Lake Shore, MHC to Seek Member Approval for Dividend Waiver; Lake Shore
Bancorp, Inc. Delays Declaration of Quarterly Dividend
DUNKIRK, N.Y. -- January 18, 2013
Lake Shore Bancorp, Inc. (the “Company”) (NASDAQ Global Market: LSBK), the
holding company for Lake Shore Savings Bank (the “Bank”), today announced that
Lake Shore, MHC (the “MHC”), the mutual holding company that owns 61.4% of the
Company’s outstanding common stock, will hold a special meeting of its members
to vote on a proposal to authorize the MHC to waive its right to receive
dividends aggregating up to $0.28 per share that may be declared by the
Company in the 12 months subsequent to the approval of the proposal by
members. All dividends on the Company’s common stock are declared at the
discretion of the Company’s Board of Directors. The special meeting will be
held on February 26, 2013.
Regulations of the Board of Governors of the Federal Reserve System (the
“Federal Reserve”) prohibit the waiver of dividends by the MHC unless the
waiver has been approved by its members, consisting of depositors of the Bank.
As a result of the timing of the member vote, the Company’s Board of Directors
has determined to delay the declaration of its quarterly cash dividend that
normally would have been declared at the end of January to March 2013.
There can be no assurance that the members will approve the dividend waiver or
that the Federal Reserve will not object to the waiver even if it is approved
by members at the special meeting. If the proposed dividend waiver is not
approved by members or the Federal Reserve, the Board of Directors of the
Company intends to reduce the proposed quarterly dividend from $0.07 per
outstanding share to $0.04 per outstanding share, the amount the Company has
most recently paid.
About Lake Shore
Lake Shore Bancorp, Inc. (NASDAQ Global Market: LSBK) is the parent company of
Lake Shore Savings Bank, a community-oriented financial institution operating
ten full-service branch locations in Western New York. The Company had total
assets of $498.7 million and total deposits of $392.6 million as of September
30, 2012. Headquartered in Dunkirk, New York, Lake Shore has full-service
branch locations in Dunkirk, Fredonia, Jamestown, Lakewood, Westfield, Orchard
Park, East Amherst, Kenmore, Depew and Hamburg, offering a broad range of
retail and commercial lending and deposit services. The Company’s common stock
is traded on the NASDAQ Global Market as “LSBK”. Additional information about
the Company is available at www.lakeshoresavings.com.
This release contains certain forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, that are based on
current expectations, estimates and projections about the Company’s and the
Bank’s industry, and management’s beliefs and assumptions. Words such as
anticipates, expects, intends, plans, believes, estimates and variations of
such words and expressions 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
forecast. Therefore, actual results may differ materially from those expressed
or forecast in such forward-looking statements. The Company and Bank undertake
no obligation to update publicly any forward-looking statements, whether as a
result of new information or otherwise.
Lake Shore Bancorp, Inc.
Rachel A. Foley, 716-366-4070 ext. 1220
Chief Financial Officer
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