Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On February 23, 2009, the Board of Directors of LSB Financial Corp. (the "Company") accepted the resignation of Peter Neisel as a director of the Company effective as of the conclusion of the Company's Annual Meeting of Shareholders to be held April 15, 2009. Mr. Neisel has been a member of the Board of Directors of the Company since 1990. Mr. Neisel, who is 70 years of age, is retiring because the Company's bylaws require directors to retire as of the annual shareholder meeting that next follows the director's attainment of age 70.