8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, DC 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): February 22, 2005

LSB Financial Corp.
(Exact Name of Registrant as Specified in Its Charter)

Indiana
(State or Other Jurisdiction
of Incorporation) 0-25070
(Commission File Number) 35-1934975
(IRS Employer
Identification No.)

101 Main Street, Lafayette, Indiana
(Address of Principal Executive Offices) 47902
(Zip Code)

(765) 742-1064
(Registrant’s Telephone Number, Including Area Code)

(Former Name or Former Address, if Changed Since Last Report)

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:

[   ]  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 February 22, 2005, LSB Financial Corp. issued a press release reporting its results of operations and financial condition for the year ended December 31, 2004.

A copy of the press release is attached as Exhibit 99.1 to this Current Report. The information disclosed under this Item 2.02, including Exhibit 99.1 hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be deemed incorporated by reference into any filing made under the Securities Act of 1933, except as expressly set forth by specific reference in such filing.

Item 9.01   Financial Statements and Exhibits.

(c)	Exhibits
	Exhibit No.	Description
	99.1	Press Release issued February 22, 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 hereto duly authorized.

Date: February 23, 2005

LSB Financial Corp.


By:  /s/ Mary Jo David
        ——————————————
         Mary Jo David, Treasurer
         (Principal Financial and Accounting Officer)

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EX-99

Exhibit 99.1

NEWS RELEASE

FOR IMMEDIATE RELEASE
February 22, 2005 Contact: Randolph F. Williams
President
(765) 742-1064

LSB Financial Corp. Announces Record Year-End Results

        LSB Financial Corp. (NASDAQ:LSBI), the parent company of Lafayette Savings Bank, FSB, today reported record earnings for the year ended December 31, 2004. Net income for 2004 was $3.3 million, up $315,000 or 10.7% over net income for 2003. Diluted earnings per share for 2004, adjusted for a 5% stock dividend, increased 9.7% to $2.23 compared to $2.04 for 2003. LSB President and CEO Randolph F. Williams stated, “We are pleased with our results in 2004. The year 2004 was Lafayette Savings Bank’s 135^th year of business as an independent, community bank. We offer our customers a local board of directors, local decision making and local account servicing. Our nine person management team provides our customers a combined 173 years of banking experience. We know our market and can design products based on our understanding of our customer’s needs. We believe that it was the combination of these things that allowed us to reach a milestone in 2004 of asset size over $350 million, up 11% over 2003. Serving local customers with local directors, management and staff has proved a successful way to enhance long-term shareholder value.”

    Mr. Williams further stated, “We were challenged by the fact that the gradual rise in interest rates had reduced the number of borrowers refinancing their mortgages to salable, fixed rate products, resulting in a $1.2 million decrease in the gain on the sale of mortgages. We were able to take advantage of borrower’s increased interest in adjustable rate products which we keep in our portfolio and increased the size of our loan portfolio by $41.0 million to $317.8 million. This increase in our loan portfolio contributed to a $329,000 increase in net interest income. We also cut expenses by $188,000 and increased other non-interest sources of income by $150,000, excluding the gains on sale of mortgages. Management’s ongoing analysis of asset quality resulted in a $500,000 provision for loan losses in 2004, more in line with prior years and down $725,000 from the $1.2 million provision in 2003 which was made in response to concerns with the economic downturn.”

        The closing price of LSB stock on February 18, 2005 was $26.50 per share as reported by the Nasdaq National Market.

LSB FINANCIAL CORP.
SELECTED CONSOLIDATED FINANCIAL INFORMATION
(Dollars in thousands except share and per share amounts)

	Year Ended December 31, 2004		Year Ended December 31, 2003
Selected Balance Sheet Data:
Cash and due from banks	$       2,395		$       1,906
Short-term investments	6,818		7,491
Securities available-for-sale	7,947		14,050
Loans held for sale	1,050		803
Net Portfolio loans	317,877		276,763
Allowance for loan losses	2,095		3,098
Premises and equipment, net	6,750		7,110
FHLB stock, at cost	4,110		3,928
Other assets	8,098		7,221
Total assets	355,045		319,272
Deposits	256,631		225,485
Advances from FHLB	66,808		64,851
Other liabilities	1,213		1,209
Shareholders' Equity	30,393		27,727
Book value per share	$       21.41		$       19.86
Equity / Assets	8.56	%	8.68	%
Total shares outstanding	1,437,250		1,356,200
Asset Quality Data:
Non-accruing loans	$       4,207		$       3,728
Loans past due 90 days still on accrual	$          484		$              0
Other real estate/assets owned	1,231		340
Total non-performing assets	5,922		4,068
Non-performing loans / Total loans	1.84	%	1.45	%
Non-performing assets / Total assets	1.67	%	1.27	%
Allowance for loan losses / Non-performing assets	35.38	%	76.16	%
Allowance for loan losses / Total gross loans	0.65	%	1.10	%
Loans charged off	$       1,520		$          129
Recoveries on loans previously charged off	17		6

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	Year Ended
	December 31, 2004		December 31, 2003
Selected operating data:
Total Interest Income	$     19,286		$     19,070
Total Interest Expense	8,416		8,529
Net Interest Income	10,870		10,541
Provision for Loan Losses	500		1,225
Net Interest Income after provision	10,370		9,316
Non-interest income:
Deposit Account Service Charges	889		820
Gain on Sale of Mortgage Loans	593		1,810
Gain on Sale of Securities	11		0
Other Non-interest Income	747		677
Total Non-Interest Income	2,240		3,307
Non-Interest Expense:
Salaries and benefits	4,190		4,376
Occupancy and equipment, net	1,136		1,084
Computer service	371		367
Advertising	279		487
Other	1,578		1,428
Total non-interest expense	7,554		7,742
Income before income taxes	5,056		4,881
Income tax expense	1,792		1,932
Net income	$       3,264		$       2,949
Weighted average number of diluted shares	1,460,572		1,448,567
Diluted Earnings per Share	$         2.23		$         2.04
Return on average equity	11.19	%	11.03	%
Return on average assets	0.95	%	0.94	%
Average earning assets	$   327,094		$   300,952
Net interest margin	3.32	%	3.50	%
Efficiency ratio	59.90	%	61.34	%

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