SOURCE: Hibernia Bancorp, Inc.

Hibernia Bancorp, Inc.

February 05, 2014 13:00 ET

Hibernia Bancorp, Inc. Reports Operating Results for the Year and Fourth Quarter Ended December 31, 2013

NEW ORLEANS, LA--(Marketwired - Feb 5, 2014) - Hibernia Bancorp, Inc. (the "Company") (OTCBB: HIBE), the holding company of Hibernia Bank (the "Bank"), today reported net income of $101,000 for the year ended December 31, 2013, compared to net income of $199,000 for the year ended December 31, 2012. Earnings per basic and diluted share were $0.11 for the year ended December 31, 2013, compared to $0.22 and $0.21 per basic and diluted share, respectively, for the year ended December 31, 2012. The Company reported net income of $59,000 for the quarter ended December 31, 2013 compared to net income of $66,000 for the quarter ended December 31, 2012. Earnings per basic and diluted share for the quarter ended December 31, 2013 were $0.06, compared to $0.08 and $0.07 per basic and diluted share, respectively, for the quarter ended December 31, 2012. 

A. Peyton Bush, III, President and Chief Executive Officer of the Company and the Bank, stated, "We experienced narrowing net interest margins throughout 2013, and outstanding loans declined due to unscheduled prepayments and lower new loan production. These were the primary factors in the Company's lower net income for the year. Non-interest expense net of non-interest income was held relatively flat showing less than a 2% increase. Asset quality remains high with total non-performing assets declining to $259,000, or 0.2% of total assets, at year end 2013."

For the year ended December 31, 2013, net interest income decreased 8.2% to $3.2 million from $3.5 million for the year ended December 31, 2012. This decrease was due to a decrease in the average rate we earned on loans and investment securities as well as a decrease in average loan volume in the year ended December 31, 2013 compared to the year ended December 31, 2012. This decline in loan volume was partially offset by higher average balances in investment securities and short term interest bearing deposits for the year ended December 31, 2013 as compared to the year ended December 31, 2012. Total interest expense decreased 6.4% for the year ended December 31, 2013 to $656,000 compared to $701,000 for the year ended December 31, 2012. The decrease was due to a decline in the average rate paid for deposits for the year ended December 31, 2013 partially offset by an increase in the average balance of our interest bearing deposits which resulted in a slightly lower interest expense for the period. The net interest margin decreased to 3.27% for the year ended December 31, 2013 from 3.90% for the year ended December 31, 2012.

During the year ended December 31, 2013, the Company made provisions for loan and lease losses of $13,000 compared to provisions of $128,000 during the year ended December 31, 2012. The Company reported no net charge-offs for the years ended December 31, 2013 and 2012.

Non-interest income decreased slightly to $155,000 for the year ended December 31, 2013 from $156,000 for the year ended December 31, 2012. The components of non-interest income include service charges and fees, secondary market loan income, gains or losses on other real estate and other income.

Non-interest expense was $3.2 million for both of the years ended December 31, 2013 and 2012. The slight increase of $56,000 in non-interest expense was due to personnel expense, data processing expenses and franchise and share taxes. These increases were partially offset by decreases in other professional fees, occupancy expenses and advertising. 

For the year ended December 31, 2013, income tax expense was $47,000 compared to $179,000 for the year ended December 31, 2012. This decrease is primarily due to a decrease in the Company's pre-tax income.

Net interest income decreased 12.5% to $784,000 for the quarter ended December 31, 2013, from $896,000 for quarter ended December 31, 2012. This was due to a decrease in interest and dividend income. Total interest and dividend income decreased $141,000, or 13.1%, for the quarter ended December 31, 2013 compared to the quarter ended December 31, 2012. This decrease was due primarily to a decrease in the average rate we earned on loans and investment securities combined with a decline in average loan volume. Total interest expense decreased $29,000, or 16.0%, for the quarter ended December 31, 2013 compared to the quarter ended December 31, 2012. Although the average balance of our interest bearing deposits for the quarter ended December 31, 2013 increased as compared to the average balance for the quarter ended December 31, 2012, the average rate paid for deposits decreased resulting in lower interest expense for the period. The net interest margin decreased to 3.07% for the three months ended December 31, 2013 from 3.69% for the three months ended December 31, 2012. 

The Company made no loan loss provision for the quarter ended December 31, 2013, compared to $32,000 for the quarter ended December 31, 2012. The Company reported no recoveries and no charge-offs for the quarters ended December 31, 2013 and December 31, 2012.

Non-interest income decreased slightly to $35,000 for the quarter ended December 31, 2013 compared to $40,000 for the quarter ended December 31, 2012. The decrease is primarily due to a decline in net rental income.

Non-interest expense decreased 4.6% to $749,000 for the quarter ended December 31, 2013 from $785,000 for the quarter ended December 31, 2012. The decrease in non-interest expense was due primarily to decreases in professional fees and occupancy expenses. These decreases were partially offset by increases in data processing and personnel expenses.

Income tax expense for the quarter ended December 31, 2013 was $11,000 as compared to $53,000 for the quarter ended December 31, 2012. The decrease in quarterly taxes was primarily due to a decrease in pre-tax income.

The Company's total consolidated assets at December 31, 2013 were $106.2 million compared to $101.9 million at December 31, 2012, an increase of $4.3 million, or 4.3%. Purchases of investment securities of $9.8 million, net of maturities and repayments, resulted in an increase of $9.5 million in investment securities. Interest bearing cash increased by $2.7 million during the year ended December 31, 2013. These increases were primarily the result of a decline in net loans to $79.4 million at December 31, 2013 from $87.7 million at December 31, 2012, and an increase in deposits of $4.4 million. The decrease in net loans reflects a $2.7 million decrease in residential mortgage and residential construction loans, and a $5.7 million decrease in commercial real estate loans primarily due to unscheduled prepayments. Total deposits increased 5.6% to $83.3 million at December 31, 2013 from $78.9 million at December 31, 2012, reflecting increases of $4.5 million in money market and interest bearing checking accounts, $1.4 million in savings accounts, and $1.8 million in non-interest bearing demand deposits offset by a decrease of $3.3 million in certificates of deposit which included the maturity of $1.0 million in brokered CDs.

Non-performing assets, defined as non-accrual loans, accruing loans past due 90 days or more and other real estate owned, totaled $259,000, or 0.2%, of total assets at December 31, 2013, compared to $715,000, or 0.7%, of total assets at December 31, 2012. The non-performing assets at December 31, 2013 consisted of three loans secured by first mortgages on one-to-four family residential real estate. Our allowance for loan and lease losses was $641,000, or 0.8%, of total loans at December 31, 2013, and $628,000, or 0.7%, of total loans at December 31, 2012. 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. At December 31, 2013 and December 31, 2012, there was no other real estate owned. 

The Company's total stockholders' equity remained essentially unchanged at $22.0 million as of December 31, 2013 and December 31, 2012. During the year ended December 31, 2013, the Company repurchased 8,553 shares of its common stock as treasury stock for an aggregate cost of $145,000. There are 12,547 shares remaining to be repurchased under the Company's stock repurchase program. The Company's book value per share increased to $22.30 at December 31, 2013 from $22.08 at December 31, 2012 due to our net income for the year 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,     December 31,  
    2013     2012  
    (Unaudited)        
ASSETS                
                 
Cash - Non-Interest Bearing   $ 1,071     $ 647  
Cash - Interest Bearing     9,271       6,618  
                 
TOTAL CASH AND CASH EQUIVALENTS     10,342       7,265  
                 
Certificates of Deposit     100       100  
Securities - Available For Sale     10,389       854  
Loans Receivable, Net of Allowances for Loan                
  Losses of $641,000 and $628,000 as of December 31, 2013 and December 31, 2012, respectively     79,424       87,721  
Accrued Interest Receivable     237       257  
Investment in FHLB Stock     41       36  
Investment in FNBB Stock     210       210  
Prepaid Expenses and Other Assets     259       193  
Premises and Equipment, Net     4,874       4,941  
Deferred Income Taxes     318       286  
    TOTAL ASSETS   $ 106,194     $ 101,863  
LIABILITIES AND EQUITY                
LIABILITIES                
Deposits                
  Non-Interest Bearing   $ 7,847     $ 6,019  
  Interest Bearing     75,474       72,889  
Total Deposits     83,321       78,908  
                 
Escrow Balances     680       727  
Accrued Interest Payable     39       51  
Accounts Payable and Other Liabilities     140       191  
    TOTAL LIABILITIES     84,180       79,877  
                 
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; 987,331 and 995,884 shares outstanding at December 31, 2013 and December 31, 2012, respectively     11       11  
Additional Paid in Capital     10,834       10,695  
Treasury Stock at cost - 126,003 and 117,450 shares at December 31, 2013 and December 31, 2012, respectively     (1,912 )     (1,767 )
Unallocated Common Stock held by:                
  Employee Stock Ownership Plan     (712 )     (748 )
  Recognition and Retention Plan     (200 )     (231 )
Accumulated Other Comprehensive Income (Loss), Net of Tax Effects     (95 )     39  
Retained Earnings     14,088       13,987  
                 
    TOTAL EQUITY     22,014       21,986  
    TOTAL LIABILITIES AND EQUITY   $ 106,194     $ 101,863  
                 
 
Hibernia Bancorp, Inc. and Subsidiary
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
                   
                   
    Three Months Ended   Year Ended
    December 31,   December 31,
    2013     2012   2013   2012
    (Unaudited)   (Unaudited)    
                           
Total Interest and Dividend Income   $ 936     $ 1,077   $ 3,900   $ 4,233
                           
Total Interest Expense     152       181     656     701
                           
  Net Interest Income     784       896     3,244     3,532
                           
Provision For Loan Losses     -       32     13     128
                           
  Net Interest Income After Provision For Loan Losses     784       864     3,231     3,404
                           
Total Non-Interest Income     35       40     155     156
                           
Non-Interest Expenses                          
  Salaries and Employee Benefits     389       369     1,588     1,490
  Occupancy Expenses     102       126     477     493
  Data Processing     120       95     419     372
  Advertising and Promotional Expenses     25       18     131     143
  Professional Fees     (2 )     55     137     229
  Other Non-Interest Expenses     115       122     486     455
                           
Total Non-Interest Expenses     749       785     3,238     3,182
                           
  Income Before Income Taxes     70       119     148     378
                           
Income Tax Expense     11       53     47     179
                           
  NET INCOME   $ 59     $ 66   $ 101   $ 199
                           
  INCOME PER COMMON SHARE                          
    Basic   $ 0.06     $ 0.08   $ 0.11   $ 0.22
    Diluted   $ 0.06     $ 0.07   $ 0.11   $ 0.21
                           

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