Lincoln Savings Bank is proud to announce that our president and CEO, Steve Tscherter has been selected as a 2012 Laureate to the Junior Achievement Business Hall of Fame!  Laureates inducted into Junior Achievement of Eastern Iowa Business Hall of Fame are among the most esteemed leaders in our communities. They have experienced a lifetime of business success and have established a legacy of leadership within their industries and our communities. Through their actions and accomplishments they serve as role models for young people.

Steve Tscherter is the President and CEO of Lincoln Savings Bank (LSB) a 14 branch, Iowa based financial institution.   He joined LSB in 1979 as Senior VP and CEO.  In the fall of 1993, he was appointed President and has served on the LSB board of Directors since.  From 1995 to 1996 Steve served as the President of the Iowa Independent Bankers Association.  He also served as a board member of the IIB from 1993 to 1996 and served on the IBA Board from 1995 to 1996.  Before coming to LSB Steve was the Vice President at Iowa State Bank in West Bend, Iowa for three years.  He also worked as an FDIC bank examiner in Des Moines, Burlington and Cedar Rapids for eight years.  Steve received his junior college diploma from Grand View College and his bachelor’s degree in accounting from Drake University.

Junior Achievement helps young people recognize how their talents and abilities can create better lives for themselves and those around them. The Business Hall of Fame honors area business people who have shown, by example, the importance of achieving a high level of success both personally and professionally.

Economic Commentary Highlights...

• This week’s Federal Open Market Committee (FOMC) forecasts will likely show stronger
  Gross Domestic Product (GDP) growth for 2012 and a slightly lower (better) unemployment rate forecast.

• The inflation forecast is likely to be little changed.

• The fate of Operation Twist is still a question.

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 April 23, 2012. 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

Securities and Insurance products offered through LPL Financial and its affiliates, member FINRA / SIPC.

Not FDIC Insured	No Bank Guarantee	May Lose Value
Not a Deposit	Not Insured by any Federal Government Agency

Lincoln Savings Bank and LSB Financial are not registered broker/dealers, nor are they affiliated with LPL Financial. This site is designed for U.S. residents only. The services offered within this site are available exclusively through our U.S. Investment Representatives. LPL Financials U.S. Investment Representatives may only conduct business with residents of the states for which they are properly registered. Please note that not all of the investments and services mentioned are available in every state.

Market Commentary Highlights...

• In April, the markets seem to be suffering from a case of spring allergies. Like pollen-induced sneezes, the spasms at each of the data points have resulted in a noticeable uptick in volatility after a very quiet first quarter.

• The symptoms are not likely to clear up this week with many allergens floating around: the Fed meeting, first quarter earnings reports, key economic data, the French elections, the worsening recession in Europe, and earnings reports from Spanish banks.

• Investors’ immune systems may be hypersensitive after the past five years. But the market’s symptoms may also be signs of an oncoming illness potentially leading to a sustained pullback.

View the entire Market Commentary (pdf format)

Lincoln Savings Bank and LSB Financial are pleased to provide the above Market Commentary for the week of April 23, 2012. 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 here.

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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

Securities and Insurance products offered through LPL Financial and its affiliates, member FINRA / SIPC.

Not FDIC Insured	No Bank Guarantee	May Lose Value
Not a Deposit	Not Insured by any Federal Government Agency

Lincoln Savings Bank and LSB Financial are not registered broker/dealers, nor are they affiliated with LPL Financial. This site is designed for U.S. residents only. The services offered within this site are available exclusively through our U.S. Investment Representatives. LPL Financials U.S. Investment Representatives may only conduct business with residents of the states for which they are properly registered. Please note that not all of the investments and services mentioned are available in every state.

• Over the past week, the LPL Financial Current Conditions Index remained relatively unchanged at 224. The index has fallen from 249 back in February. However, the path of the CCI remains consistent with continued economic growth in the United States.

• The growth momentum in the index has softened recently with the 13- and 52-week change in the index declining. The rise in initial jobless claims and the VIX are ominous signs of a slide in the stock market that were evident in April 2010 and April 2011 as stocks peaked and began a 16–19% decline.

View the entire Current Conditions Index (pdf format)

Lincoln Savings Bank and LSB Financial are pleased to provide the above commentary for the week of April 26, 2012. 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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The LPL Financial Research Current Conditions Index is a weekly measure of the conditions that underpin our outlook for the markets and economy. The CCI provides real-time context and insight into the trends that shape our recommended actions to manage portfolios. This index has proven to be a useful tool for investment decision making.

This weekly index is not intended to be a leading index or predictive of where conditions are headed, but a coincident measure of where they are right now. We want to track the conditions in real-time to aid in investment decision making. There are thousands of indicators-some lead the economy, some lag, while others merely offer a lot of statistical noise. We chose to create our own index tailored to the current environment to provide the clearest and most useful way to track conditions. The components of the CCI are periodically changed to retune the index to those factors most critical to the markets and economy so it may continue to be a valuable investment decision-making tool.

Securities and Insurance products offered through LPL Financial and its affiliates, member FINRA / SIPC.

Not FDIC Insured	No Bank Guarantee	May Lose Value
Not a Deposit	Not Insured by any Federal Government Agency

Lincoln Savings Bank and LSB Financial are not registered broker/dealers, nor are they affiliated with LPL Financial. This site is designed for U.S. residents only. The services offered within this site are available exclusively through our U.S. Investment Representatives. LPL Financials U.S. Investment Representatives may only conduct business with residents of the states for which they are properly registered. Please note that not all of the investments and services mentioned are available in every state.

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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/default.aspx

SHAZAM, a common name throughout the midwest because they provide debit and ATM card services to financial institutions, is the target of a phishing attack. The attack involves Twitter, a popular social media site, and fraudulent websites that have been established to capture information from unsuspecting consumers.  Lincoln Savings Bank wants to make our customers aware of this phishing attack because our ATM and Debit cards carry the SHAZAM logo, and we want to make sure our customers don't fall victim to this fraudulent activity.

A phishing attack is when a fraudster attempts to use false or misleading means to lure consumers into providing sensitive information.  A phishing attack does not mean that SHAZAM has been hacked or compromised in any way, so unless you have recently entered sensitive banking information on the web or through a social media site that seems to represent "Shazam Debit Card", you are not at risk for this attack.

The phishing attack is using the Twitter hashtag #shazamdebitcard. This attack has led to the creation of several fraudulent “Shazam Debit Card” Internet sites. The sites claim to be collecting information for fast-cash loans; therefore, personal information, such as a person’s Social Security number, date of birth, and driver’s license number, is being targeted.


The SHAZAM Corporate Security team has initiated security procedures, and are in the process of removing all associated URLs and disabling the #shazamdebitcard Twitter hashtag.

Please ignore any sites associated with the Twitter hashtag #shazamdebitcard. If you are concerned that you may have entered sensitive information on one of these sites, please call SHAZAM Client Support immediately at (800) 537-5427 (option 2) and they will assist you in any way that we can.  You are also welcome to call LSB at (800) 588-7551.

Economic Commentary Highlights...

• The latest Beige Book indicates that the economy is still expanding at a modest pace.

• Rising fuel prices are a concern, but food prices are less of concern today than last spring.

• The warm weather almost certainly made an impact on economic activity in the late winter and early spring.

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 April 16, 2012. 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

Securities and Insurance products offered through LPL Financial and its affiliates, member FINRA / SIPC.

Not FDIC Insured	No Bank Guarantee	May Lose Value
Not a Deposit	Not Insured by any Federal Government Agency

Lincoln Savings Bank and LSB Financial are not registered broker/dealers, nor are they affiliated with LPL Financial. This site is designed for U.S. residents only. The services offered within this site are available exclusively through our U.S. Investment Representatives. LPL Financials U.S. Investment Representatives may only conduct business with residents of the states for which they are properly registered. Please note that not all of the investments and services mentioned are available in every state.

Market Commentary Highlights...

• Perhaps surprisingly, it appears that the tax rate changes have played little or no direct role in stock or bond market performance.

• The most likely reason is that the effects on after-tax returns were deemed negligible relative to the macroeconomic and geopolitical drivers.

• The far bigger impact is an indirect one determined by the magnitude and direction of overall fiscal policy taken (or not taken) in 2013 to put the United States back on a path to financial stability.

View the entire Market Commentary (pdf format)

Lincoln Savings Bank and LSB Financial are pleased to provide the above Market Commentary for the week of April 16, 2012. 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 here.

###

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

Securities and Insurance products offered through LPL Financial and its affiliates, member FINRA / SIPC.

Not FDIC Insured	No Bank Guarantee	May Lose Value
Not a Deposit	Not Insured by any Federal Government Agency

Lincoln Savings Bank and LSB Financial are not registered broker/dealers, nor are they affiliated with LPL Financial. This site is designed for U.S. residents only. The services offered within this site are available exclusively through our U.S. Investment Representatives. LPL Financials U.S. Investment Representatives may only conduct business with residents of the states for which they are properly registered. Please note that not all of the investments and services mentioned are available in every state.

• Over the past week, the LPL Financial Current Conditions Index was basically unchanged at 236. The path of the CCI remains consistent with continued economic growth in the United States.

• The growth momentum in the index has softened recently with the 13- and 52-week change in the index flattening.

View the entire Current Conditions Index (pdf format)

Lincoln Savings Bank and LSB Financial are pleased to provide the above commentary for the week of April 11, 2012. 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 ____________________________________________________________________________________

The LPL Financial Research Current Conditions Index is a weekly measure of the conditions that underpin our outlook for the markets and economy. The CCI provides real-time context and insight into the trends that shape our recommended actions to manage portfolios. This index has proven to be a useful tool for investment decision making.

This weekly index is not intended to be a leading index or predictive of where conditions are headed, but a coincident measure of where they are right now. We want to track the conditions in real-time to aid in investment decision making. There are thousands of indicators-some lead the economy, some lag, while others merely offer a lot of statistical noise. We chose to create our own index tailored to the current environment to provide the clearest and most useful way to track conditions. The components of the CCI are periodically changed to retune the index to those factors most critical to the markets and economy so it may continue to be a valuable investment decision-making tool.

Securities and Insurance products offered through LPL Financial and its affiliates, member FINRA / SIPC.

Not FDIC Insured	No Bank Guarantee	May Lose Value
Not a Deposit	Not Insured by any Federal Government Agency

Lincoln Savings Bank and LSB Financial are not registered broker/dealers, nor are they affiliated with LPL Financial. This site is designed for U.S. residents only. The services offered within this site are available exclusively through our U.S. Investment Representatives. LPL Financials U.S. Investment Representatives may only conduct business with residents of the states for which they are properly registered. Please note that not all of the investments and services mentioned are available in every state.

###

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/default.aspx

Economic Commentary Highlights...

• The labor market is healing and is probably in better shape than it was last summer.

• The economy is probably not growing quickly enough to generate more than 200,000 – 225,000 jobs per month.

• The Federal Reserve (Fed) may put another round of quantitative easing (QE) on the table in June.

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 April 9, 2012. 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

Securities and Insurance products offered through LPL Financial and its affiliates, member FINRA / SIPC.

Not FDIC Insured	No Bank Guarantee	May Lose Value
Not a Deposit	Not Insured by any Federal Government Agency

Lincoln Savings Bank and LSB Financial are not registered broker/dealers, nor are they affiliated with LPL Financial. This site is designed for U.S. residents only. The services offered within this site are available exclusively through our U.S. Investment Representatives. LPL Financials U.S. Investment Representatives may only conduct business with residents of the states for which they are properly registered. Please note that not all of the investments and services mentioned are available in every state.

Market Commentary Highlights...

• While macroeconomic data and events are likely to remain key drivers of the market this week, microeconomics will also garner investors’ attention as companies begin to release first quarter earnings reports.

• In each of the past two years, as the last week of April unfolded, the S&P 500 Index peaked and began to decline 16 – 19% as the back half of the earnings season got underway. We will be watching developments closely to determine if a repeat of that pattern will emerge again this year.

• During this earnings season, we are paying special attention to the breadth of earnings growth, earnings guidance on upcoming quarters, and profit margins.

View the entire Market Commentary (pdf format)

Lincoln Savings Bank and LSB Financial are pleased to provide the above Market Commentary for the week of April 9, 2012. 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 here.

###

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

Securities and Insurance products offered through LPL Financial and its affiliates, member FINRA / SIPC.

Not FDIC Insured	No Bank Guarantee	May Lose Value
Not a Deposit	Not Insured by any Federal Government Agency

Lincoln Savings Bank and LSB Financial are not registered broker/dealers, nor are they affiliated with LPL Financial. This site is designed for U.S. residents only. The services offered within this site are available exclusively through our U.S. Investment Representatives. LPL Financials U.S. Investment Representatives may only conduct business with residents of the states for which they are properly registered. Please note that not all of the investments and services mentioned are available in every state.

The staff at Lincoln Savings Bank, led by VP/Trust Officer Julie Versluis, found out just how good it feels to do something in support of our troops.  They recently sent care packages to U.S. Troops in Afghanistan.  The supplies arrived in Afghanistan on April 10, 2012, to a very grateful group of heroes.  Staff Sergeant Ryan Wienhold posted two messages on Facebook upon receipt of the supplies.

The first message from SSG Wienhold was posted on April 10, and read:

”Want to give a huge shout out to Julie Versluis and Lincoln Savings Bank for all the care packages today! WOW! The look on the soldiers faces were amazing! Thank you guys so much for doing a donation to send us supplies and everyone liked the cards from the students! I will post a pic of some of us holding the supplies! We can't thank you enough for all the help and support!"

The second message was posted on April 11, and was accompanied by a picture:

"Thank you Julie Versluis and Lincoln Savings Bank for the supplies! Here is a photo of our Maintenance and Recovery Crew from Operation Enduring Freedom!"

Julie, who has worked at Lincoln Savings Bank since 2005, has a personal connection to the military.  Julie’s son Trey, a 2011 graduate from Jesup High School, enlisted in the military upon graduation.  SSG Wienhold is from Jesup and was Trey's recruiter. Julie organized a fundraiser at the bank and collected $600 in contributions to buy the following supplies:

• 48 bottles of AXE shower gel
• 48 individual AXE Mens deodorants
• 12 bottles of shower gel
• 12 Secret Womens deodorant
• 48 count box of Planters Peanuts 
• 45 count box of Peanut Butter Crackers
• 45 count box of Cheese Crackers
• 5.75 lbs of beef sticks from the Gilbertville Locker
• Toothbrushes

Julie also coordinated the following donations to supplement the purchased supplies:

• Bath Soap Bars from the Grundy Motel
• Individual Packets of Whey Protein from Jesup Gym Equipment 
• Toothbrushes, Toothpaste and Dental Floss from Dr. Merritt Jones 
• Clinique Makeup/lotions/bath gels/soap/toothbrushes/toothpaste from an anonymous donor
• Books, puzzles, stationary
• LSB pencils, notepads and Koozies
• Letters from the 1^st Grade Class at Grundy Elementary

The items were boxed up by Julie and her “LSB elves”, and sent to the troops on April 3^rd.  The LSB elves consisted of other LSB employees and family members, many with personal connections to the military.  Christine Rolf, VP Mortgage Processing, assisted in the collection and packaging of the care packages.   Christine met her husband because she was his pen pal during the gulf war.  Jessica Ledtje, AVP and Trust Ops Manager, also helped to gather donations and enlisted the help of her daughter’s 1^st grade class at Grundy Elementary to make cards for the troops.   Jessica’s husband was a Marine.

Julie, pictured below preparing one of the care packages, said “I have been a supporter of our Troops since the Gulf War. Today supporting our Troops has a more personal meaning to me.  I am proud to say my son defends freedom in the US Army.  Those men and women who sacrifice and serve to protect our freedoms deserve our respect and appreciation.  Sending care packages and cards is just one way we can let them know how much we appreciate their service."

• Over the past week, the LPL Financial Current Conditions Index rebounded slightly to 233. The path of the CCI remains consistent with continued economic growth in the United States.

• The growth momentum in the index has softened recently with the 13- and 52-week change in the index flattening.

View the entire Current Conditions Index (pdf format)

Lincoln Savings Bank and LSB Financial are pleased to provide the above commentary for the week of April 4, 2012. 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 ____________________________________________________________________________________

The LPL Financial Research Current Conditions Index is a weekly measure of the conditions that underpin our outlook for the markets and economy. The CCI provides real-time context and insight into the trends that shape our recommended actions to manage portfolios. This index has proven to be a useful tool for investment decision making.

This weekly index is not intended to be a leading index or predictive of where conditions are headed, but a coincident measure of where they are right now. We want to track the conditions in real-time to aid in investment decision making. There are thousands of indicators-some lead the economy, some lag, while others merely offer a lot of statistical noise. We chose to create our own index tailored to the current environment to provide the clearest and most useful way to track conditions. The components of the CCI are periodically changed to retune the index to those factors most critical to the markets and economy so it may continue to be a valuable investment decision-making tool.

Securities and Insurance products offered through LPL Financial and its affiliates, member FINRA / SIPC.

Not FDIC Insured	No Bank Guarantee	May Lose Value
Not a Deposit	Not Insured by any Federal Government Agency

Lincoln Savings Bank and LSB Financial are not registered broker/dealers, nor are they affiliated with LPL Financial. This site is designed for U.S. residents only. The services offered within this site are available exclusively through our U.S. Investment Representatives. LPL Financials U.S. Investment Representatives may only conduct business with residents of the states for which they are properly registered. Please note that not all of the investments and services mentioned are available in every state.

###

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/default.aspx

Economic Commentary Highlights...

• We take a close look at the inner workings of the job market in this report.

• The professional and business services industry has the most open jobs currently.

• Small firms are doing the most hiring.

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 April 2, 2012. 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

###

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

Securities and Insurance products offered through LPL Financial and its affiliates, member FINRA / SIPC.

Not FDIC Insured	No Bank Guarantee	May Lose Value
Not a Deposit	Not Insured by any Federal Government Agency

Lincoln Savings Bank and LSB Financial are not registered broker/dealers, nor are they affiliated with LPL Financial. This site is designed for U.S. residents only. The services offered within this site are available exclusively through our U.S. Investment Representatives. LPL Financials U.S. Investment Representatives may only conduct business with residents of the states for which they are properly registered. Please note that not all of the investments and services mentioned are available in every state.

Market Commentary Highlights...

• During the next six months, the elections will likely become an increasingly potent driver of financial markets.

• There has been no significant performance difference in the year after the presidential election based purely on which political party won the White House.

• Instead, the stock market has been more likely to respond to whether the incumbent political party won or lost. The stock market may be returning to favoring challengers.

View the entire Market Commentary (pdf format)

Lincoln Savings Bank and LSB Financial are pleased to provide the above Market Commentary for the week of April 2, 2012. 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 here.

###

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

Securities and Insurance products offered through LPL Financial and its affiliates, member FINRA / SIPC.

Not FDIC Insured	No Bank Guarantee	May Lose Value
Not a Deposit	Not Insured by any Federal Government Agency

Lincoln Savings Bank and LSB Financial are not registered broker/dealers, nor are they affiliated with LPL Financial. This site is designed for U.S. residents only. The services offered within this site are available exclusively through our U.S. Investment Representatives. LPL Financials U.S. Investment Representatives may only conduct business with residents of the states for which they are properly registered. Please note that not all of the investments and services mentioned are available in every state.