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Hibernia Bancorp, Inc. Reports Operating Results for the Third Quarter and Nine Months Ended September 30, 2017

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NEW ORLEANS, Nov. 09, 2017 (GLOBE NEWSWIRE) -- Hibernia Bancorp, Inc.  (the "Company") (OTC:HIBE), the holding company of Hibernia Bank ("Hibernia" or the "Bank"), today reported net income of $104,000 for the quarter ended September 30, 2017 compared to net income of $49,000 for the quarter ended September 30, 2016.  Earnings per basic and diluted share were $0.13 for the quarter ended September 30, 2017, compared to $0.06 per basic and diluted share for the quarter ended September 30, 2016.  For the nine months ended September 30, 2017, the Company reported net income of $260,000 compared to net income of $158,000 for the nine months ended September 30, 2016.  Earnings per basic and diluted share were $0.33 for the nine months ended September 30, 2017, compared to $0.20 and $0.19, respectively, for the nine months ended September 30, 2016.

For the quarter ended September 30, 2017, net interest income increased 20.0% to $1.1 million from $906,000 for quarter ended September 30, 2016.  Total interest and dividend income increased $241,000, or 21.4%, for the quarter ended September 30, 2017 compared to the quarter ended September 30, 2016.  The increase in interest and dividend income was primarily due to an increase in the average balance of loans, and to a lesser extent, an increase in average yields on loans, interest-bearing cash and investment securities.    Total interest expense increased $60,000, or 27.1%, for the quarter ended September 30, 2017 compared to the quarter ended September 30, 2016.  The increase in interest expense for the quarter ended September 30, 2017 as compared to the quarter ended September 30, 2016 was primarily due to higher average rates on deposits and FHLB advances and, to a lesser extent, higher average balances of interest bearing deposits and FHLB advances.  The net interest margin increased 27 basis points to 3.39% for the quarter ended September 30, 2017 as compared to 3.12% for the quarter ended September 30, 2016. 

The Company made a $31,000 loan loss provision for the quarter ended September 30, 2017, compared to $18,000 for the quarter ended September 30, 2016.  The increase in the loan loss provision in the 2017 period is due to the increasing volume of loans outstanding.  The Company reported no net charge-offs for the quarters ended September 30, 2017 and 2016.

Non-interest income increased to $73,000 for the quarter ended September 30, 2017 from $33,000 for the quarter ended September 30, 2016.  The increase was primarily due to a $37,000 gain recognized during the quarter ended September 30, 2017 resulting from the receipt of insurance proceeds in excess of costs incurred to repair flood damage to the Bank's main office.  

Non-interest expenses increased 15.1% to $966,000 for the quarter ended September 30, 2017 from $839,000 for the quarter ended September 30, 2016.  The increase in non-interest expenses was due primarily to increases in professional fees, salaries and employee benefits and data processing.

For the nine months ended September 30, 2017, net interest income increased 11.9% to $3.0 million from $2.7 million for the nine months ended September 30, 2016.  Total interest and dividend income increased $477,000, or 14.4%, for the nine months ended September 30, 2017 compared to the nine months ended September 30, 2016.  The increase in interest and dividend income was primarily due to an increase in the average balance of loans for the nine months ended September 30, 2017 compared to the nine months ended September 30, 2016, and to a lesser extent, an increase in average yields on loans, interest-bearing cash and investment securities.  Total interest expense increased $154,000, or 25.5%, for the nine months ended September 30, 2017 compared to the nine months ended September 30, 2016.  This increase was primarily due to a higher average rate on deposits and, to a lesser extent, higher average balances of interest bearing deposits and FHLB advances as well as a higher average rate on FHLB advances.  The net interest margin increased nine basis points to 3.30% for the nine months ended September 30, 2017 from 3.21% for the nine months ended September 30, 2016.

During the nine months ended September 30, 2017, the Company made provisions for loan losses of $88,000, compared to provisions of $50,000 during the nine months ended September 30, 2016.  The increase in the loan loss provision in the 2017 period is due to the increasing volume of loans outstanding. The Company reported no net charge-offs for the nine months ended September 30, 2017 and 2016.

Non-interest income increased $40,000, or 36.4%, for the nine months ended September 30, 2017 compared to the nine months ended September 30, 2016.  This increase in non-interest income was primarily due to the $37,000 gain recognized during the quarter ended September 30, 2017 as mentioned above. 

Non-interest expenses for the nine months ended September 30, 2017 increased $176,000, or 7.0%, to $2.7 million compared to $2.5 million for the nine months ended September 30, 2016. The increase in non-interest expenses was due to increases in salaries, employee benefits, professional fees and data processing expenses, partially offset by decreases in occupancy expenses and other non-interest expenses.

Hibernia Bancorp's total consolidated assets at September 30, 2017 were $136.5 million compared to $124.7 million at December 31, 2016, an increase of $11.8 million, or 9.4%.  The increase was primarily due to an $11.1 million, or 10.6%, increase in net loans receivable to $115.6 million at September 30, 2017 from $104.5 million at December 31, 2016.  Cash and cash equivalents increased by $1.5 million, or 25.4%, at September 30, 2017 compared to December 31, 2016.  Investment securities decreased by $733,000, or 8.4%, as a result of maturities and repayments.  The increase in net loans was primarily due to a $7.8 million net increase in commercial real estate loans and a net increase of $3.8 million in loans secured by residential real estate, offset slightly by a net decrease of $359,000 in commercial and industrial and consumer loans.  Total deposits increased 8.0% to $108.9 million at September 30, 2017 from $100.9 million at December 31, 2016, reflecting increases of $4.0 million in certificates of deposit, $3.2 million in money market and interest bearing checking accounts, $546,000 in non-interest bearing demand deposits and $315,000 in savings accounts.

Non-performing assets, defined as non-accrual loans, accruing loans past due 90 days or more and other real estate owned, decreased to 0.2% from 0.3% of total assets, totaling $209,000 at September 30, 2017, compared to $316,000 at December 31, 2016.  The non-performing assets at September 30, 2017 consisted of four loans secured by first mortgages on one-to-four family residential real estate.   At September 30, 2017 and December 31, 2016, there was no other real estate owned. 

Our allowance for loan losses was $929,000, or 0.80%, of total loans at September 30, 2017, compared to $841,000, or 0.80%, of total loans at December 31, 2016.  Management believes that the allowance for loan losses is sufficient to cover any losses that may be incurred on its loans. 

The Company's total stockholders' equity increased to $20.7 million as of September 30, 2017 from $20.4 million as of December 31, 2016.   During the nine months ended September 30, 2017, the Company repurchased 992 shares of its common stock for an aggregate cost of $19,000.  An additional 61,908 shares are available under the Company's sixth stock repurchase program.  The Company's book value per share increased to $24.53 at September 30, 2017 from $24.06 at December 31, 2016 primarily due to our net income for the nine month period.  Hibernia Bank's regulatory capital levels continue to exceed requirements for well capitalized institutions. 

Statements contained in this news release which are not historical facts may be forward-looking statements identified by words like "believe," "expect," "anticipate," "estimate," and "intend" or future or conditional verbs such as "will," "would," "should," "could" or "may."  Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors, including, but not limited to, changes in interest rates, changes in demand for loans, deposits and other financial services in the Company's market area, changes in asset quality and general economic conditions. We undertake no obligation to update any forward-looking statements.

Hibernia Bank, the wholly-owned subsidiary of Hibernia Bancorp, Inc., has served the New Orleans metropolitan area since 1903.   Operating from its main office and two branches, Hibernia Bank offers loan, deposit and on-line banking services to commercial and individual customers in the New Orleans metropolitan area.   Additional information about Hibernia Bank is available at www.hibernia.bank.

                 
Hibernia Bancorp, Inc. and Subsidiary                
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION                 
(In thousands)                
    September 30,   December 31,                
     2017     2016                 
    (Unaudited)                    
ASSETS                        
                         
Cash - Non-Interest Bearing    $   947     $   1,176                  
Cash - Interest Bearing       6,306         4,608                  
                                 
Total Cash and Cash Equivalents       7,253         5,784                  
                         
Certificates of Deposit       100         100                  
Securities - Available for Sale       8,030         8,763                  
Loans Receivable, Net of Allowances for Loan   
 Losses of $929,000 and $841,000 at September 30, 2017               
 and December 31, 2016, respectively      115,559         104,467                  
Accrued Interest Receivable       306         266                  
Investment in FHLB Stock       296         187                  
Investment in FNBB Stock       210         210                  
Premises and Equipment, Net       4,124         4,351                  
Deferred Income Taxes       444         417                  
Prepaid Expenses and Other Assets       138         159        
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