LSB Financial Corp. (LSBI, Financial) filed Quarterly Report for the period ended 2009-06-30.
LSB Financial Corp. is the holding company of Lafayette Savings Bank FSB. LSB Financial Corp. has a market cap of $17.1 million; its shares were traded at around $11.05 with a P/E ratio of 12.9 and P/S ratio of 0.6. The dividend yield of LSB Financial Corp. stocks is 4.6%.
Our total assets increased $2.5 million, or 0.68%, during the six months from December 31, 2008 to June 30, 2009. Primary components of this increase were a $9.3 million increase in short term investments offset by a $5.4 million decrease in net loans receivable including loans held for sale and a $1.6 million decrease in other assets due primarily to a $1.8 million decrease in account transfers in the process of settlement. Management attributes the increase in short-term investments to a $22.4 million increase in deposits from December 31, 2008 to June 30, 2009, part of which we moved to short-term investments in expectation of repayments of maturing Federal Home Loan Bank advances or maturing brokered deposits. We reduced Federal Home Loan Bank advances by $21.0 million from December 31, 2008 to June 30, 2009. The decrease in net loans was generally due to the increase in the number of borrowers interested in refinancing their mortgages to lower rate fixed rate mortgages which we typically sell on the secondary market. The increase in deposits was generally due to a decision by bank customers to move funds to the safety of a bank offering FDIC deposit insurance coverage rather than leave them in more risky investments, as well as the increased security offered by the Company s participation in the FDIC s Temporary Liquidity Guarantee Program, (“TLGP”). The Company s participation in the TLGP allows noninterest bearing transaction accounts to receive unlimited insurance coverage until December 31, 2009. The FDIC has proposed a possible extension of the unlimited insurance protection for noninterest bearing accounts beyond the current termination date of December 31, 2009, for a possible cost of 25 basis point per $100 of insured deposits.
Non-performing assets, which include non-accruing loans, accruing loans 90 days past due and foreclosed assets, increased from $9.4 million at December 31, 2008 to $12.3 million at June 30, 2009. Non-performing loans and accruing loans 90 days past due totaled $10.8 million at June 30, 2009 and consisted of $6.6 million, or 60.63%, of one- to four-family or multi-family residential real estate loans, $3.7 million, or 33.77%, of loans on land or commercial property, $598,000, or 5.52%, of commercial business loans and $9,000, or 0.08%, of consumer loans. Non-performing assets also include $1.5 million in foreclosed assets. At June 30, 2009, our allowance for loan losses equaled 1.27% of total loans (including loans held for sale) compared to 1.12% at December 31, 2008. The allowance for loan losses at June 30, 2009 totaled 33.20% of non-performing assets compared to 39.38% at December 31, 2008, and 37.71% of non-performing loans at June 30, 2009 compared to 46.35% at December 31, 2008. Our non-performing assets equaled 3.28% of total assets at June 30, 2009 compared to 2.52% at December 31, 2008. Non-performing loans totaling $583,000 were charged off in the first six months of 2009, offset by recoveries of $13,000.
Shareholders equity increased from $34.1 million at December 31, 2008 to $34.3 million at June 30, 2009, an increase of $256,000, or 0.75%, primarily as a result of net income of $614,000, partially offset by our payment of $388,000 of dividends on common stock. Shareholders equity to total assets was 9.14% at June 30, 2009 and at December 31, 2008.
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LSB Financial Corp. is the holding company of Lafayette Savings Bank FSB. LSB Financial Corp. has a market cap of $17.1 million; its shares were traded at around $11.05 with a P/E ratio of 12.9 and P/S ratio of 0.6. The dividend yield of LSB Financial Corp. stocks is 4.6%.
Highlight of Business Operations:
Tippecanoe County and the eight surrounding counties comprise Lafayette Savings primary market area. Lafayette is the county seat of Tippecanoe County and West Lafayette is the home of Purdue University. The Greater Lafayette area enjoys diverse employment including major manufacturers such as Subaru/Toyota, Caterpillar, and Wabash National; a strong education sector with Purdue University and a large local campus of Ivy Tech Community College; government offices of Lafayette, West Lafayette and Tippecanoe County; a growing high-tech presence with the Purdue Research Park, and the growth of a new medical corridor spurred by the building of two new hospitals. However the area isn t immune to the effects of the recession. The Tippecanoe County unemployment rate for June 2009 was 10.3%, compared to 10.7% for Indiana and 9.7% for the U.S. Pending temporary layoffs announced by Caterpillar and new layoffs by Wabash National last quarter contributed to the increase in the unemployment rate this quarter. Wabash National has just announced that it has entered into a securities purchase agreement with Trailer Investments, LLC, pursuant to which Trailer Investments will invest $35 million in Wabash National. Non-manufacturing sectors of the economy have fared better. A recent national report on the “Best Cities for Jobs” by the Praxis Strategy Group characterized the Lafayette area as “this year s shooting star” having moved from a ranking of 287 in 2008 to 85 this year. The Purdue Research Park has more than 3,700 employees earning an average annual wage of $54,000. With the addition of the two new buildings in May, 2009, the Purdue Research Park of West Lafayette has about 364,000 square feet of incubation space, making it the largest business incubator complex in the state.Our total assets increased $2.5 million, or 0.68%, during the six months from December 31, 2008 to June 30, 2009. Primary components of this increase were a $9.3 million increase in short term investments offset by a $5.4 million decrease in net loans receivable including loans held for sale and a $1.6 million decrease in other assets due primarily to a $1.8 million decrease in account transfers in the process of settlement. Management attributes the increase in short-term investments to a $22.4 million increase in deposits from December 31, 2008 to June 30, 2009, part of which we moved to short-term investments in expectation of repayments of maturing Federal Home Loan Bank advances or maturing brokered deposits. We reduced Federal Home Loan Bank advances by $21.0 million from December 31, 2008 to June 30, 2009. The decrease in net loans was generally due to the increase in the number of borrowers interested in refinancing their mortgages to lower rate fixed rate mortgages which we typically sell on the secondary market. The increase in deposits was generally due to a decision by bank customers to move funds to the safety of a bank offering FDIC deposit insurance coverage rather than leave them in more risky investments, as well as the increased security offered by the Company s participation in the FDIC s Temporary Liquidity Guarantee Program, (“TLGP”). The Company s participation in the TLGP allows noninterest bearing transaction accounts to receive unlimited insurance coverage until December 31, 2009. The FDIC has proposed a possible extension of the unlimited insurance protection for noninterest bearing accounts beyond the current termination date of December 31, 2009, for a possible cost of 25 basis point per $100 of insured deposits.
Non-performing assets, which include non-accruing loans, accruing loans 90 days past due and foreclosed assets, increased from $9.4 million at December 31, 2008 to $12.3 million at June 30, 2009. Non-performing loans and accruing loans 90 days past due totaled $10.8 million at June 30, 2009 and consisted of $6.6 million, or 60.63%, of one- to four-family or multi-family residential real estate loans, $3.7 million, or 33.77%, of loans on land or commercial property, $598,000, or 5.52%, of commercial business loans and $9,000, or 0.08%, of consumer loans. Non-performing assets also include $1.5 million in foreclosed assets. At June 30, 2009, our allowance for loan losses equaled 1.27% of total loans (including loans held for sale) compared to 1.12% at December 31, 2008. The allowance for loan losses at June 30, 2009 totaled 33.20% of non-performing assets compared to 39.38% at December 31, 2008, and 37.71% of non-performing loans at June 30, 2009 compared to 46.35% at December 31, 2008. Our non-performing assets equaled 3.28% of total assets at June 30, 2009 compared to 2.52% at December 31, 2008. Non-performing loans totaling $583,000 were charged off in the first six months of 2009, offset by recoveries of $13,000.
Shareholders equity increased from $34.1 million at December 31, 2008 to $34.3 million at June 30, 2009, an increase of $256,000, or 0.75%, primarily as a result of net income of $614,000, partially offset by our payment of $388,000 of dividends on common stock. Shareholders equity to total assets was 9.14% at June 30, 2009 and at December 31, 2008.
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