Please join us in taking a closer look at Lake Shore Bancorp, Inc. (LSBK).
LSBK is a $711m asset, 12 branch bank in the greater Buffalo MSA.
Their deposit franchise features 20% interest-free deposits and a cost of total deposits of 40bps. The loan book is 45/55% consumer residential/commercial with 20% of loans in multi-family.
LSBK's market cap is $84.5m with 63% of the stock owned by the mutual holding company (MHC). Should LSBK decide to sell the MHC stock at the current stock price of the traded stock, LSBK stock would be trading at 64% of fully-converted tangible book value and would have over 17% capital-to-assets.
As a partially-public company, LSBK has not done acquisitions, has been repurchasing shares and pays a strong dividend of almost 4%.