Market Commentary Highlights...

If history is any guide, the disappointingly soft economic data over the past few months may soon begin to firm.

Looking back over the past 60 years, about one year after the start of every recovery a soft spot emerges.

Some closely watched indicators of growth are likely to be near the bottom of their typical soft spot-driven decline and poised for a rebound.

As the data begins to firm in the coming months, the stock market may mount a fourth quarter rally achieving the modest single-digit returns we have forecast for 2010.

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Lincoln Savings Bank and LSB Financial are pleased to provide the above Market Commentary for the week of August 23, 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. http://www.mylsb.com/

Economic Commentary Highlights...

• This week’s batch of economic indicators in the United States is unlikely to settle the great double-dip recession debate.
• Last week’s economic data in the United States was again a mixed bag, while growth in some parts of the world continues to be strong enough to warrant interest rate hikes.

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Lincoln Savings Bank and LSB Financial are pleased to provide the above Economic Commentary for the week of August 16, 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...

In the first quarter, the markets were focused on a slowdown in China, in the second quarter the concern moved to a slowdown in Europe, and in the third quarter the growth scare has shifted to
the United States. In each of the prior quarters, markets made their low at the midpoint of the
quarter as a policy announcement turned the tide on investor sentiment.

It appears that the Fed missed the opportunity to turn sentiment around with their mid-quarter
policy announcement last week. Without a potent policy driver, the fear surrounding the U.S. outlook may not dissipate as quickly this quarter as it did during the first two quarters of the year and linger into the fourth quarter.

The mid-quarter policy driver during the fourth quarter may be the mid-term elections held in
November. This event may be potent enough to turn sentiment around and produce gains for the year in line with our forecast for modest single-digit gains.

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 August 16, 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

Market Commentary Highlights...

• A catalyst for a late year rally could be the upcoming mid-term elections.
• The market’s reaction to mid-term elections has almost always been positive, with fourth quarter gains averaging 8% in mid-term election years.
• So far, the stock market performance in 2010 has tracked the typical pattern for U.S. stocks in midterm election years, albeit with a bit more than the usual volatility.

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Lincoln Savings Bank and LSB Financial are pleased to provide the above Market Commentary for the week of August 2, 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. http://www.mylsb.com/

Economic Commentary Highlights...

• The July ISM report and the July jobs report bookend an extremely busy week for U.S. economic data.
• The economic data released in the United States last week was mixed; the data in Europe was solid, and resource-based central banks continued tightening monetary policy last week.

View the entire economic commentary. (pdf format)

Lincoln Savings Bank and LSB Financial are pleased to provide the above Economic Commentary for the week of August 2, 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/