Lake Shore Bancorp, Inc. - Amendment to Schedule 13D Filing

This filing is the third amendment to the Schedule 13D filed by Joseph Stilwell and associated entities (Stilwell Activist Fund, L.P., Stilwell Activist Investments, L.P., Stilwell Partners, L.P., and Stilwell Value LLC), collectively referred to as the "Group." The amendment reports on a Standstill Agreement entered into on March 17, 2026, with Lake Shore Bancorp, Inc. (the "Issuer"). Pursuant to this agreement, Dennis Pollack has been appointed to the Issuer's board of directors, and the Issuer has agreed to nominate him for election at the upcoming 2026 annual meeting. Consequently, the Group has withdrawn its nomination of Timothy J. Andruschat and a previously submitted stockholder proposal. The Group beneficially owns 773,675 shares of the Issuer's common stock, representing approximately 9.9% of the outstanding shares. The Group's primary purpose for acquiring shares is to profit from market price appreciation by asserting shareholder rights, believing the Issuer's assets are undervalued. The Standstill Agreement imposes certain restrictions on the Group's actions, including limitations on soliciting proxies, initiating shareholder proposals, or acquiring additional shares, while the Issuer agrees to board representation for the Group's nominee.