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Hibernia Bancorp, Inc. Reports Operating Results for the Third Quarter and Nine Months Ended September 30, 2014


November 5, 2014 - NEW ORLEANS, LA

Hibernia Bancorp, Inc. (the "Company") (OTCBB: HIBE), the holding company of Hibernia Bank ("Hibernia" or the "Bank"), today reported net income of $34,000 for the quarter ended September 30, 2014 compared to net income of $3,000 for the quarter ended September 30, 2013. Earnings per basic and diluted share were $0.04 for the quarter ended September 30, 2014 and $0.01 for the quarter ended September 30, 2013. For the nine months ended September 30, 2014, the Company reported net income of $50,000 compared to net income of $42,000 for the nine months ended September 30, 2013. Earnings per basic and diluted share were $0.06 and $0.05, respectively, for the nine months ended September 30, 2014, compared to $0.05 per basic and diluted share for the nine months ended September 30, 2013.

Peyton Bush, III, President and Chief Executive Officer of the Company and the Bank, stated, "Net income before taxes improved modestly in the third quarter compared to the prior year period due to increased loan volume, an improved net interest margin and slightly lower non-interest expenses, partially offset by a higher provision for loan losses. Even though the quality of the Bank's loan portfolio remains very high, the loan loss provision was made to strengthen the loss reserve in view of the increase in loans outstanding and changes in the composition of the loan portfolio. The margin improvement was due primarily to lower interest expense and an increase in the yield on interest earning assets. The decline in total deposits from year end levels was due to an 8% decline in interest-bearing deposits partially offset by a 19% increase in non-interest bearing deposits. Management continues to focus on loan growth along with growth of non-interest bearing transaction accounts."

Net interest income increased by 6.3% to $827,000 for the quarter ended September 30, 2014, from $778,000 for quarter ended September 30, 2013. Total interest and dividend income increased $23,000, or 2.4%, for the quarter ended September 30, 2014 compared to the quarter ended September 30, 2013. Total interest expense decreased $26,000, or 16.1%, for the quarter ended September 30, 2014 compared to the quarter ended September 30, 2013. The average rate paid for deposits and the average balance of our interest bearing deposits decreased for the quarter ended September 30, 2014 as compared to the quarter ended September 30, 2013 resulting in lower interest expense for the quarter. The net interest margin increased to 3.45% for the quarter ended September 30, 2014 as compared to 3.04% for the quarter ended September 30, 2013.

The loan loss provision for the quarter ended September 30, 2014 was $11,000, compared to none for the quarter ended September 30, 2013. The Company had no recoveries or charge-offs for the quarters ended September 30, 2014 and 2013.

Non-interest income decreased to $38,000 for the quarter ended September 30, 2014 from $42,000 for the quarter ended September 30, 2013. The decrease in non-interest income was due to a decrease in secondary market loan income offset by an increase in service charges.

Non-interest expense decreased 3.2% to $789,000 for the quarter ended September 30, 2014 from $815,000 for the quarter ended September 30, 2013. The decrease in non-interest expense was due primarily to decreases in salaries and employee benefits, data processing and advertising and promotional expenses during the quarter ended September 30, 2014 compared to the prior year period.

Income tax expense for the quarter ended September 30, 2014 was $31,000 as compared to $2,000 for the quarter ended September 30, 2013. This increase is primarily due to an increase in the Company's pre-tax income.

For the nine months ended September 30, 2014, net interest income decreased 0.9% to $2.4 million from $2.5 million for the nine months ended September 30, 2013. This decrease was due primarily to a decrease in the average balance of loans and interest bearing deposits combined with a lower average rate on interest earning assets, partially offset by a higher average balance of investment securities for the nine months ended September 30, 2014 as compared to the nine months ended September 30, 2013. Total interest expense decreased $89,000, or 17.7%, for the nine months ended September 30, 2014 compared to the nine months ended September 30, 2013. This decline is attributable to both a decrease in the average rate paid for deposits as well as a decrease in the average balance of our interest bearing deposits for the nine months ended September 30, 2014 compared to the nine months ended September 30, 2013. The net interest margin increased slightly to 3.36% for the nine months ended September 30, 2014 from 3.34% for the nine months ended September 30, 2013.

During the nine months ended September 30, 2014, provisions for loan and lease losses were $31,000 compared to provisions of $13,000 during the nine months ended September 30, 2013. The Company reported no net charge-offs for the nine months ended September 30, 2014 and September 30, 2013.

Non-interest expense for the nine months ended September 30, 2014 decreased $69,000, or 2.8%, to $2.4 million compared to $2.5 million for the nine months ended September 30, 2013. The decrease in non-interest expense was due primarily to decreases in advertising and promotional expenses, salaries and employee benefits, professional fees and other operating expenses. Other operating expenses were lower due to declines in foreclosure expenses, franchise and bank shares tax and directors' fees, offset slightly by increases in regulatory assessments and insurance expense.

For the nine months ended September 30, 2014, income tax expense was $60,000 compared to $36,000 for the nine months ended September 30, 2013. Income tax expenses are computed by applying the statutory rate to federal taxable income, which consists of financial statement income before taxes, increased by the amount of permanent income tax differences for the period.

The Company's total consolidated assets at September 30, 2014 were $103.2 million compared to $106.2 million at December 31, 2013, a decrease of $3.0 million, or 2.8%. Interest bearing cash decreased by $6.6 million, or 71.6%, during the nine months ended September 30, 2014. Investment securities decreased by $657,000, or 6.3%, primarily as a result of maturities and repayments. These decreases funded the 5.6% increase in net loans to $83.9 million at September 30, 2014 from $79.4 million at December 31, 2013. The increase in net loans reflects increases of $2.6 million in commercial real estate loans, $2.3 million in commercial and industrial loans, $961,000 in residential construction loans, and $257,000 in HELOC and consumer loans. These increases are offset by a decrease of $1.6 million in residential mortgage loans. Total deposits decreased 5.4% to $78.8 million at September 30, 2014 from $83.3 million at December 31, 2013, reflecting decreases of $2.6 million in money market and interest bearing checking accounts, $3.4 million in certificates of deposit and $33,000 in savings accounts offset slightly by an increase of $1.5 million in non-interest bearing demand deposits. As of September 30, 2014, the Bank had outstanding advances of $1.5 million from the FHLB of Dallas compared to none as of December 31, 2013. Advances from the FHLB are collateralized by loans or investments and are utilized as a source of funding for the Bank.

Non-performing assets, defined as non-accrual loans, accruing loans past due 90 days or more and other real estate owned, remained at 0.2% of total assets, totaling $241,000 at September 30, 2014, compared to $259,000 at December 31, 2013. The non-performing assets at September 30, 2014 consisted of three loans secured by first mortgages on one-to-four family residential real estate. Our allowance for loan and lease losses was $672,000, or 0.80%, of total loans at September 30, 2014, and $641,000, or 0.80%, of total loans at December 31, 2013. 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 September 30, 2014 and December 31, 2013, there was no other real estate owned.

The Company's total stockholders' equity decreased slightly to $21.8 million as of September 30, 2014 from $22.0 million as of December 31, 2013. During the nine months ended September 30, 2014, the Company repurchased 32,137 shares of its common stock as treasury stock for an aggregate cost of $564,000. An additional 10,410 shares are available under the Company's fourth stock repurchase program and 90,000 shares are available under the Company's fifth stock repurchase program which will commence upon conclusion of the fourth repurchase program. The Company's book value per share increased to $22.78 at September 30, 2014 from $22.30 at December 31, 2013 due to our net income for the nine month period and our stock repurchases. 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)

September 30, December 31,
2014 2013
------------- -------------
(Unaudited)
ASSETS

Cash - Non-Interest Bearing $ 731 $ 1,071
Cash - Interest Bearing 2,629 9,271
------------- -------------

TOTAL CASH AND CASH EQUIVALENTS 3,360 10,342

Certificates of Deposit 100 100
Securities - Available For Sale 9,732 10,389
Loans Receivable, Net of Allowances for Loan
Losses of $672,000 at September 30, 2014 and
$641,000 at December 31, 2013 83,894 79,424
Accrued Interest Receivable 242 237
Investment in FHLB Stock 104 41
Investment in FNBB Stock 210 210
Premises and Equipment, Net 4,927 4,874
Deferred Income Taxes 353 318
Prepaid Expenses and Other Assets 254 259
------------- -------------
TOTAL ASSETS $ 103,176 $ 106,194
============= =============

LIABILITIES AND EQUITY
LIABILITIES
Deposits
Non-Interest Bearing $ 9,371 $ 7,847
Interest Bearing 69,449 75,474
------------- -------------
Total Deposits 78,820 83,321
------------- -------------

Escrow Balances 702 680
FHLB Advances 1,500 -
Accrued Interest Payable 35 39
Accounts Payable and Other Liabilities 363 140
------------- -------------
TOTAL LIABILITIES 81,420 84,180
------------- -------------



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; 955,194
and 987,331 shares outstanding at September
30, 2014 and December 31, 2013, respectively 11 11
Additional Paid in Capital 10,939 10,834
Treasury Stock at cost - 158,140 and 126,003
shares at September 30, 2014 and December 31,
2013, respectively (2,476) (1,912)
Unallocated Common Stock held by:
Employee Stock Ownership Plan (686) (712)
Recognition and Retention Plan (167) (200)
Accumulated Other Comprehensive Income (Loss),
Net of Tax Effects (3) (95)
Retained Earnings 14,138 14,088
------------- -------------

TOTAL EQUITY 21,756 22,014
------------- -------------
TOTAL LIABILITIES AND EQUITY $ 103,176 $ 106,194
============= =============



Hibernia Bancorp, Inc. and Subsidiary
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)

Three Months Ended Nine Months Ended
September 30, September 30,
--------------------- ---------------------
2014 2013 2014 2013
---------- ---------- ---------- ----------
(Unaudited) (Unaudited)

Total Interest and Dividend
Income $ 962 $ 939 $ 2,853 $ 2,964

Total Interest Expense 135 161 415 504
---------- ---------- ---------- ----------

Net Interest Income 827 778 2,438 2,460

Provision For Loan Losses 11 - 31 13
---------- ---------- ---------- ----------

Net Interest Income After
Provision For Loan Losses 816 778 2,407 2,447

Total Non-Interest Income 38 42 123 120

Non-Interest Expenses
Salaries and Employee
Benefits 383 395 1,179 1,199
Occupancy Expenses 133 129 388 375
Data Processing 89 101 307 299
Advertising and Promotional
Expenses 24 35 71 106
Professional Fees 40 38 122 139
Other Non-Interest Expenses 120 117 353 371
---------- ---------- ---------- ----------

Total Non-Interest Expenses 789 815 2,420 2,489
---------- ---------- ---------- ----------

Income Before Income Taxes 65 5 110 78

Income Tax Expense 31 2 60 36
---------- ---------- ---------- ----------

NET INCOME $ 34 $ 3 $ 50 $ 42
========== ========== ========== ==========

INCOME PER COMMON SHARE
Basic $ 0.04 $ 0.01 $ 0.06 $ 0.05
Diluted $ 0.04 $ 0.01 $ 0.05 $ 0.05

CONTACT:
A. Peyton Bush, III
President and Chief Executive Officer

Donna T. Guerra
Chief Operating Officer and Chief Financial Officer
504-522-3203

MarketWire

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