Lake Shore Bancorp 8K Annual Meeting of Shareholders | LSBK 23 May 07

Lake Shore Bancorp, Inc.

Annual Meeting of Shareholders

May 23, 2007

Exhibit 99.1

Lake Shore Bancorp, Inc.

Safe

Harbor

Statement

This presentation includes "forward looking statements" within the meaning of the

Private Securities Litigation Reform Act of 1995. Such statements include, but are

not limited to, statements concerning future business, revenue and earnings. These

statements are not historical facts or guarantees of future performance, events or

results. There are risks, uncertainties and other factors that could cause the actual

results of the Company to differ materially from the results expressed or implied by

such forward-looking statements. Information on factors that could affect the

Company's business and results is discussed in the Company's periodic reports filed

with the Securities and Exchange Commission. Forward looking statements speak

only as of the date they are made. The Company undertakes no obligation to publicly

update or revise forward looking information, whether as a result of new, updated

information, future events or otherwise.

Lake Shore Bancorp, Inc.

Lake Shore Bancorp Inc.

Corporate Profile

Market Data (as of May 18, 2007)

Ticker Symbol

LSBK

52 –

week Range

$9.92 -

$14.50

Current Price

$12.35

Market Capitalization

$81.7 million

Shares Outstanding

6,612,500

50 Day Avg. Trading Vol.

5,275

Dividend Yield 0.98%

Ownership

–

Insider 57.32%

–

Individual 32.60%

–

Institutional 10.08%

Other Data

Return on Average Equity

4.05%

(as of December 31, 2006)

Lake Shore Bancorp, Inc.

Our Mission

Our mission is to be a high quality, well respected

financial institution in the markets that we serve.

We will continue to serve the financial needs of the

communities in our market area by providing various

residential lending products.

We will continue to expand our commercial lending

portfolio with small and mid–size business loans.

We will create value by providing the best customer

service and developing lasting customer relationships.

Lake Shore Bancorp, Inc.

Challenges

Interest rate environment

Yield curve flat/inverted

Higher deposit cost due to higher short-term

rates

Maintaining our current lending level as the

real estate market tries to recover from lagging

sales and declining housing values

Brand awareness for our new branches

Lake Shore Bancorp, Inc.

Treasury Yield Curve

1.00

2.00

3.00

4.00

5.00

6.00

7.00

1 mo

3 mo

6 mo

1 yr

2 yr

3 yr

5 yr

7 yr

10 yr

20 yr

30 yr

Treasury Maturities

5/8/2007

1/2/2002

Lake Shore Bancorp, Inc.

Opportunities

Growth by new bank expansion into Erie County

Increase market share in Erie County

Grow small business and commercial loans

Earnings enhancement study –

to improve fee structure

Lake Shore Bancorp, Inc.

Strengths

Lake Shore Savings has a great story, Established 1891

Community based bank with a strong history of success

Above peer deposit growth over the last 10 years

High quality loan portfolio –

with no

subprime loans

Our employees –

we have long-term employees with

significant banking experience

Lake Shore Bancorp, Inc.

Goals

Continue to look for opportunities to grow the bank, either

by new start-ups or by acquisitions that complement our

banking style

Recruit talented employees

Reduce our efficiency ratio

Continue to work to improve earnings

Enhance shareholder value

Lake Shore Bancorp, Inc.

•

Financial Presentation

–

Rachel Foley, CFO

Lake Shore Bancorp, Inc.

Total Assets

($ in millions)

$238.1

$303.5

$329.8

$333.7

$354.2

$352.0

$200.0

$250.0

$300.0

$350.0

$400.0

2002

2003

2004

2005

2006

Q1 2007

Lake Shore Bancorp, Inc.

Total Deposits

($ in millions)

$195.1

$230.5

$243.6

$250.9

$249.6

$248.8

$50.0

$100.0

$150.0

$200.0

$250.0

$300.0

$350.0

2002

2003

2004

2005

2006

2007

Lake Shore Bancorp, Inc.

Loans, net

($ in millions)

$156.7

$187.1

$199.5

$206.2

$205.7

$206.1

$100.0

$150.0

$200.0

$250.0

2002

2003

2004

2005

2006

2007

Lake Shore Bancorp, Inc.

Loan Composition

(as of December 31, 2006)

Home equity

12.60%

Consumer loans

1.31%

One-to-four family

72.72%

Commercial loans

4.26%

Construction loans

0.77%

Commercial real estate

8.34%

Lake Shore Bancorp, Inc.

Deposit Composition

(as of December 31, 2006)

Time

Deposits >

$100,000

12.37%

Noninterest-

Bearing

Demand

6.99%

Interest-

Bearing

Demand

15.62%

Money

Market

Accts

9.83%

Savings

10.38%

Time

Deposits <

$100,000

44.80%

Lake Shore Bancorp, Inc.

Non-performing Loans as a

percentage of Gross Loans

0.90%

0.56%

0.40%

0.66%

0.64%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

2002

2003

2004

2005

2006

Lake Shore Bancorp, Inc.

Loan Loss Reserves as a

percentage of Loans

0.78%

0.69%

0.65%

0.60%

0.61%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

2002

2003

2004

2005

2006

Lake Shore Bancorp, Inc.

Net Income

($ in millions)

$2.2

$1.5

$2.2

$2.1

$1.8

$0.5

$1.0

$1.5

$2.0

$2.5

2002

2003

2004

2005

2006

Lake Shore Bancorp, Inc.

Return on Average Assets

(in percentages)

1.00%

0.58%

0.68%

0.62%

0.52%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

2002

2003

2004

2005

2006

Lake Shore Bancorp, Inc.

Interest Rate Margin & Spread

(in percentages)

3.95

3.32

3.15

3.09

3.00

3.68

3.18

3.03

2.93

2.60

0.00

1.00

2.00

3.00

4.00

5.00

2002

2003

2004

2005

2006

Net Interest Margin

Interest Rate Spread

Lake Shore Bancorp, Inc.

Net Interest Income

($ in millions)

$8.2

$8.1

$9.4

$9.5

$9.7

$7.0

$7.5

$8.0

$8.5

$9.0

$9.5

$10.0

2002

2003

2004

2005

2006

Lake Shore Bancorp (LSBK) 8-KAnnual Meeting of Shareholders