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Louisiana Bancorp, Inc. Announces Earnings for the Second Quarter

Louisiana Bancorp, Inc. Announces Earnings for the Second Quarter

METAIRIE, La., Aug. 2, 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
June 30, 2013 was $994,000, or $0.38 per diluted share, an increase of
$378,000 from the second quarter of 2012. Net interest income was
approximately $2.5 million during each of the respective three month periods
ended June 30, 2013 and 2012. Our provision for loan losses was $6,000 during
the second quarter of 2013 compared to $73,000 during the second quarter of
2012. Non-interest income for the June 30, 2013 quarter increased by $436,000
compared to the June 30, 2012 quarter due primarily to an increase in gains on
loans sold and an increase in gains from other equity investments. Total
non-interest expense was $2.0 million for each of the quarterly periods ended
June 30, 2013 and 2012. For the six month period ended June 30, 2013, the
Company reported net income of $1.5 million, or $0.57 per diluted share,
compared to net income of $1.1 million, or $0.40 per diluted share, during the
six month period ended June 30, 2012.

Lawrence J. LeBon, III, Chairman, President and Chief Executive Officer of the
Company and the Bank, stated: "The Board and executive management team of the
Company are pleased to announce that our net income for the recently completed
second quarter of 2013 rose to a historic high as a public company. In
addition to the record earnings reported this quarter, the Company's tangible
book value per share has increased to $19.50, which we believe is the best
measurement of core shareholder value in the Company".

Total assets were $315.7 million at June 30, 2013, an increase of $3.8 million
compared to December 31, 2012. During the six months ended June 30, 2013, cash
and cash equivalents decreased from $10.6 million to $5.3 million. Total
securities available-for-sale were $10.7 million at June 30, 2013, a decrease
of $1.5 million compared to December 31, 2012. Total securities
held-to-maturity decreased by $12.6 million during the first six months of
2013, to $54.8 million, at June 30, 2013. The decreases in securities
available-for-sale and securities held-to-maturity were due to the contractual
and early repayments of principal on mortgage-backed securities and CMOs. Net
loans receivable were $235.4 million at June 30, 2013, an increase of $22.3
million, or 10.5%, compared to December 31, 2012. During the first six months
of 2013, our first mortgage loans secured by single family residential loans
increased by $15.2 million, our funded home equity loans and lines increased
by $2.3 million, our loans secured by multifamily residential collateral
increased by $4.8 million, and our first mortgage loans secured by
non-residential commercial real estate increased by $133,000.

Total deposits were $198.3 million at June 30, 2013 compared to $196.2 million
at December 31, 2012. As of June 30, 2013, non-interest bearing deposits were
$12.8 million, and interest-bearing deposits were $185.5 million. Total
Federal Home Loan Bank advances and other borrowings were $56.0 million at
June 30, 2013, an increase of $2.5 million from December 31, 2012.

Total shareholders' equity was $56.3 million at June 30, 2013, a decrease of
$414,000 million from December 31, 2012. During the six months ended June 30,
2013, the Company acquired 149,387 shares of its common stock at a total cost
of $2.6 million pursuant to its repurchase plans. Additionally, the Company
reissued 19,035 shares of treasury stock upon the exercise of stock options by
several directors, which exercises resulted in an aggregate net increase of
$219,000 to shareholders' equity. The increase in our treasury stock account
was partially offset by net income of $994,000 and the release of 42,934
shares held by the Company's Recognition and Retention Plan Trust which became
vested and were released to plan participants during the first six months of
2013.The release of these shares from the Recognition and Retention Plan
Trust increased shareholders' equity by $498,000.The Bank's Tier 1 leverage
ratio, Tier 1 risk-based capital ratio, and total risk-based capital were
14.33%, 24.74%, and 25.89%, respectively, at June 30, 2013.

Net interest income was approximately $2.5 million during each of the
quarterly periods ended June 30, 2013 and 2012.Interest income during the
second quarter of 2013 was $3.3 million, a decrease of $310,000 compared to
the second quarter of 2012.This decrease in interest income between the
respective quarterly periods was primarily due to a $4.3 million decrease in
the average balance of interest-earning assets and a 34 basis point decrease
in the average yield on our interest-earning assets. The average yield on our
interest-earning assets was 4.25% and 4.59%, respectively, for the quarterly
periods ended June 30, 2013 and 2012.Interest income on loans receivable was
$2.8 million during both the second quarter of 2013 and the second quarter of
2012. The average balance of our loans receivable increased by $20.6 million
during the second quarter of 2013 compared to the second quarter of 2012;
however, the average yield on loans receivable decreased by 52 basis points
between the respective quarterly periods.The average balance of our
mortgage-backed securities and CMOs decreased by $29.5 million and the average
yield on these securities decreased by 25 basis points during the second
quarter of 2013 compared to the second quarter of 2012, resulting in a
decrease of $284,000 in interest income earned on mortgage-backed securities
and CMOs.Interest income on investment securities during the second quarter
of 2013 was $37,000, at an average yield of 2.33%, compared to $36,000, at an
average yield of 2.25%, during the second quarter of 2012.Interest income
earned on other interest-earning assets was $5,000 and $4,000, respectively,
for the three month periods ended June 30, 2013 and June 30, 2012.

During the six month period ended June 30, 2013, net interest income was $5.0
million, an increase of $45,000 compared to the six month period ended June
30, 2012.Our net interest margin, which expresses net interest income as a
percentage of average-interest earning assets, was 3.27% for the six months
ended June 30, 2013, an increase of eight basis points compared to the six
month period ended June 30, 2012.Interest income decreased by $636,000, to
$6.5 million, during the first half of 2013 compared to the first half of
2012.During this time, our average interest-earning assets decreased by $5.4
million and the average yield earned on our interest-earning assets decreased
by 33 basis points.Interest income on loans receivable was $5.4 million, with
an average yield of 4.84%, for the six months ended June 30, 2013 compared to
$5.5 million, with an average yield of 5.38%, for the six months ended June
30, 2012.The average balance of our mortgage-backed securities and CMOs was
$65.9 million during the first six months of 2013, resulting in interest
income of $1.0 million compared to an average balance of $88.5 million during
the first six months of 2012, which generated interest income of $1.5
million.The average yield on our mortgage-backed securities and CMOs was
3.06% and 3.48%, respectively, for the semi-annual periods ended June 30, 2013
and 2012.Interest income on investment securities was $75,000 and interest
income on other interest-earning assets was $9,000 during the first six months
of 2013.

Total interest expense was $750,000, with our interest-bearing liabilities
having an average cost of 1.23%, during the second quarter of 2013, compared
to $1.1 million and an average cost of 1.76% for the second quarter of
2012.The average rate paid on interest-bearing deposits was 0.92% during the
quarter ended June 30, 2013, a decrease of 24 basis points from the quarter
ended June 30, 2012.Interest expense on borrowings was $328,000 at an average
cost of 2.20% during the second quarter of 2013, and $565,000 at an average
cost of 3.44% during the second quarter of 2012. The decrease in our interest
expense on borrowings was primarily due to the maturity of certain higher cost
borrowings during the fourth quarter of 2012 and the first and second quarters
of 2013, and their subsequent replacement with lower rate wholesale
funding.The average interest rate spread for the three months ended June 30,
2013 was 3.02% compared to 2.83% for the three months ended June 30, 2012.Our
net interest margin, which expresses net interest income as a percentage of
average interest-earning assets, was 3.28% and 3.19%, respectively, for the
three month periods ended June 30, 2013, and June 30, 2012.

For the six month period ended June 30, 2013, total interest expense was $1.5
million, a decrease of $681,000 compared to the six month period ended June
30, 2012.Average interest bearing liabilities were $239.4 million for the
June 30, 2013 semi-annual period with an average cost of 1.28% compared to
average interest-bearing liabilities of $245.8 million with an average cost of
1.80% during the June 30, 2012 semi-annual period.

The Company recorded a provision for loan losses of $6,000 during the second
quarter of 2013 compared to $73,000 during the second quarter of 2012.Our
allowance for loan losses was $2.1 and $1.8 million, respectively, at June 30,
2013, and 2012, or 0.88% and 0.84% of total loans receivable as of those
dates. 

For the six months ended June 30, 2013, our provision for loan losses was
$147,000 compared to $128,000 during the six months ended June 30, 2012.At
June 30, 2013, total non-performing loans were $1.2 million, or 0.50% of total
loans, and total non-performing assets were $1.7 million, or 0.55% of total
assets.Stated as a percentage of non-performing loans, our allowance for loan
losses at June 30, 2013 was 176.45%.

Non-interest income for the second quarter of 2013 was $980,000, an increase
of $436,000 from the second quarter of 2012.Our customer service fees, which
are primarily comprised of fees earned on transaction accounts, loan servicing
fees, and brokered loan commissions, were $231,000 and $236,000, respectively,
during the second quarter of 2013 and the second quarter of 2012.Gains on the
sale of mortgage loans were $483,000 during the second quarter of 2013
compared to $268,000 during the second quarter of 2012.A gain of $234,000 was
recognized on the Company's equity investment in a small business investment
company ("SBIC") during the second quarter of 2013.A gain of $18,000 was
recognized during the second quarter of 2012 on this SBIC investment.

For the six month periods ended June 30, 2013 and 2012, total non-interest
income was $1.5 million and $818,000, respectively.During the 2013 period,
the Company recorded a $93,000 increase in customer service fees, and a
$287,000 increase in gains on the sale of loans.In addition, during the first
six months of 2013, the Company recognized gains on its SBIC investment of
$293,000, an increase of $275,000 compared to the first six months of 2012.

Total non-interest expense was $2.0 million for each of the quarterly periods
ended June 30, 2013 and 2012.Salaries and employee benefits expense decreased
by $130,000 during the second quarter of 2013 compared to the second quarter
of 2012 due primarily to a reduction in the level of equity compensation
associated with our stock option and recognition and retention plans.During
the first quarter of 2013, the majority of the awards associated with these
plans became fully vested and expensed.Occupancy expenses were $337,000, an
increase of $25,000, during the second quarter of 2013 compared to the second
quarter of 2012.The net cost of our REO operations increased by $23,000, to
$55,000, during the second quarter of 2013 compared to the second quarter of
2012 due primarily to additional charge-offs of $18,000 and a $4,000 increase
in legal fees.Advertising expense increased by $31,000 to $99,000 during the
second quarter of 2013 compared to the second quarter of 2012, due to
promotional efforts related to a checking account campaign launched in the
first quarter of 2013.Other non-interest expenses were $291,000 for the
second quarter of 2013, and $269,000 for the second quarter of 2012.

Non-interest expense for the first half of 2013 was $4.0 million, an increase
of $145,000 compared to the first half of 2012.Salaries and employee benefits
expense was $2.4 million during the six months ended June 30, 2013, a decrease
of $80,000 compared to the six months ended June 30, 2012.A decrease of
$233,000 in our equity compensation plan expenses was partially offset by an
$110,000 increase in salary expense associated with staffing our new branch
which opened in the second quarter of 2012.Occupancy expense was $668,000 and
$603,000, respectively, for the semi-annual periods ended June 30, 2013 and
2012.This increase was primarily due to the opening of the new branch office
during the second quarter of 2012 and increased data processing costs.Our
Louisiana bank share tax was $115,000 and our FDIC insurance premium was
$76,000 for the six month period ended June 30, 2013.The net cost of REO
operations during the first half of 2013 was $73,000, an increase of $3,000
compared to the first half of 2012.Advertising expenses increased by $80,000,
to $197,000, during the 2013 semi-annual period compared to the 2012
semi-annual period due primarily to our new checking account campaigns.Other
non-interest expenses were $544,000 during the six months ended June 30, 2013
compared to $468,000 during the six months ended June 30, 2012.

For the three month period ended June 30, 2013, the Company recorded income
tax expense of $519,000, an increase of $192,000 from the three month period
ended June 30, 2012.This increase in income tax expense was primarily due to
an increase in pre-tax income of $570,000 between the respective quarterly
periods.

Income tax expense was $785,000 based on pre-tax income of $2.3 million during
the first half of 2013 compared to income tax expense of $604,000 on pre-tax
income of $1.7 million during the first half of 2012.

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, 2012, 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)
                                                                
                                June 30,      December
                               2013          31,                  
                                              2012
                               (unaudited)                       
Selected Financial and Other Data:                                
Total assets                    $315,658    $311,862           
Cash and cash equivalents       5,339        10,646               
Securities available-for-sale                                     
Investment securities          6,342        6,384               
Mortgage-backed securities &   4,329        5,755               
CMOs
Securities held-to-maturity                                       
Investment securities          --           --                  
Mortgage-backed securities &   54,808       67,454              
CMOs
Loans receivable, net           235,449      213,159             
Deposits                        198,277      196,206             
FHLB advances and other         55,964       53,454              
borrowings
Shareholders' equity            56,292       56,706              
                                                                
Book Value per Share            $19.50        $18.79               
                                                                
                                                                
                               Three Months Ended June  Six Months Ended June
                                30,                      30,
                               2013          2012       2013       2012
                               (unaudited)              (unaudited)
Selected Operating Data:                                         
Total interest income           $3,287      $3,597   $6,513   $7,149
Total interest expense          750           1,099      1,529      2,210
Net interest income             2,537         2,498      4,984      4,939
Provision for loan losses       6             73         147        128
Net interest income after       2,531         2,425      4,837      4,811
provision for loan losses
Total non-interest income       980           544        1,477      818
Total non-interest expense      1,998         2,026      4,035      3,890
Income before income taxes      1,513         943        2,279      1,739
Income taxes                    519           327        785        604
Net income                      $994        $616     $1,494   $1,135
                                                                
Earnings per share:                                              
Basic                           $0.40       $0.23    $0.60    $0.42
Diluted                         $0.38       $0.22    $0.57    $0.40
Weighted average shares outstanding                               
Basic                           2,478,520     2,693,471  2,474,713  2,725,160
Diluted                         2,606,964     2,830,702  2,610,056  2,861,985
                                                                
                               Three Months Ended June  Six Months Ended June
                                30,                      30,
                               2013          2012       2013       2012
                                                                
Selected Operating Ratios(1):                                     
Average yield on                4.25%         4.59%      4.28%      4.61%
interest-earning assets
Average rate on                 1.23%         1.76%      1.28%      1.80%
interest-bearing liabilities
Average interest rate spread(2) 3.02%         2.83%      3.00%      2.81%
Net interest margin(2)          3.28%         3.19%      3.27%      3.19%
Average interest-earning assets
to averageinterest-bearing     126.76%       125.74%    127.25%    126.13%
liabilities
Net interest income after
provisionfor loan losses to    126.68%       119.69%    119.88%    123.68%
non-interest expense
Total non-interest expense to   2.52%         2.52%      2.58%      2.45%
average assets
Efficiency ratio(3)             56.81%        66.60%     62.45%     67.57%
Return on average assets        1.25%         0.77%      0.95%      0.71%
Return on average equity        7.14%         4.31%      5.37%      3.95%
Average equity to average       17.54%        17.78%     17.77%     18.08%
assets
                                                                
                                                                
                               At or For the Period Ended          
                               June 30,     March 31,  Dec. 31,   
Asset Quality Ratios(4):        2013          2013       2012       
Non-performing loans as a
percent oftotal loans          0.50%         0.58%      0.68%      
receivable (5) (6)
Non-performing assets as a      0.55%         0.62%      0.67%      
percent oftotal assets(5)
Allowance for loan losses as a  176.45%       154.12%    132.02%    
percent ofnon-performing loans
Allowance for loan losses as a
percent oftotal loans          0.88%         0.89%      0.89%      
receivable (6)
Net charge-offs during the
period toaverage loans         -0.02%        0.00%      0.01%      
receivable (6)(7)
                                                                
Capital Ratios(4):                                               
Tier 1 leverage ratio           14.33%        14.17%     14.03%     
Tier 1 risk-based capital ratio 24.74%        24.38%     25.39%     
Total risk-based capital ratio  25.89%        25.52%     26.50%     
_________________________________________                         
                                                                
(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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