SOURCE: Teche Holding Company

Teche Holding Company

January 25, 2011 09:15 ET

Teche First Quarter Earnings up 6.1%

NEW IBERIA, LA--(Marketwire - January 25, 2011) - Teche Holding Company (NYSE 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, 2010, the first quarter of fiscal 2011.

Earnings for the quarter ended December 31, 2010 amounted to $1.8 million or $0.87 per diluted share, compared to $1.7 million or $0.82 per diluted share for the same quarter in fiscal 2010, an increase of $0.05 per diluted share, or 6.1%.

"We had solid earnings this quarter on top of record EPS for FY 2010 and FY 2009," said Little. We are very pleased that both net interest income and non-interest income have remained steady over the past year. Even better, net charge-offs for the second quarter amounted to only 0.08% or 0.32% annualized."

"Two years ago we declined TARP in part because we expected a very challenging regulatory and economic environment in the coming years," said Little. "We did not want to be in a position to be over-capitalized and thus desperate to grow and expand in the midst of higher unemployment and a slower economy. We think we made the right decision."

The Company reported the following key achievements:

--  All capital measures continue to move up, on the strength of solid
    earnings.
--  Tangible equity increased to 9.71% at December 31, 2010.
--  The Bank's total risk-based capital was a strong 13.79% at December 31,
    2010.
--  The ratio of allowance for loan losses to loans increased to a strong
    1.68%.
--  Net Charge Offs for the quarter amounted to 0.08% of average loans.
--  Quarterly operating revenue remained stable at $11.5 million, as
    compared to previous four quarters in fiscal 2010.
--  SmartGrowth Deposits increased 2.7% for the linked quarter and 8.5%
    compared to a year ago. SmartGrowth Deposits amounted to 70.5% of total
    deposits, compared to 69.1% at September 30, 2010 and 65.8% a year ago.
--  Checking Account Balances increased 7.5% compared to the linked quarter
    and 9.2% compared to December 31, 2009.
--  The Average yield on all deposits is 1.01% compared to 1.10% for the
    linked quarter and 1.34% a year ago.

Capital
                          --------  --------  --------  --------  --------
                          Dec '10   Sep '10   Jun '10   Mar '10   Dec '09
                          --------  --------  --------  --------  --------
Stockholders' Equity      $ 76,497  $ 75,513  $ 74,549  $ 73,551  $ 72,322
Ratio of Equity to Assets    10.15%     9.92%     9.74%     9.63%     9.55%
Tangible Equity Ratio (2)     9.71%     9.48%     9.30%     9.20%     9.07%
Risk-Based Capital Ratio     13.79%    13.52%    13.30%    12.91%    12.07%
Book Value per Common
 Share                    $  36.81  $  36.19  $  35.45  $  35.02  $  34.49
Tangible Book Value Per
 Common Share             $  35.04  $  34.43  $  33.70  $  33.27  $  32.74

"One important result of our strong performance over the past two years has been the steady growth in capital," said Little.

The Company's equity is now over 10% total assets, the tangible equity ratio is nearly 10% and the risk-based capital ratio is 13.79%. "Each of the figures represents steady growth in bank capital," said Little.

"Tangible book value per share has increased 7.0%, or $2.30 per share over the past twelve months. We have increased capital and shareholder value the old fashioned way, through earnings. This is quite a contrast compared to those who have taken TARP or pursued other capital raises that have diluted shareholder value," said Little.

Asset Quality

Non-performing assets totaled $17.1 million, or 2.27% of total assets, at December 31, 2010, compared to $15.7 million, or 2.06% of total assets at September 30, 2010, primarily due to one commercial non real estate relationship.. 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 '10  Sep '10  Jun '10  Mar '10  Dec '09
                               -------  -------  -------  -------  -------
Net Charge-offs/Average Loans     0.08%    0.08%    0.05%    0.07%    0.04%

ALLL/NPLs                        66.36%   63.92%   59.29%   52.18%   72.12%
ALLL/NPAs                        58.11%   59.02%   53.62%   47.76%   64.83%
ALLL/Loans                        1.68%    1.55%    1.48%    1.37%    1.29%
Non-Accrual Loans/Loans (Net
 of specific reserves)            1.91%    2.08%    1.96%    2.05%    1.59%
NPAs/Assets (Net of specific
 reserves)                        1.96%    1.88%    1.87%    2.00%    1.58%

Net charge-offs for the quarter were $0.5 million, or 0.08% of average loans, compared to $0.3 million or 0.04% of average loans for the same period a year ago.

The allowance for loan losses was 1.68% of total loans, or $9.9 million, at December 31, 2010 compared to 1.29% of total loans, or $7.7 million at December 31, 2009 and 1.55% of total loans, or $9.3 million at September 30, 2010.

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

                                -------  -------  -------  -------  -------
(in 000's)                      Dec '10  Sep '10  Jun '10  Mar '10  Dec '09
                                -------  -------  -------  -------  -------
Beginning ALLL                  $ 9,256  $ 8,830  $ 8,253  $ 7,744  $ 6,806

Provision for Loan Losses         1,150      900      900      900    1,196

Net Charge-offs                     453      474      323      391      258
Ending ALLL                     $ 9,953  $ 9,256  $ 8,830  $ 8,253  $ 7,744

During the quarter the Company recorded a loan loss provision of $1.15 million primarily due to increased reserves on impaired loans and also increased general reserves due to general economic stress and the related heightened levels of delinquencies and foreclosures. "While prudent banking practices have indicated increasing allowances, our NPAs remain well below peer levels," said Little.

Net Interest Income
                           --------  --------  --------  --------  --------
                           Dec '10   Sep '10   Jun '10   Mar '10   Dec '09
                           --------  --------  --------  --------  --------
Interest Income            $ 10,003  $ 10,163  $ 10,299  $ 10,374  $ 10,500
Interest Expense              2,542     2,728     2,969     2,940     3,067
                           --------  --------  --------  --------  --------
Net Interest Income        $  7,461  $  7,435  $  7,330  $  7,434  $  7,433
                           ========  ========  ========  ========  ========

Net interest income for the three months ended December 31, 2010 amounted to $7.5 million compared to $7.4 million for the quarter ended December 31, 2009, an increase of 0.4%, or $28,000 primarily due to a decrease in rates on interest paying liabilities offset somewhat by a decrease in rates on interest earning assets.

Net Interest Margin and Spread
                           -------   -------   -------   -------   -------
                           Dec '10   Sep '10   Jun '10   Mar '10   Dec '09
                           -------   -------   -------   -------   -------
Yield on Earning Assets       5.75%     5.84%     5.87%     5.99%     6.01%
Cost of Interest Bearing
 Liabilities                  1.69%     1.79%     1.93%     1.91%     1.99%
Spread                        4.06%     4.05%     3.94%     4.08%     4.02%
Net Interest Margin           4.29%     4.27%     4.18%     4.29%     4.26%

Net interest margin amounted to 4.29% for the three-month period ended December 31, 2010; compared to 4.26% for the three-months ended December 31, 2009. The increase was primarily due to lower deposit rates and balances offset somewhat by lower rates and balances on loans.

Spread amounted to 4.06% for the three month period ended December 31, 2010, compared to 4.02% for the same period in the previous year. Compared to the same quarter last year, average yield on earnings assets decreased 26 basis points from 6.01% to 5.75%, while average cost of funds decreased 30 basis points from 1.99% to 1.69%.

"Our increase in net interest income this quarter compared to fiscal 2010 is the result of our principled approach to lending and deposit gathering," said Little. "The result has been two years of record earnings."

Operating Revenue

Operating Revenue for the quarter, consisting of net interest income (before provisions for loan losses) plus non-interest income, amounted to $11.5 million, consistent with the four preceding quarters.

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

                                -------  -------  -------  -------  -------
Operating Revenue               Dec '10  Sep '10  Jun '10  Mar '10  Dec '09
                                -------  -------  -------  -------  -------
Net Interest Income             $   7.5  $   7.4  $   7.3  $   7.4  $   7.4
Non Interest Income                 4.0      4.0      4.2      4.0      4.0
                                -------  -------  -------  -------  -------
Operating Revenue               $  11.5  $  11.4  $  11.5  $  11.4  $  11.4
                                =======  =======  =======  =======  =======

Non Interest Income

Non-interest income remained stable at $4.0 million for the quarter compared to $4.0 million in the linked quarter and $4.0 million a year ago. This amounted to 2.09% of average assets for the quarter, compared to 2.08% for the linked quarter and 2.11% a year ago. Deposit fees comprised 89.5% of non-interest income for the quarter, compared to 90.7% for the linked quarter and 91.9% a year ago.

Non-interest income amounted to 34.7% of operating income for the quarter ended December 31, 2010, compared to 35.1% for the three months ended December 31, 2009 and to 34.8% for the linked quarter.

Non Interest Expense

For the quarter, non-interest expense was $7.6 million or 3.99% of average assets, compared to the linked quarter of $7.7 million or 4.06% of average assets, a decrease of 1.9%, primarily due to lower occupancy/equipment expenses and lower real estate owned expenses offset somewhat by increased marketing and professional services expenses. Compared to the same quarter in fiscal 2009, non-interest expense remained relatively the same.

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 eight consecutive years and on December 31, 2010 paid a $0.355 per share quarterly dividend, its sixty-second consecutive. Based on the closing price of the Company's common stock on December 31, 2010 of $34.83, the annualized dividend yield was 4.08%.

                               -------  -------  -------  -------  -------
                               Dec '10  Sep '10  Jun '10  Mar '10  Dec '09
                               -------  -------  -------  -------  -------
Net Income                     $ 1,824  $ 1,847  $ 1,821  $ 1,700  $ 1,733
Dividends Declared Per Share   $ 0.355  $ 0.355  $ 0.355  $ 0.355  $ 0.355
Basic Earnings Per Common
 Share                         $  0.88  $  0.89  $  0.87  $  0.81  $  0.83
Diluted Earnings Per Common
 Share                         $  0.87  $  0.88  $  0.87  $  0.80  $  0.82
Annualized Return on Avg.
 Assets                           0.96%    0.97%    0.95%    0.89%    0.91%
Annualized Return on Avg.
 Equity                           9.36%    9.61%    9.60%    9.14%    9.37%
Annualized Return on Avg.
 Tangible Equity                  9.84%   10.12%   10.12%    9.64%    9.90%

"A key advantage of our approach over the past several years is our dividends for shareholders," said Little. "Our FY2010 dividend was $1.42, an increase over FY2009. TARP banks are generally not allowed to increase their dividends. Our dividend yield has been solid with a sustainable payout ratio of 40.2%," said Little.

Loans
                          --------- --------- --------- --------- ---------
                           Dec '10   Sep '10   Jun '10   Mar '10   Dec '09
                          --------- --------- --------- --------- ---------
SmartGrowth Loans
  Consumer                $ 111,139 $ 111,571 $ 110,855 $ 110,438 $ 109,899
  Commercial                208,797   212,933   212,762   212,485   213,505
  Home Equity                52,182    53,405    55,860    57,443    57,373
  SmartMortgages             89,389    86,959    86,624    86,677    86,462
                          --------- --------- --------- --------- ---------
Total SmartGrowth Loans     461,507   464,868   466,101   467,043   467,239
Mortgage Loans (owner
 occupied conforming)       132,224   131,023   131,590   133,478   135,048
                          --------- --------- --------- --------- ---------
Total Loans               $ 593,731 $ 595,891 $ 597,691 $ 600,521 $ 602,287

Gross loans receivable decreased to $593.7 million at December 31, 2010, from $595.8 million at September 30, 2010, a linked quarter decrease of $2.2 million, or 0.4%. SmartGrowth Loans, consisting of commercial loans, home equity loans, SmartMortgage loans and consumer loans, were $461.5 million, or 77.7% of total loans at December 31, 2010, compared to $464.9 million, or 78.0% at September 30, 2010, a three month decrease of $3.4 million, or 0.7%.

Commercial loan balances at December 31, 2010 amounted to $208.8 million, compared to $212.9 million at September 30, 2010, a three month decrease of $4.1 million or 1.9%. Consumer loan balances at December 31, 2010 amounted to $111.1 million, compared to $111.6 million at September 30, 2010, a linked quarter decrease of $0.4 million, or 0.4%.

Gross loans receivable decreased to $593.7 million at December 31, 2010 from $602.3 million at December 31, 2009 a twelve month decrease of $8.6 million, or 1.4%. SmartGrowth Loans decreased to $461.5 million at December 31, 2010, from $467.2 million at December 31, 2009, a twelve month decrease of $5.7 million, or 1.2%.

Commercial loan balances at December 31, 2010 amounted to $208.8 million, compared to $213.5 million at December 31, 2009 a twelve month decrease of $4.7 million, or 2.2%. Consumer loan balances at December 31, 2010 amounted to $111.1 million, compared to $109.9 million at December 31, 2009 a twelve month increase of $1.2 million, or 1.1%.

Deposits
                          --------- --------- --------- --------- ---------
                           Dec '10   Sep '10   Jun '10   Mar '10   Dec '09
                          --------- --------- --------- --------- ---------
SmartGrowth Deposits
  Checking                $ 186,240 $ 173,206 $ 169,396 $ 177,174 $ 170,552
  Money Market               55,557    60,246    62,643    68,763    80,034
  Savings                   169,326   166,734   160,567   149,233   128,254
                          --------- --------- --------- --------- ---------
Total SmartGrowth
 Deposits                 $ 411,123 $ 400,186 $ 392,606 $ 395,170 $ 378,840
Time Deposits               172,316   179,169   185,496   191,573   196,651
                          --------- --------- --------- --------- ---------
Total Deposits            $ 583,439 $ 579,355 $ 578,102 $ 586,743 $ 575,491

"Our SmartGrowth deposits increased both on a linked-quarter basis and over the past year and our cost of interest bearing liabilities decreased by 30 basis points," said Little. "This is consistent with our long-term SmartGrowth strategy."

Three Month Growth. Total deposits increased to $583.4 million at December 31, 2010, from $579.4 million at September 30, 2010, a linked quarter increase of $4.1 million or 0.7%. The Company's SmartGrowth Deposit Accounts, consisting of checking accounts, money market accounts, and savings accounts, had solid growth. Total SmartGrowth Deposits increased $10.9 million to $411.1 million or 2.7% at December 31, 2010, from $400.2 million at September 30, 2010.

Checking account balances at December 31, 2010 increased $13.0 million, or 7.5%, to $186.2 million from $173.2 million at September 30, 2010.

Twelve Month Growth. Total Deposits increased to $583.4 million at December 31, 2010, from $575.5 million at December 31, 2009, a twelve month increase of $7.9 million, or 1.4%. Total SmartGrowth Deposits increased $32.3 million, or 8.5% from $378.8 million at December 31, 2009.

SmartGrowth Deposits amounted to 70.5% of total deposits as of December 31, 2010 compared to 65.8% at December 31, 2009.

Checking account balances at December 31, 2010 increased 9.2% or $15.7 million in the past 12 months. Checking account balances now account for 31.9% of total deposits compared to 29.6% at December 31, 2009.

Teche Holding Company is the parent company of Teche Federal Bank, which operates nineteen 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 $753 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.
                        2010       2010       2010       2010       2009
                     ---------  ---------  ---------  ---------  ---------
Interest Income      $  10,003  $  10,163  $  10,299  $  10,374  $  10,500
Interest Expense         2,542      2,728      2,969      2,940      3,067
                     ---------  ---------  ---------  ---------  ---------
Net Interest Income      7,461      7,435      7,330      7,434      7,433
Provision for Loan
 Losses                  1,150        900        900        900      1,196
                     ---------  ---------  ---------  ---------  ---------
Net Interest Income
 after Provision for
 Loan Losses             6,311      6,535      6,430      6,534      6,237
Non Interest Income      3,972      3,964      4,153      3,956      4,014
Non Interest Expense     7,583      7,732      7,877      7,980      7,641
                     ---------  ---------  ---------  ---------  ---------
Income Before Gain
 on Securities and
 Sale of Loans           2,700      2,767      2,706      2,510      2,610
Gain (Loss) on
 Securities                 --        (95)        --         (8)       (36)
Gain (Loss) on
 Sale of Loans               9          6          7         --         --
Income Taxes               885        831        892        802        841
                     ---------  ---------  ---------  ---------  ---------
Net Income           $   1,824  $   1,847  $   1,821  $   1,700  $   1,733
                     =========  =========  =========  =========  =========
Selected Financial
 Data

Dividends Declared   ---------  ---------  ---------  ---------  ---------
 Per Share           $   0.355  $   0.355  $   0.355  $   0.355  $   0.355
Basic Earnings
 Per Common Share    $    0.88  $    0.89  $    0.87  $    0.81  $    0.83
Diluted Earnings
 Per Common Share    $    0.87  $    0.88  $    0.87  $    0.80  $    0.82
Annualized Return on
 Avg. Assets              0.96%      0.97%      0.95%      0.89%      0.91%
Annualized Return on
 Avg. Equity              9.36%      9.61%      9.60%      9.14%      9.37%
Annualized Return on
 Avg. Tangible
 Equity (1)               9.84%     10.12%     10.12%      9.64%      9.90%
Yield on Interest
 Earning Assets           5.75%      5.84%      5.87%      5.99%      6.01%
Cost of Interest
 Bearing Liabilities      1.69%      1.79%      1.93%      1.91%      1.99%
Spread                    4.06%      4.05%      3.94%      4.08%      4.02%
Net Interest Margin       4.29%      4.27%      4.18%      4.29%      4.26%
Non-Interest
 Income/Avg. Assets       2.09%      2.08%      2.16%      2.08%      2.11%
Non-Interest
 Expense/Avg. Assets      3.99%      4.06%      4.11%      4.20%      4.01%
Quarterly Net
 Charge-offs/Avg.
 Loans                    0.08%      0.08%      0.05%      0.06%      0.04%
Weighted avg. shares
 Outstanding
    Basic                2,068      2,074      2,083      2,100      2,098
    Diluted              2,089      2,092      2,103      2,118      2,116
AVERAGE BALANCE
 SHEET DATA
                     ---------  ---------  ---------  ---------  ---------
Total Assets         $ 759,858  $ 761,191  $ 767,379  $ 759,908  $ 761,312
Earning assets       $ 696,304  $ 696,494  $ 701,756  $ 692,527  $ 698,268
Loans                $ 595,547  $ 597,024  $ 599,883  $ 600,554  $ 599,115
Interest-bearing
 deposits            $ 506,887  $ 509,572  $ 515,165  $ 511,521  $ 512,049
Total deposits       $ 579,902  $ 576,373  $ 583,576  $ 576,502  $ 576,534
Total stockholders'
 equity              $  77,923  $  76,855  $  75,859  $  74,416  $  73,977

(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              $  77,923  $  76,855  $  75,859  $  74,416  $  73,977
Less average
 goodwill and other
 intangible assets,
 net of related
 income taxes            3,670      3,673      3,689      3,705      3,687
Average Tangible
 Equity              $  74,253  $  73,182  $  72,170  $  70,711  $  70,290
                     =========  =========  =========  =========  =========

Net Income               1,824      1,847      1,821      1,700      1,733
Plus Amortization of
 core deposit
 intangibles, net of
 related income taxes        3          5          5          5          7
                     ---------  ---------  ---------  ---------  ---------
Net Income,
 as adjusted         $   1,827  $   1,852  $   1,826  $   1,705  $   1,740
                     =========  =========  =========  =========  =========






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

                     Dec. 2010  Sep. 2010  Jun. 2010  Mar. 2010  Dec. 2009
                     ---------  ---------  ---------  ---------  ---------
SmartGrowth Loans
  Consumer           $ 111,139  $ 111,571  $ 110,855  $ 110,438  $ 109,899
  Commercial           208,797    212,933    212,762    212,485    213,505
  Home Equity           52,182     53,405     55,860     57,443     57,373
  SmartMortgage
   Loans                89,389     86,959     86,624     86,677     86,462
                     ---------  ---------  ---------  ---------  ---------
Total SmartGrowth
 Loans                 461,507    464,868    466,101    467,043    467,239
Mortgage Loans
 (owner occupied
 conforming)           132,224    131,023    131,590    133,478    135,048
                     ---------  ---------  ---------  ---------  ---------
                       593,731    595,891    597,691    600,521    602,287
Allowance for Loan
 Losses                 -9,953     -9,256     -8,830     -8,253     -7,744
                     ---------  ---------  ---------  ---------  ---------
Loans Receivable, Net  583,778    586,635    588,861    592,268    594,543

Cash and Securities    110,405    115,217    121,783    116,367    108,282
Goodwill and Other
 Intangibles             3,682      3,687      3,692      3,700      3,707
Foreclosed Real
 Estate                  2,079      1,181      1,547      1,426      1,128
Other                   53,757     54,804     49,601     49,874     49,604
                     ---------  ---------  ---------  ---------  ---------
TOTAL ASSETS         $ 753,701  $ 761,524  $ 765,484  $ 763,635  $ 757,264
                     =========  =========  =========  =========  =========

SmartGrowth Deposits
  Checking           $ 186,240  $ 173,206  $ 169,396  $ 177,174  $ 170,552
  Money Market          55,557     60,246     62,643     68,763     80,034
  Savings              169,326    166,734    160,567    149,233    128,254
                     ---------  ---------  ---------  ---------  ---------
Total Smart Growth
 Deposits              411,123    400,186    392,606    395,170    378,840
Time Deposits          172,316    179,169    185,496    191,573    196,651
                     ---------  ---------  ---------  ---------  ---------
Total Deposits         583,439    579,355    578,102    586,743    575,491

FHLB Advances           87,756    100,017    106,445     97,857    103,451
Other Liabilities        6,009      6,639      6,388      5,484      6,000
Stockholders' Equity    76,497     75,513     74,549     73,551     72,322
                     ---------  ---------  ---------  ---------  ---------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 753,701  $ 761,524  $ 765,484  $ 763,635  $ 757,264
                     =========  =========  =========  =========  =========

Ratio of Equity to
 Assets                  10.15%      9.92%      9.74%      9.63%      9.55%
Tangible Equity
 Ratio                    9.71%      9.48%      9.30%      9.20%      9.07%
Risk-Based Capital
 Ratio                   13.79%     13.52%     13.30%     12.91%     12.70%
Book Value per
 Common Share        $   36.81  $   36.19  $   35.45  $   35.02  $   34.49
Tangible Book Value
 Per Common Share    $   35.04  $   34.43  $   33.70  $   33.27  $   32.74
Non-performing
 Assets/Total Assets      2.27%      2.06%      2.15%      2.27%      1.58%
ALLL/Loans                1.68%      1.55%      1.48%      1.37%      1.29%
ALLL/NPLs                66.36%     63.92%     59.92%     52.18%     72.12%
Shares Outstanding
 (in thousands)          2,078      2,082      2,091      2,101      2,098

The amount was
 calculated using
 the following
 information:

Stockholders' Equity $  76,497  $  75,513  $  74,549  $  73,551  $  72,322
Less goodwill and
 other Intangible
 assets, net of
 related income
 taxes                  -3,670     -3,673     -3,677     -3,683     -3,687
                     ---------  ---------  ---------  ---------  ---------
Tangible Stockholders'
 Equity              $  72,827  $  71,840  $  70,872  $  69,868  $  68,635
                     =========  =========  =========  =========  =========

Total Assets         $ 753,701  $ 761,524  $ 765,484  $ 763,635  $ 757,264
Less goodwill and
 other Intangible
 assets, net of
 related income
 taxes                  -3,670     -3,673     -3,677     -3,683     -3,687
                     ---------  ---------  ---------  ---------  ---------
Total Tangible
 Assets              $ 750,031  $ 757,851  $ 761,807  $ 759,952  $ 753,577
                     =========  =========  =========  =========  =========




Quarter-End            Total   Charge-   Charge-    90 Days +  90 Days +
Loan Data              Loans    Offs      Offs     Non Accrual Non Accrual
December 31, 2010     Dollars  Dollars Percentage    Dollars   Percentage
                    ------------------------------------------------------
Real Estate Loans
 Construction       $   18,140      --       0.00%  $    1,015        5.59%
 Permanent,
  Secured by:
   1-4 Dwelling
    Units:
     Revolving,
      Open-End
      Loans (HELOC)     18,585      45       0.24%          --        0.00%
     All Other
      Secured by
       First Liens     308,045     325       0.11%       3,678        1.19%
      Secured by
       Junior Liens     10,840      (3)     -0.03%         102        0.94%
   Multifamily (5+
    Dwelling Units)     21,752      --       0.00%         791        3.64%
   Nonresidential
    Property
    (Except Land)       91,411      --       0.00%          --        0.00%
   Land                 39,597      (1)      0.00%       5,478       13.83%
                    ---------- ------- ----------  ----------- -----------
      Consumer          20,076      (1)      0.00%          98        0.49%
                    ---------- ------- ----------  ----------- -----------
      Commercial        19,521      --       0.00%       5,380       27.56%
                    ---------- ------- ----------  ----------- -----------
 Subtotal - Real
  Estate Loans      $  508,370     366       0.07% $    11,064        2.18%
                    ---------- ------- ----------  ----------- -----------

Non-Real Estate
 Loans:
  Commercial Loans      24,948       5       0.02%         898        3.60%
  Consumer Loans:
    Loans on
     Deposits            4,445      (2)     -0.04%           2        0.04%
    Auto Loans           2,684       1       0.04%           7        0.26%
    Mobile Home
     Loans              39,628      72       0.18%         497        1.25%
    Other               13,613      11       0.08%         155        1.14%
                    ---------- ------- ----------  -----------
 Subtotal - Non
  Real Estate Loans     85,318      87       0.10%       1,559        1.83%
                    ---------- ------- ----------  ----------- -----------

Gross Loans         $  593,688     453       0.08% $    12,623        2.13%
                    ========== =======             ===========

Non-accruals            11,324
90 + Days Past Due       1,299
OREO & Foreclosed        2,129
                    ----------
      Nonperforming
       Assets (Net) $   14,752
                    ==========

NPAs/Assets               1.96%
NPAs/(Loans + OREO)       2.48%



Quarter-End            Total   Charge-   Charge-    90 Days +  90 Days +
Loan Data              Loans    Offs      Offs     Non Accrual Non Accrual
September 30, 2010    Dollars  Dollars Percentage    Dollars   Percentage
                    ------------------------------------------------------
Real Estate Loans
 Construction       $   21,130     102       0.48%  $    1,066        5.00%
 Permanent,
  Secured by:
   1-4 Dwelling
    Units:
     Revolving,
      Open-End
      Loans (HELOC)     18,530      51       0.28%          --        0.00%
     All Other
      Secured by
       First Liens     303,796      --       0.00%       4,765        1.57%
      Secured by
       Junior Liens     11,048      (4)     -0.04%          88        0.80%
   Multifamily (5+
    Dwelling Units)     24,357      --       0.00%         886        3.64%
   Nonresidential
    Property
    (Except Land)       85,718     257       0.30%          --        0.00%
   Land                 39,555      23       0.06%       5,440       13.75%
                    ---------- ------- ----------  ----------- -----------
      Consumer          20,044      --       0.00%          58        0.29%
                    ---------- ------- ----------  ----------- -----------
      Commercial        19,511      23       0.12%       5,382       27.58%
                    ---------- ------- ----------  ----------- -----------
 Subtotal - Real
  Estate Loans      $  504,314     429       0.09% $    12,245        2.43%
                    ---------- ------- ----------  ----------- -----------

Non-Real Estate
 Loans:
  Commercial Loans      30,929      --       0.00%          27        0.09%
  Consumer Loans:
    Loans on
     Deposits            4,672       1       0.02%          27        0.58%
    Auto Loans           2,716       3       0.11%           4        0.15%
    Mobile Home
     Loans              40,094      20       0.05%         458        1.14%
      Other             13,375      21       0.16%          90        0.67%
                    ---------- ------- ----------  -----------
 Subtotal - Non
  Real Estate Loans     91,786      45       0.05%         606        0.66%
                    ---------- ------- ----------  ----------- -----------

Gross Loans         $  596,100     474       0.08% $    12,851        2.16%
                    ========== =======             ===========

Non-accruals            12,390
90 + Days Past Due         461
OREO & Foreclosed        1,201
                    ----------
      Nonperforming
       Assets (Net) $   14,052
                    ==========

NPAs/Assets               1.88%
NPAs/(Loans + OREO)       2.40%






Average Loan
 Balances &    12/31/2010 12/31/2010  9/30/2010  9/30/2010  Change  Change
 Yields         Balance     Yield      Balance     Yield    Balance Yield
               -----------------------------------------------------------
Real Estate
 Loans
  1-4 Family   $  351,121       5.81% $ 347,706       5.88% $ 3,415  -0.07%
  Commercial      134,698       5.76%   137,636       5.80%  (2,938) -0.04%
               ----------             ---------             -------
                  485,819       5.80%   485,342       5.86%     477  -0.06%

Non-Real Estate
 Loans
  Commercial       28,889       6.21%    30,980       6.27%  (2,091) -0.06%
  Consumer         80,839       9.29%    80,702       9.41%     137  -0.12%
               ----------             ---------             -------
                  109,728       8.48%   111,682       8.54%  (1,954) -0.06%

               ----------             ---------             -------
Total All
 Loans         $  595,547       6.29% $ 597,024       6.36% $(1,477) -0.07%
               ==========             =========             =======



Average Loan
 Balances &    12/31/2010 12/31/2010 12/31/2009 12/31/2009  Change  Change
 Yields         Balance     Yield      Balance     Yield    Balance Yield
               -----------------------------------------------------------
Real Estate
 Loans
  1-4 Family   $  351,121       5.81% $ 349,819       6.04% $ 1,302  -0.23%
  Commercial      134,698       5.76%   139,403       6.01%  (4,705) -0.25%
               ----------             ---------             -------
                  485,819       5.80%   489,222       6.03%  (3,403) -0.23%

Non-Real Estate
 Loans
  Commercial       28,889       6.21%    29,587       6.49%    (698) -0.28%
  Consumer         80,839       9.29%    80,306       9.32%     533  -0.03%
               ----------             ---------             -------
                  109,728       8.48%   109,893       8.56%    (165) -0.08%

               ----------             ---------             -------
Total All
 Loans         $  595,547       6.29% $ 599,115       6.50% $(3,568) -0.21%
               ==========             =========             =======


Interest-bearing Liabilities: Linked Quarter Comparison


                     12/31/2010         9/30/2010         Change
Average     12/31/2010  Avg.   9/30/2010  Avg.   Change     Avg.  %Balance
 balances    $Balance  Yield   $Balance  Yield  $Balance   Yield    Change
             -------------------------------------------------------------
 NOW
  Accounts   $ 105,225   0.18% $ 103,467  0.26% $  1,758   -0.08%      1.7%
 Non-interest
  bearing                                        ­
  Deposits      73,015   0.00%    66,808  0.00%    6,207    0.00%      9.3%
             -------------------------------------------------------------

   Checking
    Total      178,240   0.11%   170,275  0.16%    7,965   -0.05%      4.7%

 Savings
  Accounts     167,291   0.60%   163,157  0.69%    4,134   -0.09%      2.5%

 Money Market
  Accounts      58,559   0.35%    61,305  0.40%   (2,746)  -0.05%     -4.5%
             -------------------------------------------------------------

 Total Smart
  Growth
  Deposits     404,090   0.35% $ 394,737  0.41%    9,353   -0.06%      2.4%

 Time
  Deposits     175,947   2.53%   181,517  2.60%   (5,570)  -0.07%     -3.1%

 Total
  Deposits     580,037   1.01% $ 576,254  1.10%    3,783   -0.09%      0.7%

 FHLB
  Advances      95,251   4.53%   100,831  4.52%   (5,580)   0.01%     -5.5%
                               ---------        --------

Total
 Interest-
 bearing
 liabilities $ 602,273   1.69% $ 610,277  1.79% $ (8,004)  -0.10%     -1.3%
             =========         =========        ========

Non-interest
 bearing
 Deposits    $  73,015   0.00% $  66,808  0.00% $  6,207    0.00%      9.3%



Interest-bearing Liabilities: Prior Year Comparison

                     12/31/2010       12/31/2009           Change
Average     12/31/2010  Avg.  12/31/2009  Avg.   Change     Avg.  %Balance
 balances    $Balance  Yield   $Balance  Yield  $Balance   Yield   Change
             -------------------------------------------------------------
 NOW
  Accounts   $ 105,225   0.18% $ 102,103  0.47% $  3,122   -0.29%      3.1%
 Non-interest
  bearing
  Deposits      73,015   0.00%    64,526  0.00%    8,489    0.00%     13.2%
             -------------------------------------------------------------

   Checking
    Total      178,240   0.11%   166,629  0.29%   11,611   -0.18%      7.0%

 Savings
  Accounts     167,291   0.60%   118,486  0.98%   48,805   -0.38%     41.2%

 Money Market
  Accounts      58,559   0.35%    86,776  0.40%  (28,217)  -0.05%    -32.5%
             -------------------------------------------------------------

 Total Smart
  Growth
  Deposits     404,090   0.35%   371,891  0.53%   32,199   -0.18%      8.7%

 Time
  Deposits     175,947   2.53%   204,684  2.80%  (28,737)  -0.27%    -14.0%

Total
 Deposits      580,037   1.01%   576,575  1.34%    3,462   -0.33%      0.6%

 FHLB
  Advances      95,251   4.53%   103,400  4.40%   (8,149)   0.13%     -7.9%
                               ---------        --------

Total
 Interest
 bearing
 liabilities $ 602,273   1.69% $ 615,449  1.99% $(13,176)  -0.30%     -2.1%
             =========         =========        ========

Non-interest
 bearing
 Deposits    $  73,015   0.00% $  64,526  0.00% $  8,489    0.00%     13.2%

Contact Information

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