Lake Shore Savings & Loan Association said Thursday that it will begin selling nearly 3 million shares of common stock in a new holding company later this month as part of its conversion to a publicly traded company.
The Dunkirk-based thrift received conditional approval from both the Securities and Exchange Commission and the Office of Thrift Supervision to begin the offering of up to 2,975,625 shares of stock in Lake Shore Bancorp to eligible depositors. The proxy statement and offering materials will be mailed to the thrift's depositors on or about Feb. 22.
The plan calls for Lake Shore Bancorp to sell 45 percent of its outstanding shares to the public, with another 2 percent contributed to a new charitable foundation. The rest would be owned by a second "mutual" holding company that will be owned by depositors. Lake Shore Bancorp will own the thrift itself, which will change its name to Lake Shore Savings Bank.
The stock offering will end March 16. The conversion must still be approved by the thrift's depositors at a special meeting, expected to be held during the second week in March. Regulators must also give their final approval.