Lake Shore Bancorp, Inc. Reports Results for the Fourth Quarter and Fiscal Year 2008 and Announces Withdrawal of TARP Application

Business Wire, Feb 13, 2009

Total assets were $407.8 million at December 31, 2008 compared to $357.8 million at December 31, 2007. The increase in total assets was primarily due to a $21.8 million increase in loans, net, a $6.9 million increase in securities available for sale and an $18.9 million increase in cash and cash equivalents. The increase in cash and cash equivalents is primarily due the receipt of approximately $11.0 million of deposited funds at the new branch office opened in December 2008 that had not yet been deployed in lending or investment activities as of December 31, 2008. Asset growth was funded by a $52.4 million increase in deposits during the year ended December 31, 2008.

Lake Shore Bancorp is the parent company of Lake Shore Savings Bank, a community-oriented financial institution operating nine full-service branch locations in western New York offering a broad array of retail and commercial lending and deposit services. Traded on the NASDAQ Global Market as LSBK, Lake Shore Bancorp can also be found on the web at www.lakeshoresavings.com.

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.

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