Exhibit 99.1 |
NEWS RELEASE |
FOR IMMEDIATE RELEASE February 22, 2005 | Contact: Randolph F. Williams President (765) 742-1064 |
LSB Financial Corp. Announces Record Year-End ResultsLSB Financial Corp. (NASDAQ:LSBI), the parent company of Lafayette Savings Bank, FSB, today reported recordearnings for the year ended December 31, 2004. Net income for 2004 was $3.3 million, up $315,000 or 10.7% over net income for 2003. Diluted earnings per share for 2004, adjusted for a 5% stock dividend, increased 9.7% to $2.23 compared to $2.04 for 2003. LSB President and CEO Randolph F. Williams stated, “We are pleased with our results in 2004. The year 2004 was Lafayette Savings Bank’s 135th year of business as an independent, community bank. We offer our customers a local board of directors, local decision making and local account servicing. Our nine person management team provides our customers a combined 173 years of banking experience. We know our market and can design products based on our understanding of our customer’s needs. We believe that it was the combination of these things that allowed us to reach a milestone in 2004 of asset size over $350 million, up 11% over 2003. Serving local customers with local directors, management and staff has proved a successful way to enhance long-term shareholder value.” Mr. Williams further stated, “We were challenged by the fact that the gradual rise in interest rates had reduced the number of borrowers refinancing their mortgages to salable, fixed rate products, resulting in a $1.2 million decrease in the gain on the sale of mortgages. We were able to take advantage of borrower’s increased interest in adjustable rate products which we keep in our portfolio and increased the size of our loan portfolio by $41.0 million to $317.8 million. This increase in our loan portfolio contributed to a $329,000 increase in net interest income. We also cut expenses by $188,000 and increased other non-interest sources of income by $150,000, excluding the gains on sale of mortgages. Management’s ongoing analysis of asset quality resulted in a $500,000 provision for loan losses in 2004, more in line with prior years and down $725,000 from the $1.2 million provision in 2003 which was made in response to concerns with the economic downturn.” The closing price of LSB stock on February 18, 2005 was $26.50 per share as reported by the Nasdaq National Market. LSB FINANCIAL CORP. |
Year Ended December 31, 2004 | Year Ended December 31, 2003 | ||||
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Selected Balance Sheet Data: | |||||
Cash and due from banks | $ 2,395 | $ 1,906 | |||
Short-term investments | 6,818 | 7,491 | |||
Securities available-for-sale | 7,947 | 14,050 | |||
Loans held for sale | 1,050 | 803 | |||
Net Portfolio loans | 317,877 | 276,763 | |||
Allowance for loan losses | 2,095 | 3,098 | |||
Premises and equipment, net | 6,750 | 7,110 | |||
FHLB stock, at cost | 4,110 | 3,928 | |||
Other assets | 8,098 | 7,221 | |||
Total assets | 355,045 | 319,272 | |||
Deposits | 256,631 | 225,485 | |||
Advances from FHLB | 66,808 | 64,851 | |||
Other liabilities | 1,213 | 1,209 | |||
Shareholders' Equity | 30,393 | 27,727 | |||
Book value per share | $ 21.41 | $ 19.86 | |||
Equity / Assets | 8.56 | % | 8.68 | % | |
Total shares outstanding | 1,437,250 | 1,356,200 | |||
Asset Quality Data: | |||||
Non-accruing loans | $ 4,207 | $ 3,728 | |||
Loans past due 90 days still on accrual | $ 484 | $ 0 | |||
Other real estate/assets owned | 1,231 | 340 | |||
Total non-performing assets | 5,922 | 4,068 | |||
Non-performing loans / Total loans | 1.84 | % | 1.45 | % | |
Non-performing assets / Total assets | 1.67 | % | 1.27 | % | |
Allowance for loan losses / Non-performing assets | 35.38 | % | 76.16 | % | |
Allowance for loan losses / Total gross loans | 0.65 | % | 1.10 | % | |
Loans charged off | $ 1,520 | $ 129 | |||
Recoveries on loans previously charged off | 17 | 6 |
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Year Ended | |||||
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December 31, 2004 | December 31, 2003 | ||||
Selected operating data: | |||||
Total Interest Income | $ 19,286 | $ 19,070 | |||
Total Interest Expense | 8,416 | 8,529 | |||
Net Interest Income | 10,870 | 10,541 | |||
Provision for Loan Losses | 500 | 1,225 | |||
Net Interest Income after provision | 10,370 | 9,316 | |||
Non-interest income: | |||||
Deposit Account Service Charges | 889 | 820 | |||
Gain on Sale of Mortgage Loans | 593 | 1,810 | |||
Gain on Sale of Securities | 11 | 0 | |||
Other Non-interest Income | 747 | 677 | |||
Total Non-Interest Income | 2,240 | 3,307 | |||
Non-Interest Expense: | |||||
Salaries and benefits | 4,190 | 4,376 | |||
Occupancy and equipment, net | 1,136 | 1,084 | |||
Computer service | 371 | 367 | |||
Advertising | 279 | 487 | |||
Other | 1,578 | 1,428 | |||
Total non-interest expense | 7,554 | 7,742 | |||
Income before income taxes | 5,056 | 4,881 | |||
Income tax expense | 1,792 | 1,932 | |||
Net income | $ 3,264 | $ 2,949 | |||
Weighted average number of diluted shares | 1,460,572 | 1,448,567 | |||
Diluted Earnings per Share | $ 2.23 | $ 2.04 | |||
Return on average equity | 11.19 | % | 11.03 | % | |
Return on average assets | 0.95 | % | 0.94 | % | |
Average earning assets | $ 327,094 | $ 300,952 | |||
Net interest margin | 3.32 | % | 3.50 | % | |
Efficiency ratio | 59.90 | % | 61.34 | % |
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