Hibernia Homestead Bancorp, Inc. Reports Operating Results for the Third Quarter Ended September 30, 2009

• Press Release
• Source: Hibernia Homestead Bancorp, Inc.
• On 8:00 pm EST, Tuesday November 3, 2009

NEW ORLEANS, Nov. 3 /PRNewswire-FirstCall/ -- Hibernia Homestead Bancorp, Inc. (the "Company") (OTC Bulletin Board: HIBE - News), the holding company of Hibernia Homestead Bank (the "Bank"), today reported a net loss of $56,000 for the quarter ended September 30, 2009 compared to a net loss of $135,000 for the quarter ended September 30, 2008. For the nine months ended September 30, 2009, the Company reported a net loss of $251,000 compared to a net loss of $359,000 for the nine months ended September 30, 2008.

A. Peyton Bush, III, President and Chief Executive Officer of the Company and Bank, stated, "Hibernia continues to make progress in executing its plan of transition from traditional mortgage lender to diversified community bank. We are confident that our efforts to expand services and develop new commercial banking relationships will allow us to profitably deploy the capital raised in our public stock offering earlier this year."

Net interest income increased 41.9% to $515,000 for the quarter ended September 30, 2009 from $363,000 for quarter ended September 30, 2008. The increased net interest income was primarily due to a $98,000, or 21.6%, increase in interest income from loans, including a $54,000 increase due to the introduction of commercial lending during 2009. The increase in interest income from loans was partially offset by lower interest income on investments. Also contributing to the increased net interest income was a $93,000, or 41.0%, decrease in interest expense on deposits.

Non-interest income for the third quarter of 2009 increased $89,000 from the same period in 2008 primarily due to a gain on the sale of investments of $83,000. Non-interest expense increased 15.2% from $592,000 for the quarter ended September 30, 2008 to $682,000 for the quarter ended September 30, 2009. The increase in non-interest expense for the third quarter of 2009 was primarily due to increases in advertising, professional fees, personnel expense, and expenses related to foreclosed property.

For the nine months ended September 30, 2009, net interest income increased 39.8% to $1.4 million from $1.0 million for the same period in 2008, primarily due to a $317,000, or 41.9%, decrease in interest expense on deposits and a $178,000, or 13.3%, increase in interest income from loans. The increase in interest income from loans was partially offset by a $94,000 decrease in interest income from investments.

Non-interest expense for the nine months ended September 30, 2009 increased 15.5% to $1.9 million from $1.7 million for the nine months ended September 30, 2008. The increase in non-interest expense for the nine months ended September 30, 2009 was due primarily to higher personnel expense, professional fees, data processing costs, occupancy expense, insurance expenses and expenses related to foreclosed property. Non-interest expense for the nine months ended September 30, 2009 included a mandatory $19,000 special deposit insurance assessment paid to the Federal Deposit Insurance Corporation which was assessed in the quarter ended June 30, 2009 for all insured depository institutions.

Hibernia Homestead Bancorp's total consolidated assets at September 30, 2009 were $60.7 million compared to $58.2 million at December 31, 2008. Net loans increased 23.0% from $32.3 million at December 31, 2008 to $39.7 million at September 30, 2009. This increase in net loans was partially offset by decreases of $3.4 million of federal funds sold and $2.6 million of investment securities. Total deposits decreased $6.4 million, or 14.7%, from $43.1 million at December 31, 2008 to $36.8 million at September 30, 2009. Deposits as of December 31, 2008 included $9.3 million in deposits being held in escrow for stock subscriptions in connection with the Company's public offering completed in January 2009.

Nonperforming assets, defined as non-accrual loans, accruing loans past due 90 days or more and foreclosed property, totaled $354,000, or 0.6%, of total assets at September 30, 2009, compared to $150,000, or 0.3%, of total assets at December 31, 2008. The non-performing loans totaling $157,000 at September 30, 2009 consist of two loans secured by first mortgages on one-to-four family residential real estate. Management believes that the allowance for loan and lease losses is sufficient to cover any losses that may be incurred on these loans. Foreclosed property at September 30, 2009 totaling $197,000 consisted of two residential homes in the greater New Orleans area.

On January 27, 2009, the Bank converted from a mutual to a stock form of organization as a wholly-owned subsidiary of Hibernia Homestead Bancorp, Inc. The Company completed an initial public offering in which it issued 1,113,334 shares of its common stock for $10.4 million in offering proceeds, net of offering expenses.

On a consolidated basis, Hibernia Homestead Bancorp had total equity at September 30, 2009 of $23.5 million, or 38.7% of total consolidated assets. Hibernia Homestead Bank had total equity at September 30, 2009 of $19.3 million. The Bank's Tier 1 Leverage capital ratio at September 30, 2009 was 31.8% and its Total Risk-Based capital ratio was 58.9%, both well above the regulatory requirements of 4% and 8%, respectively.

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

Statements contained in this news release which are not historical facts may be forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like "believe," "expect," "anticipate," "estimate," and "intend" or future or conditional verbs such as "will," "would," "should," "could" or "may." We undertake no obligation to update any forward-looking statements.

                 Hibernia Homestead Bancorp, Inc. and Subsidiary
             CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                                  (In thousands)

                                                   September 30,  December 31,
                                                       2009           2008
                                                   -------------  ------------
                                                     (Unaudited)



                      ASSETS

      Cash, Non-Interest Bearing                       $1,262          $879
      Cash, Interest-Bearing                              516            16
      Federal Funds Sold                                2,625         5,975

                                                        -----         -----
             TOTAL CASH AND CASH EQUIVALENTS            4,403         6,870

      Certificates of Deposit                             715             -
      Investment Securities Available-for-Sale          9,321        11,947
      Loans Receivable, Net                            39,695        32,273
      Accrued Interest Receivable                         199           192
      Investment in FHLB of Dallas Stock                  171           171
      Investment in FNBB Stock                            210           210
      Foreclosed Assets                                   197             -
      Premises and Equipment, Net                       5,191         5,346
      Deferred Income Taxes                               445           339
      Prepaid Expenses and Other Assets                   170           868

                                                      -------       -------
             TOTAL ASSETS                             $60,717       $58,216
                                                      =======       =======


                  LIABILITIES AND EQUITY


    LIABILITIES

      Deposits                                        $36,788       $43,143
      Advance Payments by Borrowers for
       Taxes and Insurance                                369           410
      Accrued Interest Payable                              4             7
      Accounts Payable and Other Liabilities               80           482

                                                       ------        ------
             TOTAL LIABILITIES                         37,241        44,042


    COMMITMENTS AND CONTINGENCIES                           -             -


    EQUITY

      Preferred Stock, $.01 par value;
       1,000,000 authorized; none issued                    -             -
      Common Stock, $.01 par value;
       9,000,000 authorized; 1,113,334  and
       none issued; 1,113,334 and none outstanding at
       September 30, 2009 and December 31, 2008,
       respectively                                        11             -
      Additional Paid In Capital                       10,361             -
      Unearned ESOP Shares                               (864)            -
      Accumulated Other Comprehensive Income,
       Net                                                153           108
      Retained Earnings                                13,815        14,066

                                                       ------        ------
             TOTAL EQUITY                              23,476        14,174
                                                      -------       -------
             TOTAL LIABILITIES AND EQUITY             $60,717       $58,216
                                                      =======       =======

              Hibernia Homestead Bancorp, Inc. and Subsidiary

              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
               (Dollars in thousands, except per share data)

                                  Three Months     Nine Months
                                     Ended           Ended
                                  September 30,   September 30,
                                  -------------   -------------
                                   2009   2008    2009    2008
                                  -----   -----   ----    -----
                                   (Unaudited)    (Unaudited)


    Total Interest Income          $649   $590  $1,879 $1,792

    Total Interest Expense          134    227     439    762
                                    ---    ---     ---    ---

    Net Interest Income             515    363   1,440  1,030

    Provision for Loan Losses        33      -      48      -
                                     --     --      --     --

    Net Interest Income
     After Provision
     for Loan Losses                482    363   1,392  1,030

    Total Non-Interest Income       114     25     172    109

    Total Non-Interest Expenses     682    592   1,944  1,683
                                    ---    ---   -----  -----

    Loss Before Provision For
     Income Taxes                   (86)  (204)   (380)  (544)
      Income Tax Benefit            (30)   (69)   (129)  (185)
                                    ---    ---    ----   ----
      NET LOSS                     $(56) $(135)  $(251) $(359)
                                   ====  =====   =====  =====

    LOSS PER COMMON SHARE
      Basic                      $(0.05)  N/A   $(0.23)  N/A
      Diluted                    $(0.05)  N/A   $(0.23)  N/A

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