LSB Financial Corp. Announces Year-end and Fourth Quarter Results

LAFAYETTE, Ind., March 7, 2014 /PRNewswire/ -- LSB Financial Corp. LSBI, the parent company of Lafayette Savings Bank, FSB, today reported net income for 2013 of $2.5 million or $1.62 per share, compared to net income of $2.7 million or $1.70 per share for 2012. For the fourth quarter, net income was $518,000 or $0.33 per share in 2013 compared to $676,000 or $0.43 per share for the same period in 2012. The decrease in income in 2013 was primarily due to a $1.1 million or 8.7% decrease in net interest income and a $1.2 million or 46% decrease in gain on sale of loans. This was partially offset by a $1.5 million decrease in the provision for loan losses resulting from the continued improvement in asset quality.

LSB President and CEO, Randolph F. Williams, stated, "We continued to focus on improving credit quality during the year. A major improvement was the 61% decrease in non-performing assets from $6.7 million at December 31, 2012 to $2.6 million at December 31, 2013, which resulted in a ratio of non-performing assets to total assets of 0.70% at December 31, 2013 compared to 1.84% in 2012. At December 31, 2013, our allowance for loan losses was $6.3 million or 2.4 times the level of non-performing loans. We believe our improved credit quality positions us well to compete as the economy recovers."

Mr. Williams continued, "The core profitability of the bank remains strong. Our net interest margin ended the year at 3.36%, down from 3.87% at the end of 2012. As a community bank we generate our earnings primarily by gathering deposits and making loans so this is an important number for us. The net interest margins we are seeing now are back in the range we were accustomed to before the recession. Our 81% loan-to-deposit ratio is further evidence that we consider ourselves first and foremost a community bank. Our balance sheet shows our success in attracting and maintaining local deposits. Our core deposits increased by $17.4 million in 2013 while we repaid $5.0 million of FHLB advances. We continue to deleverage, reducing loans by $26.3 million which, along with our strong earnings, was a factor in increasing our capital ratio from 10.7% to 11.1% at the end of 2013."

For the third consecutive year we are proud to have been named to the Indianapolis Business Journal's top 25 performing Indiana stocks.

The closing price of LSB stock on March 6, 2014 was $28.76 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:			December 31, 2013		December 31, 2012

Cash and due from banks			$21,961		$25,643
Short-term investments			2,237		5,778
Interest bearing time deposits			1,743		1,740
Securities available-for-sale			62,705		28,004
Loans held for sale			657		1,363
Net portfolio loans			254,703		280,257
Allowance for loan losses			6,348		5,900
Premises and equipment, net			7,933		7,069
Federal Home Loan Bank stock, at cost			3,185		3,185
Bank-owned life insurance			6,745		6,595
Other assets			5,712		4,976
Total assets			367,581		364,610

Deposits			314,620		308,637
Federal Home Loan Bank advances			10,000		15,000
Other liabilities			2,234		2,018
Total liabilities			326,854		325,655

Stockholders' equity			40,727		38,955
Book value per share			$26.03		$25.04
Equity / assets			11.08%		10.68%
Total shares outstanding			1,564,838		1,555,972

Deposit data:
Core deposits			185,106		167,704
Time deposits			129,514		140,933
Wholesale deposits (included in Time deposits)			13,690		13,690
FHLB Advances			10,000		15,000

Asset quality data:
Non-accruing loans			$ 2,572		$ 6,443
Loans past due 90 days still on accrual			---		---
Other real estate / assets owned			18		256
Total non-performing assets			2,590		6,699
Non-performing assets / total assets			0.70%		1.84%
Allowance for loan losses / non-performing loans			246.81%		91.56%
Allowance for loan losses / non-performing assets			245.13%		88.06%
Allowance for loan losses / total loans			2.43%		2.06%
Loans charged off			$ 517		$1,710
Recoveries on loans previously charged off			315		179
	Three months ended December 31,			Year ended December 31,
Selected operating data:	2013	2012		2013		2012
Total interest income	$3,278	$3,675		$13,771		$15,720
Total interest expense	545	695		2,363		3,225
Net interest income	2,733	2,980		11,408		12,495
Provision for loan losses	---	500		650		2,100
Net interest income after provision	2,733	2,480		10,758		10,395
Non-interest income:
Deposit account service charges	312	353		1,204		1,338
Gain on sale of mortgage loans	130	887		1,337		2,489
Gain(loss) on sale OREO	(51)	18		(53)		(97)
Other non-interest income	313	244		1,403		1,036
Total non-interest income	704	1,502		3,891		4,766
Non-interest expense:
Salaries and benefits	1,348	1,598		5,833		6,205
Occupancy and equipment, net	358	305		1,326		1,208
Computer service	153	150		606		618
Advertising	132	128		437		377
FDIC Insurance Premium	115	120		476		481
Other	516	616		1,977		2,081
Total non-interest expense	2,622	2,917		10,655		10,970
Income before income taxes	816	1,065		3,994		4,191
Income tax expense	298	389		1,456		1,532
Net income	518	676		2,538		2,659

Weighted average number of diluted shares	1,575,572	1,562,365		1,565,597		1,561,495
Diluted earnings per share	$0.33	$0.43		$1.62		$1.70

Return on average equity	5.11%	7.01%		6.37%		7.07%
Return on average assets	0.58%	0.75%		0.70%		0.73%
Average earning assets	$337,185	$320,812		$339,607		$322,977
Net interest margin	3.24%	3.72%		3.36%		3.87%
Efficiency ratio	84.67%	73.10%		72.74%		72.32%

SOURCE LSB Financial Corp

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