101 Main St.
P.O. Box 1628
Lafayette, IN 47902
(765) 742-1064
www.LSBANK.com
lsbmail@LSBANK.com |  |
FOR IMMEDIATE RELEASE
April 27, 2004 |
FOR FURTHER INFORMATION CONTACT:
Randolph F. Williams
President/CEO
(765) 742-1064
Fax: (765) 429-5932 |
LSB Financial Corp. Announces First Quarter Results
and Payment of a Cash Dividend
LSB Financial Corp. (NASDAQ:LSBI), the parent company of Lafayette Savings Bank, FSB, today reported earnings for the quarter ended March 31, 2004. Net income decreased slightly for the first quarter of 2004 to $720,000, resulting in diluted earnings per share of $0.52. Assets, loans and deposits all hit record levels, with assets at $332 million, net loans at $287 million and deposits at $237 million.
LSB President and CEO Randolph F. Williams stated, "The first quarter of 2004 was an important test of our ability to grow loans as rates on mortgages have trended upwards, slowing substantially the volume of loan refinance activity. The sale of $35 million in loans on the secondary market in the first three months of 2003 generated $565,000 in gains for the bank compared to $128,000 in the first three months of 2004. Now as rates begin to increase, our customers have become more interested in adjustable rate loan products, which we keep in our portfolio. Our loan portfolio increased $9.2 million in the first quarter of 2004." Net income for the first quarter of 2004 compared to the same period in 2003 benefited from a $125,000 reduction in the provision for loan losses based on a systematic analysis of risk factors in the loan portfolio and a $198,000 increase in service charges and other non-interest income. The increase in other non-interest income was primarily the result of a $179,000 increase in mortgage loan servicing fees caused by a $151,000 decrease in the amortization and write down of mortgage servicing rights and a $28,000 increase in servicing fees on our loan servicing portfolio.
NEX PAGE Total non-performing assets increased $1.1 million from December 31, 2003 to March 31, 2004, including a $1.7 million increase in loans past due 90 days and still accruing. In the past these loans would have been classified as non-accruing loans; however, management has determined that these loans are well collateralized and in the process of collection, and therefore have classified them as 90 days past due and still accruing.
"We believe that Lafayette Savings Bank's 135 year history of providing financial services to Greater Lafayette and its residents has given us a unique understanding of our community. We hope this knowledge of the community will help us respond proactively to the changing rate and economic environment," states Williams.
Further, the Company announced today that it will pay a quarterly cash dividend of $0.145 per share to shareholders of record as of the close of business on May 7, 2004, with a payment date of June 4, 2004.
The closing market price of LSB stock on April 27, 2004, was $25.50 per share as reported by the NASDAQ National Market.
NEXT PAGE| LSB FINANCIAL CORP. |
| SELECTED CONSOLIDATED FINANCIAL INFORMATION |
| (Dollars in thousands except share and per share amounts) |
| | |
| Three Months Ended | Year Ended |
| March 31, | December 31, |
| Selected Balance Sheet Data: | 2004 | 2003 |
| | |
| Cash and due from banks | $1,804 | $1,906 |
| Short-term investments | 12,463 | 7,491 |
| Securities available-for-sale | 12,748 | 14,050 |
| Loans held for sale | 1,024 | 803 |
| Net Portfolio loans | 285,913 | 276,763 |
| Allowance for loan losses | 2,653 | 3,098 |
| Premises and equipment, net | 7,013 | 7,110 |
| FHLB stock, at cost | 3,977 | 3,928 |
| Bank owned life insurance | 2,887 | 2,861 |
| Other assets | 4,336 | 4,360 |
| Total assets | 332,165 | 319,272 |
| | |
| Deposits | 237,264 | 225,485 |
| Advances from FHLB | 64,851 | 64,851 |
| Other liabilities | 1,693 | 1,209 |
| | |
| Shareholders' Equity | 28,357 | 27,727 |
| Book value per share | $21.27 | $20.85 |
| Equity / Assets | 8.54% | 8.69% |
| Total shares outstanding | 1,356,881 | 1,356,200 |
| | |
| Asset Quality Data: | | |
| | |
| Non-accruing loans | $2,795 | $3,728 |
| Loans past due 90 days still on accrual | 2,193 | 518 |
| Other real estate/assets owned | 666 | 340 |
| Total non-performing assets | 5,654 | 4,586 |
| Non-performing loans / Total loans | 1.72% | 1.51% |
| Non-performing assets / Total assets | 1.70% | 1.44% |
| Allowance for loan losses / Non-performing loans | 53.19% | 72.96% |
| Allowance for loan losses / Non-performing assets | 46.92% | 67.55% |
| Allowance for loan losses / Total loans | 0.92% | 1.10% |
Loans charged off (quarter-to-date and year-to-date,
respectively) | $570 | $129 |
| Recoveries on loans previously charged off | 0 | 6 |
| | |
| Three months ended: |
| Selected operating data: | March 31, |
| 2004 | 2003 |
| | |
| Total Interest Income | $4,661 | $4,987 |
| Total Interest Expense | 1,993 | 2,277 |
| Net Interest Income | 2,668 | 2,710 |
| Provision for Loan Losses | 125 | 250 |
| Net Interest Income after provision | 2,543 | 2,460 |
| Non-interest income: | | |
| Deposit Account Service Charges | 211 | 222 |
| Gain on Sale of Mortgage Loans | 128 | 565 |
| Gain on Sale of Securities | 0 | 0 |
| Other Non-interest Income | 175 | (34) |
| Total Non-Interest Income | 514 | 753 |
| Non-Interest Expense: | | |
| Salaries and benefits | 1,062 | 1,085 |
| Occupancy and equipment, net | 293 | 301 |
| Computer service | 95 | 92 |
| Advertising | 78 | 121 |
| Other | 334 | 316 |
| Total non-interest expense | 1,862 | 1,915 |
| Income before income taxes | 1,195 | 1,298 |
| Income tax expense | 475 | 513 |
| Net income | $720 | $785 |
| | |
| Weighted average number of diluted shares | 1,392,839 | 1,373,074 |
| Diluted Earnings per Share | $0.52 | $0.57 |
| | |
| Return on average equity | 10.20% | 12.15% |
| Return on average assets | 0.88% | 1.00% |
| Average earning assets | $311,799 | $301,934 |
| Net interest margin | 3.42% | 3.59% |
| Efficiency ratio | 60.91% | 59.60% |
