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

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

METAIRIE, La., Jan. 31, 2014 (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, 2013 was $638,000, or $0.24 per diluted share, a decrease of
$87,000 from the quarter ended December 31, 2012. An increase in net interest
income of $165,000 and a decrease in non-interest expense of $138,000 were
offset by a decrease in non-interest income of $448,000 during the fourth
quarter of 2013 compared to the fourth quarter of 2012. The decrease in
non-interest income was due to a $430,000 decrease in gains on the sale of
residential mortgage loans during the period.For the year ended December 31,
2013, the Company reported net income of $2.7 million, or $1.03 per diluted
share, compared to net income of $2.5 million, or $0.90 per diluted share,
during the year ended December 31, 2012.

Lawrence J. LeBon, III, Chairman, President and Chief Executive Officer of the
Company and the Bank, stated: "On behalf of the Board of Directors, I am
pleased to report the results of our operations for the year, which are
highlighted by an increase in net income of $201,000, an increase in loans
receivable of 16.1%, and an increase in tangible book value per share from
$18.79 to $20.07.In 2014, we will continue to leverage the new customer
relationships created by the growth in our loan portfolio into long-term core
customers of the Bank, which will enhance profitability and build shareholder
value."

Total assets were $316.7 million at December 31, 2013, an increase of $4.8
million compared to December 31, 2012.During the twelve months ended December
31, 2013, cash and cash equivalents decreased by $3.7 million to $7.0
million.Total securities available-for-sale were $5.8 million at December 31,
2013, a decrease of $6.4 million compared to December 31, 2012.Total
securities held-to-maturity decreased by $20.1 million during 2013, to $47.3
million, at December 31, 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 $247.5 million at December 31, 2013, an increase of $34.3
million, or 16.1%, compared to December 31, 2012.During 2013, our first
mortgage loans secured by single family residential loans increased by $31.5
million, our funded home equity loans and lines increased by $2.3 million, and
our loans secured by multifamily residential collateral increased by $4.1
million.Our first mortgage loans secured by non-residential commercial real
estate decreased by $3.6 million, to $59.2 million, during the year ended
December 31, 2013.

Total non-performing loans were $1.3 million at December 31, 2013, a decrease
of $124,000 compared to December 31, 2012.Non-performing loans represented
0.53% and 0.68%, respectively, of our total loan portfolio at December 31,
2013 and 2012.At year- end 2013, our non-performing loans were comprised of
$20,000 in single-family residential mortgage loans, $32,000 in home equity
loans and lines of credit, and $1.3 million in commercial real estate
loans.Other real estate owned was $568,000 at December 31, 2013, a decrease
of $64,000 compared to December 31, 2012.Total non-performing assets were
$1.9 million at December 31, 2013, or 0.60% of total assets.

Total deposits were $202.5 million at December 31, 2013 compared to $196.2
million at December 31, 2012.At December 31, 2013, non-interest bearing
deposits were $15.1 million, and interest-bearing deposits were $187.4
million.Total Federal Home Loan Bank advances and other borrowings were $51.0
million and $53.5 million, respectively, at December 31, 2013, and December
31, 2012.

Total shareholders' equity was $57.9 million at December 31, 2013, an increase
of $1.2 million from December 31, 2012.During 2013, the Company acquired
149,804 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 net effect on our treasury stock of the stock repurchases and the
exercise of stock options was an increase of $2.3 million.The increase in our
treasury stock account was partially offset by net income of $2.7 million, and
the release of 46,034 shares held by the Company's Recognition and Retention
Plan Trust which became vested and were released to plan participants during
2013.The release of these shares from the Recognition and Retention Plan
Trust increased shareholders' equity by $544,000.On December 31, 2013, the
Company released 25,383 shares of stock to participants in the ESOP, which
resulted in an increase in shareholders' equity of $441,000.The Bank's Tier 1
leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital
were 14.80%, 25.37%, and 26.58%, respectively, at December 31, 2013.

During the quarter ended December 31, 2013, net interest income was $2.6
million, an increase of $165,000 compared to the quarter ended December 31,
2012.Interest income decreased by $78,000 to $3.3 million during the fourth
quarter of 2013 compared to the fourth quarter of 2012.The benefit of a $2.4
million increase in the average balance of interest-earning assets was offset
by a 14 basis point decrease in the average yield earned on interest-earning
assets. Interest income on loans receivable was $2.9 million during the
fourth quarter of 2013 and $2.7 million during the fourth quarter of 2012.
The average balance of our loans receivable increased by $31.2 million
between the respective quarterly periods; however, the average yield on loans
receivable decreased by 44 basis points.The average balance of our
mortgage-backed securities and CMOs decreased by $24.7 million and the average
yield on these securities decreased by one basis point during the fourth
quarter of 2013 compared to the fourth quarter of 2012, resulting in a
decrease of $191,000 in interest income earned on mortgage-backed securities
and CMOs.Interest income on investment securities was $26,000 and $38,000,
respectively, and interest income on other interest-earning assets was $6,000
and $5,000, respectively, during the quarterly periods ended December 31, 2013
and 2012. 

For the year ended December 31, 2013, net interest income was $10.1 million
compared to net interest income of $10.0 million for the year ended December
31, 2012. Interest income decreased by $1.1 million, to $13.0 million, during
2013 compared to 2012.During 2013, our average interest-earning assets
decreased by $2.9 million, to $307.1 million, and the average yield earned on
our interest-earning assets decreased by 32 basis points, to 4.24%.Interest
income on loans receivable was $11.0 million, with an average yield of 4.72%,
for the year ended December 31, 2013 compared to $11.1 million, with an
average yield of 5.31%, for the year ended December 31, 2012.The average
balance of our mortgage-backed securities and CMOs was $60.4 million during
2013, resulting in interest income of $1.9 million compared to an average
balance of $84.5 million during 2012, which generated interest income of $2.8
million.The average yield on our mortgage-backed securities and CMOs was
3.07% and 3.33%, respectively, for the years ended December 31, 2013 and
2012.Interest income on investment securities was $137,000 and interest
income on other interest-earning assets was $20,000 during 2013.

Total interest expense was $679,000, with our interest-bearing liabilities
having an average cost of 1.13%, during the fourth quarter of 2013, compared
to $922,000 and an average cost of 1.54% for the fourth quarter of 2012.The
average rate paid on interest-bearing deposits was 0.87% during the quarter
ended December 31, 2013, a decrease of 15 basis points from the quarter ended
December 31, 2012.Interest expense on borrowings was $274,000 at an average
cost of 2.07% during the fourth quarter of 2013, and $456,000 at an average
cost of 3.15% during the fourth 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 quarter ended December 31,
2013 was 3.13% compared to 2.86% for the quarter ended December 31, 2012.Our
net interest margin, which expresses net interest income as a percentage of
average interest-earning assets, was 3.39% and 3.20%, respectively, for three
month periods ended December 31, 2013 and 2012.

For the year ended December 31, 2013, total interest expense was $2.9 million,
a decrease of $1.3 million compared to the year ended December 31,
2012.Average interest bearing liabilities were $240.1 million for 2013 with
an average cost of 1.21% compared to average interest-bearing liabilities of
$244.8 million with an average cost of 1.71% during 2012.

The Company recorded a provision for loan losses of $21,000 and $20,000,
respectively, during the fourth quarter of 2013 and 2012.Charge-offs during
the fourth quarter of 2013 were $10,000, and charge-offs during the fourth
quarter of 2012 were $36,000.Our allowance for loan losses was $2.2 and $1.9
million, respectively, at December 31, 2013 and December 31, 2012, or 0.89% of
total loans receivable as of each of those dates. 

For the year ended December 31, 2013, our provision for loan losses was
$264,000 compared to $246,000 during the year ended December 31, 2012.At
December 31, 2013, total non-performing loans were $1.3 million, or 0.53% of
total loans, and total non-performing assets were $1.9 million, or 0.60% of
total assets.Stated as a percentage of non-performing loans, our allowance
for loan losses at December 31, 2013 was 167.24%.

Non-interest income for the fourth quarter of 2013 was $333,000, a decrease of
$448,000 from the fourth quarter of 2012.Gains on the sale of mortgage loans
were $110,000 during the 2013 period compared to $540,000 during the 2012
period.The decrease in gains on the sale of loans between the respective
quarterly periods was primarily due to a decrease in refinancing activity as a
result of an increase in market rates of interest on mortgage loans during the
third and fourth quarters of 2013.Customer service fees were $202,000 during
the fourth quarter of 2013, a decrease of $11,000 compared to the fourth
quarter of 2012.The Company recognized gains on our equity investment in a
small business investment company ("SBIC") of $5,000 and $9,000, respectively,
during the fourth quarter of 2013 and the fourth quarter of 2012.Other
non-interest income was $16,000 during the fourth quarter of 2013, and $19,000
during the fourth quarter of 2012.

For the year ended December 31, 2013, total non-interest income was $2.2
million, an increase of $12,000 compared to the year ended December 31,
2012.During 2013, the Company recorded an $83,000 increase in customer
service fees and a $339,000 decrease in gains on the sale of loans.In
addition, during 2013, the Company recognized gains on its SBIC investment of
$298,000, an increase of $261,000 compared to 2012.

Total non-interest expense was $2.0 million for the quarter ended December 31,
2013; a decrease of $138,000 compared to the quarter ended December 31,
2012.Salaries and employee benefits expense decreased by $198,000 during the
fourth quarter of 2013 compared to the fourth quarter of 2012 due primarily to
a reduction in the level of equity compensation associated with our ESOP,
stock option and recognition and retention plans.Occupancy expenses were
$366,000 during the fourth quarter of 2013, an increase of $26,000 compared to
the fourth quarter of 2012.Our estimate for the Louisiana bank shares tax
decreased by $7,000 during the fourth quarter of 2013 compared to the fourth
quarter of 2012.Our FDIC insurance premiums were $37,000 and $38,000 for the
quarterly periods presented in this press release.The net cost of our REO
operations increased by $17,000, to $21,000, during the fourth quarter of 2013
compared to the fourth quarter of 2012.Advertising expense increased by
$9,000 to $88,000, and legal expenses decreased by $11,000 to $18,000 during
the fourth quarter of 2013 compared to the fourth quarter of 2012.Other
non-interest expenses were $225,000 for the fourth quarter of 2013, and
$198,000 for the fourth quarter of 2012.

Non-interest expense for the year ended December 31, 2013 was $7.9 million, a
decrease of $127,000 compared to the year ended December 31, 2012.Salaries
and employee benefits expense was $4.6 million during 2013, a decrease of
$455,000 compared to 2012.A decrease of $552,000 in our equity compensation
plan expenses was partially offset by increases in salaries, health insurance
premiums and payroll taxes associated with increased staffing levels.
Occupancy expense was $1.4 million and $1.3 million, respectively, for the
years ended December 31, 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 $190,000 and
our FDIC insurance premium expense was $152,000 for the year ended December
31, 2013.The net cost of REO operations during 2013 was $98,000, a decrease
of $5,000 compared to 2012.Advertising expenses increased by $110,000, to
$366,000, during 2013 compared to 2012 due primarily to our new checking
account campaigns. Legal expenses were $205,000 and other non-interest
expenses were $841,000 during the year ended December 31, 2013.

For the quarter ended December 31, 2013, the Company recorded income tax
expense of $335,000, a decrease of $59,000 from the quarter ended December 31,
2012.This decrease in income tax expense was primarily due to a decrease in
pre-tax income of $146,000 between the respective quarterly periods.

Income tax expense was $1.4 million based on pre-tax income of $4.1 million
during 2013 compared to income tax expense of $1.3 million on pre-tax income
of $3.8 million during 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)                  
                                                               
                            December 31,  December 31,           
                            2013          2012                   
                            (unaudited)                         
                                                               
Selected Financial and Other                                    
Data:
Total assets                 $316,708    $311,862             
Cash and cash equivalents    6,964        10,646                 
Securities                                                      
available-for-sale
Investment securities       2,023        6,126                 
Mortgage-backed securities  3,463        5,755                 
& CMOs
Equity securities           280          258                   
Securities held-to-maturity                                     
Investment securities       --           --                    
Mortgage-backed securities  47,346       67,454                
& CMOs
Loans receivable, net        247,479      213,159               
Deposits                     202,508      196,206               
FHLB advances and other      51,040       53,454                
borrowings
Shareholders' equity         57,939       56,706                
                                                               
Book Value per Share         $20.07        $18.79                 
                                                               
                                                               
                            Three Months Ended Dec. 31, Year Ended Dec. 31,
                            2013          2012          2013      2012
                            (unaudited)                 (unaudited)         
Selected Operating Data:                                        
Total interest income        $3,297      $3,375      $13,026 $14,146
Total interest expense       679           922           2,904     4,196
Net interest income          2,618         2,453         10,122    9,950
Provision for loan losses    21            20            264       246
Net interest income after    2,597         2,433         9,858     9,704
provision for loan losses
Total non-interest income    333           781           2,160     2,148
Total non-interest expense   1,957         2,095         7,876     8,003
Income before income taxes   973           1,119         4,142     3,849
Income taxes                 335           394           1,434     1,342
Net income                   $638        $725        $2,708  $2,507
                                                               
Earnings per share:                                             
Basic                        $0.26       $0.28       $1.09   $0.95
Diluted                      $0.24       $0.26       $1.03   $0.90
Weighted average shares                                         
outstanding
Basic                        2,487,348     2,530,688     2,480,894 2,633,316
Diluted                      2,632,013     2,676,708     2,620,429 2,774,838

                                                        
                                         Three Months    Year Ended Dec.
                                          Ended Dec. 31,  31,
                                         2013    2012    2013    2012
                                                              
Selected Operating Ratios(1):                                  
Average yield on interest-earning assets  4.26%   4.40%   4.24%   4.56%
Average rate on interest-bearing          1.13%   1.54%   1.21%   1.71%
liabilities
Average interest rate spread(2)           3.13%   2.86%   3.03%   2.85%
Net interest margin(2)                    3.39%   3.20%   3.30%   3.21%
Average interest-earning assets to        129.18% 127.83% 127.93% 126.67%
average interest-bearing liabilities
Net interest income after provision for   132.70% 116.13% 125.17% 121.25%
loan losses to non-interest expense
Total non-interest expense to average     2.46%   2.66%   2.49%   2.52%
assets
Efficiency ratio(3)                       66.32%  64.78%  64.13%  66.15%
Return on average assets                  0.80%   0.92%   0.86%   0.79%
Return on average equity                  4.45%   5.17%   4.81%   4.42%
Average equity to average assets          18.00%  17.78%  17.83%  17.85%
                                                                            
                                                              
                                         At or For the Three Month
                                          Period Ended
                                         Dec.    Sept.   June   March
                                          31,     30,     30,     31,
Asset Quality Ratios(4):                  2013    2013    2013    2013
Non-performing loans as a percent of      0.53%   0.99%   0.50%   0.58%
total loans receivable (5) (6)
Non-performing assets as a percent of     0.60%   0.95%   0.55%   0.62%
total assets(5)
Allowance for loan losses as a percent of 167.24% 89.85%  176.45% 154.12%
non-performing loans
Allowance for loan losses as a percent of 0.89%   0.89%   0.88%   0.89%
total loans receivable (6)
Net charge-offs during the period to      0.00%   0.00%   -0.02%  0.00%
average loans receivable (6)(7)
                                                              
Capital Ratios(4):                                             
Tier 1 leverage ratio                     14.80%  14.39%  14.33%  14.17%
Tier 1 risk-based capital ratio           25.37%  24.82%  24.74%  24.38%
Total risk-based capital ratio            26.58%  26.02%  25.89%  25.52%
_________________________________________                      
                                                              
(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,
         EVP & Chief Financial Officer
         Telephone: (504) 834-1190
 
Press spacebar to pause and continue. Press esc to stop.