Form 4: Lake Shore Bancorp Director Receives Equity Awards

Lake Shore Bancorp Director Michelle M. DeBergalis was granted 3,868 restricted shares and 8,220 stock options as part of her compensation.

Summary

• Michelle M. DeBergalis, a Director at Lake Shore Bancorp, Inc. (LSBK), reported the acquisition of equity awards on December 9, 2025.
• She acquired 3,868 shares of restricted common stock at a price of $0.00 per share, which are scheduled to vest on December 9, 2026.
• Additionally, DeBergalis was granted 8,220 stock options with an exercise price of $14.85 per share.
• These stock options have an expiration date of December 9, 2035, and will vest at a rate of 20% per year commencing on December 9, 2026.
• Following these transactions, DeBergalis directly beneficially owns 8,379 shares of common stock and 8,220 derivative securities (stock options).
• Her indirect beneficial ownership includes 157 shares of common stock held in an IRA.
• The total direct beneficial ownership of common stock includes 647 shares of restricted stock which vest on March 12, 2026, in addition to the newly acquired 3,868 shares vesting on December 9, 2026.

Sentiment

Score: 6

Explanation: The filing reports a routine compensation grant to a director, which is generally a neutral to slightly positive event as it aligns management interests with shareholders. There are no immediate negative or significantly positive implications for the company's operational or financial performance.

Positives

• The grant of restricted stock and stock options aligns the director's financial interests with those of the shareholders, incentivizing long-term performance.
• Equity compensation is a standard practice for attracting and retaining qualified board members.

Future Outlook

The future outlook indicates a structured vesting schedule for both restricted stock and stock options, with shares vesting on specific dates in 2026 and options vesting annually over five years starting in 2026, expiring in 2035. This suggests a long-term incentive plan for the director.

Industry Context

The granting of equity awards, such as restricted stock and stock options, to directors is a common practice within the banking and broader financial services industry. It serves as a key component of executive and director compensation packages, aiming to align leadership interests with long-term shareholder value creation.

Comparison to Industry Standards

• The use of restricted stock and stock options for director compensation is a standard practice across the financial sector, including regional banks like Lake Shore Bancorp.
• The vesting schedules, typically over several years, are consistent with industry norms designed to promote long-term commitment and performance.

Stakeholder Impact

• Shareholders: The equity awards align the director's interests with shareholders, potentially fostering decisions that enhance long-term shareholder value.
• Employees: No direct impact on general employees is indicated by this filing.

Next Steps

• Monitoring the vesting of the 647 restricted shares on March 12, 2026.
• Monitoring the vesting of the 3,868 restricted shares on December 9, 2026.
• Monitoring the annual vesting of the 8,220 stock options commencing on December 9, 2026, through December 9, 2030.

Key Dates

Recommendation

This Form 4 filing details a routine equity compensation grant to a director, which is a standard practice and does not provide sufficient new information to warrant a change in investment recommendation. While it aligns the director's interests with shareholders, it does not indicate any significant operational or financial shifts for Lake Shore Bancorp, Inc. Investors should continue to monitor broader company performance and market conditions.

Keywords

LSBK, Lake Shore Bancorp, Form 4, insider transaction, equity compensation, restricted stock, stock options, director compensation, banking industry