NEW ORLEANS, Feb. 10, 2017 (GLOBE NEWSWIRE) -- Hibernia Bancorp, Inc. (the “Company”) (OTCBB:HIBE), the holding company of Hibernia Bank (“Hibernia” or the “Bank”), today reported net income of $226,000 for the year ended December 31, 2016, compared to net income of $180,000 for the year ended December 31, 2015. Earnings per basic and diluted share were $0.29 and $0.28, respectively, for the year ended December 31, 2016, compared to $0.22 and $0.21, respectively, for the year ended December 31, 2015. The Company reported net income of $68,000 for the quarter ended December 31, 2016, compared to net income of $61,000 for the quarter ended December 31, 2015. Earnings per basic and diluted share were $0.09 for the quarter ended December 31, 2016, compared to earnings per basic and diluted share of $0.08 and $0.07, respectively, for the quarter ended December 31, 2015.
Peyton Bush, III, President and Chief Executive Officer of the Company and the Bank, stated, “Net income for the fourth quarter and year ended December 31, 2016 showed modest improvement from the same periods of 2015. We experienced loan growth and higher average rates on loans in 2016, but the increase in gross interest income from loans was not fully reflected in net interest income due to an increase in our cost of funds. Our loan quality continues to be very high allowing us to reduce the Bank’s provisions for loan losses in 2016. The lower provisions were offset by non-recurring impairment expenses associated with an investment made by the Bank in 2001.”
For the year ended December 31, 2016, net interest income increased 3.5%, to $3.6 million, from $3.5 million for the year ended December 31, 2015. Total interest and dividend income increased $338,000, or 8.2%, for the year ended December 31, 2016, compared to the year ended December 31, 2015. The increase in interest and dividend income was due to an increase in loan volume as well as an increase in average loan rates. Total interest expense increased $216,000, or 35.0%, for the year ended December 31, 2016, compared to the year ended December 31, 2015. This increase is attributable to an increase in the average rate paid for deposits combined with a net increase in the average balance of our interest bearing deposits for the year ended December 31, 2016, compared to the year ended December 31, 2015. The net interest margin decreased to 3.18% for the year ended December 31, 2016 from 3.36% for the year ended December 31, 2015, primarily as a result of a 14 basis point increase in the cost of funds.
During the year ended December 31, 2016, provisions for loan and lease losses were $65,000, compared to provisions of $96,000 during the year ended December 31, 2015. The provisions in 2015 and 2016 were primarily due to the Bank’s increasing volume of loans outstanding in the respective years. The Company reported no net charge-offs for the years ended December 31, 2016 and December 31, 2015.
Non-interest income increased to $144,000 for the year ended December 31, 2016, from $132,000 for the year ended December 31, 2015. The increase in non-interest income was primarily due to higher net rental income which was impacted by increased income from a parking lot leased by the Bank to third parties.
Total non-interest expense for the year ended December 31, 2016 increased by $110,000, or 3.4%, compared to the year ended December 31, 2015. The increase in total non-interest expense was due primarily to an $89,000 increase in other non-interest expenses which included a $50,000 provision for impairment of other assets and an increase in advertising and promotional expenses. Increased data processing expenses also contributed to the increase in total non-interest expense. These increases were partially offset by decreases in occupancy expenses.
For the quarter ended December 31, 2016, net interest income decreased by 0.5%, to $907,000, from $912,000 for quarter ended December 31, 2015. Total interest and dividend income increased $56,000, or 5.2%, for the quarter ended December 31, 2016, compared to the quarter ended December 31, 2015. The increase in interest and dividend income was due to an increase in loan volume as well as an increase in average loan rates. Total interest expense increased $61,000, or 36.1%, for the quarter ended December 31, 2016, compared to the quarter ended December 31, 2015. The average balance of our interest bearing deposits and the average rate paid for deposits increased for the quarter ended December 31, 2016 as compared to the quarter ended December 31, 2015 resulting in higher interest expense for the 2016 quarter. The net interest margin decreased to 3.10% for the quarter ended December 31, 2016 compared to 3.36% for the quarter ended December 31, 2015, primarily as a result of a 17 basis point increase in the cost of funds.
The loan loss provision for the quarter ended December 31, 2016 was $15,000, compared to $32,000 for the quarter ended December 31, 2015. The Company had no recoveries or charge-offs for the quarters ended December 31, 2016 and 2015.
Non-interest income increased slightly to $34,000 for the quarter ended December 31, 2016 from $32,000 for the quarter ended December 31, 2015.
Total non-interest expense increased 1.4% to $815,000 for the quarter ended December 31, 2016 from $804,000 for the quarter ended December 31, 2015. The increase in total non-interest expenses was due primarily to an increase in other non-interest expenses and increases in salaries and employee benefits, offset by a decrease in occupancy expenses during the quarter ended December 31, 2016 compared to the prior year period. The increase in other non-interest expenses for the quarter was impacted by higher advertising expense in 2016 as compared to 2015 and a $15,000 provision for impairment of other assets in the quarter ended December 31, 2016.
The Company’s total consolidated assets at December 31, 2016 were $124.7 million, compared to $112.9 million at December 31, 2015, an increase of $11.8 million, or 10.5%. The increase in total assets was primarily due to increases in net loans receivable of $7.4 million, investment securities of $1.9 million and interest bearing cash of $2.1 million. Interest bearing cash increased 85.9%, to $4.6 million at December 31, 2016 from $2.5 million at December 31, 2015. Investment securities increased 27.1% to $8.8 million at December 31, 2016 from $6.9 million at the prior year end primarily as a result of investment purchases of $3.2 million partially offset by maturities and repayments. Net loans receivable increased 7.6% to $104.5 million at December 31, 2016 from $97.1 million at December 31, 2015. These increases in interest bearing cash, investment securities and net loans were primarily funded by an increase of $11.4 million in total deposits. The increase in net loans reflects a $13.1 million net increase in commercial loans secured by real estate and an increase of $181,000 in HELOC and consumer loans. These increases were partially offset by a net decrease of $3.7 million in residential mortgage and residential construction loans, and a $2.1 million net decrease in commercial and industrial loans. Total deposits increased 12.7% to $100.9 million at December 31, 2016 from $89.6 million at December 31, 2015, reflecting increases of $6.6 million in certificates of deposit, $4.1 million in money market and interest bearing checking accounts, $417,000 in non-interest bearing demand deposits and $212,000 in savings accounts. As of December 31, 2016 the Bank had outstanding advances of $2.5 million from the FHLB of Dallas as compared to advances of $1.5 million from the FHLB of Dallas at December 31, 2015. 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, increased slightly to 0.3% from 0.2% of total assets, totaling $316,000 at December 31, 2016, compared to $259,000 at December 31, 2015. The non-performing assets at December 31, 2016 consisted of five loans secured by first mortgages on one-to-four family residential real estate. At December 31, 2016 and 2015, there was no other real estate owned. Our allowance for loan and lease losses was $841,000, or 0.80%, of total loans at December 31, 2016, and $776,000, or 0.80%, of total loans at December 31, 2015. Management believes that the allowance for loan and lease losses is sufficient to cover any losses that may be incurred on its loans.
The Company’s total stockholders’ equity decreased to $20.4 million as of December 31, 2016 from $20.8 million as of December 31, 2015. During the year ended December 31, 2016, the Company repurchased 33,151 shares of its common stock for an aggregate cost of $667,000. An additional 62,900 shares are available under the Company’s sixth stock repurchase program. The Company’s book value per share increased to $24.06 at December 31, 2016, from $23.62 at December 31, 2015 primarily due to our net income for the year ended December 31, 2016 and our stock repurchases.
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, | ||||||||
| 2016 | 2015 | ||||||||
| (Unaudited) | |||||||||
| ASSETS | |||||||||
| Cash - Non-Interest Bearing | $ | 1,176 | $ | 624 | |||||
| Cash - Interest Bearing | 4,608 | 2,478 | |||||||
| Total Cash and Cash Equivalents | 5,784 | 3,102 | |||||||
| Certificates of Deposit | 100 | 100 | |||||||
| Securities - Available For Sale | 8,763 | 6,896 | |||||||
| Loans Receivable, Net of Allowances for Loan | |||||||||
| Losses of $841,000 at December 31, 2016 | |||||||||
| and $776,000 at December 31, 2015 | 104,467 | 97,087 | |||||||
| Accrued Interest Receivable | 266 | 238 | |||||||
| Investment in FHLB Stock | 187 | 104 | |||||||
| Investment in FNBB Stock | 210 | 210 | |||||||
| Premises and Equipment, Net | 4,351 | 4,634 | |||||||
| Deferred Income Taxes | 417 | 262 | |||||||
| Prepaid Expenses and Other Assets | 159 | 227 | |||||||
| TOTAL ASSETS | $ | 124,704 | $ | 112,860 | |||||
| LIABILITIES AND EQUITY | |||||||||
| LIABILITIES | |||||||||
| Deposits | |||||||||
| Non-Interest Bearing | $ | 9,217 | $ | 8,801 | |||||
| Interest Bearing | 91,698 | 80,756 | |||||||
| Total Deposits | 100,915 | 89,557 | |||||||
| Escrow Balances | 629 | 676 | |||||||
| FHLB Advances | 2,500 | 1,500 | |||||||
| Accrued Interest Payable | 62 | 38 | |||||||
| Accounts Payable and Other Liabilities | 248 | 323 | |||||||
| TOTAL LIABILITIES | 104,354 | 92,094 | |||||||
| EQUITY | |||||||||
| Preferred Stock, $.01 par value - 1,000,000 shares authorized; none issued | - | - | |||||||
| Common Stock, $.01 par value - 9,000,000 shares authorized; 845,843 and 878,994 shares issued and outstanding at December 31, 2016 and December 31, 2015, respectively | 8 | 9 | |||||||
| Additional Paid in Capital | 11,118 | 11,059 | |||||||
| Unallocated Common Stock held by: | |||||||||
| Employee Stock Ownership Plan | (606 | ) | (641 | ) | |||||
| Recognition and Retention Plan | (133 | ) | (133 | ) | |||||
| Accumulated Other Comprehensive (Loss) Income, Net of Tax Effects | (66 | ) | 3 | ||||||
| Retained Earnings | 10,029 | 10,469 | |||||||
| TOTAL EQUITY | 20,350 | 20,766 | |||||||
| TOTAL LIABILITIES AND EQUITY | $ | 124,704 | $ | 112,860 | |||||
| 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, | |||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||
| (Unaudited) | (Unaudited) | |||||||||||
| Total Interest and Dividend Income | $ | 1,137 | $ | 1,081 | $ | 4,457 | $ | 4,119 | ||||
| Total Interest Expense | 230 | 169 | 834 | 618 | ||||||||
| Net Interest Income | 907 | 912 | 3,623 | 3,501 | ||||||||
| Provision For Loan Losses | 15 | 32 | 65 | 96 | ||||||||
| Net Interest Income After Provision For | ||||||||||||
| Loan Losses | 892 | 880 | 3,558 | 3,405 | ||||||||
| Total Non-Interest Income | 34 | 32 | 144 | 132 | ||||||||
| Non-Interest Expenses | ||||||||||||
| Salaries and Employee Benefits | 444 | 422 | 1,624 | 1,608 | ||||||||
| Occupancy Expenses | 105 | 140 | 509 | 530 | ||||||||
| Data Processing | 109 | 105 | 417 | 398 | ||||||||
| Professional Fees | 36 | 45 | 167 | 160 | ||||||||
| Other Non-Interest Expenses | 121 | 92 | 611 | 522 | ||||||||
| Total Non-Interest Expenses | 815 | 804 | 3,328 | 3,218 | ||||||||
| Income Before Income Taxes | 111 | 108 | 374 | 319 | ||||||||
| Income Tax Expense | 43 | 47 | 148 | 139 | ||||||||
| NET INCOME | $ | 68 | $ | 61 | $ | 226 | $ | 180 | ||||
| INCOME PER COMMON SHARE | ||||||||||||
| Basic | $ | 0.09 | $ | 0.08 | $ | 0.29 | $ | 0.22 | ||||
| Diluted | $ | 0.09 | $ | 0.07 | $ | 0.28 | $ | 0.21 | ||||