Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2024

Fair Value of Financial Instruments [Abstract]

Fair Value of Assets Measured on Recurring Basis


	Fair Value Measurements at December 31, 2024
				Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Other Unobservable Inputs
	Fair Value			(Level 1)		(Level 2)		(Level 3)
		(Dollars in thousands)
Measured at fair value on a recurring basis:
Securities:
Debt Securities
U.S. government agencies	$		1,851	$	—	$	1,851	$	—
Municipal bonds			32,288		—		32,288		—
Mortgage-backed securities:
Collateralized mortgage obligations-private label			9		—		9		—
Collateralized mortgage obligations-government sponsored entities			8,942		—		8,942		—
Government National Mortgage Association			50		—		50		—
Federal National Mortgage Association			9,013		—		9,013		—
Federal Home Loan Mortgage Corporation			4,240		—		4,240		—
Asset-backed securities:
Private label			28		—		28		—
Government sponsored entities			1		—		1		—
Total Debt Securities			56,422		—		56,422		—
Equity securities			73		73		—		—
Total Securities	$		56,495	$	73	$	56,422	$	—


	Fair Value Measurements at December 31, 2023
				Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Other Unobservable Inputs
	Fair Value			(Level 1)		(Level 2)		(Level 3)
		(Dollars in thousands)
Measured at fair value on a recurring basis:
Securities:
Debt Securities
U.S. government agencies	$		1,874	$	—	$	1,874	$	—
Municipal bonds			33,050		—		33,050		—
Mortgage-backed securities:
Collateralized mortgage obligations-private label			10		—		10		—
Collateralized mortgage obligations-government sponsored entities			10,400		—		10,400		—
Government National Mortgage Association			55		—		55		—
Federal National Mortgage Association			10,189		—		10,189		—
Federal Home Loan Mortgage Corporation			4,813		—		4,813		—
Asset-backed securities:
Private label			31		—		31		—
Government sponsored entities			2		—		2		—
Total Debt Securities			60,424		—		60,424		—
Equity securities			18		18		—		—
Total Securities	$		60,442	$	18	$	60,424	$	—

Assets Measured at Fair Value on Nonrecurring Basis


	Fair Value Measurements
				Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Other Unobservable Inputs
	Fair Value			(Level 1)		(Level 2)		(Level 3)
		(Dollars in thousands)
Measured at fair value on a non-recurring basis:

At December 31, 2024
Mortgage servicing rights	$		177	$	—	$	—	$	177

At December 31, 2023
Collateral-dependent loans	$		1,369	$	—	$	—	$	1,369
Foreclosed real estate			34		—		—		34
Mortgage servicing rights			191		—		—		191

Additional Quantitative Information About Assets Measured at Fair Value


	Quantitative Information about Level 3 Fair Value Measurements
(Dollars in thousands)	Fair Value Estimate		Valuation Technique	Unobservable Input	Range			Weighted Average
At December 31, 2024
Mortgage servicing rights	$	177	Discounted Cash Flow Model (1)	Servicing Fees		0.25	%		0.25	%
				Servicing Costs		0.10	%		0.10	%
				Estimated Life of Loans	5.17 - 6.17 years			5.67 years


At December 31, 2023
Collateral-dependent loans	$	1,369	Appraisal of collateral (2)	Direct Disposal Costs (3)	8.00-10.00%				9.75	%
Foreclosed real estate		34	Appraisal of collateral (2)	Direct Disposal Costs (3)		8.00	%		8.00	%
Mortgage servicing rights		191	Discounted Cash Flow Model (1)	Servicing Fees		0.25	%		0.25	%
				Servicing Costs		0.09	%		0.09	%
				Estimated Life of Loans	5.32 years			5.32 years

(1)

The fair value is based on a discounted cash flow model. The model’s key assumptions are the estimated life of loans sold with servicing retained and the estimated cost to service the loan.

(2)

Fair value is generally determined through independent third-party appraisals of the underlying collateral, which generally includes various Level 3 inputs which are not observable.

(3)

The fair value basis of foreclosed real estate may be adjusted to reflect management estimates of disposal costs including, but not necessarily limited to, real estate brokerage commissions, legal fees, and delinquent property taxes.

Carrying Amount and Estimated Fair Value of Financial Instruments


	Fair Value Measurements at December 31, 2024
	Carrying		Estimated		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Other Unobservable Inputs
	Amount		Fair Value		(Level 1)		(Level 2)		(Level 3)
	(Dollars in thousands)
Financial assets:
Cash and cash equivalents	$	33,131	$	33,131	$	33,131	$	—	$	—
Securities		56,495		56,495		73		56,422		—
Federal Home Loan Bank stock		1,157		1,157		—		1,157		—
Loans receivable, net		544,620		525,728		—		—		525,728
Accrued interest receivable		2,819		2,819		—		2,819		—
Bank-owned life insurance		29,340		29,340		—		29,340		—
Mortgage servicing rights		177		177		—		—		177
Financial liabilities:
Deposits		572,978		572,082		—		572,082		—
Long-term debt		10,250		10,199		—		10,199		—
Accrued interest payable		99		99		—		99		—


	Fair Value Measurements at December 31, 2023
	Carrying		Estimated		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Other Unobservable Inputs
	Amount		Fair Value		(Level 1)		(Level 2)		(Level 3)
	(Dollars in thousands)
Financial assets:
Cash and cash equivalents	$	53,730	$	53,730	$	53,730	$	—	$	—
Securities		60,442		60,442		18		60,424		—
Federal Home Loan Bank stock		2,293		2,293		—		2,293		—
Loans receivable, net		555,828		530,735		—		—		530,735
Accrued interest receivable		2,835		2,835		—		2,835		—
Bank-owned life insurance		29,355		29,355		—		29,355		—
Mortgage servicing rights		191		191		—		—		191
Financial liabilities:
Deposits		590,924		589,243		—		589,243		—
Long-term debt		35,250		34,757		—		34,757		—
Accrued interest payable		829		829		—		829		—

LAKE SHORE BANCORP, INC. 10-K