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

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

METAIRIE, La., May 2, 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
March 31, 2014 was $620,000, or $0.23 per diluted share, an increase of
$120,000 from the first quarter of 2013. Net interest income was $2.5 million
during the first quarter of 2014, an increase of $38,000 compared to the first
quarter of 2013. During the first quarter of 2014, our provision for loan
losses decreased by $120,000, to $21,000, compared to the first quarter of
2013. A decrease of $134,000 in our non-interest income was offset by a
$153,000 decrease in non-interest expense between the respective quarterly
periods ended March 31, 2014 and 2013.

In addition, the Company announced it has extended the duration of its stock
repurchase program for an additional one year period to May 2, 2015.There are
currently 126,459 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: "In addition to announcing another profitable
quarter for the Company, I am pleased to report that our plans to redesign our
Transcontinental Drive branch office are near completion, and construction
should commence in May 2014.This redesign will modernize the branch's
appearance and functionality, while improving our market presence in the
Metairie-Lakefront area.We feel that this investment in our facilities will
assist our team members in developing new long-term customer relationships
that will lead to increased branch profitability and value to our
shareholders."

Total assets were $316.2 million at March 31, 2014, a decrease of $540,000
compared to December 31, 2013.During the first three months of 2014, cash and
cash equivalents increased by $524,000 to $7.5 million.Total securities
available-for-sale increased by $1.2 million and total securities
held-for-investment decreased by $2.8 million during the first three months of
2014. Net loans receivable were $247.7 million at March 31, 2014, an increase
of $235,000 compared to December 31, 2013.

Total deposits increased by $78,000, to $202.6 million at March 31, 2014
compared to $202.5 million at December 31, 2013.As of March 31, 2014,
non-interest bearing deposits were $15.9 million, and interest-bearing
deposits were $186.7 million.Total Federal Home Loan Bank advances were $50.9
million at March 31, 2014, a decrease of $122,000 from December 31, 2013.

Total shareholders' equity was $58.0 million at March 31, 2014 and $57.9
million at December 31, 2013.Net income of $620,000 during the first quarter
of 2014 was partially offset by treasury stock repurchases and the payment of
a cash dividend.During the three months ended March 31, 2014, the Company
acquired 22,550 shares of its common stock at a total cost of $408,000
pursuant to its repurchase plans. Additionally, the Company paid its first
cash dividend of $.05 per share of common stock, or $144,000 in the
aggregate.The Bank's Tier 1 leverage ratio, Tier 1 risk-based capital ratio,
and total risk-based capital were 15.09%, 25.69%, and 26.91%, respectively, at
March 31, 2014.

Net interest income was approximately $2.5 million during the first quarter of
2014, an increase of $38,000 compared to the first quarter of 2013.Between
the respective quarterly periods, the average yield on our interest-earning
assets declined by 21 basis points and the average cost of our
interest-bearing liabilities decreased 23 basis points resulting in a two
basis point increase in the average interest rate spread.Our net interest
margin, which expresses net interest income as a percentage of average
interest-earning assets, was 3.23% and 3.26%, respectively, for the three
month periods ended March 31, 2014, and March 31, 2013.

During the first quarter of 2014, interest income was $3.1 million, a decrease
of $80,000 compared to the first quarter of 2013.The average balance of
interest earning assets increased by $7.9 million and the average yield on
interest-earning assets decreased from 4.30% to 4.09% during the three month
period ended March 31, 2014 compared to the same three month period in the
prior year. Interest income on loans receivable was $2.7 million during the
first quarter of 2014, with an average balance of $248.9 million and an
average yield of 4.40%.Similarly, interest income of $2.7 million was earned
on loans receivable with average balance of $217.8 million and an average
yield of 4.87% during the first quarter of 2013.The average balance of our
mortgage-backed securities and CMOs decreased by $20.2 million, to $49.2
million, during the first quarter of 2014 compared to the first quarter of
2013, resulting in a decrease of $159,000 in interest income earned on
mortgage-backed securities and CMOs in the 2014 period compared to the 2013
period.Interest income on investment securities during the first quarter of
2014 was $28,000, at an average yield of 3.27%, compared to $38,000, at an
average yield of 2.38%, during the first quarter of 2013.Interest income
earned on other interest-earning assets was $4,000 for each of the respective
three month periods ended March 31, 2014 and 2013.

Total interest expense was $661,000, with our interest-bearing liabilities
having an average cost of 1.10%, during the first quarter of 2014, compared to
interest expense of $779,000 and an average cost of 1.33% for the first
quarter of 2013.The average rate paid on interest-bearing deposits was 0.84%
during the quarter ended March 31, 2014, a decrease of 11 basis points from
the quarter ended March 31, 2013.Interest expense on borrowings was $271,000
at an average cost of 2.03% during the first quarter of 2014, and $347,000 at
an average cost of 2.65% during the first quarter of 2013. 

The Company recorded a provision for loan losses of $21,000 during the first
quarter of 2014 compared to $141,000 during the first quarter of 2013.Our
allowance for loan losses was $2.2 and $2.1 million, respectively, at March
31, 2014, and 2013. At such dates, our allowance for loan losses was 0.90% and
0.89%, respectively, of total loans receivable.At March 31, 2014, total
non-performing loans were $1.4 million, or 0.54% of total loans, and total
non-performing assets were $1.9 million, or 0.60% of total assets.

Non-interest income for the first quarter of 2014 was $363,000, a decrease of
$134,000 from the first quarter of 2013.Our customer service fees, which are
primarily comprised of fees earned on transaction accounts, loan servicing
fees, and brokered loan commissions, were $202,000 during the first quarter of
2014, a decrease of $36,000 from the comparable 2013 period.Gains on the sale
of mortgage loans were $140,000 and $181,000, respectively, during the
quarters ended March 31, 2014 and 2013.In the first quarter of 2013, the
Company recorded a $59,000 gain on an equity investment in a small business
investment company.There was no such gain realized during the first quarter
of 2014.Other non-interest income was $21,000 and $19,000, respectively,
during the three month periods ended March 31, 2014 and 2013.

Total non-interest expense was $1.9 million for the first quarter of 2014, a
decrease of $153,000 compared to the first quarter of 2013.Salaries and
employee benefits expense decreased by $112,000, to $1.1 million, for the
quarter ended March 31, 2014 compared to the quarter ended March 31,
2013.This decrease was primarily due 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
increased by $29,000, to $360,000, during the first quarter of 2014 compared
to the first quarter of 2013 due primarily to increased data processing
costs.The Louisiana bank shares tax was $48,000 and $57,000, respectively,
and our FDIC deposit insurance premiums were $37,000 and $38,000,
respectively, for the three month periods ended March 31, 2014 and March 31,
2013.The net cost associated with our OREO operations was $3,000 during the
first quarter of 2014 compared to $18,000 during the first quarter of
2013.Advertising expense decreased by $34,000 to $64,000 during the first
three months of 2014 compared to the first three months of 2013, due to a
reduction in consulting fees associated with our marketing programs.Other
non-interest expenses were $242,000 for the first quarter of 2014, and
$253,000 for the first quarter of 2013.

For the three month period ended March 31, 2014, the Company recorded income
tax expense of $323,000, an increase of $57,000 from the three month period
ended March 31, 2013. This increase in income tax expense was primarily due to
an increase in pre-tax income of $177,000 between the respective quarterly
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, 2013, 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)
                                                              
                                                 March 31,     December 31,
                                                 2014          2013
                                                 (unaudited)   
                                                              
Selected Financial and Other Data:                             
Total assets                                      $316,168    $316,708
Cash and cash equivalents                         7,488        6,964
Securities available-for-sale                                  
Investment securities                             3,504        2,023
Mortgage-backed securities & CMOs                 3,177        3,463
Equity Securities                                 286          280
Securities held-to-maturity                                    
Investment securities                             --           --
Mortgage-backed securities & CMOs                 44,540       47,346
Loans receivable, net                             247,714      247,479
Deposits                                          202,586      202,508
FHLB advances and other borrowings                50,918       51,040
Shareholders' equity                              58,006       57,939
                                                              
Book Value per Share                              $20.25        $20.07
                                                              
                                                              
                                                 Three Months Ended March 31,
                                                 2014          2013
                                                 (unaudited)
Selected Operating Data:                                       
Total interest income                             $3,146      $3,226
Total interest expense                            661           779
Net interest income                               2,485         2,447
Provision for loan losses                         21            141
Net interest income after provision for loan      2,464         2,306
losses
Total non-interest income                         363           497
Total non-interest expense                        1,884         2,037
Income before income taxes                        943           766
Income taxes                                      323           266
Net income                                        $620        $500
                                                              
Earnings per share:                                            
Basic                                             $0.25       $0.20
Diluted                                           $0.23       $0.19
Weighted average shares outstanding                            
Basic                                             2,496,244     2,470,863
Diluted                                           2,656,559     2,613,106
                                                              

                                            Three Months Ended March 31,
                                            2014              2013
                                                             
Selected Operating Ratios (1):                                
Average yield on interest-earning assets     4.09%             4.30%
Average rate on interest-bearing liabilities 1.10%             1.33%
Average interest rate spread (2)             2.99%             2.97%
Net interest margin (2)                      3.23%             3.26%
Average interest-earning assets to           128.50%           127.72%
averageinterest-bearing liabilities
Net interest income after provisionfor loan 130.79%           113.21%
losses to non-interest expense
Total non-interest expense to average assets 2.38%             2.64%
Efficiency ratio (3)                         66.15%            69.19%
Return on average assets                     0.78%             0.65%
Return on average equity                     4.28%             3.61%
Average equity to average assets             18.26%            17.97%
                                                             
                                                             
                                            At or For the Quarter Ended
                                            March 31,         Dec. 31,
Asset Quality Ratios (4):                    2014              2013
Non-performing loans as a percent oftotal   0.54%             0.53%
loans receivable (5) (6)
Non-performing assets as a percent oftotal 0.60%             0.60%
assets (5)
Allowance for loan losses as a percent       165.24%           167.24%
ofnon-performing loans
Allowance for loan losses as a percent       0.90%             0.89%
oftotal loans receivable (6)
Net charge-offs during the period toaverage 0.00%             0.00%
loans receivable (6) (7)
                                                             
Capital Ratios (4):                                           
Tier 1 leverage ratio                        15.09%            14.80%
Tier 1 risk-based capital ratio              25.69%            25.37%
Total risk-based capital ratio               26.91%            26.58%
                                                             
                                                             
(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
 
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