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 June 30, 1998
[ ] 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 JULY 17, 1998
----- ----------------------------
Common stock, par value $.01 per share 950,852
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............................................... 12-13
SIGNATURES...................................................... 14
EXHIBIT INDEX................................................... 15
<PAGE>
STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands)
December 31, June 30,
1997 1998
-------------------------
Assets
Cash and cash equivalents $ 9,938 $ 8,616
Available-for-sale securities 7,863 10,782
Loans held for sale 1,265 2,271
Total loans 178,745 188,276
Less: Allowance for loan losses (1,478) (1,532)
-------------------------
Net loans 177,267 186,744
Premises and equipment, net 4,912 4,943
FHLB stock, at cost 2,600 2,825
Accrued interest receivable and other assets 2,739 2,452
-------------------------
Total Assets $ 206,584 $ 218,633
=========================
Liabilities and Shareholders' Equity
Liabilities
Deposits $ 137,686 $ 147,456
Advances from FHLB 50,000 51,500
Note payable 189 173
Accrued interest payable and other liabilities 975 1,128
-------------------------
Total liabilities 188,850 200,257
Shareholders' Equity
Common stock 9 10
Additional paid-in-capital 7,854 9,033
Retained earnings 10,677 10,040
Unearned ESOP shares (570) (530)
Unamortized cost of recognition and retention plan (242) (197)
Accumulated other comprehensive income 6 20
-------------------------
Total shareholders' equity 17,734 18,376
-------------------------
Total liabilities and shareholders' equity $ 206,584 $ 218,633
=========================
See accompanying notes
<PAGE>
LSB FINANCIAL CORP.
STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
<TABLE>
<CAPTION>
Three months ended Six months ended
June 30, June 30,
1997 1998 1997 1998
---------------------------------------
<S> <C> <C> <C> <C>
Interest Income
Loans, including related fees $3,533 $3,931 $6,867 $7,771
Available-for-sale securities 170 202 327 419
FHLB stock 50 50 100 101
---------------------------------------
Total interest income 3,753 4,183 7,294 8,291
Interest Expense
Deposits 1,479 1,633 2,855 3,242
Borrowings 668 758 1,294 1,501
---------------------------------------
Total interest expense 2,147 2,391 4,149 4,743
Net interest income 1,606 1,792 3,145 3,548
Provision for loan losses 24 30 48 54
---------------------------------------
Net interest income after provision for loan losses 1,582 1,762 3,097 3,494
Noninterest Income
Service charges and fees 108 147 188 270
Net gain on mortgage loans originated for sale 37 154 105 239
Gain on sale of securities 0 0 0 0
Other 55 87 106 185
---------------------------------------
Total noninterest income 200 388 399 694
Noninterest Expense
Salaries and benefits 598 681 1,185 1,360
Occupancy and equipment, net 192 210 380 407
Computer service 65 63 126 125
Advertising 77 92 140 177
Other 256 302 483 577
---------------------------------------
Total noninterest expense 1,188 1,348 2,314 2,646
Income before income taxes 594 802 1,182 1,542
Less: income taxes 233 332 463 628
---------------------------------------
Net income $ 361 $ 470 $ 719 $ 914
=======================================
Earnings per share (Note 3) $ 0.39 $ 0.52 $ 0.78 $ 1.02
Diluted Earnings per Share $ 0.39 $ 0.50 $ 0.76 $ 0.98
Book value per share $18.81 $20.46 $18.81 $20.46
</TABLE>
See accompanying notes
<PAGE>
LSB FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF CHANGES
IN SHAREHOLDERS' EQUITY
(Dollars in thousands)
<TABLE>
<CAPTION>
Unamortized
Cost of Accumulated
Additional Unearned Recognition Other
Common Paid-In Retained ESOP and Retention Treasury Comprehensive
Stock Capital Earnings Shares Plan Stock Income Total
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Balance at January 1, 1997 $ 11 $ 10,143 $ 10,289 ($653) ($332) ($2,629) ($33) $ 16,796
Exercise of stock option 3 3
ESOP shares earned 41 41 82
RRP expense 45 45
Treasury stock acquired (313) (313)
Cash dividends paid (151) (151)
Stock dividends paid 868 (870) (2)
Comprehensive income
Net income 719 719
Change in unrealized gain/(loss) 5 5
--------
Total comprehensive income 724
----------------------------------------------------------------------------------------------
Balance at June 30, 1997 $ 11 $ 11,055 $ 9,987 ($612) ($287) ($2,942) ($28) $ 17,184
==============================================================================================
Balance at January 1, 1998 $ 9 $ 7,854 $ 10,677 ($570) ($242) $ 0 $ 6 $ 17,734
Exercise of stock option 1 4 5
ESOP shares earned 84 40 124
RRP expense 45 45
Treasury stock acquired and retired (268) (268)
Cash Dividends paid (184) (184)
Stock Dividends paid 1359 (1,366) (7)
Comprehensive income
Net income 914 914
Change in unrealized loss 14 14
--------
Total comprehensive income 928
----------------------------------------------------------------------------------------------
Balance at June 30, 1998 $ 10 $ 9,033 $ 10,041 ($530) ($197) $ 0 $ 20 $ 18,377
==============================================================================================
</TABLE>
See accompanying notes
<PAGE>
LSB FINANCIAL CORP.
STATEMENTS OF CASH FLOWS
(Dollars in thousands)
For the 6 months
ended June 30,
1997 1998
---------------------
Cash Flows from Operating Activities
Net Income $ 719 $ 914
Adjustments to reconcile net income to net
cash from operating activities
Depreciation and amortization 172 192
Net amortization/(accretion) on securities 23 (8)
Gain on sale of securities 0 0
Writedown of loans held for sale 0 0
Gain on sale of loans (105) (239)
Loans originated for sale, net of sales proceeds 5,273 (767)
Deferred loan fees, net (40) (52)
Provision for loan losses 48 54
Employee stock ownership plan shares earned 82 124
Change in assets and liabilities
Accrued interest receivable (91) (80)
Other assets (202) 397
Accrued interest payable (11) (7)
Other liabilities (174) 116
---------------------
Net cash from operating activities 5,694 644
Cash Flows from Investing Activities
Purchases of available-for-sale securities (3,476) (5,462)
Proceeds from paydowns and maturities of
available-for-sale securities 1,856 2,574
Sales of available-for-sale securities 0 0
Purchase of Federal Home Loan Bank stock (25) (225)
Loans made to customers net of payments received (16,652) (9,475)
Property and equipment expenditures (38) (223)
---------------------
Net cash from investing activities (18,335) (12,811)
Cash Flows from Financing Activities
Net change in deposits 13,844 9,771
Proceeds from Federal Home Loan Bank advances 21,000 6,000
Payments on Federal Home Loan Bank advances (25,500) (4,500)
Net change in advances from borrowers
for taxes and insurance (22) 44
Payments on note payable (15) (16)
Treasury Stock Purchased (313) (268)
Dividends paid (153) (191)
Stock options exercised 3 5
---------------------
Net cash from financing activities 8,844 10,845
Net change in cash and equivalents (3,797) (1,322)
Cash and equivalents at January 1 9,798 9,938
---------------------
Cash and equivalents at June 30 $ 6,001 $ 8,616
=====================
See accompanying notes
<PAGE>
LSB FINANCIAL CORP.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1998
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 computed based upon the weighted average number of shares
outstanding during the period. Diluted earnings per share further assume the
issuance of any potentially dilutive shares. Unearned ESOP shares are not
considered to be outstanding for the earnings per share computation. On June 30,
1998, a 5.00% stock dividend was paid to shareholders of record on June 8, 1998.
This dividend resulted in the issuance of 45,289 shares with a value at the
record date of $1.4 million. All share and per share data has been restated to
reflect the effect of this dividend. The following table presents information
about the number of shares used to compute earnings per share and the results of
the computations:
Quarter ended Year-to-date
June 30 June 30
1997 1998 1997 1998
---- ---- ---- ----
Weighted average shares outstanding 914,969 897,053 919,239 898,378
(excluding unearned ESOP shares)
Shares used to compute diluted
earnings per share 937,436 934,993 941,706 934,887
Earnings per share $0.39 $0.52 $0.78 $1.02
<PAGE>
Diluted earnings per share $0.39 $0.50 $0.76 $0.98
Note 4 - Accounting Changes
Effective January 1, 1997, the Company adopted a new accounting standard which
requires disclosure of comprehensive income for all periods. Comprehensive
income includes both net income and other comprehensive income. Other
comprehensive income includes the change in unrealized gains and losses on
securities available for sale, foreign currency translation adjustments, and
additional minimum pension liability adjustments.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATION
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 Company's's SEC reports, including the report
on Form 10-KSB for the year ended December 31, 1997. 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.
Impact of the Year 2000
The Company has conducted a comprehensive review of its computer systems to
identify applications that could be affected by the "Year 2000" issue, and has
developed an implementation plan to address the issue. The Company's data
processing and other critical systems are supplied by outside vendors. The
Company has already contacted each vendor to request timetables for Year 2000
compliance and expected costs, if any, to be passed along to the Company. To
date, the Company has been informed that most of its primary service providers
anticipate that all reprogramming efforts will be completed in enough time to
allow for testing. The Company plans to test the mission critical systems by
June 1999. Certain other vendors have not yet certified their system as Year
2000 compliant. The Company will pursue other options if it appears that these
vendors will be unable to comply. The Company has prepared contingency plans for
all mission critical systems. Management does not expect these costs to have a
significant impact on its financial position or results of operations, however,
there can be no assurance that the vendors' systems will be Year 2000 compliant,
consequently the Company could incur incremental costs to convert to another
vendor. The Company has identified certain of its hardware and software that
will not be Year 2000 compliant and has already purchased new equipment and
software. These capital expenditures are expected to total approximately
$170,000.
Financial Condition
Comparison of Financial Condition at June 30, 1998 and December 31, 1997.
Total assets increased $12.0 million during the six months from December
31, 1997 to June 30, 1998. This increase was primarily due to a $9.5 million
increase in the Company's loan portfolio
<PAGE>
augmented by a $1.0 million increase in the Company's loans held for sale as the
Company continued its efforts to grow and migrate its balance sheet toward the
higher-yielding multi-family and commercial real estate, land development and
consumer loan portfolios. A $9.8 million increase in deposits and a $1.5 million
increase in borrowings from the Federal Home Loan Bank were used to fund loan
growth. Non-performing loans increased from $2.1 million at December 31, 1997 to
$2.6 million at June 30, 1998. Non-performing loans at June 30, 1998 consisted
of $2.1 million of purchased equipment leases, $413,000 in single-family
residences and $131,000 in non-mortgage loans. Shareholders' equity increased
from $17.7 million at December 31, 1997 to $18.4 million at June 30, 1998, an
increase of $642,000 primarily due to $914,000 in net income partially offset by
the repurchase of an additional $268,000 of the Company's stock as part of an
ongoing 5.00% stock buy-back program and by $191,000 in cash dividends to
shareholders. Results of Operations
Comparison of Operating Results for the Six Months and the Quarter Ended June
30, 1997 and June 30, 1998.
General. Net income for the six months ended June 30, 1998 was $914,000, an
increase of $195,000 or 27.12% over net income of $719,000 for the six months
ended June 30, 1997. This increase was primarily due to a $403,000 increase in
net interest income and a $295,000 increase in non- interest income in the first
six months of 1998, offset by a $332,000 increase in operating expenses and a
$165,000 increase in the provision for income taxes. Net income for the second
quarter of 1998 was $470,000 compared to $361,000 for the same period in 1997
due primarily to a $186,000 increase in net interest income and a $188,000
increase in non-interest income, offset by a $160,000 increase in non-interest
expenses and a $99,000 increase in the provision for income taxes.
Net Interest Income. Net interest income for the six months ended June 30,
1998 increased $403,000, or 12.81%, over the same period in 1997. Net interest
income for the second quarter of 1998 similarly increased $186,000, or 11.58%,
over the same period in 1997. These increases were primarily attributable to the
success of management's continuing efforts to grow and focus on higher-yielding
multi-family and commercial real estate, land development and consumer loans.
The Company's net interest margin (net interest income divided by average
interest-earning assets) decreased from 3.58% for the six months ended June 30,
1997 to 3.51% for the six months ended June 30, 1998. The decline in yield was
offset by increased volume as average interest-earning assets increased from
$177.2 million for the first six months of 1997 to $201.9 million for the six
months of 1998. The interest rate spread for the first six months decreased from
3.37% for 1997 to 3.36% for 1998.
Interest income on loans increased $904,000 or 13.16% for the six months
ended June 30, 1998 compared to the same six months in 1997, primarily the
result of an increase of $21.2 million in average loans outstanding. This
increase was primarily due to an active residential real estate market in 1998
due to a continued low interest rate environment, a strong local economy and the
ongoing success of the Company's focus on multi-family and commercial real
estate, land development and consumer loan production. These higher-yielding
portfolios increased from $80.7 million at December 31, 1997 to $92.7 million at
June 30, 1998. The average yield on loans
<PAGE>
remained virtually constant at 8.43% for the first six months of 1997 and 8.44%
for the first six months of 1998, as the higher yield due to the type of loan
was offset by the lower rates on one-to-four family loans. Interest income on
loans increased $398,000 for the second quarter of 1998 compared to the second
quarter of 1997 due primarily to a $19.5 million increase in average loans.
Interest earned on other investments and FHLB stock increased by $93,000
for the six months ended June 30, 1998 compared to the same six months in 1997.
This was the result of an overall $3.5 million increase in the average balance
of other investments primarily due to the Company's efforts to rebuild its
liquidity portfolio with an eye toward addressing its relatively high tax
burden, offset by a decrease in the average yield from 5.98% for the first
quarter of 1997 to 5.84% over the same period in 1998. Interest earned on these
investments for the second quarter increased $32,000 due to a $1.4 million
increase in average investments augmented by an increase in average yields from
5.95% to 6.24% as some short term investments were invested in longer term
securities.
Interest expense for the six months ended June 30, 1998 increased $594,000
over the same period in 1997. This increase was primarily due to an increase of
$24.9 million in average interest-bearing liabilities, consisting of an
additional $19.7 million in the average balance of customer deposit accounts and
a $5.2 million increase in the average balance of Federal Home Loan Bank
advances drawn to fund loan demand. The average rate paid on interest-bearing
liabilities was 4.86% for the first six months of 1997 and 4.85% for the first
six months of 1998. Interest expense increased $244,000 for the second quarter
of 1998 over the same period in 1997 primarily due to a $20.4 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
multi-family and commercial real estate loan portfolio. Management's analysis
results in the allocations of allowance amounts for each loan type. During 1996
the Company recorded an $800,000 provision for loan losses primarily in response
to the situation involving Bennett Funding Group (Bennett) of Syracuse, New York
through which the Company owned $2.4 million of 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 $1.5 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. The Company recorded
a $54,000 provision for loan losses during the first six months of 1998 as a
result of its analysis of the Company's current loan portfolio. In addition to
the $2.1 million of Bennett leases there were $544,000 of non-performing or
restructured loans at June 30, 1998, consisting of four single family residences
and five non-mortgage loans. The Company's allowance equaled 0.80% and 0.84% of
total loans receivable, including loans held for sale, at June 30, 1998 and June
30, 1997
<PAGE>
respectively. Non-performing loans totaled $2.1 million at December 31, 1997 and
$2.6 million at June 30, 1998, representing representing 1.02% of total assets
1.20% of total assets respectively.
Non-Interest Income. Non-interest income for the six months ended June 30,
1998 increased by $295,000, or 73.93%, over the same period in 1997. This was
primarily due to a $134,000 increase in the gain on the sale of mortgage loans
in the secondary market resulting from the increased sales activity, an $82,000
increase in service charges and fees on deposit accounts due to the increased
number of these accounts, and a $40,000 increase in fees on various debit and
credit card products. Non-interest income for the second quarter of 1998
increased by $188,000 over the same period in 1997, primarily due to a $117,000
increase in the gain on the sale of loans in the secondary market and a $39,000
increase in service charges and fees on transaction accounts.
Non-Interest Expense. Non-interest expense for the six months ended June
30, 1998 increased $332,000 over the same period in 1997. The major components
of this increase included a $175,000 increase in salaries and employee benefits
and a $37,000 increase in advertising expense. The increases were primarily
incurred in connection with the opening of the Company's fourth branch.
Non-interest expense for the second quarter of 1998 increased by $160,000 over
the same period in 1997, primarily due to an $83,000 increase in salaries and
employee benefits, a $15,000 increase in advertising expense and an $18,000
increase in occupancy expenses as a result of the additional branch office.
Income Tax Expense. The Company's income tax provision increased by
$165,000 for the six months ended June 30, 1998 compared to the same period in
1997. This was primarily due to the increase in income before income taxes. The
Company's income tax provision for the second quarter of 1998 increased $99,000
over the same period in 1997 for the same reason.
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 4.0%. The
Bank's internal policy for liquidity is 6% to 8%. The Company's liquidity ratios
at December 31, 1997 and June 30, 1998 were 7.76% and 8.40%, respectively.
Capital Resources. Shareholders' equity totaled $18.4 million at June 30,
1998 compared to $17.7 million at December 31, 1997, an increase of $642,000 or
3.62%, due to net income of $914,000, and an $85,000 decrease in unearned ESOP
shares and unamortized cost of Bank
<PAGE>
Recognition and Retention Plan shares, offset by $184,000 of cash dividends paid
to shareholders and $268,000 used to repurchase and retire Treasury shares.
Federal regulations require the Bank to maintain certain minimum levels of
regulatory capital. The regulations currently require tangible capital as
defined by regulation to be at least 1.5% of total assets, as also defined by
regulation, that core capital as defined be 4.0% of total assets, and that risk
based capital be at least 8.0% of risk-based assets as defined by regulations.
At June 30, 1998 the Bank's capital ratios were as follows:
Amount Percent of
(000) applicable assets
-------------------------------
Tangible capital $16,778 7.70%
Requirement 3,269 1.50
------- -----
Excess $13,509 6.19%
======= =====
Core capital $16,778 7.70%
Requirement 8,718 4.00
------- -----
Excess $ 8,060 3.70%
======= =====
Risk-based Capital $17,826 12.39%
Requirement 11,510 8.00
------- -----
Excess $ 6,316 4.39%
======= =====
<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
(a) On April 15, 1998, LSB Financial Corp. held its Annual Meeting of
Stockholders ("Meeting").
(b) Not applicable.
(c) Stockholders of the Company voted on the following matters at the
meeting.
Election of the following persons as directors of the Company for terms of three
years:
<TABLE>
<CAPTION>
Votes Votes Broker
For Withheld Abstentions Non-votes
----- -------- ----------- ---------
<S> <C> <C> <C> <C>
Mariellen M. Neudeck 665,462 2,719 -0- -0-
Harry A. Dunwoody 666,206 1,975 -0- -0-
C. Wesley Shook 663,536 4,645 -0- -0-
<CAPTION>
Votes Votes Broker
For Against Abstentions Non-votes
----- ------- ----------- ---------
<S> <C> <C> <C> <C>
Ratification of 665,965 1,196 1,020 -0-
the appointment
</TABLE>
<PAGE>
of Crowe, Chizek
and Company LLP
as auditors of the
Company for the
fiscal year ended
December 31, 1998.
Item 5. OTHER INFORMATION
If a stockholder proposal is not received by the Company by November 19,
1998, but otherwise meets the Company's eligibility requirements to be presented
at the next Annual meeting of Stockholders, the persons named in the Company's
form of proxy and acting thereon will have the discretion to vote on any such
proposal in accordance with their best judgment if the proposal is received at
the Company's main office later than February 2, 1999.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
See Exhibit Index
(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 August 5, 1998 /S/JOHN W. COREY
----------------------------------
John W. Corey, President
(Principal Executive Officer)
Date August 5, 1998 /S/MARY JO DAVID
----------------------------------
Mary Jo David, Treasurer
(Principal Financial and Accounting Officer)
<PAGE>
INDEX TO EXHIBITS
Exhibit
Number
- ------
11 Computation of Per Share Earnings
27 Financial Data Schedule
LSB FINANCIAL CORP.
COMPUTATION OF PER SHARE EARNINGS
(Dollars in thousands)
<TABLE>
<CAPTION>
For the three months ended
June 30, 1997 June 30, 1998
-------------------------------------------------------------------------
Weighted Weighted
Average Per share Average Per share
Income Shares Amount Income Shares Amount
<S> <C> <C> <C> <C> <C> <C>
Basic EPS
Income available to common shareholders $ 361 914,969 $0.39 $ 470 897,053 $0.52
Effect of dilutive securities
Options 22,467 37,939
Diluted EPS
Income available to common shareholders 361 937,436 $0.39 $ 470 934,993 $0.50
<CAPTION>
For the six months ended
June 30, 1997 June 30, 1998
-------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Basic EPS
Income available to common shareholders $ 719 919,239 $0.78 $ 914 898,378 $1.02
Effect of dilutive securities
Options 22,467 36,509
Diluted EPS
Income available to common shareholders 719 941,706 $0.76 $ 914 934,887 $0.98
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
The schedule contains summary information extracted from the quarterly report on
Form 10-QSB for the quarter ended June 30, 1998 and is qualified in its entirety
by reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<CASH> 5383
<INT-BEARING-DEPOSITS> 3233
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 10782
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 190547
<ALLOWANCE> 1532
<TOTAL-ASSETS> 218633
<DEPOSITS> 147456
<SHORT-TERM> 51500
<LIABILITIES-OTHER> 1128
<LONG-TERM> 173
0
0
<COMMON> 9
<OTHER-SE> 18367
<TOTAL-LIABILITIES-AND-EQUITY> 218633
<INTEREST-LOAN> 7771
<INTEREST-INVEST> 396
<INTEREST-OTHER> 124
<INTEREST-TOTAL> 8291
<INTEREST-DEPOSIT> 3242
<INTEREST-EXPENSE> 4743
<INTEREST-INCOME-NET> 3548
<LOAN-LOSSES> 54
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 2646
<INCOME-PRETAX> 1542
<INCOME-PRE-EXTRAORDINARY> 1542
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 914
<EPS-PRIMARY> 1.02
<EPS-DILUTED> 0.98
<YIELD-ACTUAL> 3.51
<LOANS-NON> 1215
<LOANS-PAST> 0
<LOANS-TROUBLED> 1400
<LOANS-PROBLEM> 1347
<ALLOWANCE-OPEN> 1478
<CHARGE-OFFS> 0
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 1532
<ALLOWANCE-DOMESTIC> 1532
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 168
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
These schedules contain summary information extracted from the quarterly report
on Form 10-QSB for the quarters and year ends noted and are qualified in their
entirety by reference to such financial statements.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C> <C> <C> <C>
<PERIOD-TYPE> 6-MOS 9-MOS 12-MOS 3-MOS
<FISCAL-YEAR-END> Dec-31-1996 Dec-31-1996 Dec-31-1996 Dec-31-1997
<PERIOD-END> Jun-30-1996 Sep-30-1996 Dec-31-1996 Mar-31-1997
<CASH> 3988 3859 4388 4979
<INT-BEARING-DEPOSITS> 1497 2309 5410 4016
<FED-FUNDS-SOLD> 0 0 0 0
<TRADING-ASSETS> 0 0 0 0
<INVESTMENTS-HELD-FOR-SALE> 0 0 6546 8590
<INVESTMENTS-CARRYING> 8287 0 0 0
<INVESTMENTS-MARKET> 8409 7,226 0 0
<LOANS> 149852 156377 154701 162185
<ALLOWANCE> 1718 1716 1715 1740
<TOTAL-ASSETS> 172006 177840 184607 188027
<DEPOSITS> 114364 116305 116949 126432
<SHORT-TERM> 40500 44000 50000 43500
<LIABILITIES-OTHER> 148 591 642 814
<LONG-TERM> 235 228 220 213
0 0 0 0
0 0 0 0
<COMMON> 11 11 11 11
<OTHER-SE> 16577 16705 16785 17057
<TOTAL-LIABILITIES-AND-EQUITY> 172006 177840 167811 170959
<INTEREST-LOAN> 5919 9092 12467 3334
<INTEREST-INVEST> 266 369 624 164
<INTEREST-OTHER> 157 241 156 43
<INTEREST-TOTAL> 6342 9702 13247 3541
<INTEREST-DEPOSIT> 2628 3966 5324 1376
<INTEREST-EXPENSE> 3547 5491 7530 2003
<INTEREST-INCOME-NET> 2,795 4,211 5,717 1,539
<LOAN-LOSSES> 800 800 800 24
<SECURITIES-GAINS> 9 9 7 0
<EXPENSE-OTHER> 2005 3040 4186 1126
<INCOME-PRETAX> 286 840 1426 588
<INCOME-PRE-EXTRAORDINARY> 286 840 1426 588
<EXTRAORDINARY> 0 0 0 0
<CHANGES> 0 0 0 0
<NET-INCOME> 187 532 876 358
<EPS-PRIMARY> 0.19 0.54 0.90 0.39
<EPS-DILUTED> 0.19 0.54 0.89 0.38
<YIELD-ACTUAL> 8.12 0 3.52 3.56
<LOANS-NON> 2750 2444 2484 2522
<LOANS-PAST> 0 0 0 0
<LOANS-TROUBLED> 0 0 0 0
<LOANS-PROBLEM> 1167 1453 1156 1,148
<ALLOWANCE-OPEN> 922 922 922 1,715
<CHARGE-OFFS> 4 6 7 0
<RECOVERIES> 0 0 0 1
<ALLOWANCE-CLOSE> 1718 1716 1715 1,740
<ALLOWANCE-DOMESTIC> 1718 1716 1715 1,740
<ALLOWANCE-FOREIGN> 0 0 0 0
<ALLOWANCE-UNALLOCATED> 0 0 0 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
These schedules contain summary information extracted from the quarterly report
on Form 10-QSB for the quarters and year ends noted and are qualified in their
entirety by reference to such financial statements.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C> <C> <C> <C>
<PERIOD-TYPE> 6-MOS 9-MOS 12-MOS 3-MOS
<FISCAL-YEAR-END> Dec-31-1997 Dec-31-1996 Dec-31-1997 Dec-31-1998
<PERIOD-END> Jun-30-1997 Sep-30-1997 Dec-31-1997 Mar-31-1998
<CASH> 4961 4467 4358 5729
<INT-BEARING-DEPOSITS> 1040 2527 5580 6196
<FED-FUNDS-SOLD> 0 0 0 0
<TRADING-ASSETS> 0 0 0 0
<INVESTMENTS-HELD-FOR-SALE> 8152 8270 7863 10446
<INVESTMENTS-CARRYING> 0 0 0 0
<INVESTMENTS-MARKET> 0 0 0 0
<LOANS> 171075 176239 178745 182902
<ALLOWANCE> 1445 1467 1478 1502
<TOTAL-ASSETS> 194117 200266 206584 216065
<DEPOSITS> 130793 135494 137685 146240
<SHORT-TERM> 45500 46500 50000 50000
<LIABILITIES-OTHER> 435 785 976 1465
<LONG-TERM> 205 197 220 181
0 0 0 0
0 0 0 0
<COMMON> 11 9 9 9
<OTHER-SE> 17173 17281 17725 18170
<TOTAL-LIABILITIES-AND-EQUITY> 176933 182976 188850 197886
<INTEREST-LOAN> 6867 10569 14384 3840
<INTEREST-INVEST> 338 516 709 195
<INTEREST-OTHER> 89 135 156 72
<INTEREST-TOTAL> 7294 11220 15249 4107
<INTEREST-DEPOSIT> 2855 4395 5975 1609
<INTEREST-EXPENSE> 4149 6415 8708 2352
<INTEREST-INCOME-NET> 3,145 4,805 6,541 1755
<LOAN-LOSSES> 48 72 72 24
<SECURITIES-GAINS> 0 0 0 0
<EXPENSE-OTHER> 2314 3508 4786 1299
<INCOME-PRETAX> 1182 1868 2607 740
<INCOME-PRE-EXTRAORDINARY> 1182 1868 2607 740
<EXTRAORDINARY> 0 0 0 0
<CHANGES> 0 0 0 0
<NET-INCOME> 719 1132 1566 445
<EPS-PRIMARY> 0.78 1.24 1.72 0.49
<EPS-DILUTED> 0.76 1.19 1.68 0.48
<YIELD-ACTUAL> 3.55 3.55 3.56 3.49
<LOANS-NON> 868 699 2094 2249
<LOANS-PAST> 0 0 0 0
<LOANS-TROUBLED> 1400 1400 1400 1400
<LOANS-PROBLEM> 1148 1495 1112 1481
<ALLOWANCE-OPEN> 1715 1467 1715 1478
<CHARGE-OFFS> 320 322 322 0
<RECOVERIES> 2 2 13 0
<ALLOWANCE-CLOSE> 1445 1224 1478 1502
<ALLOWANCE-DOMESTIC> 1445 1224 1478 1502
<ALLOWANCE-FOREIGN> 0 0 0 0
<ALLOWANCE-UNALLOCATED> 0 0 194 185
</TABLE>
