NEWS RELEASE FOR IMMEDIATE RELEASE Contact: John W. Corey October 24, 1996 President (317) 742-1064 LSB Financial Corp. Announces Third Quarter Results, Payment of Cash Dividend and Intention to Repurchase 5% of Outstanding Stock - ---------------------------------------------------------------------------- LSB Financial Corp. (NASDAQ:LSBI), the parent company of Lafayette Savings Bank, FSB, today reported for the quarter and nine month periods ending September 30, 1996. Net income for the third quarter of 1996 was $345,000, compared to $335,000 for the comparable period in 1995. Earnings per share for the third quarter of 1996 were $0.41 compared to $0.35 for the comparable period in 1995, an increase of 17.14%. Net income for the nine month period was $532,000, as compared to $947,000 for the first nine months of 1995. The nine month comparison is skewed by an unusual $800,000 provision for loan losses taken in the second quarter of 1996, and by the receipt of a $165,000 non-recurring state tax refund during this period in 1995. Net interest income, a cleaner comparative measure of the Company's progress, increased $182,000 or 14.75% during the third quarter of 1996 compared to the same period in 1995. Net interest income for the first nine months of 1996 increased $725,000 or 20.79% over the first nine months of 1995. Net income per share was $0.60 for the nine month period ending June 30, 1996. Further, the Company announced today that it will pay a quarterly cash dividend of $0.08 per share to shareholders of record as of November 11, 1996, with a payment date of December 2, 1996. In addition, the Company announced its intention to begin to repurchase 5% of its outstanding stock in the open market. LSB's total assets grew $18.9 million, from $159.0 at December 31, 1995 to $177.8 million at September 30, 1996 driven largely by an $23.6 million increase in net loans over the same period. Since the Bank, unlike most savings associations, is insured by the Bank Insurance Fund (BIF) of the FDIC, it will not be subject to the one-time assessment recently levied on members of the Savings Association Insurance Fund (SAIF). LSB President and CEO John W. Corey stated, "We are pleased with the continued growth in earnings per share. This growth together with the announced cash dividend and pending stock repurchase are parts of our continuing efforts to maximize long-term shareholder value." The closing market price of LSB stock on October 23, 1996, was $17.25 per share as reported by the NASDAQ stock market. LSB FINANCIAL CORP. (Dollars in thousands, except per share data) SELECTED FINANCIAL CONDITION DATA December 31, September 30, Dollars in thousands 1995 1996 ------------ ------------- Total Assets $158,973 $177,840 Loans Receivable, net 132,433 156,080 Available-for-Sale Securities 12,295 7,226 Short-term Investments 3,595 2,309 Deposits 109,977 116,305 Total Borrowings 29,614 44,228 Shareholders' Equity (net) 18,068 16,716 SELECTED OPERATIONS DATA Three months ended Nine months ended September 30, September 30, ------------------- ------------------- 1995 1996 1995 1996 -------- ------- -------- ------- Total Interest Income $2,810 $3,360 $7,724 $9,702 Total Interest Expense 1,576 1,944 4,237 5,491 ------ ------ ------ ------ Net Interest Income 1,234 1,416 3,487 4,211 Provision for Loan Losses 0 0 0 800 ------ ------ ------ ------ Net Interest Income after provision 1,234 1,416 3,487 3,411 Deposit Account Service Charges 62 79 168 243 Gain(loss) on Sale of Securities 0 0 0 9 Net Gain(loss) on Mortgage Loans Originated for Sale 33 46 44 83 Other Non-interest Income 41 47 272 134 ------ ------ ------ ------ Total Non-Interest Income 136 172 484 469 Total Non-Interest Expense 850 1,034 2,497 3,040 ------ ------ ------ ------ Income before Income Taxes 520 554 1,474 840 Income Tax Expense 185 209 527 308 ------ ------ ------ ------ Net Income $ 335 $ 345 $ 947 $ 532 ====== ====== ====== ====== Earnings per Share $ 0.35 $ 0.41 $ 1.00 $ 0.60 ====== ====== ====== ====== Book value per share $19.07 $19.66 $19.07 $19.66 ====== ====== ====== ======