8-K

                SECURITIES AND EXCHANGE COMMISSION

                     Washington, D.C.  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)
                           July 10, 1996




                      LSB FINANCIAL CORP.                        
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      (Exact name of Registrant as specified in its charter)



    Indiana                  0 - 25070               35-1934975  
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 (State or other       (Commission File No.)       (IRS Employer
 jurisdiction of                                  Identification
 incorporation)                                         No.)



 101 Main Street, Lafayette, Indiana                    47902    
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  (Address of principal executive offices)           (Zip Code)



Registrant's telephone number, including area code (317) 742-1064
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                              N/A                                
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  (Former name or former address, if changed since last report)




Item 5.  Other Events
- ---------------------

     On July 10, 1996, LSB Financial Corp. ("LSB") issued the
attached press release announcing the completion of its stock
repurchase program.

Item 7.  Financial Statements, Pro Forma Financial Information
         and Exhibits                                         
- --------------------------------------------------------------

    (c)   Exhibits:



                                                       Page
                                                       ----

     Exhibit 99 -   Press release dated July 10,        4  
                    1996




                            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 hereunto duly authorized.


                              LSB FINANCIAL CORP.



Date:   July 10, 1996          By:  /S/MARY JO DAVID              
      -----------------            ------------------------------
                                        Mary Jo David
                                   Vice President, Chief Financial
                                   Officer and Secretary-Treasurer

EX-99

                           NEWS RELEASE




FOR IMMEDIATE RELEASE                   Contact:  John W. Corey
                                                  President
                                                  (317) 742-1064

           LSB Financial Corp. Completes Stock Buy-Back



     LSB Financial Corp., Lafayette, Indiana, today announced that the
planned repurchase of 5% of the shares of its stock was now completed.  The
Company purchased 48,235 shares in the open market over a one month period. 
The repurchased shares will become treasury shares and will be used for
general corporate purposes, including the issuance of shares in connection
with the exercise of stock options.

     John W. Corey, President of the Company stated, "This stock buy-back
represents a continuation of our efforts to increase shareholder value."

     After the buy-back and the issuing of additional shares as part of the
Recognition and Retention Plan adopted by stockholders at a special meeting in
August 1995, the Company currently has 917,760 shares of common stock issued
and outstanding.

     LSB Financial operates three offices in Tippecanoe County.  As of March
31, 1996, the Company had assets of $163 million, deposits of $112 million and
shareholders' equity of $17 million.