Lake Shore Bancorp, Inc. Proposes Quarterly Dividend
January 04, 2019 at 04:24 pm
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On January 3, 2019, Lake Shore Bancorp, Inc. (the Company), the holding company for Lake Shore Savings Bank, announced that Lake Shore, MHC (the MHC), the mutual holding company that owns 60.4% of the Companys outstanding common stock as of September 30, 2018, 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 $0.48 per share that may be declared by the Company in the 12 months subsequent to the approval of the proposal by members. The special meeting will be held on February 6, 2019. There can be no assurance that the members will approve the dividend waiver or that the Board of Governors of the Federal Reserve System (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 objected to by the Federal Reserve, the Board of Directors of the Company intends to reduce the proposed quarterly dividend from $0.12 per outstanding share to $0.06 per outstanding share.
Lake Shore Bancorp, Inc. is the mid-tier holding company of Lake Shore Savings Bank (the Bank), a federally chartered, community-oriented financial institution headquartered in Dunkirk, New York. The Bank has 11 full-service branch locations in Western New York, including five in Chautauqua County and six in Erie County. The Bank offers a range of retail and commercial lending and deposit services. The Bankâs principal business consists of attracting retail deposits from the general public in the areas surrounding its branch offices and investing those deposits, together with funds generated from operations, primarily in commercial real estate loans, one-to four-family residential mortgage loans, home equity lines of credit and, to a lesser extent, commercial business loans, consumer loans, and investment securities. Its primary sources of funds for lending and investments are deposits, borrowings, brokered deposits, receipts of principal and interest payments on loans and securities.