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 March 31, 1999
[_] 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 MAY 13, 1999
----- ---------------------------
Common stock, par value $.01 per share 918,946
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...... 7-12
PART II. OTHER INFORMATION........................................ 13
SIGNATURES................................................ 14
EXHIBIT INDEX............................................. 15
<PAGE>
LSB FINANCIAL CORP.
STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands)
<TABLE>
<CAPTION>
December 31, March 31,
1998 1999
------------------------------
Assets
<S> <C> <C>
Cash and cash equivalents $ 9,646 $ 13,674
Available-for-sale securities 12,675 11,656
Loans held for sale 2,694 945
Total loans 198,230 209,505
Less: Allowance for loan losses (1,578) (1,608)
------------------------------
Net loans 196,652 207,897
Premises and equipment, net 5,805 5,834
FHLB stock, at cost 2,825 3,050
Accrued interest receivable and other assets 2,514 3,041
------------------------------
Total Assets $ 232,811 $ 246,097
==============================
Liabilities and Shareholders' Equity
Liabilities
Deposits $ 161,781 $ 168,119
Advances from FHLB 51,500 57,500
Note payable 156 147
Accrued interest payable and other liabilities 1,180 1,867
------------------------------
Total liabilities 214,617 227,633
Shareholders' Equity
Common stock 9 9
Additional paid-in-capital 8,064 8,052
Retained earnings 10,703 10,993
Unearned ESOP shares (492) (473)
Unamortized cost of recognition and retention plan (152) (130)
Accumulated other comprehensive income
Total shareholders' equity 62 13
------------------------------
Total liabilities and shareholders' equity 18,194 18,464
------------------------------
$ 232,811 $ 246,097
==============================
$ 20.17 $ 21.32
</TABLE>
See accompanying notes
<PAGE>
LSB FINANCIAL CORP.
STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
<TABLE>
<CAPTION>
Three months ended
March 31,
1998 1999
-----------------------------
<S> <C> <C>
Interest Income
Loans, including related fees $3,840 $4,162
Available-for-sale securities 216 224
FHLB stock 51 60
-----------------------------
Total interest income 4,107 4,446
Interest Expense
Deposits 1,609 1,770
Borrowings 743 806
-----------------------------
Total interest expense 2,352 2,576
Net interest income 1,755 1,870
Provision for loan losses 24 30
-----------------------------
Net interest income after provision for loan losses 1,731 1,840
Noninterest Income
Service charges and fees 122 129
Net gain on mortgage loans originated for sale 86 58
Gain on sale of securities 0 0
Other income 100 104
-----------------------------
Total noninterest income 308 291
Noninterest Expense
Salaries and benefits 680 744
Occupancy and equipment, net 198 224
Computer service 62 78
Advertising 85 95
Other 274 318
-----------------------------
Total noninterest expense 1,299 1,459
Income before income taxes 740 672
Less: income taxes 295 272
-----------------------------
Net income $ 445 $ 400
=============================
Earnings per share $ 0.49 $ 0.46
Diluted Earnings per share $ 0.48 $ 0.45
Book value per share $20.17 $21.32
</TABLE>
See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
LSB FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF CHANGES
IN SHAREHOLDERS' EQUITY
(Dollars in thousands)
Unamortized
Cost of Bank Accumulated
Additional Unearned Recognition Other
Common Paid-In Retained ESOP and Retention Comprehensive
Stock Capital Earnings Shares Plan Income Total
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance at January 1, 1998 $ 9 $ 7,854 $ 10,677 ($ 570) ($242) $ 6 $ 17,734
Exercise of stock option 0 0
ESOP shares earned 38 20 58
RRP expense 22 22
Treasury stock acquired 0
Dividends paid (92) (92)
Comprehensive income
Net income 445 445
Change in unrealized gain/(loss) 12 12
-------------
Total comprehensive income 457
- ----------------------------------------------------------------------------------------------------------------------------------
Balance at March 31, 1998 $ 9 $ 7,892 $ 11,030 ($ 550) ($220) $ 18 $ 18,179
==================================================================================================================================
Balance at January 1, 1999 $ 9 $ 8,064 $ 10,703 ($ 492) ($152) $ 62 $ 18,194
Exercise of stock option 9 9
ESOP shares earned 39 19 58
RRP expense 22 22
Treasury stock acquired (60) (60)
Dividends paid (110) (110)
Comprehensive income
Net income 400 400
Change in unrealized gain/(loss) (49) (49)
-------------
Total comprehensive income 351
- ----------------------------------------------------------------------------------------------------------------------------------
Balance at March 31, 1999 $ 9 $ 8,052 $ 10,993 ($ 473) ($130) $ 13 $ 18,464
==================================================================================================================================
</TABLE>
<PAGE>
LSB FINANCIAL CORP.
STATEMENTS OF CASH FLOWS
(Dollars in thousands)
<TABLE>
<CAPTION>
For the 3 months ended March 31,
1998 1999
----------------------------------
<S> <C> <C>
Cash Flows from Operating Activities
Net Income $ 445 $ 400
Adjustments to reconcile net income to net
cash from operating activities
Depreciation and amortization 93 115
Net amortization/(accretion) on securities (11) 17
Gain on sale of securities 0 0
Gain on sale of loans (86) (58)
Loans originated for sale, net of sales proceeds (677) 1,807
Provision for loan losses 24 30
Employee stock ownership plan shares earned 58 58
Change in assets and liabilities
Accrued interest receivable and other assets (11) (472)
Accrued interest payable and other liabilities 489 687
----------------------------------
Net cash from operating activities 324 2,584
Cash Flows from Investing Activities
Purchases of available-for-sale securities (4,867) 0
Proceeds from paydowns and maturities of
available-for-sale securities 2,315 920
Sales of available-for-sale securities 0 0
Purchase of Federal Home Loan Bank stock 0 (225)
Loans made to customers net of payments received (4,157) (11,275)
Property and equipment expenditures (83) (144)
----------------------------------
Net cash from investing activities (6,792) (10,724)
Cash Flows from Financing Activities
Net change in deposits 8,555 6,338
Proceeds from Federal Home Loan Bank advances 0 20,000
Payments on Federal Home Loan Bank advances 0 (14,000)
Payments on note payable (8) (9)
Treasury Stock Purchased 0 (60)
Dividends paid (92) (110)
Stock options exercised 0 9
----------------------------------
Net cash from financing activities 8,455 12,168
Net change in cash and equivalents 1,987 4,028
Cash and equivalents at January 1 9,938 9,646
----------------------------------
Cash and equivalents at March 31 $ 11,925 $ 13,674
==================================
</TABLE>
See accompanying notes
<PAGE>
LSB FINANCIAL CORP.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1999
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. 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., its wholly owned subsidiary Lafayette Savings Bank, FSB and Lafayette
Savings' wholly owned subsidiaries, LSB Service Corporation and Lafayette
Insurance and Investments, Inc. 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. 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. The
following table presents information about the number of shares used to compute
earnings per share and the results of the computations:
Quarter ended
March 31,
1998 1999
---- ----
Weighted average shares outstanding 857,383 864,779
(excluding unearned ESOP shares)
Shares used to compute diluted
earnings per share 888,900 898,102
Earnings per share $ 0.49 $ 0.46
Diluted earnings per share $ 0.48 $ 0.45
<PAGE>
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 45,268 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.
Note 4 - Accounting Changes
Effective January 1, 1997, LSB Financial 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 OF RECENT OPERATING RESULTS
Forward Looking Statements
LSB Financial Corp. and its wholly-owned subsidiary Lafayette Savings Bank,
FSB may from time to time make written or oral forward-looking statements,
including statements contained in our filings with the Securities and Exchange
Commission, including this Quarterly Report on Form 10-QSB and its exhibits, and
in other communications by us, which are made in good faith pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995. The
words "may", "could", "should", "would", "believe", "anticipate", "estimate",
"expect", "intend", "plan" and similar expressions are intended to identify
forward-looking statements. References in this Form 10-QSB to "we", "us", and
"our" refer to LSB Financial and/or Lafayette Savings as the context requires.
Forward-looking statements include statements with respect to our beliefs,
plans, objectives, goals, expectations, anticipations, estimates and intentions,
that are subject to significant risks and uncertainties. The following factors,
many of which are subject to change based on various other factors beyond our
control, could cause our financial performance to differ materially from the
plans, objectives, expectations, estimates and intentions expressed in such
forward-looking statements:
o the strength of the United States economy in general and the strength
of the local economies in which we conduct our operations;
o the effects of, and changes in, trade, monetary and fiscal policies
and laws, including interest rate policies of the Federal Reserve
Board;
o inflation, interest rate, market and monetary fluctuations;
o the timely development of and acceptance of our new products and
services and the perceived overall value of these products and
services by users, including the features, pricing and quality
compared to competitors' products and services;
o the willingness of users to substitute competitors' products and
services for our products and services;
o the impact of changes in financial services' laws and regulations
(including laws concerning taxes, banking, securities and insurance);
o the impact of technological changes;
o acquisitions;
o changes in consumer spending and saving habits; and
o our success at managing the risks involved in the foregoing.
This list of important factors is not exclusive. We do not undertake to
update any forward-looking statement, whether written or oral, that we may make.
Impact of the Year 2000
The approaching millennium is causing organizations of all types to review
their computer
<PAGE>
systems for the ability to properly accommodate the year 2000. When computer
systems were first developed, two digits were used to designate the year in date
calculations and "19" was assumed for the century. As a result, there is
significant concern about the integrity of date sensitive calculations when the
calendar rolls over to January 1, 2000. An older system could interpret 01/01/00
as January 1, 1900 potentially causing major problems calculating interest,
payment, delinquency or maturity dates. An internal committee comprised of four
officers has been formed to address the potential risk that the year 2000 poses
for Lafayette Savings. This committee reports to the audit committee of the
board and the full board of directors quarterly or more often as warranted.
Financial institution regulators recently have increased their focus upon
year 2000 compliance issues and have issued guidance concerning the
responsibilities of senior management and directors. The Federal Financial
Institutions Examination Council has issued several interagency statements on
Year 2000 Project Management Awareness. These statements require financial
institutions to, among other things, examine the year 2000 issue with respect to
their customers, suppliers and borrowers. These statements also require each
federally insured financial institution to survey its exposure, measure its risk
and prepare a plan to address the year 2000 issue. In addition, the federal
banking regulators have issued safety and soundness guidelines to be followed by
insured depository institutions to assure resolution of any year 2000 problems.
Accurate data processing is essential to our operations and a lack of
accurate processing by our vendors or us could have a significant adverse impact
on our financial condition and results of operations. We have been assured by
our outside data processing service that their computer services will function
properly on and after January 1, 2000. A contingency plan, however, has been
developed by Lafayette Savings in the unlikely event that our data processing
service does not function properly on or after January 1, 2000. This plan
focuses on conducting operations in a manual mode, including the recording of
transactions on spreadsheets.
We have also received year 2000 updates from most of our material,
non-information system providers, including but not limited to security cameras,
credit card and ATM card processors, the vault alarm, check printers, telephone
systems, participation loan servicers, and institutions we invest through or
with. Based on these updates, we do not anticipate any significant year 2000
issues. We have identified certain hardware and software that was not Year 2000
compliant and have already purchased replacement equipment and software. Our
anticipated expenditure on this equipment is approximately $184,000.
In addition to expenses related to our own systems, we could incur losses
if loan payments are delayed due to year 2000 problems affecting any of our
significant borrowers or impairing the payroll systems of large employers in our
market area. We have been communicating with our vendors to assess their
progress in evaluating their systems and implementing any corrective measures
required by them to be prepared for the year 2000. We have also sent year 2000
readiness request letters to certain borrowers. These borrowers were selected
based on the aggregate amounts owed to Lafayette Savings, the type of loans
outstanding, and the perceived year 2000 risk based on our knowledge of the loan
customers and their operations. We have been advised by such parties that they
have plans in place to address and correct the issues associated with the year
2000 problem; however, no assurance can be given as to the adequacy of these
plans or to the timeliness of their
<PAGE>
implementation. Currently, due to the types of borrowers doing business with
Lafayette Savings and the nature of our loans with these borrowers, we do not
consider the year 2000 issue as part of our underwriting criteria.
Financial Condition
Comparison of Financial Condition at March 31, 1999 and December 31, 1998.
Our total assets increased $13.3 million during the three months from
December 31, 1998 to March 31, 1999. This increase was primarily due to a $11.3
million increase in our loan portfolio, partially offset by a $1.7 million
decrease in loans held for sale, as we continued our efforts to grow by
aggressively seeking to attract new residential mortgage borrowers and to
increase the size of our higher-yielding multi-family, commercial real estate,
land and land development and consumer loan portfolios. Cash and cash
equivalents and investment securities increased $3.0 million. We used a $6.3
million increase in deposits and a $6.0 million increase in Federal Home Loan
Bank Advances to fund loan growth and provide liquidity for future lending
activity. Non-performing loans increased from $2.7 million at December 31, 1998
to $2.9 million at March 31, 1999, consisting primarily of $2.1 million of
purchased equipment leases. Shareholders' equity increased from $18.2 million at
December 31, 1998 to $18.5 million at March 31, 1999, an increase of $270,000
due primarily to net income partially offset by the payment of a cash dividend.
Results of Operations
Comparison of Operating Results for the Three Months Ended March 31, 1999 and
March 31, 1998.
General. Net income for the three months ended March 31, 1999 was $400,000,
a decrease of $45,000 or 10.11% from net income of $445,000 for the three months
ended March 31, 1998. This decrease was primarily due to a $160,000 increase in
operating expenses offset by a $115,000 increase in net interest income.
Net Interest Income. Net interest income for the three months ended March
31, 1999 increased $115,000, or 6.55% over the same period in 1998. This
increase was primarily volume driven due to management's success in growing the
balance sheet. Our net interest margin (net interest income divided by average
interest-earning assets) decreased from 3.49% for the three months ended March
31, 1998 to 3.22% for the three months ended March 31, 1999. The decline in
yield was offset by increased volume as average interest-earning assets
increased from $201.4 million for the first quarter of 1998 to $232.1 million
for the first quarter of 1999.
Interest income on loans increased $322,000 or 8.39% for the three months
ended March 31, 1999 compared to the same three months in 1998, primarily the
result of an increase of $23.2 million in average loans outstanding. This
increase was primarily due to an active residential real estate market in 1999
due to continued low interest rates, a strong local economy, the ongoing success
of our focus on multi-family, commercial real estate, land and land development
and consumer loan production. These higher-yielding portfolios increased from
$92.4 million at December 31,
<PAGE>
1998 to $98.6 million at March 31, 1999. This increase in volume was partially
offset by a decrease in the average yield on loans from 8.45% for the first
three months of 1998 to 8.12% for the first three months on 1999, due to
continued low interest rates and the increasing number of 3-year adjustable rate
mortgages repricing to substantially lower interest rates.
Interest earned on other investments and Federal Home Loan Bank stock
increased by $17,000 for the three months ended March 31, 1999 compared to the
same period in 1998. This was the result of an overall $7.5 million increase in
the average balance of other investments, offset by a decrease in the average
yield from 5.47% for the first quarter of 1998 to 4.19% over the same period in
1999 partially due to our maintaining higher levels of short-term investments to
fund loans as short-term data processing conversion problems were resolved.
Interest expense for the three months ended March 31, 1999 increased
$224,000 or 9.52% over the same period in 1998. This increase was primarily due
to an increase of $23.1 million in average interest-bearing liabilities,
consisting of an additional $16.3 million in the average balance of customer
deposit accounts and a $6.8 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 decreased slightly from 4.82% for the first quarter
of 1998 to 4.72% the first quarter of 1999.
Provision for Loan Losses. We establish our 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. The majority
of our non-performing loans relate to a situation involving the Bennett Funding
Group of Syracuse, New York through which we acquired $2.4 million of equipment
leases. Management allocates $651,000 of the $1.6 million allowance to the
remaining leases and the related restructured loan to provide for potential
losses. It is believed that this reserve allocation will be sufficient to cover
any losses. We also recorded a $30,000 provision for loan losses during the
three months of 1999 as a result of analyzing our current loan portfolios This
compares to a $24,000 provision for the first quarter of 1998. In addition to
the $2.1 million of Bennett Funding Group leases there were $814,000 of
non-performing or restructured loans at March 31, 1999. At March 31, 1999, our
allowance equaled 0.76% of net loans receivable compared to 0.81% at March 31,
1998.
Non-Interest Income. Non-interest income for the three months ended March
31, 1999 decreased by $17,000, or 5.52%, compared to the same period in 1998.
This was primarily due to a $28,000 decrease in the gain on the sale of mortgage
loans in the secondary market resulting from the decreased sales activity and
lower average gains on loans sold which was partially offset by a $7,000
increase in service charges and fees on deposit accounts due to the increased
number of these accounts.
<PAGE>
Non-Interest Expense. Non-interest expense for the three months ended March
31, 1999 increased $160,000 over the same period in 1998. The major components
of this increase included a $64,000 increase in salaries and employee benefits,
a $26,000 increase in occupancy and equipment expense due to the purchase of a
building to house back-office operations and a $16,000 increase in data
processing costs due partially to Year 2000 compliance costs.
Income Tax Expense. Our income tax provision decreased by $23,000 for the
quarter ended March 31, 1999 compared to the quarter ended March 31, 1998. This
was primarily due to the decrease in income before income taxes.
Liquidity. Liquidity management is both a daily and long-term function for
our senior management. We adjust our investment strategy, within the limits
established by the investment policy, based upon assessments of expected loan
demand, expected cash flows, Federal Home Loan Bank advance opportunities,
market yields and objectives of our asset/liability management program. Base
levels of liquidity have generally been invested in interest-earning overnight
and time deposits with the Federal Home Loan Bank 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.
We are 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%. Our
internal policy for liquidity is 6% to 8%. Our liquidity ratios at December 31,
1998 and March 31, 1999 were 11.77% and 11.01%, respectively. We expect the
liquidity level to decline with the expected growth in the loan portfolio and
through scheduled maturities of Federal Home Loan Bank advances.
Capital Resources. Shareholders' equity totaled $18.5 million at March 31,
1999 compared to $18.2 million at December 31, 1998, an increase of $270,000 or
1.48%, due to net income of $400,000, offset by $110,000 of cash dividends paid
to shareholders and $60,000 used to repurchase shares.
Federal regulations require us to maintain certain minimum levels of
regulatory capital. The regulations currently require that core capital be 4.0%
of total assets, and that risk based capital be at least 8.0% of risk-based
assets. At March 31, 1999 our capital ratios were as follows:
Amount Percent of
(000) applicable assets
------------------------------
Tangible capital $16,877 6.88%
Requirement 3,680 1.50
------- -----
Excess $13,197 5.38%
======= =====
Core capital $16,877 6.88%
Requirement 9,814 3.00
------- -----
Excess $ 7,063 3.88%
======= =====
Risk-based Capital $17,920 10.98%
Requirement 13,052 8.00
------- -----
Excess $ 4,868 2.98%
======= =====
<PAGE>
PART II - OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
From time to time, we 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 our 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
An 8-K was filed on January 27, 1999 announcing the completion of our
5% stock repurchase.
<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 May 11, 1999 /s/ JOHN W. COREY
- ---- ------------ --------------------------------------------
John W. Corey, President
(Principal Executive Officer)
Date May 11, 1999 /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
<PAGE>
<TABLE>
<CAPTION>
LSB FINANCIAL CORP.
COMPUTATION OF PER SHARE EARNINGS
(Dollars in thousands)
For the three months ended
March 31, 1999 March 31, 1998
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 $ 400 864,779 $ 0.46 $ 445 857,383 $ 0.49
Effect of dilutive securities
Options 33,323 31,517
Diluted EPS
Income available to common shareholders $ 400 898,102 $ 0.45 445 888,900 $ 0.48
</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 March 31, 1999 and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> MAR-31-1999
<CASH> 1306
<INT-BEARING-DEPOSITS> 12368
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 11656
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 209505
<ALLOWANCE> 1608
<TOTAL-ASSETS> 246097
<DEPOSITS> 168119
<SHORT-TERM> 57500
<LIABILITIES-OTHER> 1867
<LONG-TERM> 147
0
0
<COMMON> 9
<OTHER-SE> 18455
<TOTAL-LIABILITIES-AND-EQUITY> 227633
<INTEREST-LOAN> 4162
<INTEREST-INVEST> 224
<INTEREST-OTHER> 60
<INTEREST-TOTAL> 4446
<INTEREST-DEPOSIT> 1770
<INTEREST-EXPENSE> 2576
<INTEREST-INCOME-NET> 1870
<LOAN-LOSSES> 30
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1459
<INCOME-PRETAX> 672
<INCOME-PRE-EXTRAORDINARY> 672
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 400
<EPS-PRIMARY> 0.46
<EPS-DILUTED> 0.45
<YIELD-ACTUAL> 3.22
<LOANS-NON> 1486
<LOANS-PAST> 0
<LOANS-TROUBLED> 1400
<LOANS-PROBLEM> 1193
<ALLOWANCE-OPEN> 1578
<CHARGE-OFFS> 0
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 1608
<ALLOWANCE-DOMESTIC> 1608
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 140
</TABLE>
