SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549



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FORM 10-QSB

|[X]   |  | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE               
             SECURITIES EXCHANGE ACT OF 1934
|----- |  | -------------------------------------------------------------------------------------------------------------
|      |  | For the quarterly period ended March 31, 2001                                                                
|[   ] |  | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE             
                      EXCHANGE ACT           
|      |  | 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(State or other jurisdiction ofIncorporation or organization)        |  | 35-1934975(I.R.S. EmployerIdentification No.)
|--------------------------------------------------------------------------- |  | ---------------------------------------------
|101 Main Street, Lafayette, Indiana(Address or principal executive offices) |  | 47902(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 MAY 1, 2001
|-------------------------------------- |  | --------------------------
|Common stock, par value $.01 per share |  | 1,391,096                 

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

LSB FINANCIAL CORP.

INDEX

|PART I.                                                    | FINANCIAL INFORMATION                               | 1  
|---------------------------------------------------------- | --------------------------------------------------- | ---
|Item 1.                                                    | Financial Statements                                | 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                                   | 11 
|                                                           | SIGNATURES                                          | 12 
|                                                           | EXHIBIT INDEX                                       | 13 

|LSB FINANCIAL CORP.STATEMENTS OF FINANCIAL CONDITION(Dollars in thousands)
|--------------------------------------------------------------------------
|                                                                          
|                                                                          
|                                                                          
|Assets                                                                    
|                                                                          
|Cash and due from banks                                                   
|Short-term investments                                                    
|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, 2000                                                                           
|Exercise of stock options                                                                            
|ESOP shares earned                                                                                   
|RRP expense                                                                                          
|Retired RRP shares                                                                                   
|Dividends paid                                                                                       
|Comprehensive income                                                                                 
|Net income                                                                                           
|Change in unrealized gain/(loss)                                                                     
|Total comprehensive income                                                                           
|                                                                                                     
|Balance at March 31, 2000                                                                            
|                                                                                                     
|                                                                                                     
|                                                                                                     
|Balance at January 1, 2001                                                                           
|Exercise of stock options                                                                            
|ESOP shares earned                                                                                   
|RRP expense                                                                                          
|Dividends paid                                                                                       
|Comprehensive income                                                                                 
|Net income                                                                                           
|Change in unrealized gain/(loss)                                                                     
|Total comprehensive income                                                                           
|                                                                                                     
|Balance at March 31, 2001                                                                            
|                                                                                                     

|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 provided by 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 (used in) provided by 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                                                  
|Dividends paid                                                            
|Stock options exercised                                                   
|Net cash provided by financing activities                                 
|                                                                          
|Net change in cash and equivalents                                        
|Cash and equivalents at January 1                                         
|                                                                          
|Cash and equivalents at March 31                                          
|                                                                          
|See accompanying notes                                                    

LSB FINANCIAL CORP.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2001

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,**
|--------------------------------------------------------------------- | ---------------------------
|                                                                      | **2000**                   
|Weighted average shares outstanding  (excluding unearned ESOP shares) | 1,311,535                  
|Shares used to compute diluted  earnings per share                    | 1,338,262                  
|Earnings per share                                                    | $0.41                      
|Diluted earnings per share                                            | $0.41                      

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

**Financial Condition**

***Comparison of Financial Condition at March 31, 2001 and December 31, 2000.***

Our total assets increased $9.9 million during the three months from December 31, 2000 to
March 31, 2001.  This increase was primarily due to a $7.9 million increase in short term
investments and a $1.7 million increase in cash and due from banks.  Total loans remained stable
as lower interest rates increased the number of borrowers refinancing to fixed rate loan  products
which we sell on the secondary market as part of our interest rate risk strategy.  This increase was
funded by an $8.7 million increase in deposits which management attributes to ongoing marketing
efforts and as the return and the safety of bank deposits compared favorably with other non-deposit
investment products.  Non-performing and restructured loans increased from $984,000 at December
31, 2000 to $1.6 million at March 31, 2001 due primarily to the addition of $637,000 in loans on
one-to-four family residences and an $82,000 increase in loans on land offset by a $77,000 decrease
in consumer loans.  Shareholders' equity increased from $21.8 million at December 31, 2000 to
$22.2 million at March 31, 2001, an increase of  $479,000 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, 2001 and March 31,
2000.***

***General.***** Net income for the three months ended March 31, 2001 was $515,000, a decrease
of $29,000 or 5.33% from net income of $544,000 for the three months ended March 31, 2000.  This
decrease was primarily due to a $217,000 increase in noninterest expense primarily associated with
a CEO search and a payroll process change associated with the quarter ended March 31, 2001, which
were generally non-recurring in nature and affected the comparability of the periods, and partially
offset by a $119,000 increase in noninterest income.

***Net Interest Income.*****  Net interest income for the three months ended March 31, 2001
increased $37,000, or 1.78% over the same period in 2000. This increase was primarily due to
increased volume as the average of net  interest-earning assets increased from $10.9 million for the
first quarter of 2000 to $12.4 million for the first quarter of 2001, largely offset by a decrease in net
interest margin (net interest income divided by average interest-earning assets) from  3.42% for the
three months ended March 31, 2000 to 3.11% for the three months ended March 31, 2001.

Interest income on loans increased $639,000 or 13.94% for the three months ended March
31, 2001 compared to the same three months in 2000.  This increase was primarily the result of a
$23.5 million increase in average loans outstanding due to an active residential real estate market

through much of 2000 owing to a strong local economy as well as a continuing focus on
commercial and consumer loan production, augmented by an increase in the average yield on loans,
from 8.15% for the first three months of 2000 to 8.40% for the first three months on 2001, as
interest rates in the economy increased over most of that period.

Interest earned on other investments and Federal Home Loan Bank stock increased by $32,000 for the three months ended March 31, 2001 compared to the same period in 2000.  This was
the result of an overall $5.4 million increase in the average balance of other investments and Federal
Home Loan Bank stock, partially offset by a decrease in the average yield from 4.92% for the first
quarter of 2000 to 4.41% over the same period in 2001.  The yield decrease was generally due to the
temporary increase in lower yielding short-term investments as the increase in deposits and the funds
received from the sale of fixed rate loans is gradually moved into longer term loans or investments.

Interest expense for the three months ended March 31, 2001 increased $634,000 or 23.10%
over the same period in 2000.   This increase was primarily due to an increase of $27.4 million in
average interest-bearing liabilities, consisting of an additional $16.4 million in the average balance
of customer deposit accounts and an $11.0 million increase in the average balance of  Federal
Home Loan Bank advances drawn to fund loan demand primarily in 2000.  The average rate paid
on interest bearing liabilities increased from 4.64% for the first quarter of 2000 to 5.12% for the
first quarter of 2001 as interest rates generally increased 1.0% in 2000 before dropping 1.5% in
the first three months of 2001.

***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 both 2000 and 2001 as a result of analyzing our current loan portfolios.  There
were $984,000 of non-performing and restructured loans at March 31, 2000 compared to $1.6
million of non-performing and restructured loans at March 31, 2001.  The $1.6 million in non-performing loans at March 31, 2001 were comprised of $1.0 million of loans on 1-4 family
residences, $508,000 in loans on land or commercial property and $42,000 in consumer loans.  At
March 31, 2001, our allowance equaled 0.43% of net loans receivable compared to 0.41% at March
31, 2000.

***Non-Interest Income.*** Non-interest income for the three months ended March 31, 2001
increased by $119,000, or 45.25%, compared to the same period in 2000.  This was primarily due
to a $79,000 increase in the gain on the sale of mortgage loans in the secondary market resulting
from the increased sales activity, supplemented by a $41,000 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, 2001
increased $217,000 over the same period in 2000, due primarily to a $179,000 increase in salaries
and benefits and a $20,000 increase in occupancy expenses.  The increase in salaries and benefits
included merit increases, costs related to the hiring of a senior executive in anticipation of the
expected retirement of the current CEO, a change in the payroll process in 2000 which resulted in
the first quarter of 2000 having one fewer payroll period than in prior years, and for which we now
accrue throughout the year, and an increase in full-time equivalents due to the planned opening of
a new branch in April, 2001.

***Income Tax Expense.*** Our income tax provision decreased by $32,000 for the quarter
ended March 31, 2001 compared to the quarter ended March 31, 2000 primarily due to the
decrease 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.

Our current internal policy for liquidity is 6% to 8%. Our liquidity ratios at December 31,
2000 and March 31, 2001 were 9.41% and 10.33%, respectively. We  expect the liquidity level
to decline as short term investment are used to repay  Federal Home Loan Bank advances or are used
to fund loans or longer term deposits.

***Capital Resources.*****  Shareholders' equity totaled $22.2 million at March 31, 2001 compared
to $21.8 million at December 31, 2000, an increase of $479,000 or 2.20%, due to net income of
$515,000, offset by $139,000 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, 2001 our capital ratios were as follows:

|                 | Amount(000) | Percent ofApplicable assets
|---------------- | ----------- | ---------------------------
|Tangible Capital | $21,146     | 7.25%                      
|Requirement      | $4,377      | 1.50%                      
|Excess           | $16,769     | 5.75%                      
|                 |             |                            
|Core capital     | $21,146     | 7.25%                      

|                   | Amount(000) | Percent ofApplicable assets
|------------------ | ----------- | ---------------------------
|Requirement        | $11,672     | 4.00%                      
|Excess             | $9,474      | 3.25%                      
|                   |             |                            
|Risk-based capital | $22,181     | 11.29%                     
|Requirement        | $15,722     | 8.00%                      
|Excess             | $6,459      | 3.29%                      

**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

- 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 its 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 4, 2001 | /s/ JOHN W. COREY       John W. Corey, President       (Principal Executive Officer)               
|Date May 4, 2001 | /s/ MARY JO DAVID       Mary Jo David, Treasurer       (Principal Financial and Accounting Officer)

******INDEX TO EXHIBITS**

|RegulationS-B ExhibitNumber | Document                                                                                                                                                                                                                                 
|--------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|3                           | Articles of Incorporation and Bylaws, filed on September 21, 1994 as exhibits to
Registrant's Registration Statement on Form S-1 (File No. 33-84266), are
incorporated by reference.                                                     
|4                           | Registrant's Specimen Stock Certificate, filed on September 21, 1994 as exhibits
to Registrant's Registration Statement on Form S-1 (File No. 33-84266), is
incorporated by reference.                                                   
|10.1                        | Registrant's 1995 Stock Option and Incentive Plan, filed on July 11, 1995 as
Appendix A to  Registrant's  Proxy Statement on Schedule 14A (File No. 0-25070), is incorporated herein by reference.                                       
|10.2                        | Severance Agreement by and between the Registrant's operating subsidiary and
John W. Corey, filed on September 21, 1994 as exhibits to Registrant's
Registration Statement on Form S-1 (File No. 33-84266), is incorporated by
reference.
|10.3                        | Registrant's 1995 Recognition and Retention Plan, filed on July 11, 1995 as
Appendix B to  Registrant's  Proxy Statement on Schedule 14A (File No. 0-25070), is incorporated herein by reference.                                        
|11                          | Statement re computation of per share earnings