Form 4: Lake Shore Bancorp Director Acquires Stock, Options

Lake Shore Bancorp, Inc. Director Michelle M DeBergalis acquired 480 restricted shares and 8,220 stock options as part of her compensation.

Summary

• Michelle M DeBergalis, a Director of Lake Shore Bancorp, Inc. (LSBK), acquired 480 shares of restricted common stock on March 18, 2026.
• These restricted shares were acquired at a price of $0.00 and are scheduled to vest on March 18, 2027.
• The director also holds 8,220 stock options with an exercise price of $14.85, which expire on December 9, 2035.
• These stock options will vest at a rate of 20% per year, commencing on December 9, 2026.
• Following these transactions, the director directly beneficially owns 8,859 shares of common stock, which includes 3,868 shares of unvested restricted stock vesting on December 9, 2026, and the newly acquired 480 shares vesting on March 18, 2027.
• An additional 157 shares are indirectly beneficially owned through an IRA.
• The transaction was made pursuant to a Rule 10b5-1(c) plan.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive signal, as it indicates a director's increased equity stake and alignment with shareholder interests, which is generally favorable for corporate governance and long-term value creation.

Positives

• Director Michelle M DeBergalis acquired 480 restricted shares and 8,220 stock options, which aligns her interests with shareholders.
• The acquisition of shares at $0.00 and options with a strike price of $14.85 represents a component of director compensation, incentivizing long-term performance.
• The transaction was pre-planned under a Rule 10b5-1(c) plan, indicating a structured and transparent approach to insider transactions.

Future Outlook

This Form 4 filing does not contain forward-looking statements or guidance regarding the company's future performance. It solely reports an insider transaction.

Industry Context

StockSavvy.ai notes that the acquisition of restricted stock and stock options by a director is a common practice in the banking industry for executive and director compensation. This structure aims to align the interests of the director with the long-term performance of Lake Shore Bancorp, Inc., similar to compensation strategies seen at regional banks like Northwest Bancshares (NWBI) or Community Bank System (CBU).

Comparison to Industry Standards

• The grant of restricted stock and stock options to a director is a standard component of executive and director compensation packages across the financial services industry.
• Many regional banks, such as F.N.B. Corporation (FNB) or Old National Bancorp (ONB), utilize similar equity-based compensation to incentivize long-term value creation and retain key talent.
• The vesting schedules (e.g., 20% per year for options, specific dates for restricted stock) are typical for such grants, designed to encourage sustained commitment and performance over several years.

Related Party Transactions

• The acquisition of restricted stock and stock options by Director Michelle M DeBergalis is a related party transaction, representing compensation from the issuer.

Stakeholder Impact

• Shareholders: Increased alignment of a director's interests with shareholders due to greater equity ownership.
• Employees: No direct impact on general employees mentioned.
• Customers: No direct impact on customers mentioned.
• Suppliers: No direct impact on suppliers mentioned.
• Creditors: No direct impact on creditors mentioned.

Next Steps

• The vesting of 3,868 shares of restricted stock on December 9, 2026.
• The commencement of stock option vesting at 20% per year starting December 9, 2026.
• The vesting of 480 restricted shares on March 18, 2027.

Key Dates

Recommendation

While the director's acquisition of equity is a positive sign of alignment and confidence, this Form 4 filing primarily reports a routine compensation event rather than a discretionary open-market purchase. It reinforces a 'hold' recommendation, as it doesn't present new fundamental information that would significantly alter the investment thesis, but rather confirms ongoing executive incentive structures.

Keywords

Lake Shore Bancorp, LSBK, Form 4, insider transaction, restricted stock, stock options, director compensation, equity acquisition, Rule 10b5-1