101 Main St. P.O. Box 1628 Lafayette, IN 47902 (765) 742-1064 www.lafayettesavingsbank.com lsbmail@lsbank.com | ![]() |
FOR IMMEDIATE RELEASE February 11, 2004 | For further information contact: Randolph F. Williams President/CEO (765) 742-1064 |
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, 2003. LSB President and CEO Randolph F. Williams states, "We are pleased with our results in 2003. Net income was $2.9 million, up $234,000 over 2002, primarily as a result of an $826,000 increase in the gain on the sale of mortgage loans and a $373,000 increase in net interest income. Basic earnings per share for 2003 increased 9.85% to $2.23 compared to $2.03 for 2002."
Mr. Williams further states, "We look forward to the opportunities presented as we begin our 135th year of business as Lafayette Savings Bank. We believe our familiarity with this community provides us with a good understanding of our customer's banking needs. We offer a level of approachability not always available at regional and national banks and can design and provide products tailored to meet our customer's needs. Serving local customers with local directors, management and staff has proved a successful way to enhance long-term shareholder value."
In addition to more than doubling last year's record loan sales and increasing the gain on the sale of loans from $984,000 to $1.8 million, net interest income increased by $373,000 from continuing operations. Management's ongoing analysis of asset quality continued to reveal concerns, consistent with the recent economic downturn, in response to which the company increased the allowance for loan losses to $3.1 million, an increase of $1.1 million over the balance at December 31, 2002, or 1.12% of total loans, compared to .71% at year end 2002.
Net income for the quarter ended December 31, 2003 was $593,000 compared to $642,000 for the same period in 2002. The gradual rise in interest rates resulted in a decrease in the number of borrowers refinancing their mortgages to fixed rate products, resulting in a $338,000 decrease in the gain on the sale of mortgages, largely offset by an increase in the value of mortgage servicing rights reflecting the increase in the expected life of loans being serviced. A $4.3 million increase in other assets was caused primarily by a $2.5 million investment in Bank Owned Life Insurance.
The closing price of LSB stock on February 10, 2004, was $25.99 per share as reported by the Nasdaq National Market.
Lafayette Savings Bank, a locally owned and operated $319 million financial institution, is headquartered in downtown Lafayette at 101 Main St., next to James F. Riehle Plaza. It also operates branches on Lafayette's east side at 1501 Sagamore Pkwy. North and 3510 State Road 38 East; on the south side of Lafayette at 833 Twyckenham Blvd.; and in West Lafayette at 1020A Sagamore Park Centre. Visit our web site at www.lafayettesavingsbank.com.
LSB FINANCIAL CORP. | ||||
SELECTED CONSOLIDATED FINANCIAL INFORMATION | ||||
(Dollars in thousands except share and per share amounts) | ||||
Year Ended | Year Ended | |||
December 31, | December 31, | |||
Selected Balance Sheet Data: | 2003 | 2002 | ||
Cash and due from banks | $1,906 | $1,627 | ||
Short-term investments | 7,491 | 14,357 | ||
Securities available-for-sale | 14,050 | 11,779 | ||
Loans held for sale | 803 | 8,063 | ||
Net Portfolio loans | 276,763 | 269,834 | ||
Allowance for loan losses | 3,098 | 1,996 | ||
Premises and equipment, net | 7,110 | 7,039 | ||
FHLB stock, at cost | 3,928 | 3,782 | ||
Other assets | 7,221 | 2,615 | ||
Total assets | 319,272 | 319,096 | ||
Deposits | 225,485 | 221,590 | ||
Advances from FHLB | 64,851 | 70,473 | ||
Other liabilities | 1,209 | 1,531 | ||
Shareholders' Equity | 27,727 | 25,502 | ||
Book value per share | $20.85 | $19.20 | ||
Equity / Assets | 8.68% | 7.99% | ||
Total shares outstanding | 1,356,200 | 1,364,188 | ||
Asset Quality Data: | ||||
Non-accruing loans | $3,728 | $3,310 | ||
Other real estate/assets owned | 340 | 279 | ||
Total non-performing assets | 4,068 | 3,589 | ||
Non-performing loans / Total loans | 1.45% | 1.28% | ||
Non-performing assets / Total assets | 1.27% | 1.12% | ||
Allowance for loan losses / Non-performing assets | 76.16% | 55.61% | ||
Allowance for loan losses / Total gross loans | 1.10% | 0.71% | ||
Loans charged off | $129 | $146 | ||
Recoveries on loans previously charged off | 6 | 10 |
Three months ended: | Year Ended | |||
Selected operating data: | December 31, | December 31, | December 31, | |
2003 | 2002 | 2003 | 2002 | |
Total Interest Income | $4,629 | $5,118 | $19,070 | $20,098 |
Total Interest Expense | 2,012 | 2,420 | 8,529 | 9,930 |
Net Interest Income | 2,617 | 2,698 | 10,541 | 10,168 |
Provision for Loan Losses | 375 | 325 | 1,225 | 700 |
Net Interest Income after provision | 2,242 | 2,373 | 9,316 | 9,468 |
Non-interest income: | ||||
Deposit Account Service Charges | 196 | 187 | 820 | 707 |
Gain on Sale of Mortgage Loans | 116 | 454 | 1,810 | 984 |
Gain on Sale of Securities | 0 | 0 | 0 | 0 |
Other Non-interest Income | 431 | 6 | 677 | 445 |
Total Non-Interest Income | 743 | 647 | 3,307 | 2,136 |
Non-Interest Expense: | ||||
Salaries and benefits | 1,021 | 1,038 | 4,376 | 4,026 |
Occupancy and equipment, net | 248 | 285 | 1,084 | 1,076 |
Computer service | 111 | 89 | 367 | 336 |
Advertising | 142 | 28 | 487 | 330 |
Other | 471 | 502 | 1,428 | 1,429 |
Total non-interest expense | 1,993 | 1,942 | 7,742 | 7,197 |
Income before income taxes | 992 | 1,078 | 4,881 | 4,407 |
Income tax expense | 399 | 436 | 1,932 | 1,692 |
Net income | $593 | $642 | $2,949 | $2,715 |
Weighted average number of diluted shares | 1,389,570 | 1,380,987 | 1,379,588 | 1,379,019 |
Diluted Earnings per Share | $0.43 | $0.46 | $2.14 | $1.97 |
Return on average equity | 8.99% | 10.05% | 11.03% | 10.99% |
Return on average assets | 0.75% | 0.81% | 0.94% | 0.90% |
Average earning assets | $301,855 | $305,039 | $300,952 | $290,110 |
Net interest margin | 3.47% | 3.54% | 3.50% | 3.50% |
Efficiency ratio | 66.77% | 64.30% | 61.34% | 62.02% |