SOURCE: Teche Holding Company

Teche Holding Company

October 28, 2009 12:11 ET

Teche Holding Company Earns Record $3.35 per Share FYE 2009

FRANKLIN, LA--(Marketwire - October 28, 2009) - Teche Holding Company (NYSE Amex: TSH), the parent company for Teche Federal Bank, today reported that steady increases in SmartGrowth deposits and loans, increasing interest margin, and solid capital ratios, contributed to record earnings per share for fiscal 2009 and strong fourth quarter earnings. Net income for the fiscal fourth quarter ended September 30, 2009 increased to $1.98 million, or $0.94 per diluted share, compared to $1.73 million, or $0.81 per diluted share in the immediate prior quarter. Earnings were $2.12 million or $0.99 per diluted share a year ago.

For fiscal 2009, Teche's net income was a record $3.35 per diluted share compared to $2.63 per diluted share for fiscal 2008.

"We not only generated record earnings per share, but had good book value growth, capital growth and increased SmartGrowth deposits and loans boosting our net interest margin," said Patrick O. Little, President and Chief Executive Officer. "We are now better positioned to take advantage of possible future opportunities and to weather future possible challenges.

"These notable results were generated despite an ongoing national recession, economic uncertainties, and two items that reduced diluted earnings per share $0.48 this year. Specifically, we recorded impairment charges of $0.36 per share related to our private label mortgage-backed securities portfolio and an FDIC special assessment (levied on all insured banks) of $0.12 per share. During these challenging times, our dedicated employees continue to provide excellent customer service which has resulted in an increase in both SmartGrowth deposits and loans year after year," said Little. SmartGrowth deposits are made up of Teche's core deposits and exclude time deposits. SmartGrowth loans consist of all loans, excluding conforming home mortgage loans.

According to the Louisiana Economic Outlook (LEO) reported earlier this month, the state of Louisiana, contrary to the rest of the country, will hit "record employment levels" in 2010 and 2011. While not as high as previous years, the LEO continues to predict job growth in south Louisiana. The LEO predicts growth in the Lafayette MSA of 0.5%, in the Houma MSA of 0.9% and the Baton Rouge MSA of 1.5%. These three market areas comprise practically all of the market of Teche Federal Bank. While this is considerably better than the rest of the country, the LEO states that it will be even better if several key proposals in Congress are defeated. Of particular concern were the following proposals: the budget, which includes a $33 billion tax on the oil extraction industry; the cap and trade legislation; the significant increases on the regulation of businesses and other proposals of concern. The LEO states that proposals of this type "tend to arrest economic growth" and should they fail to become law, "Lafayette's future will be much brighter than we have predicted" and "the Houma area economy will fare much better."

Fiscal Fourth Quarter Financial 2009 Highlights

--  Solid Fourth Quarter diluted EPS of $0.94
--  The Bank sold $26 million in fixed rate loans for a gain of $559,000,
    or $0.18 per diluted share after tax
--  Fourth Quarter operating revenue increased 9.8% over the prior year to
    a record $11.7 million.
--  Net interest margin (NIM) expanded to 4.14% for the quarter.
--  Fourth Quarter annualized return on average tangible equity of 11.53%,
    and return on average assets of 1.01%
--  Net interest income for the fourth quarter increased 10.3%, to $7.5
    million.
    

Fiscal Year Financial 2009 Highlights

--  Record fiscal year EPS of $3.35
--  Significant Organic Growth: SmartGrowth Deposits increased 11.3%,
    while SmartGrowth Loans increased 7.2%
--  Net interest margin (NIM) expanded to 4.01% for fiscal 2009, up 30
    basis points compared to fiscal 2008.
--  Tangible Book Value per share increased 6.5% to $32.33 from $30.37 a
    year ago
--  Tangible Stockholders' Equity increased 5.6% to $67.8 million from
    $64.3 million a year ago.
--  The Bank's capital ratios remained well above the regulatory
    requirements for well-capitalized institutions, with a solid total risk-
    based capital ratio of 12.72% compared to 12.21% as of September 30, 2008.
--  Tangible common equity to tangible assets stood at 8.90% compared to
    8.40% a year earlier.
--  Fiscal year operating revenue increased 8.5% to a record $45.3
    million.
--  Fiscal year return on average tangible equity of 10.49% and return on
    average assets of 0.91% compared to ROATE of 8.83%, and ROAA of 0.76% in
    fiscal 2008.
--  Asset quality remains strong, with non-performing assets at 1.19% of
    total assets and fiscal 2009 net charge-offs of only 0.29% of average
    loans.
--  Net interest income for the year increased 11.7%, to $28.9 million
    from $25.9 million for fiscal year 2008.
--  Teche paid 58 consecutive cash dividends since June 1995 and
    consistently increased annual cash dividends to its present $1.405 per
    share, generating an annualized yield of 4.24%.
    

OPERATING RESULTS

"We are especially proud of our record profits for fiscal 2009, considering the state of the national economy," said Little. "Even with the fact that we booked $0.90 per share in various charges this fiscal year, Teche still is posting record bottom line earnings.

"We were also very pleased with our return on assets and return on equity," said Little. For fiscal 2009, the annualized return on average assets was 0.91% and return on average tangible equity was 10.49%, resulting in increased capital and increased book value per share.

"We also had record top-line results," said Little. Revenues for the quarter, consisting of net interest income (before provision for loan losses) plus non-interest income, increased 9.8% to a record $11.7 million for the fiscal fourth quarter, compared to $10.7 million for fiscal fourth quarter 2008.

For fiscal 2009, revenue increased 8.5% to a record $45.3 million, compared to $41.7 million for fiscal 2008. Net interest income before the provision for loan losses increased 11.7% to $28.9 million for fiscal 2009, compared to $25.9 million for the same period a year ago.

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

Operating Revenue              Sep '09  Jun '09  Mar '09  Dec '09  Sep '08
                               -------- -------- -------- -------- --------
Net Interest Income            $    7.5 $    7.6 $    7.1 $    6.8 $    6.8

Non Interest Income                 4.2      4.0      4.1      4.0      3.9
                               -------- -------- -------- -------- --------
Operating Revenue              $   11.7 $   11.6 $   11.2 $   10.8 $   10.7
                               ======== ======== ======== ======== ========

Fiscal fourth quarter 2009 marked the eighth consecutive quarter of NIM expansion for Teche as the Company benefits from the success of its SmartGrowth strategy. For fiscal 2009, net interest margin was 4.01% compared to 3.71% for fiscal 2008.

"While our loan yields fell by 8 basis points, we reduced our cost of funds by 10 basis points, thus expanding our net interest margin by 2 basis points to 4.14%, for the quarter. This compares to 3.85% in the fourth fiscal quarter a year ago and 4.12% in the linked quarter," remarked Little.

Net interest income, before provision for loan losses, increased 10.3% to $7.5 million in fiscal fourth quarter of 2009 compared to $6.8 million in fiscal fourth quarter a year ago.

Non-interest income increased to $4.2 million for the quarter from $4.0 million in the linked quarter and $3.9 million a year ago. This amounted to 2.16% of average assets for the quarter, compared to 2.04% for the linked quarter and 2.04% a year ago. For fiscal 2009, non-interest income was 2.09% of average assets compared to 2.11% for fiscal 2008. Deposit fees comprised 91.9% of non-interest income for the quarter, compared to 92.1% for the linked quarter and 95.8% a year ago. For fiscal 2009, deposit fees comprised 91.7% of non-interest income, compared to 95.7% for fiscal 2008.

Additionally, the Bank sold $26 million of fixed rate home loans to FNMA at a net gain of $559,000. The benefits of this sale include: improvements in our capital ratios and interest rate risk profile.

For the quarter, non-interest expense was $7.9 million or 4.03% of average assets, compared to the linked quarter of $8.2 million or 4.15% of average assets, a decrease of 3.8%, primarily due to a special FDIC assessment recorded in June 2009. Compared to the same quarter in fiscal 2008, non-interest expense increased from $7.6 million, or 3.97% of average assets, to $7.9 million or 4.03%, primarily due to FDIC deposit insurance.

ASSET QUALITY

"We remain focused on credit quality and capital adequacy, and we compare favorably to our peers on both measures," stated Little. "As a result of our solid commitment to sound underwriting standards, effective servicing and diligent collection efforts, our credit quality remained strong, and we believe our strong credit culture will continue to serve us well. $1.3 million of charge-offs recorded this quarter were primarily the result of a multi-family real estate project. This project has been completely resolved. The asset was sold to a new owner and there is no new credit relationship with Teche."

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

                          Sep '09   Jun '09   Mar '09   Dec '09   Sep '08
                          --------  --------  --------  --------  --------
Net Charge-offs/Average
 Loans                        0.22%     0.03%     0.03%     0.01%     0.01%
ALLL/NPLs                    95.44%    74.30%    84.60%    87.00%    86.80%
ALLL/NPAs                    74.86%    68.00%    77.80%    78.80%    82.00%
ALLL/Loans                    1.14%     1.10%     1.05%     0.93%     0.94%
Non-Accrual Loans/Loans       1.02%     1.07%     0.84%     0.81%     0.64%
NPAs/Assets                   1.19%     1.27%     1.05%     0.93%     0.88%

Net charge-offs in fiscal fourth quarter were $1.3 million, or 0.22% of average loans, compared to $0.1 million, or 0.01% of average loans, for the same period a year ago. For fiscal 2009, net charge-offs totaled $1.8 million, or 0.29% of average loans, compared to $0.4 million, or 0.06% of average loans for fiscal 2008. "Charge-offs were higher than our historical experience this quarter but we continue to compare very favorably to our peers and the overall banking industry."

The allowance for loan and lease losses (ALLL) increased to $6.8 million, or 1.14% of total loans at year end, compared with $5.50 million, or 0.94% of total loans, at September 30, 2008, in part reflecting growth in the loan portfolio and non-performing loans. At June 30, 2009, the allowance for loan and lease losses was $6.8 million, or 1.10% of total loans.

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

(in 000's)                     Sep '09  Jun '09  Mar '09  Dec '09  Sep '08
                               -------- -------- -------- -------- --------
Beginning ALLL                 $  6,836 $  6,478 $  5,531 $  5,545 $  5,470

Provision for Loan Losses         1,286      550    1,035      155      160

Net Charge-offs                   1,316      192      188       69       85
Ending ALLL                    $  6,806 $  6,836 $  6,478 $  5,631 $  5,545

Non-performing assets totaled $9.1 million, or 1.19% of total assets, at September 30, 2009, compared to $10.0 million, or 1.27% of total assets at June 30, 2009, and $6.8 million, or 0.88% of total assets, a year ago. Non-performing assets consist of non-accrual loans, accruing loans 90 days or more past due, restructured loans and other real estate owned.

BALANCE SHEET

Total net loans grew 0.7% to $588.5 million at September 30, 2009, compared to $584.6 million a year ago and decreased 3.8% compared to $612.0 million at June 30, 2009 primarily due to the sale of approximately $26 million in single family fixed rate mortgage loans in August 2009. Teche originated $54.5 million in loans during the current quarter, including $45.5 million in SmartGrowth loans, of which $26.6 million were commercial loans.

Teche's total assets decreased 0.6% to $765.0 million, at September 30, 2009, compared to $769.5 million a year ago. Total assets decreased from $789.5 million at June 30, 2009 primarily due to the sale of loans set forth above and a corresponding reduction in total deposits.

At September 30, 2009 SmartGrowth loans comprised 77.3% of the total loan portfolio, compared to 72.8% a year ago. SmartGrowth loans increased 7.2% to $460.3 million at September 30, 2009 compared to $429.5 million a year ago, and decreased 0.4% from $462.1 million at June 30, 2009.

SmartGrowth deposits at September 30, 2009 were 62.8% of total deposits compared to 56.1% a year ago. SmartGrowth deposits increased 11.3% to $367.7 million at September 30, 2009 compared to $330.4 million a year ago. Following the run-off of $41.1 million of primarily higher cost time deposits, total deposits were $585.5 million at September 30, 2009, compared $589.2 million at September 30, 2008.

"Checking deposits were down seasonally this quarter," said Little, "but our year-over-year gain in checking and total SmartGrowth deposits showed a significant increase for the year.

"The organic growth in SmartGrowth loans and deposits has been the cause of much of the success of the Bank this past year," said Little.

Consumer and commercial loans increased 9.5% and 11.9% respectively over the past year. Consumer loans now total $108.0 million at September 30, 2009 and commercial loans increased to $210.2 million. "Our recent increase in consumer loans has been remarkable," said Little. "Not only did we post a significant increase in consumer loan balances, but the interest rate on consumer loans increased. Further, net charge-offs for consumer loans have been very low. As a result, we have again posted solid gains in both commercial and consumer loans this past quarter and have been encouraged by the steady increase in our SmartGrowth Loans."

Total stockholders' equity increased by $3.4 million to $71.5 million, as earnings were partially offset primarily by cash dividends and repurchases during the quarter.

Total cash and securities in the portfolio continued to gradually decline to $125.1 million from $135.8 million a year ago. The vast majority of our securities are government-sponsored enterprise mortgage-backed securities, with only $4.2 million, or 0.5% of total assets in private label mortgage backed securities.

CAPITAL ADEQUACY

"We did not participate in the TARP program and our capital is strong," added Little. "All capital ratios continue to exceed the 'well-capitalized' requirements established by banking regulators."

The Tier 1 risk-based capital ratio was 11.51% at September 30, 2009, compared with 11.17% at June 30, 2009 and at September 30, 2008. The total risk-based capital ratio was 12.72% at September 30, 2009, compared with 12.15% at June 30, 2009 and 12.21% at September 30, 2008.

Tangible shareholders' equity improved to $67.8 million, or 8.90% of total assets at September 30, 2009, compared with $64.3 million, or 8.40 % of total assets at September 30, 2008. Book value per share increased to $34.09 at September 30, 2009, from $32.12 a year ago and tangible book value per share increased to $32.33 at quarter end from $30.37 a year ago. The increases were primarily due to earnings, partially offset by dividends paid during the year.

On September 30, 2009, Teche paid a $0.355 per share quarterly cash dividend to shareholders, generating an annualized yield of 4.29% based on the recent share price. Teche has paid 58 consecutive quarterly cash dividends since June 1995. "Because of the solid performance of our balance sheet, we are able to continue rewarding shareholders with quarterly cash dividends," Little noted.

ABOUT TECHE HOLDING COMPANY

Teche Holding Company is the parent company of Teche Federal Bank, which operates twenty offices in South Louisiana and provides various deposit, loan and investments services to over 60,000 customers. Founded in 1934, Teche Federal Bank is the fourth largest publicly traded (NYSE Amex: TSH) bank based in Louisiana with over $765 million in assets. Deposits at Teche Federal Bank are insured up to the legal maximum amount by the Federal Deposit Insurance Corporation (FDIC).

www.teche.com

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
                     -----------------------------------------------------
                       Sep.       Jun.       Mar.       Dec.       Sep.
                       2009       2009       2009       2008       2008
                     ---------  ---------  ---------  ---------  ---------
Interest Income      $  10,880  $  11,130  $  11,013  $  11,214  $  11,417
Interest Expense         3,386      3,583      3,950      4,378      4,620
                     ---------  ---------  ---------  ---------  ---------
Net Interest Income      7,494      7,547      7,063      6,836      6,797
Provision for Loan
 Losses                  1,286        550      1,035        155        160
                     ---------  ---------  ---------  ---------  ---------
Net Interest Income
 after
 Provision for Loan
 Losses                  6,208      6,997      6,028      6,681      6,637
Non Interest Income      4,225      4,036      4,114      3,952      3,872
Non Interest Expense     7,894      8,204      7,678      7,595      7,604
                     ---------  ---------  ---------  ---------  ---------
Income Before Gain
 on Securities and
 Sale of Loans           2,539      2,829      2,464      3,038      2,905
Gain (Loss) on
 Securities               (183)      (434)        18       (436)         1
Gain (Loss) on Sale
 of Loans                  559         --         --         --       --­­
Income Taxes               932        662        826        838        787
                     ---------  ---------  ---------  ---------  ---------
Net Income (loss)    $   1,983  $   1,733  $   1,656  $   1,764  $   2,119
                     =========  =========  =========  =========  =========

Selected Financial Data
                     ---------  ---------  ---------  ---------  ---------
Dividends Declared
 Per Share           $   0.355  $    0.35  $    0.35  $    0.35  $    0.35
Basic Earnings Per
 Common Share        $    0.95  $    0.82  $    0.78  $    0.83  $    1.00
Diluted Earnings Per
 Common Share        $    0.94  $    0.81  $    0.78  $    0.83  $    0.99
Annualized Return on
 Avg. Assets              1.01%      0.88%      0.85%      0.92%      1.11%
Annualized Return on
 Avg. Equity             10.91%      9.55%      9.24%     10.37%     12.28%
Annualized Return on
 Avg.
 Tangible Equity (1)     11.53%     10.11%      9.79%     11.00%     13.02%
Yield on Interest
 Earning Assets           6.01%      6.07%      6.11%      6.26%      6.42%
Cost of Interest
 Bearing Liabilities      2.12%      2.22%      2.47%      2.77%      2.91%
Spread                    3.88%      3.85%      3.64%      3.49%      3.56%
Net Interest Margin       4.14%      4.12%      3.92%      3.82%      3.85%
Non-Interest
 Income/Avg. Assets       2.16%      2.04%      2.12%      2.05%      2.02%
Non-Interest
 Expense/Avg. Assets      4.03%      4.15%      3.94%      3.94%      3.97%
Quarterly Net Charge
 Offs/Avg. Loans          0.22%      0.03%      0.03%      0.01%      0.01%
Weighted avg. shares
 Outstanding
  Basic                  2,096      2,107      2,118      2,118      2,118
  Diluted                2,117      2,125      2,128      2,128      2,133

AVERAGE BALANCE SHEET DATA
                     ---------  ---------  ---------  ---------  ---------
Total Assets         $ 784,058  $ 790,499  $ 780,054  $ 770,227  $ 765,779
Earning assets       $ 724,678  $ 733,368  $ 720,998  $ 716,127  $ 711,430
Loans                $ 608,769  $ 615,616  $ 606,951  $ 601,355  $ 591,898
Interest-bearing
 deposits            $ 534,850  $ 538,403  $ 532,033  $ 528,575  $ 537,431
Total deposits       $ 600,339  $ 604,681  $ 596,291  $ 596,881  $ 593,869
Total stockholders'
 equity              $  72,723  $  72,568  $  71,689  $  68,057  $  69,045

(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              $  72,723  $  72,568  $  71,689  $  68,057  $  69,045
Less average
 goodwill and other
 intangible assets,
 net of related
 income taxes            3,694      3,703      3,708      3,715      3,723
                                           ---------  ---------
Average Tangible
 Equity              $  69,029  $  68,865  $  67,981  $  64,342  $  65,322
                     =========  =========  =========  =========  =========

Net Income           $   1,983  $   1,733  $   1,656  $   1,764  $   2,119
Plus Amortization of
 core deposit
 intangibles, net of
 related income
 taxes                       7          7          7          7          7
                     ---------  ---------  ---------  ---------  ---------
Net Income, as
 adjusted            $   1,990  $   1,740  $   1,663  $   1,771  $   2,126
                     =========  =========  =========  =========  =========


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



                                  Twelve months ended  Twelve months ended
                                      Sept. 2009           Sept. 2008
                                  -------------------  -------------------

Interest Income                   $            44,237  $            45,633
Interest Expense                               15,297               19,733
                                  -------------------  -------------------
Net Interest Income                            28,940               25,900
Provision for Loan Losses                       3,026                  825
                                  -------------------  -------------------
Net Interest Income after
 Provision for Loan Losses                     25,914               25,075
Non Interest Income                            16,328               15,813
Non Interest Expense                           31,372               30,552
                                  -------------------  -------------------
Income Before Gain on Securities
and Sale of Loans                              10,870               10,336
Gain (Loss) on Securities                      (1,035)              (2,580)
Gain (Loss) on Sale of Loans                      559
Income Taxes                                    3,258                2,047
                                  -------------------  -------------------

Net Income                        $             7,136  $             5,709
                                  ===================  ===================

Selected Financial Data
                                  -------------------  -------------------

Dividends Declared Per Share      $              1.41  $              1.37
Basic Earnings Per Common Share   $              3.38  $              2.65
Diluted Earnings Per Common Share $              3.35  $              2.63
Annualized Return on Avg. Assets                 0.91%                0.76%
Annualized Return on Avg. Equity                 9.98%                8.29%
Annualized Return on Avg.
 Tangible Equity (1)                            10.49%                8.83%
Yield on Interest Earning Assets                 6.12%                6.60%
Cost of Interest Bearing
 Liabilities                                     2.40%                3.17%
Spread                                           3.73%                3.42%
Net Interest Margin                              4.01%                3.71%
Non-Interest Income/Avg. Assets                  2.08%                2.11%
Non-Interest Expense/Avg. Assets                 4.02%                4.07%
FYTD Charge-Offs/Avg. Loans                      0.29%                0.06%
Weighted avg. shares Outstanding
  Basic                                         2,110                2,154
  Diluted                                       2,127                2,171

AVERAGE BALANCE SHEET DATA
                                  -------------------  -------------------
Total Assets                      $           781,187  $           749,825
Earning assets                    $           722,409  $           697,236
Loans                             $           606,751  $           594,944
Interest-bearing deposits         $           533,022  $           526,458
Total deposits                    $           597,559  $           581,253
Total stockholders' equity        $            71,479  $            68,833


(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      $            71,479  $            68,833
Less average goodwill and other
 intangible assets, net of related
 income taxes                                   3,715                3,743
                                  -------------------  -------------------
Average Tangible Equity           $            67,764  $            65,090
                                  ===================  ===================

Net Income                        $             7,136  $             5,709
Plus Amortization of core deposit
 intangibles, net of related
 income taxes                                      28                   36
                                  -------------------  -------------------
Net Income, as adjusted           $             7,108  $             5,745
                                  ===================  ===================



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

                    Sep. 2009  Jun. 2009  Mar. 2009  Dec. 2008  Sept. 2008
                    ---------  ---------  ---------  ---------  ----------
SmartGrowth Loans
  Consumer          $ 108,013  $ 106,563  $ 104,524  $ 102,438  $   98,632
  Commercial          210,201    209,091    204,973    195,754     187,791
  Home Equity          58,348     58,216     57,852     57,720      55,713
  Alternative
   Mortgage Loans      83,775     88,200     88,305     88,181      87,404
                    ---------  ---------  ---------  ---------  ----------
Total SmartGrowth
 Loans                460,337    462,070    455,654    444,093     429,540
Mortgage Loans
 (owner occupied
 conforming)          134,996    156,759    157,954    160,410     160,596
                    ---------  ---------  ---------  ---------  ----------
                      595,333    618,829    613,608    604,503     590,136
Allowance for Loan
 Losses                -6,806     -6,836     -6,478     -5,631      -5,545
                    ---------  ---------  ---------  ---------  ----------
Loans Receivable,
 Net                  588,527    611,993    607,130    598,872     584,591

Cash and Securities   125,058    127,441    139,149    120,235     135,819
Goodwill and Other
 Intangibles            3,715      3,723      3,734      3,745       3,756
Foreclosed Real
 Estate                 1,953        604        672        672         343
Other                  45,818     45,752     44,811     44,094      44,979
                    ---------  ---------  ---------  ---------  ----------
TOTAL ASSETS        $ 765,071  $ 789,513  $ 795,496  $ 767,618  $  769,488
                    =========  =========  =========  =========  ==========

SmartGrowth
 Deposits
  Checking          $ 165,796  $ 168,733  $ 175,477  $ 158,742  $  144,601
  Money Market         95,461    108,668    120,865    121,621     130,399
  Savings             106,479     93,485     78,944     57,387      55,390
                    ---------  ---------  ---------  ---------  ----------
Total SmartGrowth
 Deposits             367,736    370,886    375,286    337,750     330,390
Time Deposits         217,733    234,556    236,403    251,032     258,838
                    ---------  ---------  ---------  ---------  ----------
Total Deposits        585,469    605,442    611,689    588,782     589,228

FHLB Advances         100,628    106,890    107,089    103,491     104,877
Other Liabilities       7,490      7,129      6,656      6,013       7,339
Stockholders'
 Equity                71,484     70,052     70,062     69,332      68,044
                    ---------  ---------  ---------  ---------  ----------
TOTAL LIABILITIES
 AND STOCKHOLDERS'
 EQUITY             $ 765,071  $ 789,513  $ 795,496  $ 767,618  $  769,488
                    =========  =========  =========  =========  ==========

Ratio of Equity to
 Assets                  9.34%      8.87%      8.81%      9.03%       8.84%
Tangible Equity
 Ratio (2)               8.90%      8.44%      8.38%      8.59%       8.40%
Risk-Based Capital
 Ratio                  12.72%     12.15%     11.98%     12.43%      12.21%
Book Value per
 Common Share       $   34.09  $   33.43  $   33.08  $   32.72  $    32.12
Tangible Book Value
 Per Common Share
 (2)                $   32.33  $   31.67  $   31.33  $   31.00  $    30.37
Non-performing
 Assets/Total
 Assets                  1.19%      1.27%      1.05%      0.93%       0.88%
Shares Outstanding
 (in thousands)         2,097      2,095      2,118      2,116       2,118

(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             $  71,484  $  70,052  $  70,062  $  69,332  $   68,044
Less goodwill and
 other Intangible
 assets, net of
 related income
 taxes                 -3,692     -3,697     -3,704     -3,712      -3,721
                    ---------  ---------  ---------  ---------  ----------
Tangible
 Stockholders'
 Equity             $  67,792  $  66,355  $  66,358  $  65,620  $   64,323
                    =========  =========  =========  =========  ==========

Total Assets          765,071  $ 789,513  $ 795,496  $ 767,619  $  769,488
Less goodwill and
 other Intangible
 assets, net of
 related income
 taxes                 -3,692     -3,697     -3,704     -3,712      -3,721
                    ---------  ---------  ---------  ---------  ----------
Total Tangible
 Assets               761,379  $ 785,816  $ 791,792  $ 763,907  $  765,767
                    =========  =========  =========  =========  ==========




Quarter-End Loan Data
Sept. 30, 2009
                                                    90 Days +
                   Total     Charge-     Charge-       Non      90 Days +
                   Loans      Offs        Offs       Accrual   Non 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%

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)      (0.03)%         19        0.62%
    Mobile Home
     Loans          40,327          6        0.01 %        266        0.66%
    Other            8,605          7        0.08 %          2        0.02%
                 ---------  ---------               ----------
  Gross Loans    $ 595,333  $   1,316        0.22 % $    7,130        1.20%
                 =========  =========               ==========

  Non-accruals   $   6,048
  OREO &
   Foreclosed        1,962
  90 + Days Past
   Due               1,082
                 ---------

    Non-performing
     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

Linked Quarter
 Comparison              09/30/2009        6/30/2009      Change    Change
                        Balance  Yield   Balance  Yield   Balance   Yield
                       --------- -----  --------- -----  ---------  ------
Real Estate Loans
  1-4 Family           $ 362,662  6.12% $ 371,900  6.20% $  (9,238)  -0.08%
  Commercial             137,729  5.85%   135,699  6.10%     2,030   -0.25%
                       ---------        ---------        ---------
                         500,391  6.04%   507,599  6.18%    (7,208)  -0.14%

Non-Real Estate Loans
  Commercial              29,342  6.44%    30,158  6.37%      (816)   0.07%
  Consumer                79,036  9.45%    77,859  9.27%     1,177    0.18%
                       ---------        ---------        ---------
                         108,378  8.63%   108,017  8.46%       361    0.17%

                       ---------        ---------        ---------
Total All Loans        $ 608,769  6.50% $ 615,616  6.58% $  (6,847)  -0.08%
                       =========        =========        =========


Average Loan Balances & Yields

Prior Year Comparison
                         09/30/2009        9/30/2008      Change    Change
                        Balance  Yield   Balance  Yield   Balance   Yield
                       --------- -----  --------- -----  ---------  ------
Real Estate Loans
  1-4 Family           $ 370,125  6.24% $ 383,338  6.56% $ (13,213)  -0.32%
  Commercial             130,063  6.18%   116,202  7.11%    13,861   -0.93%
                       ---------        ---------        ---------
                         500,188  6.22%   499,540  6.69%       648   -0.47%


Non-Real Estate Loans
  Commercial              29,464  6.44%    23,030  7.23%     6,434   -0.79%
  Consumer                77,099  9.28%    67,044  9.25%    10,055    0.03%
                       ---------        ---------        ---------
                         106,563  8.50%    90,074  8.73%    16,489   -0.23%
                       ---------        ---------        ---------
Total All Loans        $ 606,751  6.62% $ 589,614  7.00% $  17,137   -0.38%
                       =========        =========        =========




Interest-bearing Liabilities:  Linked Quarter Comparison

Average balances
                  9/30/2009       6/30/2009               Change
                        Avg.             Avg.   Change     Avg.   %Balance
              $Balance  Yield  $Balance  Yield  $Balance  Yield    Change
              --------- -----  --------- -----  --------  ------  --------
  NOW
   Accounts   $ 102,756  0.47% $ 106,830  0.48% $ (4,074)  -0.01%     -3.8%
  Non-interest
   bearing
   Deposits      65,489  0.00%    66,278  0.00%     (789)   0.00%     -1.2%
              --------- -----  --------- -----  --------  ------  --------
    Checking
     Total      168,245  0.29%   173,108  0.30%   (4,863)  -0.01%     -2.8%

  Savings
   Accounts      97,036  0.88%    86,301  0.87%   10,735    0.01%     12.4%
  Money Market
   Accounts     103,868  0.55%   114,376  0.91%  (10,508)  -0.36%     -9.2%
              --------- -----  --------- -----  --------  ------  --------

  Total
   SmartGrowth
   Deposits     369,149  0.52%   373,785  0.62%   (4,636)  -0.10%     -1.2%

  Time
   Deposits     231,190  3.03%   230,896  3.13%      294   -0.10%      0.1%

  Total
   Deposits   $ 600,339  1.49% $ 604,681  1.58% $ (4,342)  -0.09%     -0.7%

  FHLB
   Advances     103,328  4.47%   106,193  4.51%   (2,865)  -0.04%     -2.7%
              ---------        ---------        --------

Total
 Interest-
 bearing
 liabilities  $ 638,178  2.12% $ 644,596  2.22% $ (6,418)  -0.10%     -1.0%
              =========        =========        ========


Interest-bearing Liabilities: Prior Year Comparison

Average balances
                 9/30/2009       9/30/2008               Change
                        Avg.             Avg.   Change    Avg.   %Balance
              $Balance  Yield  $Balance  Yield  $Balance  Yield    Change
              --------- -----  --------- -----  --------  ------  --------
  NOW Accounts  101,311  0.53% $  83,516  0.55% $ 17,795   -0.02%     21.3%
  Non-interest
   bearing
   Deposits      64,537  0.00%    54,796  0.00%    9,741    0.00%     17.7%
              --------- -----  --------- -----  --------  ------  --------
    Checking
     Total      165,848  0.32%   138,312  0.33%   27,536   -0.01%     19.9%

  Savings
   Accounts      76,214  0.87%    52,851  0.77%   23,363    0.10%     44.2%
  Money Market
   Accounts     115,227  1.24%   125,905  2.71%  (10,678)  -1.47%     -8.5%
              --------- -----  --------- -----  --------  ------  --------

  Total
   SmartGrowth
   Deposits     357,289  0.74%   317,068  1.35%   40,221   -0.61%     12.7%

  Time
   Deposits     240,270  3.28%   264,185  4.16%  (23,915)  -0.88%     -9.1%

  Total
   Deposits     597,559  1.76%   581,253  2.63%   16,306   -0.87%      2.8%

  FHLB
   Advances     105,060  4.54%    95,225  4.67%    9,835   -0.13%     10.3%
              ---------        ---------        --------

Total
 Interest-
 bearing
 liabilities  $ 638,082  2.40% $ 621,682  3.17% $ 16,400    0.69%      2.6%
              =========        =========        ========

Contact Information

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