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Lake Shore announces fourth-quarter dividend for 2020

Lake Shore Bancorp, Inc., the holding company for Lake Shore Savings Bank, announced that the Company’s Board of Directors approved a 13-cent per share cash dividend on its common stock, payable on March 15, to shareholders of record as of Feb. 26. Based on the Company’s closing stock price of $13.50 on February 3, 2021, the implied dividend yield for the Company’s common stock is currently 3.85%.

On Feb. 3, Lake Shore, MHC (the “MHC”), which holds 3,636,875 shares, or 62.5% of the company’s total outstanding common stock, held a special meeting of its members (the members are depositors of Lake Shore Savings Bank). During this special meeting, the members approved a proposal for the MHC to waive its right to receive dividends declared by the company on its common stock (up to an aggregated amount of $0.54 per share) during the next 12 months. More than 55% of the votes eligible were cast. Of the votes cast, 96.5% were in favor of the proposal.

Following the receipt of member approval, the MHC will apply 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 15, the expected dividend payment date, the MHC intends to waive its receipt of the dividend.

“We appreciate the annual efforts of our members to vote for the MHC dividend waiver,” stated Daniel P. Reininga, President and CEO. “This vote allows us to preserve capital at the mid-tier holding company and at the Bank so that we can leverage our resources to support the banking needs of our customers and communities.”

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