101 Main St. P.O. Box 1628 Lafayette, IN 47902 (765) 742-1064 www.LSBANK.com lsbmail@LSBANK.com | ![]() |
FOR IMMEDIATE RELEASE | FOR FURTHER INFORMATION CONTACT: Randolph F. Williams President/CEO (765) 742-1064 Fax: (765) 429-5932 |
Lafayette, Ind. - Wednesday, July 28, 2004
LSB Financial Corp. Announces Second Quarter Results
and Increased Cash Dividend
LSB Financial Corp. (NASDAQ:LSBI), the parent company of Lafayette Savings Bank, FSB, today reported earnings for the quarter and six months ended June 30, 2004. Net income for the second quarter was $754,000, an increase of $129,000 or 20.6% over the same quarter of 2003. Net income for the first six months of 2004 was $1.5 million, an increase of $64,000 or 4.5% over the first six months of 2003. Diluted earnings per share for the first six months of 2004 were $1.06 compared to $1.02 for 2003. LSB President and CEO Randolph F. Williams stated, "Our success in 2004 will depend largely on our ability to continue to grow the loan portfolio. As a community bank, we work hard to understand both families and businesses to make sure we offer the best loan product. And because of our community bank orientation we can also offer these solutions in a highly responsive, personalized manner."
"Rising interest rates have eliminated the opportunity for many borrowers, including ourselves, to benefit from the refinancing of their mortgages and thus have eliminated our ability to sell loans. We are pleased that since December 31, 2003, we have increased our loan portfolio by $27 million or 9.7%, which resulted in a $245,000 or 10.0% increase in net interest income in the second quarter. Also, because of the diligent efforts of our lending staff and the gradual improvement in the local economy, we have been able to reduce our provision for loan losses."
"We believe that the stability provided by our 135 year history as Lafayette Savings Bank offers customers a tangible value as merger and acquisition activity nation wide results in confusion and disruption for account holders. The reliable, consistent service we offer as an independent community bank helps explain the growth we are experiencing."
The increased income for the six months was primarily due to a $203,000 increase in net interest income and a $450,000 reduction in the provision for loan losses which more than offset a $470,000 decrease in non-interest income. This decrease was caused primarily by rising interest rates which significantly reduced the number of loans being refinanced to fixed rate loans which we typically sell on the secondary market at a gain, and a five percent increase in non-interest expenses.
Further, the Company announced today that it will pay an increased quarterly cash dividend of $0.15 per share to shareholders of record as of the close of business on August 6, 2004, with a payment date of September 3, 2004. This represents a 20% increase in the dividend compared to the same quarter last year.
The closing market price of LSB stock on July 27, 2004, was $24.46 per share as reported by the NASDAQ National Market.
LSB FINANCIAL CORP. SELECTED CONSOLIDATED FINANCIAL INFORMATION (In thousands except share and per share amounts) | |||
Six Months Ended June 30, 2004 | Year Ended December 31, 2003 | ||
Selected Balance Sheet Data: | |||
Cash and due from banks | $1,804 | $1,906 | |
Short-term investments | 7,051 | 7,491 | |
Securities available-for-sale | 11,114 | 14,050 | |
Loans held for sale | 1,332 | 803 | |
Net portfolio loans | 303,241 | 276,763 | |
Allowance for loan losses | 2,718 | 3,098 | |
Premises and equipment, net | 6,874 | 7,110 | |
FHLB stock, at cost | 4,022 | 3,928 | |
Bank owned life insurance | 2,912 | 2,861 | |
Other assets | 4,363 | 4,360 | |
Total assets | 342,713 | 319,272 | |
Deposits | 242,208 | 225,485 | |
Advances from FHLB | 70,351 | 64,851 | |
Other liabilities | 1,250 | 1,209 | |
Shareholders' Equity | 28,904 | 27,727 | |
Book value per share | $21.54 | $20.85 | |
Equity / Assets | 8.43% | 8.69% | |
Total shares outstanding | 1,363,176 | 1,356,200 | |
Asset Quality Data: | |||
Non-accruing loans | $4,055 | $3,728 | |
Loans past due 90 days still on accrual | 974 | 518 | |
Other real estate/assets owned | 558 | 340 | |
Total non-performing assets | 5,587 | 4,586 | |
Non-performing loans / Total loans | 1.64% | 1.51% | |
Non-performing assets / Total assets | 1.63% | 1.44% | |
Allowance for loan losses / Non-performing loans | 54.05% | 72.96% | |
Allowance for loan losses / Non-performing assets | 48.65% | 67.55% | |
Allowance for loan losses / Total loans | 0.88% | 1.10% | |
Loans charged off year-to-date | $641 | $129 | |
Recoveries on loans previously charged off | 11 | 6 |
Three months ended: June 30, | Six months ended: June 30, | |||
2004 | 2003 | 2004 | 2003 | |
Total Interest Income | $ 4,760 | $ 4,612 | $ 9,421 | $ 9,600 |
Total Interest Expense | 2,069 | 2,166 | 4,062 | 4,444 |
Net Interest Income | 2,691 | 2,446 | 5,359 | 5,156 |
Provision for Loan Losses | 125 | 450 | 250 | 700 |
Net Interest Income after provision | 2,566 | 1,996 | 5,109 | 4,456 |
Non-interest income: | ||||
Deposit Account Service Charges | 223 | 217 | 435 | 439 |
Gain on Sale of Mortgage Loans | 139 | 515 | 266 | 1,080 |
Gain on Sale of Securities | 11 | 0 | 11 | 0 |
Other Non-interest Income | 229 | 100 | 404 | 67 |
Total Non-Interest Income | 602 | 832 | 1,116 | 1,586 |
Non-Interest Expense: | ||||
Salaries and benefits | 1,081 | 1,107 | 2,142 | 2,192 |
Occupancy and equipment, net | 338 | 259 | 631 | 560 |
Computer service | 94 | 75 | 190 | 167 |
Advertising | 104 | 72 | 182 | 194 |
Other | 440 | 290 | 774 | 606 |
Total non-interest expense | 2,057 | 1,803 | 3,919 | 3,719 |
Income before income taxes | 1,111 | 1,025 | 2,306 | 2,323 |
Income tax expense | 357 | 400 | 832 | 913 |
Net income | 754 | 625 | 1,474 | 1,410 |
Weighted average number of diluted shares | 1,393,504 | 1,386,845 | 1,391,236 | 1,372,158 |
Diluted Earnings per Share | $ 0.54 | $ 0.45 | $ 1.06 | $ 1.02 |
Return on average equity | 10.44% | 9.47% | 10.32% | 10.80% |
Return on average assets | 0.88% | 0.80% | 0.88% | 0.90% |
Average earning assets | 326,788 | 298,830 | 319,294 | 300,402 |
Net interest margin | 3.29% | 3.27% | 3.36% | 3.43% |
Efficiency ratio | 64.93% | 64.42% | 62.96% | 61.88% |