Louisiana Bancorp income grows 3.8 percent in first year public

New Orleans CityBusiness, Feb 3, 2009

Fourth-quarter earnings were down for the parent company of Bank of New Orleans, but 2008 still ended on a high note with net income up 3.8 percent.

It marked the first full fiscal year for Louisiana Bancorp Inc. as a publicly traded company. Traded under the symbol LABC on the Nasdaq exchange, it earned $2.74 million in 2008, up from $2.64 million the previous year. LABC credits the increase to higher interest income from higher average balances from assets following its initial public offering in July 2007.

The company reported income of $737,000 for the three months ending Dec. 31, down 24 percent, or $235,000, from fourth quarter 2007. The company attributes the period's earnings dip to a reduction in loan loss recovery and an increase in expenses related to related to an employee stock ownership plan.

"The board of directors and executive management of the company are pleased with the company's performance during our first full year as a publicly traded company," said Lawrence LeBon III, chairman, CEO and president. "Despite a troubled national economy and volatile equity and credit markets, we remain focused on prudent balance sheet management strategies designed to promote long-term shareholder value. Our balance sheet remains very well capitalized and will provide a solid platform to build upon during 2009."

In 2008, LABC's total assets increased by $56.5 million to $327.4 million compared with $270.9 million at Dec. 31, 2007. The bank's mortgage-backed securities portfolio increased by an aggregate of $64.6 million in 2008. Net loans receivable increased by $14.3 million. Loans secured by single-family residences increased by $5.1 million, and loans secured by commercial real estate increased by $8.4 million.

Total deposits grew during the year by $17 million. In management's opinion, that growth is the result of volatility in the worldwide financial markets driving deposits into "conservative, highly capitalized financial institutions like ours."