EX-99.1 2 lsb_8k0502ex.htm PRESS RELEASE Press Release

 
101 Main St.
P.O. Box 1628
Lafayette, IN 47902
(765) 742-1064

www.LSBANK.com
lsbmail@LSBANK.com 


FOR IMMEDIATE RELEASE
FOR FURTHER INFORMATION CONTACT:
May 2, 2007
Randolph F. Williams
President/CEO
(765) 742-1064
Fax: (765) 429-5932



LSB Financial Corp. Announces First Quarter Results
 
LSB Financial Corp. (NASDAQ:LSBI), the parent company of Lafayette Savings Bank, FSB, today reported earnings for the quarter ended March 31, 2007. Net income decreased $129,000 or 14.2% for the first quarter of 2007 from the first quarter of 2006, resulting in diluted earnings per share of $0.48. LSB Financial President & CEO, Randolph F. Williams stated, “This market presents quite a challenge with increased competition, high consumer delinquency and an inverted yield curve. Our management team has done a great job of containing costs and generating non-interest income to help meet the challenge.”
 
For the first quarter of 2007, the net interest margin was down four basis points to 3.48% when compared to the previous year. This decrease in margin resulted in $154,000 less in net interest income. Additionally, the Bank increased the provision for loan losses to $250,000, up 67% from last year’s level of $150,000. Non-interest expenses were down $27,000 and non-interest income was up $38,000 for the quarter. At quarter end, non-performing loans stood at $11.2 million or 3.97% of total loans, with over 96% of those loans collateralized by real estate property.
 
Williams continued, “While we see signs of an improving economy, loan demand remains weak. We are encouraged by the recent Manpower Inc. survey which showed that 57% of local companies surveyed planned to hire more people in the April-June time frame. Tippecanoe County’s unemployment rate stood at 4.2% in March compared to 4.7% in March of 2006. We believe that Lafayette Savings Bank’s 138-year presence in Greater Lafayette, its knowledge of the community and its commitment to providing excellent service to its customers will serve us well in these challenging times and provide a consistent return to our shareholders.”
 
The Company also announced that it will pay a quarterly cash dividend of $0.20 per share to shareholders of record as of the close of business on May 4, 2007 with a payment date of June 1, 2007. Williams stated, “At slower growth times like this, we are pleased to be able to return equity to our shareholders in the form of a higher dividend. This is particularly significant based on the current dividend tax rate.”
 
The closing market price of LSB stock on April 30, 2007 was $26.00 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)
 
 
Selected balance sheet data:
 
Three months ended
March 31, 2007
 
Year ended
December 31, 2006
 
           
Cash and due from banks
 
$
1,511
 
$
1,391
 
Short-term investments
   
7,708
   
8,336
 
Securities available-for-sale
   
14,407
   
16,316
 
Loans held for sale
   
801
   
992
 
Net portfolio loans
   
311,599
   
316,699
 
Allowance for loan losses
   
2,876
   
2,770
 
Premises and equipment, net
   
6,891
   
6,600
 
Federal Home Loan Bank stock, at cost
   
3,997
   
3,997
 
Bank owned life insurance
   
5,438
   
5,381
 
Other assets
   
9,269
   
8,688
 
Total assets
   
361,621
   
368,400
 
               
Deposits
   
254,151
   
255,304
 
Advances from Federal Home Loan Bank
   
70,118
   
76,618
 
Other liabilities
   
2,124
   
1,638
 
               
Shareholders’ equity
   
35,228
   
34,840
 
Book value per share
 
$
22.07
 
$
21.73
 
Equity / assets
   
9.74
%
 
9.46
%
Total shares outstanding
   
1,595,999
   
1,603,209
 
               
Asset quality data:
             
Non-accruing loans
 
$
11,192
 
$
7,364
 
Loans past due 90 days still on accrual
   
1,331
   
147
 
Other real estate / assets owned
   
4,691
   
4,169
 
Total non-performing assets
   
17,214
   
11,680
 
Non-performing loans / total loans
   
3.97
%
 
2.34
%
Non-performing assets / total assets
   
4.76
%
 
3.17
%
Allowance for loan losses / non-performing loans
   
22.97
%
 
36.88
%
Allowance for loan losses / non-performing assets
   
16.71
%
 
23.72
%
Allowance for loan losses / total loans
   
0.91
%
 
0.86
%
Loans charged off (quarter-to-date and year-to-date, respectively)
 
$
153
 
$
1,149
 
Recoveries on loans previously charged off
   
9
   
49
 
 
Three months ended March 31,
Selected operating data:
   
2007
   
2006
 
Total interest income
 
$
5,869
 
$
5,786
 
Total interest expense
   
2,902
   
2,665
 
Net interest income
   
2,967
   
3,121
 
Provision for loan losses
   
250
   
150
 
Net interest income after provision for loan losses
   
2,717
   
2,971
 
Non-interest income:
             
Deposit account service charges
   
406
   
424
 
Gain on sale of mortgage loans
   
42
   
51
 
Gain on sale of securities
   
0
   
0
 
Other non-interest income
   
252
   
187
 
Total non-interest income
   
700
   
662
 
Non-interest expense:
             
Salaries and benefits
   
1,190
   
1,287
 
Occupancy and equipment, net
   
314
   
290
 
Computer service
   
121
   
98
 
Advertising
   
41
   
58
 
Other
   
523
   
483
 
Total non-interest expense
   
2,189
   
2,216
 
Income before income taxes
   
1,228
   
1,417
 
Income tax expense
   
449
   
509
 
Net income
   
779
   
908
 
               
Weighted average number of diluted shares
   
1,612,091
   
1,629,588
 
Diluted earnings per share
 
$
0.48
 
$
0.56
 
               
Return on average equity
   
8.87
%
 
10.90
%
Return on average assets
   
0.86
%
 
0.97
%
Average earning assets
 
$
341,323
 
$
354,734
 
Net interest margin
   
3.48
%
 
3.52
%
Efficiency ratio
   
64.06
%
 
61.00
%