101 Main St. P.O. Box 1628 Lafayette, IN 47902 (765) 742-1064 www.lafayettesavingsbank.com lsbmail@lsbank.com | ![]() |
FOR IMMEDIATE RELEASE | FOR MORE INFORMATION CONTACT: Randolph F. Williams (765) 742-1064 President/CEO (765) 429-5932 Fax |
LSB Financial Corp. Announces Record Results and Payment of Cash Dividend
LSB Financial Corp. (Nasdaq:LSBI), the parent company of Lafayette Savings Bank, FSB, today reported record earnings for the nine months ended September 30, 2003. Net income for the third quarter of 2003 was $946,000, an increase of $297,000, or 45.76%, over the third quarter of 2002. For the first nine months of 2003 net income was $2.4 million, an increase of $282,000, or 13.60%, from the first nine months of 2002. Diluted earnings per share year-to-date for 2003 were $1.71 per share, up 14.00% over the same period last year. Net interest income increased 6.06% from $7.5 million for the first nine months of 2002 to $7.9 million for the same period in 2003. Non-interest income increased by $1.1 million or 72.13%, primarily as a result of gains of $1.7 million on the sale of mortgage loans for the first nine months of 2003 compared to $530,000 for the same period in 2002.
LSB President and CEO Randolph F. Williams stated, "In the face of challenging economic and competitive times, we are very pleased to report record results for the quarter and for the year. The management team has worked diligently to increase our net interest margin and improve our efficiency. For the first nine months of the year our return on assets was 1.00% and our return on equity was 11.88%. True to our community banking roots we were able to accomplish this without sacrificing the highly personalized service and tailor-made products that people associate with Lafayette Savings Bank."
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 November 7, 2003, with a payment date of December 5, 2003.
The closing market price of LSB stock on October 24, 2003, was $26.32 per share as reported by the Nasdaq National Market.
Lafayette, Ind. - Monday, October 27, 2003
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LSB FINANCIAL CORP. | |||
SELECTED CONSOLIDATED FINANCIAL INFORMATION | |||
(Dollars in thousands except share and per share amounts) | |||
At September 30, | At December 31, | ||
Selected Balance Sheet Data: | 2003 | 2002 | |
Cash and due from banks | $1,950 | $1,627 | |
Short-term investments | 12,096 | 14,357 | |
Securities available-for-sale | 15,750 | 11,779 | |
Loans held for sale | 2,471 | 8,063 | |
Net Portfolio loans | 264,131 | 269,834 | |
Allowance for loan losses | 2,772 | 1,996 | |
Premises and equipment, net | 7,132 | 7,039 | |
FHLB stock, at cost | 3,879 | 3,782 | |
Other assets | 6,700 | 2,615 | |
Total assets | 314,109 | 319,096 | |
Deposits | 219,404 | 221,590 | |
Advances from FHLB | 65,473 | 70,473 | |
Other liabilities | 1,990 | 1,531 | |
Shareholders' Equity | 27,241 | 25,502 | |
Book value per share (Shareholder's Equity) | $20.52 | $19.20 | |
Equity / Assets | 8.67% | 7.99% | |
Total shares outstanding | 1,356,200 | 1,364,188 | |
Asset Quality Data: | |||
Non-accruing loans | $4,167 | $3,310 | |
Other real estate/assets owned | 365 | 279 | |
Total non-performing assets | 4,532 | 3,589 | |
Non-performing loans / Total loans | 1.56% | 1.19% | |
Non-performing assets / Total assets | 1.44% | 1.12% | |
Allowance for loan losses / Non-performing loans | 66.52% | 60.30% | |
Allowance for loan losses / Total gross loans | 1.04% | 0.72% | |
Loans charged off | $79 | $146 | |
Recoveries on loans previously charged off | 4 | 10 |
Three months ended: | Nine months ended: | |||
Selected operating data: | September 30, | September 30, | ||
2003 | 2002 | 2003 | 2002 | |
Total Interest Income | $4,841 | $5,095 | $14,441 | $14,981 |
Total Interest Expense | 2,073 | 2,462 | 6,517 | 7,510 |
Net Interest Income | 2,768 | 2,633 | 7,924 | 7,471 |
Provision for Loan Losses | 150 | 225 | 850 | 375 |
Net Interest Income after provision | 2,618 | 2,408 | 7,074 | 7,096 |
Non-interest income: | ||||
Deposit Account Service Charges | 185 | 193 | 624 | 542 |
Gain on Sale of Mortgage Loans | 614 | 103 | 1,694 | 530 |
Gain on Sale of Securities | 0 | 0 | 0 | 0 |
Other Non-interest Income | 128 | 100 | 245 | 417 |
Total Non-Interest Income | 927 | 396 | 2,563 | 1,489 |
Non-Interest Expense: | ||||
Salaries and benefits | 1,163 | 969 | 3,355 | 2,988 |
Occupancy and equipment, net | 276 | 268 | 836 | 791 |
Computer service | 89 | 86 | 256 | 246 |
Advertising | 88 | 103 | 332 | 302 |
Other | 363 | 287 | 969 | 928 |
Total non-interest expense | 1,979 | 1,713 | 5,748 | 5,255 |
Income before income taxes | 1,566 | 1,091 | 3,889 | 3,330 |
Income tax expense | 620 | 442 | 1,533 | 1,256 |
Net income | 946 | 649 | 2,356 | 2,074 |
Weighted average number of diluted shares | 1,382,632 | 1,384,120 | 1,375,801 | 1,379,575 |
Diluted Earnings per Share | $0.68 | $0.47 | $1.71 | $1.50 |
Return on average equity | 13.95% | 10.35% | 11.88% | 11.32% |
Return on average assets | 1.20% | 0.84% | 1.00% | 0.93% |
Average earning assets | 301,144 | 294,995 | 300,649 | 285,134 |
Net interest margin | 3.68% | 3.57% | 3.51% | 3.49% |
Efficiency ratio | 55.81% | 61.07% | 59.66% | 61.20% |