LSB Financial Corp. reported consolidated earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, the company reported net income of $24,000 or $0.02 per diluted share on net interest income of $2,612,000 against net income of $392,000 or $0.25 per diluted share on net interest income of $2,440,000 in the same period of last year. Total interest income was $4,874,000 against $5,295,000 in the same period of last year. Loss before income taxes was $43,000 against income before income taxes of $542,000 in the same period of last year. Return on average equity was 0.28% against 5.30% in the same period of last year. Return on average assets was 0.03% against 0.49% in the same period of last year. For the nine months ended September 30, 2009, the company reported net income of $639,000 or $0.41 per diluted share on net interest income of $7,534,000 against net income of $1,429,000 or $0.92 per diluted share on net interest income of $7,583,000 in the same period of last year. Total interest income was $14,905,000 against $16,090,000 in the same period of last year. Income before income taxes was $791,000 against $2,041,000 in the same period of last year. Return on average equity was 2.48% against 5.80% in the same period of last year. Return on average assets was 0.23% against 0.56% in the same period of last year. Book value per share as at September 30, 2009 was $22.07 against $21.92 as at December 31, 2008. Factors causing the decrease in year-to-date net income included a $971,000 increase in the provision for loan losses and a $425,000 increase in FDIC insurance premiums including a special assessment to help replenish the FDIC insurance fund. The company announced that it will pay a quarterly cash dividend of $0.125 per share to shareholders of record as of the close of business on November 6, 2009 with a payment date of December 4, 2009.

LSB Financial Corp. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2009. For the quarter, the company reported net interest income of $2.536 million, income before income taxes of $427,000 and net income of $312,000 or $0.20 per diluted share on total interest income of $5.059 million compared to the net interest income of $2.600 million, income before income taxes of $756,000 and net income of $521,000 or $0.33 per diluted share on total interest income of $5.374 million for the same period a year ago. The company reported return on average equity of 3.63% and return on average assets of 0.33% compared to the return on average equity of 6.05% and return on average assets of 0.59% for the same period a year ago. For the six months, the company reported net interest income of $4.922 million, income before income taxes of $834,000 and net income of $614,000 or $0.40 per diluted share on total interest income of $10.031 million compared to the net interest income of $5.143 million, income before income taxes of $1,499,000 and net income of $1,037,000 or $0.66 per diluted share on total interest income of $10.795 million for the same period a year ago. The company reported return on average equity of 3.58% and return on average assets of 0.32% compared to the return on average equity of 6.04% and return on average assets of 0.59% for the same period a year ago. Factors causing the decrease in year-to-date net income included a $458,000 increase in the reserve for loan losses and a $270,000 increase in FDIC insurance premiums including a special assessment to help rebuild the FDIC insurance fund. The Company also announced that it will pay a quarterly cash dividend of $0.125 per share to shareholders of record as of the close of business on August 7, 2009 with a payment date of September 4, 2009.

On July 20, 2009, the Board of Directors of LSB Financial Corp. amended the company's Amended and Restated Bylaws to add a new Section 2.12 to Article II to elect not to be governed by new Indiana Code �23-1-33-6(c) of the Indiana Business Corporation. The new IBCL provision, which became effective July 1, 2009, imposes mandatory staggered terms for the members of the board of directors of all public companies incorporated in Indiana unless, on or before July 31, 2009, the company adopts a bylaw expressly electing not to be governed by the provision. Even if a company elects to 'opt out' of the mandatory IBCL staggered board requirement, the company may maintain or adopt a staggered board in compliance with the provisions of the company's articles or bylaws. A company that does opt out on or before July 31, 2009, may subsequently rescind the election to opt out and cause the company to become subject to the mandatory staggered board requirement.