Market Overview

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

LAFAYETTE, Ind., Nov. 7, 2012 /PRNewswire/ -- LSB Financial Corp. (NASDAQ: LSBI), the parent company of Lafayette Savings Bank, FSB, today reported year-to-date earnings of $2.0 million or $1.28 diluted earnings per share compared to $1.1 million or $0.73 diluted earnings per share a year earlier.  This equates to an annualized return on equity of 7.11% and return on assets of 0.72%.  Earnings for the quarter were $879,000 or $0.56 diluted earnings per share compared to $457,000 or $0.29 diluted earnings per share a year earlier.  The major contributors to the Bank's year-to-date performance were a $1,136,000 decrease in the provision for loan losses, a 41.5% improvement over last year; and an $878,000 increase in the gain on the sale of mortgage loans over the first nine months of last year. These were offset by a $520,000 or 5.18% decrease in net interest income for the nine months compared to the same period in 2011, primarily because of slower loan growth.

Randolph F. Williams, president and CEO stated, "We are very pleased with the performance and earnings of the Company during the third quarter. We are particularly pleased that at quarter-end, non-performing assets had decreased to $10.6 million or 2.97% of total assets, compared to $13.8 million or 3.79%, at the end of 2011. Our team has done an outstanding job of improving asset quality, reducing non-performing loans by $11.8 million from a high point of $21.2 million at June 30, 2011 to $9.4 million at September 30, 2012. The allowance for loan losses at September 30, 2012 was at 1.89% of total loans and equal to 58.3% of non-performing loans. Over 40% of our non-performing loans are either paying as agreed or are 60 or fewer days past due."

Williams continued, "Despite the extended low interest rate environment, we have maintained a strong net interest margin, showing only a slight decrease of nine basis points in the last twelve months.  As a community bank, our success depends greatly on actively managing this number. We focus more on our customers' total relationships and try to meet all of their financial needs: from checking accounts to mortgages to business loans to financial advice.

"The Bank continues to maintain a strong capital base with a capital-to-asset ratio at September 30, 2012 of 10.82% and a risk-based capital ratio of 15.23%, both of which are well above the current definition of 'well-capitalized' as defined by bank regulation, although the new BASEL III capital requirements, which are still being discussed, could change that.  In the meantime we will try to determine the potential effect on the Bank of a fully implemented BASEL III capital calculation and plan our capital strategies accordingly."

The closing market price of LSB stock on November 6, 2012 was $21.19 per share as reported by the NASDAQ Global Market. This represents an increase of 46.8% 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:

Three months ended

September 30, 2012

(Unaudited)

Year ended

December 31, 2011




Cash and due from banks

$9,761

$18,552

Interest bearing deposits

5,251

3,156

Interest bearing time deposits

1,490

0

Securities available-for-sale

25,906

13,845

Loans held for sale

2,873

3,120

Net portfolio loans

287,312

302,510

Allowance for loan losses

5,482

5,331

Premises and equipment, net

6,010

6,146

Federal Home Loan Bank stock, at cost

3,185

3,185

Bank owned life insurance

6,555

6,434

Other assets

6,504

7,342

Total assets

354,847

364,290




Deposits

299,597

308,433

Advances from Federal Home Loan Bank

15,000

18,000

Other liabilities

1,867

1,683

Total liabilities

316,464

328,116




Shareholders' equity

38,383

36,174

Book value per share

$24.67

$23.26

Equity / assets

10.82%

9.93%

Total shares outstanding

1,555,972

1,555,222




Asset quality data:



Total non-accruing loans

$9,405

$12,059

Non-accruing loans 90 or more days past due

5,651

6,764

Non-accruing loans less than 90 days past due

3,754

5,295

Other real estate / assets owned

1,150

1,746

Total non-performing assets

10,555

13,805

Non-performing loans / total loans

3.24%

3.95%

Non-performing assets / total assets

2.97%

3.79%

Allowance for loan losses / non-performing loans

58.29%

44.21%

Allowance for loan losses / non-performing assets

51.94%

38.62%

Allowance for loan losses / total loans

1.89%

1.74%

Loans charged off (nine and twelve months respectively)

$1,588

$5,440

Recoveries on loans previously charged off (nine and twelve months
respectively)

138

67


Three months ended
September 30,
(Unaudited)

Nine months ended
September 30,
(Unaudited)


2012

2011

2012

2011

Selected operating data:





Total interest income

$3,901

$4,399

$12,045

$13,233

Total interest expense

769

1,041

2,530

3,198

 Net interest income

3,132

3,358

9,515

10,035

Provision for loan losses

500

885

1,600

2,736

 Net interest income after provision for loan losses

2,632

2,473

7,915

7,299

Non-interest income:





Deposit account service charges

338

381

985

992

Gain on sale of mortgage loans

770

334

1,602

724

Net gain on sale of securities

0

5

0

7

Net (loss) on sale of real estate owned

24

(103)

(115)

(438)

Other non-interest income

348

307

793

845

 Total non-interest income

1,480

924

3,265

2,130

Non-interest expense:





Salaries and benefits

1,591

1,436

4,607

4,219

Occupancy and equipment, net

302

292

903

888

Computer service

167

145

468

434

Advertising

72

95

249

210

Other

577

724

1,827

1,941

 Total non-interest expense

2,709

2,692

8,054

7,692

Income before income taxes

1,403

705

3,126

1,737

Income tax expense

524

248

1,142

598

 Net income

879

457

1,984

1,139

Other comprehensive income (loss)

96

39

150

95

Comprehensive income

975

496

2,134

1,234






Weighted average number of diluted shares

1,558,037

1,554,060

1,555,756

1,553,972

Diluted earnings per share

$0.56

$0.29

$1.28

$0.73






Return on average equity

9.27%

5.00%

7.11%

4.19%

Return on average assets

0.98%

0.51%

0.72%

0.42%

Average earning assets

$327,464

$329,297

$324,194

$334,322

Net interest margin

3.83%

4.08%

3.91%

4.00%

Efficiency ratio

65.88%

79.25%

72.04%

81.58%







 

SOURCE LSB Financial Corp.

 

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