SOURCE: Teche Holding Company

Teche Holding Company

January 28, 2010 10:37 ET

Teche Holding Company Earns $0.82 Per Share First Quarter of Fiscal Year 2010

FRANKLIN, LA--(Marketwire - January 28, 2010) - Patrick Little, President and CEO of Teche Holding Company (NYSE Amex: TSH), holding company for Teche Federal Bank, today reported on earnings for the Company for the quarter ended December 31, 2009, the first quarter of fiscal 2010.

Earnings for the quarter ended December 31, 2009 amounted to $1.7 million or $0.82 per diluted share, compared to $1.8 million or $0.83 per diluted share for the same quarter in fiscal 2009, a decrease of $0.01 per diluted share, or 1.2%.

"We had solid earnings this quarter on top of record EPS for FY 2009. Provisioning has remained high to strengthen allowances even as charge-offs remain low," said Little.

The Company reported the following key achievements:

--  Diluted EPS for the quarter remained robust at $0.82.
--  Net Charge Offs for the quarter amounted to 0.04% of average loans.
--  Tangible equity increased to 9.07% at December 31, 2009.
--  The Bank's total risk-based capital was a strong 12.70% at December 31,
    2009.
--  Quarterly operating revenue increased 6.1% to $11.4 million from
    $10.8 million in fiscal 2009.
--  SmartGrowth Deposits amount to 65.8% of total deposits, compared to
    62.8% at September 30, 2009 and 57.4% a year ago. SmartGrowth Deposits in
    the past twelve months increased $41.1 million or 12.2%.
--  SmartGrowth Loans, in the past three months increased 1.5%, or $6.9
    million to $467.2 million, from $460.3 million at September 30, 2009.
    SmartGrowth Loans in the past twelve months increased $23.1 million or
    5.2%.
--  Quarterly Dividends increased to $0.355 per share compared to $0.35 per
    share for the quarter ended December 31, 2008, an increase of 1.4%.
    

Asset Quality

Non-performing assets totaled $11.9 million, or 1.58% of total assets, at December 31, 2009, compared to $9.1 million, or 1.19% of total assets at September 30, 2009, and $7.1 million, or 0.93% of total assets, a year ago. Non-performing assets consist of non-accrual loans, accruing loans 90 days or more past due and other real estate owned.

The following table sets forth asset quality ratios for each of the past five quarters:

                               Dec '09  Sep '09  Jun '09  Mar '09  Dec '08
                               -------  -------  -------  -------  -------
Net Charge-offs/Average Loans     0.04%    0.22%    0.03%    0.03%    0.01%
ALLL/NPLs                        71.60%   95.44%   74.30%   84.60%   87.00%
ALLL/NPAs                        64.83%   74.86%   68.00%   77.80%   78.80%
ALLL/Loans                        1.29%    1.14%    1.10%    1.05%    0.93%
Non-Accrual Loans/Loans           1.59%    1.02%    1.07%    0.84%    0.81%
NPAs/Assets                       1.58%    1.19%    1.27%    1.05%    0.93%

Net charge-offs for the quarter were $0.3 million, or 0.04% of average loans, compared to $0.1 million or 0.01% of average loans for the same period a year ago.

The allowance for loan losses was 1.29% of total loans, or $7.8 million, at December 31, 2009 compared to 0.93% of total loans, or $5.6 million at December 31, 2008 and 1.14% of total loans, or $6.8 million at September 30, 2009.

The following table sets forth the allowance for loan loss calculations for each of the past 5 quarters.

(in 000's)                          Dec '09 Sep '09 Jun '09 Mar '09 Dec '08
                                    ------- ------- ------- ------- -------
Beginning ALLL                      $ 6,806 $ 6,836 $ 6,478 $ 5,631 $ 5,545
Provision for Loan Losses             1,196   1,286     550   1,035     155
Net Charge-offs                         258   1,316     192     188      69
Ending ALLL                           7,744 $ 6,806 $ 6,836 $ 6,478 $ 5,631

"During the quarter the Company recorded a loan loss provision of $1.2 million," said Little. "The provision was due primarily to two credit relationships involving commercial real estate loans totaling approximately $7.5 million at December 31, 2009 (of which $5.6 million is not included in Non-Performing Assets as of December 31, 2009). Based on management's analysis of certain credit characteristics of these loans, management believes that the full collection of principal and interest on these loans is not probable."

Operating Revenue

Operating Revenue for the quarter, consisting of net interest income (before provisions for loan losses) plus non-interest income, amounted to $11.4 million, an increase of 6.1% or $0.7 million, compared to $10.8 million for the same period in fiscal 2008.

The table below reflects Teche's operating revenues in millions over the past five quarters:

Operating Revenue                   Dec '09 Sep '09 Jun '09 Mar '09 Dec '08
                                    ------- ------- ------- ------- -------
Net Interest Income                 $   7.4 $   7.5 $   7.6 $   7.1 $   6.8
Non Interest Income                     4.0     4.2     4.0     4.1     4.0
                                    ------- ------- ------- ------- -------
Operating Revenue                   $  11.4 $  11.7 $  11.6 $  11.2 $  10.8
                                    ======= ======= ======= ======= =======

Net Interest Income

Net interest income for the three months ended December 31, 2009 amounted to $7.4 million compared to $6.8 million for the quarter ended December 31, 2008, an increase of 8.7%, or $0.6 million primarily due to a decrease in the cost of interest bearing deposits.

Net Interest Margin and Spread

                               Dec '09  Sep '09  Jun '09  Mar '09  Dec '08
                               -------  -------  -------  -------  -------
Yield on Earning Assets           6.01%    6.01%    6.07%    6.11%    6.31%
Cost of Interest Bearing
 Liabilities                      1.99%    2.12%    2.22%    2.47%    2.77%
Spread                            4.02%    3.88%    3.85%    3.64%    3.54%
Net Interest Margin               4.26%    4.14%    4.12%    3.92%    3.85%

Net interest margin amounted to 4.26% for the three-month period ended December 31, 2009; compared to 3.85% for the three-months ended December 31, 2008. The increase was primarily due to a decrease in the cost of interest bearing deposits.

Spread amounted to 4.02% for the three month period ended December 31, 2009, compared to 3.49% for the same period in the previous year. Compared to the same quarter last year, average yield on earnings assets decreased 30 basis points from 6.31% to 6.01%, while average cost of funds decreased 78 basis points from 2.77% to 1.99%.

"Our increased net interest income this quarter compared to fiscal 2009 is the result of our focus in SmartGrowth Deposits and Loans," said Little. "The result has been higher margin, higher spread and higher net interest income."

Non Interest Income

Non-interest income decreased to $4.0 million for the quarter from $4.2 million in the linked quarter and $4.0 million a year ago. This amounted to 2.11% of average assets for the quarter, compared to 2.16% for the linked quarter and 2.05% a year ago. Deposit fees comprised 91.9% of non-interest income for the quarter, compared to 91.9% for the linked quarter and 91.8% a year ago.

Non-interest income amounted to 35.1% of operating income for the quarter ended December 31, 2009, compared to 36.6% for the three months ended December 31, 2008 and to 36.1% for the linked quarter.

Non Interest Expense

For the quarter, non-interest expense was $7.6 million or 4.0% of average assets, compared to the linked quarter of $7.9 million or 4.03% of average assets, a decrease of 0.03%, primarily due to compensation and occupancy expenses. Compared to the same quarter in fiscal 2009, non-interest expense remained relatively stable.

Net Income

"The bottom line is that our net income has been consistent and substantial for the past five quarters," said Little.

Since 2003, the Company has increased dividends for seven consecutive years and on December 31, 2009 paid a $0.355 per share quarterly dividend, its fifty-ninth consecutive. Based on the closing price of the Company's common stock on December 31, 2009 of $31.71, the annualized dividend yield was 4.5%.

                               Dec '09  Sep '09  Jun '09  Mar '09  Dec '08
                               -------  -------  -------  -------  -------
Net Income                     $ 1,733  $ 1,983  $ 1,733  $ 1,656  $ 1,764
Dividends Declared Per Share   $ 0.355  $ 0.355  $  0.35  $  0.35  $  0.35
Basic Earnings Per Common
 Share                         $  0.83  $  0.95  $  0.82  $  0.78  $  0.83
Diluted Earnings Per Common
 Share                         $  0.82  $  0.94  $  0.81  $  0.78  $  0.83
Annualized Return on Avg.
 Assets                           0.91%    1.01%    0.88%    0.85%    0.92%
Annualized Return on Avg.
 Equity                           9.37%   10.91%    9.55%    9.24%   10.37%
Annualized Return on Avg.
 Tangible Equity                  9.91%   11.53%   10.11%    9.79%   11.00%

Capital

                               Dec '09  Sep '09  Jun '09  Mar '09  Dec '08
                               -------  -------  -------  -------  -------
Ratio of Equity to Assets         9.55%    9.34%    8.87%    8.81%    9.03%
Tangible Equity Ratio (2)         9.07%    8.90%    8.44%    8.38%    8.59%
Risk-Based Capital Ratio         12.70%   12.72%   12.15%   11.98%   12.43%
Book Value per Common Share    $ 34.49  $ 34.09  $ 33.43  $ 33.08  $ 32.72
Tangible Book Value Per Common
 Share                         $ 32.74  $ 32.33  $ 31.67  $ 31.33  $ 31.00

"Tangible Equity capital has increased for each the past three quarters," said Little, "and book value per share continues to increase."

Total risk-based capital amounted to 12.70% compared to 12.72% at September 30, 2009 and 12.43% at December 31, 2008.

Loan Growth

                          Dec '09   Sep '09   Jun '09   Mar '09   Dec '08
                          --------- --------- --------- --------- ---------
SmartGrowth Loans
  Consumer                $ 109,899 $ 108,013 $ 106,563 $ 104,524 $ 102,438
  Commercial                213,505   210,201   209,091   204,973   195,754
  Home Equity                57,373    58,348    58,216    57,852    57,720
  SmartMortgages             86,462    83,775    88,200    88,305    88,181
                          --------- --------- --------- --------- ---------
Total SmartGrowth Loans     467,239   460,337   462,070   455,654   444,093
 Mortgage Loans (owner
  occupied conforming)      135,048   134,996   156,759   157,954   160,410
                          --------- --------- --------- --------- ---------
Total Loans               $ 602,287 $ 595,333 $ 618,829 $ 613,608 $ 604,503

Three Month Growth. Gross loans receivable increased to $602.3 million at December 31, 2009, from $595.3 million at September 30, 2009, a linked quarter increase of $7.0 million, or 1.2%. SmartGrowth Loans, consisting of commercial loans, home equity loans, SmartMortgage loans and consumer loans, were $467.2 million, or 77.6% of total loans at December 31, 2009, compared to $460.3 million, or 77.3% at September 30, 2009, a three month increase of $6.9 million, or 1.5%.

Commercial loan balances at December 31, 2009 amounted to $213.5 million, compared to $210.2 million at September 30, 2009, a three month increase of $3.3 million or 1.6%. Consumer loan balances at December 31, 2009 amounted to $109.9 million, compared to $108.0 million at September 30, 2009, a linked quarter increase of $1.9 million, or 1.7%.

Twelve Month Growth. Gross loans receivable decreased to $602.3 million at December 31, 2009 from $604.5 million at December 31, 2008 a twelve month decrease of $2.2 million, or 0.4%. SmartGrowth Loans increased to $467.2 million at December 31, 2009, from $444.1 million at December 31, 2008, a twelve month increase of $23.1 million, or 5.2%.

Commercial loan balances at December 31, 2009 amounted to $213.5 million, compared to $195.8 million at December 31, 2008 a twelve month increase of $17.8 million, or 9.1%. Consumer loan balances at December 31, 2009 amounted to $109.9 million, a twelve month increase of $7.5 million, or 7.3%.

Deposit Growth
                          Dec '09   Sep '09   Jun '09   Mar '09   Dec '08
                          --------- --------- --------- --------- ---------
SmartGrowth Deposits
  Checking                $ 170,552 $ 165,796 $ 168,733 $ 175,477 $ 158,742
  Money Market               80,034    95,461   108,668   120,865   121,621
  Savings                   128,254   106,479    93,485    78,944    57,387
                          --------- --------- --------- --------- ---------
Total SmartGrowth
 Deposits                   378,840   367,736   370,886   375,286   337,750
Time Deposits               196,651   217,733   234,556   236,403   251,032
                          --------- --------- --------- --------- ---------
Total Deposits            $ 575,491 $ 585,469 $ 605,442 $ 611,689 $ 588,782

"Our SmartGrowth deposits increased both on a linked-quarter basis and over the past year and our cost of interest bearing liabilities decreased by 78 basis points," said Little. "This is consistent with our long-term SmartGrowth strategy."

Three Month Growth. Total deposits decreased to $575.5 million at December 31, 2009, from $585.5 million at September 30, 2009, a linked quarter decrease of $10.0 million or 1.7%. The Company's SmartGrowth Deposit Accounts, consisting of checking accounts, money market accounts, and savings accounts, had solid growth. Total SmartGrowth Deposits grew $11.1 million to $378.8 million or 3.0% at December 31, 2009, from $367.7 million at September 30, 2009.

Checking account balances at December 31, 2009 increased $4.8 million, or 2.9%, to $170.6 million from $165.8 million at September 30, 2009.

Twelve Month Growth. Total Deposits decreased to $575.5 million at December 31, 2009, from $588.8 million at December 31, 2008, a twelve month decrease of $13.3 million, or 2.3%. Total SmartGrowth Deposits grew $41.1 million, or 12.2% from $337.8 million at December 31, 2008.

SmartGrowth Deposits amounted to 65.8% of total deposits as of December 31, 2009 compared to 57.4% at December 31, 2008.

Checking account balances at December 31, 2009 increased 7.4% or $11.8 million in the past 12 months. Checking account balances now account for 29.6% of total deposits compared to 27.0% at December 31, 2008.

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 $757 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 NYSE AMEX.

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
                     -----------------------------------------------------
                       Dec.       Sep.       Jun.       Mar.       Dec.
                       2009       2009       2009       2009       2008
                     ---------  ---------  ---------  ---------  ---------
Interest Income      $  10,500  $  10,880  $  11,130  $  11,013  $  11,214
Interest Expense         3,067      3,386      3,583      3,950      4,378
                     ---------  ---------  ---------  ---------  ---------
Net Interest Income      7,433      7,494      7,547      7,063      6,836
Provision for Loan
 Losses                  1,196      1,286        550      1,035        155
                     ---------  ---------  ---------  ---------  ---------
Net Interest Income
 after Provision
  for Loan
   Losses                6,237      6,208      6,997      6,028      6,681
Non Interest Income      4,014      4,225      4,036      4,114      3,952
Non Interest Expense     7,641      7,894      8,204      7,678      7,595
                     ---------  ---------  ---------  ---------  ---------
Income Before Gain
 on Securities and
 Sale of Loans            2,610      2,539      2,829      2,464      3,038
Gain(Loss) on
 Securities                (36)      (183)      (434)        18       (436)
Gain(Loss) on Sale
 of Loans                   --        559         --         --         --
Income Taxes               841        932        662        826        838
                     ---------  ---------  ---------  ---------  ---------
Net Income (loss)    $   1,733  $   1,983  $   1,733  $   1,656  $   1,764
                     =========  =========  =========  =========  =========
Selected Financial
 Data

Dividends Declared
 Per Share           $   0.355  $   0.355  $    0.35  $    0.35  $    0.35
Basic Earnings Per
 Common Share        $    0.83  $    0.95  $    0.82  $    0.78  $    0.83
Diluted Earnings Per
 Common Share        $    0.82  $    0.94  $    0.81  $    0.78  $    0.83
Annualized Return on
 Avg. Assets              0.91%      1.01%      0.88%      0.85%      0.92%
Annualized Return on
 Avg. Equity              9.37%     10.91%      9.55%      9.24%     10.37%
Annualized Return on
 Avg.
 Tangible Equity (1)      9.91%     11.53%     10.11%      9.79%     11.00%
Yield on Interest
 Earning Assets           6.01%      6.01%      6.07%      6.11%      6.26%
Cost of Interest
 Bearing Liabilities      1.99%      2.12%      2.22%      2.47%      2.77%
Spread                    4.02%      3.88%      3.85%      3.64%      3.49%
Net Interest Margin       4.26%      4.14%      4.12%      3.92%      3.82%
Non-Interest
 Income/Avg. Assets       2.11%      2.16%      2.04%      2.12%      2.05%
Non-Interest
 Expense/Avg. Assets      4.01%      4.03%      4.15%      3.94%      3.94%
Quarterly Net
 Charge-offs/Avg.
 Loans                    0.04%      0.22%      0.03%      0.03%      0.01%
Weighted avg. shares
 Outstanding
    Basic                2,098      2,096      2,107      2,118      2,118
    Diluted              2,116      2,117      2,125      2,128      2,128
AVERAGE BALANCE
 SHEET DATA

Total Assets         $ 761,312  $ 784,058  $ 790,499  $ 780,054  $ 770,227
Earning assets       $ 698,268  $ 724,678  $ 733,368  $ 720,998  $ 716,127
Loans                $ 599,115  $ 608,769  $ 615,616  $ 606,951  $ 601,355
Interest-bearing
 deposits            $ 512,049  $ 534,850  $ 538,403  $ 532,033  $ 528,575
Total deposits       $ 576,534  $ 600,339  $ 604,681  $ 596,291  $ 596,881
Total stockholders'
 equity              $  73,977  $  72,723  $  72,568  $  71,689  $  68,057

(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.

Average
 Stockholders'
 Equity              $  73,922  $  72,723  $  72,568  $  71,689  $  68,057
Less average
 goodwill and other
 intangible assets,
 net of related
  income taxes           3,687      3,694      3,703      3,708      3,715
Average Tangible
 Equity              $  70,235  $  69,029  $  68,865  $  67,981  $  64,342
                     =========  =========  =========  =========  =========

Net Income               1,733  $   1,983  $   1,733  $   1,656  $   1,764
Plus Amortization of
 core deposit
 intangibles, net of
  related income
  taxes                      7          7          7          7          7
                     ---------  ---------  ---------  ---------  ---------
Net Income, as
 adjusted            $   1,740  $   1,990  $   1,740  $   1,663  $   1,771
                     =========  =========  =========  =========  =========



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

                        Dec.      Sep.       Jun.       Mar.       Dec.
                        2009      2009       2009       2009       2008
                     ---------  ---------  ---------  ---------  ---------
SmartGrowth Loans
  Consumer           $ 109,899  $ 108,013  $ 106,563  $ 104,524  $ 102,438
  Commercial           213,505    210,201    209,091    204,973    195,754
  Home Equity           57,373     58,348     58,216     57,852     57,720
  SmartMortgage
   Loans                86,462     83,775     88,200     88,305     88,181
                     ---------  ---------  ---------  ---------  ---------
Total SmartGrowth
 Loans                 467,239    460,337    462,070    455,654    444,093
Mortgage Loans
 (owner occupied
 conforming)           135,048    134,996    156,759    157,954    160,410
                     ---------  ---------  ---------  ---------  ---------
                       602,287    595,333    618,829    613,608    604,503
Allowance for Loan
 Losses                 -7,744     -6,806     -6,836     -6,478     -5,631
                     ---------  ---------  ---------  ---------  ---------
Loans Receivable,
 Net                   594,543    588,527    611,993    607,130    598,872

Cash and Securities    108,282    125,058    127,441    139,149    120,235
Goodwill and Other
 Intangibles             3,707      3,715      3,723      3,734      3,745
Foreclosed Real
 Estate                  1,128      1,953        604        672        672
Other                   49,604     45,818     45,752     44,811     44,094
                     ---------  ---------  ---------  ---------  ---------
TOTAL ASSETS         $ 757,264  $ 765,071  $ 789,513  $ 795,496  $ 767,618
                     =========  =========  =========  =========  =========

SmartGrowth Deposits
  Checking           $ 170,552  $ 165,796  $ 168,733  $ 175,477  $ 158,742
  Money Market          80,034     95,461    108,668    120,865    121,621
  Savings              128,254    106,479     93,485     78,944     57,387
                     ---------  ---------  ---------  ---------  ---------
Total Smart Growth
 Deposits              378,840    367,736    370,886    375,286    337,750
Time Deposits          196,651    217,733    234,556    236,403    251,032
                     ---------  ---------  ---------  ---------  ---------
Total Deposits         575,491    585,469    605,442    611,689    588,782

FHLB Advances          103,451    100,628    106,890    107,089    103,491
Other Liabilities        6,000      7,490      7,129      6,656      6,013
Stockholders' Equity    72,322     71,484     70,052     70,062     69,332
                     ---------  ---------  ---------  ---------  ---------
TOTAL LIABILITIES
 AND STOCKHOLDERS'
 EQUITY              $ 757,264  $ 765,071  $ 789,513  $ 795,496  $ 767,618
                     =========  =========  =========  =========  =========

Ratio of Equity to
 Assets                   9.55%      9.34%      8.87%      8.81%      9.03%
Tangible Equity
 Ratio (2)                9.07%      8.90%      8.44%      8.38%      8.59%
Risk-Based Capital
 Ratio                   12.70%     12.72%     12.15%     11.98%     12.43%
Book Value per
 Common Share        $   34.49  $   34.09  $   33.43  $   33.08  $   32.72
Tangible Book Value
 Per Common Share(2) $   32.74  $   32.33  $   31.67  $   31.33  $   31.00
Non-performing
 Assets/Total Assets      1.58%      1.19%      1.27%      1.05%      0.93%
Shares Outstanding
 (in thousands)          2,097      2,097      2,095      2,118      2,116

The amount was calculated using
 the following information:

Stockholders' Equity $  72,322  $  71,484  $  70,052  $  70,062  $  69,332
Less goodwill and
 other Intangible
 assets, net of
 related income taxes   -3,687     -3,692     -3,697     -3,704     -3,712
                     ---------  ---------  ---------  ---------  ---------
Tangible Stockholders'
 Equity                 68,365  $  67,792  $  66,355  $  66,358  $  65,620
                     =========  =========  =========  =========  =========

Total Assets         $ 757,264  $ 765,071  $ 789,513  $ 795,496  $ 767,619
Less goodwill and
 other Intangible
 assets, net of
 related income taxes   -3,687     -3,692     -3,697     -3,704     -3,712
                     ---------  ---------  ---------  ---------  ---------
Total Tangible
 Assets              $ 753,577  $ 761,379  $ 785,816  $ 791,792  $ 763,907
                     =========  =========  =========  =========  =========



Quarter-End Loan
 Data                                                 90 Days +  90 Days +
                       Total     Charge-    Charge-      Non        Non
December 31, 2009      Loans      Offs       Offs      Accrual    Accrual
                      Dollars    Dollars  Percentage   Dollars   Percentage
                     ---------  ---------  ---------  ---------- ---------
Real Estate Loans
  Construction       $  15,716  $       3       0.02% $       54      0.34%
  Permanent, Secured
   by:
    1-4 Dwelling Units:
      Revolving, Open-End
       Loans            18,120         31       0.17%        119      0.66%
      All Other
       Secured by
        First Liens     305,083          7      0.00%       5,626     1.84%
       Secured by
        Junior Liens    13,237         38       0.29%        135      1.02%
  Multifamily (5+
   Dwelling Units)      26,337         (1)      0.00%      1,707      6.48%
  Nonresidential
   Property (Except
   Land)                91,947          0       0.00%      1,565      1.70%
  Land                  40,712          0       0.00%        965      2.37%
Subtotal - Real
 Estate Loans        $ 511,152  $      78       0.02% $   10,171      1.99%
                     ---------  ---------  ---------  ---------- ---------

Non-Real Estate
 Loans:
  Commercial Loans      29,984         82       0.27%          7      0.02%
  Consumer Loans:
      Loans on
       Deposits          7,558          6       0.08%        149      1.97%
      Auto Loans         3,123          5       0.16%         30      0.96%
      Mobile Home
       Loans            40,862         85       0.21%        357      0.87%
      Other              9,608          2       0.01%         24      0.25%
                     ---------  ---------             ----------
 Subtotal - Non Real
  Estate Loans       $  91,135  $     180       0.20% $      567      0.62%
                     ---------  ---------  ---------  ---------- ---------

Gross Loans          $ 602,287  $     258       0.04% $   10,738      1.78%
                     =========  =========             ==========

Non-accruals         $   9,589
90 + Days Past Due       1,148
OREO & Foreclosed        1,208
                     ---------
  Nonperforming
   Assets            $  11,945
                     =========

NPAs/Assets               1.58%
NPAs/(Loans + OREO)       1.98%
LLR/Loans                 1.29%
Net Charge-offs/Loans     0.04%



Quarter-End Loan
 Data                                                 90 Days +  90 Days +
                       Total     Charge-    Charge-      Non        Non
September 30, 2009     Loans      Offs       Offs      Accrual    Accrual
                      Dollars    Dollars  Percentage   Dollars   Percentage
                     ---------  ---------  ---------  ---------- ---------
Real Estate Loans
  Construction       $  21,707  $       0       0.0 % $    1,066      4.91%
  Permanent, Secured
   by:
    1-4 Dwelling Units:
     Revolving, Open-End
      Loans             17,529          0       0.0 %         50      0.29%
      All Other
       Secured by First
        Liens          302,072          4       0.0 %      4,408      1.46%
       Secured by Junior
        Liens           13,882          5      0.04 %         88      0.63%
  Multifamily (5+
   Dwelling Units)      23,921      1,139      4.76 %        324      1.35%
  Nonresidential
   Property (Except
   Land)                91,428         63      0.07 %        371      0.41%
  Land                  34,644          0       0.0 %        388      1.12%
                     ---------  ---------  --------   ---------- ---------
Subtotal - Real
 Estate Loans        $ 505,183  $   1,211      0.24 % $    6,695      1.33%
                     ---------  ---------  --------   ---------- ---------

Non-Real Estate
 Loans:
  Commercial Loans      30,395         96      0.32 %         98      0.32%
  Consumer Loans:
      Loans on
       Deposits          7,779          1      0.01 %         50      0.64%
      Auto Loans         3,044         (5)    (0.16)%         19      0.62%
      Mobile Home
       Loans            40,327          6      0.01 %        266      0.66%
      Other              8,605          7      0.08 %          2      0.02%
                     ---------  ---------  --------   ---------- ---------
Subtotal - Non Real
 Estate Loans        $  90,150  $     105      0.12 % $      435      0.48%
                     ---------  ---------  --------   ---------- ---------

Gross Loans          $ 595,333  $   1,316      0.22 % $    7,130      1.20%
                     =========  =========             ==========

Non-accruals         $   6,048
90 + Days Past Due       1,082
OREO & Foreclosed        1,962
                     ---------
     Nonperforming
      Assets         $   9,092
                     =========


NPAs/Assets               1.19%
NPAs/(Loans + OREO)       1.52%
LLR/Loans                 1.14%
Net Charge-offs/Loans     0.22%



Average Loan
 Balances &
 Yields       12/31/2009 12/31/2009 9/30/2009 9/30/2009  Change    Change
               Balance     Yield    Balance     Yield    Balance   Yield
              ---------- --------  --------- --------  ---------  --------
Real Estate
 Loans
   1-4 Family $  349,819     6.04% $ 362,662     6.12% $ (12,843)    -0.08%
   Commercial    139,403     6.01%   137,729     5.85%     1,674      0.16%
              ----------           ---------           ---------
                 489,222     6.03%   500,391     6.04%   (11,169)    -0.01%

Non-Real
 Estate Loans
   Commercial     29,587     6.49%    29,342     6.44%       245      0.05%
   Consumer       80,306     9.32%    79,036     9.45%     1,270     -0.13%
              ----------           ---------           ---------
                 109,893     8.56%   108,378     8.63%     1,515     -0.07%

              ----------           ---------           ---------
Total All
 Loans        $  599,115     6.50% $ 608,769     6.50% $  (9,654)     0.00%
              ==========           =========           =========


Average Loan
 Balances &
 Yields      12/31/2009 12/31/2009 12/31/2008 12/31/2008 Change    Change
               Balance    Yield     Balance    Yield     Balance   Yield
              ---------- --------  --------- --------  ---------  --------

Real Estate
 Loans
   1-4 Family $  349,819     6.04% $ 371,837     6.39% $ (22,018)    -0.35%
   Commercial    139,403     6.01%   119,505     6.67%    19,898     -0.66%
              ----------           ---------           ---------
                 489,222     6.03%   491,342     6.46%    (2,120)    -0.43%

Non-Real
 Estate Loans
   Commercial     29,587     6.49%    29,500     6.58%        87     -0.09%
   Consumer       80,306     9.32%    74,929     9.24%     5,377      0.08%
              ----------           ---------           ---------
                 109,893     8.56%   104,429     8.49%     5,464      0.07%

              ----------           ---------           ---------
Total All
 Loans        $  599,115     6.50% $ 595,771     6.81% $   3,344     -0.31%
              ==========           =========           =========




Interest-bearing Liabilities:  Linked Quarter Comparison

Average                   12/31/             9/30/
 balances         12/31/   2009      9/30/   2009            Change
                  2009     Avg.      2009    Avg.    Change   Avg. %Balance
                $Balance  Yield   $Balance  Yield   $Balance Yield  Change
                --------- ------  -------- ------  --------  -----  ------
  NOW Accounts  $ 102,103   0.47% $102,756   0.47% $   (653)  0.00%   -0.6%
  Non-interest
   bearing
   Deposits        64,526   0.00%   65,489   0.00%     (963)  0.00%   -1.5%
                --------- ------  -------- ------  --------  -----  ------
     Checking
      Total       166,629   0.29%  168,245   0.29%   (1,616)  0.00%   -1.0%

  Savings
   Accounts       118,486   0.98%   97,036   0.88%   21,450   0.10%   22.1%
  Money Market
   Accounts        86,776   0.40%  103,868   0.55%  (17,092) -0.15%  -16.5%
                --------- ------  -------- ------  --------  -----  ------

  Total Smart
   Growth
   Deposits       371,891   0.53%  369,149   0.52%    2,742   0.01%    0.7%

  Time Deposits   204,684   2.80%  231,190   3.03%  (26,506) -0.23%  -11.5%

  Total Deposits  576,575   1.34%  600,339   1.49%  (23,764) -0.15%   -4.0%

  FHLB Advances   103,400   4.40%  103,328   4.47%       72  -0.07%    0.1%
                                  --------         --------

Total
 Interest-bearing
 liabilities    $ 615,449   1.99% $638,178   2.12% $(22,729) -0.13%   -3.6%
                =========         ========         ========

Non-interest
 bearing
 Deposits       $  64,526   0.00% $ 65,489   0.00% $   (963)  0.00%  - 1.5%


Interest-bearing Liabilities: Prior Year Comparison

                           12/31/          12/31/
Average balances   12/31/   2009  12/31/    2008             Change
                   2009     Avg.   2008     Avg.    Change    Avg. %Balance
                 $Balance  Yield $Balance  Yield   $Balance  Yield  Change
                --------- ------  -------- ------  --------  -----  ------
  NOW Accounts  $ 102,103   0.47% $ 92,918   0.58% $  9,185  -0.11%    9.9%
  Non-interest
   bearing
   Deposits        64,526   0.00%   61,961   0.00%    2,565   0.00%    4.2%
                --------- ------  -------- ------  --------  -----  ------
     Checking
      Total       166,629   0.29%  154,879   0.35%   11,750  -0.06%    7.6%

  Savings
   Accounts       118,486   0.98%   55,794   0.83%   62,692   0.15%  112.4%
  Money Market
   Accounts        86,776   0.40%  123,950   1.92%  (37,174) -1.52%  -30.0%
                --------- ------  -------- ------  --------  -----  ------

  Total Smart
   Growth
   Deposits       371,891   0.53%  334,623   1.01%   37,268  -0.48%   11.1%

  Time Deposits   204,684   2.80%  255,914   3.65%  -51,230  -0.85%  -20.0%

  Total Deposits  576,575   1.34%  590,537   2.15%  (13,962) -0.81%   -2.4%

  FHLB Advances   103,400   4.40%  103,974   4.62%     (574) -0.22%   -0.6%
                ---------         --------         --------

Total
 Interest-bearing
 liabilities    $ 615,449   1.99% $632,550   2.77% $(17,101) -0.78%   -2.7%

Non-interest
 bearing
 Deposits       $  64,526   0.00% $ 61,961   0.00% $  2,565   0.00%    4.1%


Contact Information

  • Contact:
    Patrick Little
    President & CEO
    Teche Holding Company
    (337) 560-7151