NEW ORLEANS, LA--(Marketwired - May 8, 2013) - Hibernia Bancorp, Inc. (the "Company") (OTCBB: [ HIBE ]), the holding company of Hibernia Bank (the "Bank"), today reported net income of $26,000 for the quarter ended March 31, 2013 compared to net income of $51,000 for the quarter ended March 31, 2012. Earnings per basic and diluted share for the quarter ended March 31, 2013 were $0.03, compared to $0.05 per basic and diluted share for the quarter ended March 31, 2012. 

A. Peyton Bush, III, President and Chief Executive Officer of the Company and the Bank, stated, "Hibernia, like many community banks, was affected by low interest rates and net interest margin compression during the first quarter. We made the decision to curtail long term fixed rate residential mortgage lending for our own portfolio and shift our emphasis to the origination of mortgages for the secondary market. As a result of that decision and slower growth in commercial loan volume, net loans decreased slightly during the first quarter of 2013. Our focus going forward will be on developing commercial loan and deposit business and generating fee income from our mortgage loan business. This strategy is consistent with our goal of reducing interest rate risk and diversifying our balance sheet."

Net interest income decreased 1.7% to $853,000 for the quarter ended March 31, 2013, from $868,000 for quarter ended March 31, 2012. This was due to a decrease in interest income and an increase in interest expense. Total interest and dividend income decreased $11,000, or 1.1%, for the quarter ended March 31, 2013 compared to the quarter ended March 31, 2012. This decrease was due primarily to a decrease in the average rate we earned on loans and a decrease in the average balance of our investment securities. Total interest expense increased $4,000, or 2.4%, for the quarter ended March 31, 2013 compared to the quarter ended March 31, 2012. Although the average rate paid for deposits decreased, the average balance of our interest bearing deposits for the quarter ended March 31, 2013 increased as compared to the average balance for the quarter ended March 31, 2012.

The Company's loan loss provision for the quarter ended March 31, 2013 was $13,000, compared to $32,000 for the quarter ended March 31, 2012. The Company reported net charge-offs of $11,000 for the quarter ended March 31, 2013 and no net charge-offs for the quarter ended March 31, 2012.

Non-interest income decreased to $32,000 for the quarter ended March 31, 2013 from $43,000 for the quarter ended March 31, 2012. The decrease in non-interest income was due to reduced net rental income, which reflected higher occupancy expenses in the first quarter of 2013 as compared to the first quarter of 2012. Non-interest expense increased 4.7% to $827,000 for the quarter ended March 31, 2013 from $790,000 for the quarter ended March 31, 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.

Hibernia Bancorp's total consolidated assets at March 31, 2013 were $103.9 million compared to $101.9 million at December 31, 2012. Purchases of investment securities of $1.0 million, net of maturities and repayments, resulted in an increase of $898,000 in investment securities. Interest bearing cash increased by $1.4 million during the quarter ended March 31, 2013. These increases were funded by a decline in net loans to $87.3 million at March 31, 2013 from $87.7 million at December 31, 2012, and an increase in deposits of $2.4 million. Partially offsetting these funding sources was a $422,000 decrease in advance payments by borrowers for taxes and insurance. The decrease in net loans reflects a $1.7 million decrease in residential mortgage and residential construction loans, partially offset by an increase of $1.3 million in commercial real estate loans. Total deposits increased 3.1% to $81.3 million at March 31, 2013 from $78.9 million at December 31, 2012, reflecting increases of $2.6 million in money market and interest bearing checking accounts and $1.2 million in savings accounts. These increases were partially offset by a $1.5 million decrease in non-interest bearing demand deposit accounts.

Non-performing assets, defined as non-accrual loans, accruing loans past due 90 days or more and other real estate owned, totaled $870,000, or 0.8%, of total assets at March 31, 2013, compared to $715,000, or 0.7%, of total assets, at December 31, 2012. The non-performing assets at March 31, 2013 consisted of five loans secured by first mortgages on one-to-four family residential real estate and a one-to-four family residential property acquired through deed in lieu of payment. Our allowance for loan and lease losses was $630,000, or 0.72%, of total loans at March 31, 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 and does not expect to incur further losses on the disposition of the other real estate owned. 

The Company's total stockholders' equity changed only slightly, totaling approximately $22.0 million as of March 31, 2013 and December 31, 2012. During the quarter ended March 31, 2013, the Company repurchased 5,000 shares of its common stock as treasury stock for an aggregate cost of $84,000 which leaves 16,100 shares remaining to be repurchased under the Company's third stock repurchase program. The Company's book value per share increased to $22.17 at March 31, 2013 from $22.08 at December 31, 2012 due to our net income for the 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 ].