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.