Lake Shore Bancorp, Inc. , the holding company for Lake Shore Savings Bank, announced that the company's board of directors approved a $0.07 per share cash dividend on its common stock, payable on March 29 to shareholders of record as of March 11. Based on the company's closing stock price of $10.71 on Feb. 26 the implied dividend yield for the company's common stock is currently 2.61 percent.
On February 26, Lake Shore, MHC, which holds 3,636,875 shares, or 61.4 percent of the company's total outstanding stock, obtained the approval of its members (depositors of Lake Shore Savings Bank) at a special meeting of members to waive the MHC's receipt of this dividend, as well as on any future quarterly dividends declared by the company on its common stock (up to $0.07 per share) during the 12 months subsequent to the members' approval of the dividend waiver proposal.
Historically, the MHC has waived its right to receive dividends declared on its shares of the company's common stock. The Federal Reserve Board has adopted interim final regulations that impose new conditions on the ability of mutual holding companies to waive the receipt of dividends from their subsidiaries such as the requirement to obtain the approval of the MHC's members for the MHC to waive the receipt of dividends over a 12 month period. Following the receipt of member approval, the MHC has applied to the Federal Reserve Board for its non-objection to dividend waivers by the MHC for the next 12 months. If this non-objection is obtained from the Federal Reserve Board prior to March 29 the expected payment date of the current dividend, the MHC intends to waive its receipt of the dividend.
Lake Shore Bancorp, Inc.
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 $482 million and total deposits of $379 million as of Dec. 31. 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 array of retail and commercial lending and deposit services. Additional information about the company is available at www.lakeshoresavings.com.