Lake Shore Bancorp, Inc. Announces Fourth Quarter 2021 Dividend

Rhea-AI Summary

Lake Shore Bancorp, Inc. (NASDAQ: LSBK) announced a cash dividend of $0.16 per share on February 11, 2022, payable on March 17, 2022, to shareholders of record by February 24, 2022. With a closing stock price of $14.86, this results in an implied dividend yield of 4.31%. Additionally, members of Lake Shore, MHC approved a waiver for dividend rights for the next 12 months, allowing better resource utilization for community banking needs. The waiver received over 96.1% approval from voting members.

Positive

• Dividend of $0.16 per share, indicating strong shareholder returns.
• Implied dividend yield of 4.31%, attractive for income-focused investors.
• Approval of dividend waiver allows better resource allocation for community support.

Negative

• None.

DUNKIRK, N.Y., Feb. 11, 2022 (GLOBE NEWSWIRE) -- Lake Shore Bancorp, Inc. (the “Company”) (NASDAQ Global Market: LSBK), the holding company for Lake Shore Savings Bank (the “Bank”), announced that the Company’s Board of Directors approved a $0.16 per share cash dividend on its common stock, payable on March 17, 2022, to shareholders of record as of February 24, 2022. Based on the Company’s closing stock price of $14.86 on February 10, 2022, the implied dividend yield for the Company’s common stock is currently 4.31%.

On February 9, 2022, Lake Shore, MHC (the “MHC”), which holds 3,636,875 shares, or 63.9% 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 $0.68 per share) during the next 12 months. More than 56% of the votes eligible were cast. Of the votes cast, 96.1% 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 17, 2022, the expected dividend payment date, the MHC intends to waive its receipt of the dividend.

“We appreciate the sustained support from our depositors to maintain the MHC dividend waiver for ten consecutive years,” stated Daniel P. Reininga, President and CEO. “The depositor vote for the dividend waiver allows the Bank and its mid-tier holding company to better utilize its resources to support the banking needs of our customers and communities.”

Company Profile
Lake Shore Bancorp, Inc. (NASDAQ Global Market: LSBK) is the mid-tier holding company of Lake Shore Savings Bank, a federally chartered, community-oriented financial institution headquartered in Dunkirk, New York. The Bank has eleven full-service branch locations in Western New York, with five locations in Chautauqua County, New York and six locations in Erie County, New York. The Company had total assets of $714.1 million and total deposits of $593.7 million as of December 31, 2021. The Bank offers 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.

Safe-Harbor
This release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, that are based on current expectations, estimates and projections about the Company’s and the Bank’s industry, and management’s beliefs and assumptions. Words such as anticipates, expects, intends, plans, believes, estimates and variations of such words and expressions are intended to identify forward-looking statements. Such statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to forecast. Therefore, actual results may differ materially from those expressed or forecast in such forward-looking statements. The Company and Bank undertake no obligation to update publicly any forward-looking statements, whether as a result of new information or otherwise.

Investor/Media Contact

Rachel A. Foley
Chief Financial Officer
Lake Shore Bancorp, Inc.
31 East Fourth Street
Dunkirk, New York 14048
(716) 366-4070 ext. 1020

FAQ

What is the dividend amount announced by Lake Shore Bancorp (LSBK)?

Lake Shore Bancorp announced a dividend of $0.16 per share.

When will the dividend be paid to shareholders of LSBK?

The dividend will be payable on March 17, 2022.

What is the record date for receiving the dividend from LSBK?

The record date for the dividend is February 24, 2022.

What is the dividend yield for LSBK based on the recent announcement?

The implied dividend yield for LSBK is 4.31%.

Why did Lake Shore, MHC waive its right to receive dividends?

Lake Shore, MHC waived its right to enhance resource utilization for supporting banking needs.