LSB FINANCIAL CORP. 
By LAFAYETTE, Ind., Nov. 6, 2013 /PRNewswire/ -- LSB Financial Corp. (NASDAQ: LSBI), the parent company of Lafayette Savings Bank, FSB, today reported year-to-date earnings of $2.0 million or $1.29 diluted earnings per share compared to $2.0 million or $1.28 diluted earnings per share a year earlier. Earnings for the quarter were $703,000 or $0.45 diluted earnings per share compared to $879,000 or $0.56 diluted earnings per share a year earlier. The major contributors to the Bank's year-to-date performance were a $950,000 decrease in the provision for loan losses, a 59% improvement over last year; and a $296,000 or 37% increase in other income due primarily to increased fee income from the sale of other financial instruments and increases in mortgage loan servicing fees. These were offset by net interest income which decreased $841,000 or 8.8% compared to the same period in 2012 primarily because of lower loan rates and slower loan growth for the nine months and by a $394,000 decrease in the gain on the sale of mortgage loans over the first nine months of last year as higher long term interest rates slowed mortgage refinance activity.
Randolph F. Williams, president and CEO stated, "We continue to make progress with our troubled loans which now compare favorably with peer data. At September 2013, non-performing assets were under 1.0% of total assets, totaling $2.9 million or 0.82% of total assets, compared to $6.7 million or 1.84%, at the end of 2012 and an eleven year low. We have had a decrease in non-performing assets in each of the past 11 quarters. With an allowance for loan losses totaling $6.4 million and only $2.9 million in non-performing loans we believe we are well reserved against asset deterioration."
The Bank continues to maintain a strong capital base with a total capital-to-asset ratio at September 30, 2012 at 11.33%, and a risk-based capital ratio of 17.35%, both of which are well above the current definition of "well-capitalized" as defined by the bank regulators.
The closing market price of LSB stock on November 5, 2013 was $27.95 per share as reported by the NASDAQ Global Market. This represents an increase of 41.02% over the same date last year.
LSB FINANCIAL CORP.
SELECTED CONSOLIDATED FINANCIAL INFORMATION
(Dollars in thousands except share and per share amounts)
--------------------------------------------------------
September 30,
2013 December 31, 2012
Selected balance
sheet data: (Unaudited)
---------------- ----------
Cash and due from
banks $1,382 $25,643
----------------- ------ -------
Interest bearing
deposits 24,337 5,778
---------------- ------ -----
Interest-bearing
time deposits 1,743 1,740
---------------- ----- -----
Securities available-
for-sale 50,337 28,004
--------------------- ------ ------
Loans held for sale 200 1,363
------------------- --- -----
Net portfolio loans 254,453 280,257
------------------- ------- -------
Allowance for loan
losses 6,407 5,900
------------------ ----- -----
Premises and
equipment, net 7,235 7,069
--------------- ----- -----
Federal Home Loan
Bank stock, at cost 3,185 3,185
-------------------- ----- -----
Bank-owned life
insurance 6,709 6,595
--------------- ----- -----
Other assets 5,523 4,976
------------ ----- -----
Total assets 355,104 364,610
------------ ------- -------
Deposits 302,300 308,637
-------- ------- -------
Advances from Federal
Home Loan Bank 10,000 15,000
--------------------- ------ ------
Other liabilities 2,573 2,018
----------------- ----- -----
Total liabilities 314,873 325,655
----------------- ------- -------
Shareholders' equity 40,231 38,955
-------------------- ------ ------
Book value per share $25.80 $25.04
-------------------- ------ ------
Equity / assets 11.33% 10.68%
--------------- ----- -----
Total shares
outstanding 1,559,543 1,555,972
------------ --------- ---------
Asset quality data:
-------------------
Total non-accruing
loans $2,762 $6,443
------------------ ------ ------
Non-accruing loans
90 or more days past
due 1,618 2,907
--------------------- ----- -----
Non-accruing loans
less than 90 days
past due 1,144 3,536
------------------ ----- -----
Other real estate /
assets owned 162 256
------------------- --- ---
Total non-performing
assets 2,924 6,699
-------------------- ----- -----
Non-performing loans
/total loans 1.06% 2.25%
-------------------- ---- ----
Non-performing
assets /total
assets 0.82% 1.84%
-------------- ---- ----
Allowance for loan
losses /non-
performing loans 231.97% 91.57%
------------------ ------ -----
Allowance for loan
losses /non-
performing assets 219.12% 88.06%
------------------ ------ -----
Allowance for loan
losses /net loans
receivable 2.46% 2.06%
------------------ ---- ----
Loans charged off $357 $1,710
----------------- ---- ------
Recoveries on loans
previously charged
off 214 179
------------------- --- ---
Three months
ended Nine months ended
September 30, September 30,
(Unaudited)
(Unaudited)
----------
2013 2012 2013 2012
---- ---- ---- ----
Selected operating data:
------------------------
Total interest income $3,389 $3,901 $10,493 $12,045
--------------------- ------ ------ ------- -------
Total interest
expense 575 769 1,819 2,530
-------------- --- --- ----- -----
Net interest income 2,814 3,132 8,674 9,515
------------------- ----- ----- ----- -----
Provision for loan
losses 25 500 650 1,600
------------------ --- --- --- -----
Net interest income
after provision for
loan losses 2,789 2,632 8,024 7,915
-------------------- ----- ----- ----- -----
Non-interest income:
--------------------
Deposit account
service charges 320 338 892 985
---------------- --- --- --- ---
Gain on sale of
mortgage loans 250 770 1,208 1,602
--------------- --- --- ----- -----
Net (loss) on sale of
real estate owned --- 24 (2) (115)
--------------------- --- --- --- ----
Other non-interest
income 340 348 1,089 793
------------------ --- --- ----- ---
Total non-interest
income 910 1,480 3,187 3,265
------------------ --- ----- ----- -----
Non-interest expense:
---------------------
Salaries and benefits 1,407 1,591 4,485 4,607
--------------------- ----- ----- ----- -----
Occupancy and
equipment, net 328 302 968 903
--------------- --- --- --- ---
Computer service 156 167 453 468
---------------- --- --- --- ---
Advertising 93 72 306 249
----------- --- --- --- ---
Other 604 577 1,821 1,827
----- --- --- ----- -----
Total non-interest
expense 2,588 2,709 8,033 8,054
------------------ ----- ----- ----- -----
Income before income
taxes 1,111 1,403 3,178 3,126
-------------------- ----- ----- ----- -----
Income tax expense 408 524 1,158 1,142
------------------ --- --- ----- -----
Net income 703 879 2,020 1,984
---------- --- --- ----- -----
Other comprehensive
income (loss) 1 96 (578) 150
------------------- --- --- ---- ---
Comprehensive income 704 975 1,442 2,134
-------------------- --- --- ----- -----
Weighted average
number of diluted
shares 1,567,964 1,558,037 1,562,797 1,555,756
------------------ --------- --------- --------- ---------
Diluted earnings per
share $0.45 $0.56 $1.29 $1.28
-------------------- ----- ----- ----- -----
Return on average
equity 7.04% 9.27% 6.79% 7.11%
----------------- ---- ---- ---- ----
Return on average
assets 0.79% 0.98% 0.75% 0.72%
----------------- ---- ---- ---- ----
Average earning
assets $336,650 $327,464 $340,371 $324,188
--------------- -------- -------- -------- --------
Net interest margin 3.34% 3.83% 3.40% 3.91%
------------------- ---- ---- ---- ----
Efficiency ratio 69.96% 65.88% 71.65% 72.04%
---------------- ----- ----- ----- -----
SOURCE LSB Financial Corp.
