-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, ObAchxdmTRS0gL7nkcU0lvRIvSmUDuvN9ZQkVQJqY8N3mKgMc1a9DeXC3p2VD951 cp9Lixnbptlbh9Z6GpqBNA== 0000950135-06-002799.txt : 20060428 0000950135-06-002799.hdr.sgml : 20060428 20060428133955 ACCESSION NUMBER: 0000950135-06-002799 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060428 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060428 DATE AS OF CHANGE: 20060428 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LSB CORP CENTRAL INDEX KEY: 0001143848 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 043557612 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-32955 FILM NUMBER: 06788664 BUSINESS ADDRESS: STREET 1: C/O LSB CORP. STREET 2: 30 MASSACHUSETTS AVE. CITY: NORTH ANDOVER STATE: MA ZIP: 01845 BUSINESS PHONE: 9789757500 8-K 1 b606978ke8vk.txt LSB CORPORATION ================================================================================ 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): APRIL 28, 2006 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 2.02. Results of Operations and Financial Condition. On April 28, 2006, the registrant announced, in a press release, its earnings results for the first quarter 2006 and its quarterly dividend to shareholders. A copy of the press release issued by the registrant is herewith attached as Exhibit 99.1 and is incorporated herein by reference. Item 9.01. Financial Statements and Exhibits (c) Exhibits. 99.1 Press Release dated April 28, 2006. 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: April 28, 2006 By: /s/ Gerald T. Mulligan ----------------------------------------------- Gerald T. Mulligan President and Chief Executive Officer EXHIBIT INDEX Exhibit No. Description 99.1 Press Release dated April 28, 2006 EX-99.1 2 b606978kexv99w1.txt EX-99.1 PRESS RELEASE DATED APRIL 28, 2006 Exhibit 99.1 FOR IMMEDIATE RELEASE COMPANY CONTACT: Gerald T. Mulligan (978) 725-7555 LSB CORPORATION ANNOUNCES FIRST QUARTER 2006 FINANCIAL RESULTS AND QUARTERLY DIVIDEND NORTH ANDOVER, MA, -- (MARKET WIRE) -- April 28, 2006 -- LSB Corporation, (the "Corporation" or the "Company") (NASDAQ-LSBX), today announced first quarter 2006 financial results of $260,000, or $0.06 per diluted share, as compared to $859,000, or $0.19 per diluted share, for the first quarter of 2005. The decline in net income for the period ending March 31, 2006 was primarily due to severance payments in the amount of $373,000 incurred with the resignation of two former executive officers and to a continued compression of the Company's net interest margin from 2.78% in the first quarter of 2005 to 2.61% in the first quarter of 2006. The most significant challenge the Company faces in the current flattened interest rate yield curve environment is to increase interest income while also maintaining competitive deposit interest rates. The Company anticipates that the squeeze on its net interest margin, which declined by 17 basis points from March 31, 2005 to March 31, 2006, will continue throughout 2006. While the entire banking industry is experiencing pressure on the net interest margin, that pressure is especially acute at LSB Corporation as it is so dependent on borrowings to fund growth. President Gerald T. Mulligan stated, "We are pleased by the growth in our loan portfolios which indicates that we are meeting our customers' expectations in this competitive and challenging environment. In spite of industry reports that loan demand has diminished with increasing interest rates and credit quality has worsened, I am happy to report that our non-performing assets are minimal". As of March 31, 2006, non-performing loans remained low at 0.01% of total loans while the allowance for loan losses as a proportion of total loans equaled 1.72%. Total assets increased $24.0 million from December 31, 2005 to $545.8 million as of March 31, 2006. The increase reflected growth in both residential and commercial loans as well as in the investment portfolio. Additionally, the Company transferred approximately $205.8 million of investments held to maturity into investments available for sale during the first quarter of 2006. The impact of this change requires the unrealized loss to be reflected on the balance sheet in the "accumulated other comprehensive loss" portion of stockholders' equity and totaled $4.0 million. Total accumulated other comprehensive loss was $5.0 million as of March 31, 2006. Notwithstanding the change into investments available for sale, the Company and the Bank continue to maintain strong capital at levels considered "well-capitalized" under regulatory capital guidelines. Total deposits decreased slightly from December 31, 2005 and totaled $302.9 million as of March 31, 2006. Asset growth during the first quarter was funded by advances from the Federal Home Loan Bank. Total borrowed funds increased during the first quarter of 2006 by $28.4 million or 18.5% and totaled $181.7 million as of March 31, 2006. The Company also announced a quarterly dividend of $0.14 to be paid on May 25, 2006 to shareholders of record as of May 11, 2006. This dividend represents a 3.12% annualized dividend yield based on the closing stock price of $17.95 on March 31, 2006. Press releases and SEC filings can be viewed on the internet at our website www.LawrenceSavings.com/press-main.asp or www.LawrenceSavings.com/stockholder-info.asp, respectively. LSB Corporation is a Massachusetts corporation that conducts all of its operations through its subsidiary, Lawrence Savings Bank (the "Bank"), a Massachusetts-chartered savings bank organized in 1868. The Bank offers a range of commercial and consumer loan and deposit products and is headquartered at 30 Massachusetts Avenue, North Andover, Massachusetts, approximately 25 miles north of Boston. Lawrence Savings Bank operates 5 full service banking offices in Massachusetts in Andover, Lawrence, Methuen (2) and North Andover and 1 full service banking office in Salem, New Hampshire. The reader is cautioned that 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 forward-looking statements are expressions of management's expectations as of the date of this press release regarding future events or trends and which do not relate to historical matters. Such expectations may or may not be realized, depending on a number of variable factors, including but not limited to, changes in interest rates, general economic conditions, regulatory considerations and competition. For more information about these factors, please see our recent Annual Report on Form 10-K on file with the SEC, including the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations". As a result of such risk factors 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 updates or revisions to any such forward-looking statements as a result of new information, future events or otherwise. LSB CORPORATION CONDENSED CONSOLIDATED BALANCE SHEET (In thousands) (unaudited)
(At) March 31, 2006 December 31, 2005 March 31, 2005 - ------------------------------------------------------------------------------------------------------- Retail loans $ 75,069 $ 73,539 $ 69,386 Corporate loans 167,347 161,072 165,066 - ------------------------------------------------------------------------------------------------------- Total loans 242,416 234,611 234,452 - ------------------------------------------------------------------------------------------------------- Allowance for loan losses (4,160) (4,126) (4,139) - ------------------------------------------------------------------------------------------------------- Investments available for sale 271,812 46,363 60,448 Investments held to maturity -- 213,683 238,659 FHLB stock 10,097 10,097 9,681 - ------------------------------------------------------------------------------------------------------- Total investments 281,909 270,143 308,788 Federal funds sold 3,372 198 3,427 Other assets 22,310 20,974 18,085 - ------------------------------------------------------------------------------------------------------- Total assets $ 545,847 $ 521,800 $ 560,613 ======================================================================================================= Deposits $ 302,931 $ 303,087 $ 301,873 Borrowed funds 181,734 153,380 196,889 Other liabilities 5,229 5,411 3,847 - ------------------------------------------------------------------------------------------------------- Total liabilities 489,894 461,878 502,609 - ------------------------------------------------------------------------------------------------------- Common stock 453 446 439 Additional paid-in capital 60,556 59,856 59,606 Retained earnings (loss) (42) 326 (1,101) Accumulated other comprehensive loss (5,014) (706) (940) - ------------------------------------------------------------------------------------------------------- Total stockholders' equity 55,953 59,922 58,004 - ------------------------------------------------------------------------------------------------------- Total liabilities and stockholders' equity $ 545,847 $ 521,800 $ 560,613 =======================================================================================================
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (unaudited)
Three months ended ------------------ (For the period ending) March 31, 2006 December 31, 2005 March 31, 2005 - ------------------------------------------------------------------------------------------------------------- Interest income $ 6,535 $ 6,487 $ 6,109 Interest expense 3,241 3,107 2,555 - ------------------------------------------------------------------------------------------------------------- Net interest income 3,294 3,380 3,554 Provision (credit) for loan losses -- -- -- - ------------------------------------------------------------------------------------------------------------- Net interest income after provision (credit for loan losses) 3,294 3,380 3,554 Non-interest income 330 432 365 Lawsuit judgment collected -- 2,223 -- Salary & employee expense 2,067 2,191 1,576 Other non-interest expense 1,156 1,105 1,005 - ------------------------------------------------------------------------------------------------------------- Total non-interest expense 3,223 3,296 2,581 Net income before income taxes 401 2,739 1,338 Income tax expense 141 1,056 479 - ------------------------------------------------------------------------------------------------------------- Net income $ 260 $ 1,683 $ 859 ============================================================================================================= Basic earnings per share $ 0.06 $ 0.38 $ 0.20 Diluted earnings per share $ 0.06 $ 0.37 $ 0.19 End of period shares outstanding 4,527,617 4,464,033 4,385,726 Average shares outstanding: Basic 4,496,013 4,464,033 4,365,559 Diluted 4,555,725 4,528,193 4,532,751 SELECT FINANCIAL DATA: Three months ended ------------------ (At or for the periods ending) March 31, 2006 December 31, 2005 March 31, 2005 - ------------------------------------------------------------------------------------------------------------- (unaudited) Performance ratios (annualized): Return on average assets 0.20% 1.27% 0.65% Return on average stockholders equity 1.85% 11.41% 6.02% Net interest margin 2.61% 2.62% 2.78% Interest rate spread 2.22% 2.25% 2.49% Dividends paid per share during period $ 0.14 $ 0.14 $ 0.14 (At) March 31, 2006 December 31, 2005 March 31, 2005 - ------------------------------------------------------------------------------------------------------------- (unaudited) CAPITAL RATIO: Stockholders equity to total assets 10.25% 11.48% 10.35% Leverage ratio 11.52% 11.34% 10.91% RISK BASED CAPITAL RATIO: Tier one 18.24% 19.09% 18.19% Total risk based 19.49% 20.34% 19.44% ASSET QUALITY: Allowance for loan losses as a percent of total loans 1.72% 1.76% 1.77% Non-performing loans as a percent of total loans 0.01% 0.01% 0.01% PER SHARE DATA: Book value per share $ 12.36 $ 13.42 $ 13.23 Tangible book value per share (excludes accumulated other comp. loss) 13.47 13.58 13.44 Market value per share 17.95 17.35 17.99
-----END PRIVACY-ENHANCED MESSAGE-----