NEW ORLEANS, LA--(Marketwire - Feb 6, 2013) - Hibernia Bancorp, Inc. (the "Company") (
A. Peyton Bush, III, President and Chief Executive Officer of the Company and the Bank, stated, "We continue to feel the effects of shrinking net interest margins as a result of historically low interest rates and the monetary policies followed by the Federal Reserve. Margin pressure is expected to continue through 2013. We will intensify our efforts to solicit lower cost core deposits and to focus our lending activities on commercial transactions offering higher yields than residential mortgage loans. We will also continue our efforts to increase fee income to mitigate the impact of rising costs. By the end of the first quarter we expect to have in place two correspondent arrangements allowing us to originate residential mortgage loans for sale in the secondary market. Developing fee income from that source will be an important priority in a year that we expect to be especially challenging."
For the year ended December 31, 2012, net interest income increased 12.8% to $3.5 million from $3.1 million for the year ended December 31, 2011, primarily due to higher loan volume. The net interest margin decreased to 3.90% for the year ended December 31, 2012 compared to 4.20% for the prior year period. During the year ended December 31, 2012, the Company made provisions for loan and lease losses of $128,000 compared to provisions of $142,000 during the year ended December 31, 2011.
Non-interest expense for the year ended December 31, 2012 increased $303,000, or 10.5%, to $3.2 million compared to $2.9 million for the year ended December 31, 2011. The non-interest expense for the year ended December 31, 2012 reflected increases in personnel expense, advertising and promotional expenses, occupancy expenses, data processing expenses and professional fees. These increases were partially offset by decreases in other non-interest expenses which for the year ended December 31, 2011 included $36,000 of losses on disposals of premises and equipment primarily related to a roof replacement.
For the year ended December 31, 2012, income tax expense was $179,000 compared to $110,000 for the year ended December 31, 2011. This increase is due to an increase in the Company's pre-tax income as well as an increase in Alternative Minimum Tax (AMT).
Net interest income increased 6.3% to $896,000 for the quarter ended December 31, 2012, from $843,000 for quarter ended December 31, 2011. Several factors affected net interest income for the period. Gross interest income was higher due to an increase in loans and a decrease in lower yielding investment securities as a percentage of earning assets. Interest bearing deposits increased, but the average rate paid for deposits declined. Total interest expense increased 6.5% to $181,000 for the quarter ended December 31, 2012, from $170,000 for the quarter ended December 31, 2011. The net interest margin decreased to 3.69% for the three months ended December 31, 2012 from 4.22% for the three months ended December 31, 2011. During the quarter ended December 31, 2012, the Company made a provision for loan and lease losses of $32,000 as compared to $75,000 for the quarter ended December 31, 2011.
Non-interest expense increased 9.3% to $785,000 for the quarter ended December 31, 2012 from $718,000 for the quarter ended December 31, 2011. The increase in non-interest expense for the quarter ended December 31, 2012 reflected increases in personnel expenses, professional fees, regulatory assessments and occupancy expenses. The increase in personnel expense included merit based salary increases, the addition of one staff member and costs associated with the Company's stock benefit plans.
Income tax expense for the quarter ended December 31, 2012 was $53,000 as compared to $6,000 for the quarter ended December 31, 2011. This increase is due primarily to the increase in the Company's pre-tax income, the increase in the AMT, and the impact of adjustments made during the fourth quarter of 2011 to adjust Company's deferred tax asset to its calculated balance.
Hibernia Bancorp's total consolidated assets at December 31, 2012 were $101.9 million compared to $88.5 million at December 31, 2011. Net loans increased 14.0% to $87.7 million at December 31, 2012 from $76.9 million at December 31, 2011, reflecting a $5.5 million increase in residential mortgage and residential construction loans and $5.4 million increase in commercial real estate loans. The increase in loan volume was funded by an increase of $13.4 million in deposits and a $1.4 million decrease in investment securities. Interest bearing cash increased by $4.8 million. Total deposits increased 20.4% to $78.9 million at December 31, 2012 from $65.5 million at December 31, 2011, reflecting increases of $10.6 million in certificates of deposit, $2.0 million in non-interest bearing demand deposits and $730,000 in savings and money market accounts.
Non-performing assets, defined as non-accrual loans, accruing loans past due 90 days or more and other real estate owned, totaled $715,000, or 0.7% of total assets, at December 31, 2012, compared to $695,000, or 0.8% of total assets, at December 31, 2011. The non-performing assets at December 31, 2012 consisted of five loans secured by first mortgages on one-to-four family residential real estate. Management believes that the allowance for loan and lease losses is sufficient to cover any losses that may be incurred on its non-performing loans. During the year ended December 31, 2012, other real estate owned was sold resulting in a gain of $12,000 which is included in non-interest income on the Condensed Consolidated Statements of Operations. At December 31, 2012 there was no other real estate owned compared to $126,000 at December 31, 2011.
The Company reported no net charge-offs for the year ended December 31, 2012 and $36,000 in net charge-offs for the year ended December 31, 2011. The Company's loan loss provision for the quarter ended December 31, 2012 was $32,000, compared to $75,000 for the quarter ended December 31, 2011. For the year ended December 31, 2012, the Company's loan loss provision was $128,000, compared to $142,000 for the year ended December 31, 2011. The provisions for loan losses were based on management's analysis of reserve adequacy given the size and risk profile of the Bank's loan portfolio at the time.
The Company's total stockholders' equity declined slightly to $22.0 million as of December 31, 2012 from $22.1 million as of December 31, 2011. During the year ended December 31, 2012, the Company repurchased 30,232 shares of its common stock as treasury stock for an aggregate cost of $507,000 which leaves 21,100 shares remaining to be repurchased under the Company's third stock repurchase program. The Company's book value per share increased to $22.08 at December 31, 2012 from $21.55 at December 31, 2011 due to our net income for the period and our purchase of treasury stock. Hibernia Bank's regulatory capital levels continue to exceed requirements for well capitalized institutions.
Statements contained in this news release which are not historical facts may be forward-looking statements identified by words like "believe," "expect," "anticipate," "estimate," and "intend" or future or conditional verbs such as "will," "would," "should," "could" or "may." Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors, including, but not limited to, changes in interest rates, changes in demand for loans, deposits and other financial services in the Company's market area, changes in asset quality and general economic conditions. We undertake no obligation to update any forward-looking statements.
Hibernia Bank, the wholly-owned subsidiary of Hibernia Bancorp, Inc., has served the New Orleans metropolitan area since 1903. Operating from its main office and two branches, Hibernia Bank offers loan, deposit and on-line banking services to commercial and individual customers in the New Orleans metropolitan area. Additional information about Hibernia Bank is available at www.hibbank.com.
| Hibernia Bancorp, Inc. and Subsidiary | ||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||||||||||
| (In thousands) | ||||||||||
| December 31, 2012 |
December 31, 2011 |
|||||||||
| (Unaudited) | ||||||||||
| ASSETS | ||||||||||
| Cash - Non-Interest Bearing | $ | 647 | $ | 831 | ||||||
| Cash - Interest Bearing | 6,618 | 1,788 | ||||||||
| TOTAL CASH AND CASH EQUIVALENTS | 7,265 | 2,619 | ||||||||
| Certificates of Deposit | 100 | 100 | ||||||||
| Securities - Available For Sale | 854 | 2,229 | ||||||||
| Loans Receivable, Net | 87,721 | 76,947 | ||||||||
| Accrued Interest Receivable | 257 | 275 | ||||||||
| Investment in FHLB Stock | 36 | 172 | ||||||||
| Investment in FNBB Stock | 210 | 210 | ||||||||
| Prepaid Expenses and Other Assets | 193 | 216 | ||||||||
| Other Real Estate Owned, Net | - | 126 | ||||||||
| Premises and Equipment, Net | 4,941 | 5,174 | ||||||||
| Deferred Income Taxes | 286 | 431 | ||||||||
| TOTAL ASSETS | $ | 101,863 | $ | 88,499 | ||||||
| LIABILITIES AND EQUITY | ||||||||||
| LIABILITIES | ||||||||||
| Deposits | ||||||||||
| Non-Interest Bearing | $ | 6,019 | $ | 3,975 | ||||||
| Interest Bearing | 72,889 | 61,567 | ||||||||
| Total Deposits | 78,908 | 65,542 | ||||||||
| Advance Payments by Borrowers for Taxes and Insurance | 727 | 634 | ||||||||
| Accrued Interest Payable | 51 | 11 | ||||||||
| Accounts Payable and Other Liabilities | 191 | 203 | ||||||||
| TOTAL LIABILITIES | 79,877 | 66,390 | ||||||||
| EQUITY | ||||||||||
| Preferred Stock, $.01 par value - 1,000,000 shares authorized; none issued | - | - | ||||||||
| Common Stock, $.01 par value - 9,000,000 shares authorized; 1,113,334 issued; 995,884 and 1,026,116 shares outstanding at December 31, 2012 and 2011, respectively | 11 | 11 | ||||||||
| Additional Paid in Capital | 10,695 | 10,560 | ||||||||
| Treasury Stock at cost - 117,450 and 87,218 shares at December 31, 2012 and 2011, respectively | (1,767 | ) | (1,260 | ) | ||||||
| Unallocated Common Stock held by: | ||||||||||
| Employee Stock Ownership Plan | (748 | ) | (784 | ) | ||||||
| Recognition and Retention Plan | (231 | ) | (262 | ) | ||||||
| Accumulated Other Comprehensive Income, Net of Tax Effects | 39 | 56 | ||||||||
| Retained Earnings | 13,987 | 13,788 | ||||||||
| TOTAL EQUITY | 21,986 | 22,109 | ||||||||
| TOTAL LIABILITIES AND EQUITY | $ | 101,863 | $ | 88,499 | ||||||
| Hibernia Bancorp, Inc. and Subsidiary | ||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||
| (Dollars in thousands, except per share data) | ||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||
| December 31, | December 31, | |||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||
| Total Interest and Dividend Income | $ | 1,077 | $ | 1,013 | $ | 4,233 | $ | 3,810 | ||||||
| Total Interest Expense | 181 | 170 | 701 | 680 | ||||||||||
| Net Interest Income | 896 | 843 | 3,532 | 3,130 | ||||||||||
| Provision For Loan Losses | 32 | 75 | 128 | 142 | ||||||||||
| Net Interest Income After Provision For | ||||||||||||||
| Loan Losses | 864 | 768 | 3,404 | 2,988 | ||||||||||
| Total Non-Interest Income | 40 | 32 | 156 | 129 | ||||||||||
| Non-Interest Expenses | ||||||||||||||
| Salaries and Employee Benefits | 369 | 337 | 1,490 | 1,330 | ||||||||||
| Occupancy Expenses | 126 | 117 | 493 | 438 | ||||||||||
| Data Processing | 95 | 91 | 372 | 329 | ||||||||||
| Advertising and Promotional Expenses | 18 | 21 | 143 | 65 | ||||||||||
| Professional Fees | 55 | 36 | 229 | 198 | ||||||||||
| Other Non-Interest Expenses | 122 | 116 | 455 | 519 | ||||||||||
| Total Non-Interest Expenses | 785 | 718 | 3,182 | 2,879 | ||||||||||
| Income Before Income Taxes | 119 | 82 | 378 | 238 | ||||||||||
| Income Tax Expense | 53 | 6 | 179 | 110 | ||||||||||
| NET INCOME | $ | 66 | $ | 76 | $ | 199 | $ | 128 | ||||||
| INCOME PER COMMON SHARE | ||||||||||||||
| Income per Share, Basic | $ | 0.08 | $ | 0.08 | $ | 0.22 | $ | 0.14 | ||||||
| Income per Share, Diluted | $ | 0.07 | $ | 0.08 | $ | 0.21 | $ | 0.13 | ||||||
Contact Information:
CONTACT:
A. Peyton Bush, III
President and Chief Executive Officer
Donna T. Guerra
Chief Financial Officer
504-522-3203