Economic Commentary Highlights...

• Housing and manufacturing data will dominate early on, but the Q2 GDP report will garner most of the attention later in the week.
• The economic volatility normally associated with this stage of a recovery was evident in last week’s data, only this time the data bounced the right way.

Lincoln Savings Bank and LSB Financial are pleased to provide the above Economic Commentary for the week of July 26, 2010. The commentary is prepared by LPL FINANCIAL RESEARCH, the broker-dealer partner for Lincoln Savings Bank and LSB Financial. The above commentary and others like it can be found at www.mylsb.com/investments/commentary.aspx

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This information is being provided by Lincoln Savings Bank (LSB) / LSB Financial, an Iowa-based institution devoted to providing complete financial services since 1902. http://www.mylsb.com/

Market Commentary Highlights...

• While information on the economy, European bank stress tests, and corporate earnings helped to lift the markets last week, it may have been the hint that tax rates may not be going up as much as expected in 2011 that got investors the most excited.
• The potential for much higher tax rates on dividends and capital gains appears to be
  discounted by the market, suggesting a potential relief rally as the tax uncertainty is resolved.
• However, we do not expect Congress to act on taxes until after the November elections.

Read the entire Market Commentary. (pdf format)

Lincoln Savings Bank and LSB Financial are pleased to provide the above Market Commentary for the week of July 26, 2010. The commentary is prepared by LPL FINANCIAL RESEARCH, the broker-dealer partner for Lincoln Savings Bank and LSB Financial. This commentary and others like it can be found at www.mylsb.com/investments/commentary.aspx

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This information is being provided by Lincoln Savings Bank (LSB) / LSB Financial, an Iowa-based institution devoted to providing complete financial services since 1902. www.mylsb.com

Economic Commentary Highlights...

• Housing and leading indicators lead the way this week, along with key testimony from Federal Reserve Chairman Bernanke.
• The economic volatility normally associated with this stage of a recovery was evident in last week’s data and events.

View entire Economic Commentary (pdf format).

Lincoln Savings Bank and LSB Financial are pleased to provide the above Economic Commentary for the week of July 19, 2010. The commentary is prepared by LPL FINANCIAL RESEARCH, the broker-dealer partner for Lincoln Savings Bank and LSB Financial. The above commentary and others like it can be found at www.mylsb.com/investments/commentary.aspx

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This information is being provided by Lincoln Savings Bank (LSB) / LSB Financial, an Iowa-based institution devoted to providing complete financial services since 1902. www.mylsb.com

Market Commentary Highlights...

• Volatility in the markets may be higher not just in the near-term cyclical environment but on a longterm secular basis, as well.


• Over the past 30 years, long-term growth drivers that are now absent helped to lengthen and moderate the business cycle, including steady declines in interest rates, tax rates, and inflation. A potent driver of economic volatility in the years ahead may be the swings in fiscal and monetary policy. Investors must be well prepared to manage volatility and use it to their advantage in the years to come, since waiting it out is not an option.


• We believe thriving in volatile markets requires incorporating volatility themes into your portfolio, including: a focus on yield, utilizing volatility-thriving investments, and a tactical rebalancing approach.

Read the entire Market Commentary. (pdf format)

Lincoln Savings Bank and LSB Financial are pleased to provide the above Market Commentary for the week of July 19, 2010. The commentary is prepared by LPL FINANCIAL RESEARCH, the broker-dealer partner for Lincoln Savings Bank and LSB Financial. This commentary and others like it can be found at www.mylsb.com/investments/commentary.aspx

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This information is being provided by Lincoln Savings Bank (LSB) / LSB Financial, an Iowa-based institution devoted to providing complete financial services since 1902. www.mylsb.com

The Cedar Valley is fortunate to have a wide variety of entertainment offerings, including local sports teams and art/cultural offerings. Lincoln Savings Bank (LSB) is proud to support a number of these local organizations, including the Waterloo-Cedar Falls Symphony Orchestra (WCFSO). LSB’s core value of “passionate community stewardship” fits well with the Waterloo - Cedar Falls Symphony’s mission “to educate, entertain and enrich the listeners by presenting performances of the highest quality”.

LSB’s support of the symphony includes a sponsorship for one of the Symphony’s events every season. In November 2009, LSB sponsored the Symphony’s performance of Gustav Mahler’s music. Mike McCrary, 1st Vice President of Marketing at LSB, volunteers on the Symphony Board of Directors, and attended the Mahler performance. "As usual, director Jason Weinberger delivered on the symphony's motto ‘expect the unexpected’, bringing Mahler to life in a brand new way. I have no doubt the upcoming season will be just as thrilling".

Fans of Mahler or the WCFSO can even download a ringtone of Mahler’s Symphony no. 5, Scherzo, performed by the WCFSO from the symphony website.

• Click here to visit the newly redesigned WCFSO website and download the ringtone. http://wcfsymphony.org/mediaroom/wcfso-mahler-ringtone

For the upcoming 2010-2011 season, LSB will be sponsoring The Texas Tenors for a Holiday Pops performance on December 11, 2010 at Gallagher-Bluedorn Performing Arts Center. The Texas Tenors were featured on NBC’s America’s Got Talent last season. They deliver a show filled with a unique blend of country, gospel and classical music while also mixing in humor and cowboy charm. The holidays will be here before we know it, so get your tickets early for this performance! Individual performance tickets go on sale August 2, but WCFSO season ticket holders can order additional single tickets before they go on sale to the public during courtesy days July 19-23. Visit the symphony website for more information. http://www.wcfsymphony.org/.

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This information is being provided by Lincoln Savings Bank (LSB) / LSB Financial, an Iowa-based institution devoted to providing complete financial services since 1902. www.mylsb.com

Economic Commentary Highlights:

• The silver lining of European induced double-dip fears was evident in last week’s data.
• In sharp contrast to last week, there is a ton of economic, policy news and events for markets to digest this week.

Read the entire Economic Commentary. (pdf format)

Lincoln Savings Bank and LSB Financial are pleased to provide the above Economic Commentary for the week of July 12, 2010. The commentary is prepared by LPL FINANCIAL RESEARCH, the broker-dealer partner for Lincoln Savings Bank and LSB Financial. The above commentary and others like it can be found at www.mylsb.com/investments/commentary.aspx

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This information is being provided by Lincoln Savings Bank (LSB) / LSB Financial, an Iowa-based institution devoted to providing complete financial services since 1902. http://www.mylsb.com/

Market Commentary Highlights...

• The rebound in sentiment may have had to do, in part, with the second quarter earnings season due to kick off this week.
• While the S&P 500 has lost 11% since the peak of the stock market on April 23rd, the analyst consensus earnings expectations for S&P 500 companies over the next 12 months have been rising for every sector of the stock market.
• A silver lining of a soft labor market is that profit margins are widening, magnifying the impact of revenue growth during the quarter.
• The commitment to growth evident in the strong pace of spending by businesses during the quarter suggests that corporate leaders may reflect this improving outlook when they report their performance for the quarter and also in their guidance for future quarters.

Read the entire Market Commentary. (pdf format)

Lincoln Savings Bank and LSB Financial are pleased to provide the above Market Commentary for the week of July 12, 2010. The commentary is prepared by LPL FINANCIAL RESEARCH, the broker-dealer partner for Lincoln Savings Bank and LSB Financial. This commentary and others like it can be found at www.mylsb.com/investments/commentary.aspx

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This information is being provided by Lincoln Savings Bank (LSB) / LSB Financial, an Iowa-based institution devoted to providing complete financial services since 1902. www.mylsb.com

If you are near LSB's Tama or Aplington branches on Friday, July 9, 2010, we encourage you to stop in for our customer appreciation events:

• LSB's Tama Office, located at 241 W. 4th Street, Tama, IA, will be serving a FREE lunch from 11 AM - 2 PM. Enjoy a "Hot Dog Bar", which includes hot dogs with all the fixings- Chili, Onions, Cheese, Jalapenos, Ketchup, Mustard and Relish. There will also be chips, ice cream, monster cookies and lemonade.
• LSB's Aplington Office, located at 932 Parriott Street, Aplington, IA, will be serving FREE malts all day. Just stop in during normal business hours between 8:30 AM and 4 PM to enjoy some ice cream goodness!

We hope to have our many friends and valued customers join us for these events.

Lincoln Savings Bank (LSB) is pleased to announce we have enhanced our Mortgage capabilities! In addition to several new faces, we have added a new office and launched a new website devoted exclusively to mortgages.

• New Faces: We welcome Mike Schick, Jordan Schick, Rick Saak, and John Boyles as our newest Mortgage Bankers along with Loan Processing Supervisor Christine Rolf. They come to LSB with many years of experience and a dedication to providing exceptional service.
• New Location: The new office at 999 Home Plaza, Suite 301, in Waterloo will be the home base for our new Mortgage staff. Centrally located among all of LSB's locations, the new office provides easy access for the staff to serve LSB's entire footprint. The office number is (319) 433-3777.
• New Website: Visit http://www.lsbmortgage.com/ to view rates, apply for a mortgage loan, or just learn more about the mortgage process.

If you are considering purchasing a new home or refinancing your existing home, we are confident these changes will make LSB your first choice for your mortgage needs!

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This information is being provided by Lincoln Savings Bank (LSB) / LSB Financial, an Iowa-based institution devoted to providing complete financial services since 1902. www.mylsb.com/

Lincoln Savings Bank and LSB Financial are pleased to announce the following staff additions:

• Charla Reynolds-Davis joins Lincoln Savings Bank as Assistant Vice President, Compliance / Security Officer. As Compliance Officer, she is responsible for coordinating and maintaining the bank’s policies and procedures to ensure compliance with federal and state law and regulations. Charla has been in banking for over 25 years and was previously employed at Regions Bank as the Branch Sales Manager for the downtown Waterloo offices.
• Tammy Thies also joins Lincoln Savings Bank as Assistant Internal Auditor. As Assistant Internal Auditor, she is responsible for assisting with the development, implementation and maintenance of the internal audit programs. Tammy was previously employed with the Federal Deposit Insurance Corporation (FDIC) as a Loan Review Specialists. She is a graduate of the University of Northern Iowa and has 18 years of banking experience.
• Stephanie Saak joins Lincoln Savings Bank and LSB Financial as Administrative Assistant in the Reinbeck Office. As Administrative Assistant, she is responsible for assisting LSB’s executive personnel and to serve as corporate secretary for Lincoln Savings Bank and LSB Financial. Stephanie was previously employed at United Methodist Church in Grundy Center as the Church Secretary. She is a graduate of the University of Northern Iowa and has over 5 years of secretarial experience.

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This information is being provided by Lincoln Savings Bank (LSB) / LSB Financial, an Iowa-based institution devoted to providing complete financial services since 1902. http://www.mylsb.com/