Lake Shore Bancorp, Inc., the holding company for Lake Shore Savings Bank, recenty announced that Lake Shore, MHC, the mutual holding company that owns 61.4 percent 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 Feb. 26.
Regulations of the Board of Governors of the Federal Reserve System 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.
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. 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 Sept. 30. Headquartered in Dunkirk, 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.