Louisiana Bancorp, Inc. Announces Earnings for the Second Quarter

Louisiana Bancorp, Inc. Announces Earnings for the Second Quarter

METAIRIE, La., Aug. 1, 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
June 30, 2014 was $519,000, or $0.20 per diluted share, compared to quarterly
net income of $994,000, or $0.38 per diluted share during the second quarter
of 2013. The variance between the respective quarterly periods was primarily
attributable to a decrease in net interest income of $109,000, a decrease in
gains on the sale of mortgage loans of $301,000, and a $234,000 non-recurring
gain on the Company's equity investment in a small business investment company
recognized during the second quarter of 2013. We did not recognize any such
gain in the second quarter of 2014.For the six months ended June 30, 2014,
the Company reported net income of $1.1 million, or $0.43 per diluted share, a
decrease of $355,000 compared to the six months ended June 30, 2013.

Lawrence J. LeBon, III, Chairman, President and Chief Executive Officer of the
Company and the Bank, stated: "On behalf of the Company, I am pleased to
present the results of another profitable quarter for the Company.The growth
in the level of loans originated for investment, as well as for sale in the
secondary market, continues to serve as the primary driver of our profitably
and as a catalyst for the development of new deposit customers.Our business
model remains focused on the development of these long-term customer
relationships, which in time will lead to increased value to our
shareholders."

Total assets were $317.3 million at June 30, 2014, an increase of $574,000
compared to December 31, 2013.During the first six months of 2014, our asset
growth was primarily attributable to a $7.8 million increase in our net loan
portfolio.The net loan portfolio was $255.3 million at June 30, 2014 compared
to $247.5 million at December 31, 2013. Loan growth during the first six
months of 2014 was fueled primarily by a $6.3 million increase in our
single-family residential mortgage loans and a $3.3 million increase in our
funded home equity loans and lines of credit. Partially offsetting the
increases in our single-family residential mortgage loans and home equity
loans and lines of credit were decreases in the outstanding balances of our
loans secured by multifamily residential mortgage loans and by commercial real
estate of $1.5 million and $270,000, respectively, during the first six months
of 2014. In addition, in the six month period ended June 30, 2014, our cash
and cash equivalents decreased by $2.8 million to $4.2 million.Total
securities available-for-sale decreased by $2.6 million and total securities
held-for-investment decreased by $2.4 million during the first six months of
2014.

Total deposits decreased by $3.9 million, to $198.6 million at June 30, 2014
compared to $202.5 million at December 31, 2013.This decrease was primarily
due to the withdrawal of short-term interest bearing deposits by a single
commercial depositor, which had been expected. During the first six months of
2014, non-interest bearing deposits increased by $1.3 million to $16.4
million, and interest-bearing deposits decreased by $5.2 million to $182.2
million.Total Federal Home Loan Bank advances were $55.5 million at June
30, 2014, an increase of $4.4 million from December 31, 2013.This increase in
FHLB advances was in the form of short-term advances which were used to offset
the out flow of deposits and fund the growth in our loan portfolio during the
period.

Total shareholders' equity was $57.6 million at June 30, 2014 and $57.9
million at December 31, 2013.Net income of $1.1 million during the first half
of 2014 was partially offset by treasury stock repurchases and the payment of
a two quarterly cash dividends.During the six months ended June 30, 2014, the
Company acquired 61,474 shares of its common stock at a total cost of $914,000
pursuant to its repurchase plans. Additionally, the Company paid quarterly
cash dividends of $.05 per share of common stock, or $288,000 in the aggregate
for the first and second quarter.The Bank's Tier 1 leverage ratio, Tier 1
risk-based capital ratio, and total risk-based capital were 15.12%, 25.04%,
and 26.19%, respectively, at June 30, 2014.

Net interest income was approximately $2.4 million during the second quarter
of 2014, a decrease of $109,000 compared to the second quarter of
2013.Between the respective quarterly periods, the average yield on our
interest-earning assets declined by 24 basis points while the average cost of
our interest-bearing liabilities decreased 12 basis points, resulting in a 12
basis point decrease in the average interest rate spread.Our net interest
margin, which expresses net interest income as a percentage of average
interest-earning assets, was 3.15% and 3.28%, respectively, for the three
month periods ended June 30, 2014, and June 30, 2013.During the second
quarter of 2014, interest income was $3.1 million, a decrease of $199,000
compared to the second quarter of 2013.The average balance of interest
earning assets decreased by $1.2 million and the average yield on
interest-earning assets decreased from 4.25% to 4.01% during the three month
period ended June 30, 2014 compared to the same three month period in the
prior year. Interest income on loans receivable was $2.7 million during the
second quarter of 2014, with an average balance of $250.8 million and an
average yield of 4.34%.Similarly, interest income of $2.8 million was earned
on loans receivable with an average balance of $230.7 million and an average
yield of 4.80% during the second quarter of 2013.The average balance of our
mortgage-backed securities and CMOs decreased by $15.1 million, to $47.3
million, during the second quarter of 2014 compared to the second quarter of
2013, resulting in a decrease of $128,000 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 second quarter of
2014 was $14,000, at an average yield of 3.73%, compared to $37,000, at an
average yield of 2.33%, during the second quarter of 2013.Interest income
earned on other interest-earning assets was $7,000 and $5,000, respectively,
for the three month periods ended June 30, 2014 and 2013.

During the six month period ended June 30, 2014, net interest income was $4.9
million, a decrease of $70,000 compared to the six month period ended June 30,
2013.Our net interest rate spread between the respective six month periods
decreased by six basis points and our net interest margin decreased by eight
basis points.Interest income decreased by $279,000, to $6.2 million, during
the first six months of 2014 compared to the first six months of 2013.Between
the respective six month periods, the interest income benefit derived from a
$3.4 million increase in our average interest-earning assets was offset by a
23 basis point decrease in the average yield earned on such assets.Interest
income on mortgage loans receivable was $5.5 million and $5.4 million,
respectively, during the six month periods ended June 30, 2014 and
2013.During these six month periods, the average balance of mortgage loans
receivable increased by $26.4 million, however the average yield decreased by
48 basis points.The growth in the average balance of our mortgage loans
receivable was partially offset by a $17.6 million decrease in the average
balance of our mortgage-backed securities and CMOs, a $4.1 million decrease in
the average balance of our investment securities, and a $1.4 million decrease
in other interest-earning assets.The average yield earned on total
interest-earning assets during the first six months of 2014 was 4.05% compared
to 4.28% during the first six months of 2013.

Total interest expense was $660,000, with our interest-bearing liabilities
having an average cost of 1.11%, during the second quarter of 2014, compared
to interest expense of $750,000 and an average cost of 1.23% for the second
quarter of 2013.The average rate paid on interest-bearing deposits was 0.85%
during the quarter ended June 30, 2014, a decrease of seven basis points from
the quarter ended June 30, 2013.Interest expense on borrowings was $268,000
at an average cost of 2.03% during the second quarter of 2014, and $328,000 at
an average cost of 2.20% during the second quarter of 2013. 

For the six month period ended June 30, 2014, total interest expense was $1.3
million, a decrease of $209,000 compared to the six month period ended June
30, 2013.Average interest-bearing liabilities were $238.9 million with an
average cost of 1.11% during the first half of 2014 compared to average
interest-bearing liabilities of $239.4 million with an average cost of 1.28%
during the first half of 2013.

The Company recorded a provision for loan losses of $44,000 during the second
quarter of 2014 compared to $6,000 during the second quarter of 2013.Our
allowance for loan losses was $2.2 and $2.1 million, respectively, at June 30,
2014 and 2013. At such dates, our allowance for loan losses was 0.85% and
0.88%, respectively, of total loans receivable.

During the six month periods ended June 30, 2014 and June 30, 2013, the
Company reported provisions for loan losses of $65,000 and $147,000,
respectively.At June 30, 2014, total non-performing loans were $1.1 million,
or 0.41% of total loans, and total non-performing assets were $1.8 million, or
0.58% of total assets.At June 30, 2013, total non-performing loans were $1.2
million and total non-performing assets were $1.8 million.

Non-interest income for the second quarter of 2014 was $395,000, a decrease of
$585,000 from the second 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 $164,000 during the second quarter
of 2014, a decrease of $67,000 from the comparable 2013 period.Gains on the
sale of mortgage loans decreased from $483,000 during the second quarter of
2013 to $182,000 during the second quarter of 2014 due to a decrease of $11.5
million in the principal balance of loans sold during the respective
periods.During the second quarter of 2013, the Company recorded a $234,000
gain on an equity investment in a small business investment company
("SBIC").There was no such gain realized during the second quarter of
2014.Other non-interest income was $19,000 and $32,000, respectively, during
the three month periods ended June 30, 2014 and 2013.

For the six month periods ended June 30, 2014 and 2013, total non-interest
income was $759,000 and $1.5 million, respectively.Customer service fees
decreased by $104,000 between the six month periods due primarily to a
$179,000 decrease in commissions earned on brokered loan transactions.This
decrease was partially offset by an increase of $35,000 in deposit account
service charges and a $40,000 increase in loan servicing fees.Gains on the
sale of mortgage loans were $323,000 during the second quarter of 2014
compared to $664,000 during the second quarter of 2013.This decrease in gains
on the sale of mortgage loans was directly related to a $15.4 million decrease
in the principal balance of loans sold between the respective six month
periods.Gains on the sale of securities were $30,000 during the first six
months of 2014.There were no such sales during the first half of 2013.The
Company recorded a gain of $7,000 on its investment in a SBIC during the six
month period ended June 30, 2014 compared to a gain of $293,000 recorded
during the six month period ended June 30, 2013.

Total non-interest expense was $2.0 million for each of the quarterly periods
ended June 30, 2014 and 2013. Salaries and employee benefits expense
increased by $23,000, to $1.1 million, for the quarter ended June 30, 2014
compared to the quarter ended June 30, 2013.Occupancy expenses increased by
$42,000, to $379,000, during the second quarter of 2014 compared to the second
quarter of 2013 due primarily to increased data processing costs and certain
costs associated with the renovations of one of our branch offices.Legal
expenses decreased by $41,000, to $33,000, between the respective quarters
ended June 30, 2014 and 2013. The Louisiana bank shares tax was $48,000 and
$58,000, respectively, and our FDIC deposit insurance premiums were $37,000
and $38,000, respectively, for the three month periods ended June 30, 2014 and
June 30, 2013.The net cost associated with our OREO operations was $42,000
during the second quarter of 2014 compared to $55,000 during the second
quarter of 2013.Advertising expense decreased by $16,000 to $83,000 during
the second quarter of 2014 compared to the second quarter of 2013, due to a
reduction in consulting fees associated with our marketing programs.Other
non-interest expenses were $150,000 for the second quarter of 2014, and
$155,000 for the second quarter of 2013.

Non-interest expense for the first six months of 2014 was $3.9 million, a
decrease of $157,000 compared to the first six months of 2013.Salaries and
employee benefits cost decreased by $88,000 between the respective six month
periods, to $2.3 million, due primarily to a reduction in the cost of our
equity compensation plans.During the first quarter of 2013, the majority of
the awards associated with these plans became fully vested and
expensed.Occupancy expense for the six months ended June 30, 2014 was
$739,000, an increase of $71,000 compared to the six months ended June 30,
2013.This increase was attributed to the aforementioned increase in data
processing cost and certain costs associated with the renovation of a branch
office.Our bank shares tax expense decreased by $19,000, legal expenses
decreased by $60,000, OREO operating cost decreased by $28,000, and
advertising expense decreased by $50,000 during the six months ended June 30,
2014 compared to the six months ended June 30, 2013.

For the three month period ended June 30, 2014, the Company recorded income
tax expense of $268,000, a decrease of $251,000 from the three month period
ended June 30, 2013. This decrease in income tax expense was primarily due to
a decrease in pre-tax income of $726,000 between the respective quarterly
periods.

Income tax expense was $591,000 based on pre-tax income of $1.7 million during
the first six months of 2014 compared to income tax expense of $785,000 on
pre-tax income of $2.3 million during the first six months of 2013.

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)
                                                                       
                                         June 30,    December            
                                                      31,
                                         2014        2013                
                                         (unaudited)                    
                                                                       
Selected Financial and Other Data:                                      
Total assets                              $317,282  $316,708          
Cash and cash equivalents                 4,179      6,964               
Securities available-for-sale:                                          
Investment securities                    --         2,023              
Mortgage-backed securities & CMOs        2,905      3,463              
Equity Securities                        223        280                
Securities held-to-maturity:                                            
Investment securities                    2,883      --                 
Mortgage-backed securities & CMOs        42,036     47,346             
Loans receivable, net                     255,299    247,479            
Deposits                                  198,638    202,508            
FHLB advances and other borrowings        55,451     51,040             
Shareholders' equity                      57,635     57,939             
                                                                       
Book Value per Share                      $20.40      $20.07              
                                                                       
                                                                       
                                         Three Months Ended     Six Months Ended
                                          June 30,               June 30,
                                         2014        2013       2014      2013
                                         (unaudited)            (unaudited)
Selected Operating Data:                                                
Total interest income                     $3,088    $3,287   $6,234  $6,513
Total interest expense                    660         750        1,320     1,529
Net interest income                       2,428       2,537      4,914     4,984
Provision for loan losses                 44          6          65        147
Net interest income after provision for   2,384       2,531      4,849     4,837
loan losses
Total non-interest income                 395         980        759       1,477
Total non-interest expense                1,992       1,998      3,878     4,035
Income before income taxes                787         1,513      1,730     2,279
Income taxes                              268         519        591       785
Net income                                $519      $994     $1,139  $1,494
                                                                       
Earnings per share:                                                     
Basic                                     $0.21     $0.40    $0.46   $0.60
Diluted                                   $0.20     $0.38    $0.43   $0.57
Weighted average shares outstanding                                     
Basic                                     2,472,698   2,478,520  2,484,406 2,474,713
Diluted                                   2,647,488   2,606,964  2,651,958 2,610,056
                                                                       
                                                                       
                                                                       
                                                                       
                                                                       
                                         Three Months Ended     Six Months Ended
                                          June 30,               June 30,
                                         2014        2013       2014      2013
                                                                       
Selected Operating Ratios(1):                                           
Average yield on interest-earning assets  4.01%       4.25%      4.05%     4.28%
Average rate on interest-bearing          1.11%       1.23%      1.11%     1.28%
liabilities
Average interest rate spread(2)           2.90%       3.02%      2.94%     3.00%
Net interest margin(2)                    3.15%       3.28%      3.19%     3.27%
Average interest-earning assets to        129.45%     126.76%    128.95%   127.25%
averageinterest-bearing liabilities
Net interest income after provisionfor   119.68%     126.68%    125.04%   119.88%
loan losses to non-interest expense
Total non-interest expense to average     2.52%       2.52%      2.45%     2.58%
assets
Efficiency ratio(3)                       70.56%      56.81%     68.36%    62.45%
Return on average assets                  0.66%       1.25%      0.72%     0.95%
Return on average equity                  3.59%       7.14%      3.94%     5.37%
Average equity to average assets          18.26%      17.54%     18.25%    17.77%
                                                                       
                                                                       
                                         At or For the Period Ended       
                                         June 30,   March 31,  Dec. 31,  
Asset Quality Ratios(4):                  2014        2014       2013      
Non-performing loans as a percent of      0.41%       0.54%      0.53%     
total loans receivable (5) (6)
Non-performing assets as a percent of   0.58%       0.60%      0.60%     
total assets(5)
Allowance for loan losses as a percent of 208.54%     165.24%    167.24%   
non-performing loans
Allowance for loan losses as a percent of 0.85%       0.90%      0.89%     
total loans receivable (6)
Net charge-offs during the period to     0.04%       0.00%      0.00%     
average loans receivable (6)(7)
                                                                       
Capital Ratios(4):                                                      
Tier 1 leverage ratio                     15.12%      15.09%     14.80%    
Tier 1 risk-based capital ratio           25.04%      25.69%     25.37%    
Total risk-based capital ratio            26.19%      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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