SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



---

FORM 10-QSB

[X]                     	       	QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE



For the quarterly period ended March
31, 2000

[   ]                            		TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE

For the transition period from ______ to ________

Commission file number 0-25070.

**LSB FINANCIAL CORP.**

(Exact Name of Small Business Issuer as Specified in its Charter)

|Indiana                                                       | 35-1934975                         
|------------------------------------------------------------- | -----------------------------------
|(State or other jurisdiction ofIncorporation or organization) | (I.R.S. EmployerIdentification No.)

|101 Main Street, Lafayette, Indiana      | 47902     
|---------------------------------------- | ----------
|(Address or principal executive offices) | (Zip Code)

Issuer's telephone number, including area code: (765) 742-1064

State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date:

|CLASS                                  | OUTSTANDING AT APRIL 18, 2000
|-------------------------------------- | -----------------------------
|Common stock, par value $.01 per share | 1,379,331                    

Transitional Small Business Disclosure Format:	YES [   ]    NO [X]

LSB FINANCIAL CORP.

INDEX

PART I.       	FINANCIAL INFORMATION..........................................................................   1

Item 1.         	Financial Statements (Unaudited).......................................................................   1

Consolidated Statements of Financial Condition .................................................................... 1

Consolidated Statements of Income.........................................................................................  2
Consolidated Statements of Changes in Shareholders' Equity.................................................  3

Consolidated Statements of Cash Flow....................................................................................  4

Notes to Consolidated Financial Statements............................................................................  5

Item 2.	       Management's Discussion of Recent Operating Results....................................  6-8

Disclosure Regarding Forward-looking Statements .............................................9

PART II.    	OTHER INFORMATION...................................................................................  10

SIGNATURES.....................................................................................................  11

EXHIBIT INDEX.................................................................................................  12

|LSB FINANCIAL CORP.                               
|--------------------------------------------------
|STATEMENTS OF FINANCIAL
CONDITION                 
|(Dollars in thousands)                            
|                                                  
|                                                  
|Assets                                            
|                                                  
|Cash and cash equivalents                         
|Available-for-sale securities                     
|Loans held for sale                               
|Total loans                                       
|Less: Allowance for loan losses                   
|Net loans                                         
|                                                  
|Premises and equipment, net                       
|FHLB stock, at cost                               
|Accrued interest receivable and other assets      
|Total Assets                                      
|                                                  
|Liabilities and Shareholders' Equity              
|                                                  
|Liabilities                                       
|Deposits                                          
|Advances from FHLB                                
|Note payable                                      
|Accrued interest payable and other liabilities    
|Total liabilities                                 
|                                                  
|                                                  
|Shareholders' Equity                              
|Common stock                                      
|Additional paid-in-capital                        
|Retained earnings                                 
|Unearned ESOP shares                              
|Unamortized cost of recognition and retention plan
|Accumulated other comprehensive income            
|Total shareholders' equity                        
|Total liabilities and shareholders' equity        
|                                                  
|                                                  
|                                                  
|See accompanying notes                            

|LSB FINANCIAL CORP.STATEMENTS OF INCOME(Dollars in thousands, except per share
data)
|------------------------------------------------------------------------------------
|                                                                                    
|                                                                                    
|                                                                                    
|                                                                                    
|Interest Income                                                                     
|Loans, including related fees                                                       
|Available-for-sale securities                                                       
|FHLB stock                                                                          
|Total interest income                                                               
|                                                                                    
|Interest Expense                                                                    
|Deposits                                                                            
|Borrowings                                                                          
|Total interest expense                                                              
|                                                                                    
|Net interest income                                                                 
|Provision for loan losses                                                           
|Net interest income after provision for loan losses                                 
|                                                                                    
|Noninterest Income                                                                  
|Service charges and fees                                                            
|Net gain on mortgage loans originated for sale                                      
|Gain on sale of securities                                                          
|Other income                                                                        
|Total noninterest income                                                            
|                                                                                    
|Noninterest Expense                                                                 
|Salaries and benefits                                                               
|Occupancy and equipment, net                                                        
|Computer service                                                                    
|Advertising                                                                         
|Other                                                                               
|Total noninterest expense                                                           
|                                                                                    
|Income before income taxes                                                          
|Less: income taxes                                                                  
|Net income                                                                          
|                                                                                    
|Earnings per share                                                                  
|Diluted Earnings per share                                                          
|Book value per share                                                                
|                                                                                    
|See accompanying notes                                                              

|LSB FINANCIAL CORP.               
|----------------------------------
|CONSOLIDATED STATEMENTS OF CHANGES
|IN SHAREHOLDERS' EQUITY           
|(Dollars in thousands)            
|                                  
|                                  
|Balance at January 1, 1999        
|Exercise of stock options         
|ESOP shares earned                
|RRP expense                       
|Treasury stock acquired           
|Dividends paid                    
|Comprehensive income              
|Net income                        
|Change in unrealized gain/(loss)  
|Total comprehensive income        
|                                  
|Balance at March 31, 1999         
|                                  
|                                  
|                                  
|Balance at January 1, 2000        
|Exercise of stock options         
|ESOP shares earned                
|RRP expense                       
|Retired RRP shares                
|Treasury stock acquired           
|Dividends paid                    
|Comprehensive income              
|Net income                        
|Change in unrealized gain/(loss)  
|Total comprehensive income        
|                                  
|Balance at March 31, 1999         
|                                  
|See accompanying notes            

|LSB FINANCIAL
CORP.                                                       
|--------------------------------------------------------------------------
|STATEMENTS OF CASH
FLOWS                                                  
|(Dollars in thousands)                                                    
|                                                                          
|                                                                          
|                                                                          
|Cash Flows from Operating Activities                                      
|Net Income                                                                
|Adjustments to reconcile net income to net  cash from operating activities
|Depreciation and amortization                                             
|Net amortization/(accretion) on securities                                
|Gain on sale of securities                                                
|Gain on sale of loans                                                     
|Loans originated for sale, net of sales proceeds                          
|Provision for loan losses                                                 
|Employee stock ownership plan shares earned                               
|Change in assets and liabilities                                          
|Accrued interest receivable and other assets                              
|Accrued interest payable and other liabilities                            
|Net cash from operating activities                                        
|                                                                          
|Cash Flows from Investing Activities                                      
|Purchases of available-for-sale securities                                
|Proceeds from paydowns and maturities of  available-for-sale securities   
|Sales of available-for-sale securities                                    
|Purchase of Federal Home Loan Bank stock                                  
|Loans made to customers net of payments received                          
|Property and equipment expenditures                                       
|Net cash from investing activities                                        
|                                                                          
|Cash Flows from Financing Activities                                      
|Net change in deposits                                                    
|Proceeds from Federal Home Loan Bank advances                             
|Payments on Federal Home Loan Bank advances                               
|Payments on note payable                                                  
|Treasury Stock Purchased                                                  
|Dividends paid                                                            
|Stock options exercised                                                   
|Net cash from financing activities                                        
|                                                                          
|Net change in cash and equivalents                                        
|Cash and equivalents at January 1                                         
|                                                                          
|Cash and equivalents at March 31                                          
|                                                                          
|See accompanying notes                                                    



Note 1 - General

The financial statements were prepared in accordance with the instructions for Form 10-QSB and,
therefore, do not include all of the disclosures necessary for a complete presentation of financial
position, results of operations and cash flows in conformity with generally accepted accounting
principles.  These interim financial statements have been prepared on a basis consistent with the
annual financial statements and include, in the opinion of management, all adjustments, consisting
of only normal recurring adjustments, necessary for a fair presentation of the results of operations
and financial position for and at the end of such interim periods.

Note 2 - Principles of Consolidation

The accompanying financial statements include the accounts of LSB Financial Corp., its wholly
owned subsidiary Lafayette Savings Bank, FSB and Lafayette Savings' wholly owned subsidiaries,
LSB Service Corporation and Lafayette Insurance and Investments, Inc.  All significant
intercompany transactions have been eliminated upon consolidation.



Note 3 - Earnings per share

Earnings per share are based upon the weighted average number of shares outstanding during the
period.  Diluted earnings per share further assume the issuance of any potentially dilutive shares.
Unearned ESOP shares are not considered to be outstanding for the earnings per share computation.
The following table presents information about the number of shares used to compute earnings per
share and the results of the computations:

|                                                                          | **Quarter ended March 31,**
|------------------------------------------------------------------------- | ---------------------------
|                                                                          | **1999**                   
|Weighted average shares outstanding   

 (excluding unearned ESOP shares) | 1,297,169                  
|Shares used to compute diluted   

 earnings per share                    | 1,347,154                  
|Earnings per share                                                        | $0.31                      
|Diluted earnings per share                                                | $0.30                      

**MANAGEMENT'S DISCUSSION OF RECENT OPERATING RESULTS**

**Financial Condition**



***Comparison of Financial Condition at March 31, 2000 and December 31, 1999.*****

Our total assets increased $2.9 million during the three months from December 31, 1999 to
March 31, 2000.  This increase was primarily due to a $3.8 million increase in our loan portfolio,
partially offset by a $668,000 decrease in cash and cash equivalents, as we continued our efforts to
grow by aggressively seeking to attract new residential mortgage borrowers and to increase the size
of our higher-yielding  multi-family, commercial real estate, land and land development  and
consumer loan portfolios. Cash and cash equivalents and investment securities decreased $899,000.
We used a $7.0 million increase in deposits to fund loan growth and repaid a $5.0 million Federal
Home Loan Bank advance which had been put in place as part of our year 2000 preparation. Non-performing loans decreased from $993,000 at December 31, 1999 to $810,000 at March 31, 2000.
Shareholders' equity increased from $19.8 million at December 31, 1999 to $20.3 million at March
31, 2000, an increase of  $457,000 due primarily to net income partially offset by the payment of a
cash dividend.

**Results of Operations**

***Comparison of Operating Results for the Three Months Ended March 31, 2000 and March 31,
1999.***

***General.***** Net income for the three months ended March 31, 2000 was $544,000, an increase
of $144,000 or 36.00% from net income of $400,000 for the three months ended March 31, 1999.
This increase was due to a $245,000 increase in net interest income partially offset by a $66,000
increase in taxes.

***Net Interest Income.*****  Net interest income for the three months ended March 31, 2000
increased $245,000, or 13.10% over the same period in 1999. This increase was primarily volume
driven due to management's success in growing the balance sheet.  Our net interest margin (net
interest income divided by average interest-earning assets) increased from  3.23% for the three
months ended March 31, 1999 to 3.42% for the three months ended March 31, 2000.  The increase
in margin was accompanied by increased volume as average interest-earning assets increased from
$231.5 million for the first quarter of 1999 to $247.5 million for the first quarter of 2000.

Interest income on loans increased $423,000 or 10.16% for the three months ended March
31, 2000 compared to the same three months in 1999, primarily the result of an increase of $20.1
million in average loans outstanding.  This increase was primarily due to an active residential real
estate market through much of 1999 due to continued low interest rates, a strong local economy,
and a continuing focus on commercial and consumer loan production.  This increase in interest
income was also slightly attributable to an increase in the average yield on loans from 8.12% for the
first three months of 1999 to 8.15% for the first three months on 2000, as interest rates have started
to increase.

Interest earned on other investments and Federal Home Loan Bank stock decreased by
$9,000 for the three months ended March 31, 2000 compared to the same period in 1999.  This was
the result of an overall $4.1 million decrease in the average balance of other investments and Federal
Home Loan Bank stock, partially offset by an increase in the average yield from 4.27% for the first
quarter of 1999 to 4.92% over the same period in 2000.  The yield increase was generally due to our
replacing the short-term investments purchased early in 1999 with longer term, higher yielding
investments.

Interest expense for the three months ended March 31, 2000 increased $169,000 or 6.56%
over the same period in 1999.   This increase was primarily due to an increase of $15.0 million in
average interest-bearing liabilities, consisting of an additional $13.4 million in the average balance
of customer deposit accounts and a $1.6 million increase in the average balance of  Federal Home
Loan Bank advances drawn to fund loan demand.  The average rate paid on interest bearing
liabilities decreased slightly from 4.65% for the first quarter of 1999 to 4.64% for the first quarter
of 2000.

***Provision for Loan Losses***.  We establish our provision for loan losses based on a
systematic analysis of risk factors in the loan portfolio.  The analysis includes evaluation of
concentration of credit, past loss experience, current economic conditions, the amount and
composition of the loan portfolio, estimated fair value of the underlying collateral, loan
commitments outstanding, delinquencies and industry standards.  From time to time, management
also uses the services of a consultant to assist in the evaluation of its growing multi-family and
commercial real estate loan portfolio.  Management's analysis results in the allocations of
allowance amounts for each loan type. We recorded a $36,000 provision for loan losses during
the three months of 2000 as a result of analyzing our current loan portfolios.  This compares to
a $30,000 provision for the first quarter of 1999.  There were $810,000 of non-performing and
restructured loans at March 31, 2000 compared to $814,000 of non-performing or restructured loans
at March 31, 1999 (excluding the $2.1 million of Bennett Funding Group leases of which $1.4
million was recovered and $671,000 was written off against loan loss reserves in December, 1999).
At March 31, 2000, our allowance equaled 0.41% of net loans receivable compared to 0.76% at
March 31, 1999.

***Non-Interest Income*****.  Non-interest income for the three months ended March 31, 2000
decreased by $28,000, or 9.62%, compared to the same period in 1999.  This was primarily due to
a $55,000 decrease in the gain on the sale of mortgage loans in the secondary market resulting
from the decreased sales activity.  This decrease was partially offset by a $13,000 increase in
service charges and fees on deposit accounts due to the increased number of these accounts.

***Non-Interest Expense.***  Non-interest expense for the three months ended March 31, 2000
increased only $1,000 over the same period in 1999, with no significant changes in account
balances.

***Income Tax Expense.*** Our income tax provision increased by $66,000 for the quarter
ended March 31, 2000 compared to the quarter ended March 31, 1999 primarily due to the
increase in income before income taxes.

***Liquidity.*****	Liquidity management is both a daily and long-term function for our senior
management. We adjust our investment strategy, within the limits established by the investment
policy, based upon assessments of expected loan demand, expected cash flows, Federal Home
Loan Bank advance opportunities, market yields and objectives of our asset/liability management
program.  Base levels of liquidity have generally been invested in interest-earning overnight and
time deposits with the Federal Home Loan Bank of Indianapolis.  Funds for which a demand is
not foreseen in the near future are invested in investment and other securities for the purpose of
yield enhancement and asset/liability management.

We are required to maintain minimum levels of liquidity as defined by regulatory agencies.
The liquidity requirement, which can vary, is based upon a percentage of deposits and short term
borrowings and is currently 4.00%. Our internal policy for liquidity is 6% to 8%. Our liquidity
ratios at December 31, 1999 and March 31, 2000 were 8.79% and 9.41%, respectively. We
expect the liquidity level to decline with the maturity of short term investments acquired as part of
our year 2000 preparations.

***Capital Resources.*****  Shareholders' equity totaled $20.3 million at March 31, 2000 compared
to $19.8 million at December 31, 1999, an increase of $457,000 or 2.31%, due to net income of
$544,000, offset by $125,000 of cash dividends paid to shareholders.

Federal regulations require us to maintain certain minimum levels of regulatory capital.  The
regulations currently require that core capital be 4.0% of total assets, and that risk based capital be
at least 8.0% of risk-based assets.  At March 31, 2000 our capital ratios were as follows:

|                   | Amount(000) | Percent ofApplicable assets
|------------------ | ----------- | ---------------------------
|Tangible Capital   | $19,397.00  | 7.46%                      
|Requirement        | $3,899.00   | 1.50%                      
|Excess             | $15,498.00  | 5.96%                      
|                   |             |                            
|Core capital       | $19,397.00  | 7.46%                      
|Requirement        | $10,396.00  | 4.00%                      
|Excess             | $9,001.00   | 3.46%                      
|                   |             |                            
|Risk-based capital | $20,326.00  | 11.72%                     
|Requirement        | $13,872.00  | 8.00%                      
|Excess             | $6,454.00   | 3.72%                      

**REGARDING FORWARD-LOOKING STATEMENTS**

This document, including information included or incorporated by reference, contains, and
future filings by LSB Financial of Form 10-KSB, Form 10-QSB and Form 8-K and future oral and
written statements by LSB Financial and our management may contain, forward-looking statements
about LSB Financial and its subsidiaries which we believe are within the meaning of the Private
Securities Litigation Reform Act of 1995.  These forward-looking statements include, without
limitation, statements with respect to anticipated future operating and financial performance, growth
opportunities, interest rates, cost savings and funding advantages expected or anticipated to be
realized by management.  Words such as  "may", "could", "should", "would", "believe",
"anticipate", "estimate", "expect", "intend", "plan" and similar expressions are intended to identify
forward-looking statements.  Forward-looking statements by LSB Financial and its management are
based on beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions of
management and are not guarantees of future performance.  We disclaim any obligation to update
or revise any forward-looking statements based on the occurrence of future events, the receipt of new
information or otherwise.  The important factors we discuss below and elsewhere in this document,
as well as other factors discussed under the caption "Management's Discussion of Recent Operating
Results" in this document and identified in our filings with the SEC and those presented elsewhere
by our management from time to time, could cause actual results to differ materially from those
indicated by the forward-looking statements made in this document:

The following factors, many of which are subject to change based on various other factors
beyond our control, could cause our financial performance to differ materially from the plans,
objectives, expectations, estimates and intentions expressed in such forward-looking statements:

- the strength of the United States economy in general and the strength of the local
economies in which we conduct our operations;
- the effects of, and changes in, trade, monetary and fiscal policies and laws; including
interest rate policies of the Federal Reserve Board;
- inflation, interest rate, market and monetary fluctuations;
- the timely development of and acceptance of our new products and services of
Lafayette Savings and the perceived overall value of these products and services by
users, including the features, pricing and quality compared to competitors' products
and services;
- the willingness of users to substitute our products and services for the products and
services of our competitors;
- the  success of Lafayette Savings in gaining regulatory approval of our products and
services, when required;
- the impact of changes in financial services' laws and regulations (including laws
concerning taxes, banking, securities and insurance);
- the impact of technological changes;
- acquisitions;
- changes in consumer spending and saving habits; and
- our success at managing the risks involved in the foregoing.

**PART II - OTHER INFORMATION**

Item 1.  LEGAL PROCEEDINGS

From time to time, we are involved as plaintiff or defendant in various legal actions arising in the normal course of business.  While the ultimate outcome of these proceedings cannot be predicted with
certainty, it is the opinion of management, after consultation with counsel representing the Bank in the proceedings, that the resolution of any prior and pending proceedings should not have a material effect on our financial condition or results of
operations.

Item 2.  CHANGES IN SECURITIES

None to be reported.

Item 3.  DEFAULTS UPON SENIOR SECURITIES

None to be reported.

Item 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None to be reported.

Item 5. OTHER INFORMATION

None to be reported.

Item 6. EXHIBITS AND REPORTS ON FORM 8-K

(a)   Exhibits:

See exhibit index.

(b)   Reports on Form 8-K

None to be reported.

**SIGNATURES**

In accordance with the requirements of the Exchange Act, the Registrant has caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

|                    | LSB FINANCIAL CORP.(Registrant)                                                      
|------------------- | -------------------------------------------------------------------------------------
|                    |                                                                                      
|Date   May 11, 2000 | /s/ JOHN W. COREYJohn W. Corey, President(Principal Executive Officer)               
|                    |                                                                                      
|Date   May 11, 2000 | /s/ MARY JO DAVIDMary Jo David, Treasurer(Principal Financial and Accounting Officer)

******INDEX TO EXHIBITS**

ExhibitNumber

11              		Computation of Per Share Earnings

27              		Financial Data Schedule