DUNKIRK, N.Y. - Lake Shore Bancorp, Inc. (NASDAQ:LSBK), the parent company of Lake Shore Savings Bank, with a current market capitalization of $87.24 million and year-to-date returns of 12.04%, has initiated a common stock offering as part of its transition from a mutual holding company to a stock holding company, the firm disclosed today. In conjunction with this change, Lake Shore Savings Bank will convert to a New York commercial bank, adopting the name Lake Shore Bank.
The offering involves up to 5,750,000 shares of common stock at $10.00 each, potentially increasing to 6,612,500 shares based on demand. According to InvestingPro data, the stock currently trades at $15.38, with a P/E ratio of 17.09 and an attractive dividend yield of 4.73%. Eligible depositors of the Bank and the employee stock ownership plan will have the opportunity to purchase these shares first. Any remaining shares following the subscription offering may be available in a community offering, with priority given to residents of Chautauqua, Erie, and Cattaraugus counties in New York, followed by current public stockholders of Lake Shore Federal Bancorp as of May 5, 2025, and then the general public.
Lake Shore Bancorp must sell a minimum of 4,250,000 shares to successfully complete the conversion and offering. The process also hinges on securing final regulatory approvals, the consent of Lake Shore Federal Bancorp stockholders and Lake Shore, MHC members, along with other standard closing conditions.
The subscription offering is scheduled to run from May 27, 2025, through June 24, 2025, excluding bank holidays, with Raymond James & Associates, Inc. serving as the marketing agent for the offering.
Lake Shore Federal Bancorp, the mid-tier holding company of Lake Shore Savings Bank, operates ten full-service branches in Western New York. The company offers a variety of retail and commercial lending and deposit services. Its shares are traded on the NASDAQ Global Market under the symbol LSBK. InvestingPro analysis reveals the company maintains a FAIR financial health score, with multiple additional insights available to subscribers. Get access to detailed financial metrics and expert analysis with an InvestingPro subscription.
The announcement contains forward-looking statements subject to risks, contingencies, and uncertainties, such as the timing and completion of the proposed transaction, regulatory and shareholder approvals, and customary closing conditions.
This press release does not constitute an offer to sell or a solicitation to buy common stock, which is only made by the prospectus when accompanied by a stock order form. The shares are not FDIC-insured or backed by any other government agency.
The information in this article is based on a press release statement from Lake Shore Bancorp, Inc.
In other recent news, Lake Shore Bancorp has announced the results of its Annual Meeting of Shareholders, which included the election of three directors for a term expiring in 2028. The elected directors are Kevin M. Sanvidge, Sharon E. Brautigam, and Ann M. Segarra. Shareholders also approved the advisory vote on executive compensation and ratified the appointment of Yount, Hyde & Barbour, P.C. as the company’s independent auditor for the fiscal year ending December 31, 2025. Additionally, Lake Shore Bancorp announced the termination of a regulatory agreement with the Federal Reserve Bank of Philadelphia, initially established in June 2023. This development indicates that the company has met the conditions set by the regulator, as confirmed by a recent SEC filing. Furthermore, the Federal Reserve Board has ended its enforcement action against Lake Shore Bancorp and its mid-tier holding company, Lake Shore MHC. These recent developments reflect Lake Shore Bancorp’s compliance with regulatory standards and may enhance its operational flexibility.
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