SOURCE: Teche Holding Company

January 24, 2008 09:57 ET

Teche First Quarter Net Income Up 4.7%

FRANKLIN, LA--(Marketwire - January 24, 2008) - (AMEX: TSH) -- Patrick Little, President and CEO of Teche Holding Company, holding company for Teche Federal Bank, today reported on earnings for the Company for the quarter ended December 31, 2007, the first quarter of fiscal 2008.

Earnings for the quarter ended December 31, 2007 amounted to $1.9 million or $0.84 per diluted share, compared to $1.8 million or $0.78 per diluted share for the same quarter in fiscal 2007, an increase of $85,000, or 4.7%.

"Teche revenues this quarter showed solid results," said Little, "with increases in both net interest income and non-interest income."

The Company reported the following key achievements:

--  Quarterly Net Income increased 4.7%, or an increase of $85,000, as
    compared to the same period last year. EPS increased $0.06 per diluted
    share, or 7.7%
--  Quarterly Net Interest Income increased 7.9%, an increase of $449,000
    to $6.1 million, from $5.7 million last year.
--  Quarterly Non-Interest Income increased 11.7%, an increase of $409,000
    to $3.9 million, from $3.5 million last year.
--  Total Deposits, in the past three months, increased 0.5%, or $3.0
    million to $558.6 million from $555.6 million at September 30, 2007.  Total
    deposits in the past year, increased $12.6 million, or 2.3%
--  SmartGrowth Deposits, in the past three months, increased 4.4%, or
    $12.3 million to $289.2 million from $276.9 million at September 30, 2007.
    SmartGrowth Deposits in the past twelve months increased $35.8 million or
    14.1%.
--  Net Loans, in the past three months, increased 3.2% or $17.7 million
    to $579.7 million from $562.0 million at September 30, 2007.  Net Loans, in
    the past year, increased $49.9 million or 9.4%.
--  SmartGrowth Loans, in the past three months increased 5.1%, or $19.4
    million to $395.7 million, from $376.3 million at September 30, 2007.
    SmartGrowth Loans in the past twelve months increased $49.9 million or
    14.4%.
--  Commercial Loans, in the past three months, increased 7.6%, or $12.1
    million to $171.4 million from $159.3 million at September 30, 2007.
--  Quarterly Dividends increased to $0.335 per share compared to $0.30
    per share for the quarter ended December 31, 2006, an increase of 11.7%.
    Dividends have increased for nineteen consecutive quarters.
    

Loan Growth

Three-Month Growth -- Net Loans Receivable increased to $579.7 million at December 31, 2007, from $562.0 million at September 30, 2007, a three-month increase of $17.7 million, or 3.2% SmartGrowth Loans, consisting of commercial loans, home equity loans, alternative mortgage loans and consumer loans, were $395.7 million, or 67.6% of total loans at December 31, 2007, compared to $376.3 million, or 66.4% at September 30, 2007, a three-month increase of $19.4 million, or 5.1%.

Commercial loan balances at December 31, 2007 amounted to $171.4 million, compared to $159.3 million at September 30, 2007, a three-month increase of $12.1 million or 7.6%. Consumer loan balances at December 31, 2007 amounted to $84.9 million, compared to $80.5 million at September 30, 2007, a three-month increase of $4.4 million, or 5.4%.

Twelve-Month Growth -- Net Loans Receivable increased to $579.7 million at December 31, 2007 from $529.8 million at December 31, 2006 a twelve-month increase of $49.9 million, or 9.4%. SmartGrowth Loans increased to $395.7 million at December 31, 2007, from $345.8 million at December 31, 2006, a twelve-month increase of $49.9 million, or 14.4%.

Commercial loan balances at December 31, 2007 amounted to $171.4 million, compared to $141.9 million at December 31, 2006 a twelve-month increase of $29.6 million, or 20.8%. Consumer loan balances at December 31, 2007 amounted to $84.9 million, a twelve-month increase of $17.4 million, or 25.8%.

"Overall, for the past quarter, SmartGrowth loan originations have been excellent," said Little.

Deposit Growth

Three-Month Growth -- Total Deposits increased to $558.6 million at December 31, 2007, from $555.6 million at September 30, 2007, a three-month increase of $3.0 million or 0.5%. The Company's SmartGrowth Deposit Accounts, consisting of checking accounts, money market accounts, and savings accounts, had solid growth. Total SmartGrowth Deposits grew $12.3 million to $289.2 million or 4.4% at December 31, 2007, from $276.9 million at September 30, 2007.

Checking account balances at December 31, 2007 increased $2.7 million, or 2.0%, to $136.7 million from $134.0 million at September 30, 2007

Twelve-Month Growth -- Total Deposits increased to $558.6 million at December 31, 2007, from $545.9 million at December 31, 2006, a twelve-month increase of $12.7 million, or 2.3%. Total SmartGrowth Deposits grew $35.8 million, or 14.1% from $253.4 million at December 31, 2006.

SmartGrowth Deposits amounted to 51.8% of total deposits as of December 31, 2007.

Checking account balances at December 31, 2007 increased 10%, or $12.4 million in the past 12 months. Checking account balances now account for 24.5% of total deposits.

Net Interest Income

Net Interest Income for the three months ended December 31, 2007 amounted to $6.1 million compared to $5.7 million for the quarter ended December 31, 2006, an increase of $449,000 or 7.9%.

The increase in Net Interest Income was primarily due to increases in loan balances and loan yields offset somewhat by an increase in average FHLB advances.

Asset Quality

Non-performing Assets to Total Assets were unchanged at 0.71% at December 31, 2007, compared to December 30, 2006.

The quarterly provision for loan losses increased to $180,000 compared to $85,000 the same quarter last year. The increase was primarily due to continued growth in the consumer and commercial loan portfolio.

The ratio of non-performing assets to total assets remains somewhat above historically lower levels and consists of primarily residential credits and, to a lesser extent, includes some consumer and commercial loans. Real Estate Owned is $1.2 million or 23.0% of total non-performing assets with $951,000 or 79.1% of that being two commercial properties.

Increase in Dividends

Since June 12, 2003, the Company has increased dividends for nineteen consecutive quarters and on December 31, 2007 paid a $0.335 per share quarterly dividend. Based on the closing price of the Company's common stock on December 31, 2007 of $37.75, the annualized dividend yield was 3.6%.

Net Interest Margin

Net interest margin amounted to 3.66% for the three-month period ended December 31, 2007; compared to 3.57% for the three-months ended December 31, 2006. The increase was primarily due to growth in the commercial and consumer loan portfolios which have higher interest rates than conventional mortgage loans. Compared to the same quarter last year, average yield on earnings assets increased 27 basis points from 6.52% to 6.79%, while average cost of funds only increased 19 basis points from 3.31% to 3.50%.

"We are pleased that our net interest margin has increased, despite the challenging interest rate environment," said Little. "This is the result of our SmartGrowth strategy, and has enabled us to grow Net Interest Income 7.9% compared to the same quarter last year."

Non-Interest Income

Non-interest income for quarter ended December 31, 2007 amounted to $3.9 million, compared to $3.5 million for quarter ended December 31, 2006, an increase of $409,000, or 11.7%.

Non-interest income amounted to 38.9% of operating income for the quarter ended December 31, 2007, compared to 38.1% for the three months ended December 31, 2006. Deposit service charges amounted to 92.7% of total non-interest income for the quarter ended December 31, 2007, compared to 91.7% for the quarter ended December 31, 2006.

Non-Interest Expense

Non-interest Expense amounted to $7.0 million compared to $6.4 million for the three months ended December 31, 2006, primarily due to increased employee benefits, incentive pay, and normal compensation increases.

Teche Holding Company is the parent company of Teche Federal Bank, which operates twenty offices in South Louisiana and serves over 60,000 customers. Teche Federal Bank is the fourth largest publicly owned bank based in Louisiana with over $700 million in assets. Deposits at Teche Federal Bank are insured up to the legal maximum amount by the Federal Deposit Insurance Corporation (FDIC). Teche Holding Company's common stock is traded under the symbol "TSH" on the American Stock Exchange.

Statements contained in this news release, which are not historical facts, are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, factors discussed in documents filed by Teche Holding Company with the Securities and Exchange Commission from time to time. The Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company.

                       TECHE HOLDING COMPANY
           (Dollars in thousands, except per share data)
                            Franklin, LA
                        Statements of Income
                             (UNAUDITED)

                                           Three Months Ended
                                              December 31
                                          2007            2006
                                        --------        --------

Interest Income                         $ 11,361        $ 10,388
Interest Expense                           5,233           4,709
                                        --------        --------
Net Interest Income                        6,128           5,679
Provision for Loan Losses                    180              85
                                        --------        --------
Net Interest Income after
  Provision for Loan Losses                5,948           5,594
Non Interest Income                        3,907           3,498
Non Interest Expense                       6,992           6,386
                                        --------        --------
Income Before Gain on Sales of
  Securities and Income Taxes              2,863           2,706
Gains on Sales of Securities                   0              19
Income Taxes                                 980             927
                                        --------        --------

Net Income                              $  1,883        $  1,798
                                        ========        ========
Selected Financial Data

Dividends Declared Per Share            $  0.335        $   0.30
Basic Earnings Per Common Share         $   0.85        $   0.81
Diluted Earnings Per Common Share       $   0.84        $   0.78
Annualized Return on Avg. Assets            1.04%           1.05%
Annualized Return on Avg. Equity           11.16%          11.38%
Annualized Return on Avg.
 Tangible Equity (1)                       11.91%          12.21%
Net Interest Margin                         3.66%           3.51%
Non Interest Income/Avg. Assets             2.16%           2.03%
Non Interest Expense/Avg. Assets            3.87%           3.71%
Weighted avg. shares Outstanding
    Basic                                  2,210           2,219
    Diluted                                2,240           2,293

AVERAGE BALANCE SHEET DATA
Total Assets                            $723,584        $687,688
Earning assets                          $669,198        $635,086
Loans                                   $577,559        $530,173
Interest-bearing deposits               $500,393        $491,498
Total deposits                          $552,964        $540,234
Total stockholders' equity              $ 67,514        $ 63,180

(1) Eliminates the effect of goodwill and the core deposit
    intangible assets and the related amortization expense on a
    tax-effected basis.  The amount was calculated using the
    following information:

Annualized Return on Avg. Tangible Equity

Average Stockholders' Equity            $ 67,514        $ 63,180
Less average goodwill and other
 intangible assets, net of
 related income taxes                      3,806           3,872
                                        --------        --------
Average Tangible Equity                 $ 63,708        $ 59,308
                                        ========        ========
Net Income                              $  1,883        $  1,798
Plus Amortization of core deposit
 intangibles, net of related income
 taxes                                        14              12
                                        --------        --------
Net Income, as adjusted                 $  1,897        $  1,810
                                        ========        ========

                        TECHE HOLDING COMPANY
            (Dollars in thousands, except per share data)
                            Franklin, LA
                           Balance Sheets
                             (UNAUDITED)
                                 at

                                           Dec. 31,   Sept. 30,  Dec. 31,
                                             2007       2007       2006

SmartGrowth Loans
  Consumer                                 $  84,902  $  80,538  $  67,479
  Commercial                                 171,414    159,346    141,863
  Home Equity                                 53,895     52,094     52,927
  Alternative Mortgage Loans                  85,463     84,338     83,515
                                           ---------  ---------  ---------
Total SmartGrowth Loans                      395,674    376,316    345,784
 Mortgage Loans (owner occupied
  conforming)                                189,298    190,755    188,849
                                             584,972    567,071    534,633
Allowance for Loan Losses                     (5,261)    (5,083)    (4,868)
                                           ---------  ---------  ---------
Loans Receivable, Net                        579,711    561,988    529,765

Cash and Securities                          102,032    109,657    122,056
Goodwill and Other Intangibles                 3,796      3,811      3,862
Foreclosed Real Estate                         1,202      1,218      1,143
Other                                         48,689     42,693     38,224
                                           ---------  ---------  ---------
TOTAL ASSETS                               $ 735,430  $ 719,367  $ 695,050
                                           =========  =========  =========

SmartGrowth Deposits
  Checking                                 $ 136,728  $ 134,039  $ 124,290
  Money Market                               102,399     90,944     78,804
  Savings                                     50,029     51,868     50,283
                                           ---------  ---------  ---------
Total Smart Growth Deposits                  289,156    276,851    253,377
Time Deposits                                269,398    278,718    292,511
                                           ---------  ---------  ---------
Total Deposits                               558,554    555,569    545,888

FHLB Advances                                102,436     89,756     79,126
Other Liabilities                              5,750      7,036      5,587
Stockholders' Equity                          68,690     67,006     64,449
                                           ---------  ---------  ---------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY                       $ 735,430  $ 719,367  $ 695,050
                                           =========  =========  =========

Ratio of Equity to Assets                       9.34%      9.31%      9.27%
Tangible Equity to Tangible Assets (2)          8.88%      8.84%      8.77%
Book Value per Common Share                $   31.08  $   30.43  $   29.12
Tangible Book Value Per Common Share (2)   $   29.39  $   28.73  $   27.41
Non-performing Assets/Total Assets              0.71%      0.71%      0.70%
Shares Outstanding (in thousands)              2,210      2,202      2,213

(2) Eliminates the effect of goodwill and the core deposit intangible
    assets and the related accumulated amortization on a tax-effected
    basis. The amount was calculated using the following information.


Stockholders' Equity                       $  68,690  $  67,006  $  64,449
Less goodwill and other Intangible
  assets, net of related income taxes         (3,747)    (3,751)    (3,801)
                                           ---------  ---------  ---------
Tangible Stockholders' Equity              $  64,943  $  63,255  $  60,648
                                           =========  =========  =========

Total Assets                               $ 735,430  $ 719,367  $ 695,050
Less goodwill and other Intangible
  assets, net of related income taxes         (3,747)    (3,751)    (3,801)
                                           ---------  ---------  ---------
Total Tangible Assets                      $ 731,683  $ 715,616  $ 691,249
                                           =========  =========  =========

Contact Information

  • For More Information Contact:
    Patrick Little
    President and CEO
    (337) 560-7151