NEW ORLEANS, LA--(Marketwired - Nov 6, 2013) - Hibernia Bancorp, Inc. (the "Company") (
A. Peyton Bush, III, President and Chief Executive Officer of the Company and the Bank, stated, "Declining net interest margins continued to impact earnings in the third quarter. The volume of loans outstanding has also declined since year end 2012 putting further pressure on net interest income. Given today's low rate environment and the uncertainty regarding future rate movements we have elected not to compete aggressively for long term fixed rate loans that would increase Hibernia's exposure to rapidly rising rates, especially in those situations where yields would not adequately compensate for the associated credit risk. We will continue to pursue lending opportunities that meet the Bank's standards and we are committed to maintaining the high quality of our loan portfolio."
Net interest income decreased 13.1% to $778,000 for the quarter ended September 30, 2013, from $895,000 for quarter ended September 30, 2012. This was due to a decrease in interest and dividend income. Total interest and dividend income decreased $134,000, or 12.5%, for the quarter ended September 30, 2013 compared to the quarter ended September 30, 2012. This decrease was due primarily to a decrease in the average rate we earned on loans and investment securities. Total interest expense decreased $17,000, or 9.6%, for the quarter ended September 30, 2013 compared to the quarter ended September 30, 2012. Although the average balance of our interest bearing deposits for the quarter ended September 30, 2013 increased as compared to the average balance for the quarter ended September 30, 2012, the average rate paid for deposits decreased resulting in lower interest expense for the period. The net interest margin decreased to 3.04% for the three months ended September 30, 2013 from 3.74% for the three months ended September 30, 2012.
The Company made no loan loss provision for the quarter ended September 30, 2013, compared to $32,000 for the quarter ended September 30, 2012. The Company reported no recoveries and no charge-offs for the quarters ended September 30, 2013 and September 30, 2012.
Non-interest income remained level at $42,000 for the quarter ended September 30, 2013 and the quarter ended September 30, 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 increased 0.9% to $815,000 for the quarter ended September 30, 2013 from $808,000 for the quarter ended September 30, 2012. The increase in non-interest expense was due primarily to increases in employee salary and benefits expense, franchise and shares taxes, and depreciation expenses. These increases were partially offset by decreases in professional fees, advertising and promotional expenses and other real estate expense.
Income tax expense for the quarter ended September 30, 2013 was $2,000 as compared to $50,000 for the quarter ended September 30, 2012. The decrease in quarterly taxes was primarily due to a decrease in pre-tax income.
For the nine months ended September 30, 2013, net interest income decreased 6.6% to $2.5 million from $2.6 million for the nine months ended September 30, 2012. This decrease was due primarily to a decrease in the average rate we earned on loans and investment securities, partially offset by higher average loan volume in the nine months ended September 30, 2013 as compared to the nine months ended September 30, 2012. Total interest expense decreased 3.3% for the nine months ended September 30, 2013 to $504,000 compared to $521,000 for the nine months ended September 30, 2012. The decrease in the average rate paid for deposits for the nine months ended September 30, 2013 partially offset by an increase in the average balance of our interest bearing deposits resulted in a slightly lower interest expense for the period. The net interest margin decreased to 3.34% for the nine months ended September 30, 2013 from 3.98% for the nine months ended September 30, 2012.
During the nine months ended September 30, 2013, the Company made provisions for loan and lease losses of $13,000 compared to provisions of $96,000 during the nine months ended September 30, 2012. The Company reported no net charge-offs for the nine months ended September 30, 2013 and September 30, 2012.
Non-interest expense for the nine months ended September 30, 2013 increased $92,000, or 3.8%, to $2.5 million compared to $2.4 million for the nine months ended September 30, 2012. The increase in non-interest expense was due primarily to increases in employee salary and benefits expense, franchise and shares taxes and data processing costs, partially offset by decreases in professional fees and advertising and promotional expenses.
For the nine months ended September 30, 2013, income tax expense was $36,000 compared to $125,000 for the nine months ended September 30, 2012. The decrease in year-to-date taxes was primarily due a decrease in pre-tax income.
The Company's total consolidated assets at September 30, 2013 were $108.9 million compared to $101.9 million at December 31, 2012. Purchases of investment securities of $6.1 million, net of maturities and repayments, resulted in an increase of $5.6 million in investment securities. Interest bearing cash increased by $9.9 million during the nine months ended September 30, 2013. These increases were funded by a decline in net loans to $78.7 million at September 30, 2013 from $87.7 million at December 31, 2012, and an increase in deposits of $6.2 million. The decrease in net loans reflects a $2.1 million decrease in residential mortgage and residential construction loans, and a $6.9 million decrease in commercial real estate loans due to unscheduled prepayments. Total deposits increased 7.9% to $85.1 million at September 30, 2013 from $78.9 million at December 31, 2012, reflecting increases of $6.1 million in money market and interest bearing checking accounts, $1.6 million in savings accounts, and $203,000 in non-interest bearing demand deposits offset by a decrease of $1.7 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 $181,000, or 0.2%, of total assets at September 30, 2013, compared to $715,000, or 0.7%, of total assets at December 31, 2012. The non-performing assets at September 30, 2013 consisted of two loans secured by first mortgages on one-to-four family residential real estate. Our allowance for loan and lease losses was $641,000, or 0.81%, of total loans at September 30, 2013, and $628,000, or 0.71%, 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 September 30, 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 September 30, 2013 and December 31, 2012. During the nine months ended September 30, 2013, the Company repurchased 6,353 shares of its common stock as treasury stock for an aggregate cost of $105,000 which leaves 14,747 shares remaining to be repurchased under the Company's stock repurchase program. The Company's book value per share increased to $22.25 at September 30, 2013 from $22.08 at December 31, 2012 due to our net income for the nine month 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) | ||||||||
| September 30, | December 31, | |||||||
| 2013 | 2012 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Cash - Non-Interest Bearing | $ | 1,262 | $ | 647 | ||||
| Cash - Interest Bearing | 16,554 | 6,618 | ||||||
| TOTAL CASH AND CASH EQUIVALENTS | 17,816 | 7,265 | ||||||
| Certificates of Deposit | 100 | 100 | ||||||
| Securities - Available For Sale | 6,404 | 854 | ||||||
| Loans Receivable, Net of Allowances for Loan Losses of $641,000 and $628,000 as of September 30, 2013 and December 31, 2012, respectively | 78,695 | 87,721 | ||||||
| Accrued Interest Receivable | 226 | 257 | ||||||
| Investment in FHLB Stock | 41 | 36 | ||||||
| Investment in FNBB Stock | 210 | 210 | ||||||
| Prepaid Expenses and Other Assets | 205 | 193 | ||||||
| Premises and Equipment, Net | 4,937 | 4,941 | ||||||
| Deferred Income Taxes | 305 | 286 | ||||||
| TOTAL ASSETS | $ | 108,939 | $ | 101,863 | ||||
| LIABILITIES AND EQUITY | ||||||||
| LIABILITIES | ||||||||
| Deposits | ||||||||
| Non-Interest Bearing | $ | 6,222 | $ | 6,019 | ||||
| Interest Bearing | 78,900 | 72,889 | ||||||
| Total Deposits | 85,122 | 78,908 | ||||||
| Escrow Balances | 1,547 | 727 | ||||||
| Accrued Interest Payable | 41 | 51 | ||||||
| Accounts Payable and Other Liabilities | 207 | 191 | ||||||
| TOTAL LIABILITIES | 86,917 | 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; 989,531 and 995,884 shares outstanding at September 30, 2013 and December 31, 2012, respectively | 11 | 11 | ||||||
| Additional Paid in Capital | 10,800 | 10,695 | ||||||
| Treasury Stock at cost - 123,803 and 117,450 shares at September 30, 2013 and December 31, 2012, respectively | (1,872 | ) | (1,767 | ) | ||||
| Unallocated Common Stock held by: | ||||||||
| Employee Stock Ownership Plan | (721 | ) | (748 | ) | ||||
| Recognition and Retention Plan | (200 | ) | (231 | ) | ||||
| Accumulated Other Comprehensive Income (Loss), Net of Tax Effects | (25 | ) | 39 | |||||
| Retained Earnings | 14,029 | 13,987 | ||||||
| TOTAL EQUITY | 22,022 | 21,986 | ||||||
| TOTAL LIABILITIES AND EQUITY | $ | 108,939 | $ | 101,863 | ||||
| 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, | |||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||
| Total Interest and Dividend Income | $ | 939 | $ | 1,073 | $ | 2,964 | $ | 3,156 | ||||||
| Total Interest Expense | 161 | 178 | 504 | 521 | ||||||||||
| Net Interest Income | 778 | 895 | 2,460 | 2,635 | ||||||||||
| Provision For Loan Losses | - | 32 | 13 | 96 | ||||||||||
| Net Interest Income After Provision For Loan Losses | 778 | 863 | 2,447 | 2,539 | ||||||||||
| Total Non-Interest Income | 42 | 42 | 120 | 116 | ||||||||||
| Non-Interest Expenses | ||||||||||||||
| Salaries and Employee Benefits | 395 | 372 | 1,199 | 1,121 | ||||||||||
| Occupancy Expenses | 129 | 123 | 375 | 368 | ||||||||||
| Data Processing | 101 | 97 | 299 | 276 | ||||||||||
| Advertising and Promotional Expenses | 35 | 48 | 106 | 125 | ||||||||||
| Professional Fees | 38 | 57 | 139 | 174 | ||||||||||
| Other Non-Interest Expenses | 117 | 111 | 371 | 333 | ||||||||||
| Total Non-Interest Expenses | 815 | 808 | 2,489 | 2,397 | ||||||||||
| Income Before Income Taxes | 5 | 97 | 78 | 258 | ||||||||||
| Income Tax Expense | 2 | 50 | 36 | 125 | ||||||||||
| NET INCOME | $ | 3 | $ | 47 | $ | 42 | $ | 133 | ||||||
| INCOME PER COMMON SHARE | ||||||||||||||
| Basic | $ | 0.01 | $ | 0.05 | $ | 0.05 | $ | 0.14 | ||||||
| Diluted | $ | 0.01 | $ | 0.05 | $ | 0.05 | $ | 0.14 | ||||||
Contact Information:
CONTACT:
A. Peyton Bush, III, President and Chief Executive Officer
Donna T. Guerra, Chief Financial Officer
504-522-3203