LSB Financial Corp. reported net income of $0.53 million, or $0.34 per diluted share, in the first quarter of 2010. The bank earned net income of $0.30 million, or $0.20 per diluted share, in the same quarter of 2010.

Management of LSB Financial Corp attributed the strong improvement in earnings to cost control efforts that more than offset the fall in interest income that the bank received.

Randolph F. Williams, the CEO of LSB Financial Corp, said, “The fundamentals of the bank are strong as seen in the 23.5% increase in net interest income and a 5.3% reduction in non-interest expenses. While interest income for the first quarter of 2010 actually fell $302,000 compared to the same period in 2009, that decrease was more than offset by an $863,000 decrease in interest expense.”

LSB Financial Corp has navigated the recession better than some of its peers. The bank had a Tier One capital ratio of 9.21% as of the end of the first quarter of 2010. LSB Financial did see a large jump in non-performing assets on a sequential basis, which increased to $18.9 million, or 5.1% of total assets. This was up from $14.5 million or 3.91%, at 12/31/2009.

LSB Financial Corp is a bank holding company that owns Lafayette Savings Bank, a federal savings bank located in Louisiana. The bank had total assets of $371 million, and deposits of $290 million as of 3/31/2010.