<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1997
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
EXCHANGE ACT
For the transition period from _______ to __________
Commission file number 0-25070.
LSB FINANCIAL CORP.
(Exact Name of Small Business Issuer as Specified in its Charter)
Indiana 35-1934975
(State or other jurisdiction of (I. R. S. Employer
Incorporation or organization) Identification No.)
101 Main Street, Lafayette, Indiana 47902
(Address or principal executive offices) (Zip Code)
Issuer's telephone number, including area code: (765) 742-1064
Check whether the Issuer ( 1 ) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the Issuer was required to file Such reports), and (2) has
been subject to such requirements for the past 90 days. YES [X] NO [ ]
State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date:
CLASS OUTSTANDING AT OCTOBER 31, 1997
----- -------------------------------
Common stock, par value $.01 per share 916,350
Transitional Small Business Disclosure Format: YES[ ] NO [X]
<PAGE>
LSB FINANCIAL CORP
INDEX
PART I. FINANCIAL INFORMATION ................... ... . ...... .1
Item 1. Financial Statements (Unaudited) .......................1
Consolidated Statements of Financial Condition .............................. 1
Consolidated Statements of Income... ........................ 2
Consolidated Statements of Changes in Shareholders' Equity.. ..................3
Consolidated Statements of Cash Flow ......................................... 4
Notes to (Consolidated Financial Statements................................ 5-6
Item 2 Management's Discussion of Recent Operating Results. 7-11
PART II OTHER INFORMATION..................................... 12
SIGNATURES............... ............................ 13
EXHIBIT INDEX......................................... 14
<PAGE>
PART I
Item 1 LSB FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands)
<TABLE>
<CAPTION>
December 31, September 30,
1996 1997
---------------------------------------
<S> <C> <C>
Assets
Cash and cash equivalents $9,798 $6,994
Available-for-sale securities 6,546 8,270
Loans held for sale 6,230 992
Total loans 154,701 176,239
Less: Allowance for loan losses (1,715) (1,467)
---------------------------------------
Net loans 152,986 174,772
Premises and equipment, net 4,570 4,362
FHLB stock, at cost 2,575 2,600
Accrued interest receivable 1,006 1,149
Other assets 896 1,127
---------------------------------------
Total assets $184,607 $200,266
=======================================
Liabilities and Shareholders' Equity
Liabilities
Deposits $116,949 $135,494
Advances from FHLB 50,000 46,500
Note payable 220 197
Accrued interest payable 197 178
Advances from borrowers for taxes and insurance 178 339
Accrued expenses and other liabilities 267 268
----------------------------------------
Total liabilities 167,811 182,976
Shareholders' Equity
Common stock 11 9
Additional paid-in-capital 10,143 7,818
Retained earnings 10,289 10,321
Unearned ESOP shares (653) (591)
Unamortized cost of recognition and retention plan (332) (264)
Treasury stock, at cost (2,629) 0
Net unrealized loss on available-for-sale-securities (33) (3)
-----------------------------------------
Total shareholders' equity 16,796 17,290
-----------------------------------------
Total liabilities and shareholders' equity $184,607 $200,266
=========================================
Book value per share $18.72 $20.24
</TABLE>
See accompanying notes to consolidated financial statements
<PAGE>
LSB FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30, September 30,
1996 1997 1996 1997
--------------------------------------------------------
<S> <C> <C> <C> <C>
Interest Income
Loans, including related fees $3,173 $3,702 $9,092 $10,569
Available-for-sale securities 104 170 369 497
FHLB stock 83 54 241 154
--------------------------------------------------------
Total interest income 3,360 3,926 9,702 11,220
Interest Expense
Deposits 1,339 1,540 3,966 4,395
Borrowings 605 726 1,525 2,020
--------------------------------------------------------
Total interest expense 1,944 2,266 5,491 6,415
Net interest income 1,416 1,660 4,211 4,805
Provision for loan losses 0 24 800 72
--------------------------------------------------------
Net interest income after provision for loan losses 1,416 1,636 3,411 4,733
Noninterest Income
Service charges and fees 79 120 243 308
Net gain on mortgage loans originated for sale 46 63 83 168
Gain on sale of securities 0 0 9 0
Other income 47 63 134 167
-------------------------------------------------------
Total noninterest income 172 246 469 643
Noninterest Expense
Salaries and benefits 519 603 1,533 1,788
Occupancy and equipment, net 160 194 473 573
FDIC insurance 1 4 2 11
Computer service 65 60 185 186
Advertising 62 81 167 220
Other 227 253 680 730
------------------------------------------------------
Total noninterest expense 1,034 1,195 3,040 3,508
Income before income taxes 554 687 840 1,868
Less: income taxes 209 273 308 736
------------------------------------------------------
Net income $345 $414 $532 $1,132
======================================================
Fully diluted earnings per share (Note 4) $0.35 $0.46 $0.38 $1.25
</TABLE>
See accompanying notes to consolidated financial statements
<PAGE>
LSB FINANCIAL CORP
CONSOLIDATED STATEMENTS OF CHANGES
IN SHAREHOLDERS'EQUITY
(Dollars in thousands)
<TABLE>
<CAPTION>
Unamortized
Cost of
Additional Unearned Recognition
Common Paid-In Retained ESOP and Retention
Stock Capital Earnings Shares Plan
-------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Balance at January 1996 $11 $10,063 $9,626 ($739) ($399)
Issuance of common stock for RRP 22 (22)
ESOP shares earned 40 65
RRP expense 67
Treasury stock acquired
Net income 532
Change in net unrealized loss
Cash dividends paid (140)
--------------------------------------------------------------------
Balance at September 30, 1996 $11 $10,125 $10,018 ($674) ($354)
====================================================================
Balance at January 1, 1997 $11 $10,143 $10,289 ($653) ($332)
Exercise of stock option 3
ESOP shares earned 65 62
RRP expense 68
Treasury stock acquired
Treasury stock retired (2) (3,260)
Net income 1,132
Change in unrealized loss
Cash dividends paid (233)
Stock dividends paid 867 (867)
--------------------------------------------------------------------
Balance it September 30, 1997 $9 $7,818 $10,321 ($591) ($264)
====================================================================
Unrealized
Gain/(Loss)
Treasury on AFS
Stock Securities Total
----------------------------------------
($466) ($28) $18,368
Balance at January 1996 $0
Issuance of common stock for RRP $0
ESOP shares earned $105
RRP expense $67
Treasury stock acquired (1,885) ($1,885)
Net income $532
Change in net unrealized loss (31) ($31)
Cash dividends paid ($140)
----------------------------------------
Balance at September 30, 1996 ($2,351) ($59) $16,716
========================================
Balance at January 1, 1997 ($2,629) ($33) $16,796
Exercise of stock option 3
ESOP shares earned 127
RRP expense 68
Treasury stock acquired (633) (633)
Treasury stock retired 3,262 0
Net income 1,132
Change in unrealized loss 30 30
Cash dividends paid (233)
Stock dividends paid, 0
---------------------------------------
Balance at September 30, 1997 $0 ($3) $17,290
=======================================
</TABLE>
See accompanying notes to consolidated financial statements
<PAGE>
LSB FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
<TABLE>
<CAPTION>
For the nine months ended September 30
1996 1997
--------------------------------------
<S> <C> <C>
Cash Flows from Operating Activities
Net Income $532 $1,132
Adjustments to reconcile net income to net
cash from operating activities
Depreciation and amortization 189 260
Net amortization on securities 45 26
Gain on sale of securities (9) 0
Writedown of loans held for sale 25 0
Gain on sale of loans (108) (168)
Loans originated for sale, net of sales proceeds (343) 5,406
Deferred loan fees, net 45 (50)
Provision for loan losses 800 72
Employee stock ownership plan shares earned 105 127
Change in assets and liabilities
Accurued interest receivable (93) (143)
Other assets (61) (184)
Accrued interest payable 26 (19)
Other liabilities (878) 1
---------------------------------------
Net cash from operating activities 275 6,460
Cash Flows from Investing Activities
Purchases of available-for-sale securities (2,442) (3,672)
Proceeds from paydowns and maturities of
available-for-sale securities 6,619 1,973
Sales of available-for-sale securities 804 0
Purchase of Federal Home Loan Bank stock (775) (25)
Loans made to customers net of payments received (24,066) (21,808)
Property and equipment expenditures (1,088) (52)
---------------------------------------
Net cash from investing activities (20,948) (23,584)
Cash Flows from Financing Activities
Net change in deposits 6,328 18,545
Proceeds from Federal Home Loan Bank advances 34,000 29,000
Payments on Federal Home Loan Bank advances (19,364) (32,500)
Net change in advances from borrowers
for taxes and insurance 129 161
Payments on note payable (22) (23)
Treasury Stock, Purchased (1,885) (633)
Cash dividends paid (140) (233)
Stock options exercised 0 3
---------------------------------------
Net cash from financing activities 19,046 14,320
Net change in cash and equivalents (1,627) (2,804)
Cash and equivalents at January 1 7,795 9,798
---------------------------------------
Cash and equivalents at September 30 $6,168 $6,994
=======================================
</TABLE>
See accompanying notes to consolidated financial statements
<PAGE>
LSB FINANCIAL CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1997
Note 1 - General
The financial statements were prepared in accordance with the instructions for
Form 10-QSB and, therefore, do not include all of the disclosures necessary
for a complete presentation of financial position, results of operations and
cash flows in conformity with generally accepted accounting principles. Except
for the adoption of required accounting changes, these interim financial
statements have been prepared on a basis consistent with the annual financial
statements and include, in the opinion of management, all adjustments,
consisting of only normal recurring adjustments, necessary for a fair
presentation of the results of operations and financial position for and at
the end of such interim periods.
Note 2 - Principles of Consolidation
The accompanying financial statements include the accounts of LSB Financial
Corp. (the Company), its wholly owned subsidiary Lafayette Savings Bank, FSB
(the Bank) and the Bank's wholly owned subsidiaries, LSB Service Corporation
and Lafayette Insurance and Investments, Inc. Lafayette Insurance and
Investments, Inc. was formed December 30, 1996 and began operations in May of
1997. All significant intercompany transactions have been eliminated upon
consolidation.
Note 3 - Earnings per Share
Earnings per share are based upon the weighted average number of shares
outstanding during the period, adjusted for common stock equivalents. The
stock options outstanding are considered common stock equivalents. Actual
weighted average shares outstanding are increased by the number of shares
issuable under the options, assuming full exercise, and reduced by the number
of shares that could, hypothetically, be reacquired using the proceeds from
the exercise of those options. Unearned ESOP shares are not considered to be
outstanding for the earnings per share computation. The following table
presents information about average shares outstanding, the number of shares
used to compute earnings per share and the result of the computation:
<TABLE>
<CAPTION>
Quarter ended Year-to-date
September 30 September 30
1997 1996 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
Weighted average shares outstanding 857,360 892,047 869,911 932,468
(excluding unearned ESOP shares)
Shares used to compute fully diluted
earnings per share 890,879 900,103 903,430 940,524
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Shares used to compute primary
earnings per share 881,834 895,459 891,782 935,956
Fully diluted earnings per share $0.46 $0.38 $1.25 $0.56
Primary earnings per share 0.47 0.39 1.27 0.57
</TABLE>
On June 30, 1997, a 5.00% stock dividend was paid to shareholders of
record on June 3. 1997. This dividend resulted in the issuance of 44,792
shares with a value at the record date of $868,000. All share and per share
data has been restated to reflect the effect of this dividend.
Note 4 - Accounting Changes
Effective January 1, 1997, the Company adopted Financial Accounting Standard
No. 125, "Accounting for Transfers and Servicing of Financial Assets and
Extinguishment of Liabilities." This standard revises the accounting for
transfers of financial assets, such as loans and securities, and for
distinguishing between sales and secured borrowings. It is effective for some
transactions in 1997 and others in 1998. Management does not expect the effect
on LSB's financial position and results of operations to be significant.
<PAGE>
Item 2.
MANAGEMENT'S DISCUSSION OF RECENT OPERATING RESULTS
Forward Looking Statements
Except for the historical information contained herein, the matters
discussed in this report may be deemed to be forward-looking statements that
involve risks and uncertainties. Words or phrases "will likely result", "are
expected to", "will continue", "is anticipated", "estimate", "project", or
similar expressions are intended to identify "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995.
Factors which could cause actual results to differ include, but are not
limited to, fluctuations in interest rates, changes in economic conditions in
the Company's market area, changes in policies by regulatory agencies, the
acceptance of new products, the impact of competitive products and pricing,
and the other risks detailed from time to time in the Companys's SEC reports,
including the report on Form 10-K for the year ended December 31, 1996. These
forward looking statements represent the Company's judgement as of the date of
this report. The Company disclaims, however, any intent or obligation to
update these forward-looking statements.
Financial Condition
Comparison of Financial Condition at September 30, 1997 and December 31, 1996.
Total assets increased $15.7 million during the nine months from
December 31, 1996 to September 30, 1997. A $21.8 million increase in the
Company's loan portfolio was offset by a $5.2 million decrease in the
Company's loans held for sale as the Company continued its efforts to
restructure its balance sheet by increasing the size of its higher-yielding
multi-family, land and land development, construction, commercial real estate
and commercial business loan and consumer loan portfolios. An $18.5 million
increase in deposits was used to fund loan growth and to decrease borrowings
from the Federal Home Loan Bank by $3.5 million. Non-performing loans
decreased from $2.5 million at December 31, 1996 to $2.1 million at September
30, 1997. Non-performing loans at September 30, 1997 consisted of $2.1 million
of purchased equipment leases, one single family residence and one credit card
loan. Shareholders' equity increased from $16.8 million at December 31, 1996
to $17.3 million at September 30, 1997, an increase of $494,000 which was
primarily due to $1.1 million in net income offset by the repurchase of
$633,000 of the Company's common stock which completed the Company's 5.00%
stock repurchase program, and by $233,000 in cash dividends paid to
shareholders.
Results of Operations
Comparison of Operating Results for the Nine Months and the Quarter Ended
September 30, 1996 and September 30, 1997.
General. Net income for the nine months ended September 30, 1997 was
$1.1 million,
<PAGE>
an increase of $600,000 or 112.78% over net income of $532,000 for the
nine months ended September 30, 1996. This increase was due primarily to an
$800,000 provision for loan losses recorded in 1996 to proactively address the
possibility of losses on $2.4 million in purchased equipment leases. Without
this provision, net income for the first nine months of 1996 would have been
approximately $1.0 million, and 1997's year-to-date net income of $1.1 million
would represent an increase of $112,000 or 10.98%. Net income for the third
quarter of 1997 was $414,000 compared to $345,000 for the same period in 1996,
an increase of $69,000 or 20%.
Net Interest Income. Net interest income for the nine months ended
September 30, 1997 was $4.8 million, an increase of $594,000, or 14.11%, over
the same period in 1996. Net interest income for the third quarter of 1997
increased by $244,000, or 17.23%, over the same period in 1996. These
increases were primarily attributable to the success of management's
continuing efforts to grow and restructure the Company's balance sheet by
investing funds in higher-yielding loans, particularly commercial real estate
and consumer loans, as opposed to the lower-yielding investment securities.
The Company's net interest margin (net interest income divided by average
interest-earning assets) increased from 3.53% for the nine months ended
September 30, 1996 to 3.55% for the nine months ended September 30, 1997.
Average interest-earning assets increased from $159.1 million for the nine
months of 1996 to $180.6 million for the nine months of 1997. The interest
rate spread for the nine months increased from 3.26% for 1996 to 3.37% for
1997.
Interest income on loans increased $1.5 million or 16.25% for the nine
months ended September 30, 1997 compared to the same nine months in 1996,
primarily the result of an increase of $20.5 million in average loans
outstanding as well as an increase in the average yield on loans from 8.31%
for the nine months of 1996 to 8.47% for the nine months of 1997. The increase
in loan volume was primarily due to an active residential real estate market
in 1997 due to a strong local economy, while the increase in yield was
primarily due to the ongoing success of the Company's focus on higher-yielding
loan products as discussed above. These higher-yielding portfolios increased
from $62.2 million, or 39.07% of the total loan portfolio at December 31, 1996
to $73.1 million, or 41.62% of the total loan portfolio at September 30, 1997.
Both the net interest margin and the average yield on loans in 1997 were
negatively impacted by the placement of the purchased equipment leases on
non-accrual status effective April 1, 1996. Interest income on loans increased
$529,000 for the third quarter of 1997 compared to the third quarter of 1996
due primarily to a $20.2 million increase in average loans.
Interest earned on securities, money market investments and FHLB stock
increased $41,000 for the nine months ended September 30, 1997 compared to the
same nine months in 1996. This was the result of a $997,000 increase in
average investments offset by a slight decrease in the average yield from
6.14% in 1996 to 6.05% for 1997. Interest earned on these investments for the
third quarter increased $37,000 due primarily to a $2.4 million increase in
average outstanding balance of investments, and to a lesser extent by an
increase in average yields from 6.33% to 6.39%.
Interest expense for the nine months ended September 30, 1997
increased $924,000 over the same period in 1996. This increase was primarily
due to an increase of $23.7 million in average interest-bearing liabilities,
consisting of an additional $14.2 million in the average balance of customer
deposit accounts and a $9.6 million increase in the average balance of Federal
Home Loan Bank
<PAGE>
advances drawn to fund loan demand. The average rate paid on
interest-bearing liabilities increased from 4.87% for the nine months of 1996
to 4.92% for the nine months of 1997. Interest expense increased $322,000 for
the third quarter of 1997 over the same period in 1996 primarily due to a
$23.2 million increase in average interest-bearing liabilities with no
substantive change in the average rate for the three month period.
Provision for Loan Losses. The Company establishes its provision for
loan losses based on a systematic analysis of risk factors in the loan
portfolio. The analysis includes evaluation of concentration of credit, past
loss experience, current economic conditions, the amount and composition of
the loan portfolio, estimated fair value of the underlying collateral, loan
commitments outstanding, delinquencies and industry standards. From time to
time, management also uses the services of a consultant to assist in the
evaluation of its growing commercial loan portfolio. Management's analysis
results in the allocations of allowance amounts for each loan type. Based on
this analysis, during the quarter ended June 30, 1996 the Company recorded an
$800,000 provision for loan losses primarily in response to the situation
involving the Bennett Funding Group (Bennett) of Syracuse, New York through
which the Company owned $2.4 million of equipment leases. On March 29, 1996,
the Securities and Exchange Commission filed civil and criminal complaints
against an officer of Bennett and shortly thereafter, Bennett sought Chapter
11 bankruptcy protection. The Company had been paid interest through March 31,
1996. The Company's $2.4 million investment was comprised of numerous
equipment leases. A settlement involving the restructuring of these loans was
reached during the second quarter of 1997 and resulted in a write down of
$319,000. Management continues to allocate $651,000 of the $1.2 million
allowance to the remaining leases and the restructured loan to provide for
potential losses. It is believed that this reserve allocation will be
sufficient to cover any losses. In addition, the Company recorded a $72,000
provision for loan losses during the nine months of 1997 as a result of its
analysis of the Company's current loan portfolios.
In addition to the $2.1 million of Bennett leases there were $28,000
of non-performing loans at September 30, 1997, consisting of one single family
residence and a $5,000 credit card loan. The allowance for loan losses to
total loans was 1.08% at December 31, 1996 and 0.83% at September 30, 1997.
The decline resulted primarily from the $319,000 charge off mentioned above.
Nonperforming loans totaled $2.5 million at December 31, 1996, representing
1.35% of total assets, and $2.1 million at September 30, 1997, representing
1.05% of total assets.
Non-Interest Income. Non-interest income for the nine months ended
September 30, 1997 increased by $174,000, or 37.10%, over the same period in
1996. This increase was primarily due to a $65,000 increase in service charges
and fees on deposit accounts resulting from an increased number of these
accounts, and an $85,000 increase in the gain on the sale of loans in the
secondary market. This increase in the gain on the sale of loans resulted from
an $8.1 million increase in loans sold in the nine months of 1997 compared to
the same period in 1996, and the absence of a market value adjustment at
September 30, 1997. On September 30, 1996, the Company held $1.4 million of
fixed rate mortgage loans in its held for sale portfolio. The required
adjustment to mark these loans to market, which is recorded as a component of
non-interest expense, was ($25,000). There was no comparable adjustment needed
at September 30, 1997. Non-interest income for the third quarter of 1997
increased by $74,000 over the same period in 1996, primarily due to a $41,000
increase in service charges and fees on transaction accounts and a $16,000
increase in the gain on the
<PAGE>
sale of loans in the secondary market.
Non-Interest Expense. Non-interest expense for the nine months ended
September 30, 1997 increased $468,000 over the same period in 1996. The major
components of this increase included a $255,000 increase in salaries and
employee benefits and a $100,000 increase in occupancy and equipment expense.
The increase in salaries and employee benefits, and occupancy and equipment
expenses were primarily due to the staffing and occupancy cost of the
Company's fourth branch which opened in October of 1996.
Income Tax Expense. The Company's income tax provision increased by
$428,000 for the nine months ended September 30, 1997 compared to the same
period in 1996. This was primarily due to the increase in income before income
taxes.
Liquidity. Liquidity management is both a daily and long-term function
for the Bank's senior management. The Bank adjusts its investment strategy,
within the limits established by the investment policy, based upon assessments
of expected loan demand, expected cash flows, FHLB advance opportunities,
market yields and objectives of its asset/liability management program. Base
levels of liquidity have generally been invested in interest-earning overnight
and time deposits with the FHLB of Indianapolis. Funds for which a demand is
not foreseen in the near future are invested in investment and other
securities for the purpose of yield enhancement and asset/liability
management.
The Bank is required to maintain minimum levels of liquidity as
defined by regulatory agencies. The liquidity requirement, which can vary, is
based upon a percentage of deposits and short term borrowings and is currently
5.0%. The Bank's internal policy for liquidity is approximately 8%. The
Company's liquidity ratios at December 31, 1996 and September 30, 1997 were
7.31% and 8.53%, respectively.
Capital Resources. Shareholders' equity totaled $17.3 million at
September 30, 1997 compared to $16.8 million at December 31, 1996, an increase
of $494,000 or 2.94%, primarily due to an increase in net income of $1.1
million, partially offset by the repurchase of $633,000 of Company stock and
$233,000 of cash dividends paid to shareholders.
Federal regulations require the Bank to maintain certain minimum
levels of regulatory capital. The regulations currently require tangible
capital of at least 1.5% of total assets, core capital of at least 3.0% of
total assets, and risk based capital of at least 8.0% of risk-based assets,
all as defined by regulations. At September 30, 1997 the Bank's capital ratios
were as follows:
Amount Percent of
(000) applicable assets
-------- -----------------
Tangible capital $16,142 8.07%
Requirement 3,001 1.50
------- ----
Excess $13,141 6.57%
======= =====
<PAGE>
Core capital $16,142 8.07%
Requirement 6,002 3.00
-------- -----
Excess $10,140 5.07%
======== =====
Risk-based Capital $17,201 11.48%
Requirement 11,986 8.00
-------- -----
Excess $ 5,215 3.48%
======== =====
<PAGE>
PART II - OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
The Company and the Bank, from time to time, are involved as plaintiff
or defendant in various legal actions arising in the normal course of
business. While the ultimate outcome of these proceedings cannot be predicted
with certainty, it is the opinion of management, after consultation with
counsel representing the Bank in the proceedings, that the resolution of any
prior and pending proceedings should not have a material effect on the Company
or the Bank's financial condition or results of operations.
Item 2. CHANGES IN SECURITIES
None to be reported.
Item 3. DEFAULTS UPON SENIOR SECURITIES
None to be reported.
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None to be reported.
Item 5. OTHER INFORMATION
None to be reported.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
Exhibit 27 - Financial Data Schedule
(b) Reports on Form 8-K
None to be reported.
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the
Registrant has caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
LSB FINANCIAL CORP.
(Registrant)
Date November 3, 1997 /S/JOHN W. COREY
--------------------- ------------------------------
John W. Corey, President
(Principal Executive Officer)
Date November 3, 1997 /S/MARY JO DAVID
--------------------- ------------------------------
Mary Jo David, Treasurer
(Principal Financial and
Accounting Officer)
<PAGE>
INDEX TO EXHIBITS
Exhibit
Number
- -------
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY INFORMATION EXTRACTED FROM THE QUARTERLY REPORT ON
FORM 10-QSB FOR THE QUARTER ENDED SEPTEMBER 30, 1997 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1997
<CASH> 4,467
<INT-BEARING-DEPOSITS> 2,527
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 8,270
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 176,239
<ALLOWANCE> 1,467
<TOTAL-ASSETS> 200,266
<DEPOSITS> 135,494
<SHORT-TERM> 46,500
<LIABILITIES-OTHER> 785
<LONG-TERM> 197
0
0
<COMMON> 9
<OTHER-SE> 17,281
<TOTAL-LIABILITIES-AND-EQUITY> 182,976
<INTEREST-LOAN> 10,569
<INTEREST-INVEST> 516
<INTEREST-OTHER> 135
<INTEREST-TOTAL> 11,220
<INTEREST-DEPOSIT> 4,395
<INTEREST-EXPENSE> 6,415
<INTEREST-INCOME-NET> 4,805
<LOAN-LOSSES> 72
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 3,508
<INCOME-PRETAX> 1,868
<INCOME-PRE-EXTRAORDINARY> 1,868
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,132
<EPS-PRIMARY> 0
<EPS-DILUTED> 1.25
<YIELD-ACTUAL> 3.55
<LOANS-NON> 699
<LOANS-PAST> 0
<LOANS-TROUBLED> 1,400
<LOANS-PROBLEM> 1,495
<ALLOWANCE-OPEN> 1,467
<CHARGE-OFFS> 322
<RECOVERIES> 2
<ALLOWANCE-CLOSE> 1,224
<ALLOWANCE-DOMESTIC> 1,224
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
