LSB Financial Corp. Announces Year-end and Fourth Quarter Results

LAFAYETTE, Ind., March 8, 2013 /PRNewswire/ -- LSB Financial Corp. (NASDAQ: LSBI), the parent company of Lafayette Savings Bank, FSB, today reported net income for 2012 of $2.7 million or $1.70 per share, compared to net income of $539,000 or $0.35 per share for 2011.  For the fourth quarter, net income was $676,000 or $0.43 per share in 2012 compared to a loss of $600,000 or ($0.39) per share for the same period in 2011.  The increase in income in 2012 was primarily due to a $3.3 million or 61% decrease in the loan loss provision as a result of steps taken in 2011 to reduce problem loans, and a $1.4 million increase in the gain on the sale of mortgage loans offset by a $910,000 decrease in net interest income.

LSB President and CEO, Randolph F. Williams, stated, "We continued to focus on improving credit quality during the year.  A major improvement was the 51% decrease in non-performing assets from $13.8 million at December 31, 2011 to $6.7 million at December 31, 2012, which resulted in a ratio of non-performing assets to total assets of 1.85% at December 31, 2012 compared to 3.79% in 2011.  At December 31, 2012 we had $6.4 million of nonperforming loans of which $3.5 million were less than 90 days past due with $2.6 million of those less than 30 days past due.  Our allowance for loan losses was at 2.06% of total loans at December 31, 2012 compared to 1.73% in 2011.  We believe our improved credit quality positions us well to compete as the economy recovers. 

Mr. Williams continued, "The core profitability of the bank remains strong.  Our net interest margin ended the year at 3.87%, down slightly from 4.02% at the end of 2011 but still the second highest margin in the last five years.  As a community bank we generate our earnings primarily by gathering deposits and making loans so this is an important number for us. Our 91% loan-to-deposit ratio is further evidence that we consider ourselves first and foremost a community bank."

"Our balance sheet shows our success in attracting and maintaining local deposits.  Our core deposits increased by $12.4 million in 2012 while wholesale funding and FHLB advances were down $5.5 million as we allowed maturing items to roll off.  We continue to deleverage, reducing loans by $22.3 million which, along with our strong earnings, was a factor in increasing our capital ratio from 9.93% to 10.68% at the end of 2012."

In the fourth quarter the Company reinstated a $0.05 quarterly cash dividend, the equivalent of a 0.94% yield.  For the second consecutive year we are proud to have been named to the Indianapolis Business Journal's top 25 performing Indiana stocks in 2012.

The closing price of LSB stock on March 7, 2013 was $20.98 per share as reported by the Nasdaq Global Market.

 

LSB FINANCIAL CORP.

SELECTED CONSOLIDATED FINANCIAL INFORMATION

(Dollars in thousands except share and per share amounts)

 

Selected balance sheet data:

December 31, 2012

December 31, 2011




Cash and due from banks

$25,643

$18,552

Short-term investments

5,778

3,156

Interest bearing time deposits

1,740

---

Securities available-for-sale

28,004

13,845

Loans held for sale

1,363

3,120

Net portfolio loans

280,257

302,510

Allowance for loan losses

5,900

5,331

Premises and equipment, net

7,069

6,146

Federal Home Loan Bank stock, at cost

3,185

3,185

Bank-owned life insurance

6,595

6,434

Other assets

4,976

7,342

Total assets

364,610

364,290




Deposits

308,637

308,433

Federal Home Loan Bank advances

15,000

18,000

Other liabilities

2,018

1,683

Total liabilities

325,655

328,116




Shareholders' equity

38,955

36,174

Book value per share

$25.04

$23.26

Equity / assets

10.68%

9.93%

Total shares outstanding

1,555,972

1,555,222




Deposit data:



  Core deposits

167,704

155,279

  Time deposits

140,933

153,154

  Wholesale deposits (included in Time deposits)

13,690

16,244

  FHLB Advances

15,000

18,000




Asset quality data:



Non-accruing loans

$ 6,443

$12,059

Loans past due 90 days still on accrual

---

---

Other real estate / assets owned

256

1,746

Total non-performing assets

6,699

13,805

Non-performing assets / total assets

1.84%

3.79%

Allowance for loan losses / non-performing loans

91.56%

44.21%

Allowance for loan losses / non-performing assets

88.06%

38.62%

Allowance for loan losses / total loans

2.06%

1.73%

Loans charged off

$1,710

$5,440

Recoveries on loans previously charged off

179

67

 


Three months ended December 31,

Year ended December 31,

Selected operating data:

2012

2011

2012

2011

Total interest income

$3,675

$4,362

$15,720

$17,594

Total interest expense

695

991

3,225

4,189

 Net interest income

2,980

3,371

12,495

13,405

Provision for loan losses

500

2,625

2,100

5,361

  Net interest income after provision

2,480

746

10,395

8,044

Non-interest income:





Deposit account service charges

353

405

1,338

1,397

Gain on sale of mortgage loans

887

357

2,489

1,080

Gain(loss) on sale of available-for-sale securities

---

47

---

54

Gain(loss) on sale OREO

18

(261)

(97)

(700)

Other non-interest income

244

226

1,036

1,077

  Total non-interest income

1,502

774

4,766

2,908

Non-interest expense:





Salaries and benefits

1,598

1,246

6,205

5,465

Occupancy and equipment, net

305

265

1,208

1,154

Computer service

150

142

618

576

Advertising

128

94

377

304

FDIC Insurance Premium

120

120

481

556

Other

616

700

2,081

2,204

  Total non-interest expense

2,917

2,567

10,970

10,259

Income before income taxes

1,065

(1,044)

4,191

693

Income tax expense

389

(444)

1,532

154

  Net income

676

(600)

2,659

539






Weighted average number of diluted shares

1,562,365

1,556,352

1,561,495

1,555,253

Diluted earnings per share

$0.43

($0.39)

$1.70

$0.35






Return on average equity

7.38%

(6.52%)

7.32%

1.48%

Return on average assets

0.73%

(0.66%)

0.73%

0.15%

Average earning assets

$320,812

$330,144

$322,997

$333,278

Net interest margin

3.72%

4.09%

3.87%

4.02%

Efficiency ratio

73.10%

168.55%

72.32%

93.67%

 

SOURCE LSB Financial Corp.



RELATED LINKS
http://www.lsbank.com

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