Income/

  

  

 Yield/

  

  

 Average

  

  

 Interest Income/

  

  

 Yield/

  

 

 
  

  

 Balance

  

  

 Expense

  

  

 Rate(2)

  

  

 Balance

  

  

 Expense

  

  

 Rate(2)

  

 

 
  

  

 (Unaudited)

  

 

 
  

  

 (Dollars in thousands)

  

 

 
 Interest-earning assets:

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Interest-earning deposits

  

 $

  

 64,801

  

  

 $

  

 576

  

  

  

 3.56

 %

  

 $

  

 54,061

  

  

 $

  

 469

  

  

  

 3.47

 %

 

 
 Securities(1)

  

  

  

 54,910

  

  

  

  

 348

  

  

  

 2.54

 %

  

  

  

 57,052

  

  

  

  

 354

  

  

  

 2.48

 %

 

 
 Loans, including fees

  

  

  

 559,192

  

  

  

  

 8,464

  

  

  

 6.05

 %

  

  

  

 551,119

  

  

  

  

 8,232

  

  

  

 5.97

 %

 

 
 Total interest-earning assets

  

  

  

 678,903

  

  

 $

  

 9,388

  

  

  

 5.53

 %

  

  

  

 662,232

  

  

 $

  

 9,055

  

  

  

 5.47

 %

 

 
 Other assets

  

  

  

 53,753

  

  

  

  

  

  

  

  

  

  

  

 53,328

  

  

  

  

  

  

  

  

 

 
 Total assets

  

 $

  

 732,656

  

  

  

  

  

  

  

  

  

 $

  

 715,560

  

  

  

  

  

  

  

  

 

 
  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Interest-bearing liabilities:

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Demand & NOW accounts

  

 $

  

 63,572

  

  

 $

  

 14

  

  

  

 0.09

 %

  

 $

  

 62,384

  

  

 $

  

 15

  

  

  

 0.10

 %

 

 
 Money market accounts

  

  

  

 153,861

  

  

  

  

 731

  

  

  

 1.90

 %

  

  

  

 156,226

  

  

  

  

 735

  

  

  

 1.88

 %

 

 
 Savings accounts

  

  

  

 50,642

  

  

  

  

 8

  

  

  

 0.06

 %

  

  

  

 51,263

  

  

  

  

 8

  

  

  

 0.06

 %

 

 
 Time deposits

  

  

  

 210,894

  

  

  

  

 1,719

  

  

  

 3.26

 %

  

  

  

 198,245

  

  

  

  

 1,614

  

  

  

 3.26

 %

 

 
 Total interest-bearing deposits

  

  

  

 478,969

  

  

  

  

 2,472

  

  

  

 2.06

 %

  

  

  

 468,118

  

  

  

  

 2,372

  

  

  

 2.03

 %

 

 
 Borrowed funds & other interest-bearing liabilities

  

  

  

 3,105

  

  

  

  

 23

  

  

  

 2.96

 %

  

  

  

 2,342

  

  

  

  

 23

  

  

  

 3.93

 %

 

 
 Total interest-bearing liabilities

  

  

  

 482,074

  

  

 $

  

 2,495

  

  

  

 2.07

 %

  

  

  

 470,460

  

  

 $

  

 2,395

  

  

  

 2.04

 %

 

 
 Other non-interest bearing liabilities

  

  

  

 106,759

  

  

  

  

  

  

  

  

  

  

  

 102,013

  

  

  

  

  

  

  

  

 

 
 Stockholders' equity

  

  

  

 143,823

  

  

  

  

  

  

  

  

  

  

  

 143,087

  

  

  

  

  

  

  

  

 

 
 Total liabilities & stockholders' equity

  

 $

  

 732,656

  

  

  

  

  

  

  

  

  

 $

  

 715,560

  

  

  

  

  

  

  

  

 

 
 Net interest income

  

  

  

  

  

 $

  

 6,893

  

  

  

  

  

  

  

  

  

 $

  

 6,660

  

  

  

  

 

 
 Interest rate spread

  

  

  

  

  

  

  

  

  

  

 3.46

 %

  

  

  

  

  

  

  

  

  

  

 3.43

 %

 

 
 Net interest margin

  

  

  

  

  

  

  

  

  

  

 4.06

 %

  

  

  

  

  

  

  

  

  

  

 4.02

 %

 

  
(1) The tax equivalent adjustment for bank qualified tax exempt municipal securities, using a federal statutory rate of 21%, results in rates of 2.92% and 2.85% for the three months ended June 30, 2026 and March 31, 2026, respectively. Yields above are not presented on a tax equivalent basis.
(2) Annualized.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

 
 

 Selected Quarterly Financial Data

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 As of or For the Three Months Ended

  

 

 
  

  

 June 30, 2026

  

  

 March 31, 2026

  

  

 December 31, 2025

  

  

 September 30, 2025

  

  

 June 30, 2025

  

 

 
  

  

 (Unaudited)

  

 

 
  

  

 (Dollars in thousands, except per share amounts)

  

 

 
 Selected Financial Condition Data:

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Total assets

  

 $

 736,652

  

  

 $

 722,011

  

  

 $

 727,323

  

  

 $

 742,802

  

  

 $

 734,838

  

 

 
 Cash and cash equivalents

  

  

 72,237

  

  

  

 61,607

  

  

  

 64,280

  

  

  

 83,638

  

  

  

 75,367

  

 

 
 Securities, at fair value

  

  

 53,567

  

  

  

 54,179

  

  

  

 56,138

  

  

  

 56,049

  

  

  

 55,323

  

 

 
 Loans receivable, net

  

  

 558,317

  

  

  

 553,879

  

  

  

 555,441

  

  

  

 552,611

  

  

  

 552,389

  

 

 
 Deposits

  

  

 578,240

  

  

  

 566,620

  

  

  

 573,277

  

  

  

 590,345

  

  

  

 627,499

  

 

 
 Long-term debt

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 2,000

  

  

  

 2,000

  

 

 
 Stockholders’ equity

  

  

 144,761

  

  

  

 142,378

  

  

  

 141,639

  

  

  

 139,306

  

  

  

 92,884

  

 

 
  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Condensed Statements of Income:

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Interest income

  

 $

 9,388

  

  

 $

 9,055

  

  

 $

 9,457

  

  

 $

 9,351

  

  

 $

 9,107

  

 

 
 Interest expense

  

  

 2,495

  

  

  

 2,395

  

  

  

 2,835

  

  

  

 2,996

  

  

  

 2,985

  

 

 
 Net interest income

  

  

 6,893

  

  

  

 6,660

  

  

  

 6,622

  

  

  

 6,355

  

  

  

 6,122

  

 

 
 Provision for credit losses

  

  

 119

  

  

  

 (113

 )

  

  

 40

  

  

  

 (269

 )

  

  

 —

  

 

 
 Net interest income after provision for credit losses

  

  

 6,774

  

  

  

 6,773

  

  

  

 6,582

  

  

  

 6,624

  

  

  

 6,122

  

 

 
 Total non-interest income

  

  

 749

  

  

  

 703

  

  

  

 683

  

  

  

 1,065

  

  

  

 800

  

 

 
 Total non-interest expense

  

  

 4,873

  

  

  

 5,123

  

  

  

 4,920

  

  

  

 4,843

  

  

  

 4,625

  

 

 
 Income before income taxes

  

  

 2,650

  

  

  

 2,353

  

  

  

 2,345

  

  

  

 2,846

  

  

  

 2,297

  

 

 
 Income tax expense

  

  

 477

  

  

  

 430

  

  

  

 411

  

  

  

 487

  

  

  

 378

  

 

 
 Net income

  

 $

 2,173

  

  

 $

 1,923

  

  

 $

 1,934

  

  

 $

 2,359

  

  

 $

 1,919

  

 

 
 Basic and diluted earnings per share(1)

  

 $

 0.29

  

  

 $

 0.26

  

  

 $

 0.26

  

  

 $

 0.32

  

  

 $

 0.25

  

 

 
 Dividends declared and paid per share(1)

  

 $

 0.09

  

  

 $

 0.09

  

  

 $

 0.09

  

  

 $

 0.09

  

  

 $

 —

  

 

 
  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Selected Financial Ratios:

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Return on average assets(2)

  

  

 1.19

 %

  

  

 1.07

 %

  

  

 1.04

 %

  

  

 1.28

 %

  

  

 1.11

 %

 

 
 Return on average equity(2)

  

  

 6.04

 %

  

  

 5.38

 %

  

  

 5.49

 %

  

  

 7.31

 %

  

  

 8.37

 %

 

 
 Average interest-earning assets to average interest-bearing liabilities

  

  

 140.83

 %

  

  

 140.76

 %

  

  

 138.60

 %

  

  

 139.79

 %

  

  

 128.12

 %

 

 
 Interest rate spread(2)

  

  

 3.46

 %

  

  

 3.43

 %

  

  

 3.22

 %

  

  

 3.02

 %

  

  

 3.32

 %

 

 
 Net interest margin(2)

  

  

 4.06

 %

  

  

 4.02

 %

  

  

 3.85

 %

  

  

 3.72

 %

  

  

 3.84

 %

 

 
 Efficiency ratio

  

  

 63.77

 %

  

  

 69.58

 %

  

  

 67.35

 %

  

  

 65.26

 %

  

  

 66.82

 %

 

 
  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Asset Quality Ratios:

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Non-performing loans as a percent of loans at amortized cost

  

  

 0.25

 %

  

  

 0.28

 %

  

  

 0.30

 %

  

  

 0.33

 %

  

  

 0.32

 %

 

 
 Non-performing assets as a percent of total assets

  

  

 0.20

 %

  

  

 0.22

 %

  

  

 0.23

 %

  

  

 0.25

 %

  

  

 0.24

 %

 

 
 Allowance for credit losses on loans as a percent of loans at amortized cost

  

  

 0.84

 %

  

  

 0.86

 %

  

  

 0.87

 %

  

  

 0.87

 %

  

  

 0.93

 %

 

 
 Allowance for credit losses on loans as a percent of non-performing loans

  

  

 331.85

 %

  

  

 302.76

 %

  

  

 290.71

 %

  

  

 265.57

 %

  

  

 290.53

 %

 

 
  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Share Information:

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Common stock, number of shares outstanding(1)

  

  

 7,863,818

  

  

  

 7,863,388

  

  

  

 7,825,388

  

  

  

 7,825,501

  

  

  

 7,803,102

  

 

 
 Treasury stock, number of shares held(1)

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 1,459,691

  

 

 
 Book value per share(1)

  

 $

 18.41

  

  

 $

 18.11

  

  

 $

 18.10

  

  

 $

 17.80

  

  

 $

 11.90

  

 

 
 Tier 1 leverage ratio (Bank-only)

  

  

 17.43

 %

  

  

 17.54

 %

  

  

 16.65

 %

  

  

 16.34

 %

  

  

 14.37

 %

 

 
 Total risk-based capital ratio (Bank-only)

  

  

 24.04

 %

  

  

 23.81

 %

  

  

 23.51

 %

  

  

 22.76

 %

  

  

 18.94

 %

 

 (1) Share and per share information reflects the effects of the Company's conversion and related stock offering for all periods presented, as applicable. 
(2) Annualized