101 Main St.
P.O. Box 1628
Lafayette, IN 47902
(765) 742-1064
www.LSBANK.com
lsbmail@LSBANK.com
FOR IMMEDIATE RELEASE:
October 28, 2004 | FOR FURTHER INFORMATION
CONTACT:
Randolph F. Williams
President/CEO
(765) 742-1064
Fax: (765) 429-5932 |
LSB Financial Corp. Announces Third 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 and nine months ended September 30, 2004. Net income for the first nine months of 2004 was $2.2 million, a decrease of $155,000 or 6.6% compared to the same period of 2003 generating diluted earnings per share for the first nine months of 2004 of $1.50 compared to $1.63 for 2003. Net income for the third quarter of 2004 was $728,000, a decrease of $218,000 from the third quarter of 2003. LSB President and CEO Randolph F. Williams stated, "Low interest rates in 2003 resulted in an unprecedented number of residential mortgage loan originations and many of these loans were sold in the secondary market. In the first nine months of last year, those sales generated fee income of $1.7 million compared to this year's level of $363,000, with the third quarter of 2003 generating a record $614,000 in gains on the sale of mortgage loans compared to $104,000 in the same period in 2004. This trend was expected and drove us to focus our efforts in 2004 on increasing our earning assets. I am pleased to report that we have done just that, increasing average earning assets by nearly $32 million or 10.5% over the last twelve months."
Williams continued, "Our operating results remain strong despite declines in non-interest income and downward pressure on the margin. Net interest income is up slightly from last year, with our net interest margin being down only 18 basis points compared to last year. Also, because of the diligent efforts of our management team and the gradual improvement in the local economy, we have been able to decrease our provision for loan losses based on our analysis of risk factors in our loan portfolio."
"We believe that the stability provided by Lafayette Savings Bank's 135 year history as Lafayette Savings Bank offers customers a tangible value as merger and acquisition activity nationwide results in loss of service and confusion over products for people whose banks are involved in this activity. Assets surpassed $350 million for the first time in the 135 year history of Lafayette Savings Bank, hitting $351 at September 30, 2004. The reliable, responsive service we can offer as an independent community bank helps explain the growth we are experiencing."
Further, the Company announced today that it will pay a quarterly cash dividend of $0.15 per share to shareholders of record as of the close of business on November 5, 2004, with a payment date of December 3, 2004.
The closing market price of LSB stock on October 27, 2004, was $26.42 per share as reported by the NASDAQ National Market.
LSB FINANCIAL CORP.
SELECTED CONSOLIDATED FINANCIAL INFORMATION
(In thousands except share and per share amounts) |
| | | | |
| | | | |
| | | September 30,
2004 | December 31,
2003 |
| Selected Balance Sheet Data: | | | | |
| | | | |
| Cash and due from banks | | | $1,915 | $1,906 |
| Short-term investments | | | 8,398 | 7,491 |
| Securities available-for-sale | | | 9,318 | 14,050 |
| Loans held for sale | | | 195 | 803 |
| Net portfolio loans | | | 313,310 | 276,763 |
| Allowance for loan losses | | | 2,827 | 3,098 |
| Premises and equipment, net | | | 6,830 | 7,110 |
| FHLB stock, at cost | | | 4,066 | 3,928 |
| Bank owned life insurance | | | 2,960 | 2,861 |
| Other assets | | | 4,482 | 4,360 |
| Total assets | | | 351,474 | 319,272 |
| | | | |
| Deposits | | | 247,927 | 225,485 |
| Advances from FHLB | | | 72,351 | 64,851 |
| Other liabilities | | | 1,621 | 1,209 |
| | | | |
| Shareholders' Equity | | | 29,575 | 27,727 |
| Book value per share | | | $20.89 | $19.54 |
| Equity / Assets | | | 8.41% | 8.69% |
| Total shares outstanding | | | 1,434,695 | 1,424,010 |
| | | | |
| Asset Quality Data: | | | | |
| | | | |
| Non-accruing loans | | | $5,111 | $3,728 |
| Loans past due 90 days still on accrual | | | 601 | 518 |
| Other real estate/assets owned | | | 717 | 340 |
| Total non-performing assets | | | 6,429 | 4,586 |
| Non-performing loans / Total loans | | | 1.81% | 1.51% |
| Non-performing assets / Total assets | | | 1.83% | 1.44% |
| Allowance for loan losses / Non-performing loans | | | 49.49% | 72.96% |
| Allowance for loan losses / Non-performing assets | | | 43.97% | 67.55% |
| Allowance for loan losses / Total loans | | | 0.89% | 1.10% |
| Loans charged off year-to-date | | | $641 | $129 |
| Recoveries on loans previously charged off | | | 11 | 6 |
| | | | |
| Three months ended: | Nine months ended: |
| September 30, | September 30, |
| 2004 | 2003 | 2004 | 2003 |
| | | | |
| Total Interest Income | $ 4,877 | $ 4,841 | $ 14,298 | $ 14,441 |
| Total Interest Expense | 2,152 | 2,073 | 6,214 | 6,517 |
| Net Interest Income | 2,725 | 2,768 | 8,084 | 7,924 |
| Provision for Loan Losses | 125 | 150 | 375 | 850 |
| Net Interest Income after provision | 2,600 | 2,618 | 7,709 | 7,074 |
| Non-interest income: | | | | |
| Deposit Account Service Charges | 232 | 185 | 667 | 624 |
| Gain on Sale of Mortgage Loans | 104 | 614 | 363 | 1,694 |
| Gain on Sale of Securities | 0 | 0 | 11 | 0 |
| Other Non-interest Income | 133 | 128 | 544 | 245 |
| Total Non-Interest Income | 469 | 927 | 1,585 | 2,563 |
| Non-Interest Expense: | | | | |
| Salaries and benefits | 1,099 | 1,163 | 3,242 | 3,355 |
| Occupancy and equipment, net | 262 | 276 | 894 | 836 |
| Computer service | 91 | 89 | 280 | 256 |
| Advertising | 47 | 88 | 228 | 332 |
| Other | 402 | 363 | 1,176 | 969 |
| Total non-interest expense | 1,901 | 1,979 | 5,820 | 5,748 |
| Income before income taxes | 1,168 | 1,566 | 3,474 | 3,889 |
| Income tax expense | 440 | 620 | 1,273 | 1,533 |
| Net income | 728 | 946 | 2,201 | 2,356 |
| | | | |
| Weighted average number of diluted shares | 1,467,145 | 1,449,320 | 1,462,506 | 1,442,925 |
| Diluted Earnings per Share | $ 0.50 | $ 0.65 | $ 1.50 | $ 1.63 |
| | | | |
| Return on average equity | 9.90% | 13.95% | 10.18% | 11.88% |
| Return on average assets | 0.84% | 1.20% | 0.86% | 1.00% |
| Average earning assets | 332,681 | 301,144 | 323,756 | 300,649 |
| Net interest margin | 3.28% | 3.68% | 3.33% | 3.51% |
| Efficiency ratio | 62.62% | 55.81% | 61.94% | 59.66% |
