EX-99.1 2 lsb_8k0309ex.htm PRESS RELEASE lsb_8k0309ex.htm
Exhibit 99.1
 
 
 
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:
March 9, 2012
Randolph F. Williams
 
President/CEO
 
(765) 742-1064
 
Fax: (765) 429-5932

 
LSB Financial Corp. Announces Year-end and Fourth Quarter Results
 
Lafayette, IN - LSB Financial Corp. (NASDAQ:LSBI), the parent company of Lafayette Savings Bank, FSB, today reported net income for 2011 of $539,000 or $0.35 per share, compared to net income of $2.1 million or $1.36 per share for 2010.  The decrease in income was primarily due to a $2.6 million or 94% increase in the loan loss provision as a result of steps taken in 2011 to reduce non-performing loans, offset by a $625,000 increase in net interest income. During the year we charged off $5.4 million against loan loss reserves, while recovering $67,000 and replenishing the reserves by $5.4 million. Over $2.5 million of the charge-offs were the result of lowered appraisal values on commercial properties received in the fourth quarter.  A 33% improvement in non-performing loans from $18.0 million at December 31, 2010 to $12.1 million at December 31, 2011, resulted in a ratio of non-performing loans to total loans of 3.95% at December 31, 2011 compared to 5.59% in 2010.    The fourth quarter appraisal charge-offs resulted in a fourth quarter loss of $600,000 compared to net income of $602,000 in the fourth quarter of 2010.
 
LSB President and CEO, Randolph F. Williams, stated, “The steps we took in 2011 to address non-performing loans resulted in an improvement in our loan loss reserve to non-performing loan ratio to 44.21%, up from 29.61% at the end of 2010.  Our loan loss reserve, as a percent of total loans, increased to 1.74% from 1.65%.  We believe that these steps position us well in 2012 and forward.  The loan loss reserve at both December 31, 2010 and December 31, 2011 was $5.3 million.”
 
Mr. Williams continued, “The core profitability of the bank remains strong.  Our net interest margin remains high at 4.02%, up from 3.68% at the end of 2010.  As a community bank we generate our earnings primarily by gathering deposits and making loans. Our 98% loan-to-deposit ratio is further evidence that we consider ourselves first and foremost a community bank.”
 
“Our balance sheet shows our success in attracting and maintaining local deposits.  By actively managing the balance sheet we have been able to pay competitive rates to depositors and reduce our reliance on funds from outside our market area.  We continue to deleverage, reducing loans by $18.3 million and increasing our capital ratio from 9.57% to 9.93%.”
 
The bank continues to be a leading home lender in the market originating $ 61.0 million in residential loans and generating $1.1 million of fees from the sale of $52.7 million of these loans.   Mr. Williams added, “The recent announcement by the National Association of Home Builders that Lafayette now ranks as one of the Country’s 76 “improving markets”, information from the Federal Housing Finance Agency that Lafayette ranks in the top 10% in year-over-year housing appreciation and our December unemployment rate of 7.5% all bode well for our market.”
 
While community bank stocks have been hard hit, we are proud to have been named to the Indianapolis Business Journal’s top 25 performing Indiana stocks in 2011.
 
The closing price of LSB stock on March 8, 2012 was $16.81 per share as reported by the Nasdaq Global Market.
 
 
 
 
 
LSB FINANCIAL CORP.
SELECTED CONSOLIDATED FINANCIAL INFORMATION
(Dollars in thousands except share and per share amounts)
 
  
Selected balance sheet data:
  
December 31, 2011
    
December 31, 2010
  
             
Cash and due from banks
   $ 18,552     $ 10,593  
Interest bearing deposits
     3,156       2,980  
Securities available-for-sale
     13,845       11,805  
Loans held for sale
     3,120       2,265  
Net portfolio loans
     302,510       320,810  
Allowance for loan losses
     5,331       5,343  
Premises and equipment, net
     6,146       6,116  
Federal Home Loan Bank stock, at cost
     3,185       3,583  
Bank-owned life insurance
     6,434       6,264  
Other assets
     7,342       7,431  
Total assets
     364,290       371,847  
                 
Deposits
     308,433       311,458  
Federal Home Loan Bank advances
     18,000       22,500  
Other liabilities
     1,683       2,312  
Total liabilities
     328,116       336,270  
                 
Shareholders’ equity
     36,174       35,577  
Book value per share
   $ 23.26     $ 22.90  
Equity / assets
     9.93 %     9.56 %
Total shares outstanding
     1,555,222       1,553,525  
                 
Asset quality data:
                
Non-accruing loans
   $ 12,059     $ 18,046  
Loans past due 90 days still on accrual
     ---       676  
Other real estate / assets owned
     1,746       1,214  
Total non-performing assets
     13,805       19,260  
Non-performing assets / total assets
     3.79 %     5.18 %
Allowance for loan losses / non-performing loans
     44.21 %     29.61 %
Allowance for loan losses / non-performing assets
     38.62 %     27.67 %
Allowance for loan losses / total loans
     1.74 %     1.65 %
Loans charged off
   $ 5,440     $ 1,382  
Recoveries on loans previously charged off
     67       229  
 
 
   
Three months ended December 31,
    
Year ended December 31,
  
Selected operating data:
  
2011
    
2010
    
2011
    
2010
  
                         
Total interest income
   $ 4,362     $ 4,626     $ 17,594     $ 18,895  
Total interest expense
     991       1,331       4,189       6,115  
Net interest income
     3,371       3,295       13,405       12,780  
Provision for loan losses
     2,625       950       5,361       2,759  
Net interest income after provision
     746       2,345       8,044       10,021  
Non-interest income:
                                
Deposit account service charges
     405       365       1,397       1,522  
Gain on sale of mortgage loans
     357       477       1,080       1,019  
Gain(loss) on sale of available-for-sale securities
     47       ---       54       ---  
Gain(loss) on sale OREO
     (261 )     8       (700 )     (441 )
Other non-interest income
     226       174       1,077       980  
Total non-interest income
     774       1,024       2,908       3,080  
Non-interest expense:
                                
Salaries and benefits
     1,246       1,275       5,465       5,288  
Occupancy and equipment, net
     265       317       1,154       1,303  
Computer service
     142       147       576       569  
Advertising
     94       79       304       282  
FDIC Insurance Premium
     120       185       556       679  
Other
     700       450       2,204       1,811  
Total non-interest expense
     2,567       2,453       10,259       9,932  
Income before income taxes
     (1,044 )     916       693       3,169  
Income tax expense
     (444 )     314       154       1,052  
Net income
     (600 )     602       539       2,117  
                                 
Weighted average number of diluted shares
     1,556,352       1,554,697       1,555,253       1,554,720  
Diluted earnings per share
   $ (0.39 )   $ 0.39     $ 0.35     $ 1.36  
                                 
Return on average equity
     (6.52 %)     6.77 %     1.48 %     6.09 %
Return on average assets
     (0.66 %)     0.64 %     0.15 %     0.56 %
Average earning assets
   $ 330,144     $ 345,930     $ 333,278     $ 347,299  
Net interest margin
     4.09 %     3.95 %     4.02 %     3.68 %
Efficiency ratio
     168.55 %     72.81 %     93.67 %     75.81 %