Lake Shore Savings Bank files an application to convert to a National Bank Charter
Lake Shore Savings Bank, the wholly-owned subsidiary of Lake Shore Bancorp, Inc., has filed an application with its regulator, the Office of the Comptroller of the Currency, to convert the Bank’s charter from a federal savings bank to a national bank under the name “Lake Shore Bank, National Association.” The purpose of the charter conversion is to allow the Bank to engage in business activities authorized for national banks, including establishing deposit and account relationships with New York municipalities and other public entities.
“Currently, New York State municipal law does not permit municipal or public entities such as, school districts, public libraries or industrial development agencies, to have deposit relationships with savings banks operating in New York State,” stated Daniel P. Reininga, President and CEO. “A national bank charter will allow the Bank to deepen its relationships in the communities that we serve and allow municipalities to deposit funds with a locally headquartered bank.”
In connection with the Bank’s charter conversion, the Company, and its mutual holding company parent, Lake Shore, MHC, will reincorporate in Maryland and Delaware, respectively, and have filed applications with the Board of Governors of the Federal Reserve System to become bank holding companies. Both the Bank charter conversion and the holding company charter conversions are subject to regulatory approval. Following regulatory approvals, the Company will remain in the public mutual holding company structure with the same ownership percentages that existed prior to the charter conversions.
“The potential charter conversions will have no impact on the Bank’s day-to-day operations or to customer accounts or account balances,” stated Reininga. “Furthermore, there will be no impact on shareholder interests. The Bank and Company remain fully committed to providing outstanding banking services and to being loyal members of the communities we serve.”