Material Event - Form 8-K

Item 8.01 Other Events.

On April 25, 2024, Lake Shore Bancorp, Inc. (the "Company") received the written approval from the Federal Reserve Bank of Philadelphia (the "Reserve Bank") to pay a cash dividend of $0.18 per share to its stockholders. In addition, the Reserve Bank also issued a non-objection to Lake Shore, MHC (the "MHC"), the Company's mutual holding company parent, to waive the MHC's receipt of cash dividends on its common stock up to $0.72 per share during the twelve-month period ending April 2, 2025 (the "Dividend Waivers"). As the Company has previously disclosed, the MHC received the approval of its members (depositors of Lake Shore Savings Bank) for the Dividend Waivers on April 2, 2024.

On April 25, 2024, the Company's Board of Directors declared a cash dividend of $0.18 per share on its outstanding common stock. The dividend is expected to be paid on May 10, 2024 to stockholders of record as of May 6, 2024.

The MHC which holds 3,636,875, or 64.0%, of the Company's total outstanding common stock as of March 31, 2024, has elected to waive receipt of the dividend on its shares.