Hibernia Bancorp : Reports Operating Results for the First Quarter Ended June 30, 2016

CONTACT:

A. Peyton Bush, III, President and Chief Executive Officer

Donna T. Guerra, Chief Operating Officer and Chief Financial Officer 504‐522‐3203

New Orleans, Louisiana (August 8, 2016) ‐ Hibernia Bancorp, Inc. (the "Company") (OTCBB: HIBE), the holding company of Hibernia Bank ("Hibernia" or the "Bank"), today reported net income of $50,000 for the quarter ended June 30, 2016 compared to net income of $49,000 for the quarter ended June 30, 2015. Earnings per basic and diluted share were $0.07 and $0.06, respectively, for the quarter ended June 30, 2016, compared to $0.06 per basic and diluted share for the quarter ended June 30, 2015. For the six months ended June 30, 2016, the Company reported net income of $109,000 compared to net income of $77,000 for the six months ended June 30, 2015. Earnings per basic and diluted share were $0.14 and $0.13, respectively, for the six months ended June 30, 2016, compared to $0.09 per basic and diluted share for the six months ended June 30, 2015.

Peyton Bush, III, President and Chief Executive Officer of the Company and the Bank, stated, "Net interest income after provision for loan losses increased 6.0% for the second quarter of 2016 compared to the same period in 2015. However, net income was essentially flat compared to the prior year period primarily due to an increase in other non‐interest expenses. Net income for the first half of 2016 increased 41.5% over the prior year period. Loan quality remains strong with non‐performing assets at 0.2% of total assets at June 30, 2016."

Net interest income increased 3.6% to $898,000 for the quarter ended June 30, 2016, from

$867,000 for quarter ended June 30, 2015. Total interest and dividend income increased

$79,000, or 7.8%, for the quarter ended June 30, 2016 compared to the quarter ended June 30, 2015. The increase in interest and dividend income reflects a net increase in interest‐earning assets and a change in the mix of earning assets from lower earning to higher earning assets.

HIBERNIA BANCORP, INC.

325 Carondelet St., New Orleans, LA 70131 Phone (504) 522-3203 Fax (504) 522-3217

Total interest expense increased $48,000, or 31.8%, for the quarter ended June 30, 2016 compared to the quarter ended June 30, 2015. The increase in interest expense for the quarter ended June 30, 2016 as compared to the quarter ended June 30, 2015 was primarily due to higher average balances of interest bearing deposits. The net interest margin decreased to 3.22% for the quarter ended June 30, 2016 as compared to 3.38% for the quarter ended June 30, 2015.

The Company made an $8,000 loan loss provision for the quarter ended June 30, 2016, compared to $27,000 for the quarter ended June 30, 2015. The Company reported no net charge‐offs for the quarters ended June 30, 2016 and 2015.

Non‐interest income increased to $34,000 for the quarter ended June 30, 2016 from $24,000 for the quarter ended June 30, 2015. The increase in non‐interest income was primarily due to higher net rental income which resulted from lower repairs and maintenance expenses on office space leased by the Bank to third parties.

Non‐interest expense increased 7.3% to $841,000 for the quarter ended June 30, 2016 from

$784,000 for the quarter ended June 30, 2015. Income tax expense for the quarter ended June 30, 2016 was $33,000 as compared to $31,000 for the quarter ended June 30, 2015. The increase in income tax expense was due to the slight increase in the Company's pre‐tax income.

For the six months ended June 30, 2016, net interest income increased 6.0% to $1.8 million from $1.7 million for the six months ended June 30, 2015. This increase was due primarily to an increase of $8.9 million in the average balance of loans for the six months ended June 30, 2016 compared to the six months ended June 30, 2015. Total interest expense increased $93,000, or 32.1%, for the six months ended June 30, 2016 compared to the six months ended June 30, 2015. This increase is attributable to both an increase in the average rate paid for deposits as well as an increase in the average balance of our interest bearing deposits for the six months ended June 30, 2016 compared to the six months ended June 30, 2015. The net interest margin decreased to 3.26% for the six months ended June 30, 2016 from 3.40% for the six months ended June 30, 2015.

During the six months ended June 30, 2016, the Company made provisions for loan and lease losses of $32,000 compared to provisions of $42,000 during the six months ended June 30, 2015. The Company reported no net charge‐offs for the six months ended June 30, 2016 and 2015.

Non‐interest expense for the six months ended June 30, 2016 increased $74,000, or 4.6%, to

$1.67 million compared to $1.60 million for the six months ended June 30, 2015. For the six months ended June 30, 2016, income tax expense was $72,000 compared to $57,000 for the six

months ended June 30, 2015. Income tax expenses are computed by applying the statutory rate to federal taxable income, which consists of financial statement income before taxes, increased by the amount of permanent income tax differences for the period.

Hibernia Bancorp's total consolidated assets at June 30, 2016 were $119.7 million compared to

$112.9 million at December 31, 2015, an increase of $6.9 million, or 6.1%. Cash and Cash Equivalents increased by $5.3 million, or 170.7%, at June 30, 2016 compared to December 31, 2015. Investment securities increased by $716,000, or 10.4%, as a result of investment purchases of $1.1 million partially offset by maturities and repayments. Net loans increased 0.9% to $97.9 million at June 30, 2016 from $97.1 million at December 31, 2015. The increase in net loans reflects a $3.8 million net increase in commercial loans partially offset by an aggregate decrease of $2.4 million in residential mortgage and residential construction loans and a $500,000 decrease in commercial and industrial loans. Total deposits increased 8.3% to

$97.0 million at June 30, 2016 from $89.6 million at December 31, 2015, reflecting increases of

$6.0 million in certificates of deposit, $1.7 million in money market and interest bearing checking accounts and $268,000 in non‐interest bearing demand deposits partially offset by decreases of $596,000 in savings accounts.

Non‐performing assets, defined as non‐accrual loans, accruing loans past due 90 days or more and other real estate owned, remained at 0.2% of total assets, totaling $251,000 at June 30, 2016, compared to $259,000 at December 31, 2015. The non‐performing assets at June 30, 2016 consisted of four loans secured by first mortgages on one‐to‐four family residential real estate. Our allowance for loan and lease losses was $808,000, or 0.82%, of total loans at June 30, 2016, and $776,000, or 0.79%, of total loans at December 31, 2015. Management believes that the allowance for loan and lease losses is sufficient to cover any losses that may be incurred on its loans. At June 30, 2016 and December 31, 2015, there was no other real estate owned.

The Company's total stockholders' equity decreased slightly to $20.5 million as of June 30, 2016 from $20.8 million as of December 31, 2015. During the six months ended June 30, 2016, the Company repurchased 23,966 shares of its common stock for an aggregate cost of $478,000.

An additional 244 shares are available under the Company's fifth stock repurchase program. The Company's book value per share increased to $23.98 at June 30, 2016 from $23.62 at December 31, 2015 due to our net income for the six month period and our stock repurchases. 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.hibbank.com.

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