LSB Financial Corp. Announces First Quarter Results

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)

 

Selected balance sheet data:

March 31,2014

(Unaudited)

December 31, 2013




Cash and due from banks

$17,286

$21,961

Interest-bearing deposits

5,533

2,237

Interest-bearing time deposits

1,247

1,743

Available-for-sale securities

62,232

62,705

Loans held for sale

1,547

657

Net portfolio loans

254,249

254,703

Allowance for loan losses

6,394

6,348

Premises and equipment, net

8,179

7,933

Federal Home Loan Bank stock, at cost

3,185

3,185

Bank-owned life insurance

6,781

6,745

Other assets

5,841

5,712

Total assets

366,080

367,581




Deposits

312,219

314,620

Advances from Federal Home Loan Bank

10,000

10,000

Other liabilities

2,578

2,234

Total liabilities

324,797

326,854




Shareholders' equity

41,283

40,727

Book value per share

$26.35

$26.03

Equity / assets

11.28%

11.08%

Total shares outstanding

1,566,904

1,564,838




Asset quality data:



Total non-accruing loans

$2,389

$2,572

Non-accruing loans 90 or more days past due

1,188

1,384

Non-accruing loans less than 90 days past due

1,201

1,188

Other real estate / assets owned

157

18

Total non-performing assets

2,546

2,590

Non-performing loans / total loans

0.93%

1.01%

Non-performing assets / total assets

0.70%

0.70%

Allowance for loan losses / non-performing loans

267.64%

246.81%

Allowance for loan losses / non-performing assets

251.14%

245.13%

Allowance for loan losses / net loans receivable

2.45%

2.43%

Loans charged off

$96

$321

Recoveries on loans previously charged off

142

84


Three months ended March 31,

Selected operating data:

2014

2013


(Unaudited)

Total interest income

$3,244

$3,642

Total interest expense

495

647

 Net interest income

2,749

2,995

Provision for loan losses

---

400

 Net interest income after provision for loan losses

2,749

2,595

Non-interest income:



Deposit account service charges

264

272

Gain on sale of mortgage loans

189

430

Net gain (loss) on sale of real estate owned

3

(2)

Debit card fees

142

141

Brokerage fees

36

133

Other non-interest income

156

418

 Total non-interest income

790

1,118

Non-interest expense:



Salaries and benefits

1,496

1,527

Occupancy and equipment, net

405

319

Computer service

154

142

Advertising

80

115

FDIC insurance premiums

115

116

ATM

76

73

Professional fees

137

119

Other

275

264

 Total non-interest expense

2,738

2,675

Income before income taxes

801

1,038

Income tax expense

281

385

 Net income

520

653

Other comprehensive income (loss)

119

11

Comprehensive income

639

664




Weighted average number of diluted shares

1,574,255

1,563,664

Diluted earnings per share

$0.33

$0.42




Return on average equity

5.07%

6.65%

Return on average assets

0.57

0.72

Average earning assets

$341,082

$342,613

Net interest margin

3.22%

3.50%

Efficiency ratio

77.37

72.04







 

www.LSBANK.com

SOURCE LSB Financial Corp.



RELATED LINKS
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