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: |
March 12, 2007 | Randolph F. Williams |
| | President/CEO |
| | (765) 742-1064 |
| | Fax: (765) 429-5932 |
LSB Financial Corp. Announces Record Year-end Results
LSB Financial Corp. (NASDAQ:LSBI), the parent company of Lafayette Savings Bank, FSB, today reported record earnings for the year ended December 31, 2006. Net income for 2006 was $3.4 million, up $82,000 or 2.51% over net income for 2005. Net interest income increased by $287,000 or 2.43%, over 2005, while non-interest income was up $329,000 or 13.11%. The allocation for loan loss reserves for 2006 was $1.0 million, a decrease of $182,000 from the allocation made in 2005.
LSB President and CEO Randolph F. Williams stated, “This was a challenging year for us, which makes us especially pleased to be able to announce these record results. The yield curve was inverted for most of the year. Loan volume was down, real estate foreclosures were at high levels county-wide, and property values were stagnant or falling. However, the lower loan volume made us able to avoid booking very high rate deposits. We also took the opportunity in 2006 to reorganize some loan processes and procedures, to bring some new systems on line and, of course, to work with customers affected by the slow economy. The $1.0 million loan loss reserve allocation we believe gives us sufficient reserves to cover any anticipated losses in our portfolio. We believe the restructuring we have done in 2006 will serve us well in 2007.”
The closing price of LSB stock on March 9, 2006 was $26.68 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: | Year ended December 31, 2006 | Year ended December 31, 2005 |
| | | |
Cash and due from banks | $1,391 | $1,697 |
Short-term investments | 8,336 | 7,687 |
Securities available-for-sale | 16,316 | 11,611 |
Loans held for sale | 992 | --- |
Net portfolio loans | 316,699 | 330,971 |
Allowance for loan losses | 2,770 | 2,852 |
Premises and equipment, net | 6,600 | 6,813 |
Federal Home Loan Bank stock, at cost | 3,997 | 4,197 |
Bank owned life insurance | 5,381 | 2,715 |
Other assets | 8,688 | 6,973 |
Total assets | 368,400 | 372,664 |
| | | |
Deposits | 255,304 | 265,993 |
Advances from Federal Home Loan Bank | 76,618 | 72,033 |
Other liabilities | 1,638 | 1,817 |
| | | |
Shareholders’ equity | 34,840 | 32,821 |
Book value per share | $21.73 | $20.20 |
Equity / assets | 9.46% | 8.81% |
Total shares outstanding | 1,603,209 | 1,625,196 |
| | | |
Asset quality data: | | |
Non-accruing loans | $7,364 | $8,432 |
Loans past due 90 days still on accrual | 147 | 127 |
Other real estate / assets owned | 4,169 | 2,004 |
Total non-performing assets | 11,680 | 10,563 |
Non-performing loans / total loans | 2.34% | 2.56% |
Non-performing assets / total assets | 3.17% | 2.83% |
Allowance for loan losses / non-performing loans | 36.88% | 33.32% |
Allowance for loan losses / non-performing assets | 23.72% | 27.00% |
Allowance for loan losses / total loans | 0.86% | 0.85% |
Loans charged off ( year-to-date) | $1,149 | $492 |
Recoveries on loans previously charged off | 49 | 49 |
| | Three months ended December 31, | Year ended December 31, |
Selected operating data: | 2006 | 2005 | 2006 | 2005 |
Total interest income | $5,829 | $5,608 | $23,263 | $21,498 |
Total interest expense | 2,941 | 2,604 | 11,142 | 9,664 |
Net interest income | 2,888 | 3,004 | 12,121 | 11,834 |
Provision for loan losses | 300 | 725 | 1,018 | 1,200 |
Net interest income after provision | 2,588 | 2,279 | 11,103 | 10,634 |
Non-interest income: | | | | |
Deposit account service charges | 454 | 468 | 1,766 | 1,423 |
Gain on sale of mortgage loans | 41 | 51 | 214 | 322 |
Gain on sale of securities | 0 | 0 | 0 | 0 |
Other non-interest income | 269 | 194 | 858 | 764 |
Total non-interest income | 764 | 713 | 2,838 | 2,509 |
Non-interest expense: | | | | |
Salaries and benefits | 1,185 | 911 | 4,590 | 4,325 |
Occupancy and equipment, net | 300 | 286 | 1,205 | 1,081 |
Computer service | 111 | 101 | 425 | 428 |
Advertising | 112 | 104 | 297 | 369 |
Other | 463 | 542 | 2,076 | 1,908 |
Total non-interest expense | 2,171 | 1,944 | 8,593 | 8,111 |
Income before income taxes | 1,181 | 1,048 | 5,348 | 5,032 |
Income tax expense | 434 | 374 | 1,998 | 1,764 |
Net income | 747 | 674 | 3,350 | 3,268 |
| | | | | |
Weighted average number of diluted shares | 1,613,113 | 1,628,495 | 1,618,632 | 1,622,043 |
Diluted earnings per share | $0.46 | $0.41 | $2.07 | $2.02 |
| | | | | |
Return on average equity | 8.62% | 8.19% | 9.88% | 10.21% |
Return on average assets | 0.81% | 0.72% | 0.91% | 0.89% |
Average earning assets | $345,613 | $354,368 | $348,132 | $351,291 |
Net interest margin | 3.34% | 3.39% | 3.48% | 3.37% |
Efficiency ratio | 64.75% | 64.99% | 61.63% | 61.72% |
