<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
May 28, 1996
LSB FINANCIAL CORP.
- -----------------------------------------------------------------
(Exact name of Registrant as specified in its charter)
Indiana 0 - 25070 35-1934975
- -----------------------------------------------------------------
(State or other (Commission File No.) (IRS Employer
jurisdiction of Identification
incorporation) No.)
101 Main Street, Lafayette, Indiana 47902
- -----------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (317) 742-1064
- -----------------------------------------------------------------
N/A
- -------------------------------------------------------------------
(Former name or former address, if changed since last report)
<PAGE>
<PAGE>
Item 5. Other Events
- ---------------------
On May 28, 1996, LSB Financial Corp. ("LSB") issued the
attached press release announcing its intention to record an
$800,000 provision for loan losses.
Item 7. Financial Statements, Pro Forma Financial Information
and Exhibits
- --------------------------------------------------------------
(c) Exhibits:
Page
----
Exhibit 99 - Press release dated May 28, 4
1996
<PAGE>
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
LSB FINANCIAL CORP.
Date: May 29, 1996 By: /S/MARY JO DAVID
----------------- ------------------------------
Mary Jo David
Vice President, Chief Financial
Officer and Secretary-Treasurer
<PAGE>
NEWS RELEASE
FOR IMMEDIATE RELEASE Contact: John W. Corey
May 28, 1996 President
(317) 742-1064
LSB Financial Corp. Announces Intention to Increase Loan Loss
Reserves
- -----------------------------------------------------------------
LSB Financial Corp. (NASDAQ: LSBI), the parent company of
Lafayette Savings Bank, FSB, announced its intention to record an
$800,000 provision for loan losses. The reason for the provision
is to proactively provide for potential losses related to the
Bank's $2.4 million in loans to the Bennett Funding Group, Inc.,
which are secured by small business equipment leases and office
equipment. The amount of the Bank's allowance for loan losses
allocated to the Bennett Funding Group will now total $970,000. On
March 29, 1996, the Bennett Funding Group, Inc. filed for Chapter
11 bankruptcy protection.
John W. Corey, President and Chief Executive Officer of the
Company, stated, "the investigation into the financial status of
the Bennett Funding Group, Inc. by the trustee in bankruptcy is
continuing. We have no knowledge that any of the leases we hold
are fictitious or duplicates. Nevertheless, because of the
bankruptcy, certain leases have past due payments and there is
considerable uncertainty as to when these payments will be brought
current. We are continuing to aggressively protect our interests
and want to be certain our loss reserves remain appropriate."
At March 31, 1996, the Company's net loan portfolio totaled
$140.7 million. At that date, the Company had $162.5 million in
assets and stockholders' equity of $17.3 million.
