Hibernia Bancorp, Inc. Reports Operating Results for the Second Quarter and Six Months Ended June 30, 2017
NEW ORLEANS, La., Aug. 03, 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 $73,000 for the quarter ended June 30, 2017 compared to net income of $50,000 for the quarter ended June 30, 2016. Earnings per basic and diluted share were $0.09 for the quarter ended June 30, 2017, compared to $0.07 and $0.06, per basic and diluted share, respectively, for the quarter ended June 30, 2016. For the six months ended June 30, 2017, the Company reported net income of $156,000 compared to net income of $109,000 for the six months ended June 30, 2016. Earnings per basic and diluted share were $0.20 and $0.19, respectively, for the six months ended June 30, 2017, compared to $0.14 and $0.13, respectively, for the six months ended June 30, 2016.
For the quarter ended June 30, 2017, net interest income increased 12.6% to $1.0 million from $898,000 for quarter ended June 30, 2016. Total interest and dividend income increased $165,000, or 15.0%, for the quarter ended June 30, 2017 compared to the quarter ended June 30, 2016. The increase in interest and dividend income was primarily due to an increase in the average balance of loans, and to a lesser extent, an increase in average yields on loans, investment securities and interest-bearing cash. Total interest expense increased $52,000, or 26.1%, for the quarter ended June 30, 2017 compared to the quarter ended June 30, 2016. The increase in interest expense for the quarter ended June 30, 2017 as compared to the quarter ended June 30, 2016 was primarily due to a higher average rate on deposits, and to a lesser extent, a higher average balance of interest bearing deposits as well as an increase in volume and rate on FHLB advances. The net interest margin increased to 3.25% for the quarter ended June 30, 2017 as compared to 3.22% for the quarter ended June 30, 2016.
The Company made a $57,000 loan loss provision for the quarter ended June 30, 2017, compared to $8,000 for the quarter ended June 30, 2016. The increase in the loan loss provision in the 2017 period is due to the increasing volume of loans outstanding. The Company reported no net charge-offs for the quarters ended June 30, 2017 and 2016.
Non-interest income remained constant at $34,000 for both quarters ended June 30, 2017 and June 30, 2016. Non-interest expenses increased 3.7% to $872,000 for the quarter ended June 30, 2017 from $841,000 for the quarter ended June 30, 2016. The increase in non-interest expenses was due to increases in salaries and employee benefits, professional fees, and data processing expenses partially offset by decreases in other non-interest expenses and occupancy expenses.
For the six months ended June 30, 2017, net interest income increased 7.8% to $2.0 million from $1.8 million for the six months ended June 30, 2016. This increase was primarily due to an increase of $7.6 million in the average balance of loans for the six months ended June 30, 2017 compared to the six months ended June 30, 2016 and to a lesser extent, an increase in average yields on loans, investment securities and interest-bearing cash. Total interest expense increased $94,000, or 24.5%, for the six months ended June 30, 2017 compared to the six months ended June 30, 2016. Similar to the quarter, this increase was primarily due to a higher average rate on deposits, and to a lesser extent, a higher average balance of interest bearing deposits as well as an increase in volume and rate on FHLB advances. The net interest margin decreased slightly to 3.25% for the six months ended June 30, 2017 from 3.26% for the six months ended June 30, 2016.
During the six months ended June 30, 2017, the Company made provisions for loan losses of $57,000 compared to provisions of $32,000 during the six months ended June 30, 2016. Similar to the quarter, the increase in the loan loss provision in the 2017 period is due to the increasing volume of loans outstanding. The Company reported no net charge-offs for the six months ended June 30, 2017 and 2016.
Non-interest income remained constant at $77,000 for both the six month periods ended June 30, 2017 and June 30, 2016. Non-interest expenses for the six months ended June 30, 2017 increased $49,000, or 2.9%, to $1.72 million compared to $1.67 million for the six months ended June 30, 2016. The increase in non-interest expenses was due to increases in salaries and employee benefits, data processing expenses, and professional fees, partially offset by decreases in other non-interest expenses and occupancy expenses.
Hibernia Bancorp’s total consolidated assets at June 30, 2017 were $131.8 million compared to $124.7 million at December 31, 2016, an increase of $7.1 million, or 5.7%. The increase was primarily due to a $7.0 million, or 6.7%, increase in net loans receivable to $111.5 million at June 30, 2017 from $104.5 million at December 31, 2016. Cash and cash equivalents increased by $492,000, or 8.5%, at June 30, 2017 compared to December 31, 2016. Investment securities decreased by $484,000, or 5.5%, as a result of maturities and repayments. The increase in net loans was primarily due to a $4.3 million net increase in commercial real estate loans and a net increase of $2.9 million in loans secured by residential real estate. Total deposits increased 5.1% to $106.0 million at June 30, 2017 from $100.9 million at December 31, 2016, reflecting increases of $1.9 million in certificates of deposit, $1.3 million in money market and interest bearing checking accounts, $1.5 million in non-interest bearing demand deposits and $420,000 in savings accounts.
Non-performing assets, defined as non-accrual loans, accruing loans past due 90 days or more and other real estate owned, decreased to 0.2% from 0.3% of total assets, totaling $214,000 at June 30, 2017, compared to $316,000 at December 31, 2016. The non-performing assets at June 30, 2017 consisted of four loans secured by first mortgages on one-to-four family residential real estate. At June 30, 2017 and December 31, 2016, there was no other real estate owned.
Our allowance for loan losses was $898,000, or 0.80%, of total loans at June 30, 2017, and $841,000, or 0.80%, of total loans at December 31, 2016. Management believes that the allowance for loan losses is sufficient to cover any losses that may be incurred on its loans.
The Company’s total stockholders’ equity increased to $20.6 million as of June 30, 2017 from $20.4 million as of December 31, 2016. During the six months ended June 30, 2017, the Company repurchased 992 shares of its common stock for an aggregate cost of $19,000. An additional 61,908 shares are available under the Company’s sixth stock repurchase program. The Company’s book value per share increased to $24.38 at June 30, 2017 from $24.06 at December 31, 2016 due to our net income for the six 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.hibernia.bank.
| Hibernia Bancorp, Inc. and Subsidiary | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||||||||
| (In thousands) | ||||||||
| June 30, | December 31, | |||||||
| 2017 | 2016 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Cash - Non-Interest Bearing | $ | 842 | $ | 1,176 | ||||
| Cash - Interest Bearing | 5,434 | 4,608 | ||||||
| Total Cash and Cash Equivalents | 6,276 | 5,784 | ||||||
| Certificates of Deposit | 100 | 100 | ||||||
| Securities - Available for Sale | 8,279 | 8,763 | ||||||
| Loans Receivable, Net of Allowances for Loan | ||||||||
| Losses of $898,000 and $841,000 at June 30, 2017 | ||||||||
| and December 31, 2016, respectively | 111,476 | 104,467 | ||||||
| Accrued Interest Receivable | 317 | 266 | ||||||
| Investment in FHLB Stock | 276 | 187 | ||||||
| Investment in FNBB Stock | 210 | 210 | ||||||
| Premises and Equipment, Net | 4,194 | 4,351 | ||||||
| Deferred Income Taxes | 441 | 417 | ||||||
| Prepaid Expenses and Other Assets | 202 | 159 | ||||||
| TOTAL ASSETS | $ | 131,771 | $ | 124,704 | ||||
| LIABILITIES AND EQUITY | ||||||||
| LIABILITIES | ||||||||
| Deposits | ||||||||
| Non-Interest Bearing | $ | 10,747 | $ | 9,217 | ||||
| Interest Bearing | 95,272 | 91,698 | ||||||
| Total Deposits | 106,019 | 100,915 | ||||||
| Escrow Balances | 386 | 629 | ||||||
| FHLB Advances | 4,500 | 2,500 | ||||||
| Accrued Interest Payable | 71 | 62 | ||||||
| Accounts Payable and Other Liabilities | 198 | 248 | ||||||
| TOTAL LIABILITIES | 111,174 | 104,354 | ||||||
| EQUITY | ||||||||
| Preferred Stock, $.01 par value - 1,000,000 shares authorized; none issued | - | - | ||||||
| Common Stock, $.01 par value - 9,000,000 shares authorized; 844,851 and 845,843 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively |
8 | 8 | ||||||
| Additional Paid in Capital | 11,137 | 11,118 | ||||||
| Unallocated Common Stock held by: | ||||||||
| Employee Stock Ownership Plan | (588 | ) | (606 | ) | ||||
| Recognition and Retention Plan | (133 | ) | (133 | ) | ||||
| Accumulated Other Comprehensive Income (Loss), Net of Tax Effects | 7 | (66 | ) | |||||
| Retained Earnings | 10,166 | 10,029 | ||||||
| TOTAL EQUITY | 20,597 | 20,350 | ||||||
| TOTAL LIABILITIES AND EQUITY | $ | 131,771 | $ | 124,704 | ||||
| Hibernia Bancorp, Inc. and Subsidiary | ||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||
| (Dollars in thousands, except per share data) | ||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||
| June 30, | June 30, | |||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||
| (Unaudited) | (Unaudited) | |||||||||||
| Total Interest and Dividend Income | $ | 1,262 | $ | 1,097 | $ | 2,429 | $ | 2,193 | ||||
| Total Interest Expense | 251 | 199 | 477 | 383 | ||||||||
| Net Interest Income | 1,011 | 898 | 1,952 | 1,810 | ||||||||
| Provision for Loan Losses | 57 | 8 | 57 | 32 | ||||||||
| Net Interest Income After Provision for | ||||||||||||
| Loan Losses | 954 | 890 | 1,895 | 1,778 | ||||||||
| Total Non-Interest Income | 34 | 34 | 77 | 77 | ||||||||
| Non-Interest Expenses | ||||||||||||
| Salaries and Employee Benefits | 425 | 384 | 847 | 793 | ||||||||
| Occupancy Expenses | 123 | 134 | 243 | 268 | ||||||||
| Data Processing | 116 | 102 | 229 | 201 | ||||||||
| Professional Fees | 58 | 43 | 103 | 86 | ||||||||
| Other Non-Interest Expenses | 150 | 178 | 301 | 326 | ||||||||
| Total Non-Interest Expenses | 872 | 841 | 1,723 | 1,674 | ||||||||
| Income Before Income Taxes | 116 | 83 | 249 | 181 | ||||||||
| Income Tax Expense | 43 | 33 | 93 | 72 | ||||||||
| NET INCOME | $ | 73 | $ | 50 | $ | 156 | $ | 109 | ||||
| INCOME PER COMMON SHARE | ||||||||||||
| Basic | $ | 0.09 | $ | 0.07 | $ | 0.20 | $ | 0.14 | ||||
| Diluted | $ | 0.09 | $ | 0.06 | $ | 0.19 | $ | 0.13 | ||||
CONTACT: A. Peyton Bush, III, Chairman, President and Chief Executive Officer Donna T. Guerra, Chief Operating Officer and Chief Financial Officer 504-522-3203
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