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, 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 NOVEMBER 9, 1998
----- -------------------------------
Common stock, par value $.01 per share 932,936
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>
LSB FINANCIAL CORP.
STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands)
<TABLE>
<CAPTION>
December 31, September 30,
1997 1998
------------------------------
<S> <C> <C>
Assets
Cash and cash equivalents $ 9,938 $ 11,223
Available-for-sale securities 7,863 10,783
Loans held for sale 1,265 2,997
Total loans 178,745 193,036
Less: Allowance for loan losses (1,478) (1,558)
------------------------------
Net loans 177,267 191,478
Premises and equipment, net 4,912 4,965
FHLB stock, at cost 2,600 2,825
Accrued interest receivable and other assets 2,739 2,773
------------------------------
Total Assets $ 206,584 $ 227,044
==============================
Liabilities and Shareholders' Equity
Liabilities
Deposits $ 137,686 $ 157,387
Advances from FHLB 50,000 50,000
Note payable 189 164
Accrued interest payable and other liabilities 975 1,315
------------------------------
Total liabilities 188,850 208,866
Shareholders' Equity
Common stock 9 9
Additional paid-in-capital 7,854 8,409
Retained earnings 10,677 10,374
Unearned ESOP shares (570) (510)
Unamortized cost of recognition and retention plan (242) (175)
Accumulated other comprehensive income 6 71
------------------------------
Total shareholders' equity 17,734 18,178
------------------------------
Total liabilities and shareholders' equity $ 206,584 $ 227,044
==============================
</TABLE>
See accompanying notes
<PAGE>
LSB FINANCIAL CORP.
STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30, September 30,
1997 1998 1997 1998
--------------------------------------------------
<S> <C> <C> <C> <C>
Interest Income
Loans, including related fees $ 3,702 $ 4,092 $10,569 $11,863
Available-for-sale securities 170 199 497 617
FHLB stock 54 59 154 161
--------------------------------------------------
Total interest income 3,926 4,350 11,220 12,641
Interest Expense
Deposits 1,540 1,741 4,395 4,984
Borrowings 726 772 2,020 2,272
--------------------------------------------------
Total interest expense 2,266 2,513 6,415 7,256
Net interest income 1,660 1,837 4,805 5,385
Provision for loan losses 24 30 72 84
--------------------------------------------------
Net interest income after provision for loan losses 1,636 1,807 4,733 5,301
Noninterest Income
Service charges and fees 120 131 308 401
Net gain on mortgage loans originated for sale 63 90 168 329
Gain on sale of securities 0 0 0 0
Other 63 98 167 283
--------------------------------------------------
Total noninterest income 246 319 643 1,013
Noninterest Expense
Salaries and benefits 603 710 1,788 2,070
Occupancy and equipment, net 194 238 573 646
Computer service 60 65 186 190
Advertising 81 80 220 257
Other 257 309 741 885
--------------------------------------------------
Total noninterest expense 1,195 1,402 3,508 4,048
Income before income taxes 687 724 1,868 2,266
Less: income taxes 273 295 736 923
--------------------------------------------------
Net income $ 414 $ 429 $ 1,132 $ 1,343
==================================================
Earnings per share (Note 3) $ 0.44 $ 0.48 $ 1.19 $ 1.55
Diluted Earnings per Share $ 0.44 $ 0.46 $ 1.19 $ 1.49
Book value per share $ 19.21 $ 20.75 $ 19.21 $ 20.75
</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 65 62 127
RRP expense 68 68
Treasury stock acquired and retired (2) (3,260) 2,629 (633)
Cash dividends paid (233) (233)
Stock dividends paid 867 (867) 0
Comprehensive income
Net income 1132 1,132
Change in unrealized gain/(loss) 30 30
-------
Total comprehensive income 1,162
-----------------------------------------------------------------------------------------------
Balance at September 30, 1997 $9 $7,818 $10,321 ($591) ($264) $0 ($3) $17,290
===============================================================================================
Balance at January 1, 1998 $9 $7,854 $10,677 ($570) ($242) $0 $6 $17,734
Exercise of stock option 1 19 20
ESOP shares earned 129 60 189
RRP expense 67 67
Treasury stock acquired and retired (952) (952)
Cash Dividends paid (280) (280)
Stock Dividends paid (1) 1,359 (1,366) (8)
Comprehensive income
Net income 1,343 1,343
Change in unrealized loss 65 65
-------
Total comprehensive income 1,408
-----------------------------------------------------------------------------------------------
Balance at September 30, 1998 $9 $8,409 $10,374 ($510) ($175) $0 $71 $18,178
===============================================================================================
</TABLE>
See accompanying notes
<PAGE>
LSB FINANCIAL CORP.
STATEMENTS OF CASH FLOWS
(Dollars in thousands)
<TABLE>
<CAPTION>
For the 9 months ended
September 30,
1997 1998
---------------------------
<S> <C> <C>
Cash Flows from Operating Activities
Net Income $ 1,132 $ 1,343
Adjustments to reconcile net income to net
cash from operating activities
Depreciation and amortization 260 294
Net amortization/(accretion) on securities 26 (2)
Gain on sale of securities 0 0
Writedown of loans held for sale 0 0
Gain on sale of loans (168) (329)
Loans originated for sale, net of sales proceeds 5,406 (1,403)
Deferred loan fees, net (50) (64)
Provision for loan losses 72 84
Employee stock ownership plan shares earned 127 189
Change in assets and liabilities
Accrued interest receivable (143) (91)
Other assets (184) 72
Accrued interest payable (19) (21)
Other liabilities 1 137
---------------------------
Net cash from operating activities 6,460 209
Cash Flows from Investing Activities
Purchases of available-for-sale securities (3,672) (6,297)
Proceeds from paydowns and maturities of
available-for-sale securities 1,973 3,497
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 (21,808) (14,232)
Property and equipment expenditures (52) (347)
---------------------------
Net cash from investing activities (23,584) (17,604)
Cash Flows from Financing Activities
Net change in deposits 18,545 19,702
Proceeds from Federal Home Loan Bank advances 29,000 12,500
Payments on Federal Home Loan Bank advances (32,500) (12,500)
Net change in advances from borrowers
for taxes and insurance 161 223
Payments on note payable (23) (25)
Treasury Stock Purchased (633) (952)
Dividends paid (233) (288)
Stock options exercised 3 20
---------------------------
Net cash from financing activities 14,320 18,680
Net change in cash and equivalents (2,804) 1,285
Cash and equivalents at January 1 9,798 9,938
---------------------------
Cash and equivalents at September 30 $ 6,994 $ 11,223
===========================
</TABLE>
See accompanying notes
<PAGE>
LSB FINANCIAL CORP.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 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:
<TABLE>
<CAPTION>
Quarter ended Year-to-date
September 30 September 30
1998 1997 1998 1997
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Weighted average shares outstanding 887,655 897,894 864,727 868,913
(excluding unearned ESOP shares)
Shares used to compute diluted
earnings per share 925,010 933,089 900,749 902,432
Earnings per share $ 0.48 $ 0.46 $ 1.55 $ 1.24
Diluted earnings per share $ 0.46 $ 0.44 $ 1.49 $ 1.19
</TABLE>
<PAGE>
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
March 1999. All vendors have either certified their current system as Year 2000
compliant or have stated that they will provide an upgrade to the system to make
it 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
$182,000.
Financial Condition
Comparison of Financial Condition at September 30, 1998 and December 31,
1997.
Total assets increased $20.5 million during the nine months from December
31, 1997 to
<PAGE>
September 30, 1998. This increase was primarily due to a $14.2 million increase
in the Company's loan portfolio augmented by a $1.7 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 $19.7 million
increase in deposits was used to fund loan growth. Non-performing loans
increased from $2.1 million at December 31, 1997 to $2.5 million at September
30, 1998. Non-performing loans at September 30, 1998 consisted of $2.1 million
of purchased equipment leases, $285,000 in single-family residences and $178,000
in non-mortgage loans. Shareholders' equity increased from $17.7 million at
December 31, 1997 to $18.2 million at September 30, 1998, an increase of
$444,000 primarily due to $1.3 million 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.
Comparison of Operating Results for the Nine Months and the Quarter Ended
September 30, 1997 and September 30, 1998.
General. Net income for the nine months ended September 30, 1998 was $1.3
million, an increase of $211,000 or 18.64% over net income of $1.1 million for
the nine months ended September 30, 1997. This increase was primarily due to a
$580,000 increase in net interest income and a $370,000 increase in non-
interest income in the first nine months of 1998, offset by a $540,000 increase
in operating expenses and a $187,000 increase in the provision for income taxes.
Net income for the third quarter of 1998 was $429,000 compared to $414,000 for
the same period in 1997 due primarily to a $177,000 increase in net interest
income and a $73,000 increase in non-interest income, offset by a $207,000
increase in non-interest expenses and a $22,000 increase in the provision for
income taxes.
Net Interest Income. Net interest income for the nine months ended
September 30, 1998 increased $580,000, or 12.07%, over the same period in 1997.
Net interest income for the third quarter of 1998 similarly increased $177,000,
or 10.66%, 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 3.55% for the nine months
ended September 30, 1997 to 3.49% for the nine months ended September 30, 1998.
The decline in yield was offset by increased volume as average interest-earning
assets increased from $180.6 million for the first nine months of 1997 to $206.0
million for the first nine months of 1998. The interest rate spread for the
first nine months decreased from 3.37% for 1997 to 3.31% for 1998.
Interest income on loans increased $1.3 million or 12.24% for the nine
months ended September 30, 1998 compared to the same nine months in 1997,
primarily the result of an increase of $20.7 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
$101.9 million at September 30, 1998.
<PAGE>
The average yield on loans remained virtually constant at 8.47% for the first
nine months of 1997 and 8.45% for the first nine months of 1998, as the higher
yield in the non-residential portfolios was offset by the lower rates on
one-to-four family loans. Interest income on loans increased $390,000 for the
third quarter of 1998 compared to the third quarter of 1997 due primarily to a
$20.7 million increase in average loans.
Interest earned on other investments and FHLB stock increased by $127,000
for the nine months ended September 30, 1998 compared to the same nine months in
1997. This was the result of an overall $4.7 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 6.12% for the first three
quarters of 1997 to 5.51% due primarily to falling interest rates over the
period. Interest earned on these investments for the third quarter increased
$34,000 due to a $6.9 million increase in average investments due to a $9.9
million increase in deposits which were temporarily placed in short term
investments pending anticipated loan growth and partially offset by a decrease
in average yields from 6.39% to 4.93% resulting from falling interest rates and
the increase in shorter term investments.
Interest expense for the nine months ended September 30, 1998 increased
$841,000 over the same period in 1997. This increase was primarily due to an
increase of $24.5 million in average interest-bearing liabilities, consisting of
an additional $20.0 million in the average balance of customer deposit accounts
and a $4.5 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 4.92% for the first nine months of 1997 and 4.87% for the first
nine months of 1998. Interest expense increased $247,000 for the third quarter
of 1998 over the same period in 1997 primarily due to a $24.0 million increase
in average interest-bearing liabilities partially offset by a decrease in the
average cost of liabilities from 5.02% to 4.91% due to falling interest rates.
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 $1.6 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
an $84,000 provision for loan losses during the first nine months of 1998 as a
result of its analysis of the current loan portfolio. In addition to the $2.1
million of Bennett leases there were $463,000 of non-performing or restructured
loans at September 30, 1998, consisting of three single
<PAGE>
family residences and seven non-mortgage loans. The Company's allowance equaled
0.79% and 0.83% of total loans receivable, including loans held for sale, at
September 30, 1998 and September 30, 1997 respectively. Non-performing loans
totaled $2.1 million at December 31, 1997 and $2.5 million at September 30,
1998, representing 1.02% and 1.11% of total assets respectively.
Non-Interest Income. Non-interest income for the nine months ended
September 30, 1998 increased by $370,000, or 57.54%, over the same period in
1997. This was primarily due to a $161,000 increase in the gain on the sale of
mortgage loans in the secondary market resulting from the increased sales
activity, a $93,000 increase in service charges and fees on deposit accounts due
to the increased number of these accounts, and a $116,000 increase in fees on
various debit and credit card products. Non-interest income for the third
quarter of 1998 increased by $73,000 over the same period in 1997, primarily due
to a $27,000 increase in the gain on the sale of loans in the secondary market
and a $35,000 increase in fees on various debit and credit card products.
Non-Interest Expense. Non-interest expense for the nine months ended
September 30, 1998 increased $540,000, or 15.39% over the same period in 1997.
The major components of this increase included a $282,000 increase in salaries
and employee benefits and a $73,000 increase in occupancy and equipment expense.
The increase in salaries was incurred primarily in connection with the increased
loan origination activity, and the increase in occupancy expense was primarily
due to the purchase of hardware and software in response to attaining Year 2000
compliance. Non-interest expense for the third quarter of 1998 increased by
$207,000 over the same period in 1997, primarily due to a $107,000 increase in
salaries and employee benefits, and a $44,000 increase in occupancy expenses as
a result of Year 2000 compliance efforts.
Income Tax Expense. The Company's income tax provision increased by
$187,000 for the nine months ended September 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 third quarter of 1998
increased $22,000 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 September 30, 1998 were 7.76% and 9.78%, respectively.
<PAGE>
Capital Resources. Shareholders' equity totaled $18.2 million at September
30, 1998 compared to $17.7 million at December 31, 1997, an increase of $444,000
or 2.50%, due to net income of $1.3 million, and a $256,000 decrease in unearned
ESOP shares and unamortized cost of Bank Recognition and Retention Plan shares,
offset by $280,000 of cash dividends paid to shareholders and $952,000 used to
repurchase 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 September 30, 1998 the Bank's capital ratios were as follows:
Amount Percent of
(000) applicable assets
------- -----------------
Tangible capital $16,584 7.32%
Requirement 3,396 1.50
------- -----
Excess $13,188 6.19%
======= =====
Core capital $16,584 7.32%
Requirement 9,056 4.00
------- -----
Excess $ 7,528 3.32%
======= =====
Risk-based Capital $17,632 11.72%
Requirement 12,039 8.00
------- -----
Excess $ 5.593 3.72%
======= =====
<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:
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 November 9, 1998 /S/JOHN W. COREY
------------------------------------------
John W. Corey, President
(Principal Executive Officer)
Date November 9, 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
September 30, 1997 September 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 $ 414 897,894 $0.46 $ 429 887,655 $0.48
Effect of dilutive securities
Options 35,195 37,355
Diluted EPS
Income available to common shareholders 414 933,089 $0.44 $ 429 925,010 $0.46
<CAPTION>
For the nine months ended
September 30, 1997 September 30, 1998
------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Basic EPS
Income available to common shareholders $1,132 868,913 $1.24 $ 1,343 864,727 $1.55
Effect of dilutive securities
Options 33,519 36,023
Diluted EPS
Income available to common shareholders 1,132 902,432 $1.19 $ 1,343 900,750 $1.49
</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 September 30, 1998 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-31-1998
<PERIOD-END> SEP-30-1998
<CASH> 1382
<INT-BEARING-DEPOSITS> 9841
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 10783
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
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0
0
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</TABLE>
