LSB Corporation First Quarter Results 2005.NORTH ANDOVER North Andover (ăn`dōvər), town (1990 pop. 22,792), Essex co., NE Mass., on the Merrimack River, in a dairy and farm area; settled c.1644, set off from Andover and inc. 1855. , Mass. -- LSB (Linux Standard Base) A standard interface (ABI) for Linux from the Linux Foundation (www.linux-foundation.org). Introduced in 2001 by the Free Standards Group, which later became the Linux Foundation, applications based on the LSB standard will run properly under Corporation, (the "Corporation" or the "Company") (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :LSBX), today announced results for the first quarter ended March 31, 2005. Press releases and SEC filings can be viewed on the internet at our website www.LawrenceSavings.com/press-main.asp or www.LawrenceSavings.com/stockholder-info.asp, respectively. The Corporation reported net income of $859,000 or $0.19 diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the first three months of 2005. This amount compares to net income of $786,000 or $0.18 diluted earnings per share for the same period of 2004. Net income for the three months ended March 31, 2005 increased by $73,000 over the same period in 2004 primarily due to an increase in net interest income. Net interest income increased by $131,000 or 3.8% to $3,554,000 compared to the same period in 2004. Net interest income increased primarily due to higher average investment and loan balances for the three months ended 2005 compared to 2004 which impacted interest income by $405,000 and $268,000, respectively. These interest earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin were funded by deposit growth and increased FHLB FHLB Federal Home Loan Bank advances. Non-interest income increased by $43,000 and was offset by an increase in non-interest expenses of $93,000. The increase in non-interest income of $43,000 was primarily due to loan fees increasing by $18,000 and ATM and debit card debit card, card that allows the cost of goods or services that are purchased to be deducted directly from the purchaser's checking account. They can also be used at automated teller machines for withdrawing cash from the user's checking account. fees increasing by $15,000 in 2005 compared to 2004. The increase in loan fees for the first quarter 2005 can be attributed to a decrease in the provision for losses associated with mortgage servicing Mortgage servicing The collection of monthly payments and penalties, record keeping, payment of insurance and taxes, and possible settlement of default , involved with a mortgage loan. rights ("MSR MSR Microsoft Research MSR Montserrat (ISO Country code) MSR Mountain Safety Research (outdoor goods manufacturer) MSR Magnetic Stripe Reader MSR Egyptair (ICAO code) ") resulting in a $25,000 positive impact to earnings from 2004. Non-interest expenses were $2,581,000 in the first three months of 2005 compared to $2,488,000 for the same period of 2004. The increase in the first three months of 2005 is primarily due to occupancy and equipment expense increasing to $255,000 from $197,000 due to higher depreciation expense in the first quarter of 2005 due to the Salem, NH branch which was not opened until June 2004. Data processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a expense increased $21,000 in the first three months of 2005 compared to the first three months of 2004 mainly attributable to a rise in computer repairs and maintenance. Other operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. increased $71,000 during 2005 from 2004. During 2004, the Company recognized the reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. of $100,000 of legal expenses which were part of an insurance claim recovery in the amount of $197,000. Partially offsetting these expense increases were salaries and employee benefits decreasing to $1,576,000 in 2005 from $1,622,000 in 2004 due to decreases in pension and post retirement benefits. Professional fees decreased to $104,000 from $115,000 due to a reduction in legal fees associated with collection efforts. The Corporation continues to look for quality assets, seeks to maintain a low level of risk assets and seeks to grow the loan portfolio profitably. Non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. totaled $34,000 and zero at March 31, 2005 and December 31, 2004, respectively. The allowance for loan losses to total loans has decreased slightly to 1.77% at March 31, 2005 from 1.78% at December 31, 2004 as a result of growth in the loan portfolio, without a significant change in credit risk to the Company. Total assets increased to $560,613,000 at March 31, 2005 up from $518,477,000 at December 31, 2004. The increase in assets at March 31, 2005 is mainly attributable to an increase of $35,804,000 in investment securities, an increase of $3,218,000 in Federal Funds Federal Funds Funds deposited to regional Federal Reserve Banks by commercial banks, including funds in excess of reserve requirements. Notes: These non-interest bearing deposits are lent out at the Fed funds rate to other banks unable to meet overnight reserve sold, $1,642,000 in loan growth and $1,794,000 increase in Federal Home Loan Bank stock. The funding for these assets came primarily from deposit growth and increased Federal Home Loan Bank Advances of $2,767,000 and $39,626,000, respectively in 2005. Total deposits at March 31, 2005 were $301,873,000 up from $299,106,000 at December 31, 2004. The change from December 31, 2004 is due primarily to increases in demand deposit accounts of $2,176,000, savings accounts Savings Account A deposit account intended for funds that are expected to stay in for the short term. A savings account offers lower returns than the market rates. Notes: of $1,856,000 and NOW accounts of $1,028,000 partially offset by a decrease in money market investment accounts of $2,693,000. At March 31, 2005, the Company's stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. was $58,004,000 as compared to $57,838,000 at December 31, 2004. The increase during 2005 reflects net income of $859,000, a tax benefit associated with the exercise of stock options of $196,000 and proceeds from the exercise of stock options of $270,000. Offsetting these increases were the declaration of cash dividends to shareholders of $613,000 and a decrease in the market values of securities available for sale (net of taxes) of $546,000. The Corporation's leverage ratio decreased to 10.91% at March 31, 2005 from 11.25% at December 31, 2004 as a result of average quarterly assets increasing due to the purchase of investment securities during the first quarter 2005. The Corporation exceeds all regulatory minimum capital ratio requirements as defined by the Federal Reserve Bank as of and for all periods presented. The Bank exceeds all regulatory minimum capital ratio requirements as defined by the FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). as of and for all periods presented. Lawrence Savings Bank savings bank, financial institution that, until recently, performed only the following functions: receiving savings deposits of individuals, investing them, and providing a modest return to its depositors in the form of interest. , the Company's wholly-owned subsidiary, is a Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. chartered savings bank organized in 1868 and
headquartered at 30 Massachusetts Avenue Massachusetts Avenue may refer to:
North Andover was first settled in 1646 and was officially incorporated in 1855. , approximately 25 miles north of downtown Boston. Lawrence Savings Bank operates 5 banking offices in Massachusetts in Andover, Lawrence, Methuen, and North Andover and 1 banking office in Salem, New Hampshire Salem is a town in Rockingham County, New Hampshire, United States. The population was 28,112 at the 2000 census. Salem is a marketing and distributing center, with several colleges, recreation attractions and a large shopping mall, the Mall at Rockingham Park. . Go to www.LawrenceSavings.com for all your Internet Banking needs. Please visit it today. Lawrence Savings Bank is an Equal Housing Lender The terms Equal Housing Lender and Equal Opportunity Lender are synonymous and refer to all FDIC insured banks in the United States. Such banks are prohibited from discriminating on the basis of race, color, religion, national origin, sex, handicap, or familial status. and member, FDIC and DIFM DIFM Do It for Me (as opposed to Do It Yourself) DIFM Due-In From Maintenance DIFM Digital Instantaneous Frequency Measurement DIFM Distributed Interactive Fire Mission . This press release may contain certain statements that are "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. . Such statements are not historical facts and include expressions of management's expectations at a specific point in time regarding future relationships, structures, opportunities and market conditions. Such expectations may or may not be realized, depending on a number of variable factors, including but not limited to, changes in interest rates or in the relationships between long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. and short-term rates, disruptions in credit markets, changes in regional and local economic conditions, changes in local housing markets, changes in the regulatory environment including regulatory compliance costs, changes in technology and changes in the competitive environment in which the Company operates. As a result of such risks and uncertainties, the Company's actual results may differ materially from such forward-looking statements. The Company does not undertake, and specifically disclaims any obligation to publicly release revisions to any such forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date of such statement.
LSB CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET(1)
(In thousands, except per share data)
March 31, Dec. 31,
2005 2004
--------- ---------
Loans $234,452 232,810
Allowance for loan losses (4,139) (4,140)
Investments held to maturity 238,659 200,264
Investments available for sale 60,448 63,039
Federal Home Loan Bank stock 9,681 7,887
Federal funds sold 3,427 209
Other assets 18,085 18,408
--------- ---------
Total assets $560,613 $518,477
========= =========
Deposits $301,873 $299,106
Borrowed funds 196,889 157,263
Other liabilities 3,847 4,270
Stockholders' equity 58,004 57,838
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Total liabilities and stockholders' equity $560,613 $518,477
========= =========
Book value per share $ 13.23 $ 13.33
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Select financial ratios: March 31, Dec. 31,
2005 2004
--------- ---------
Capital ratios:
Stockholders' equity to total assets ratio 10.35% 11.16%
Risk-based ratio
Leverage ratio 10.91% 11.25%
Total capital ratio 19.44% 19.63%
Asset quality ratios:
Allowance for loan losses to loans 1.77% 1.78%
Risk assets to total assets 0.01% 0.00%
Risk assets:
Non-performing loans $ 34 $ --
Other real estate owned -- --
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Total risk assets $ 34 $ --
========= =========
CONDENSED CONSOLIDATED INCOME STATEMENT(1)
(In thousands, except share data)
Three months ended
-----------------------
March 31, March 31,
2005 2004
----------- -----------
Interest income $ 6,109 $ 5,442
Interest expense 2,555 2,019
----------- -----------
Net interest income 3,554 3,423
Provision (credit) for loan losses -- --
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Net interest income after provision (credit)
for loan losses 3,554 3,423
Non-interest income 365 322
Non-interest expense 2,581 2,488
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Net income before income taxes 1,338 1,257
Income tax expense 479 471
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Net income $ 859 $ 786
=========== ===========
Basic earnings per share $ 0.20 $ 0.18
Dilutive earnings per share $ 0.19 $ 0.18
=========== ===========
Average shares outstanding 4,365,559 4,263,637
Average diluted shares outstanding 4,532,751 4,455,979
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Three months ended
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March 31, March 31,
2005 2004
----------- ----------
Select financial ratios:
Return on average assets 0.65% 0.67%
Return on average stockholders' equity 6.02% 5.74%
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(1) Unaudited
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