Wiltser/E+ via Getty Images Lake Shore Bancorp (NASDAQ: LSBK ) is the bank holding company of the Lake Shore Savings Bank, a federally chartered bank from the Buffalo area. The bank has sustained a high market share in a concentrated market. It has grown deposits, improved profitability, and increased EPS above assets. Further, the company did very well during the GFC. It is mostly deposit financed, has a resilient loan book, and a successful mortgage origination operation. Unfortunately, the company has received a cease and desist order from the OCC related to failures in its fraud prevention and anti-money laundering systems. The company has effected several key management changes in the past few months and has recorded extra expenses related to this compliance. Although I do not believe the OCC orders imply a significant risk, compliance requires higher future expenses. If the bank’s interest costs also increase, profitability will suffer in the medium term. I do not consider LSBK an opportunity at these prices. Note: Unless otherwise stated, all information has been obtained from LSBK’s filings with the SEC . LSBK is used interchangeably for the bank and the bank holding company. Business description A local federally chartered bank […]
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
