Earnings per share was calculated for the three and six months ended June 30, 2026 and 2025, in accordance with ASC 260 - Earnings Per Share, which provides that unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the two-class method. Basic earnings per share is based upon the weighted average number of common shares outstanding, exclusive of unearned shares held by the Employee Stock Ownership Plan of Lake Shore Bancorp, Inc. (the “ESOP”). Unvested shares of restricted stock which have voting rights and are eligible to receive dividends are included in the calculation of the weighted average number of common shares outstanding. Diluted earnings per share is based upon the weighted average number of common shares outstanding and common share equivalents that would arise from the exercise of dilutive securities. Stock options are regarded as potential common stock and are

considered in the diluted earnings per share calculations to the extent they would be dilutive and computed using the treasury stock method.

The calculated basic and diluted earnings per share are as follows. Share and per share amounts related to periods prior to the date of Conversion (July 18, 2025) have been adjusted to give the retroactive recognition to the exchange ratio applied in the Conversion (1.3549):


	Three Months Ended June 30,
	2026		2025
Numerator – net income	$	2,173,000	$	1,919,000
Denominator:
Basic weighted average shares outstanding		7,377,633		7,678,457
Increase in weighted average shares outstanding due to:
Stock options(1)		16,684		3,788
Diluted weighted average shares outstanding(1)		7,394,317		7,682,245

Earnings per share:
Basic	$	0.29	$	0.25
Diluted	$	0.29	$	0.25

	Six Months Ended June 30,
	2026		2025
Numerator – net income	$	4,096,000	$	2,975,000
Denominator:
		7,363,418		7,664,392
Increase in weighted average shares outstanding due to:
Stock options(1)		15,884		4,848
Diluted weighted average shares outstanding(1)		7,379,302		7,669,240

Earnings per share:
Basic	$	0.56	$	0.39
Diluted	$	0.56	$	0.39

(1)

Weighted average stock options to purchase 43,175 shares under the Company's 2025 Equity Incentive Plan ("2025 EIP") at $14.85 were outstanding during the three and six months ended June 30, 2026 and were not included in the calculation of diluted earnings per share because to do so would have been anti-dilutive. All stock options outstanding during the three and six months ended June 30, 2025 were included in the calculation of diluted earnings per share as none had anti-dilutive effects.