8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC

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)   August 9, 2013
LSB Financial Corp.
(Exact Name of Registrant as Specified in Its Charter)
Indiana	0-25070	35-1934975
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)
101 Main Street, Lafayette, Indiana		47901
(Address of Principal Executive Offices)		(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 August 9, 2013, LSB Financial Corp. issued a press release reporting its results of operations and financial condition for the quarter and six months ended June 30, 2013.

A copy of the press release is attached as Exhibit 99.1 to this Current Report and is incorporated herein by this reference. 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.

(d)  Exhibits
Exhibit No.	Description
99.1	Press Release dated August 9, 2013

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: August 12, 2013	LSB Financial Corp.
	By:	/s/ Mary Jo David
		Mary Jo David, Treasurer (Principal Financial and Accounting Officer)

EXHIBIT INDEX

Exhibit Number	Exhibit Description	Location
99.1	Press Release, dated August 9, 2013	Attached

EX-99.1

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:

Randolph F. Williams

President/CEO

(765) 742-1064

Fax: (765) 429-5932

LSB Financial Corp. Announces Second Quarter and Year-to-Date Results

August 9, 2013, Lafayette, IN - LSB Financial Corp. (NASDAQ:LSBI), the parent company of Lafayette Savings Bank, FSB, today reported year-to-date earnings of $1.3 million or $0.85 diluted earnings per share compared to $1.1 million or $0.71 diluted earnings per share a year earlier.  Earnings for the quarter were $664,000 or $0.42 diluted earnings per share compared to $509,000 or $0.33 diluted earnings per share a year earlier.  The major contributors to the Bank’s year-to-date performance were a $475,000 decrease in the provision for loan losses, a 43% improvement over last year; a $304,000 or 68% increase in other income due primarily to increased fee income from the sale of other financial instruments and increases in mortgage loan servicing fees; and a $125,000 increase in the gain on the sale of mortgage loans over the first six months of last year.  Net interest income for the six months decreased $523,000 or 8.2% compared to the same period in 2012 primarily because of lower rates and slower loan growth.

Randolph F. Williams, president and CEO stated, “We are especially pleased with the improvement in our troubled loans.  At quarter-end, non-performing assets totaled $4.0 million or 1.09% of total assets, compared to $6.7 million or 1.84%, at the end of 2012. The last time non-performing assets were below $4.0 million was December 2002, some eleven years ago.  With an allowance for loan losses totaling $6.3 million and only $3.8 in non-performing loans we believe we are well reserved against asset deterioration.

Williams continued, “Our community banking focus is why we have been able to achieve these results despite a period of continued economic uncertainty.  We know our customers and we work hard to deliver the service they have come to expect.  Our improved efficiency, robust residential mortgage operation and emphasis on improving credit quality have been keys to our performance.  We are in an enviable position to grow as the economy improves”.

The Bank continues to maintain a strong capital base with a capital-to-asset ratio at June 30, 2012 over 10.8%, and a risk-based capital ratio of 16.39%, both of which are well above the current definition of “well-capitalized” as defined by the bank regulators.

The closing market price of LSB stock on August 8, 2013 was $25.00 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:	June 30, 2013 (Unaudited)			December 31, 2012
Cash and due from banks	$	1,349		$	25,643
Interest bearing deposits		23,701			5,778
Interest bearing time deposits		1,748			1,740
Securities available-for-sale		47,780			28,004
Loans held for sale		1,476			1,363
Net portfolio loans		266,996			280,257
Allowance for loan losses		6,346			5,900
Premises and equipment, net		7,243			7,069
Federal Home Loan Bank stock, at cost		3,185			3,185
Bank owned life insurance		6,671			6,595
Other assets		5,263			4,976
Total assets		365,412			364,610
Deposits		313,856			308,637
Advances from Federal Home Loan Bank		10,000			15,000
Other liabilities		1,986			2,018
Total liabilities		325,842			325,655
Shareholders’ equity		39,570			38,955
Book value per share	$	25.41		$	25.04
Equity / assets		10.83	%		10.68	%
Total shares outstanding		1,559,343			1,555,972
Asset quality data:
Total non-accruing loans	$	3,804		$	6,443
Non-accruing loans 90 or more days past due		2,012			2,907
Non-accruing loans less than 90 days past due		1,792			3,536
Other real estate / assets owned		162			256
Total non-performing assets		3,966			6,699
Non-performing loans / total loans		1.39	%		2.25	%
Non-performing assets / total assets		1.09	%		1.84	%
Allowance for loan losses / non-performing loans		166.82	%		91.57	%
Allowance for loan losses / non-performing assets		160.01	%		88.07	%
Allowance for loan losses / total loans		2.32	%		2.06	%
Loans charged off	$	331		$	1,710
Recoveries on loans previously charged off		152			179

	Three months ended June 30, (Unaudited)						Six months ended June 30, (Unaudited)
	2013			2012			2013			2012
Selected operating data:
Total interest income	$	3,462		$	3,950		$	7,104		$	8,145
Total interest expense		596			851			1,244			1,762
Net interest income		2,866			3,099			5,860			6,383
Provision for loan losses		225			500			625			1,100
Net interest income after provision for loan losses		2,641			2,599			5,235			5,283
Non-interest income:
Deposit account service charges		300			321			573			646
Gain on sale of mortgage loans		527			425			957			832
Net (loss) on sale of real estate owned		---			(56	)		(2	)		(139	)
Other non-interest income		331			185			749			445
Total non-interest income		1,158			875			2,277			1,784
Non-interest expense:
Salaries and benefits		1,551			1,496			3,078			3,015
Occupancy and equipment, net		321			283			640			601
Computer service		156			152			297			300
Advertising		97			89			212			177
Other		645			663			1,218			1,251
Total non-interest expense		2,770			2,683			5,445			5,344
Income before income taxes		1,029			791			2,067			1,723
Income tax expense		365			282			750			619
Net income		664			509			1,317			1,104
Other comprehensive income (loss)		(587	)		73			(576	)		54
Comprehensive income		77			582			741			1,158
Weighted average number of diluted shares		1,562,935			1,556,696			1,556,492			1,555,646
Diluted earnings per share	$	0.42		$	0.33		$	0.85		$	0.71
Return on average equity		6.69	%		5.39	%		6.67	%		5.99	%
Return on average assets		0.73	%		0.54	%		0.73	%		0.60	%
Average earning assets	$	341,925		$	325,751		$	342,270		$	322,368
Net interest margin		3.35	%		3.81	%		3.42	%		3.96	%
Efficiency ratio		72.91	%		77.21	%		72.47	%		75.62	%