8-K

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                              ---------------------
                                    FORM 8-K
                                 CURRENT REPORT
     PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
                             -----------------------

       DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): DECEMBER 15, 2005

                                 LSB CORPORATION
             (Exact name of registrant as specified in its charter)

MASSACHUSETTS                        000-32955                  04-3557612
(State or other jurisdiction     (Commission File Number)    (I.R.S. Employer
of incorporation)                                            Identification No.)

                              ---------------------

                             30 MASSACHUSETTS AVENUE
                       NORTH ANDOVER, MASSACHUSETTS 01845
                                 (978) 725-7500

  (Address,including zip code, of registrant's principal executive offices and
               registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):

[ ]   Written communications pursuant to Rule 425 under the Securities Act (17
      CFR 230.425)

[ ]   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)

[ ]   Pre-commencement communications pursuant to Rule 14d-2(b) under the
      Exchange Act (17 CFR 240.14d-2(b))

[ ]   Pre-commencement communications pursuant to Rule 13e-4(c) under the
      Exchange Act (17 CFR 240.13e-4(c))


Item 8.01.  Other Events.

      On December 15, 2005, the registrant issued a press release announcing its
receipt and recognition of a final distribution in the amount of $2.2 million
from the bankruptcy estate of a former borrower. A copy of the press release is
furnished with this Report as Exhibit 99.1.

Item 9.01.  Financial Statements and Exhibits.

(c)   Exhibits.

99.1  Press Release dated December 15, 2005.

                                   SIGNATURES

      Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

LSB CORPORATION

DATED:  December 16, 2005

By:     /s/ PAUL A. MILLER
        --------------------------------
        Paul A. Miller
        President and Chief Executive Officer

                                  EXHIBIT INDEX



Exhibit No.    Description
            
       99.1    Press Release dated December 15, 2005

EX-99.1

                                  Exhibit 99.1

FOR IMMEDIATE RELEASE                               BANK CONTACT: PAUL A. MILLER
                                                                    978-725-7555

                                 LSB CORPORATION
                 FINAL DISTRIBUTION RECEIVED BY BANK SUBSIDIARY

NORTH ANDOVER, MA, -- (MARKET WIRE) - DECEMBER 15, 2005 - LSB Corporation, (the
"Corporation" or the "Company") (NASDAQ-LSBX), reports the receipt of $2.2
million on a U.S. Bankruptcy Judge's Order on the Trustee's Report on Claims'
and Proposed Distribution and the Trustees' Final Report for authorization to
make a final distribution in a case in which the Company's wholly owned
subsidiary, Lawrence Savings Bank (the "Bank"), is a creditor. The $2.2 million
distribution has been recorded as income by the Bank on December 15, 2005.

The amount of the final distribution has not previously been recognized in the
Company's Consolidated Financial Statements. The diluted earnings per share
impact of the interim distribution is approximately $0.29 per share based on
average dilutive shares outstanding at September 30, 2005.

Additional background information regarding the matter follows: The pendency of
this matter was noted in the Company's Consolidated Financial Statements as of
and for the periods ended December 31, 2004, 2003 and 2002 and in the Company's
Form 10Q Quarterly Report for the period ended September 30, 2005. The Bank was
awarded a $4.2 million judgment against the debtor in 1997. On February 13,
2002, the debtor filed a petition in bankruptcy under Chapter 7 of the
Bankruptcy Code. Post-judgment interest calculated from the date of judgment to
the date of the bankruptcy filing is approximately $1.9 million. The Company
previously reported the receipt during the quarter ended June 30, 2004 of an
interim distribution of $2.5 million in this matter.

This press release may contain certain statements that are "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, as amended. Such statements
are not historical facts and include expressions of management's expectations at
a specific point in time regarding future actions, relationships, structures,
decisions and conditions. Such expectations may or may not be realized,
depending on a number of variable factors, including but not limited to, the
exercise of judicial discretion, the identification of additional creditors,
errors in the Bankruptcy Trustee's estimation of taxes and or administrative
expenses, or the reversal or modification of completed sales of bankruptcy
assets. As a result of such risks and uncertainties, the Company's actual
results may differ materially from such forward-looking statements. The Company
does not undertake, and specifically disclaims any obligation to publicly
release revisions to any such forward-looking statements to reflect the
occurrence of anticipated or unanticipated events or circumstances after the
date of such statement.