SECURITIES AND EXCHANGE COMMISSION

                     Washington, D.C.  20549



                             FORM 8-K



                          CURRENT REPORT



             Pursuant to Section 13 or 15(d) of the
                 Securities Exchange Act of 1934



         Date of Report (Date of earliest event reported)
                         January 3, 2000




                      LSB FINANCIAL CORP.
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      (Exact name of Registrant as specified in its charter)



    Indiana                 0 - 25070                35-1934975
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 (State or other       (Commission File No.)       (IRS Employer
 jurisdiction of                                  Identification
 incorporation)                                         No.)



 101 Main Street, Lafayette, Indiana                    47902
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  (Address of principal executive offices)           (Zip Code)



Registrant's telephone number, including area code (765) 742-1064
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                              N/A
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  (Former name or former address, if changed since last report)







Item 5.  Other Events
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     Attached as Exhibit 99 is the Registrant's press release dated January
3, 2000 announcing that its subsidiary, Lafayette Savings Bank FSB has
received $1.4 million from Bennett Funding Corp. of Syracuse, NY, pursuant
to a settlement agreement entered into with the trustee in bankruptcy.


Item 7.  Financial Statements, Pro Forma Financial Information
         and Exhibits
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    (c)   Exhibits:

          The  exhibit  referred  to in Item 5 of this  Report and listed on the
     accompanying  Exhibit  Index  is  filed  as  part  of  this  Report  and is
     incorporated herein by reference.



                            SIGNATURES


     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.


                                   LSB FINANCIAL CORP.



Date: January 3, 2000         By:  /s/Mary Jo David
      -----------------            -----------------------------------
                                   Mary Jo David
                                   Vice President and Chief Financial
                                    Officer, Secretary and Treasurer





                                 Exhibit Index

Exhibit
Number                 Description
- -------                -----------------------------------------------

  99                   Press Release dated January 3, 2000