Louisiana Bancorp, Inc. Announces Earnings for the Third Quarter and the Extension of Stock Repurchase Program

Louisiana Bancorp, Inc. Announces Earnings for the Third Quarter and the
Extension of Stock Repurchase Program

METAIRIE, La., Nov. 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
September 30, 2013 was $576,000, or $0.22 per diluted share, a decrease of
$71,000 from the quarter ended September 30, 2012. Net interest income
decreased by $38,000 and non-interest income decreased by $198,000 during the
third quarter of 2013 compared to the third quarter of 2012. The decrease in
non-interest income was due to a $196,000 decrease in gains on the sale of
residential mortgage loans during the period. Non-interest expense was $1.9
million and $2.0 million, respectively during the third quarter of 2013 and
the third quarter of 2012. For the nine month period ended September 30, 2013,
the Company reported net income of $2.1 million, or $0.79 per diluted share,
compared to net income of $1.8 million, or $0.64 per diluted share, during the
nine month period ended September 30, 2012.

In addition, the Company announced that it has extended the duration of its
stock repurchase program that was initially announced on February 27, 2013 for
a period of six months to May 1, 2014. There are currently 149,426 shares
remaining to be purchased under the program. These shares may be acquired in
the open market or privately negotiated transactions, as and when deemed
appropriate by management.

Lawrence J. LeBon, III, Chairman, President and Chief Executive Officer of the
Company and the Bank, stated: "Despite the volatility displayed in interest
rates during recent periods, the Board and management are pleased to report
that the Company's level of net interest income has remained relatively
consistent throughout. On an annualized basis, our net interest rate spread
and net interest margins have increased to 3.00% and 3.27%, respectively. We
remain committed to further strengthening these ratios and prudently managing
our operating overhead in order to continue to build long-term value for our
shareholders."

Total assets were $318.5 million at September 30, 2013, an increase of $6.6
million compared to December 31, 2012. During the nine months ended September
30, 2013, cash and cash equivalents decreased from $10.6 million to $6.9
million. Total securities available-for-sale were $6.2 million at September
30, 2013, a decrease of $5.9 million compared to December 31, 2012. Total
securities held-to-maturity decreased by $16.9 million during the first nine
months of 2013, to $50.5 million, at September 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 $245.3 million at September 30, 2013, an
increase of $32.1 million, or 15.1%, compared to December 31, 2012. During the
first nine months of 2013, our first mortgage loans secured by single family
residential loans increased by $29.5 million, our funded home equity loans and
lines increased by $1.9 million, and our loans secured by multifamily
residential collateral increased by $3.8 million. Our first mortgage loans
secured by non-residential commercial real estate decreased by $3.0 million,
to $59.8 million, during the nine months ended September 30, 2013.

Total non-performing loans were $2.5 million at September 30, 2013, an
increase of $1.0 million compared to December 31, 2012. Our non-performing
loans were comprised of $22,000 in single-family residential mortgage loans,
$19,000 in home equity loans and lines of credit, and $2.4 million in
commercial real estate loans. During October 2013, the Bank sold, at a
foreclosure auction, a parcel of commercial real estate that collateralized a
non-performing commercial real estate loan with a carrying value of $1.1
million at September 30, 2013. The sale generated proceeds that satisfied all
contractual principal, interest, late charges and legal fees associated with
this loan. Other real estate owned was $583,000 at September 30, 2013, a
decrease of $49,000 compared to December 31, 2012. Total non-performing assets
were $3.0 million at September 30, 2013, or 0.95% of total assets.

Total deposits were $197.1 million at September 30, 2013 compared to $196.2
million at December 31, 2012. As of September 30, 2013, non-interest bearing
deposits were $13.3 million, and interest-bearing deposits were $183.8
million. Total Federal Home Loan Bank advances and other borrowings were $57.6
million at September 30, 2013, an increase of $4.1 million from December 31,
2012.

Total shareholders' equity was $56.9 million at September 30, 2013, an
increase of $146,000 from December 31, 2012. During the nine months ended
September 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 $2.1 million 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 nine 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 14.39%, 24.82%, and 26.02%, respectively, at September
30, 2013.

During the quarter ended September 30, 2013, net interest income was $2.5
million, a decrease of $38,000 compared to the quarter ended September 30,
2012.Interest income decreased by $406,000 to $3.2 million during the third
quarter of 2013 compared to the third quarter of 2012.This decrease in
interest income between the respective quarterly periods was primarily due to
a $4.8 million decrease in the average balance of interest-earning assets and
a 45 basis point decrease in the average yield on our interest-earning assets.
The average yield on our interest-earning assets was 4.16% and 4.61%,
respectively, for the quarterly periods ended September 30, 2013 and
2012.Interest income on loans receivable was $2.7 million during the third
quarter of 2013 and $2.9 million during the third quarter of 2012. The
average balance of our loans receivable increased by $24.4 million during the
third quarter of 2013 compared to the third quarter of 2012; however, the
average yield on loans receivable decreased by 82 basis points between the
respective quarterly periods.The average balance of our mortgage-backed
securities and CMOs decreased by $28.4 million and the average yield on these
securities decreased by 10 basis points during the third quarter of 2013
compared to the third quarter of 2012, resulting in a decrease of $240,000 in
interest income earned on mortgage-backed securities and CMOs.Interest income
on investment securities was $36,000 and $37,000, respectively, and interest
income on other interest-earning assets was $5,000 and $3,000, respectively,
during the quarterly periods ended September 30, 2013 and 2012. 

During each of the nine month periods ended September 30, 2013 and September
30, 2012, net interest income was approximately $7.5 million. Interest income
decreased by $1.0 million, to $9.7 million, during the first nine months of
2013 compared to the first nine months of 2012.During this time, our average
interest-earning assets decreased by $4.9 million and the average yield earned
on our interest-earning assets decreased by 38 basis points.Interest income
on loans receivable was $8.2 million, with an average yield of 4.74%, for the
nine months ended September 30, 2013 compared to $8.4 million, with an average
yield of 5.37%, for the nine months ended September 30, 2012.The average
balance of our mortgage-backed securities and CMOs was $62.9 million during
the first nine months of 2013, resulting in interest income of $1.5 million
compared to an average balance of $87.1 million during the first nine months
of 2012, which generated interest income of $2.2 million.The average yield on
our mortgage-backed securities and CMOs was 3.07% and 3.40%, respectively, for
the nine month periods ended September 30, 2013 and 2012.Interest income on
investment securities was $111,000 and interest income on other
interest-earning assets was $14,000 during the first nine months of 2013.

Total interest expense was $696,000, with our interest-bearing liabilities
having an average cost of 1.15%, during the third quarter of 2013, compared to
$1.1 million and an average cost of 1.71% for the third quarter of 2012.The
average rate paid on interest-bearing deposits was 0.89% during the quarter
ended September 30, 2013, a decrease of 23 basis points from the quarter ended
September 30, 2012.Interest expense on borrowings was $289,000 at an average
cost of 1.96% during the third quarter of 2013, and $552,000 at an average
cost of 3.36% during the third 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 September
30, 2013 was 3.01% compared to 2.90% for the three months ended September 30,
2012.Our net interest margin, which expresses net interest income as a
percentage of average interest-earning assets, was 3.26% for each of the three
month periods ended September 30, 2013 and 2012.

For the nine month period ended September 30, 2013, total interest expense was
$2.2 million, a decrease of $1.0 million compared to the nine month period
ended September 30, 2012.Average interest bearing liabilities were $240.5
million for the nine months ended September 30, 2013 with an average cost of
1.23% compared to average interest-bearing liabilities of $246.6 million with
an average cost of 1.77% during the nine months ended September 30, 2012.

The Company recorded a provision for loan losses of $96,000 during the third
quarter of 2013 compared to $98,000 during the third quarter of 2012.Our
allowance for loan losses was $2.2 and $1.9 million, respectively, at
September 30, 2013 and December 31, 2012, or 0.89% of total loans receivable
as of each of those dates. 

For the nine months ended September 30, 2013, our provision for loan losses
was $243,000 compared to $226,000 during the nine months ended September 30,
2012.At September 30, 2013, total non-performing loans were $2.5 million, or
0.99% of total loans, and total non-performing assets were $3.0 million, or
0.95% of total assets.Stated as a percentage of non-performing loans, our
allowance for loan losses at September 30, 2013 was 89.85%.

Non-interest income for the third quarter of 2013 was $350,000, a decrease of
$198,000 from the third quarter of 2012.Gains on the sale of mortgage loans
were $163,000 during the third quarter of 2013 compared to $359,000 during the
third quarter of 2012.The decrease in gains on the sale of loans between the
respective quarterly periods was primarily due to an increase in mortgage loan
rates which led to a decrease in refinancing activity.There were no gains
recognized on our equity investment in a small business investment company
("SBIC") during the third quarter of 2013 compared to a $9,000 gain that was
recognized during the third quarter of 2012.

For the nine month periods ended September 30, 2013 and 2012, total
non-interest income was $1.8 million and $1.4 million, respectively.During
the 2013 period, the Company recorded a $94,000 increase in customer service
fees, and a $91,000 increase in gains on the sale of loans.In addition,
during the first nine months of 2013, the Company recognized gains on its SBIC
investment of $293,000, an increase of $266,000 compared to the first nine
months of 2012.

Total non-interest expense was $1.9 million for the quarter ended September
30, 2013, a decrease of $133,000 compared to the quarter ended September 30,
2012.Salaries and employee benefits expense decreased by $177,000 during the
third quarter of 2013 compared to the third 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 $348,000 during the third quarter of 2013,
an increase of $29,000 compared to the third quarter of 2012.Our estimate for
the Louisiana bank shares tax decreased by $21,000 during the third quarter of
2013 compared to the third quarter of 2012.Our FDIC insurance premium was
$39,000 for both quarterly periods presented in this press release.The net
cost of our REO operations decreased by $25,000, to $4,000, during the third
quarter of 2013 compared to the third quarter of 2012.Advertising expense
increased by $21,000 to $81,000, and legal expenses increased by $43,000 to
$60,000 during the third quarter of 2013 compared to the third quarter of
2012.Other non-interest expenses were $199,000 for the third quarter of 2013,
and $202,000 for the third quarter of 2012.

Non-interest expense for each of the nine month periods ended September 30,
2013 and 2012 was $5.9 million.Salaries and employee benefits expense was
$3.5 million during the nine months ended September 30, 2013, a decrease of
$257,000 compared to the nine months ended September 30, 2012.A decrease of
$391,000 in our equity compensation plan expenses was partially offset by
increases in salaries, health insurance premiums and payroll taxes associated
with staffing our new branch which opened in the second quarter of
2012.Occupancy expense was $1.0 million and $923,000, respectively, for the
nine month periods ended September 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 $153,000 and our FDIC insurance premium expense was $115,000 for the
nine month period ended September 30, 2013.The net cost of REO operations
during the first nine months of 2013 was $77,000, a decrease of $22,000
compared to the first nine months of 2012.Advertising expenses increased by
$101,000, to $278,000, during the 2013 period compared to the 2012 period due
primarily to our new checking account campaigns.Legal expenses were $187,000
and other non-interest expenses were $616,000 during the nine months ended
September 30, 2013.

For the three month period ended September 30, 2013, the Company recorded
income tax expense of $314,000, a decrease of $30,000 from the three month
period ended September 30, 2012.This increase in income tax expense was
primarily due to a decrease in pre-tax income of $101,000 between the
respective quarterly periods.

Income tax expense was $1.1 million based on pre-tax income of $3.2 million
during the first nine months of 2013 compared to income tax expense of
$948,000 on pre-tax income of $2.7 million during the first nine months 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)                             
                                                             
                           Sept. 30,    Dec. 31,               
                           2013         2012                   
                           (unaudited)                        
                                                             
Selected Financial and                                        
Other Data:
Total assets                $318,470   $311,862             
Cash and cash equivalents   6,895       10,646                 
Securities                                                    
available-for-sale
Investment securities       2,344       6,384                 
Mortgage-backed securities  3,885       5,755                 
& CMOs
Securities held-to-maturity                                   
Investment securities       --          --                    
Mortgage-backed securities  50,513      67,454                
& CMOs
Loans receivable, net       245,283     213,159               
Deposits                    197,136     196,206               
FHLB advances and other     57,591      53,454                
borrowings
Shareholders' equity        56,852      56,706                
                                                             
Book Value per Share        $19.69       $18.79                 
                                                             
                                                             
                           Three Months Ended Sept. Nine Months Ended Sept.
                            30,                      30,
                           2013         2012        2013        2012
                           (unaudited)              (unaudited)
Selected Operating Data:                                      
Total interest income       $3,216     $3,622    $9,729    $10,771
Total interest expense      696          1,064       2,225       3,274
Net interest income         2,520        2,558       7,504       7,497
Provision for loan losses   96           98          243         226
Net interest income after   2,424        2,460       7,261       7,271
provision for loan losses
Total non-interest income   350          548         1,827       1,367
Total non-interest expense  1,884        2,017       5,919       5,908
Income before income taxes  890          991         3,169       2,730
Income taxes                314          344         1,099       948
Net income                  $576       $647      $2,070    $1,782
                                                             
Earnings per share:                                           
Basic                      $0.23      $0.25     $0.83     $0.67
Diluted                    $0.22      $0.24     $0.79     $0.64
Weighted average shares                                       
outstanding
Basic                      2,486,602    2,554,652   2,478,719   2,667,946
Diluted                    2,629,390    2,701,072   2,616,545   2,807,969
                                                             

                                                                  
                                         Three Months Ended Nine Months Ended
                                          Sept. 30,          Sept. 30,
                                         2013      2012     2013     2012
                                                                  
Selected Operating Ratios(1):                                      
Average yield on interest-earning assets  4.16%     4.61%    4.23%    4.61%
Average rate on interest-bearing          1.15%     1.71%    1.23%    1.77%
liabilities
Average interest rate spread(2)           3.01%     2.90%    3.00%    2.84%
Net interest margin(2)                    3.26%     3.26%    3.27%    3.21%
Average interest-earning assets to        127.54%   126.23%  127.39%  126.23%
average interest-bearing liabilities
Net interest income after provision for   128.66%   121.96%  122.67%  123.07%
loan losses to non-interest expense
Total non-interest expense to average     2.37%     2.50%    2.51%    2.47%
assets
Efficiency ratio(3)                       65.64%    64.94%   63.43%   66.65%
Return on average assets                  0.72%     0.80%    0.88%    0.74%
Return on average equity                  4.07%     4.65%    4.93%    4.17%
Average equity to average assets          17.77%    17.26%   17.76%   17.84%

                                                                  
                                         At or For the Period Ended
                                         Sept. 30, June 30, March    Dec. 31,
                                                             31,
Asset Quality Ratios(4):                  2013      2013     2013     2012
Non-performing loans as a percent of      0.99%     0.50%    0.58%    0.68%
total loans receivable (5) (6)
Non-performing assets as a percent of     0.95%     0.55%    0.62%    0.67%
total assets(5)
Allowance for loan losses as a percent of 89.85%    176.45%  154.12%  132.02%
non-performing loans
Allowance for loan losses as a percent of 0.89%     0.88%    0.89%    0.89%
total loans receivable (6)
Net charge-offs during the period to      0.00%     -0.02%   0.00%    0.01%
average loans receivable (6)(7)
                                                                  
Capital Ratios(4):                                                 
Tier 1 leverage ratio                     14.39%    14.33%   14.17%   14.03%
Tier 1 risk-based capital ratio           24.82%    24.74%   24.38%   25.39%
Total risk-based capital ratio            26.02%    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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