DUNKERQUE, NY, February 5, 2021 (GLOBE NEWSWIRE) – Lake Shore Bancorp, Inc. (the “Company”) (NASDAQ Global Market: LSBK), the holding company of Lake Shore Savings Bank (the “Bank”), announced that the board of directors of the company has approved a cash dividend of $ 0.13 per share on its common stock, payable on March 15, 2021, to shareholders of record on February 26, 2021. Based on the closing price of the Company share of $ 13.50 on February 3, 2021, the implied dividend yield of the Company’s common stock is currently 3.85%.
On February 3, 2021, Lake Shore, MHC (the “MHC”), which owns 3,636,875 shares, or 62.5% of the total outstanding common shares of the Company, held a special meeting of its members (the members are depositors of the Lake Shore Savings Bank). During this special meeting, members approved a proposal for MHC to waive its right to receive dividends declared by the Company on its common shares (up to a total amount of $ 0.54 per share) during the next 12 months. Over 55% of eligible votes were cast. Of the votes cast, 96.5% were in favor of the proposal.
Following receipt of membership approval, the MHC will seek the Federal Reserve Board’s non-objection to the dividend waivers by the MHC for the next 12 months. If this non-objection is obtained from the Federal Reserve Board before March 15, 2021, the expected date of payment of the dividend, the MHC intends to waive its receipt of the dividend.
“We appreciate the annual efforts of our members to vote in favor of the waiver of dividends from MHC,” said Daniel P. Reininga, President and CEO. “This vote allows us to preserve the capital of the intermediary holding company and the Bank so that we can leverage our resources to meet the banking needs of our customers and communities. “
Lake Shore Bancorp, Inc. (NASDAQ Global Market: LSBK) is the intermediary holding company of Lake Shore Savings Bank, a federally chartered, community-based financial institution headquartered in Dunkirk, New York. The Bank has eleven full-service branches in western New York, with five branches in Chautauqua County, New York, and six in Erie County, N.Y. from New York. The Company had total assets of $ 682.2 million and total deposits of $ 560.3 million as at December 31, 2020. The Bank offers a wide range of loan and deposit services to individuals and businesses. The common shares of the Company are traded on the NASDAQ Global Market under the name “LSBK”. Additional information about the Company is available at www.lakeshoresavings.com.
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on current expectations, estimates and projections concerning the Company and the Bank’s industry, as well as on the beliefs and assumptions of the direction. Words such as anticipate, expect, intend, foresee, believe, estimate and variations of these words and phrases are intended to identify forward-looking statements. Such statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual results may differ materially from those expressed or anticipated in these forward-looking statements. The Company and the Bank do not undertake to publicly update forward-looking statements, whether as a result of new information or otherwise.
Investor / media contact
Rachel A. Foley
Lake Shore Bancorp, Inc.
31 Fourth Street East
Dunkirk, New York 14048
(716) 366-4070 ext 1020