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Banking industry

LSB Bancshares Reports Strong First Quarter Earnings and Progress on Year 2000 Initiative

Strategic Insights

— 1 min read

LSB Bancshares, Inc., the parent company of Lexington State Bank, reported significant increases in earnings and deposits for the first quarter of 1999, with net income reaching $2,258,000, or $.26 per diluted share, a 30% increase from the same period in 1998. The bank's total assets, deposits, and loans also showed notable growth, with total assets increasing by 7.4% and deposits and loans rising by 10.0% and 12.4%, respectively, compared to March 31, 1998. The company's chairman, Robert F. Lowe, emphasized the importance of addressing the Year 2000 issue, stating that disruptions in operations could occur if project goals are not met on a timely basis.

Key Takeaways:

  • LSB Bancshares reported a 30% increase in earnings per share in the first quarter of 1999, compared to the same period in 1998.
  • The bank's total assets, deposits, and loans showed significant growth, with total assets increasing by 7.4%, deposits rising by 10.0%, and loans increasing by 12.4% compared to March 31, 1998.
  • The reserve for loan losses was 1.15% of loans, and shareholders' equity totaled $71,985,000 at the end of the first quarter, representing a book value of $8.35 per share.
  • LSB Bancshares has implemented a contingency plan to address the Year 2000 issue, with a goal of having its systems Year 2000 ready by June 30, 1999.
  • The company has also committed to contributing to the Lexington community through the construction of a Habitat for Humanity home.

Statistics:

  • Net income for the three months ended March 31, 1999: $2,258,000
  • Earnings per share (diluted): $.26
  • Return on average assets (annualized): 1.35%
  • Return on average shareholders' equity (annualized): 12.52%
  • Total assets (as of March 31, 1999): $687,193,000
  • Total deposits (as of March 31, 1999): $578,244,000
  • Total loans (as of March 31, 1999): $451,411,000
  • Reserve for loan losses (as of March 31, 1999): $5,174,000
  • Shareholders' equity (as of March 31, 1999): $71,985,000
  • Book value per share: $8.35

Sources:

  • LSB Bancshares, Inc. press release, April 16, 1999
  • Business Wire, April 16, 1999

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