Exhibit 99.1
101 Main St.
P.O. Box 1628
Lafayette, IN 47902
(765) 742-1064
www.LSBANK.com
lsbmail@LSBANK.com
FOR IMMEDIATE RELEASE: | FOR FURTHER INFORMATION CONTACT: |
April 19, 2006 | Randolph F. Williams |
| | President/CEO |
| | (765) 742-1064 |
| | Fax: (765) 429-5932 |
LSB Financial Corp. Announces First Quarter Results
LSB Financial Corp. (NASDAQ:LSBI), the parent company of Lafayette Savings Bank, FSB, today reported earnings for the quarter ended March 31, 2006. Net income increased $141,000 or 18.38% for the first quarter of 2006, from $767,000 for the first quarter of 2005 to $908,000 for the first quarter of 2006, resulting in diluted earnings per share of $0.59. Net interest income increased $244,000 or 8.48% over the same period. LSB Financial Corp. President and CEO Randolph F. Williams stated, “I am extremely pleased with our first quarter results. Despite pressure on the net interest margin due to a flattened yield curve and increased competition for loans, our team has done an outstanding job growing earnings. We continue to attract new customers who value the personalized, tailor-made solutions that are provided by Lafayette Savings Bank. The annualized 10.90% return on equity for the first three months of the year ranks us among the top thrifts in Indiana.”
“We continue, however, to have concerns about our local economy. The Indiana Department of Workforce Development unemployment rate for Tippecanoe County increased from 4.4% in January to 4.8% in February, although the announcement that Toyota intends to build 100,000 Camrys per year in Lafayette starting in 2007 should help the local economic recovery. Our non-performing loans decreased from $8.6 million at December 31, 2005 to $7.1 million at March 31, 2006 as we were able to get possession of $1.6 million in foreclosed properties and move them to Real Estate Owned where we may begin to dispose of them. Over 99% of our non-performing loans are collateralized by real estate property.”
Mr. Williams stated, “We believe that Lafayette Savings Bank’s 137 year presence in Greater Lafayette, 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.”
The closing market price of LSB stock on April 18, 2006, was $28.24 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, 2006 | Year ended December 31, 2005 |
| | | |
| Cash and due from banks | $1,398 | $1,697 |
| Short-term investments | 9,851 | 7,687 |
| Securities available-for-sale | 12,015 | 11,611 |
| Loans held for sale | --- | --- |
| Net portfolio loans | 326,306 | 330,971 |
| Allowance for loan losses | 2,725 | 2,852 |
| Premises and equipment, net | 6,767 | 6,813 |
| Federal Home Loan Bank stock, at cost | 4,197 | 4,197 |
| Bank owned life insurance | 2,737 | 2,715 |
| Other assets | 8,499 | 6,973 |
| Total assets | 371,770 | 372,664 |
| | | |
| Deposits | 272,013 | 265,993 |
| Advances from Federal Home Loan Bank | 64,533 | 72,033 |
| Other liabilities | 1,914 | 1,817 |
| | | |
| Shareholders’ equity | 33,310 | 32,821 |
| Book value per share | $21.72 | $21.32 |
| Equity / assets | 8.96% | 8.81% |
| Total shares outstanding | 1,539,806 | 1,547,806 |
| | | |
| Asset quality data: | | |
| Non-accruing loans | $6,759 | $8,432 |
| Loans past due 90 days still on accrual | 293 | 127 |
| Other real estate / assets owned | 3,623 | 2,004 |
| Total non-performing assets | 10,675 | 10,563 |
| Non-performing loans / total loans | 2.14% | 2.56% |
| Non-performing assets / total assets | 2.87% | 2.83% |
| Allowance for loan losses / non-performing loans | 38.64% | 33.32% |
| Allowance for loan losses / non-performing assets | 25.53% | 27.00% |
| Allowance for loan losses / total loans | 0.83% | 0.85% |
| Loans charged off (quarter-to-date and year-to-date, respectively) | $304 | $492 |
| Recoveries on loans previously charged off | 28 | 49 |
| | Three months ended March 31, |
| Selected operating data: | 2006 | 2005 |
| Total interest income | $5,786 | $5,122 |
| Total interest expense | 2,665 | 2,245 |
| Net interest income | 3,121 | 2,877 |
| Provision for loan losses | 150 | 175 |
| Net interest income after provision for loan losses | 2,971 | 2,702 |
| Non-interest income: | | |
| Deposit account service charges | 424 | 206 |
| Gain on sale of mortgage loans | 51 | 65 |
| Gain on sale of securities | 0 | 0 |
| Other non-interest income | 187 | 213 |
| Total non-interest income | 662 | 484 |
| Non-interest expense: | | |
| Salaries and benefits | 1,287 | 1,191 |
| Occupancy and equipment, net | 290 | 276 |
| Computer service | 98 | 99 |
| Advertising | 58 | 41 |
| Other | 483 | 436 |
| Total non-interest expense | 2,216 | 2,043 |
| Income before income taxes | 1,417 | 1,143 |
| Income tax expense | 509 | 376 |
| Net income | 908 | 767 |
| | | |
| Weighted average number of diluted shares | 1,551,989 | 1,530,053 |
| Diluted earnings per share | $0.59 | $0.50 |
| | | |
| Return on average equity | 10.90% | 9.95% |
| Return on average assets | 0.97% | 0.85% |
| Average earning assets | $354,734 | $345,010 |
| Net interest margin | 3.52% | 3.34% |
| Efficiency ratio | 61.00% | 64.12% |
