Lake Shore Bancorp (LSBK) is a federally chartered savings institution with total assets of $722.0M at March 31, 2026. Under a liquidation lens, the recovery posture is positive but compressed relative to stated book equity of $142.4M, primarily because the largest asset class—loans at net carrying value of $553.9M—carries real estate concentration risk and the investment portfolio carries $10.6M of unrealized losses already reflected in AOCI. Cash and equivalents of $61.6M recover at par. The AFS securities portfolio has an amortized cost of $64.8M versus fair value of $54.2M, a $10.6M haircut that is already embedded in accumulated OCI of negative $8.4M net of tax. At a 50–60% recovery assumption on net PP&E of $6.9M, recoverable value is $3.5–4.2M versus book. Bank-owned life insurance of $31.8M is typically recoverable near face value in liquidation given the nature of the policies. Intangibles are immaterial. On the liability side, total deposits of $566.6M stay at face value; there are no FHLBNY advances outstanding. Off-balance-sheet credit reserve (unfunded commitment reserve) of $325K and accrued liabilities of $10.7M are also face-value obligations. The institution carries no long-term debt and no pension obligation is disclosed. The CBLR of 17.54% at March 31, 2026 versus the 9% regulatory minimum reflects substantial capital surplus. The allowance for credit losses declined to $4.8M (0.86% of amortized cost loans) from $4.9M at December 31, 2025 and $5.2M at March 31, 2025, driven by lower reserve rates; net charge-offs were negligible at $8K for Q1 2026. Non-performing assets are $1.6M (0.22% of assets), down from $1.7M at December 31, 2025—low by any measure. The primary liquidation risk factor is the AFS portfolio's $10.6M gross unrealized loss position (154 securities in continuous loss position over 12 months), which is already mark-to-market through OCI. Total deposits declined $6.7M QoQ, led by money market (-$7.3M) and non-interest bearing (-$5.1M), partially offset by time deposit growth; uninsured deposits fell to 10.0% of total from 11.3%, reducing run risk. The filing discusses MULOC issuance of $2.5M to FHLBNY for municipal deposits but does not separately tag this in XBRL. No pension, no goodwill, no significant operating lease stack identified in the XBRL. Net liquidation recovery to equity is positive but likely in the $120–135M range after marking loans to fair value ($548.3M per filing's own fair value disclosure vs. $553.9M carrying), securities to fair value (already done), and applying standard PP&E haircuts—below stated book of $142.4M by roughly 5–15%.
▼ Community Notes