FOR IMMEDIATE RELEASE
July 30, 2003 | Contact: | Randolph F. Williams
President
(765) 742-1064 |
LSB Financial Corp. Announces Second Quarter Results
and Payment of Cash Dividend
LSB Financial Corp. (NASDAQ:LSBI), the parent company of Lafayette Savings Bank, FSB, today reported earnings for the six months ended June 30, 2003. Net income for the first six months of 2003 was $1.4 million, virtually unchanged from the first six months of 2002. Net interest income increased 6.59% from $4.8 million for the first half of 2002 to $5.2 million for the same period in 2003. Non-interest income increased by $494,000 or 45.24%, primarily as a result of gains on the sale of mortgage loans for the first six months of 2003 of $1.1 million compared to $426,000 for the same period in 2002. Diluted earnings per share for the first six months of 2003 were $1.02 compared to $1.03 for 2002.
LSB President and CEO Randolph F. Williams stated, "We are pleased with the year-to-date results achieved during these continuing challenging times. Bank management and staff continue to monitor the unprecedented low interest rate environment and the local economy so that we may provide a banking environment which we believe will provide ongoing value to our shareholders and our community. Again in the second, quarter national mortgage rates set new lows five times. Our customers continued to refinance their loans, allowing us to generate loan sales in the secondary market of $66.5 million for the first six months of 2003." The increase in non-performing loans caused by the weak economy resulted in an increase in the provision for loan loss reserves to $700,000 for the six months ended June 30, 2003 compared to $150,000 for the same period in 2002, bringing the allowance for loan losses to $2.6 million or 1.01% of total loans, compared to 0.72% at year-end 2002.
Further, the Company announced today that it will pay a quarterly cash dividend of $0.125 per share to shareholders of record as of the close of business on August 8, 2003, with a payment date of September 5, 2003.
The closing market price of LSB stock on July 29, 2003, was $25.23 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)
| | At June 30, | At
December 31, |
| Selected Balance Sheet Data: | | 2003 | 2002 | 2002
|
| Cash and due from banks | | $2,419 | $1,226 | $1,627 |
| Short-term investments | | 16,482 | 10,962 | 14,357 |
| Securities available-for-sale | | 18,134 | 13,663 | 11,779 |
| Loans held for sale | | 3,558 | 2,224 | 8,063 |
| Net Portfolio loans | | 256,166 | 258,886 | 269,834 |
| Allowance for loan losses | | 2,631 | 1,482 | 1,996 |
| Premises and equipment, net | | 7,050 | 6,924 | 7,039 |
| FHLB stock, at cost | | 3,832 | 3,525 | 3,782 |
| Other assets | | 3,291 | 3,458 | 2,615 |
| Total assets | | 310,932 | 300,868 | 319,096 |
| | | | |
| Deposits | | 221,985 | 206,331 | 221,590 |
| Advances from FHLB | | 61,473 | 68,345 | 70,473 |
| Other liabilities | | 972 | 1,509 | 1,531 |
| | | | |
| Shareholders' Equity | | 26,502 | 24,683 | 25,502 |
| Book value per share | | $20.00 | $18.44 | $19.20 |
| Equity / Assets | | 8.52% | 8.20% | 7.99% |
| Total shares outstanding | | 1,356,200 | 1,379,446 | 1,364,188 |
| | | | |
| Asset Quality Data: | | | | |
| | | | |
| Non-accruing loans | | $4,893 | $2,466 | $3,310 |
| Other real estate/assets owned | | 600 | 224 | 279 |
| Total non-performing assets | | 5,493 | 2,690 | 3,589 |
| Non-performing loans / Total loans | | 1.88% | 0.94% | 1.19% |
| Non-performing assets / Total assets | | 1.77% | 0.89% | 1.12% |
| Allowance for loan losses / Non-performing loans | | 53.77% | 60.10% | 60.30% |
| Allowance for loan losses / Total gross loans | | 1.01% | 0.57% | 0.72% |
| Loans charged off | | $70 | $107 | $146 |
| Recoveries on loans previously charged off | | 4 | 6 | 10 |
| | | |
|
| Three months ended: | Six months ended: |
| Selected operating data: | June 30, | June 30, |
| 2003 | 2002 | 2003 | 2002 |
| | | |
|
| Total Interest Income | $4,613 | $4,981 | $9,600 | $9,886 |
| Total Interest Expense | 2,167 | 2,484 | 4,444 | 5,049 |
| Net Interest Income | 2,446 | 2,497 | 5,156 | 4,837 |
| Provision for Loan Losses | 450 | 75 | 700 | 150 |
| Net Interest Income after provision | 1,996 | 2,422 | 4,456 | 4,687 |
| Non-interest income: | | | | |
| Deposit Account Service Charges | 217 | 188 | 439 | 349 |
| Gain on Sale of Mortgage Loans | 515 | 191 | 1,080 | 426 |
| Gain on Sale of Securities | 0 | 0 | 0 | 0 |
| Other Non-interest Income | 100 | 133 | 67 | 317 |
| Total Non-Interest Income | 832 | 512 | 1,586 | 1092 |
| Non-Interest Expense: | | | | |
| Salaries and benefits | 1,107 | 982 | 2,192 | 2,019 |
| Occupancy and equipment, net | 259 | 266 | 560 | 524 |
| Computer service | 75 | 82 | 167 | 160 |
| Advertising | 72 | 103 | 194 | 199 |
| Other | 290 | 294 | 606 | 639 |
| Total non-interest expense | 1,803 | 1,727 | 3,719 | 3,541 |
| Income before income taxes | 1,025 | 1,207 | 2,323 | 2,238 |
| Income tax expense | 400 | 468 | 913 | 813 |
| Net income | 625 | 739 | 1,410 | 1,425 |
| | | | |
| Weighted average number of diluted shares | 1,386,846 | 1,382,379 | 1,372,159 | 1,378,128 |
| Diluted Earnings per Share | $0.45 | $0.53 | $1.02 | $1.03 |
| | | | |
| Return on average equity | 9.47% | 12.09% | 10.80% | 11.82% |
| Return on average assets | 0.80% | 0.99% | 0.90% | 0.97% |
| Average earning assets | 298,830 | 283,897 | 300,402 | 280,203 |
| Net interest margin | 3.27% | 3.52% | 3.43% | 3.45% |
| Efficiency ratio | 64.42% | 58.86% | 61.88% | 61.27% |
