Louisiana State Trooper Albert Paxton told ABC News a SWAT team stormed a bank where Fuaed Abdo Ahmed had held two bank employees hostage for 12 hours.
As authorities entered the building, Ahmed allegedly shot both hostages, a man and a woman, before he was killed by police, CNN reported.
Both hostages, whose names were not reported, were taken to area hospitals where one died, Louisiana State Police said.
Police said Ahmed was known to them before the incident and Col. Michael Edmonson described the suspect as paranoid schizophrenic.
In his list of demands, Ahmed said he heard voices in his head and wanted someone to remove a device in his head to make it stop, ABC News said.
Edmonson said police believe Ahmed planned the incident because they found a book on hostage negotiations inside the bank.
A third hostage escaped the bank unharmed earlier in the standoff, CNN said.