UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
________________________________

FORM 10-Q
(Mark One)
[X]	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2011

OR

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


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. [X] Yes [ ] 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). [X] Yes [ ] 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 [ ] Accelerated filer [ ]
Non-accelerated filer [ ] Smaller reporting company [X]
(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).
[ ] Yes [X] 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 November 10, 2011, 1,032,667 shares of the Registrant’s common stock were issued and outstanding.

Hibernia Bancorp, Inc.

Form 10-Q

Table of Contents

PART I - FINANCIAL INFORMATION	Page

Item 1 - Financial Statements (Unaudited)	1

Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations	34

Item 3 - Quantitative and Qualitative Disclosures About Market Risk	44

Item 4 - Controls and Procedures	44

PART II - OTHER INFORMATION

Item 1 - Legal Proceedings	44

Item 1A - Risk Factors	44

Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds	45

Item 3 - Defaults Upon Senior Securities	46

Item 4 - (Removed and Reserved)	46

Item 5 - Other Information	46

Item 6 - Exhibits	47

Signatures	48

Item 1 – Financial Statements (Unaudited).

Hibernia Bancorp, Inc.

Consolidated Balance Sheets (Unaudited)

	At September 30,			At December 31,
	2011			2010(1)
	(In Thousands)
Assets
Cash, Non-Interest Bearing	$	846		$	481
Cash, Interest Bearing		1,661			4,112
Total Cash and Cash Equivalents		2,507			4,593

Certificates of Deposit		100			100
Securities Available-for-Sale		2,326			4,230
Loans Receivable, Net		73,489			61,953
Accrued Interest Receivable		257			227
Investment in FHLB Stock		171			171
Investment in FNBB Stock		210			210
Other Real Estate Owned, Net		176			--
Premises and Equipment, Net		5,167			4,988
Deferred Income Taxes		438			528
Prepaid Expenses and Other Assets		247			253

Total Assets	$	85,088		$	77,253

Liabilities and Equity

Liabilities
Deposits	$	62,123		$	54,607
Advance Payments by Borrowers for Taxes and Insurance		597			477
Accrued Interest Payable		16			3
Accounts Payable and Other Liabilities		252			213

Total Liabilities		62,988			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 September 30, 2011 and December 31, 2010		11			11
Additional Paid-In Capital		10,532			10,466
Treasury Stock at cost – 80,667 shares at September 30, 2011 and December 31, 2010		(1,152	)		(1,152	)
Unallocated Common Stock held by:
Employee Stock Ownership Plan (ESOP)		(793	)		(819	)
Recognition and Retention Plan (RRP)		(262	)		(293	)
Accumulated Other Comprehensive Income, Net of Tax Effects		52			80
Retained Earnings		13,712			13,660

Total Equity		22,100			21,953

Total Liabilities and Equity	$	85,088		$	77,253

___________________

(1) Balances as of December 31, 2010 are derived from audited financial statements in Hibernia Bancorp, Inc.'s 2010 Annual Report on Form 10-K.

See notes to consolidated financial statements.

Hibernia Bancorp, Inc.

Consolidated Statements of Operations (Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011		2010
	(In Thousands, Except Per Share Data)
Interest Income
Loans Receivable
Mortgage Loans	$	675		$	573		$	1,923	$	1,664
Commercial Loans		297			214			766		543
Consumer and Other Loans		3			4			9		8
Federal Funds Sold		--			--			--		3
Mortgage-Backed Securities		24			51			86		171
Investment Securities		--			3			2		10
Other Investments and Deposits		6			3			11		4
Total Interest Income		1,005			848			2,797		2,403

Interest Expense
Deposits		172			173			510		467
Total Interest Expense		172			173			510		467

Net Interest Income		833			675			2,287		1,936

Provision for Loan Losses		29			28			67		38

Net Interest Income After
Provision for Loan Losses		804			647			2,220		1,898

Non-Interest Income
Rental Income, Net of Related Expenses		24			25			67		82
Other Income		8			6			30		18
Total Non-Interest Income		32			31			97		100

Non-Interest Expenses
Salaries and Employee Benefits		336			322			993		904
Occupancy Expenses		112			137			321		331
Data Processing		88			78			238		240
Advertising and Promotional Expenses		(10	)		21			44		78
Professional Fees		54			62			162		210
Insurance Expense		11			1			29		24
Supplies and Stationery		17			22			45		57
Telephone and Postage		19			14			56		42
Supervision, Exams and Assessments		20			17			66		53
Directors’ Fees		12			11			38		38
Franchise and Shares Taxes		16			3			50		27
Other Operating Expenses		56			23			119		78
Total Non-Interest Expenses		731			711			2,161		2,082

Income (Loss) Before Income Taxes		105			(33	)		156		(84	)

Income Tax Expense (Benefit)		74			--			104		(12	)

Net Income (Loss)	$	31		$	(33	)	$	52	$	(72	)

Income (Loss) Per Common Share
Basic	$	0.03		$	(0.03	)	$	0.05	$	(0.07	)
Diluted	$	0.03		$	(0.03	)	$	0.05	$	(0.07	)

See notes to consolidated financial statements.

Hibernia Bancorp, Inc.

Consolidated Statements of Changes in Equity (Unaudited)

Nine Months Ended September 30, 2011 and 2010

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

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

Net Loss		---		---			---			---			---			---			(72	)		(72	)

Other Comprehensive Loss, net of Applicable Taxes		---		---			---			---			---			(21	)		--			(21	)

Stock Purchased for RRP		---		---			---			---			(293	)		---			---			(293	)

Purchase of Treasury Stock		---		---			(788	)		---			---			---			---			(788	)

ESOP Stock Released for Allocation		---		12			---			27			---			---			---			39

RRP Stock Earned		---		13			---			---			---			---			---			13

Stock-Based Compensation Cost		---		41			---			---			---			---			---			41

BALANCE – September 30, 2010	$	11	$	10,431		$	(788	)	$	(828	)	$	(293	)	$	112		$	13,670		$	22,315

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

Net Income		---		---			---			---			---			---			52			52

Other Comprehensive Loss, net of Applicable Taxes		---		---			---			---			---			(28	)		---			(28	)

Issuance of RRP Stock		---		4			---			---			31			---			---			35

ESOP Stock Released for Allocation		---		17			---			26			---			---			---			43

RRP Stock Earned		---		(22	)		---			---			---			---			---			(22	)

Stock-Based Compensation Cost		---		67			---			---			---			---			---			67

BALANCE – September 30, 2011	$	11	$	10,532		$	(1,152	)	$	(793	)	$	(262	)	$	52		$	13,712		$	22,100

See notes to consolidated financial statements.

Hibernia Bancorp, Inc.

Consolidated Statements of Cash Flows (Unaudited)

	Nine Months Ended September 30,
	2011			2010
Cash Flows from Operating Activities	(In Thousands)
Net Income (Loss)	$	52			$	(72	)
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities
Provision for Loan Losses		67				38
Deferred Income Taxes		104				(12	)
Depreciation and Amortization		216				215
Net Discount Accretion		(4	)			(6	)
Loss on Disposal of Premises and Equipment		33				--
Non-Cash Compensation		136				93
(Increase) Decrease in:
Accrued Interest Receivable		(30	)			(53	)
Prepaid Expenses and Other Assets		6				(21	)
Increase (Decrease) in:
Accrued Interest Payable		13				10
Accounts Payable and Other Liabilities		26				125
Net Cash Provided by Operating Activities		619				317
Cash Flows from Investing Activities
Net Increase in Loans Receivable		(11,779	)			(12,541	)
Maturities, Redemptions and Sales of Certificates of Deposit		--				475
Maturities, Redemptions and Sales of Securities Available-for-Sale		1,866				3,065
Purchases of Certificates of Deposit		--				(100	)
Purchases of Premises and Equipment		(428	)			(120	)
Net Cash Used in Investing Activities		(10,341	)			(9,221	)
Cash Flows from Financing Activities
Net Increase in Deposits		7,516				6,469
Net Increase in Advance Payments by Borrowers for Taxes and Insurance		120				33
Purchase of Stock for RRP		--				(293	)
Purchase of Treasury Stock		--				(788	)
Net Cash Provided by Financing Activities		7,636				5,421

Net Decrease in Cash and Cash Equivalents		(2,086	)			(3,483	)

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

Cash and Cash Equivalents – End of Period	$	2,507			$	2,750

Supplementary Schedule of Cash Flow Information
Cash Paid for Interest on Deposits and Borrowings	$	497			$	457
Cash Paid for Income Taxes	$	--			$	--
Market Value Adjustment for Loss on Securities Available-for-Sale	$	(42	)		$	(32	)

Noncash Investing Activities
Loans Transferred to Other Real Estate Owned, Net	$	176			$	--

See notes to consolidated financial statements.

Hibernia 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. (“Hibernia” or the “Company”), and the 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.

Effective June 1, 2011, the Company amended its Articles of Incorporation to change its name to Hibernia Bancorp, Inc. and changed the Bank’s name to Hibernia Bank. The changes were made to reflect the broad range of services the Company now offers to businesses and individuals.

Hibernia Bank is a Louisiana-chartered and FDIC-insured savings bank that 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, commercial and industrial loans, and residential and commercial real estate construction 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 consolidated 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 and nine month periods ended September 30, 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 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 other real estate, management obtains independent appraisals for significant properties.

Hibernia 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 2010, the Company also began making commercial and industrial loans and increased its efforts to originate residential and commercial real estate construction 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 other 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 other 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 other 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 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 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.

Loans Modified in a Troubled Debt Restructuring

Our loan and lease portfolio also includes certain loans and leases that have been modified in a troubled debt restructuring (TDR), where economic concessions have been granted to borrowers who have experienced financial difficulties. These concessions typically result from our loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions. Certain TDRs are classified as non-performing at the time of restructuring and typically are returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period of at least six months.

When we modify loans and leases in a TDR, we evaluate any possible impairment similar to other impaired loans based on the present value of expected future cash flows, discounted at the contractual interest rate of the original loan or lease agreement, or use the current fair value of the collateral, less selling costs for collateral dependent loans. If we determine that the value of the modified loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through an allowance estimate or a charge-off to the allowance. In periods subsequent to modification, we evaluate all TDRs, including those that have payment defaults, for possible impairment and recognize impairment through the allowance.

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.

Hibernia Bancorp, Inc.

Notes to Consolidated Financial Statements (Continued)

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

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.

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 and FNBB Stock

The Company maintains investments in membership stocks of the Federal Home Loan Bank (FHLB) 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. As of September 30, 2011 the membership investment requirement was 0.05% of the member’s total assets, down from 0.06% as of December 31, 2010, and the activity-based requirement was 4.1% of advances and applicable Mortgage Partnership Finance assets as of September 30, 2011 and December 31, 2010.

Hibernia Bancorp, Inc.

Notes to Consolidated Financial Statements (Continued)

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

Other Real Estate Owned

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.

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 Shares Tax, which is based on stockholders’ equity and net income.

Hibernia Bancorp, Inc.

Notes to Consolidated Financial Statements (Continued)

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

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.

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.

	Nine Months Ended September 30,
	2011		2010
		(Unaudited)
		(In Thousands)

Net Income (Loss)	$ 52		$ (72)
Other Comprehensive Loss, Net of Tax
Unrealized Loss on Securities Available-for-Sale	(28)		(21)
Total Other Comprehensive Loss	(28)		(21)
Total Comprehensive Income (Loss)	$ 24		$ (93)

Statements of Cash Flows

The consolidated 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.

Hibernia Bancorp, Inc.

Notes to Consolidated Financial Statements (Continued)

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

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.

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 the reconciliation for Level 3 fair value measurements, which is 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 May 2011, the FASB issued ASU 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs”. The ASU contains guidance on the application of the highest and best use and valuation premise concepts, the measurement of fair values of instruments classified in shareholders’ equity, the measurement of fair values of financial instruments that are managed within a portfolio, and the application of premiums and discounts in a fair value measurement. It also requires additional disclosures about fair value measurements, including information about the unobservable inputs used in fair value measurements within Level 3 of the fair value hierarchy, the sensitivity of recurring fair value measurements within Level 3 to changes in unobservable inputs and the interrelationships between those inputs, and the categorization by level of the fair value hierarchy for items that are not measured at fair value but for which the fair value is required to be disclosed. These amendments are to be applied prospectively for interim and annual periods beginning after December 15, 2011. The adoption of this guidance is not expected to have a significant effect on the Company’s consolidated financial statements.

Hibernia 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 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 ASU 2011-01 which temporarily deferred the effective date of disclosure requirements for public entities about troubled debt restructurings in ASU 2010-20. The delay was intended to allow the FASB time to complete its deliberations on what constitutes trouble debt restructurings. ASU 2011-02 below lifted the temporary delay and now requires disclosures about troubled debt restructurings at the same time ASU 2011-02 is adopted.

In April 2011, the FASB issued ASU 2011-02, which amends the guidance for evaluating whether the restructuring of a receivable by a creditor is a troubled debt restructuring (“TDR”). In evaluating whether a restructuring constitutes a TDR both for purposes of recording an impairment loss and for disclosure purposes, a creditor must separately conclude that both of the following exist: (a) the restructuring constitutes a concession; and (b) the debtor is experiencing financial difficulties. For public companies, the new guidance is effective for interim and annual periods beginning on or after June 15, 2011, and applies retrospectively to restructurings occurring on or after the beginning of the annual period of adoption. However, an entity should apply prospectively changes in the method used to calculate impairment. At the same time a public entity adopts ASU 2011-02, it is required to disclose the activity based information that was previously deferred by ASU No. 2011-01. The Company adopted the provisions of this ASU in preparing the consolidated financial statements as of and for the interim period ended September 30, 2011. The adoption of this ASU did not have a material impact on Company’s consolidated financial statements.

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.

In June 2011, the FASB issued ASU 2011-05, “Presentation of Comprehensive Income”. The ASU increases the prominence of other comprehensive income in financial statements by requiring comprehensive income to be reported in either a single statement or in two consecutive statements which report both net income and other comprehensive income. It eliminates the option to report other comprehensive income and its components in the statement of changes in equity. The ASU is effective for

Hibernia Bancorp, Inc.

Notes to Consolidated Financial Statements (Continued)

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

Recent Accounting Pronouncements (Continued)

periods beginning after December 15, 2011 and requires retrospective application. The ASU does not change the components of other comprehensive income, the timing of items reclassified to net income, or the net income basis for income per share calculations. As this ASU is disclosure related only, the adoption of this ASU will not impact consolidated reported financial position or results of operations.

Advertising and Promotional Expenses

The Company follows the policy of charging the costs of advertising and promotions to expense as incurred. For advertising and promotional expenses during the three months ended September 30, 2011 and 2010, the Company recorded a net credit of $10,000 and net expense of $21,000, respectively. For advertising and promotional expenses during the nine months ended September 30, 2011 and 2010, the Company recorded expenses of $44,000 and $78,000, respectively. Advertising and promotional expenses are included in non-interest expense.

Hibernia Bancorp, Inc.

Notes to Consolidated Financial Statements (Continued)

Note 2. Investment Securities

A summary of investment securities classified as available-for-sale is presented below.

Available-for-Sale

The amortized cost and estimated fair values of available-for-sale securities at September 30, 2011 and December 31, 2010, are summarized as follows:

	September 30, 2011 (Unaudited)
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In Thousands)
U.S. Government Agencies	$	--	$	--	$	--	$	--
Mortgage-Backed Securities		2,247		79		--		2,326
Available-for-Sale Securities	$	2,247	$	79	$	--	$	2,326

	December 31, 2010
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair 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

The Company had no securities classified as trading or held-to-maturity at September 30, 2011 and December 31, 2010.

Hibernia 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 September 30, 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.

	September 30, 2011 (Unaudited)
	Amortized Cost		Fair Value
	(In Thousands)
Due in One Year or Less	$	903	$	912
Due After One Year Through Five Years		739		764
Due After Five Years Through Ten Years		513		551
Due After Ten Years Through Twenty Years		38		39
Due After Twenty Years		54		60
	$	2,247	$	2,326

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 nine months ended September 30, 2011 and 2010 were approximately $1.9 million and $3.1 million, respectively. There were no realized gains or losses in the nine month periods ending September 30, 2011 and September 30, 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 September 30, 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 Bancorp, Inc.

Notes to Consolidated Financial Statements (Continued)

Note 3. Loans Receivable

Loans receivable at September 30, 2011 and December 31, 2010 are summarized as follows:

	September 30, 2011			December 31, 2010
	(Unaudited)
	(In Thousands)

One-to-Four Family Residential	$	44,886		$	41,421
Multi-Family Residential		164			173
Second Mortgage Residential		164			174
Residential Construction and Land Loans		6,700			3,375
Commercial Loans Secured by Real Estate		19,354			14,317
Commercial and Industrial Loans		2,231			2,375
Home Equity Lines of Credit		344			426
Loans Secured by Deposits		--			24
		73,843			62,285

Deferred Loan Costs, Net of Fees		71			62
Less: Allowance for Loan Losses		(425	)		(394	)
Total	$	73,489		$	61,953

The following presents by portfolio segment, the balance in the allowance for loan losses disaggregated on the basis of the Company’s impairment measurement method and the related recorded investment in loans and leases as of September 30, 2011 (unaudited) and December 31, 2010.

	As of September 30, 2011
	Commercial and Industrial		Commercial Real Estate		Consumer		Residential		Total
Allowance for loan losses:	(In Thousands)
Ending balance: individually evaluated for impairment	$	-	$	-	$	-	$	30	$	30
Ending balance: collectively evaluated for impairment		12		97		-		286		395
Ending balance: loans acquired with deteriorated credit quality		-		-		-		-		-
Total	$	12	$	97	$	-	$	316	$	425

Financing receivables:
Ending Balance	$	2,231	$	19,354	$	344	$	51,914	$	73,843
Ending balance: individually evaluated for impairment	$	-	$	-	$	-	$	795	$	795
Ending balance: collectively evaluated for impairment	$	2,231	$	19,354	$	344	$	51,119	$	73,048
Ending balance: loans acquired with deteriorated credit quality	$	-	$	-	$	-	$	-	$	-

Hibernia Bancorp, Inc.

Notes to Consolidated Financial Statements (Continued)

Note 3. Loans Receivable (Continued)

	As of December 31, 2010
	Commercial and Industrial		Commercial Real Estate		Consumer		Residential		Total
Allowance for loan losses:	(In Thousands)
Ending balance: individually evaluated for impairment	$	-	$	-	$	-	$	62	$	62
Ending balance: collectively evaluated for impairment		12		72		-		248		332
Ending balance: loans acquired with deteriorated credit quality		-		-		-		-		-
Total	$	12	$	72	$	-	$	310	$	394

Financing receivables:
Ending Balance	$	2,375	$	14,317	$	450	$	45,143	$	62,285
Ending balance: individually evaluated for impairment	$	-	$	-	$	-	$	1,043	$	1,043
Ending balance: collectively evaluated for impairment	$	2,375	$	14,317	$	450	$	44,100	$	61,242
Ending balance: loans acquired with deteriorated credit quality	$	-	$	-	$	-	$	-	$	-

Hibernia Bancorp, Inc.

Notes to Consolidated Financial Statements (Continued)

Note 3. Loans Receivable (Continued)

The following presents by portfolio segment, the activity in the allowance for loan losses for the three and nine months ended September 30, 2011 (unaudited):

	Commercial and Industrial		Commercial Real Estate		Consumer		Residential			Total
Three Months Ended September 30, 2011	(In Thousands)
Allowance for loan losses:
Beginning Balance	$	12	$	79	$	-	$	315		$	406
Charge-offs		-		-		-		(10	)		(10	)
Recoveries		-		-		-		-			-
Provisions		-		18		-		11			29
Ending Balance	$	12	$	97	$	-	$	316		$	425

Nine Months Ended September 30, 2011
Allowance for loan losses:
Beginning Balance	$	12	$	72	$	-	$	310		$	394
Charge-offs		-		-		-		(36	)		(36	)
Recoveries		-		-		-		-			-
Provisions		-		25		-		42			67
Ending Balance	$	12	$	97	$	-	$	316		$	425

Activity in the allowance for loan losses for the three and nine months ended September 30, 2010 was as follows:

Three Months Ended September 30, 2010
Allowance for loan losses:
Beginning Balance	$	340
Charge-offs		-
Recoveries		-
Provisions		28
Ending Balance	$	368

Nine Months Ended September 30, 2010
Allowance for loan losses:
Beginning Balance	$	330
Charge-offs		-
Recoveries		-
Provisions		38
Ending Balance	$	368

Hibernia 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 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 September 30, 2011 (unaudited) and December 31, 2010.

Commercial Credit Exposure

Credit Risk Profile by Internally Assigned Credit Quality Indicator

					Commercial Real Estate				Commercial Real Estate
	Commercial and Industrial				Construction				Other
	September 30, 2011		December 31, 2010		September 30, 2011		December 31, 2010		September 30, 2011		December 31, 2010
					(In Thousands)
Pass - Level 1	$	2,231	$	2,375	$	3,458	$	1,229	$	15,540	$	12,709
Pass - Level 2		-		-		-		-		356		379
Pass - Level 3		-		-		-		-		-		-
Special Mention		-		-		-		-		-		-
Substandard		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-
Total	$	2,231	$	2,375	$	3,458	$	1,229	$	15,896	$	13,088

Residential Credit Exposure

Credit Risk Profile by Internally Assigned Credit Quality Indicator

	Residential - Prime
	September 30, 2011		December 31, 2010
Grade:	(In Thousands)
Pass - Level 1	$	45,122	$	37,129
Pass - Level 2		4,812		5,536
Pass - Level 3		410		175
Special Mention		777		660
Substandard		586		1,643
Doubtful		207		-
Total	$	51,914	$	45,143


Consumer Credit Exposure
Credit Risk Profile Based on Payment Activity
	Consumer - Other
	September 30, 2011		December 31, 2010
	(In Thousands)
Performing	$	344	$	450
Nonperforming		-		-
Total	$	344	$	450

Hibernia 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 September 30, 2011 (unaudited) and December 31, 2010:

	Recorded Investment		Unpaid Principal Balance		Related Allowance
September 30, 2011	(In Thousands)
With no related allowance recorded:
Commercial and industrial	$	-	$	-	$	-
Commercial real estate		-		-		-
Residential - prime		588		588		-
With an allowance recorded:
Commercial and industrial		-		-		-
Commercial real estate		-		-		-
Residential - prime		207		225		30
Total:
Commercial and industrial	$	-	$	-	$	-
Commercial real estate	$	-	$	-	$	-
Residential - prime	$	795	$	813	$	30


December 31, 2010
With no related allowance recorded:
Commercial and industrial	$	-	$	-	$	-
Commercial real estate		-		-		-
Residential - prime		261		262		-
With an allowance recorded:
Commercial and industrial		-		-		-
Commercial real estate		-		-		-
Residential - prime		782		786		62
Total:
Commercial and industrial	$	-	$	-	$	-
Commercial real estate	$	-	$	-	$	-
Residential - prime	$	1,043	$	1,048	$	62

Hibernia Bancorp, Inc.

Notes to Consolidated Financial Statements (Continued)

Note 3. Loans Receivable (Continued)

Impaired Loans (Continued)

The following presents by class, information related to the average recorded investment and interest income recognized on impaired loans for the three and nine months ended September 30, 2011 (unaudited):

	Average Recorded Investment		Interest Income Recognized
	(In Thousands)
Three months ended September 30, 2011
With no related allowance recorded:
Commercial and industrial	$	-	$	-
Commercial real estate		-		-
Residential - prime		887		25
With an allowance recorded:
Commercial and industrial		-		-
Commercial real estate		-		-
Residential - prime		209		-
Total:
Commercial and industrial	$	-	$	-
Commercial real estate	$	-	$	-
Residential - prime	$	1,096	$	25


Nine months ended September 30, 2011
With no related allowance recorded:
Commercial and industrial	$	-	$	-
Commercial real estate		-		-
Residential - prime		1,190		42
With an allowance recorded:
Commercial and industrial		-		-
Commercial real estate		-		-
Residential - prime		215		-
Total:
Commercial and industrial	$	-	$	-
Commercial real estate	$	-	$	-
Residential - prime	$	1,405	$	42

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

Hibernia Bancorp, Inc.

Notes to Consolidated Financial Statements (Continued)

Note 3. Loans Receivable (Continued)

Troubled Debt Restructurings

There were no loans modified in a TDR during the three or nine months ended September 30, 2011. The Company had no loans modified in a TDR which had payment defaults during the three and nine months ended September 30, 2011. Default occurs when a loan or lease is 90 days or more past due.

As of September 30, 2011, the Company had two TDRs, both of which are included in impaired loans and were modified before December 31, 2010. The outstanding balance of the two TDRs as of September 30, 2011 was $150,000. TDR loans were individually evaluated and any valuation allowance is recorded in the allowance for loan losses on the balance sheet. As of September 30, 2011, the Company had no commitments to lend additional funds to debtors owing receivables whose terms have been modified in troubled debt restructurings.

Non-Accrual Loans

The following presents by class, the recorded investment in loans on non-accrual status as of September 30, 2011 (unaudited) and December 31, 2010:

	September 30, 2011		December 31, 2010
	(In Thousands)
Commercial and Industrial	$	-	$	-
Commercial Real Estate		-		-
Consumer		-		-
Residential - prime		586		1,138
	$	586	$	1,138

Hibernia 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 September 30, 2011 (unaudited) and December 31, 2010, (in thousands):

September 30, 2011
(In Thousands)

	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days		Total Past Due		Current		Total Financing Receivables		Recorded Investment > 90 Days and Accruing
							(Unaudited)
Commercial and Industrial	$	-	$	-	$	-	$	-	$	2,231	$	2,231	$	-
Commercial real estate:
Commercial real estate - construction		-		-		-		-		3,458		3,458		-
Commercial real estate - other		-		-		-		-		15,896		15,896		-
Consumer:
Consumer - other		-		-		-		-		344		344		-
Residential:
Residential - prime		645		97		379		1,121		50,793		51,914		-
Total	$	645	$	97	$	379	$	1,121	$	72,722	$	73,843	$	-

December 31, 2010
(In Thousands)

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

	Three Months Ended September 30,					Nine Months Ended September 30,
(in thousands, except per share data)	2011		2010			2011		2010
Numerator:	(Unaudited)
Income (loss) applicable to common shares	$	31	$	(33	)	$	52	$	(72	)

Denominator:
Weighted average common shares outstanding		935		954			933		978
Effect of dilutive securities		31		--			32		--

Weighted average common shares outstanding—assuming dilution		966		954			965		978

Earnings (loss) per common share	$	0.03	$	(0.03	)	$	0.05	$	(0.07	)

Earnings (loss) per common share—assuming dilution	$	0.03	$	(0.03	)	$	0.05	$	(0.07	)

Due to the net loss attributable to common shareholders for the three and nine months ended September 30, 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 63,833 with a weighted average exercise price of $14.65 per share for the three and nine month periods ended September 30, 2010 were excluded from diluted shares. Share-based awards did not have an anti-dilutive effect on diluted earnings per share for the three and nine months ended September 30, 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. 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 September 30, 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.

Hibernia Bancorp, Inc.

Notes to Consolidated Financial Statements (Continued)

Note 5. Regulatory Matters (Continued)

The Bank, at September 30, 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)
September 30, 2011
Tier 1 Capital (to Average Assets)	$	18,716		22.29	%	$	3,359		4.00	%
Tier 1 Capital (to Risk-Weighted Assets)	$	18,716		31.98	%	$	2,341		4.00	%
Total Capital (to Risk-Weighted Assets)	$	19,141		32.71	%	$	4,681		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	%

The Company, as a savings and loan holding company regulated by the Board of Governors of the Federal Reserve System, is not currently subject to regulatory capital requirements, although they are expected to be adopted in the future.

Hibernia Bancorp, Inc.

Notes to Consolidated Financial Statements (Continued)

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.

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 discount rates 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 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 discount rates estimated using comparable risk-free market rates for similar types of instruments adjusted to be commensurate with, overhead costs, and optionality of such instruments and incorporates all forms of risk in a single spread to the Treasury yield curve.

Hibernia Bancorp, Inc.

Notes to Consolidated Financial Statements (Continued)

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

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.

The estimated fair values of the Company’s financial instruments at September 30, 2011 and December 31, 2010, are as follows (reported in thousands):

	September 30, 2011
	(Unaudited)
	Carrying			Fair
	Amount			Value
Financial Assets
Cash and Short-Term Investments	$	2,507		$	2,507
Investment Securities		2,326			2,326
Certificates of Deposit		100			100
Loans		73,914			73,828
Less: Allowance for Loan Losses		(425	)
	$	78,422		$	78,761
Financial Liabilities
Deposits and Advance Payments by Borrowers for Taxes and Insurance	$	62,720		$	62,036

Unrecognized Financial Instruments
Commitments to Extend Credit	$	12,550		$	12,550

	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 Bancorp, Inc.

Notes to Consolidated Financial Statements (Continued)

Note 7. Fair Value Measurements

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. On January 1, 2011, the Company adopted FASB ASU 2010-06, “Fair Value Measurements and Disclosures” that requires new disclosures related to fair value measurements and clarifies existing disclosure requirements about the level of disaggregation, inputs and valuation techniques.

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.

In addition, 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. During the periods presented in the Company’s consolidated financial statements, there were no significant transfers in or out of Level 1 and Level 2.

Furthermore, 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 Company had no Level 3 assets and liabilities during the periods presented in the Company’s consolidated financial statements.

Hibernia Bancorp, Inc.

Notes to Consolidated Financial Statements (Continued)

Note 7. Fair Value Measurements (Continued)

The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis at September 30, 2011 (unaudited) and December 31, 2010:

	September 30, 2011
	Total		Level 1		Level 2		Level 3
	(In Thousands)
Assets
Investment Securities	$	2,326	$	-	$	2,326	$	-
Total	$	2,326	$	-	$	2,326	$	-

Liabilities	$	-	$	-	$	-	$	-
Total	$	-	$	-	$	-	$	-

	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	$	-	$	-	$	-	$	-

Assets measured at fair value on a non-recurring basis are summarized below:

	Fair value measurements at September 30, 2011 (unaudited)
	Total			Level 1		Level 2			Level 3
	(In Thousands)
Assets
Impaired Loans
Residential real estate	$	795		$	--	$	795		$	--
Specific allowance	$	(30	)	$	--	$	(30	)	$	--
Total	$	765		$	--	$	765		$	--

Other real estate owned
Residential real estate	$	176		$	--	$	176		$	--
Total	$	176		$	--	$	176		$	--

Hibernia Bancorp, Inc.

Notes to Consolidated Financial Statements (Continued)

Note 7. Fair Value Measurements (Continued)

Other real estate owned had a carrying amount of $176,000, with no valuation allowance for the period ending September 30, 2011.

	Fair value measurements at December 31, 2010
	Total			Level 1		Level 2			Level 3
	(In Thousands)
Assets
Impaired Loans
Residential real estate	$	1,043		$	--	$	1,043		$	--
Specific allowance	$	(62	)	$	--	$	(62	)	$	--
Total	$	981		$	--	$	981		$	--

Other real estate owned
Residential real estate	$	--		$	--	$	--		$	--
Total	$	--		$	--	$	--		$	--

The specific allowance for loan losses on impaired loans is recorded in the allowance for loan losses on the balance sheet.

Note 8.

Employee Stock Ownership Plan

During fiscal 2008, the Company instituted an employee stock ownership plan. The Hibernia 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 June 30, 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 period and the average market price of the stock for the current period.

ESOP compensation expense for the three months ended September 30, 2011 and September 30, 2010 was $14,000 and $13,000, respectively. ESOP compensation expense for the nine months ended September 30, 2011 and 2010 amounted to $43,000 and $39,000, respectively.

Hibernia 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 September 30, 2011 and September 30, 2010, 11,133 shares have been awarded under the Plan. During the nine months ended September 30, 2011, 2,226 shares vested and were released, leaving a balance of 8,907 awarded shares as of September 30, 2011. Compensation expense is being recognized over the vesting period. For the three months ended September 30, 2011 and 2010 the Company recognized $9,000 and $13,000, respectively, of compensation expense related to the Recognition and Retention Plan. Compensation expense related to the Recognition and Retention Plan for the nine months ended September 30, 2011 and 2010 was $26,000 and $13,000, respectively.

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. At September 30, 2011, there were 24,533 shares remaining to be purchased for the RRP. 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 September 30, 2011 and September 30, 2010, 63,833 options have been granted to eligible employees. For the three months ended September 30, 2011 and September 30, 2010, the Company recognized $22,000 and $26,000, respectively, of compensation expense related to stock options granted. For the nine months ended September 30, 2011 and 2010, the Company recognized $67,000 and $41,000, respectively, of compensation expense related to stock options granted.

Hibernia 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 nine months ended September 30, 2011 (unaudited):

	Number of Shares		Weighted-average Exercise Price


Outstanding at January 1, 2011		63,833	$	14.65
Granted		-		-
Exercised		-		-
Forfeited		-		-
Outstanding at September 30, 2011		63,833	$	14.65

Options Exercisable at September 30, 2011		12,767	$	14.65

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 has 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 Bancorp, Inc. (the “Company” or “Hibernia”) and Hibernia 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 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 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. Deferred taxes are also recognized for operating losses and tax credits that are available to offset future income taxes. 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 September 30, 2011 and December 31, 2010

Hibernia Bancorp's consolidated total assets increased $7.8 million, or 10.1%, to $85.1 million at September 30, 2011 compared to $77.3 million at December 31, 2010. The increase was primarily the result of an increase of $11.5 million in net loans receivable, partially offset by decreases of $1.9 million in investment securities available-for-sale and $2.1 million in cash and cash equivalents. The additional loan volume was primarily funded by a $7.5 million increase in deposits and decreases of $1.9 million in investment securities available-for-sale and $2.1 million in cash and cash equivalents. Our gross loans receivable increased by $11.6 million, or 18.6%, to $73.8 million at September 30, 2011, compared to $62.3 million at December 31, 2010 reflecting a $5.0 million increase in commercial loans secured by real estate, a $3.5 million increase in one-to-four family residential mortgage loans and a $3.3 million increase in residential construction and land loans. During the first nine months of 2011 our total loan originations amounted to approximately $24.7 million and loan principal repayments were approximately $13.0 million. Our total investment securities amounted to $2.3 million at September 30, 2011, compared to $4.2 million at December 31, 2010, a decrease of $1.9 million, or 45.0%. The decrease in investment securities was due to maturities and redemptions of securities available-for-sale received during the period.

Hibernia's deposits increased $7.5 million, or 13.8%, to $62.1 million at September 30, 2011, compared to $54.6 million at December 31, 2010. The increase reflects increases of $4.7 million in money market accounts, $1.9 million in certificates of deposit and $937,000 in savings, interest bearing checking accounts and demand deposits. The Bank had no Federal Home Loan Bank advances at September 30, 2011 or December 31, 2010. Our stockholders' equity increased to $22.1 million at September 30, 2011 from $22.0 million December 31, 2010.

Comparison of Operating Results for the Three and Nine Months Ended September 30, 2011 and 2010.

For the three months ended September 30, 2011, Hibernia Bancorp had net income of $31,000 compared to a net loss of $33,000 for the three months ended September 30, 2010. Our results for the quarterly period reflect an increase in our net interest income for the quarter ended September 30, 2011 compared to the 2010 quarter. Our net interest income increased $158,000 from $675,000 for the three months ended September 30, 2010, to $833,000 for the three months ended September 30, 2011. The increase was due to higher interest income as a result of increased loan volumes. Interest expense remained approximately the same reflecting higher volumes of interest bearing deposits offset by lower average rates. Our net interest margin increased by 11 basis points to 4.26% for the three months ended September 30, 2011 compared to 4.15% for the three months ended September 30, 2010 while our average interest rate spread increased to 4.00% for the three months ended September 30, 2011, compared to 3.81% for the three months ended September 30, 2010. During the three months ended September 30, 2011, the average rate paid on certificates of deposit decreased 39 basis points from 1.86% for the three months ended September 30, 2010, to 1.47% for the three months ended September 30, 2011.

For the nine months ended September 30, 2011, our net income was $52,000 compared to a net loss of $72,000 for first nine months of 2010. Our results in the 2011 period reflect in part an increase in our net interest income for the nine months ended September 30, 2011. In addition, our non-interest expenses increased $79,000, or 3.8%, over the prior nine month period. For the first nine months of 2011, our net interest margin and average interest rate spread were 4.19% and 3.84%, respectively, compared to 4.19% and 3.77%, respectively for the nine months ended September 30, 2010. During the first nine months of 2011, the average rate paid on certificates of deposit decreased 29 basis points from 1.88% for the nine months ended September 30, 2010, to 1.59% for the nine months ended September 30, 2011. Lower rates on certificates of deposit during the nine months ended September 30, 2011 reflect general interest rate declines during the period.

Interest Income. Hibernia's total interest income was $1.0 million for the three months ended September 30, 2011, compared to $848,000 for the three months ended September 30, 2010, an increase of $157,000, or 18.5%. The increase in interest income in the three months ended September 30, 2011, compared to the three months ended September 30, 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 5.18% for the three months ended September 30, 2011, compared to 5.26% for the comparable period in 2010. Average interest-earning assets were $77.6 million for the three months ended September 30, 2011, compared to $64.5 million for the comparable period in 2010.

For the nine months ended September 30, 2011, total interest income was $2.8 million, compared to $2.4 million for the nine months ended September 30, 2010, a $394,000, or 16.4% increase. The increase in interest income for the nine months ended September 30, 2011, compared to the nine months ended September 30, 2010, was due primarily to an increase in loans and a decrease in lower yielding investment securities as a percentage of earning assets. The average yield on our interest-earning assets was 5.11% for the nine months ended September 30, 2011, compared to 5.19% for the comparable period in 2010. Average interest-earning assets were $73.0 million for the nine months ended September 30, 2011, compared to $61.7 million for the comparable period in 2010.

Interest Expense. Hibernia's total interest expense was $172,000 for the three months ended September 30, 2011, compared to $173,000 for the three months ended September 30, 2010, a decrease of $1,000. Interest expense remained approximately the same though there was an increase in interest bearing deposits which was offset by a reduction in the average rate paid on deposits. Our average rate paid on interest-bearing liabilities was 1.18% for the three months ended September 30, 2011, compared to 1.45% for the three months ended September 30, 2010.

Our total interest expense was $510,000 for the nine months ended September 30, 2011, compared to $467,000 for the nine months ended September 30, 2010, an increase of $43,000, or 9.2%. The increase in interest expense for the nine months ended September 30, 2011 was primarily due to an increase in the average balance of interest-bearing deposits partially offset by lower average rates of interest paid on our certificates of deposit in the 2011 period. For the nine months ended September 30, 2011, our average rate paid on interest-bearing liabilities was 1.27%, compared to 1.42% for the nine months ended September 30, 2010.

Non-Interest Income. Hibernia's non-interest income consists of rental income net of related expenses, fees and service charges.

Hibernia's total non-interest income amounted to $32,000 for the three months ended September 30, 2011, compared to $31,000 for the three months ended September 30, 2010, a $1,000 increase. For the nine months ended September 30, 2011, non-interest income was $97,000, compared to $100,000 for the nine months ended September 30, 2010, a $3,000, or 3.0%, decrease. The change for the nine month period was primarily due to lower rental income as a parking lot was reconfigured, which reduced income and maintenance costs to a lesser extent. This reduction of income was partially offset by an increase in other income during the nine months ended September 30, 2011, as compared to the 2010 period.

Non-Interest Expense. Hibernia's total non-interest expense was $731,000 and $711,000, for the three months ended September 30, 2011 and September 30, 2010, respectively. Increases of $33,000 in other operating expense and $14,000 in salaries and employee benefits were offset by decreases of $31,000 in advertising and promotional expenses and $25,000 in occupancy expense for the three months ended September 30, 2011 compared to the prior year period. The increase in other operating expense was due primarily to a $27,000 loss on disposal of premises and equipment related to a roof replacement.

For the nine months ended September 30, 2011, compared to the nine months ended September 30, 2010, our non-interest expense increased by $79,000, or 3.8%. The non-interest expense for the nine months ended September 30, 2011 as compared to the nine months ended September 30, 2010, reflected an $89,000 increase in salary and employee benefit expense primarily related to stock benefit plans and $33,000 of year-to-date losses on disposals of premises and equipment. These increases were partially offset by decreases in professional fees, advertising and promotional expenses, and occupancy expense.

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 September 30,

2011

2010

Average

For the transition period from

Commission file number: 000-53555

Hibernia Bancorp, Inc.

(Exact Name of Registrant as Specified in Its Charter)

HIBERNIA BANCORP, INC. 10-Q