LSB FINANCIAL CORP. 
By LAFAYETTE, Ind., May 12, 2014 /PRNewswire/ -- LSB Financial Corp. (NASDAQ: LSBI), the parent company of Lafayette Savings Bank, FSB, today reported first quarter earnings of $520,000 or $0.33 diluted earnings per share compared to $653,000 or $0.42 diluted earnings per share a year earlier. The major contributors to the Bank's performance were a decrease in net interest income of $246,000 or 8.2% compared to the same period in 2013, primarily because of lower loan rates and slower loan growth for the three months, and a $241,000 decrease in the gain on the sale of mortgage loans over the first three months of last year as higher long-term interest rates slowed mortgage refinance activity. These contributors were offset by a $400,000 decrease in the provision for loan losses.
Randolph F. Williams, President and CEO stated, "We continue to make progress with our asset quality which compares favorably with peer data. At March 31, 2014, non-performing assets were well under 1.0% of total assets, totaling $2.5 million or 0.70% of total assets, compared to $2.6 million or 0.70%, at the end of 2013 and a twelve-year low. We have had a decrease in non-performing assets in each of the past 12 quarters. With an allowance for loan losses totaling $6.4 million and only $2.4 million in non-performing loans we believe we are well reserved against asset deterioration."
Williams continued, "Despite the terrible weather we experienced in the first quarter we were able to hold our own on the lending side of the bank. Residential mortgage applications were slow in the first quarter however, the majority of residential loans closed in the first quarter were for home purchases rather than refinances. Tippecanoe County has been named by the Indiana University Kelley School of Business as Indiana's fifth fastest growing county and we see signs of why that is true".
The Bank continues to maintain a strong capital base with a total capital-to-asset ratio at March 31, 2014 of 11.28%, and a risk-based capital ratio of 17.48%, 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 May 9, 2014 was $29.40 per share as reported by the NASDAQ Global Market. This represents an increase of 43.84% over the same date last year.
LSB FINANCIAL CORP.
SELECTED CONSOLIDATED FINANCIAL INFORMATION
(Dollars in thousands except share and per share amounts)
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March 31,2014 December 31, 2013
Selected balance sheet data: (Unaudited)
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Cash and due from banks $17,286 $21,961
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Interest-bearing deposits 5,533 2,237
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Interest-bearing time deposits 1,247 1,743
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Available-for-sale securities 62,232 62,705
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Loans held for sale 1,547 657
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Net portfolio loans 254,249 254,703
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Allowance for loan losses 6,394 6,348
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Premises and equipment, net 8,179 7,933
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Federal Home Loan Bank stock, at cost 3,185 3,185
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Bank-owned life insurance 6,781 6,745
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Other assets 5,841 5,712
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Total assets 366,080 367,581
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Deposits 312,219 314,620
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Advances from Federal Home Loan Bank 10,000 10,000
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Other liabilities 2,578 2,234
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Total liabilities 324,797 326,854
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Shareholders' equity 41,283 40,727
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Book value per share $26.35 $26.03
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Equity / assets 11.28% 11.08%
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Total shares outstanding 1,566,904 1,564,838
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Asset quality data:
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Total non-accruing loans $2,389 $2,572
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Non-accruing loans 90 or more days past due 1,188 1,384
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Non-accruing loans less than 90 days past due 1,201 1,188
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Other real estate / assets owned 157 18
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Total non-performing assets 2,546 2,590
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Non-performing loans / total loans 0.93% 1.01%
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Non-performing assets / total assets 0.70% 0.70%
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Allowance for loan losses / non-performing loans 267.64% 246.81%
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Allowance for loan losses / non-performing assets 251.14% 245.13%
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Allowance for loan losses / net loans receivable 2.45% 2.43%
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Loans charged off $96 $321
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Recoveries on loans previously charged off 142 84
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Three months ended March 31,
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Selected operating data: 2014 2013
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(Unaudited)
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Total interest income $3,244 $3,642
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Total interest expense 495 647
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Net interest income 2,749 2,995
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Provision for loan losses --- 400
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Net interest income after provision for loan losses 2,749 2,595
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Non-interest income:
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Deposit account service charges 264 272
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Gain on sale of mortgage loans 189 430
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Net gain (loss) on sale of real estate owned 3 (2)
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Debit card fees 142 141
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Brokerage fees 36 133
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Other non-interest income 156 418
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Total non-interest income 790 1,118
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Non-interest expense:
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Salaries and benefits 1,496 1,527
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Occupancy and equipment, net 405 319
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Computer service 154 142
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Advertising 80 115
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FDIC insurance premiums 115 116
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ATM 76 73
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Professional fees 137 119
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Other 275 264
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Total non-interest expense 2,738 2,675
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Income before income taxes 801 1,038
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Income tax expense 281 385
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Net income 520 653
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Other comprehensive income (loss) 119 11
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Comprehensive income 639 664
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Weighted average number of diluted shares 1,574,255 1,563,664
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Diluted earnings per share $0.33 $0.42
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Return on average equity 5.07% 6.65%
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Return on average assets 0.57 0.72
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Average earning assets $341,082 $342,613
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Net interest margin 3.22% 3.50%
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Efficiency ratio 77.37 72.04
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www.LSBANK.com
SOURCE LSB Financial Corp.
