HIBERNIA HOMESTEAD BANCORP, INC. - FORM 10-Q

Attached files

file	filename
EX-31.2 - EXHIBIT 31.2 - HIBERNIA HOMESTEAD BANCORP, INC.	c17378exv31w2.htm
EX-31.1 - EXHIBIT 31.1 - HIBERNIA HOMESTEAD BANCORP, INC.	c17378exv31w1.htm
EX-32.1 - EXHIBIT 32.1 - HIBERNIA HOMESTEAD BANCORP, INC.	c17378exv32w1.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


þ		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2011


o		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 000-53555

Hibernia Homestead Bancorp, Inc.

(Exact Name of Registrant as Specified in Its Charter)


Louisiana		26-2833386

(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

325 Carondelet Street
New Orleans, Louisiana		70130

(Address of Principal Executive Offices)		(Zip Code)

(504) 522-3203

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. þ Yes o No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Date File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). o Yes o No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check One):


Large accelerated filer o	Accelerated filer o	Non-accelerated filer o	Smaller reporting company þ
		(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). o Yes þ No

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: As of May 10, 2011, 1,032,667 shares of the Registrant’s common stock were issued and outstanding.

Hibernia Homestead Bancorp, Inc.
Form 10-Q

Table of Contents


	Page
PART I — FINANCIAL INFORMATION

Item 1 — Financial Statements (Unaudited)		1

Item 2 — Management’s Discussion and Analysis of Financial Condition and Results of Operations		29

Item 3 — Quantitative and Qualitative Disclosures About Market Risk		36

Item 4 — Controls and Procedures		36

PART II — OTHER INFORMATION

Item 1 — Legal Proceedings		37

Item 1A — Risk Factors		37

Item 2 — Unregistered Sales of Equity Securities and Use of Proceeds		37

Item 3 — Defaults Upon Senior Securities		38

Item 4 — (Removed and Reserved)		38

Item 5 — Other Information		38

Item 6 — Exhibits		38

Signatures		39

Exhibit 31.1
Exhibit 31.2
Exhibit 32.1

Hibernia Homestead Bancorp, Inc.
Consolidated Balance Sheets


	At March 31,			At December 31,
	2011			2010
	(Unaudited)
	(In Thousands)
Assets
Cash, Non-Interest Bearing	$	1,201		$	481
Cash, Interest Bearing		3,284			4,112

Total Cash and Cash Equivalents		4,485			4,593


Certificates of Deposit		100			100
Securities Available for Sale		3,183			4,230
Loans Receivable, Net		62,764			61,953
Accrued Interest Receivable		236			227
Investment in FHLB of Dallas Stock		171			171
Investment in FNBB Stock		210			210
Premises and Equipment, Net		5,087			4,988
Deferred Income Taxes		516			528
Prepaid Expenses and Other Assets		288			253


Total Assets	$	77,040		$	77,253


Liabilities and Equity

Liabilities
Deposits	$	54,477		$	54,607
Advance Payments by Borrowers for Taxes and Insurance		307			477
Accrued Interest Payable		8			3
Accounts Payable and Other Liabilities		276			213


Total Liabilities		55,068			55,300


Equity
Preferred Stock, $.01 par value — 1,000,000 Shares Authorized; None Issued		—			—
Common Stock, $.01 par value — 9,000,000 Shares Authorized; 1,113,334 Issued; 1,032,667 Shares Outstanding at March 31, 2011 and December 31, 2010		11			11
Additional Paid-In Capital		10,472			10,466
Treasury Stock at cost — 80,667 shares at March 31, 2011 and December 31, 2010		(1,152	)		(1,152	)
Unallocated Common Stock held by:
Employee Stock Ownership Plan (ESOP)		(810	)		(819	)
Recognition and Retention Plan (RRP)		(293	)		(293	)
Accumulated Other Comprehensive Income, Net of Tax Effect		65			80
Retained Earnings		13,679			13,660


Total Equity		21,972			21,953


Total Liabilities and Equity	$	77,040		$	77,253

See notes to consolidated financial statements.

Hibernia Homestead Bancorp, Inc.
Consolidated Statements of Operations (Unaudited)


	Three Months Ended March 31,
	2011		2010
	(In Thousands, Except Per Share Data)
Interest Income
Loans Receivable
Mortgage Loans	$	619	$	533
Commercial Loans		232		129
Consumer and Other Loans		3		2
Federal Funds Sold		—		2
Mortgage-Backed Securities		35		64
Investment Securities		2		4
Other Investments and Deposits		2		1

Total Interest Income		893		735


Interest Expense
Deposits		169		141

Total Interest Expense		169		141


Net Interest Income		724		594

Provision for Loan Losses		15		—


Net Interest Income After
Provision for Loan Losses		709		594


Non-Interest Income
Other Income		14		7
Rental Income, Net of Related Expenses		27		31

Total Non-Interest Income		41		38


Non-Interest Expenses
Salaries and Employee Benefits		336		289
Occupancy Expenses		103		92
Data Processing		65		71
Advertising and Promotional Expenses		15		26
Professional Fees		60		63
Insurance Expense		8		13
Supplies and Stationery		12		10
Telephone and Postage		18		15
Supervision, Exams and Assessments		25		20
Directors’ Fees		13		13
Franchise and Shares Taxes		17		3
Other Operating Expenses		40		38

Total Non-Interest Expenses		712		653


Income (Loss) Before Income Taxes		38		(21	)

Income Tax Expense (Benefit)		19		(8	)


Net Income (Loss)	$	19	$	(13	)


Income (Loss) Per Common Share
Basic	$	0.02	$	(0.01	)
Diluted	$	0.02	$	(0.01	)

See notes to consolidated financial statements.

Hibernia Homestead Bancorp, Inc.
Consolidated Statements of Changes in Equity (Unaudited)
Three Months Ended March 31, 2011 and 2010


															Accumulated
			Additional						Common			Common			Other
	Common		Paid-In			Treasury			Stock Held			Stock Held			Comprehensive			Retained
	Stock		Capital			Stock			by ESOP			by RRP			Income (Loss)			Earnings			Total
	(In Thousands)

BALANCE — January 1, 2010	$	11	$	10,365		$	—		$	(855	)	$	—		$	133		$	13,742		$	23,396

Net Loss		—		—			—			—			—			—			(13	)		(13	)

Other Comprehensive Loss, net of Applicable Taxes		—		—			—			—			—			(12	)		—			(12	)

Shares Purchased for RRP		—		—			—			—			(92	)		—			—			(92	)

Purchase of Treasury Stock		—		—			(700	)		—			—			—			—			(700	)

ESOP Stock Released for Allocation		—		4			—			8			—			—			—			12

Stock-Based Compensation Cost		—		—			—			1			—			—			—			1


BALANCE — March 31, 2010	$	11	$	10,369		$	(700	)	$	(846	)	$	(92	)	$	121		$	13,729		$	22,592


BALANCE — January 1, 2011	$	11	$	10,466		$	(1,152	)	$	(819	)	$	(293	)	$	80		$	13,660		$	21,953

Net Income		—		—			—			—			—			—			19			19

Other Comprehensive Loss, net of Applicable Taxes		—		—			—			—			—			(15	)		—			(15	)

ESOP Stock Released for Allocation		—		5			—			9			—			—			—			14

RRP Stock Earned		—		(21	)		—			—			—			—			—			(21	)

Stock-Based Compensation Cost		—		22			—			—			—			—			—			22


BALANCE — March 31, 2011	$	11	$	10,472		$	(1,152	)	$	(810	)	$	(293	)	$	65		$	13,679		$	21,972

See notes to consolidated financial statements.

Hibernia Homestead Bancorp, Inc.
Consolidated Statements of Cash Flows (Unaudited)


	Three Months Ended March 31,
	2011			2010
	(In Thousands)
Cash Flows from Operating Activities
Net Income (Loss)	$	19		$	(13	)
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities
Provision for Loan Losses		15			—
Deferred Income Taxes		19			(9	)
Depreciation and Amortization		69			72
Net Discount Accretion		(1	)		(7	)
Non-Cash Compensation		36			13
(Increase) Decrease in:
Accrued Interest Receivable		(9	)		(8	)
Prepaid Expenses and Other Assets		(35	)		(26	)
Increase (Decrease) in:
Accrued Interest Payable		5			—
Accounts Payable and Other Liabilities		42			25

Net Cash Provided by Operating Activities		160			47

Cash Flows from Investing Activities
Net Increase in Loans Receivable		(826	)		(3,409	)
Maturities, Redemptions and Sales of Certificates of Deposit		—			475
Maturities, Redemptions and Sales of Securities Available for Sale		1,026			1,777
Purchase of Premises and Equipment		(168	)		(24	)

Net Cash Provided by (Used in) Investing Activities		32			(1,181	)

Cash Flows from Financing Activities
Net (Decrease) Increase in Deposits		(130	)		66
Net Decrease in Advance Payments by Borrowers for Taxes and Insurance		(170	)		(126	)
Purchase of Stock for RRP		—			(92	)
Purchase of Treasury Stock		—			(700	)

Net Cash Used in Financing Activities		(300	)		(852	)


Net Decrease in Cash and Cash Equivalents		(108	)		(1,986	)

Cash and Cash Equivalents — Beginning of Period		4,593			6,233


Cash and Cash Equivalents — End of Period	$	4,485		$	4,247


Supplementary Schedule of Cash Flow Information
Cash Paid for Interest on Deposits	$	164		$	141

Cash Paid for Income Taxes	$	—		$	—

Market Value Adjustment for Loss on Securities Available for Sale	$	(22	)	$	(17	)

See notes to consolidated financial statements.

Hibernia Homestead Bancorp, Inc.
Notes to Consolidated Financial Statements

Note 1. Nature of Operations and Summary of Significant Accounting Policies

Nature of Operations

On January 27, 2009, Hibernia Homestead Bank (the “Bank”) completed its conversion from a mutual to a stock form of organization as a subsidiary of Hibernia Homestead Bancorp, Inc. (the “Holding Company” or the “Company”), and the Holding Company completed an initial public offering in which it issued 1,113,334 shares of its common stock for a total of $11,133,340 in gross offering proceeds.

Hibernia Homestead Bank is a Louisiana-chartered and FDIC-insured savings bank and provides a variety of financial services to individual and commercial customers through its three branches in New Orleans and Metairie, Louisiana. The Bank’s primary deposit products are checking accounts, money market accounts and interest-bearing savings and certificates of deposit. Its primary lending products are residential mortgage loans, commercial loans secured by real estate, and commercial and industrial loans. The Bank primarily provides services to customers in the New Orleans, Metairie and surrounding areas.

The Bank’s operations are subject to customary business risks associated with activities of a financial institution. Some of those risks include competition from other institutions and changes in economic conditions, interest rates and regulatory requirements.

The accompanying unaudited financial statements were prepared in accordance with the instructions to Form 10-Q, and, therefore, do not include all the information or footnotes necessary for complete financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”). However, all normal recurring adjustments that, in the opinion of management, are necessary for a fair presentation of the financial statements have been included. The results for the three month period ended March 31, 2011, are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2011, or any other period. These financial statements should be read in conjunction with the audited financial statements of the Company and the accompanying notes thereto for the year ended December 31, 2010, included in the Company’s Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 31, 2011 (File No. 000-53555).

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Hibernia Homestead Bank. All significant intercompany balances and transactions between the Company and its wholly owned subsidiary have been eliminated.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for losses on loans and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. In connection with the determination of the allowance for losses on loans and foreclosed real estate, management obtains independent appraisals for significant properties.

Hibernia Homestead Bancorp, Inc.
Notes to Consolidated Financial Statements (Continued)

Note 1. Nature of Operations and Summary of Significant Accounting Policies (Continued)

Use of Estimates (Continued)

A majority of the Company’s loan portfolio consists of single-family residential loans in the metropolitan New Orleans area. In recent periods, we began offering commercial real estate loans on both owner-occupied and non-owner occupied properties. It is our policy to lend in a first lien position on such properties. During the second quarter of 2010, the Company also began making commercial and industrial loans. Residential mortgage loans and commercial loans are expected to be repaid from the cash flows of the customers. Some of the activities that the economy of this region is dependent upon include the petrochemical industry, the port of New Orleans, healthcare and tourism. Significant declines in economic activities in these areas could affect the borrowers’ ability to repay loans and cause a decline in value of assets securing the loan portfolio.

While management uses available information to recognize losses on loans and foreclosed real estate, future additions to the allowances may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowances for losses on loans and foreclosed real estate. Such agencies may require the Company to recognize additions to the allowances based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the allowances for losses on loans and foreclosed real estate may change in the near term.

Cash Equivalents

Cash equivalents consist of cash on hand and in banks, and federal funds sold. For purposes of the consolidated statements of cash flows, the Company considers all highly liquid debt instruments with original maturities, when purchased, of less than three months to be cash equivalents.

Loans Receivable

Loans receivable are stated at unpaid principal balances, less the allowance for loan losses, and net of deferred loan origination fees, direct origination costs and discounts.

In July 2010, the Financial Accounting Standard Board (the FASB) issued Accounting Standards Update (ASU) No. 2010-20, “Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses”, which requires that the Company provide a greater level of disaggregated information about the credit quality of the Company’s loans and leases and the allowance for loan and lease losses (the Allowance). This ASU also requires the Company to disclose on a prospective basis, additional information related to credit quality indicators, non-accrual loans and leases and past due information. For public entities, the amendments pertaining to disclosures are effective for interim and annual reporting periods ending on or after December 15, 2010. As this ASU amends only the disclosure requirements for loans and leases and the allowance, the adoption had no impact on the Company’s consolidated statements of operations and condition. See Note 3 to the consolidated financial statements for the required disclosures.

Hibernia Homestead Bancorp, Inc.
Notes to Consolidated Financial Statements (Continued)

Note 1. Nature of Operations and Summary of Significant Accounting Policies (Continued)

Interest on Loans

Interest on mortgage and commercial loans is credited to income as earned. An allowance is established for interest accrued on loans contractually delinquent three months or more. Unearned discounts on mortgage and commercial loans are taken into income over the life of the loan using the interest method. Interest on savings account loans is credited to income as earned using the simple interest method.

Allowance for Loan Losses

The allowance for loan losses is maintained to provide for probable credit losses related to specifically identified loans and for losses inherent in the loan portfolio that have been incurred as of the consolidated balance sheet date. The allowance is comprised of specific allowances and a general allowance.

Specific allowances are assessed for each loan that is identified as impaired and for which a probable loss has been identified. The allowance related to impaired loans is based on discounted expected future cash flows (using the loan’s initial effective interest rate), the observable market value of the loan, or the estimated fair value of the collateral for certain collateral dependent loans. Factors contributing to the determination of specific allowances include the financial condition of the borrower, changes in the value of pledged collateral and general economic conditions. General allowances are established for each loan class. Loans that have been identified as impaired are excluded from the homogenous pools; the remaining loans are then collectively evaluated. The Company’s evaluations are based on historical charge-offs considering factors that include risk rating, concentrations and loan type. These allowances, which are judgmentally determined, generally serve to compensate for the uncertainty in estimating loan losses, particularly in times of changing economic conditions, and consider the possibility of improper risk rating and possible over or under allocation of specific allowances. It also considers the lagging impact of historical charge-off ratios in periods where future charge-offs are expected to increase or decrease significantly. In addition, the general allowances consider trends in delinquencies and non-accrual loans, concentrations, the volatility of risk ratings and the evolving portfolio mix in terms of collateral, relative loan size and the degree of seasoning within the various loan products.

Changes in underwriting standards, credit administration and collection policies, regulation and other factors which affect the credit quality and collectability of the loan portfolio also impact the general allowance levels. The allowance for loan losses is based on management’s estimate of probable credit losses inherent in the loan portfolio; actual credit losses may vary from the current estimate. The allowance for loan losses is reviewed periodically, taking into consideration the risk characteristics of the loan portfolio, past charge-off experience, general economic conditions and other factors that warrant current recognition. As adjustments to the allowance for loan losses become necessary, they are reflected as a provision for loan losses in current-period earnings. Actual loan charge-offs are deducted from and subsequent recoveries of previously charged-off loans are added to the allowance.

Hibernia Homestead Bancorp, Inc.
Notes to Consolidated Financial Statements (Continued)

Note 1. Nature of Operations and Summary of Significant Accounting Policies (Continued)

Impaired Loans

FASB ASC Topic 310 “Receivables” (which includes former Statement of Financial Accounting Standards (SFAS) No. 114, Accounting by Creditors for Impairment of a Loan and SFAS No. 118, Accounting by Creditors for Impairment of a Loan — Income Recognition and Disclosures), requires that impaired loans be measured based on the present value of expected future cash flows discounted at the loan’s original effective interest rate. As a practical expedient, impairment may be measured based on the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. When the measure of the impaired loan is less than the recorded investment in the loan, the impairment is recorded through a valuation allowance. This valuation allowance is recorded in the allowance for loan losses on the balance sheet.

Interest payments received on impaired loans are recorded as interest income unless collection of the remaining recorded investment is doubtful, at which time payments received are recorded as reductions of principal. Changes in the present value due to the passage of time are recorded as interest income, while changes in estimated cash flows are recorded in the provision for loan losses.

Loan Origination Fees and Related Costs

The Company has adopted the provisions of FASB ASC Topic 310 “Receivables” (which includes former SFAS No. 91, Accounting for Nonrefundable Fees and Costs Associated with Originating or Acquiring Loans and Indirect Costs of Leases). Accordingly, loan origination fees and certain direct loan origination costs are deferred, and the net fee or cost is recognized as an adjustment to interest income using the interest method over the contractual life of the loans, adjusted for any prepayments.

Securities

FASB ASC Topic 320 “Investments — Debt and Equity Securities” (which includes former SFAS No. 115, Accounting for Certain Investments in Debt and Equity Securities) requires the classification of securities into one of three categories: trading, available-for-sale or held-to-maturity.

Management determines the appropriate classification of debt securities at the time of purchase and re-evaluates this classification periodically. Trading account securities are held for resale in anticipation of short-term market movements. Debt securities are classified as held to maturity when the Company has the positive intent and ability to hold the securities to maturity. Securities not classified as held to maturity or trading are classified as available for sale.

Trading account securities are carried at market value. Gains and losses, both realized and unrealized, are reflected in earnings.

Held to maturity securities are stated at amortized cost. Available for sale securities are stated at fair value, with unrealized gains and losses, net of applicable deferred income taxes, reported in a separate component of other comprehensive income. The amortized cost of debt securities classified as held to maturity or available for sale is adjusted for amortization of premiums and accretion of discounts to maturity or, in the case of mortgage-backed securities, over the estimated life of the security. Amortization, accretion and accruing interest are included in interest income on securities. Realized gains and losses, and declines in value judged to be other than temporary, are included in net securities gains. The cost of securities sold is determined based on the specific identification method.

Hibernia Homestead Bancorp, Inc.
Notes to Consolidated Financial Statements (Continued)

Note 1. Nature of Operations and Summary of Significant Accounting Policies (Continued)

Impaired Securities

Securities available for sale or held to maturity in which, after acquisition, the Company believes it will not be able to collect all amounts due according to its contractual terms are considered to be other-than-temporarily impaired. In accordance with U.S. generally accepted accounting principles, securities considered to be other-than-temporarily impaired are written down to fair value, and any unrealized loss is charged to net income. The written down amount then becomes the security’s new cost basis.

Investment in FHLB of Dallas and FNBB Stock

The Company maintains investments in membership stocks of the Federal Home Loan Bank (FHLB) of Dallas and the First National Bankers Bank (FNBB). The carrying amounts of these investments are stated at cost. The Bank is required by law to have an investment in stock of the FHLB of Dallas. As of March 31, 2011 and December 31, 2010, the membership investment requirement was 0.06% of the member’s total assets, and the activity-based requirement was 4.1% of advances and applicable Mortgage Partnership Finance assets.

Foreclosed Real Estate

Real estate acquired through, or in lieu of, foreclosure is initially recorded at the lower of cost (principal balance of the former mortgage loan plus costs of obtaining title and possession) or fair value at the date of acquisition. Costs relating to development and improvement of property are capitalized, whereas costs relating to the holding of property are expensed.

Management periodically performs valuations, and an allowance for losses is established by a charge to operations if the carrying value of a property exceeds its estimated net realizable value.

Premises and Equipment

Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets. Estimated lives are 7 to 30 years for buildings and improvements and 3 to 10 years for furniture and equipment.

Hibernia Homestead Bancorp, Inc.
Notes to Consolidated Financial Statements (Continued)

Note 1. Nature of Operations and Summary of Significant Accounting Policies (Continued)

Income Taxes

The Company recognizes income taxes in accordance with FASB ASC Topic No. 740 “Income Taxes” (formerly SFAS No. 109, Accounting for Income Taxes). Topic 740 uses the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred income taxes are recognized for the tax consequences of “temporary differences” by applying enacted statutory tax rates applicable to future years to the difference between financial statement carrying amounts and the tax basis of existing assets and liabilities. Deferred taxes are also recognized for operating losses and tax credits that are available to offset future income taxes.

When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the consolidated financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any.

Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above would be reflected as a liability for unrecognized tax benefits in the consolidated balance sheets along with any associated interest or penalties that would be payable to the taxing authorities upon examination. Interest and/or penalties associated with unrecognized tax benefits, if any, would be classified as additional income taxes in the consolidated statements of operations.

While the Bank is exempt from Louisiana income tax, it is subject to the Louisiana Ad Valorem Tax, commonly referred to as the Louisiana Share Tax, which is based on stockholders’ equity and net income.

Earnings Per Share

Earnings per share represent income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance.

Hibernia Homestead Bancorp, Inc.
Notes to Consolidated Financial Statements (Continued)

Note 1. Nature of Operations and Summary of Significant Accounting Policies (Continued)

Comprehensive Income

The Company reports comprehensive income in accordance with FASB ASC Topic No. 220 “Comprehensive Income” (formerly SFAS No. 130, Reporting Comprehensive Income). Topic 220 establishes standards for reporting and presentation of comprehensive income and its components in a full set of financial statements. Comprehensive income consists of net income (loss) and net unrealized gains (losses) on securities and is presented in the consolidated statements of changes in equity and comprehensive income (loss). Topic 220 requires only additional disclosures in the financial statements; it does not affect the Company’s financial position or results of operations.


	Three Months Ended
	March 31,
	2011			2010
	(Unaudited)
	(In Thousands)

Net Income (Loss)	$	19		$	(13	)
Other Comprehensive Income (Loss), Net of Tax
Unrealized Loss on Securities Available for Sale		(15	)		(12	)

Total Other Comprehensive Loss		(15	)		(12	)

Total Comprehensive Income (Loss)	$	4		$	(25	)

Statements of Cash Flows

The statements of cash flows were prepared in accordance with the provisions of FASB ASC Topic No. 230 “Statement of Cash Flows” (formerly SFAS No. 104, Statement of Cash Flows — Net Reporting of Certain Cash Receipts and Cash Payments and Classification of Cash Flows from Hedging Transactions). This Topic permits certain financial institutions to report, in a statement of cash flows, net receipts and payments for deposits placed, time deposits accepted and repaid and loans made and collected. Additionally, in accordance with U.S. generally accepted accounting principles, interest credited directly to deposit accounts has been accounted for as operating cash payments.

Recent Accounting Pronouncements

In June 2009, the FASB changed the accounting guidance for the consolidation of variable interest entities. The current quantitative-based risks and rewards calculation for determining which enterprise is the primary beneficiary of the variable interest entity will be replaced with an approach focused on identifying which enterprise has the power to direct the activities of a variable interest entity and the obligation to absorb losses of the entity or the right to receive benefits from the entity. The new guidance became effective for the Company on January 1, 2010 with no impact on its consolidated financial statements.

In June 2009, the FASB changed the accounting guidance for transfers of financial assets. The new guidance increases the information that a reporting entity provides in its financial reports about a transfer of financial assets; the effects of a transfer on its statement of financial condition, financial performance and cash flows; and a continuing interest in transferred financial assets. In addition, the guidance amends various concepts associated with the accounting for transfers and servicing of financial assets and extinguishments of liabilities including removing the concept of qualified special purpose entities. This new guidance was adopted by the Company on January 1, 2010 with no impact on its consolidated financial statements.

Hibernia Homestead Bancorp, Inc.
Notes to Consolidated Financial Statements (Continued)

Note 1. Nature of Operations and Summary of Significant Accounting Policies (Continued)

Recent Accounting Pronouncements (Continued)

In January 2010, the FASB issued ASU 2010-06, “Fair Value Measurements and Disclosures” (Topic 820) that requires new disclosures related to fair value measurements and clarifies existing disclosure requirements about the level of disaggregation, inputs and valuation techniques. Specifically, reporting entities now must disclose separately the amounts of significant transfers in and out of Level 1 and Level 2 fair value measurements and describe the reasons for the transfers. In addition, in the reconciliation for Level 3 fair value measurements, a reporting entity needs to use judgment in determining the appropriate classes of assets and liabilities for disclosure of fair value measurement, considering the level of disaggregated information required by other applicable U.S. GAAP guidance and should also provide disclosures about the valuation techniques and inputs used to measure fair value for each class of assets and liabilities. The guidance was effective for financial statements issued for periods ending after December 15, 2009, except for disclosures about purchases, sales, issuances and settlements in reconciliation for Level 3 fair value measurements, which will be effective for fiscal years beginning after December 15, 2010. The adoption of this guidance affects only the disclosure requirements and had no impact on the Company’s consolidated statements of operations and condition.

In December 2010, the FASB issued authoritative guidance that modified Step 1 of the goodwill impairment test for reporting units with zero or negative carrying amounts. For those reporting units, an entity is required to perform Step 2 of the goodwill impairment test if it is more likely than not that a goodwill impairment exists. In determining whether it is more likely than not that a goodwill impairment exists, an entity should consider whether there are any adverse qualitative factors indicating that an impairment may exist such as if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. This new authoritative guidance became effective on January 1, 2011 and had no impact on the Company’s consolidated financial statements

In January 2011, the FASB issued authoritative guidance that deferred the effective date of disclosure requirements for public entities about troubled debt restructurings to be concurrent with the effective date of the guidance for determining what constitutes a troubled debt restructuring, which is concurrently being addressed by the FASB. The guidance is anticipated to be effective for interim and annual reporting periods ending after June 15, 2011.

In July 2010, the FASB issued ASU 2010-20, “Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses”, which amends ASC Topic 310 “Receivables”. The primary objective of ASU 2010-20 is to provide financial statement users with greater transparency about an entity’s allowance for loan and lease losses (the Allowance) and the credit quality of its financing receivables. For public entities, the amendments pertaining to disclosures are effective for interim and annual reporting periods ending on or after December 15, 2010. The Company adopted the provisions of this ASU in preparing the consolidated financial statements as of and for the year ended December 31, 2010. As this ASU amends only the disclosure requirements for loans and leases and the allowance, the adoption had no impact on the Company’s consolidated statements of operations and condition. See Note 3 to the consolidated financial statements for the required disclosures.

Hibernia Homestead Bancorp, Inc.
Notes to Consolidated Financial Statements (Continued)

Note 1. Nature of Operations and Summary of Significant Accounting Policies (Continued)

Advertising and Promotional Expenses

The Company follows the policy of charging the costs of advertising and promotions to expense as incurred. Advertising and promotional expenses of $15,000 and $26,000 for the three months ended March 31, 2011 and 2010, respectively, are included in non-interest expense.

Note 2. Investment Securities

A summary of investment securities classified as trading, held to maturity and available for sale is presented below.

Trading Securities

The Company had no securities classified as trading securities at March 31, 2011 and December 31, 2010.

Held to Maturity

There were no held to maturity securities at March 31, 2011 or December 31, 2010.

Hibernia Homestead Bancorp, Inc.
Notes to Consolidated Financial Statements (Continued)

Note 2. Investment Securities (Continued)

Available for Sale

The amortized cost and estimated fair values of available for sale securities at March 31, 2011 and December 31, 2010, are summarized as follows:


	March 31, 2011 (Unaudited)
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(In Thousands)
U.S. Government Agencies	$	—	$	—	$	—	$	—
Mortgage-Backed Securities		3,084		99		—		3,183


Available for Sale Securities	$	3,084	$	99	$	—	$	3,183


	December 31, 2010
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(In Thousands)
U.S. Government Agencies	$	500	$	2	$	—	$	502
Mortgage-Backed Securities		3,609		119		—		3,728


Available for Sale Securities	$	4,109	$	121	$	—	$	4,230

Hibernia Homestead Bancorp, Inc.
Notes to Consolidated Financial Statements (Continued)

Note 2. Investment Securities (Continued)

Available for Sale (Continued)

The amortized cost and estimated fair values of available for sale securities at March 31, 2011, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


	March 31, 2011 (Unaudited)
	Amortized		Fair
	Cost		Value
	(In Thousands)
Due in One Year or Less	$	1,141	$	1,157
Due After One Year Through Five Years		1,205		1,247
Due After Five Years Through Ten Years		594		625
Due After Ten Years Through Twenty Years		42		43
Due After Twenty Years		102		111

	$	3,084	$	3,183

Fair values for securities are determined from quoted prices or quoted market prices of similar securities of comparable risk and maturity where no quoted market price exists. Management does not anticipate a requirement to sell any of the Company’s investment securities for liquidity or other operating purposes.

The proceeds from the sales, redemptions and maturities of securities available for sale for the three months ended March 31, 2011 and 2010 were approximately $1.0 million and $1.8 million, respectively. There were no realized gains or losses in the three month periods ending March 31, 2011 and March 31, 2010.

Management evaluates securities for other-than-temporary impairment on a periodic and regular basis, as well as when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.

At March 31, 2011 and December 31, 2010, there were no unrealized losses in investment securities. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition. The Company has the ability to hold available for sale debt securities for the foreseeable future.

Hibernia Homestead Bancorp, Inc.
Notes to Consolidated Financial Statements (Continued)

Note 3. Loans Receivable

Loans receivable at March 31, 2011 and December 31, 2010 are summarized as follows:


	March 31, 2011			December 31, 2010
	(Unaudited)
	(In Thousands)

One-to-Four Family Residential	$	41,690		$	41,421
Multi-Family Residential		170			173
Second Mortgage Residential		171			174
Residential Construction and Land Loans		4,636			3,375
Commercial Loans Secured by Real Estate		13,736			14,317
Commercial and Industrial Loans		2,325			2,375
Home Equity Lines of Credit		366			426
Loans Secured by Deposits		24			24

		63,118			62,285


Deferred Loan Costs (Fees)		55			62
Less: Allowance for Loan Losses		(409	)		(394	)

Total	$	62,764		$	61,953

The following presents by portfolio segment, the activity in the allowance for the three months ended March 31, 2011 (unaudited). The following also presents by portfolio segment, the balance in the allowance disaggregated on the basis of the Company’s impairment measurement method and the related recorded investment in loans and leases as of March 31, 2011 (unaudited).


	Quarter Ended March 31, 2011
	Commercial		Commercial
	and Industrial		Real Estate			Consumer		Residential		Total
	(In Thousands)
Allowance for loan losses:
Beginning Balance	$	12	$	72		$	—	$	310	$	394
Charge-offs		—		—			—		—		—
Recoveries		—		—			—		—		—
Provisions		—		(3	)		—		18		15

Ending Balance	$	12	$	69		$	—	$	328	$	409

Ending balance: individually evaluated for impairment	$	—	$	—		$	—	$	72	$	72

Ending balance: collectively evaluated for impairment	$	12	$	69		$	—	$	256	$	337

Ending balance: loans acquired with deteriorated credit quality	$	—	$	—		$	—	$	—	$	—


Financing receivables:
Ending Balance	$	2,325	$	13,736		$	390	$	46,667	$	63,118

Ending balance: individually evaluated for impairment	$	—	$	—		$	—	$	1,033	$	1,033

Ending balance: collectively evaluated for impairment	$	2,325	$	13,736		$	390	$	45,634	$	62,085

Ending balance: loans acquired with deteriorated credit quality	$	—	$	—		$	—	$	—	$	—

Hibernia Homestead Bancorp, Inc.
Notes to Consolidated Financial Statements (Continued)

Note 3. Loans Receivable (Continued)

Credit Quality Indicators

The Company uses several credit quality indicators to manage credit risk in an ongoing manner. The Company’s primary credit quality indicators are to use an internal credit risk rating system that categorizes loans and leases into pass, special mention, or classified categories. Credit risk ratings are applied individually to those classes of loans and leases that have significant or unique credit characteristics that benefit from a case-by-case evaluation. Groups of loans and leases that are underwritten and structured using standardized criteria and characteristics, such as statistical models (e.g., credit scoring or payment performance), are typically risk rated and monitored collectively.

The following are the definitions of the Company’s credit quality indicators:

Pass — Level 1 — Loans that comply in all material respects with the Company’s loan policies, that are adequately secured with conforming collateral and that are extended to borrowers with documented cash flow and/or liquidity to safely cover their total debt service requirements.

Pass — Level 2 — Loan that may have one or more approved exceptions to loan policy including exceptions to collateral guidelines, loan-to-value parameters, debt service coverage ratios or other guidelines but that are extended to borrowers with strong histories and adequate cash flow and/or liquidity to cover total debt service requirements. These loans are deemed by management to pose only modest risk of deterioration or default.

Pass — Level 3 — Loans that may have one or more approved exceptions to loan policy and that exhibit weakness in collateral value, debt service capacity or other factors that, in the judgment of management, increase the likelihood of the loan deteriorating in the event of unfavorable changes in market conditions or the borrower’s circumstances.

Special Mention — Special Mention includes loans with a recent history of repeat delinquencies, indications of possible deterioration in credit strength, decline in collateral value or lack of current information. Also included in this rating are loans that have not exhibited frequent delinquency but which are of concern due to suspected deterioration in the borrower’s status, decline in collateral value, weakness in the borrower’s industry or other indications of risk that have come to management’s attention.

Substandard — The substandard classification includes loans that are inadequately protected by current equity and paying capacity of the obligor or of the collateral pledged. Such loans have one or more weaknesses that jeopardize the liquidation of the debt and expose the Company to loss if the weaknesses are not corrected. Weaknesses may include inadequate cash flow, unmarketable collateral or other factors which could cause the borrower to default.

Doubtful — Loans that have all the weaknesses inherent in substandard loans and those weaknesses are so serious as to make full repayment of the loan, based on currently known facts, improbable. These loans expose the Company to serious risk, but the extent of the loss cannot be determined because of pending factors that could strengthen the credit in the near term.

The Company’s credit quality indicators are periodically updated on a case-by-case basis.

Hibernia Homestead Bancorp, Inc.
Notes to Consolidated Financial Statements (Continued)

Note 3. Loans Receivable (Continued)

Credit Quality Indicators (Continued)

The following presents by class and by credit quality indicator, the recorded investment in the Company’s loans and leases as of March 31, 2011 (unaudited) and December 31, 2010.


					Commercial Real Estate				Commercial Real Estate
	Commercial and Industrial				Construction				Other
	March 31, 2011		December 31, 2010		March 31, 2011		December 31, 2010		March 31, 2011		December 31, 2010
	(In Thousands)
Pass — Level 1	$	2,325	$	2,375	$	1,224	$	1,229	$	12,141	$	12,709
Pass — Level 2		—		—		—		—		371		379
Pass — Level 3		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—
Substandard		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—

Total	$	2,325	$	2,375	$	1,224	$	1,229	$	12,512	$	13,088

Residential Credit Exposure
Credit Risk Profile by Internally Assigned Credit Quality Indicator


	Residential - Prime
	March 31, 2011		December 31, 2010
	(In Thousands)
Grade:
Pass — Level 1	$	38,582	$	37,129
Pass — Level 2		5,616		5,536
Pass — Level 3		174		175
Special Mention		1,106		660
Substandard		1,189		1,643
Doubtful		—		—

Total	$	46,667	$	45,143

Consumer Credit Exposure
Credit Risk Profile Based on Payment Activity


	Consumer - Other
	March 31, 2011		December 31, 2010
	(In Thousands)
Performing	$	390	$	450
Nonperforming		—		—

Total	$	390	$	450

Hibernia Homestead Bancorp, Inc.
Notes to Consolidated Financial Statements (Continued)

Note 3. Loans Receivable (Continued)

Impaired Loans

The following presents by class, information related to impaired loans as of and for the period ended March 31, 2011 (unaudited):


	Quarter Ended March 31, 2011
							Average		Interest
	Recorded		Unpaid Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
	(In Thousands)
With no related allowance recorded:
Commercial	$	—	$	—	$	—	$	—	$	—
Commercial real estate		—		—		—		—		—
Residential — prime		174		176		—		175		1
With an allowance recorded:
Commercial		—		—		—		—		—
Commercial real estate		—		—		—		—		—
Residential — prime		859		870		72		865		—
Total:
Commercial	$	—	$	—	$	—	$	—	$	—
Consumer	$	—	$	—	$	—	$	—	$	—
Residential — prime	$	1,033	$	1,046	$	72	$	1,040	$	1

The Company is not committed to lend additional funds to debtors whose loans have been modified.

Hibernia Homestead Bancorp, Inc.
Notes to Consolidated Financial Statements (Continued)

Note 3. Loans Receivable (Continued)

Non-Accrual Loans

The following presents by class, the recorded investment in loans on non-accrual status as of March 31, 2011 (unaudited) and December 31, 2010:

Loans on Nonaccrual Status


	March 31, 2011		December 31, 2010
	(In Thousands)
Commercial and Industrial	$	—	$	—
Commercial Real Estate		—		—
Consumer		—		—
Residential — prime		981	$	1,138

	$	981	$	1,138

Hibernia Homestead Bancorp, Inc.
Notes to Consolidated Financial Statements (Continued)

Note 3. Loans Receivable (Continued)

Aging Analysis of Past Due Loans

The following presents by class, an aging analysis and the recorded investment in loans as of March 31, 2011 and December 31, 2010 (in thousands):

March 31, 2011


													Recorded
													Investment
													> 90 Days
	30-59 Days Past		60-89 Days Past		Greater than 90		Total Past				Total Financing		and
	Due		Due		Days		Due		Current		Receivables		Accruing
	(Unaudited)
Commercial and Industrial	$	—	$	—	$	—	$	—	$	2,325	$	2,325	$	—
Commercial real estate:
Commercial real estate — construction		—		—		—		—		1,224		1,224		—
Commercial real estate — other		—		—		—		—		12,512		12,512		—
Consumer:
Consumer — other		—		—		—		—		390		390		—
Residential:
Residential — prime		289		—		766		1,055		45,612		46,667		—

Total	$	289	$	—	$	766	$	1,055	$	62,063	$	63,118	$	—

December 31, 2010


													Recorded
													Investment
													> 90 Days
	30-59 Days Past		60-89 Days Past		Greater than 90		Total Past				Total Financing		and
	Due		Due		Days		Due		Current		Receivables		Accruing

Commercial and Industrial	$	—	$	—	$	—	$	—	$	2,375	$	2,375	$	—
Commercial real estate:
Commercial real estate — construction		—		—		—		—		1,229		1,229		—
Commercial real estate — other		—		—		—		—		13,088		13,088		—
Consumer:
Consumer — other		—		—		—		—		450		450		—
Residential:
Residential — prime		625		70		888		1,583		43,560		45,143		—

Total	$	625	$	70	$	888	$	1,583	$	60,702	$	62,285	$	—

Hibernia Homestead Bancorp, Inc.
Notes to Consolidated Financial Statements (Continued)

Note 4. Earnings Per Share

The computation of basic earnings per share (“EPS”) is based on the weighted-average number of shares of common stock outstanding. The computation of diluted earnings per share is based on the weighted average number of shares of common stock outstanding plus the shares resulting from the assumed exercise of all outstanding share-based awards using the treasury stock method.

Earnings per common share was computed based on the following:


*(in thousands, except per share data)*	March 31, 2011		March 31, 2010
	(Unaudited)
Numerator:
Income (loss) applicable to common shares	$	19	$	(13	)

Denominator:
Weighted average common shares outstanding		931		1,016
Effect of dilutive securities		19		—


Weighted average common shares outstanding—assuming dilution		950		1,016

Earnings (loss) per common share	$	0.02	$	(0.01	)


Earnings (loss) per common share—assuming dilution	$	0.02	$	(0.01	)

Due to the net loss attributable to common shareholders for the three months ended March 31, 2010, no potentially dilutive shares were included in the loss per share calculation, as including such shares would have been anti-dilutive. Anti-dilutive stock options of 36,000 with a weighted average exercise price of $14.00 per share for the period ended March 31, 2010 were excluded from diluted shares. Share-based awards did not have an anti-dilutive effect on diluted earnings per share for the period ended March 31, 2011.

Note 5. Regulatory Matters

The Bank is subject to various regulatory capital requirements administered by its primary federal regulator, the Federal Deposit Insurance Corporation. Failure to meet the minimum regulatory capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators, which if undertaken, could have a direct material effect on the Bank and the consolidated financial statements.

Under the regulatory capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines involving quantitative measures of the Bank’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification under the prompt corrective action guidelines are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Hibernia Homestead Bancorp, Inc.
Notes to Consolidated Financial Statements (Continued)

Note 5. Regulatory Matters (Continued)

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios of: Total and Tier I capital to risk-weighted assets (as defined in the regulations) and of Tier I capital to average assets (as defined). Management believes, as of March 31, 2011, that the Bank meets all capital adequacy requirements to which they are subject. The Bank was considered well capitalized according to its last regulatory examination.

The Bank, at March 31, 2011 and December 31, 2010, exceeds all of the capital adequacy requirements to which it is subject as illustrated by the following:


	Actual					Required
	Amount		Ratio			Amount		Ratio
	(Unaudited)
	(Dollars in Thousands)
March 31, 2011
Tier 1 Capital (to Average Assets)	$	18,570		24.51	%	$	3,031		4.00	%
Tier 1 Capital (to Risk-Weighted Assets)	$	18,570		36.25	%	$	2,049		4.00	%
Total Capital (to Risk-Weighted Assets)	$	18,979		37.05	%	$	4,098		8.00	%


	Actual					Required
	Amount		Ratio			Amount		Ratio
	(Dollars in Thousands)
December 31, 2010
Tier 1 Capital (to Average Assets)	$	18,518		25.61	%	$	2,892		4.00	%
Tier 1 Capital (to Risk-Weighted Assets)	$	18,518		35.97	%	$	2,059		4.00	%
Total Capital (to Risk-Weighted Assets)	$	18,912		36.73	%	$	4,119		8.00	%

Note 6. Disclosure About Fair Value of Financial Instruments

The following disclosure is made in accordance with the requirements of ASC 825, “Financial Instruments”. Financial instruments are defined as cash and contractual rights and obligations that require settlement, directly or indirectly, in cash. Fair values are based on quoted market prices for similar instruments or estimated using discounted cash flow analysis. The discount rates used are estimated using comparable risk-free market rates for similar types of instruments adjusted to be commensurate with the credit risk, overhead costs, and optionality of such instruments. The results of these techniques are highly sensitive to the assumptions used, such as those concerning appropriate discount rates and estimates of future cash flows, which require considerable judgment. Accordingly, estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current settlement of the underlying financial instruments.

ASC 825 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. These disclosures should not be interpreted as representing an aggregate measure of the underlying value of the Company.

Hibernia Homestead Bancorp, Inc.
Notes to Consolidated Financial Statements (Continued)

Note 6. Disclosure About Fair Value of Financial Instruments (Continued)

The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate the value:

Cash and Short -Term Investments

For cash and short-term investments with other institutions, the carrying amount approximates fair value.

Certificates of Deposit

For short-term certificates of deposit with other institutions, the carrying amount approximates cash value.

Investment Securities

For securities and marketable equity securities held for investment purposes, fair values are based on quoted market prices.

Loans

The fair value of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturity. The allowance for loan losses is allocated to each individual loan account prior to the calculation of the fair value of loans.

Deposits and Advance Payments by Borrowers for Taxes and Insurance

The fair value of demand deposits, savings deposits, certain money market deposits and advance payments by borrowers for taxes and insurance is the amount payable on demand. The value of fixed maturity certificates of deposit is estimated by discounting the future cash flows using interest rates currently offered for deposits of similar remaining maturities.

Commitments to Extend Credit

The fair value of commitments is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present credit-worthiness of the counterparties.

Hibernia Homestead Bancorp, Inc.
Notes to Consolidated Financial Statements (Continued)

Note 6. Disclosure About Fair Value of Financial Instruments (Continued)

The estimated fair values of the Bank’s financial instruments at March 31, 2011 and December 31, 2010, are as follows (reported in thousands):


	March 31, 2011
	(Unaudited)
	Carrying			Fair
	Amount			Value
Financial Assets
Cash and Short-Term Investments	$	4,485		$	4,485
Investment Securities		3,183			3,183
Certificates of Deposit		100			100
Loans		63,173			60,932
Less: Allowance for Loan Losses		(409	)

	$	70,532		$	68,700

Financial Liabilities
Deposits and Advance Payments by Borrowers for Taxes and Insurance	$	54,784		$	54,091


Unrecognized Financial Instruments
Commitments to Extend Credit	$	11,433		$	11,433


	December 31, 2010
	Carrying			Fair
	Amount			Value
Financial Assets
Cash and Short-Term Investments	$	4,593		$	4,593
Investment Securities		4,230			4,230
Certificates of Deposit		100			100
Loans		62,347			60,778
Less: Allowance for Loan Losses		(394	)

	$	70,876		$	69,701

Financial Liabilities
Deposits and Advance Payments by Borrowers for Taxes and Insurance	$	55,084		$	54,404


Unrecognized Financial Instruments
Commitments to Extend Credit	$	6,562		$	6,562

Hibernia Homestead Bancorp, Inc.
Notes to Consolidated Financial Statements (Continued)

Note 7. Fair Value of Financial Instruments

The Company adopted the FASB’s fair value guidance on January 1, 2008 for all financial assets and liabilities and nonfinancial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). The fair value guidance defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.

The fair value guidance defines fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity. In addition, the fair value of liabilities should include consideration of non-performance risk including our own credit risk.

In addition to defining fair value, the fair value guidance expands the disclosure requirements around fair value and establishes a fair value hierarchy for valuation inputs. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of the three levels which are determined by the lowest level input that is significant to the fair value measurement in its entirety. These levels are:

•

Level 1 — Inputs are based upon unadjusted quoted prices for identical instruments traded in active markets.

•

Level 2 — Inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

•

Level 3 — Inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques.

The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis at March 31, 2011 (unaudited) and December 31, 2010:


	March 31, 2011
	Total		Level 1		Level 2		Level 3
	(In Thousands)
Assets
Investment Securities	$	3,183	$	—	$	3,183	$	—

Total	$	3,183	$	—	$	3,183	$	—


Liabilities	$	—	$	—	$	—	$	—

Total	$	—	$	—	$	—	$	—

Hibernia Homestead Bancorp, Inc.
Notes to Consolidated Financial Statements (Continued)

Note 7. Fair Value of Financial Instruments (Continued)


	December 31, 2010
	Total		Level 1		Level 2		Level 3
	(In Thousands)
Assets
Investment Securities	$	4,230	$	—	$	4,230	$	—

Total	$	4,230	$	—	$	4,230	$	—


Liabilities	$	—	$	—	$	—	$	—

Total	$	—	$	—	$	—	$	—

Note 8. Employee Stock Ownership Plan

During fiscal 2008, the Company instituted an employee stock ownership plan. The Hibernia Homestead Bancorp, Inc. Employee Stock Ownership Plan (“ESOP”) enables all eligible employees of the Bank to share in the growth of the Company through the acquisition of stock. Employees are generally eligible to participate in the ESOP after completion of one year of service and attaining the age of 21.

The ESOP purchased the statutory limit of eight percent of the shares sold in the initial public offering of the Company on January 17, 2009. This purchase was facilitated by a loan from the Company to the ESOP in the amount of $891,000. The loan is secured by a pledge of the ESOP shares. The shares pledged as collateral are reported as unearned ESOP shares in the consolidated balance sheets. The corresponding note is being repaid in 100 quarterly debt service payments of $13,000 on the last business day of each quarter, beginning March 31, 2009, at the rate of 3.25%.

The Company, at its discretion, may contribute to the ESOP, in the form of debt service. Cash dividends on the Company’s stock shall be used to either repay the loan, be distributed to the participants in the ESOP, or retained in the ESOP and reinvested in Company stock. Shares are released for allocation to ESOP participants based on principal and interest payments of the note. Compensation expense is recognized based on the number of shares allocated to ESOP participants each year and the average market price of the stock for the current year.

ESOP compensation expense for the three months ended March 31, 2011 and March 31, 2010 was $14,000 and $12,000, respectively.

Hibernia Homestead Bancorp, Inc.
Notes to Consolidated Financial Statements (Continued)

Note 9. Recognition and Retention Plan

On July 30, 2009, the shareholders of the Company approved the Company’s 2009 Recognition and Retention Plan (“RRP”). The 2009 Recognition and Retention Plan will provide the Company’s directors and key employees with an equity interest in the Company as compensation for their contributions to the success of the Company, and as an incentive for future such contributions. The Board of Directors of the Company may make grants under the 2009 Recognition and Retention Plan to eligible participants based on these factors. Plan participants will vest in their share awards at a rate no more rapid than 20% per year over a five year period, beginning on the date of the plan share award. If service to the Company is terminated for any reason other than death, disability or change in control, the unvested share awards shall be forfeited. As of March 31, 2011, 11,133 shares have been awarded under the Plan. During the quarter ended March 31, 2011, no shares vested and were released. Compensation expense is being recognized over the vesting period. RRP compensation expense for the three months ended March 31, 2011 amounted to $9,000. For the three months ended March 31, 2010 the Company recognized no compensation expense related to the Recognition and Retention Plan.

The Recognition and Retention Plan Trust (the “Trust”) has been established to acquire, hold, administer, invest, and make distributions from the Trust in accordance with provisions of the Plan and Trust. The Trust will acquire 4%, or 44,533 shares, of the shares sold in the Company’s initial public offering, which are held in the Trust subject to the Plan’s vesting requirements. The Recognition and Retention Plan provides that grants to each employee and non-employee director shall not exceed 25% and 5% of the shares available under the Plan, respectively. Shares awarded to non-employee directors in the aggregate shall not exceed 30% of the shares available under the Plan.

Note 10. Stock Option Plan

On July 30, 2009, the shareholders of the Company approved the Company’s 2009 Stock Option Plan. The 2009 Stock Option Plan will provide the Company’s directors and key employees with a proprietary interest in the Company as compensation for their contributions to the success of the Company, and as an incentive for future such contributions. The Board of Directors of the Company may grant options to eligible employees and non-employee directors based on these factors. Plan participants will vest in their options at a rate no more rapid than 20% per year over a five year period, beginning on the grant date of the option. Vested options will have an exercise period of ten years commencing on the date of grant. If service to the Company is terminated for any reason other than death, disability or change in control, the unvested options shall be forfeited. The Company recognizes compensation expense during the vesting period based on the fair value of the option on the date of grant. As of March 31, 2011, 63,833 options have been granted to eligible employees. For the three months ended March 31, 2011 and March 31, 2010, the Company recognized $22,000 and $1,000, respectively, of compensation expense related to stock options granted.

Hibernia Homestead Bancorp, Inc.
Notes to Consolidated Financial Statements (Continued)

Note 10. Stock Option Plan (Continued)

Following is a summary of the status of the Option Plan during the three months ended March 31, 2011 (unaudited):


	Number of		Weighted-average
	Shares		Exercise Price

Outstanding at January 1, 2011		63,833	$	14.65
Granted		—		—
Exercised		—		—
Forfeited		—		—

Outstanding at March 31, 2011		63,833	$	14.65


Options Exercisable at March 31, 2011		7,200	$	14.00

Note 11. Subsequent Events

In accordance with the subsequent events topic of the FASB ASC, Topic No. 855, “Subsequent Events”, management has evaluated subsequent events through the date that the financial statements were issued and determined that no events occurred that require disclosure. No subsequent events occurring after this date have been evaluated for inclusion in these financial statements.


Item 2 —		Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Forward-Looking Statements

This Quarterly Report on Form 10-Q contains certain forward-looking statements and information relating to Hibernia Homestead Bancorp, Inc. (the “Company” or “Hibernia”) and Hibernia Homestead Bank (the “Bank”) that are based on the beliefs of management as well as assumptions made by and information currently available to management. In addition, in portions of this document the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “should” and similar expressions, or the negative thereof, as they relate to the Company or the Bank or their management, are intended to identify forward-looking statements. Such statements reflect the current views of the Company and/or the Bank with respect to forward-looking events and are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected or intended. The Company does not intend to update these forward-looking statements.

General

The Company was formed by the Bank in June 2008, in connection with the Bank’s conversion to a Louisiana chartered stock form savings bank (the “Conversion”) completed on January 27, 2009. The Company’s results of operations are primarily dependent on the results of the Bank, which became a wholly owned subsidiary upon completion of the Conversion. The Bank’s results of operations depend, to a large extent, on net interest income, which is the difference between the income earned on its loan and investment portfolios and the cost of funds, consisting of the interest paid on deposits and borrowings. Results of operations are also affected by provisions for loan losses, fee income and other non-interest income and non-interest expense. Non-interest expense principally consists of compensation and employee benefits, office occupancy and equipment expense, data processing, advertising and business promotion and other operating expenses. The Bank’s results of operations are also significantly affected by general economic and competitive conditions, particularly changes in interest rates, government policies and actions of regulatory authorities. Future changes in applicable law, regulations or government policies may materially impact our financial condition and results of operations.

Critical Accounting Policies

In reviewing and understanding financial information for Hibernia Homestead Bancorp, Inc., you are encouraged to read and understand the significant accounting policies used in preparing our financial statements. These policies are described in Note 1 of the notes to our consolidated financial statements. The accounting and financial reporting policies of Hibernia Homestead Bancorp, Inc. conform to U.S. generally accepted accounting principles and to general practices within the banking industry. Accordingly, the consolidated financial statements require certain estimates, judgments, and assumptions, which are believed to be reasonable, based upon the information available. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the periods presented. The following accounting policies comprise those that management believes are the most critical to aid in fully understanding and evaluating our reported financial results. These policies require numerous estimates or economic assumptions that may prove inaccurate or may be subject to variations which may significantly affect our reported results and financial condition for the period or in future periods.

Allowance for Loan Losses. The allowance for loan losses is maintained to provide for probable credit losses related to specifically identified loans and for losses inherent in the loan portfolio that have been incurred as of the consolidated balance sheet date. The allowance is comprised of specific allowances and a general allowance.

Income Taxes. Deferred income tax assets and liabilities are determined using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various assets and liabilities and gives current recognition to changes in tax rates and laws. Realizing our deferred tax assets principally depends upon our achieving projected future taxable income. We may change our judgments regarding future profitability due to future market conditions and other factors. We may adjust our deferred tax asset balances if our judgments change.

Comparison of Financial Condition at March 31, 2011 and December 31, 2010

Hibernia Homestead Bancorp’s consolidated total assets decreased $213,000, or 0.3%, to $77.0 million at March 31, 2011 compared to $77.3 million at December 31, 2010. The decrease was primarily the result of a decrease of $1.0 million in investment securities available for sale which was partially offset by an increase in net loans receivable of $811,000 during the three months ended March 31, 2011. The additional loan volume was primarily funded by a decrease of $1.0 million in investment securities available for sale. Our gross loans receivable increased by $833,000, or 1.3%, to $63.1 million at March 31, 2011, compared to $62.3 million at December 31, 2010 reflecting a $1.3 million increase in residential construction loans, and a $269,000 increase in one-to-four family residential mortgage loans. These increases were partially offset by decreases of $581000 in commercial loans secured by real estate and $60,000 in home equity lines of credit. During the first three months of 2011 our total loan originations amounted to approximately $3.7 million and loan principal repayments were approximately $2.9 million. Our total investment securities amounted to $3.2 million at March 31, 2011, compared to $4.2 million at December 31, 2010, a decrease of $1.0 million, or 24.8%. The decrease in investment securities was due to maturities and redemptions of securities available for sale received during the period.

Hibernia’s deposits decreased $130,000, or 0.2%, to $54.5 million at March 31, 2011, compared to $54.6 million at December 31, 2010. The decrease reflects a $670,000 increase in money market accounts offset by decreases in interest-bearing checking accounts and certificates of deposit. The Bank had no Federal Home Loan Bank advances at March 31, 2011, or December 31, 2010, as we continued our strategy in recent periods of managing interest rate risk by not utilizing higher cost borrowings. Our stockholders’ equity remained unchanged at $22.0 million as of March 31, 2011 and December 31, 2010.

Comparison of Operating Results for the Three Months Ended March 31, 2011 and 2010.

For the three months ended March 31, 2011, Hibernia Homestead Bancorp had net income of $19,000 compared to a net loss of $13,000 for the three months ended March 31, 2010. Our results for the quarterly period reflect an increase in our net interest margin for the quarter ended March 31, 2011 compared to the 2010 quarter. Our net interest margin increased by 9 basis points to 4.22% for the three months ended March 31, 2011 compared to 4.13% for the three months ended March 31, 2010 while our average interest rate spread improved to 3.78% for the three months ended March 31, 2011, compared to 3.64% for the three months ended March 31, 2010. During the three months ended March 31, 2011, the average rate paid on certificates of deposit decreased 22 basis points from 1.90% for the three months ended March 31, 2010, to 1.68% for the three months ended March 31, 2011.

Interest Income. Hibernia’s total interest income was $893,000 for the three months ended March 31, 2011, compared to $735,000 for the three months ended March 31, 2010, an increase of $158,000 or 21.5%. The increase in interest income in the three months ended March 31, 2011, compared to the three months ended March 31, 2010, was due primarily to an increase in the average balance of loans and a decrease in lower yielding investment securities as a percentage of earning assets. The average yield on our interest-earning assets was 5.14% for the three months ended March 31, 2011, compared to 5.04% for the comparable period in 2010. Average interest-earning assets were $69.6 million for the three months ended March 31, 2011, compared to $58.3 million for the comparable period in 2010.

Interest Expense. Hibernia’s total interest expense was $169,000 for the three months ended March 31, 2011, compared to $141,000 for the three months ended March 31, 2010, an increase of $28,000, or 19.9%. The increase in interest expense for the three months ended March 31, 2011 was primarily due to an increase in the average balance of interest-bearing deposits partially offset by a reduction in the average rate paid on certificates of deposit. Our average rate paid on interest-bearing liabilities was 1.35% for the three months ended March 31, 2011, compared to 1.40% for the three months ended March 31, 2010.

Non-Interest Income. Hibernia’s non-interest income consists of rental income, net of related expenses, fees and service charges, and realized gains and losses on investments.

Hibernia’s total non-interest income amounted to $41,000 for the three months ended March 31, 2011, compared to $38,000 for the three months ended March 31, 2010, a $3,000, or 7.9%, increase.

Non-Interest Expense. Hibernia’s total non-interest expense increased by $59,000, or 9.0%, to $712,000 for the three months ended March 31, 2011, compared to $653,000 for the three months ended March 31, 2010. The increase in non-interest expense for the quarter ended March 31, 2011 was due primarily to a $47,000 increase in salary and employee benefits expense primarily relating to awards under Hibernia’s stock benefit plans. See Notes 9 and 10 in the Notes to Consolidated Financial Statements. These increases were partially offset by an $11,000 decrease in advertising and promotional expenses.

Average Balances, Net Interest Income, and Yields Earned and Rates Paid. The following table shows for the periods indicated the total dollar amount of interest from average interest-earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and rates, and the net interest margin. As the Company owned no tax-exempt securities during the periods presented, no yield adjustments were made. All average balances are based on daily averages.


	Three Months Ended March 31,
	2011							2010
					Average							Average
	Average				Yield/			Average				Yield/
	Balance⁽³⁾		Interest⁽³⁾		Rate			Balance⁽³⁾		Interest⁽³⁾		Rate
	(Dollars in thousands)
Interest-earning assets:
Loans receivable⁽¹⁾	$	62,299	$	854		5.48	%	$	46,275	$	664		5.74	%
Investment securities		3,919		37		3.78			7,244		68		3.75
Other interest-earning assets		3,339		2		0.24			4,769		3		0.22

Total interest-earning assets		69,557		893		5.14	%		58,288		735		5.04	%

Non-interest-earning assets		6,723							7,970

Total assets	$	76,280						$	66,258


Interest-bearing liabilities:
Savings, NOW and money market accounts		16,839		28		0.67	%		16,627		27		0.67	%
Certificates of deposit		34,008		141		1.68			24,277		114		1.90

Total interest-bearing deposits		50,847		169		1.35	%		40,904		141		1.40	%
FHLB advances and Federal Funds Purchased		—		—		—			—		—		—

Total interest-bearing liabilities		50,847		169		1.35	%		40,904		141		1.40	%

Non-interest-bearing liabilities		3,378							2,083

Total liabilities		54,225							42,987
Equity		22,055							23,271

Total liabilities and equity	$	76,280						$	66,258

Net interest-earning assets	$	18,710						$	17,384

Net interest income; average interest rate spread			$	724		3.78	%			$	594		3.64	%

Net interest margin⁽²⁾						4.22	%						4.13	%

Average interest-earning assets to average interest-bearing liabilities						136.80	%						142.50	%


(1)		Calculated net of deferred fees and discounts, loans in process and allowance for loan losses.

(2)		Equals net interest income divided by average interest-earning assets.

(3)		Amounts that do not round to $1,000 are reflected as none.

Provision for Loan Losses. The allowance for loan losses is maintained to provide for probable credit losses related to specifically identified loans and for losses inherent in the loan portfolio that have been incurred as of the consolidated balance sheet date. The allowance is comprised of specific allowances and a general allowance.

Hibernia’s nonperforming assets, defined as non-accrual loans, accruing loans past due 90 days or more and foreclosed real estate, totaled $981,000, or 1.3%, of total assets at March 31, 2011, compared to $1.1 million, or 1.5%, of total assets at December 31, 2010. The non-performing loans totaling $981,000 at March 31, 2011, consist of five loans secured by first mortgages on one-to-four family residential real estate. The net decrease in non-performing loans for the three months ended March 31, 2011 was due to the return to accruing status of one performing troubled debt restructured loan. Management believes that the allowance for loan losses is sufficient to cover any losses that may be incurred on these loans. The Company had no foreclosed property at March 31, 2011 or December 31, 2010.

A loan loss provision of $15,000 was made to the allowance for loan losses during the three months ended March 31, 2011. No loan loss provision was made to the allowance for loan losses for the three months ended March 31, 2010.

To the best of management’s knowledge, the reserve is maintained at a level believed to cover all known and inherent losses in the loan portfolio, both probable and reasonable to estimate.

Liquidity and Capital Resources

Hibernia maintains levels of liquid assets deemed adequate by management. Hibernia adjusts its liquidity levels to fund deposit outflows, repay its borrowings and to fund loan commitments. Hibernia also adjusts liquidity as appropriate to meet asset and liability management objectives.

Hibernia’s primary sources of funds are deposits, amortization and prepayment of loans and to a lesser extent, rental income and funds provided from operations. While scheduled principal repayments on loans are a relatively predictable source of funds, deposit flows and loan prepayments are greatly influenced by general interest rates, economic conditions and competition. Hibernia sets the interest rates on its deposits to maintain a desired level of total deposits. In addition, the Company invests excess funds in short-term interest-earning accounts and other assets, which provide liquidity to meet lending requirements. Hibernia Homestead Bancorp’s cash and cash equivalents amounted to $4.5 million at March 31, 2011.

A significant portion of the Hibernia’s liquidity consists of non-interest earning deposits. Primary sources of cash are principal repayments on loans and increases in deposit accounts. If the Bank requires funds beyond its ability to generate them internally, borrowing agreements exist with the Federal Home Loan Bank of Dallas, which provide an additional source of funds. At March 31, 2011, Hibernia did not have any advances from the Federal Home Loan Bank of Dallas and had $3.2 million in borrowing capacity. At March 31, 2011, the Bank was also a party to a Master Purchase Agreement with First National Banker’s Bank whereby First National Banker’s Bank may sell to Hibernia Homestead Bank federal funds in an amount not to exceed $5.7 million. As of March 31, 2011, Hibernia Homestead Bank had no federal funds purchased from First National Banker’s Bank. As of March 31, 2011, the Bank participated in the Certificate of Deposit Account Registry Service (“CDARS”) of Promontory Interfinancial Network, which allows the Bank to provide FDIC deposit insurance in excess of account coverage limits by exchanging deposits (known as “reciprocal deposits”) with other CDARS members. The Company may also purchase deposits (known as “One-Way Buy” deposits) from other CDARS members in an amount not to exceed 10% of the Bank’s total assets, calculated based on its last quarterly call report. As of March 31, 2011, the Bank’s limit for One-Way Buy deposits was $7.7 million based on total assets on its December 31, 2010 call report. As of March 31, 2011, the Bank held no reciprocal deposits and had $3.0 million in One-Way Buy deposits from the CDARS program. Such deposits are generally considered a form of brokered deposits.

At March 31, 2011, the Bank had outstanding loan commitments of $5.7 million to originate loans. At March 31, 2011, certificates of deposit scheduled to mature in less than one year totaled $19.6 million. Based on prior experience, management believes that a significant portion of such deposits will remain with us, although there can be no assurance that this will be the case. The Bank intends to utilize its liquidity to fund its lending activities.

Contractual Cash Obligations. The following table summarizes our contractual cash obligations at March 31, 2011.


			Payments Due By Period
	Total at		To		1-3		4-5		After 5
	March 31, 2011		1 Year		Years		Years		Years
	(In thousands)

Certificates of deposit	$	34,073	$	19,612	$	9,905	$	4,556	$	—


Total contractual obligations	$	34,073	$	19,612	$	9,905	$	4,556	$	—

Hibernia Homestead Bank is required to maintain regulatory capital sufficient to meet tier 1 leverage, tier 1 risk-based and total risk-based capital ratios of at least 4.0%, 4.0% and 8.0%, respectively. At March 31, 2011, Hibernia Homestead Bank exceeded each of its capital requirements with ratios of 24.51%, 36.25% and 37.05%, respectively.

Off-Balance Sheet Arrangements

In the normal course of operations, we engage in a variety of financial transactions that, in accordance with generally accepted accounting principles are not recorded in our financial statements. These transactions involve, to varying degrees, elements of credit, interest rate, and liquidity risk. Such transactions are used primarily to manage customers’ requests for funding and take the form of loan commitments and lines of credit. Our exposure to credit loss from non-performance by the other party to the above-mentioned financial instruments is represented by the contractual amount of those instruments. We use the same credit policies in making commitments and conditional obligations as we do for on-balance sheet instruments. In general, we do not require collateral or other security to support financial instruments with off-balance sheet credit risk.

Commitments. The following table summarizes our outstanding commitments to originate loans and to advance additional amounts pursuant to outstanding letters of credit, lines of credit and undisbursed construction loans at March 31, 2011.


	Total Amounts		Amount of Commitment Expiration - Per Period
	Committed at		To		1-3		4-5		After 5
	March 31, 2011		1 Year		Years		Years		Years
	(In thousands)
Lines of credit	$	1,101	$	1,101	$	—	$	—	$	—
Undisbursed portion of loans in process		4,628		4,628		—		—		—
Commitments to originate loans		5,704		5,704		—		—		—

Total commitments	$	11,433	$	11,433	$	—	$	—	$	—

Impact of Inflation and Changing Prices

The consolidated financial statements and related financial data presented herein regarding Hibernia Homestead Bancorp, Inc. have been prepared in accordance with accounting principles generally accepted in the United States of America which generally require the measurement of financial position and operating results in terms of historical dollars, without considering changes in relative purchasing power over time due to inflation. Unlike most industrial companies, virtually all of Hibernia’s assets and liabilities are monetary in nature. As a result, interest rates generally have a more significant impact on the Company’s performance than does the effect of inflation. Interest rates do not necessarily move in the same direction or in the same magnitude as the prices of goods and services, since such prices are affected by inflation to a larger extent than interest rates.


Item 3 —		Quantitative and Qualitative Disclosures About Market Risk.

Not applicable.


Item 4 —		Controls and Procedures.

Our management evaluated, with the participation of our President and Chief Executive Officer and our Assistant Secretary and Chief Financial Officer, our disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this report. Based on such evaluation, our President and Chief Executive Officer and our Assistant Secretary and Chief Financial Officer concluded that our disclosure controls and procedures are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and regulations and are operating in an effective manner.

No change in our internal control over financial reporting (as defined in Rules 13a-15(f) or 15(d)-15(f) under the Securities Exchange Act of 1934) occurred during the most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II — OTHER INFORMATION


Item 1 —		Legal Proceedings.

There are no matters required to be reported under this item.


Item 1A —		Risk Factors.

Not applicable.


Item 2 —		Unregistered Sales of Equity Securities and Use of Proceeds.

(a) Not applicable.

(b) Not applicable.

The following presents the Company’s repurchase activity during the three month period ended March 31, 2011:

Total

Number of

Maximum

Shares

Number of

Purchased

Shares that

as Part of

May Yet Be

Total

Average

Publicly

Purchased

Number of

Price

Announced

Under the

Shares

Paid per

Plans or

Period

Purchased

Share

Programs

Programs (a)

January 1, 2011 — January 31, 2011

—

27,883

February 1, 2011 — February 28, 2011

—

27,883

March 1, 2011 — March 31, 2011

—

27,883

Total

—

27,883

Notes to this table:


(a)		On May 27, 2010, the Company announced by press release its second stock repurchase program to repurchase 52,883 shares, or 5% of its outstanding common stock. The program does not have an expiration date.

The following table presents the purchasing activity of the Recognition and Retention Plan Trust during the three month period ended March 31, 2011:

Total

Number of

Maximum

Shares

Number of

Purchased

Shares that

as Part of

May Yet Be

Total

Average

Publicly

Purchased

Number of

Price

Announced

Under the

Shares

Paid per

Plans or

Period

Purchased

Share

Programs

Programs (a)

January 1, 2011 — January 31, 2011

—

24,533

February 1, 2011 — February 28, 2011

—

24,533

March 1, 2011 — March 31, 2011

—

24,533

Total

—

24,533

Notes to this table:


(a)		The Company’s 2009 Recognition and Retention Plan was authorized to purchase up to a maximum of 44,533 shares of common stock, or 4.0% of the common stock sold in the initial public offering completed on January 27, 2009, as disclosed in the Company’s prospectus dated November 12, 2008, and announced by press release on July 31, 2009.


Item 3 —		Defaults Upon Senior Securities.

There are no matters required to be reported under this item.


Item 4 —		(Removed and Reserved).


Item 5 —		Other Information.

There are no matters required to be reported under this item.


Item 6 —		Exhibits.

List of exhibits: (filed herewith unless otherwise noted)


No.		Description
	31.1	Rule 13a-14(a)/15d-14(a) Certification of the Chief Executive Officer
	31.2	Rule 13a-14(a)/15d-14(a) Certification of the Chief Financial Officer
	32.1	Section 1350 Certification

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	HIBERNIA HOMESTEAD BANCORP, INC.
Date: May 16, 2011	By:	/s/ A. Peyton Bush, III
		A. Peyton Bush, III
		President and Chief Executive Officer


Date: May 16, 2011	By:	/s/ Donna T. Guerra
		Donna T. Guerra
		Assistant Secretary and Chief Financial Officer

HIBERNIA HOMESTEAD BANCORP, INC. - FORM 10-Q - May 16, 2011

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HIBERNIA HOMESTEAD BANCORP, INC. Reports