8-K

UNITED STATES

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)     September 21, 2004    

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 No.)	(IRS Employer Identification Number)

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

Registrant's telephone number, including area code: (765) 742-1064

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 (see General Instruction A.2. below):

  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))



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ITEM 8.01.  Other Events

            On September 21, 2004, the Registrant issued a press release announcing payment of stock dividend. The press release is attached to this report as Exhibit 99.1, which is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits

(c)	Exhibits
	99.1	Press release dated September 21, 2004

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 thereunto duly authorized.

LSB FINANCIAL CORP.

Date:     September 21, 2004 By:   /s/ Mary Jo David        Mary Jo David, Treasurer
       (Principal Financial and Accounting Officer)

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EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release Dated September 21, 2004.

EX-99.1

FOR IMMEDIATE RELEASE
101 Main St.
P.O. Box 1628
Lafayette, IN 47902
(765) 742-1064 FOR FURTHER INFORMATION CONTACT:
Randolph F. Williams
President/CEO
(765) 742-1064
Fax: (765) 429-5932
www.LSBANK.com
lsbmail@LSBANK.com

Lafayette, Ind. - Tuesday, September 21, 2004

LSB Financial Corp. Announces Payment of Stock Dividend

          (Nasdaq: LSBI). The Board of Director's of LSB Financial Corp., the holding company of Lafayette Savings Bank, FSB, announced today the declaration of a 5% stock dividend payable on October 29, 2004 to shareholders of record as of October 8, 2004. Under the terms of this stock dividend, LSB Financial Corp.'s shareholders will receive a dividend of one share for every 20 shares held on the record date. Fractional shares will be rounded up and paid as a whole share.

          The Company anticipates that the outstanding shares of stock after the dividend will be increased from approximately 1,366,376 to approximately 1,434,876.

          LSB President and CEO Randolph F. Williams stated, "We are pleased with the continued growth in earnings per share. As a community bank, we offer competitive products in a local, service oriented environment, allowing us to reward both our customers and shareholders for the confidence they have placed with us. We believe the stock dividend should increase the common stock's liquidity making it more attractive to purchase, ultimately maximizing long term shareholder value.

          The closing market price of LSB stock on September 20, 2004 was $24.50 per share as reported by the NASDAQ stock market.

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