Exhibit 99.1 101 Main St. www.LSBANK.com |
FOR IMMEDIATE RELEASE: May 5, 2005 | FOR FURTHER INFORMATION CONTACT: Randolph F. Williams President/CEO (765) 742-1064 Fax: (765) 429-5932 |
LSB Financial Corp. Announces First Quarter Results and Payment of a Cash DividendLSB Financial Corp. (NASDAQ:LSBI), the parent company of Lafayette Savings Bank, FSB, today reported earnings for the quarter ended March 31, 2005. Net income increased $47,000 or 6.13% for the first quarter of 2005 to $767,000, resulting in diluted earnings per share of $0.53. Assets, loans and deposits again hit record levels, with assets at $366 million, loans at $326 million and deposits at $266 million. LSB President and CEO Randolph F. Williams stated, “I am delighted that so many local businesses have taken advantage of our ability to meet their borrowing needs. While we have always been a factor for residential loans, we are becoming a factor in local business lending.” Williams continued, “We view the first quarter of 2005 with bridled optimism. Our team of lenders was able to grow the loan portfolio by $7 million during the quarter contributing to an increase in our net interest income of $209,000. Unfortunately, the recent spike in local unemployment rates reminds us that the economic recovery is not yet complete.” Non-performing assets totaled $8.5 million at the end of the quarter, an increase of $2.6 million from year-end. Over 95% of these non-performing assets are secured by real estate property. Based on the analysis of risk factors in the loan portfolio, it was prudent to make a $175,000 provision for loan losses, up $50,000 from the same period last year. “We believe that Lafayette Savings Bank’s 135-year presence in Greater Lafayette and its knowledge of the community and its commitment to providing excellent service to its customers, will serve us well in providing a consistent return to our shareholders.” Further, the Company announced today that it will pay a quarterly cash dividend of $0.16 per share to shareholders of record as of the close of business on May 6, 2005, with a payment date of June 3, 2005. This represents a 10.3% increase over the cash dividend paid for the same period last year. The closing market price of LSB stock on May 4, 2005, was $26.00 per share as reported by the NASDAQ National Market. |
LSB FINANCIAL CORP. | ||
SELECTED CONSOLIDATED FINANCIAL INFORMATION (Dollars in thousands except share and per share amounts) | ||
Selected balance sheet data: | Three months ended March 31, 2005 | Year ended December 31, 2004 |
Cash and due from banks | $1,861 | $2,395 |
Short-term investments | 10,943 | 6,818 |
Securities available-for-sale | 7,932 | 7,947 |
Loans held for sale | 715 | 1,050 |
Net portfolio loans | 324,994 | 317,877 |
Allowance for loan losses | 2,239 | 2,095 |
Premises and equipment, net | 6,715 | 6,750 |
Federal Home Loan Bank stock, at cost | 4,154 | 4,110 |
Bank owned life insurance | 2,649 | 2,627 |
Other assets | 6,087 | 5,471 |
Total assets | 366,050 | 355,045 |
Deposits | 266,047 | 256,631 |
Advances from Federal Home Loan Bank | 66,808 | 66,808 |
Other liabilities | 1,937 | 1,213 |
Shareholders' equity | 31,258 | 30,393 |
Book value per share | $21.25 | $20.26 |
Equity / assets | 8.54% | 8.57% |
Total shares outstanding | 1,469,382 | 1,437,250 |
Asset quality data: | ||
Non-accruing loans | $4,803 | $4,207 |
Loans past due 90 days still on accrual | 2,617 | 484 |
Other real estate / assets owned | 1,114 | 1,231 |
Total non-performing assets | 8,534 | 5,922 |
Non-performing loans / total loans | 2.26% | 1.46% |
Non-performing assets / total assets | 2.33% | 1.67% |
Allowance for loan losses / non-performing loans | 30.18% | 66.04% |
Allowance for loan losses / non-performing assets | 26.24% | 52.31% |
Allowance for loan losses / total loans | 0.68% | 0.96% |
Loans charged off (quarter-to-date and year-to-date, respectively) | $51 | $1,520 |
Recoveries on loans previously charged off | 20 | 17 |
Three months ended March 31, | ||
Selected operating data: | 2005 | 2004 |
Total interest income | $5,122 | $4,661 |
Total interest expense | 2,245 | 1,993 |
Net interest income | 2,877 | 2,668 |
Provision for loan losses | 175 | 125 |
Net interest income after provision for loan losses | 2,702 | 2,543 |
Non-interest income: | ||
Deposit account service charges | 206 | 211 |
Gain on sale of mortgage loans | 65 | 128 |
Gain on sale of securities | 0 | 0 |
Other non-interest income | 213 | 175 |
Total non-interest income | 484 | 514 |
Non-interest expense: | ||
Salaries and benefits | 1,191 | 1,062 |
Occupancy and equipment, net | 276 | 293 |
Computer service | 99 | 95 |
Advertising | 41 | 78 |
Other | 436 | 334 |
Total non-interest expense | 2,043 | 1,862 |
Income before income taxes | 1,143 | 1,195 |
Income tax expense | 376 | 475 |
Net income | 767 | 720 |
Weighted average number of diluted shares | 1,457,173 | 1,462,482 |
Diluted earnings per share | $0.53 | $0.49 |
Return on average equity | 9.91% | 10.20% |
Return on average assets | 0.85% | 0.88% |
Average earning assets | $345,010 | $311,799 |
Net interest margin | 3.34% | 3.42% |
Efficiency ratio | 64.12% | 60.91% |