101 Main St. P.O. Box 1628 Lafayette, IN 47902 (765) 742-1064 www.lafayettesavingsbank.com lsbmail@lsbank.com | ![]() |
FOR IMMEDIATE RELEASE April 16, 2003 | FOR MORE INFORMATION CONTACT: |
Randolph F. Williams President | (765) 742-1064 |
LSB Financial Corp. Announces Record First Quarter Results
LSB Financial Corp. (NASDAQ:LSBI), the parent company of Lafayette Savings Bank, FSB, today reported record earnings for the quarter ended March 31, 2003. Net income for the first quarter of 2003 was $785,000, an increase of $99,000, or 14.43%, from $686,000 for the first quarter of 2002. Diluted earnings per share for the first three months of 2003 increased 14.38% to $0.57 compared to $0.50 for 2002.
LSB President and CEO Randolph F. Williams stated, "Bank management and staff are dedicated to making Lafayette Savings a community bank that consistently provides excellent service and products, which we believe will provide ongoing value to our shareholders and our community. These first quarter results reflect this dedication. Net interest income increased $369,000 over the first quarter of 2002 as our net interest margin increased to 3.59% from 3.39% for the first quarter last year. Because the first quarter of 2003 saw national mortgage rates set new lows five times, our customers continued to refinance their loans, allowing us to generate loan sales on the secondary market of $34.7 million, producing earnings of $565,000." Management's analysis identified the anticipated decline in asset quality caused by the weak economy and in response prudently increased the allowance for loan losses to $2.2 million, an increase of $198,000 over the balance at December 31, 2002, to 0.83% of total loans, compared to 0.72% at year end 2002.
The closing market price of LSB stock on April 15, 2003, was $20.50 per share as reported by the NASDAQ National Market.
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NEXT PAGELSB FINANCIAL CORP. SELECTED CONSOLIDATED FINANCIAL INFORMATION (Dollars in thousands except share and per share amounts) | ||||
Year Ended | Three Months Ended | |||
December 31, | March 31, | |||
Selected Balance Sheet Data: | 2002 | 2003 | ||
Cash and due from banks | $1,627 | $2,817 | ||
Short-term investments | 14,357 | 23,292 | ||
Securities available-for-sale | 11,779 | 11,450 | ||
Loans held for sale | 8,063 | 4,517 | ||
Net Portfolio loans | 269,834 | 258,859 | ||
Allowance for loan losses | 1,996 | 2,194 | ||
Premises and equipment, net | 7,039 | 7,084 | ||
FHLB stock, at cost | 3,782 | 3,782 | ||
Other assets | 2,615 | 3,667 | ||
Total assets | 319,096 | 315,468 | ||
Deposits | 221,590 | 219,700 | ||
Advances from FHLB | 70,473 | 67,473 | ||
Other liabilities | 1,531 | 2,455 | ||
Shareholders' Equity | 25,502 | 25,840 | ||
Book value per share | $19.20 | $19.63 | ||
Equity / Assets | 7.99% | 8.19% | ||
Total shares outstanding | 1,364,188 | 1,349,817 | ||
Asset Quality Data: | ||||
Non-accruing loans | $3,310 | $4,034 | ||
Other real estate/assets owned | 279 | 406 | ||
Total non-performing assets | 3,589 | 4,440 | ||
Non-performing loans / Total loans | 1.29% | 1.69% | ||
Non-performing assets / Total assets | 1.12% | 1.41% | ||
Allowance for loan losses / Non-performing assets | 55.61% | 49.41% | ||
Allowance for loan losses / Total gross loans | 0.72% | 0.83% | ||
Loans charged off | $146 | $53 | ||
Recoveries on loans previously charged off | 10 | 1 | ||
Three months ended: | ||||
Selected operating data: | March 31, | |||
2002 | 2003 | |||
Total Interest Income | $4,905 | $4,987 | ||
Total Interest Expense | 2,564 | 2,277 | ||
Net Interest Income | 2,341 | 2,710 | ||
Provision for Loan Losses | 75 | 250 | ||
Net Interest Income after provision | 2,266 | 2,460 | ||
Non-interest income: | ||||
Deposit Account Service Charges | 153 | 222 | ||
Gain on Sale of Mortgage Loans | 235 | 565 | ||
Gain on Sale of Securities | 0 | 0 | ||
Other Non-interest Income | 192 | -34 | ||
Total Non-Interest Income | 580 | 753 | ||
Non-Interest Expense: | ||||
Salaries and benefits | 1,037 | 1,085 | ||
Occupancy and equipment, net | 258 | 301 | ||
Computer service | 78 | 92 | ||
Advertising | 96 | 121 | ||
Other | 345 | 316 | ||
Total non-interest expense | 1,814 | 1,915 | ||
Income before income taxes | 1,032 | 1,298 | ||
Income tax expense | 346 | 513 | ||
Net income | $686 | $785 | ||
Weighted average number of diluted shares | 1,373,085 | 1,373,436 | ||
Diluted Earnings per Share | $0.50 | $0.57 | ||
Return on average equity | 11.54% | 12.15% | ||
Return on average assets | 0.95% | 1.00% | ||
Average earning assets | $276,509 | $301,934 | ||
Net interest margin | 3.39% | 3.59% | ||
Efficiency ratio | 63.76% | 59.60% |