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LSB Bancshares earnings drop sharply during Q4, year

LSB Bancshares, the Lexington-based parent company of Lexington State Bank, announced Monday that fourth quarter earnings dropped 86 percent year-over-year due a series of credit write-downs, lower non-interest income and higher expenses.

The company reported $338,000 in earnings for the fourth quarter, compared to $2.5 million during the same period of 2005. The bank's annual earnings were $6 million, down 37 percent from $9.6 million the year before.

"The year 2006 was a challenging one for LSB Bancshares," Robert Lowe, the bank's chairman, president and chief executive officer, said in a news release. "While we are obviously disappointed with the write-downs and the decline in earnings, we have taken a number of steps to together our credit discipline and to position the bank for stronger results going forward."

As of Dec. 31, the bank's total assets were $986 million, up 1 percent from a year before but by about $6 million from the end of the third quarter.

The bank's assets totaled $986 million at the end of the year, down $6 million from the end of the third quarter.

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