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)   November 6, 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 November 6, 2013, LSB Financial Corp. issued a press release reporting its results of operations and financial condition for the quarter and nine months ended September 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 November 6, 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: November 7, 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 November 6, 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 Third Quarter and Year-to-Date Results

November 6, 2013, Lafayette, IN - LSB Financial Corp. (NASDAQ:LSBI), the parent company of Lafayette Savings Bank, FSB, today reported year-to-date earnings of $2.0 million or $1.29 diluted earnings per share compared to $2.0 million or $1.28 diluted earnings per share a year earlier.  Earnings for the quarter were $703,000 or $0.45 diluted earnings per share compared to $879,000 or $0.56 diluted earnings per share a year earlier.  The major contributors to the Bank’s year-to-date performance were a $950,000 decrease in the provision for loan losses, a 59% improvement over last year; and a $296,000 or 37% increase in other income due primarily to increased fee income from the sale of other financial instruments and increases in mortgage loan servicing fees. These were offset by net interest income which decreased $841,000 or 8.8% compared to the same period in 2012 primarily because of lower loan rates and slower loan growth for the nine months and by a $394,000 decrease in the gain on the sale of mortgage loans over the first nine months of last year as higher long term interest rates slowed mortgage refinance activity.

Randolph F. Williams, president and CEO stated, “We continue to make progress with our troubled loans which now compare favorably with peer data.  At September 2013, non-performing assets were under 1.0% of total assets, totaling $2.9 million or 0.82% of total assets, compared to $6.7 million or 1.84%, at the end of 2012 and an eleven year low.  We have had a decrease in non-performing assets in each of the past 11 quarters.  With an allowance for loan losses totaling $6.4 million and only $2.9 million in non-performing loans we believe we are well reserved against asset deterioration.”

The Bank continues to maintain a strong capital base with a total capital-to-asset ratio at September 30, 2012 at 11.33%, and a risk-based capital ratio of 17.35%, 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 November 5, 2013 was $27.95 per share as reported by the NASDAQ Global Market. This represents an increase of 41.02% over the same date last year.

LSB FINANCIAL CORP. SELECTED CONSOLIDATED FINANCIAL INFORMATION (Dollars in thousands except share and per share amounts)
Selected balance sheet data:	September 30, 2013 (Unaudited)			December 31, 2012
Cash and due from banks	$	1,382		$	25,643
Interest bearing deposits		24,337			5,778
Interest-bearing time deposits		1,743			1,740
Securities available-for-sale		50,337			28,004
Loans held for sale		200			1,363
Net portfolio loans		254,453			280,257
Allowance for loan losses		6,407			5,900
Premises and equipment, net		7,235			7,069
Federal Home Loan Bank stock, at cost		3,185			3,185
Bank-owned life insurance		6,709			6,595
Other assets		5,523			4,976
Total assets		355,104			364,610
Deposits		302,300			308,637
Advances from Federal Home Loan Bank		10,000			15,000
Other liabilities		2,573			2,018
Total liabilities		314,873			325,655
Shareholders’ equity		40,231			38,955
Book value per share	$	25.80		$	25.04
Equity / assets		11.33	%		10.68	%
Total shares outstanding		1,559,543			1,555,972
Asset quality data:
Total non-accruing loans	$	2,762		$	6,443
Non-accruing loans 90 or more days past due		1,618			2,907
Non-accruing loans less than 90 days past due		1,144			3,536
Other real estate / assets owned		162			256
Total non-performing assets		2,924			6,699
Non-performing loans / total loans		1.06	%		2.25	%
Non-performing assets / total assets		0.82	%		1.84	%
Allowance for loan losses / non-performing loans		231.97	%		91.57	%
Allowance for loan losses / non-performing assets		219.12	%		88.06	%
Allowance for loan losses / net loans receivable		2.46	%		2.06	%
Loans charged off	$	357		$	1,710
Recoveries on loans previously charged off		214			179

	Three months ended September 30, (Unaudited)						Nine months ended September 30, (Unaudited)
	2013			2012			2013			2012
Selected operating data:
Total interest income	$	3,389		$	3,901		$	10,493		$	12,045
Total interest expense		575			769			1,819			2,530
Net interest income		2,814			3,132			8,674			9,515
Provision for loan losses		25			500			650			1,600
Net interest income after provision for loan losses		2,789			2,632			8,024			7,915
Non-interest income:
Deposit account service charges		320			338			892			985
Gain on sale of mortgage loans		250			770			1,208			1,602
Net (loss) on sale of real estate owned		---			24			(2	)		(115	)
Other non-interest income		340			348			1,089			793
Total non-interest income		910			1,480			3,187			3,265
Non-interest expense:
Salaries and benefits		1,407			1,591			4,485			4,607
Occupancy and equipment, net		328			302			968			903
Computer service		156			167			453			468
Advertising		93			72			306			249
Other		604			577			1,821			1,827
Total non-interest expense		2,588			2,709			8,033			8,054
Income before income taxes		1,111			1,403			3,178			3,126
Income tax expense		408			524			1,158			1,142
Net income		703			879			2,020			1,984
Other comprehensive income (loss)		1			96			(578	)		150
Comprehensive income		704			975			1,442			2,134
Weighted average number of diluted shares		1,567,964			1,558,037			1,562,797			1,555,756
Diluted earnings per share	$	0.45		$	0.56		$	1.29		$	1.28
Return on average equity		7.04	%		9.27	%		6.79	%		7.11	%
Return on average assets		0.79	%		0.98	%		0.75	%		0.72	%
Average earning assets	$	336,650		$	327,464		$	340,371		$	324,188
Net interest margin		3.34	%		3.83	%		3.40	%		3.91	%
Efficiency ratio		69.96	%		65.88	%		71.65	%		72.04	%