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Louisiana Bancorp, Inc. Announces Earnings for the Fourth Quarter and Year

Louisiana Bancorp, Inc. Announces Earnings for the Fourth Quarter and Year

METAIRIE, La., Feb. 1, 2013 (GLOBE NEWSWIRE) -- Louisiana Bancorp, Inc. (the
"Company") (Nasdaq:LABC), the holding company for Bank of New Orleans (the
"Bank"), announced today that the Company's net income for the quarter ended
December 31, 2012 was $725,000, or $0.26 per diluted share, an increase of
$140,000 from the fourth quarter of 2011. Net interest income was
approximately $2.5 million during each of the respective three month periods
ended December 31, 2012 and 2011. Non-interest income for the December 31,
2012 quarter increased by $450,000 compared to the December 31, 2011 quarter
due primarily to an increase in commissions earned on brokered loans and an
increase in gains on loans sold. For the year ended December 31, 2012, the
Company reported net income of $2.5 million, or $0.90 per diluted share,
compared to net income of $2.1 million, or $0.70 per diluted share for the
year ended December 31, 2011.

Lawrence J. LeBon, III, Chairman, President and Chief Executive Officer of the
Company and the Bank, stated: "Upon completing a successful and profitable
2012, the Board and management of Louisiana Bancorp, Inc. look forward to the
opportunities that the new year will present. We have benefitted from the
conservative operating strategies and capital management philosophy that has
been the cornerstone of our business model over the past five years. The best
reflection of these principles is found in the growth of our tangible book
value per share, which increased during 2012 by $1.13 to $18.79.

Total assets were $311.9 million at December 31, 2012, a decrease of $1.3
million compared to December 31, 2011. During the previous twelve month
period, cash and cash equivalents decreased by $16.9 million to $10.6 million
at December 31, 2012. At December 31, 2011, the Company's cash position was
higher than normal due to a timing difference between the cash flows provided
from maturing investments and their reinvestment in January 2012. Total
securities available-for-sale were $12.1 million at December 31, 2012, a
decrease of $10.6 million compared to December 31, 2011. Total securities
held-to-maturity increased by $7.9 million during the year, to $67.4 million,
at December 31, 2012. This increase in securities held-to-maturity was
primarily due to the purchase of $27.4 million in US Agency issued CMOs and
$4.0 million in US Agency issued mortgage-backed securities. These purchases
were partially offset by $23.3 million in repayments of principal on
mortgage-backed securities and CMOs. Net loans receivable were $213.2 million
at December 31, 2012, an increase of $17.5 million, or 9.0%, compared to
December 31, 2011. During the year ended December 31, 2012, our first mortgage
loans secured by single family residential loans increased by $1.8 million,
our funded home equity loans and lines increased by $7.8 million, our loans
secured by multifamily residential collateral increased by $3.1 million, and
our first mortgage loans secured by non-residential commercial real estate
increased by $6.3 million.

Total deposits were $196.2 million at December 31, 2012 compared to $194.3
million at December 31, 2011. Non-interest bearing deposits increased during
the twelve month period by $4.6 million, to $14.3 million, and
interest-bearing deposits decreased by $2.7 million, to $181.9 million. Total
Federal Home Loan Bank advances and other borrowings were $53.5 million at
December 31, 2012, a decrease of $3.7 million from December 31, 2011.

Total shareholders' equity was $56.7 million at December 31, 2012, a decrease
of $814,000 from December 31, 2011. During the twelve months ended December
31, 2012, the Company acquired 319,868 shares of its common stock at a total
cost of $5.2 million pursuant to its repurchase plans. Additionally, the
Company reissued 80,149 shares of treasury stock with an average cost basis of
$1.1 million, following the exercise of stock options by several directors and
a former employee. The resulting net effect of these transactions on our
treasury stock during the year ended December 31, 2012 was an increase of $4.1
million. The increase in our treasury stock during 2012 was partially offset
by net income of $2.5 million, and the release of 44,984 shares held by the
Company's Recognition and Retention Plan Trust, with a total cost basis of
$567,000, which became vested and were released to plan participants during
2012. The Bank's tier 1 leverage ratio was 14.03% at December 31, 2012
compared to 15.00% at December 31, 2011. This decrease in the Bank's Tier 1
leverage ratio was primarily due to a $6.0 million dividend paid by the Bank
to the Company during the fourth quarter of 2012. Tier 1 risk-based capital
and total risk-based capital at the bank level were 25.39% and 26.50%,
respectively, at December 31, 2012, and 29.32% and 30.38%, respectively, at
December 31, 2011.

Net interest income was approximately $2.5 million during the fourth quarter
of 2012 and the fourth quarter of 2011.During the fourth quarter of 2012,
interest income was $3.4 million, a decrease of $235,000 compared to the
fourth quarter of 2011.This decrease in interest income between the
respective quarterly periods was primarily due to a 32 basis point decrease in
the average yield on our interest-earning assets. The average yield on our
interest-earning assets was 4.40% and 4.72%, respectively, for the quarterly
periods ended December 31, 2012 and 2011.Interest income on loans receivable
was $2.7 million during the fourth quarter of 2012, a decrease of $24,000
compared to the fourth quarter of 2011.The average balance of our loans
receivable increased by $19.4 million during the fourth quarter of 2012
compared to the fourth quarter of 2011; however, the average yield on loans
receivable decreased by 56 basis points between the respective quarterly
periods.This decrease in average yield was primarily due to record low
interest rates on residential mortgage loans originated during the period, and
the repayment of certain relatively higher yielding seasoned mortgage loans in
our portfolio as customers refinanced their mortgage loans in the current
interest rate environment.The average balance of our mortgage-backed
securities and CMOs increased by $11.1 million while the average yield on
these securities decreased by 127 basis points during the fourth quarter of
2012 compared to the fourth quarter of 2011, resulting in a decrease of
$126,000 in interest income earned on mortgage-backed securities and
CMOs.Interest income on investment securities during the fourth quarter of
2012 was $38,000, at an average yield of 2.38%, compared to $119,000, at an
average yield of 1.69%, during the fourth quarter of 2011.

During the twelve months ended December 31, 2012, net interest income was
$10.0 million, an increase of $186,000 compared to the twelve months ended
December 31, 2011.Interest income was $14.1 million and $14.9 million,
respectively, for the annual periods ended December 31, 2012 and December 31,
2011.This decrease in interest income was due to a $1.4 million decrease in
the average balance of our interest-earnings assets, and a 22 basis point
decrease in the average yield on interest-earning assets.Interest income on
our loans receivable was $11.2 million for the year ended December 31, 2012
compared to $11.0 million for the year ended December 31, 2011.The average
balance of our loans receivable increased by $22.5 million during the twelve
months ended December 31, 2012 compared to the twelve months ended December
31, 2011.The benefit derived by this increase in the average balance of our
loans was largely offset by a 54 basis point decrease in the average yield
earned on our loans receivable.During 2012, the average balance of our
mortgage-backed securities and CMOs increased by $16.1 million compared to
2011, while the average yield of our mortgage-backed securities and CMOs
decreased by 135 basis points, resulting in a decrease in interest income of
$387,000.The Company earned $151,000 on an average investment securities
portfolio of $6.8 million during 2012 compared to $694,000 on an average
investment securities portfolio $43.7 million during 2011.

Total interest expense was $922,000, with our interest-bearing liabilities
having an average cost of 1.54%, during the fourth quarter of 2012, compared
to $1.2 million and an average cost of 1.93% for the fourth quarter of
2011.The average rate paid on interest-bearing deposits was 1.02% during the
quarter ended December 31, 2012, a decrease of 29 basis points from the
quarter ended December 31, 2011.Interest expense on borrowings was $456,000
at an average cost of 3.15% during the fourth quarter of 2012, and $562,000 at
an average cost of 3.84% during the fourth quarter of 2011. The net interest
rate spread between our interest-earning assets and our interest-bearing
liabilities was 2.86% for the fourth quarter of 2012, compared to 2.79% for
the fourth quarter of 2011.Our net interest margin, which expresses net
interest income as a percentage of average interest-earning assets, was 3.20%
for both three month periods ended December 31, 2012, and December 31, 2011.

Total interest expense for the year ended December 31, 2012 was $4.2 million,
a decrease of $942,000 compared to the year ended December 31, 2011.Average
interest-bearing liabilities were $244.8 million during 2012, compared to
$245.9 million during 2011.The average cost of our interest-bearing
liabilities was 1.71% for the twelve months ended December 31, 2012, compared
to 2.09% for the twelve months ended December 31, 2011.The net interest rate
spread between our interest-earning assets and interest-bearing liabilities
was 2.85% for 2012, an increase of 16 basis points compared to 2011.Our net
interest margin increased by seven basis points to 3.21% for the year ended
December 31, 2012 compared to 3.14% for the year ended December 31, 2011.

The Company recorded a provision for loan losses of $20,000 during the fourth
quarter of 2012 compared to a $6,000 net recovery of its provision for loan
losses during the fourth quarter of 2011.Our allowance for loan losses was
$1.9 million at December 31, 2012, or 132.02% of our non-performing loans at
such date.

For the years ended December 31, 2012 and December 31, 2011, our provisions
for loan losses were $246,000 and $53,000, respectively.At December 31, 2012,
total non-performing loans were $1.5 million, or 0.68% of total loans, and
total non-performing assets were $2.1 million, or 0.67% of total
assets.Stated as a percentage of total loans receivable, our allowance for
loan losses was 0.89% and 0.91%, respectively, at December 31, 2012 and 2011.

Non-interest income for the fourth quarter of 2012 was $781,000, an increase
of $450,000 from the fourth quarter of 2011.Our customer service fees, which
are primarily comprised of fees earned on transaction accounts, loan servicing
fees, and brokered loan commissions, were $213,000 during the fourth quarter
of 2012, an increase of $64,000 from the comparable 2011 period.Gains on the
sale of mortgage loans were $540,000 during the fourth quarter of 2012
compared to $160,000 during the fourth quarter of 2011.Other non-interest
income was $28,000 and $22,000, respectively, for the three month periods
ended December 31, 2012 and 2011.

For the years ended December 31, 2012 and 2011, total non-interest income was
$2.1 million and $1.1 million, respectively.During 2012, customer service
fees increased by $253,000, and gains on the sale of loans increased by
$845,000 compared to the 2011 period.There were no securities sold during the
year ended December 31, 2012, compared to the sale of $1.1 million in
mortgage-backed securities which resulted in gains of $72,000 during the year
ended December 31, 2011.Other non-interest income was $123,000 during 2012
and $88,000 during 2011.

Non-interest expense was $2.1 million for the quarter ended December 31, 2012
compared to $1.9 million for the quarter ended December 31, 2011.Salaries and
employee benefits expense was $1.4 million during the fourth quarter of 2012,
an increase of $180,000 compared to the fourth quarter of 2011.Occupancy
expenses were $340,000 and $264,000 for the respective quarters ended December
31, 2012 and 2011.The increases in our salaries and employee benefits expense
and our occupancy expenses were primarily due to the staffing and operating
expenses associated with our new full service branch, which opened in May
2012. At December 31, 2012, the Company had 71 full-time equivalent employees
compared to 63 full-time equivalent employees at December 31, 2011.The
Louisiana bank shares tax was $44,000 during the fourth quarter of 2012, a
decrease of $29,000 compared to the fourth quarter of 2011.This decrease was
primarily due to modifications to the assessment formula used by the taxing
authority.FDIC deposit insurance premiums were $38,000 for both quarterly
periods ended December 31, 2012 and 2011.The net cost associated with our
OREO operations was $4,000 and $3,000, respectively, for the quarters ended
December 31, 2012 and 2011.Advertising expenses were $79,000 and $38,000,
respectively, and other non-interest expenses were $227,000 and $295,000,
respectively, for the quarters ended December 31, 2012 and 2011. 

Total non-interest expense for the year ended December 31, 2012 and 2011 was
$8.0 million and $7.5 million, respectively.Salaries and employee benefits
expense was $5.1 million and $4.6 million, respectively, for the twelve month
periods ended December 31, 2012 and 2011.Occupancy expenses were $1.3 million
and $1.1 million, and our Louisiana bank shares tax was $218,000 and $230,000
for the respective annual periods ended December 31, 2012 and 2011.Staffing
and operating costs increased primarily as a result of the opening of the new
full-service branch in the second quarter of 2012. The Bank's FDIC deposit
insurance premiums were $152,000 for 2012, a decrease of $14,000 compared to
2011.The net cost of OREO operations during 2012 was $103,000, a $210,000
reduction compared to 2011.Total OREO charge-offs were $80,000 in 2012
compared to $279,000 in 2011.Advertising expenses increased by $98,000 during
2012 compared to 2011 due primarily to our marketing campaigns associated with
our new branch opening and promotional efforts related to the development of
our checking account products.Other non-interest expenses were $914,000 for
2012, a decrease of $10,000 compared to the 2011.

Income tax expense was $394,000 based on pre-tax income of $1.1 million during
the fourth quarter of 2012 compared to income tax expense of $308,000 on
pre-tax income of $893,000 during the fourth quarter of 2011.

For the year ended December 31, 2012, the Company recorded income tax expense
of $1.3 million, an increase of $186,000 from the year ended December 31,
2011.This increase in income tax expense was primarily due to an increase in
pre-tax income of $576,000 between the respective annual periods.

This news release contains certain forward-looking statements.
Forward-looking statements can be identified by the fact that they do not
relate strictly to historical or current facts.They often include the words
"believe," "expect," "anticipate," "intend," "plan," "estimate" or words of
similar meaning, or future or conditional verbs such as "will," "would,"
"should," "could" or "may."

Forward-looking statements, by their nature, are subject to risks and
uncertainties.A number of factors ‑ many of which are beyond our control ‑
could cause actual conditions, events or results to differ significantly from
those described in the forward-looking statements.Louisiana Bancorp's Annual
Report on Form 10-K for the year ended December 31, 2011, which is available
from the SEC's website, www.sec.gov, or the Company's website,
www.bankofneworleans.net, describes some of these factors, including market
rates of interest, competition, risk elements in the loan portfolio, general
economic conditions, the level of the allowance for losses on loans,
geographic concentration of our business, risks of our growth strategy,
dependence on our management team, regulation of our business, increases in
deposit insurance premiums and actions by the U. S. government to stabilize
the financial markets.Forward-looking statements speak only as of the date
they are made.We do not undertake to update forward-looking statements to
reflect circumstances or events that occur after the date the forward-looking
statements are made or to reflect the occurrence of unanticipated events.

SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA
(Dollars in thousands, except per share amounts)
                                                                 
                           December 31,    December 31,            
                           2012            2011                    
                           (unaudited)                            
                                                                 
Selected Financial and                                            
Other Data:
Total assets                $311,862      $313,128              
Cash and cash equivalents   10,646         27,589                  
Securities                                                        
available-for-sale
Investment securities       6,384          12,394                 
Mortgage-backed securities  5,755          10,356                 
& CMOs
Securities held-to-maturity                                       
Investment securities       --             --                     
Mortgage-backed securities  67,454         59,581                 
& CMOs
Loans receivable, net       213,159        195,632                
Deposits                    196,206        194,326                
FHLB advances and other     53,454         57,113                 
borrowings
Shareholders' equity        56,706         57,520                 
                                                                 
Book Value per Share        $ 18.79         $ 17.66                 
                                                                 
                                                                 
                           Three Months Ended Dec. 31,    Year Ended Dec. 31,
                           2012            2011           2012      2011
                           (unaudited)                    (unaudited)
Selected Operating Data:                                          
Total interest income       $3,375        $3,610       $14,146 $14,902
Total interest expense      922             1,160          4,196     5,138
Net interest income         2,453           2,450          9,950     9,764
Provision for (Recovery of) 20              (6)            246       53
loan losses
Net interest income after
provision (recovery) for    2,433           2,456          9,704     9,711
loan losses
Total non-interest income   781             331            2,148     1,087
Total non-interest expense  2,095           1,894          8,003     7,525
Income before income taxes  1,119           893            3,849     3,273
Income taxes                394             308            1,342     1,156
Net income                  $725          $585         $2,507  $2,117
                                                                 
Earnings per share:                                               
Basic                       $0.28         $0.21        $0.95   $0.73
Diluted                     $0.26         $0.20        $0.90   $0.70
Weighted average shares                                           
outstanding
Basic                       2,530,688       2,721,339      2,633,317 2,902,747
Diluted                     2,676,708       2,854,830      2,774,839 3,028,033
                                                                 
                                                                 
                           Three Months Ended Dec. 31,    Year Ended Dec. 31,
                           2012            2011           2012      2011
                                                                 
Selected Operating Ratios                                         
(1):
Average yield on            4.40%           4.72%          4.56%     4.78%
interest-earning assets
Average rate on
interest-bearing            1.54%           1.93%          1.71%     2.09%
liabilities
Average interest rate       2.86%           2.79%          2.85%     2.69%
spread (2)
Net interest margin (2)     3.20%           3.20%          3.21%     3.14%
Average interest-earning
assets to average           127.83%         127.21%        126.67%   126.66%
interest-bearing
liabilities
Net interest income after
provision for loan losses   116.13%         129.67%        121.25%   129.05%
to non-interest expense
Total non-interest expense  2.66%           2.42%          2.52%     2.36%
to average assets
Efficiency ratio (3)        64.78%          68.10%         66.15%    69.35%
Return on average assets    0.92%           0.75%          0.79%     0.66%
Return on average equity    5.17%           4.11%          4.42%     3.59%
Average equity to average   17.78%          18.19%         17.85%    18.48%
assets

                                                                 
                           At or For the Quarter Ended
                           Dec. 31,        Sept. 30,      June 30, March 31,
Asset Quality Ratios (4):   2012            2012           2012      2012
Non-performing loans as a
percent of total loans      0.68%           0.33%          0.52%     0.53%
receivable (5) (6)
Non-performing assets as a
percent of total assets    0.67%           0.42%          0.55%     0.60%
(5)
Allowance for loan losses
as a percent of             132.02%         267.83%        160.87%   160.31%
non-performing loans
Allowance for loan losses
as a percent oftotal loans 0.89%           0.88%          0.84%     0.85%
receivable (6)
Net charge-offs during the
period to average loans     0.01%           0.00%          0.00%     0.05%
receivable (6) (7)
                                                                 
Capital Ratios (4):                                               
Tier 1 leverage ratio       14.03%          15.24%         14.90%    14.86%
Tier 1 risk-based capital   25.39%          28.21%         27.83%    28.86%
ratio
Total risk-based capital    26.50%          29.33%         28.89%    29.89%
ratio
                                                                 
                                                                 
(1) All operating ratios are based on average monthly balances during the
indicated periods and are annualized where appropriate.
                                                                 
(2) Average interest rate spread represents the difference between the
average yield on interest-earning assets and the average rate paid on
interest-bearing liabilities, and net interest margin represents net interest
income as a percentage of average interest-earning assets.
                                                                 
(3) The efficiency ratio represents the ratio of non-interest expense divided
by the sum of net interest income and non-interest income.
                                                                 
(4) Asset quality ratios and capital ratios are end of period ratios, except
for net charge-offs to average loans receivable.Capital ratios are for the
Bank, only.
                                                                 
(5) Non-performing assets consist of non-performing loans and real estate
owned.Non-performing loans consist of all non-accruing loans and accruing
loans 90 days or more past due.Non-performing loans are reported gross of
allowance for loan losses.
                                                                 
(6) Loans receivable are presented before the allowance for loan losses but
include deferred costs/fees.
                                                                 
(7) Net charge-offs are presented on a quarterly basis.

CONTACT: Lawrence J. LeBon, III,
         Chairman, President &
         Chief Executive Officer
        
         or
        
         John LeBlanc,
         SVP & Chief Financial Officer
         Telephone: (504) 834-1190
 
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