Exhibit 99.1
101 Main St.
P.O. Box 1628
Lafayette, IN 47902
(765) 742-1064
www.LSBANK.com
| FOR IMMEDIATE RELEASE | For further information contact: |
| | Randolph F. Williams |
| | President/CEO |
| | (765) 742-1064 |
| | Fax: (765) 429-5932 |
LSB Financial Corp. Announces First Quarter Results Up 9.8%
May 9, 2013, Lafayette, IN - LSB Financial Corp. (NASDAQ:LSBI), the parent company of Lafayette Savings Bank, FSB, today reported quarterly earnings of $653,000 or $0.42 diluted earnings per share compared to $595,000 or $0.38 diluted earnings per share a year earlier. The major contributor to the bank’s performance was a $200,000 decrease in the provision for loan losses, a 33% improvement over last year. In addition, other income increased $158,000 led primarily by a $133,000 increase in wealth management income. These gains were offset by a $289,000 decrease in net interest income. Randolph F. Williams, president and CEO stated, “The core performance of the bank is solid.”
A positive factor this quarter was the continuing improvement in loan quality. At quarter end, non-performing assets totaled $4.0 million or 1.11% of total assets, compared to $6.7 million or 1.84% of assets at the end of 2012 and $12.8 million or 3.44% one year ago. Williams continued, “Our loan loss reserve of $6.1 million represents 158% of non-performing loans and 2.17% of total loans. We have one OREO property. I believe we can say that the financial situation of the bank is sound.”
The bank continues to maintain a firm capital base with a capital-to-asset ratio at March 31, 2013 of 10.95% compared to 9.90% for the same period in 2012, both of which are well above the current definition of “well-capitalized” as defined by the bank regulators. Once the new capital requirements mandated under the Dodd-Frank Act become known, we will be better able to set our longer term capital targets.
The closing market price of LSB stock on May 8, 2013 was $20.50 per share as reported by the Nasdaq Global 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, 2013 | | | Year ended December 31, 2012 | |
| | | | | | | |
| Cash and due from banks | | $ | 1,249 | | | $ | 25,643 | |
| Interest bearing deposits | | | 22,838 | | | | 5.778 | |
| Interest bearing Time Deposits | | | 1,747 | | | | 1,740 | |
| Securities available-for-sale | | | 37,998 | | | | 28,004 | |
| Loans held for sale | | | 2,296 | | | | 1,363 | |
| Net portfolio loans | | | 273,062 | | | | 280,257 | |
| Allowance for loan losses | | | 6,062 | | | | 5,900 | |
| Premises and equipment, net | | | 7,157 | | | | 7,069 | |
| Federal Home Loan Bank stock, at cost | | | 3,185 | | | | 3,185 | |
| Bank owned life insurance | | | 6,633 | | | | 6,595 | |
| Other assets | | | 5,025 | | | | 4,976 | |
| Total assets | | | 361,190 | | | | 364,610 | |
| | | | | | | | | |
| Deposits | | | 309,357 | | | | 308,637 | |
| Advances from Federal Home Loan Bank | | | 10,000 | | | | 15,000 | |
| Other liabilities | | | 2,279 | | | | 2,018 | |
| Total liabilities | | | 321,636 | | | | 325,655 | |
| | | | | | | | | |
| Shareholders’ equity | | | 39,554 | | | | 38,955 | |
| Book value per share | | $ | 25.41 | | | $ | 25.04 | |
| Equity / assets | | | 10.95 | % | | | 10.68 | % |
| Total shares outstanding | | | 1,556,782 | | | | 1,555,972 | |
| | | | | | | | | |
| Asset quality data: | | | | | | | | |
| Total non-accruing loans | | $ | 3,845 | | | $ | 6,443 | |
| Non-accruing loans 90 or more days past due | | | 1,834 | | | | 2,907 | |
Loans past due 90 days still on accrual | | | --- | | | | --- | |
| Non-accruing loans less than 90 days past due | | | 2,011 | | | | 3,536 | |
| Other real estate / assets owned | | | 162 | | | | 256 | |
| Total non-performing assets | | | 4,007 | | | | 6,699 | |
| Non-performing loans / total loans | | | 1.40 | % | | | 2.29 | % |
| Non-performing assets / total assets | | | 1.11 | % | | | 1.84 | % |
| Allowance for loan losses / non-performing loans | | | 157.66 | % | | | 91.57 | % |
| Allowance for loan losses / non-performing assets | | | 151.29 | % | | | 88.07 | % |
| Allowance for loan losses / total loans | | | 2.17 | % | | | 2.06 | % |
| Loans charged off (quarter-to-date and year-to-date, respectively) | | $ | 321 | | | $ | 1,710 | |
| Recoveries on loans previously charged off | | | 83 | | | | 179 | |
| | | Three months ended March 31, | |
| Selected operating data: | | 2013 | | | 2012 | |
| | | | | | | |
| Total interest income | | $ | 3,642 | | | $ | 4,194 | |
| Total interest expense | | | 647 | | | | 910 | |
| Net interest income | | | 2,995 | | | | 3,284 | |
| Provision for loan losses | | | 400 | | | | 600 | |
| Net interest income after provision for loan losses | | | 2,595 | | | | 2,684 | |
| Non-interest income: | | | | | | | | |
| Deposit account service charges | | | 272 | | | | 325 | |
| Gain on sale of mortgage loans | | | 430 | | | | 406 | |
| Net (loss) on sale of real estate owned | | | (2 | ) | | | (83 | ) |
| Other non-interest income | | | 418 | | | | 260 | |
| Total non-interest income | | | 1,118 | | | | 908 | |
| Non-interest expense: | | | | | | | | |
| Salaries and benefits | | | 1,527 | | | | 1,519 | |
| Occupancy and equipment, net | | | 319 | | | | 318 | |
| Computer service | | | 142 | | | | 148 | |
| Advertising | | | 115 | | | | 88 | |
| Other | | | 572 | | | | 587 | |
| Total non-interest expense | | | 2,675 | | | | 2,660 | |
| Income before income taxes | | | 1,038 | | | | 932 | |
| Income tax expense | | | 385 | | | | 337 | |
| Net income | | | 653 | | | | 595 | |
| Other comprehensive income (loss) | | | 11 | | | | (19 | ) |
| Comprehensive income | | $ | 664 | | | $ | 576 | |
| | | | | | | | | |
| Weighted average number of diluted shares | | | 1,563,664 | | | | 1,556,001 | |
| Diluted earnings per share | | $ | 0.42 | | | $ | 0.38 | |
| | | | | | | | | |
| Return on average equity | | | 6.65 | % | | | 6.51 | % |
| Return on average assets | | | 0.72 | % | | | 0.65 | % |
| Average earning assets | | $ | 342,613 | | | $ | 347,250 | |
| Net interest margin | | | 3.50 | % | | | 3.78 | % |
| Efficiency ratio | | | 72.04 | % | | | 74.05 | % |
