By a News Reporter-Staff News Editor at Investment Weekly News -- LSB Financial Corp. (NASDAQ: LSBI), the parent company of Lafayette Savings Bank, FSB, reported year-to-date earnings of $778,000 or $0.49 diluted earnings per share compared to $1.3 million or $0.85 diluted earnings per share a year earlier. Earnings for the quarter were $258,000 or $0.16 diluted earnings per share compared to $664,000 or $0.42 diluted earnings per share a year earlier. The major contributors to the Bank's year-to-date performance were a $525,000 decrease in the provision for loan losses, a $441,000 decrease in the gain on the sale of mortgage loans over the first six months of last year, a $400,000 or 6.8% decrease in net interest income for the six months compared to the same period in 2013 primarily because of lower rates and slower loan growth, and a $327,000 or 33% increase in other expenses due primarily to merger expenses.
Randolph F. Williams, President and CEO stated, "While we are still seeing low loan demand, we continue to be pleased with the improvement in our troubled loans. At June 30, 2014, non-performing assets totaled $1.4 million or 0.39% of total assets, compared to $2.6 million or 0.70%, at the same point in 2013. Our allowance for losses is over 4 times total non-performing assets. With an allowance for loan losses totaling $6.1 million and only $1.3 in non-performing loans, we believe we are well reserved against asset deterioration."
Williams continued, "We continue to make progress in our plan to partner with Old National Bank which will give us the opportunity to offer an expanded array of financial products and services. Old National believes in giving back to the communities it serves and we believe this merger will bring an additional source of support to Greater Lafayette. "
The closing market price of LSB stock on August 11, 2014 was $40.16 per share as reported by the Nasdaq Global Market.
Keywords for this news article include: LSB Financial Corp, Investment and Finance.
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