NEW ORLEANS, LA--(Marketwired - Nov 5, 2014) - Hibernia Bancorp, Inc. (the "Company") (
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 Information:
CONTACT:
A. Peyton Bush, III
President and Chief Executive Officer
Donna T. Guerra
Chief Operating Officer and Chief Financial Officer
504-522-3203