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: |
November 6, 2006 | Randolph F. Williams President/CEO (765) 742-1064 Fax: (765) 429-5932 |
LSB Financial Corp. Announces Year-to-Date and Third Quarter Results
and Payment of a Cash Dividend
Net income for the nine months ended September 30, 2006 was $2.6 million, up $9,000 or 0.35% over the same period in 2005. This equates to a year-to-date return on equity of 10.3% and a 0.94% return on assets. While net interest income was up $404,000 or 4.6% and non-interest income was up $276,000 or 15.4%, the provision for loan losses increased $243,000 and non-interest expenses increased $254,000 for the nine month period. For the quarter ended September 30, 2006 net income was $867,000, down 7.2% from the $934,000 reported for the third quarter of the previous year, primarily because of a $143,000 increase in our provision for loan losses. The $867,000 net income equates to a return on equity of 10.2% and a return on assets of 0.95%.
LSB president and CEO, Randolph F. Williams stated, “We are pleased with our ability to have once again generated a double-digit return on equity. Our management team has successfully found ways to generate both interest and non-interest revenue growth even as we absorb the expenses involved in resolving the issue of problem loans. We are encouraged that our non-performing loans as a percent of total loans is down to 1.42% compared to 2.56% last year at this time. There are signs that the local economy is rebounding slowly, as seen most recently in the announcement by the Indiana Department of Workforce Development that the unemployment rate for Tippecanoe County dipped to 3.9%, the lowest since November of 2004.”
Further, the Company announced today that it will pay a quarterly cash dividend of $0.17 per share to shareholders of record as of the close of business on November 3, 2006, with a payment date of December 1, 2006.
The closing price of LSB stock on November 3, 2006, after adjusting for a $0.17 cash dividend, was $24.83 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: | | Nine months ended September 30, 2006 | | Year ended December 31, 2005 | |
Cash and due from banks | | $ | 1,413 | | $ | 1,697 | |
| Short-term investments | | | 6,158 | | | 7,687 | |
| Securities available-for-sale | | | 14,317 | | | 11,611 | |
| Loans held for sale | | | 334 | | | --- | |
| Net portfolio loans | | | 318,366 | | | 330,971 | |
| Allowance for loan losses | | | 2,564 | | | 2,852 | |
| Premises and equipment, net | | | 6,717 | | | 6,813 | |
| Federal Home Loan Bank stock, at cost | | | 4,040 | | | 4,197 | |
| Bank owned life insurance | | | 5,321 | | | 2,715 | |
| Other assets | | | 9,112 | | | 6,973 | |
| Total assets | | | 365,778 | | | 372,664 | |
Deposits | | | 255,978 | | | 265,993 | |
| Advances from Federal Home Loan Bank | | | 73,533 | | | 72,033 | |
| Other liabilities | | | 1,927 | | | 1,817 | |
Shareholders’ equity | | | 34,340 | | | 32,821 | |
| Book value per share | | $ | 21.42 | | $ | 21.32 | |
| Equity / assets | | | 9.39 | % | | 8.81 | % |
| Total shares outstanding | | | 1,605,579 | | | 1,547,806 | |
Asset quality data: | | | | | | | |
| Non-accruing loans | | $ | 4,114 | | $ | 8,432 | |
| Loans past due 90 days still on accrual | | | 445 | | | 127 | |
| Other real estate / assets owned | | | 4,653 | | | 2,004 | |
| Total non-performing assets | | | 9,212 | | | 10,563 | |
| Non-performing loans / total loans | | | 1.42 | % | | 2.56 | % |
| Non-performing assets / total assets | | | 2.52 | % | | 2.83 | % |
| Allowance for loan losses / non-performing loans | | | 56.24 | % | | 33.32 | % |
| Allowance for loan losses / non-performing assets | | | 27.83 | % | | 27.00 | % |
| Allowance for loan losses / total loans | | | 0.80 | % | | 0.85 | % |
| Loans charged off (nine months-to-date and year-to-date, respectively) | | $ | 1,058 | | $ | 492 | |
| Recoveries on loans previously charged off | | | 43 | | | 49 | |
| | | Three months ended September 30, | | Nine months ended September 30, | |
| Selected operating data: | | 2006 | | 2005 | | 2006 | | 2005 | |
| Total interest income | | $ | 5,924 | | $ | 5,469 | | $ | 17,434 | | $ | 15,891 | |
| Total interest expense | | | 2,832 | | | 2,467 | | | 8,200 | | | 7,061 | |
| Net interest income | | | 3,092 | | | 3,002 | | | 9,234 | | | 8,830 | |
| Provision for loan losses | | | 318 | | | 175 | | | 718 | | | 475 | |
| Net interest income after provision | | | 2,774 | | | 2,827 | | | 8,516 | | | 8,355 | |
| Non-interest income: | | | | | | | | | | | | | |
| Deposit account service charges | | | 439 | | | 468 | | | 1,312 | | | 955 | |
| Gain on sale of mortgage loans | | | 65 | | | 109 | | | 172 | | | 271 | |
| Gain on sale of securities and assets | | | 5 | | | 0 | | | 7 | | | 11 | |
| Other non-interest income | | | 200 | | | 128 | | | 582 | | | 560 | |
| Total non-interest income | | | 709 | | | 705 | | | 2,073 | | | 1,797 | |
| Non-interest expense: | | | | | | | | | | | | | |
| Salaries and benefits | | | 976 | | | 1,128 | | | 3,406 | | | 3,415 | |
| Occupancy and equipment, net | | | 325 | | | 254 | | | 905 | | | 795 | |
| Computer service | | | 112 | | | 101 | | | 314 | | | 327 | |
| Advertising | | | 55 | | | 114 | | | 184 | | | 265 | |
| Other | | | 614 | | | 455 | | | 1,613 | | | 1,366 | |
| Total non-interest expense | | | 2,082 | | | 2,052 | | | 6,422 | | | 6,168 | |
| Income before income taxes | | | 1,401 | | | 1,480 | | | 4,167 | | | 3,984 | |
| Income tax expense | | | 534 | | | 546 | | | 1,564 | | | 1,390 | |
| Net income | | | 867 | | | 934 | | | 2,603 | | | 2,594 | |
Weighted average number of diluted shares | | | 1,647,136 | | | 1,629,532 | | | 1,618,646 | | | 1,615,803 | |
| Diluted earnings per share | | $ | 0.53 | | $ | 0.57 | | $ | 1.62 | | $ | 1.62 | |
Return on average equity | | | 10.18 | % | | 11.50 | % | | 10.32 | % | | 10.91 | % |
| Return on average assets | | | 0.95 | % | | 1.01 | % | | 0.94 | % | | 0.94 | % |
| Average earning assets | | $ | 345,101 | | $ | 354,266 | | $ | 348,974 | | $ | 350,266 | |
| Net interest margin | | | 3.58 | % | | 3.39 | % | | 3.53 | % | | 3.36 | % |
| Efficiency ratio | | | 59.79 | % | | 58.08 | % | | 60.65 | % | | 60.76 | % |
