TECHE HOLDING CO - FORM 8-K - EX-99 - EXHIBIT 99 - PRESS RELEASE

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8-K - FORM 8-K 7-27-11 TECHE HOLDING COMPANY - TECHE HOLDING CO	f8k_072711-0123.htm

NEW IBERIA, LA – 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 June 30, 2011, the third quarter of fiscal 2011.

Earnings for the quarter ended June 30, 2011 amounted to $1.8 million, or $0.85 per diluted share, compared to $1.82 million, or $0.87 per diluted share for the same quarter in fiscal 2010, a decrease of $0.02 per diluted share, or 2.3%.

Earnings for the nine month period ended June 30, 2011 amounted to $5.13 million, or $2.45 per diluted share, compared to $5.25 million or $2.49 per diluted share, for the same period in fiscal 2010, a decrease of $0.04 per diluted share, or 1.6%. For the same period in FY 2009, diluted EPS amounted to $2.42.

“We posted record earnings for the past two years in very difficult times and our earnings for the past nine months are near those levels,” said Little.

The Company reported the following highlights:

·	Checking Account balances increased 8.2% compared to the linked quarter and 23.4% compared to June 30, 2010. Checking account balances now amount to 33.4% of total deposits, compared to 29.3% a year ago.

·	SmartGrowth Deposits increased 3.9% compared to the linked quarter and 16.1% compared to a year ago. SmartGrowth Deposits amounted to 72.9% of total deposits, compared to 71.8% at March 31, 2011 and 67.9% a year ago.

·	Total Deposits increased 2.4% compared to the linked quarter and 8.2% compared to a year ago.

·	The average yield on all deposits was 0.82% compared to 0.94% for the linked quarter and 1.25% a year ago.

·	Cost of interest bearing liabilities amounted to 1.43%, compared to 1.57% for the linked quarter and 1.92% a year ago.

·	Net interest margin for the quarter amounted to 4.24%, compared to 4.25% for the linked quarter and 4.18% a year ago.

·	Total Assets increased to $789.0 million, an increase of $6.9 million for the linked quarter, or 0.88%.

·	All capital measures continue to remain strong.

·	Tangible book value per share increased to a record $36.11.

·	The Bank experienced higher than normal net charge-offs of 0.57% of loans primarily due to two large commercial credit relationships which were previously reserved. Net charge offs for the last twelve months totaled 0.80% of average loans.

·	The Company paid a quarterly dividend of $0.36 per share compared to $0.355 per share for the quarter ended June 30, 2010, an increase of 1.4%.

·	The Bank completed its conversion from a federally chartered savings bank to a Louisiana chartered commercial bank, regulated by the Commissioner of the Office of Financial Institutions of the State of Louisiana and the Federal Deposit Insurance Corporation (FDIC).

Capital

Dollars in Thousands	Jun ‘11			Mar ‘11			Dec '10			Sep ‘10			Jun ‘10
Stockholders’ Equity Ratio of Equity to Assets	$	78,581 9.96	%	$	77,578 9.92	%	$	76,497 10.15	%	$	75,513 9.92	%	$	74,549 9.74	%
Tangible Equity Ratio		9.54	%		9.49	%		9.71	%		9.48	%		9.30	%
Total Risk-Based Capital Ratio		14.49	%		13.94	%		13.79	%		13.52	%		13.30	%
Book Value per Common Share	$	37.87		$	37.23		$	36.81		$	36.19		$	35.45
Tangible Book Value Per Common Share	$	36.11		$	35.47		$	35.04		$	34.43		$	33.70
Total Assets	$	789,004		$	782,152		$	753,701		$	761,524		$	765,484

Asset Quality

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

	Jun ‘11			Mar ‘11			Dec '10			Sep'10			Jun '10
Net Charge-offs/Average Loans		0.57	%		0.09	%		0.08	%		0.08	%		0.05	%
ALLL/NPLs		69.94	%		68.32	%		66.36	%		63.92	%		59.29	%
ALLL/NPAs		56.27	%		59.94	%		56.36	%		51.96	%		53.29	%
ALLL/Loans		1.39	%		1.78	%		1.68	%		1.55	%		1.48	%
NPAs/Assets		1.83	%		2.22	%		2.34	%		2.34	%		2.16	%

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

(in 000's)	Jun ‘11		Mar ‘11		Dec '10		Sep '10		Jun '10
Beginning ALLL	$	10,452	$	9,953	$	9,256	$	8,830	$	8,253
Provision for Loan Losses		1,000		1,000		1,150		900		900
Net Charge-offs		3,329		501		453		474		323
Ending ALLL	$	8,123	$	10,452	$	9,953	$	9,256	$	8,830
Ending ALLL (net of specific reserves)	$	8,075	$	7,455	$	7,046	$	7,125	$	6,513

Net charge-offs for the quarter were $3.3 million, or 0.57% of average loans, compared to $323,000 or 0.05% of average loans for the same period a year ago. For the twelve months ended June 30, 2011, net charge offs were $4.8 million or 0.80% of average loans, compared to $2.3 million or 0.38% of loans for the twelve months ended June 30, 2010. The increase in net charge-offs for the quarter was primarily due to two commercial real estate land and construction credit relationships, which accounted for $2.2 million in charge offs this quarter. These charged off amounts were previously included in the Allowance for Loan Losses as specific reserves.

The allowance for loan losses was $8.1 million or 1.39% of total loans at June 30, 2011. This represented a decrease of $0.7 million from $8.8 million or 1.48% of total loans at June 30, 2010, and a decrease of $2.3 million from $10.5 million or 1.78% of total loans at March 31, 2011, primarily due to net charge-offs during the quarter.

Non-performing assets decreased to $14.4 million, or 1.83% of total assets, at June 30, 2011, compared to $17.3 million, or 2.22% of total assets at March 31, 2011 and $16.4 million, or 2.16% of total assets a year ago, primarily due to charge-offs of previously reserved credits during the quarter. Non-performing assets consist of non-accrual loans, loans 90 days or more past due and other real estate owned.

Net Interest Income

(In 000’s)	Jun ‘11		Mar ‘11		Dec ‘10		Sep ‘10		Jun ‘10
Interest Income	$	9,758	$	9,736	$	10,003	$	10,163	$	10,299
Interest Expense		2,185		2,363		2,542		2,728		2,969
Net Interest Income	$	7,573	$	7,373	$	7,461	$	7,435	$	7,330

Net interest income for the three months ended June 30, 2011 amounted to $7.57 million compared to $7.33 million for the quarter ended June 30, 2010, an increase of 3.3%, or $243,000 primarily due to a decrease in interest expense.

Net Interest Margin and Spread

	Jun ‘11	Mar '11	Dec '10	Sep '10	Jun '10
Yield on Earning Assets	5.46%	5.61%	5.75%	5.84%	5.87%
Cost of Interest Bearing Liabilities	1.43%	1.57%	1.69%	1.79%	1.93%
Spread	4.03%	4.04%	4.06%	4.05%	3.94%
Net Interest Margin	4.24%	4.25%	4.29%	4.27%	4.18%

Net interest margin amounted to 4.24% for the three-month period ended June 30, 2011; compared to 4.25% for the linked quarter and 4.18% for the three-months ended June 30, 2010.

Spread amounted to 4.03% for the three month period ended June 30, 2011, compared to 3.94% for the same period in the previous year. Compared to the same quarter last year, the average yield on earnings assets decreased 41 basis points from 5.87% to 5.46%, while the average cost of funds decreased 50 basis points from 1.93% to 1.43%.

Yield on Loan Compared to Cost of Deposits	Jun ‘11	Mar '11	Dec '10	Sep '10	Jun '10
Average Yield on Loans	6.20%	6.17%	6.29%	6.36%	6.39%
Average Cost of Interest Bearing Deposits	0.96%	1.08%	1.15%	1.25%	1.41%

The average yield on loans decreased from 6.39% for the quarter ended June 30, 2010 to 6.20% for the quarter ended June 30, 2011. The cost of interest bearing deposits decreased from 1.41% for the quarter ended June 30, 2010 to 0.96% for the quarter ended June 30, 2011.

“SmartGrowth deposits continue to increase, led by growth in checking deposits,” said Little. “As a result, our cost of funds continues to go down and our net interest margin remains stable.”

The average yield on SmartGrowth deposits is 0.24%, compared to 0.32% for the linked quarter and 0.58% a year ago.

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, which was comparable to the four preceding quarters.

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

Operating Revenue	Jun ‘11		Mar '11		Dec '10		Sep '10		Jun '10
Net Interest Income	$	7.6	$	7.4	$	7.5	$	7.4	$	7.3
Non-interest Income		3.9		3.8		4.0		4.0		4.2
Operating Revenue	$	11.5	$	11.2	$	11.5	$	11.4	$	11.5

Non-Interest Income

Non-interest income increased slightly to $3.9 million for the quarter compared to $3.8 million in the linked quarter and $4.2 million a year ago. This amounted to 2.02% of average assets for the quarter, compared to 2.02% for the linked quarter and 2.17% a year ago. Deposit fees comprised 92.4% of non-interest income for the quarter, compared to 90.5% for the linked quarter and 92.0% a year ago. Interchange fees amounted to $881,000 for the quarter, compared to $820,000 for the linked quarter and $849,000 a year ago.

On June 29, 2011, the Federal Reserve approved new regulations affecting interchange fees of Banks over $10 billion in assets, effective October 1, 2011. “Even though these regulations are not effective until our next fiscal year, and even though Teche is exempt from the regulation, management continues to closely monitor these changes,” said Little.

Non-interest income amounted to 34.2% of operating income for the quarter ended June 30, 2011, compared to 36.2% for the three months ended June 30, 2010 and to 34.2% for the linked quarter.

Non-Interest Income (thousands)	Jun ‘11	Mar '11	Dec '10	Sep '10	Jun '10
Interchange fee Income	881	820	786	782	849
Other Non-Interest Income	3,057	3,012	3,186	3,182	3,304
Total Non-Interest Income	3,938	3,832	3,972	3,964	4,153
Total Non-Interest Income/Assets	2.02%	2.02%	2.09%	2.08%	2.16%
Non-Interest Expense	7,777	7,918	7,583	7,732	7,877
Non-Interest Expense/Assets	3.99%	4.17%	3.99%	4.06%	4.11%

Non-Interest Expense

For the quarter, non-interest expense was $7.8 million or 3.99% of average assets, compared to the linked quarter of $7.9 million or 4.17% of average assets, a decrease of 0.18%. Compared to the same quarter in fiscal 2010, non-interest expense decreased $100,000 or 1.3%.

Net Income and Dividends

Since 2003, the Company has increased dividends for eight consecutive years and on June 30, 2011 paid a $0.36 per share quarterly dividend, its sixty-fourth consecutive. Based on the closing price of the Company’s common stock on June 30, 2011 of $34.80, the annualized dividend yield was 4.10%.

(In 000’s)	Jun ‘11			Mar ‘11			Dec '10			Sep '10			Jun'10
Net Income	$	1,790		$	1,513		$	1,824		$	1,847		$	1,821
Dividends Declared Per Share	$	0.36		$	0.36		$	0.355		$	0.355		$	0.355
Basic Earnings Per Common Share	$	0.86		$	0.73		$	0.88		$	0.89		$	0.87
Diluted Earnings Per Common Share	$	0.85		$	0.72		$	0.87		$	0.88		$	0.87
Annualized Return on Avg. Assets		0.92	%		0.80	%		0.96	%		0.97	%		0.95	%
Annualized Return on Avg. Equity		8.96	%		7.74	%		9.36	%		9.61	%		9.60	%
Annualized Return on Avg. Tangible Equity		9.40	%		8.13	%		9.84	%		10.12	%		10.12	%

Loans

(In 000’s)	Jun ‘11		Mar ‘11		Dec '10		Sep '10		Jun '10
SmartGrowth Loans
Consumer	$	109,476	$	109,092	$	111,139	$	111,571	$	110,855
Commercial		201,324		207,509		208,797		212,933		212,762
Home Equity		51,293		51,045		52,182		53,405		55,860
SmartMortgages		88,019	88,799		89,389		86,959		86,624
Total SmartGrowth Loans		450,112		456,445		461,507		464,868		466,101
Mortgage Loans (owner occupied conforming)		133,264	131,708		132,224		131,023		131,590
Total Loans	$	583,376	$	588,153	$	593,731	$	595,891	$	597,691

Gross loans receivable decreased to $583.4 million at June 30, 2011, from $588.2 million at March 31, 2011 and $597.7 million at June 30, 2010, representing a linked quarter decrease of $4.8 million, or 0.8% and a twelve month decrease of $14.3 million or 2.4%. SmartGrowth Loans, consisting of commercial loans, home equity loans, SmartMortgage loans and consumer loans, were $450.1 million, or 77.2% of total loans at June 30, 2011, compared to $456.4 million, or 77.6% at March 31, 2011 and $466.1 million at June 30, 2010, for a three month decrease of $6.3 million, or 1.4% and a twelve month decrease of $16.0 million, or 3.4%.

“SmartGrowth loans decreased primarily due to a combination of normal repayments, reduced originations and charge-offs this quarter in the commercial portfolio,” said Little. “Compared to last year at this time, loan balances are 2.4% lower.”

Commercial loan balances at June 30, 2011 amounted to $201.3 million, compared to $207.5 million at March 31, 2011 and $212.7 million at June 30, 2010, for a three month decrease of $6.2 million or 3.0% and a twelve month decrease of $11.4 million, or 5.4%. Consumer loan balances at June 30, 2011 amounted to $109.5 million, compared to $109.1 million at March 31, 2011 and $110.8 million at June 30, 2010, a linked quarter increase of $0.4 million, or 0.4%.

Deposits

(In 000’s)	Jun ‘11		Mar ‘11		Dec '10		Sep '10		Jun '10
SmartGrowth Deposits
Checking	$	209,080	$	193,244	$	186,240	$	173,206	$	169,396
Money Market		55,280		56,618		55,557		60,246		62,643
Savings		191,586		188,819		169,326		166,734		160,567
Total SmartGrowth Deposits	$	455,946	$	438,681	$	411,123	$	400,186	$	392,606
Time Deposits		169,377		172,211		172,316		179,169		185,496
Total Deposits	$	625,323	$	610,892	$	583,439	$	579,355	$	578,102

“We are very pleased that we are growing SmartGrowth Deposits, and increasing overall deposits and reducing our cost of funds,” said Little.

Three Month Growth. Total deposits increased to $625.3 million at June 30, 2011, from $610.9 million at March 31, 2011, a linked quarter increase of $14.4 million or 2.4%. The Company’s SmartGrowth Deposit Accounts, consisting of checking accounts, money market accounts, and savings accounts, had solid growth. Total SmartGrowth Deposits increased $17.3 million to $455.9 million or 3.9% at June 30, 2011, from $438.7 million at March 31, 2011.

Checking account balances at June 30, 2011 increased $15.8 million, or 8.2%, to $209.1 million from $193.2 million at March 31, 2011.

Twelve Month Growth. Total deposits increased to $625.3 million at June 30, 2011, from $578.1 million at June 30, 2010, a twelve month increase of $47.1 million, or 8.2%. Total SmartGrowth Deposits increased $63.3 million, or 16.1% from $392.6 million at June 30, 2010.

SmartGrowth Deposits amounted to 72.9% of total deposits as of June 30, 2011 compared to 67.9% at June 30, 2010.

Checking account balances at June 30, 2011 increased 23.4% or $39.7 million in the past 12 months. Checking account balances now account for 33.4% of total deposits compared to 29.3% at June 30, 2010.

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 $789 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)
New Iberia, LA
Selected Financial Data
(UNAUDITED)
	THREE MONTHS ENDED
	Jun.			Mar.			Dec.			Sep.			Jun.
Condensed Statements of Income	2011			2011			2010			2010			2010
Interest Income	$	9,758		$	9,736		$	10,003		$	10,163		$	10,299
Interest Expense		2,185		2,363				2,542			2,728			2,969
Net Interest Income		7,573			7,373			7,461			7,435			7,330
Provision for Loan Losses		1,000		1,000			1,150			900				900
Net Interest Income after
Provision for Loan Losses		6,573			6,373			6,311			6,535			6,430
Non Interest Income		3,938			3,832			3,972			3,964			4,153
Non Interest Expense		7,777		7,918				7,583			7,732			7,877
Income Before Gain on Securities
and Sale of Loans		2,734			2,287			2,700			2,767			2,706
Gain(Loss) on Securities		(52	)		8			--			(95	)		--
Gain(Loss) on Sale of Loans		4			10			9			6			7
Income Taxes		896		792				885			831			892
Net Income	$	1,790		$	1,513		$	1,824		$	1,847		$	1,821
Selected Financial Data
Dividends Declared Per Share	$	0.36		$	0.36		$	0.355		$	0.355		$	0.355
Basic Earnings Per Common Share	$	0.86		$	0.73		$	0.88		$	0.89		$	0.87
Diluted Earnings Per Common Share	$	0.85		$	0.72		$	0.87		$	0.88		$	0.87
Annualized Return on Avg. Assets		0.92	%		0.80	%		0.96	%		0.97	%		0.95	%
Annualized Return on Avg. Equity		8.96	%		7.74	%		9.36	%		9.61	%		9.60	%
Annualized Return on Avg.
Tangible Equity (1)		9.40	%		8.13	%		9.84	%		10.12	%		10.12	%
Yield on Interest Earning Assets		5.46	%		5.61	%		5.75	%		5.84	%		5.87	%
Cost of Interest Bearing Liabilities		1.43	%		1.57	%		1.69	%		1.79	%		1.93	%
Spread		4.03	%		4.04	%		4.06	%		4.05	%		3.94	%
Net Interest Margin		4.24	%		4.25	%		4.29	%		4.27	%		4.18	%
Non-Interest Income/Avg. Assets		2.02	%		2.02	%		2.09	%		2.08	%		2.16	%
Non-Interest Expense/Avg. Assets		3.99	%		4.17	%		3.99	%		4.06	%		4.11	%
Quarterly Net Charge-offs/Avg. Loans		0.57	%		0.09	%		0.08	%		0.08	%		0.05	%
Weighted avg. shares Outstanding
Basic		2,073			2,072			2,068			2,074			2,083
Diluted		2,097			2,098			2,089			2,092			2,103
AVERAGE BALANCE SHEET DATA
Total Assets	$	780,213		$	759,993		$	759,858		$	761,191		$	767,379
Earning assets	$	714,528		$	693,747		$	696,304		$	696,494		$	701,756
Loans	$	586,420		$	589,879		$	595,547		$	597,024		$	599,883
Interest-bearing deposits	$	529,664		$	514,771		$	506,887		$	509,572		$	515,165
Total deposits	$	613,778		$	590,664		$	579,902		$	576,373		$	583,576
Total stockholders’ equity	$	79,942		$	78,197		$	77,923		$	76,855		$	75,859

(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	$	79,942		$	78,197		$	77,923		$	76,855		$	75,859
Less average goodwill and other intangible assets,
net of related income taxes		3,671			3,667			3,670			3,673			3,689
Average Tangible Equity	$	76,271		$	74,530		$	74,253		$	73,182		$	72,170

Net Income		1,790			1,513			1,824			1,847			1,821
Plus Amortization of core deposit
intangibles, net of related income taxes		3		2			3			5				5
Net Income, as adjusted	$	1,793		$	1,515		$	1,827		$	1,852		$	1,826

TECHE HOLDING COMPANY
(Dollars in thousands, except per share data)
New Iberia, LA
Selected Financial Data
(UNAUDITED)
	FISCAL YEAR TO DATE (NINE MONTHS) ENDED
	Jun.			Jun.
Condensed Statements of Income	2011			2010			$Change			%Change
Interest Income	$	29,497		$	31,174		$	(1,677	)		(5.4	%)
Interest Expense		7,090			8,976			(1,886	)		(21.0	%)
Net Interest Income		22,407			22,198			209			0.9	%
Provision for Loan Losses		3,150			2,996			154			5.1	%
Net Interest Income after
Provision for Loan Losses		19,257			19,202			55			0.3	%
Non Interest Income		11,743			12,123			(380	)		(3.1	%)
Non Interest Expense		23,277			23,498			(221	)		(0.9	%)
Income Before Gain on Securities
and Sale of Loans		7,723			7,827			(104	)		(1.3	%)
Gain(Loss) on Securities		(44	)		(45	)		1			2.2	%
Gain(Loss) on Sale of Loans		22			7			15			214.3	%
Income Taxes		2,574			2,535			39			1.5	%
Net Income (loss)	$	5,127		$	5,254		$	(127	)		(2.4	%)
Selected Financial Data
Dividends Declared Per Share	$	1.075		$	1.065		$	0.01			0.9	%
Basic Earnings Per Common Share	$	2.48		$	2.51		$	(0.03	)		(1.2	%)
Diluted Earnings Per Common Share	$	2.45		$	2.49		$	(0.04	)		(1.6	%)
Annualized Return on Avg. Assets		0.89	%		0.92	%		(0.03	%)		(3.3	%)
Annualized Return on Avg. Equity		8.69	%		9.37	%		(0.68	%)		(7.3	%)
Annualized Return on Avg.
Tangible Equity (1)		9.13	%		9.89	%		(0.76	%)		(7.7	%)
Yield on Interest Earning Assets		5.61	%		5.96	%		(0.50	%)		(8.4	%)
Cost of Interest Bearing Liabilities		1.57	%		1.94	%		(0.37	%)		(19.1	%)
Spread		4.04	%		4.02	%		0.02	%		0.5	%
Net Interest Margin		4.26	%		4.24	%		0.02	%		0.5	%
Non-Interest Income/Avg. Assets		2.03	%		2.11	%		(0.09	%)		(4.3	%)
Non-Interest Expense/Avg. Assets		4.05	%		4.11	%		(0.06	%)		(1.5	%)
Quarterly Net Charge-offs/Avg. Loans		0.57	%		0.05	%		0.52	%		1,000.4	%
Weighted avg. shares Outstanding
Basic		2,071			2,094			(23	)		(1.1	%)
Diluted		2,094			2,112			(18	)		(0.9	%)
AVERAGE BALANCE SHEET DATA
Total Assets	$	766,684		$	762,872		$	3,812			0.5	%
Earning assets	$	701,527		$	697,509		$	4,018			0.6	%
Loans	$	590,637		$	599,845		$	(9,208	)		(1.5	%)
Interest-bearing deposits	$	517,079		$	513,080		$	3,999			0.8	%
Total deposits	$	594,256		$	578,860		$	15,396			2.7	%
Total stockholders’ equity	$	78,683		$	74,748		$	3,935			5.3	%

(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	$	78,683		$	74,748		$	3,935			5.3	%
Less average goodwill and other intangible assets,
net of related income taxes		3,667			3,697			(30	)		(0.8	%)
Average Tangible Equity	$	75,016		$	71,051		$	3,965			5.6	%

Net Income	$	5,127		$	5,254			(127	)		(2.4	%)
Plus Amortization of core deposit
intangibles, net of related income taxes		9			15			(6	)		(40.0	%)
Net Income, as adjusted	$	5,136		$	5,269		$	(133	)		(2.5	%)

TECHE HOLDING COMPANY
(Dollars in thousands, except per share data)
New Iberia, LA
Balance Sheet
(UNAUDITED)
	Jun. 2011			Mar. 2011			Dec. 2010			Sep. 2010			Jun. 2010
SmartGrowth Loans
Consumer	$	109,476		$	109,092		$	111,139		$	111,571		$	110,855
Commercial		201,324			207,509			208,797			212,933			212,762
Home Equity		51,293			51,045			52,182			53,405			55,860
SmartMortgage Loans		88,019		88,799				89,389			86,959			86,624
Total SmartGrowth Loans		450,112			456,445			461,507			464,868			466,101
Mortgage Loans (owner occupied conforming)		133,264			131,708			132,224			131,023			131,590
		583,376			588,153			593,731			595,891			597,691
Allowance for Loan Losses		-8,123			-10,452			-9,953			-9,256			-8,830
Loans Receivable, Net		575,253			577,701			583,778			586,635			588,861

Cash and Securities		154,061			144,465			110,405			115,217			121,783
Goodwill and Other Intangibles		3,673			3,678			3,682			3,687			3,692
Foreclosed Real Estate		2,694			2,039			2,079			1,181			1,547
Other		53,323		54,269				53,757			54,804			49,601
TOTAL ASSETS	$	789,004		$	782,152		$	753,701		$	761,524		$	765,484

SmartGrowth Deposits
Checking	$	209,080		$	193,244		$	186,240		$	173,206		$	169,396
Money Market		55,280			56,618			55,557			60,246			62,643
Savings		191,586			188,819			169,326			166,734			160,567
Total Smart Growth Deposits		455,946			438,681			411,123			400,186			392,606
Time Deposits		169,377			172,211			172,316			179,169			185,496
Total Deposits		625,323			610,892			583,439			579,355			578,102

FHLB Advances		79,533			83,585			87,756			100,017			106,445
Other Liabilities		5,567			10,097			6,009			6,639			6,388
Stockholders’ Equity		78,581		77,578				76,497			75,513			74,549
TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY	$	789,004		$	782,152		$	753,701		$	761,524		$	765,484

Ratio of Equity to Assets		9.96	%		9.92	%		10.15	%		9.92	%		9.74	%
Tangible Equity Ratio (1)		9.54	%		9.49	%		9.71	%		9.48	%		9.30	%
Total Risk-Based Capital Ratio		14.49	%		13.94	%		13.79	%		13.52	%		13.30	%
Book Value per Common Share	$	37.87		$	37.23		$	36.81		$	36.19		$	35.45
Tangible Book Value Per Common Share (1)	$	36.11		$	35.47		$	35.04		$	34.43		$	33.70
Shares Outstanding (in thousands)		2,075			2,084			2,078			2,082			2,091
Non-performing Assets/Total Assets		1.82	%		2.22	%		2.27	%		2.06	%		2.15	%
ALLL/Loans		1.39	%		1.78	%		1.68	%		1.55	%		1.48	%
ALLL/NPLs		69.94	%		68.32	%		66.36	%		63.92	%		59.92	%

(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.

Stockholders’ Equity	$	78,581		$	77,578		$	76,497		$	75,513		$	74,549
Less goodwill and other Intangible
assets, net of related income taxes		-3,661		__-3,664			_ -3,670			_ -3,673				-3,677
Tangible Stockholders’ Equity	$	74,920		$	73,914		$	72,827		$	71,840		$	70,872

Total Assets	$	789,004		$	782,152		$	753,701		$	761,524		$	765,484
Less goodwill and other Intangible
assets, net of related income taxes		-3,661		-3,664				-3,670			-3,673			-3,677
Total Tangible Assets	$	785,343		$	778,488		$	750,031		$	757,851		$	761,807

Quarter-End Loan Data	Total		Charge-		Charge-			90 Days +		90 Days +
June 30, 2011	Loans		Offs		Offs			Non Accrual		Non Accrual
	Dollars		Dollars		Percentage			Dollars		Percentage
Real Estate Loans
Construction	$	17,158	$	51		0.30	%	$	1,052		6.13	%
Permanent, Secured by:
1-4 Dwelling Units:		19,942		--		0.00	%		69		0.35	%
Revolving, Open-End Loans (HELOC)
All Other
Secured by First Liens		307,948		521		0.17	%		3,367		1.09	%
Secured by Junior Liens		9,952		--		0.00	%		35		0.35	%
Multifamily (5+ Dwelling Units)		21,309		898		4.21	%		873		4.10	%
Nonresidential Property (Except Land)		86,424		333		0.39	%		368		0.43	%
Land		36,738		1,367		3.72	%		5,413		14.73	%
Consumer		20,472		--		0.00	%		69		0.34	%
Commercial		16,266		1,367		8.40	%		5,344		32.85	%
Subtotal – Real Estate Loans	$	499,471	$	3,170		0.63	%	$	11,177		2.24	%

Non-Real Estate Loans:
Commercial Loans	$	25,433	$	5		0.02	%		--		0.00	%
Consumer Loans:
Loans on Deposits		3,889		--		0.00	%		3		0.08	%
Auto Loans		2,266		--		0.00	%		17		0.75	%
Mobile Home Loans		38,585		97		0.25	%		372		0.96	%
Other		13,732		57		0.42	%		94		0.68	%
Subtotal – Non Real Estate Loans	$	83,905	$	159		0.19	%		486		0.58	%

Gross Loans	$	583,376	$	3,329		0.57	%	$	11,663		2.00	%

Non-accruals	$	10,863
90 + Days Past Due		800
OREO & Foreclosed		2,774
Nonperforming Assets (Net)	$	14,437
Performing TDRs		1,711

Quarter-End Loan Data	Total		Charge-			Charge-			90 Days +		90 Days +
March 31, 2011	Loans		Offs			Offs			Non Accrual		Non Accrual
	Dollars		Dollars			Percentage			Dollars		Percentage
Real Estate Loans
Construction	$	16,462	$	--			0.00	%	$	1,021		6.20	%
Permanent, Secured by:
1-4 Dwelling Units:
Revolving, Open-End Loans (HELOC)		18,691		(15	)		-0.08	%		27		0.14	%
All Other
Secured by First Liens		307,532		112			0.04	%		3,038		0.99	%
Secured by Junior Liens		10,244		23			0.22	%		30		0.29	%
Multifamily (5+ Dwelling Units)		22,358		--			0.00	%		897		4.01	%
Nonresidential Property (Except Land)		90,532		228			0.25	%		884		0.98	%
Land		38,923		--			0.00	%		5,025		12.91	%
Consumer		20,059		--			0.00	%	59		0.29%
Commercial		18,864		--			0.00	%	4,966		26.33%
Subtotal – Real Estate Loans	$	504,742	$	348			0.07	%	$	10,922	2.16%

Non-Real Estate Loans:
Commercial Loans	$	24,813	$	128			0.52	%	$	835		3.37	%
Consumer Loans:
Loans on Deposits		3,921		--			0.00	%		--		0.00	%
Auto Loans		2,428		--			0.00	%		7		0.29	%
Mobile Home Loans		38,925		25			0.06	%		471		1.21	%
Other		13,324	--				0.00	%	167			1.25	%
Subtotal – Non Real Estate Loans	$	83,411	$	153			0.18	%	$	1,480		1.77	%

Gross Loans	$	588,104	$	501			0.09	%	$	12,402		2.11	%

Non-accruals		11,305
90 + Days Past Due		1,097
OREO & Foreclosed		2,039
Nonperforming Assets (Net)	$	14,441

Quarter-End Loan Data	Total		Charge-			Charge-			90 Days +		90 Days +
December 31, 2010	Loans		Offs			Offs			Non Accrual		Non Accrual
	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		308,088		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	$	508,413		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	$	593,731	$	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


Quarter-End Loan Data	Total		Charge-			Charge-			90 Days +		90 Days +
September 30, 2010	Loans		Offs			Offs			Non Accrual		Non Accrual
	Dollars		Dollars			Percentage			Dollars		Percentage
Real Estate Loans
Construction	$	21,310	$	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		303,587		--			0.00	%		4,829		1.59	%
Secured by Junior Liens		11,048		(4	)		-0.04	%		108		0.98	%
Multifamily (5+ Dwelling Units)		24,357		--			0.00	%		1,522		6.25	%
Nonresidential Property (Except Land)		85,718		257			0.30	%		118		0.14	%
Land		39,555		23			0.06	%		6,100		15.42	%
Consumer		20,044		--			0.00	%		58		0.29	%
Commercial		19,511		23			0.12	%		6,042		30.97	%
Subtotal – Real Estate Loans	$	504,105	$	429			0.09	%	$	13,743		2.73	%

Non-Real Estate Loans:
Commercial Loans	$	30,929		--			0.00	%	$	154		0.50	%
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	%		95		0.71	%
Subtotal – Non Real Estate Loans		91,786		45			0.05	%		738		0.80	%

Gross Loans	$	595,891	$	474			0.08	%	$	14,481		2.43	%

Non-accruals		13,676
90 + Days Past Due		805
OREO & Foreclosed	1,201
Nonperforming Assets (Net)	$	15,682

Loans: Linked Quarter Comparison
Average Loan Balances & Yields	06/30/2011		06/30/2011			03/31/2011		03/31/2011			Change			Change
	Balance		Yield			Balance		Yield			Balance			Yield
Real Estate Loans
1-4 Family	$	352,181		5.70	%	$	352,801		5.78	%	$	(620	)		-0.08	%
Commercial		130,800		5.58	%		133,005		5.48	%		(2,205			0.10	%
Total Real Estate Loans	$	482,981		5.67	%	$	485,806		5.70	%	$	(2,825	)		-0.03	%

Non-Real Estate Loans
Commercial	$	24,813		5.97	%	$	24,876		5.78	%	$	(63	)		0.19	%
Consumer		78,626		9.51	%		79,197		9.23	%		(571	)		0.28	%
Total Non-Real Estate Loans		103,439		8.66	%		104,073		8.40	%		(634	)		0.26	%

Total All Loans	$	586,420		6.20	%	$	589,879		6.17	%	$	(3,459	)		0.03	%


Loans: Prior Year Comparison
Average Loan Balances & Yields	06/30/2011		06/30/2011			06/30/2010		06/30/2010			Change			Change
	Balance		Yield			Balance		Yield			Balance			Yield
Real Estate Loans
1-4 Family	$	352,181		5.70	%	$	349,849		5.97	%	$	2,332			-0.27	%
Commercial		130,800		5.58	%		139,442		5.74	%		(8,642	)		-0.16	%
	$	482,981		5.67	%	$	489,291		5.90	%	$	(6,310	)		-0.23	%

Non-Real Estate Loans
Commercial	$	24,813		5.97	%		29,964		6.35	%	$	(5,151	)		-0.38	%
Consumer		78,626		9.51	%		80,629		9.35	%		(2,003	)		0.16	%
		103,439		8.66	%	$	110,593		8.54	%	$	(7,154	)		0.12	%

Total All Loans	$	586,420		6.20	%	$	599,884		6.39	%	$	(13,464	)		-0.19	%

Interest-bearing Liabilities: Linked Quarter Comparison
Average balances	06/30/2011		06/30/2011			03/31/2011		03/31/2011			Change			Change			%Balance
	$Balance		Avg. Yield			$Balance		Avg. Yield			$Balance			Avg. Yield			Change
NOW Accounts	$	112,611		0.18	%	$	110,357		0.17	%	$	2,254			0.01	%		2.0	%
Non-interest bearing Deposits		84,114		0.00	%		75,893		0.00	%		8,221			0.00	%		10.8	%
Checking Total	$	196,725		0.10	%	$	186,250		0.10	%	$	10,475			0.00	%		5.6	%

Savings Accounts	$	190,379		0.38	%	$	176,515		0.55	%	$	13,864			-0.17	%		7.9	%
Money Market Accounts		55,619		0.27	%		56,670		0.35	%		(1,051	)		-0.08	%		-1.9	%

Total Smart Growth Deposits	$	442,723		0.24	%	$	419,435		0.32	%	$	23,288			-0.08	%		5.6	%

Time Deposits	$	171,055		2.33	%	$	171,229		2.47	%		(174	)		-0.14	%		-0.1	%

Total Deposits	$	613,778		0.82	%	$	590,664		0.94	%	$	23,114			-0.12	%		3.9	%

FHLB Advances	$	79,879		4.61	%	$	85,550		4.53	%	$	(5,671	)		0.08	%		-6.6	%

Total Interest-bearing liabilities	$	609,543		1.43	%	$	600,321		1.57	%	$	9,222			-0.14	%		1.5	%

Non-interest bearing Deposits	$	84,114		0.00	%	$	75,893		0.00	%	$	8,221			0.00	%		10.8	%


Interest-bearing Liabilities: Prior Year Comparison
Average balances	06/30/2011		06/30/2011			06/30/2010		06/30/2010			Change			Change			%Balance
	$Balance		Avg. Yield			$Balance		Avg. Yield			$Balance			Avg. Yield			Change
NOW Accounts	$	112,611		0.18	%	$	106,087		0.46	%	$	6,524			-0.28	%		6.1	%
Non-interest bearing Deposits		84,114		0.00	%		68,411		0.00	%		15,703			0.00	%		23.0	%
Checking Total	$	196,725		0.10	%	$	174,498		0.28	%	$	22,227			-0.18	%		12.7	%

Savings Accounts	$	190,379		0.38	%	$	154,065		1.00	%	$	36,314			-0.62	%		23.6	%
Money Market Accounts		55,619		0.27	%		65,678		0.39	%		(10,059	)		-0.12	%		-15.3	%

Total Smart Growth Deposits	$	442,723		0.24	%	$	394,241		0.58	%	$	48,482			-0.34	%		12.3	%

Time Deposits	$	171,055		2.33	%	$	189,335		2.65	%	$	(18,280	)		-0.32	%		-9.7	%

Total Deposits	$	613,778		0.82	%	$	583,576		1.25	%	$	30,202			-0.43	%		5.2	%

FHLB Advances	$	79,879		4.61	%	$	101,543		4.52	%	$	(21,664	)		0.09	%		-21.3	%

Total Interest-bearing liabilities	$	609,543		1.43	%	$	616,708		1.92	%	$	(7,165	)		-0.49	%		-1.2	%

Non-interest bearing Deposits	$	84,114		0.00	%	$	68,411		0.00	%	$	15,703			0.00	%		23.0	%

Quarter-End Loan Quality Details
June 30, 2011	Total							Special
(In Thousands)	Loans		Classified		% Total			Mention		% Total			Pass		% Total
Commercial Loans
Commercial Land	$	16,266	$	5,344		32.9	%	$	170		1.0	%	$	10,752		66.1	%
Commercial Construction		7,819		1,052		13.4	%		382		4.9	%		6,385		81.7	%
Commercial Real Estate		107,733		2,596		2.4	%		3,234		3.0	%		101,903		94.6	%
Commercial Non Real Estate		25,433		83		0.3	%		530		2.1	%		24,820		97.6	%
Total Commercial	$	157,251	$	9,075		5.8	%	$	4,316		2.7	%	$	143,860		91.5	%

Residential Loans
Residential Construction	$	9,339		-		0.0	%		-		0.0	%	$	9,339		100.0	%
Residential	$	337,842	$	3,782		1.1	%		184		0.1	%	$	333,876		98.8	%
Total Residential	$	347,181	$	3,782		1.1	%	$	184		0.0	%	$	343,215		98.9	%

Consumer Loans
Mobile Homes	$	38,585	$	371		0.9	%	$	66		0.2	%	$	38,148		98.9	%
Consumer Other		40,359		170		0.4	%		-		0.0	%		40,189		99.6	%
Total Consumer	$	78,944	$	541		0.7	%	$	66		0.1	%	$	78,337		99.2	%

Total All Loans	$	583,376	$	13,398		2.3	%	$	4,566		0.8	%	$	565,412		96.9	%

Quarter-End Loan Quality Details
March 31, 2011	Total							Special
(In Thousands)	Loans		Classified		% Total			Mention		% Total			Pass		% Total
Commercial Loans
Commercial Land	$	18,864	$	6,348		33.7	%	$	727		3.8	%	$	11,789		62.5	%
Commercial Construction		8,402		1,072		12.8	%		375		4.4	%		6,955		82.8	%
Commercial Real Estate		112,890		4,386		3.9	%		3,134		2.8	%		105,370		93.3	%
Commercial Non Real Estate		24,813		104		0.4	%		2,038		8.2	%		22,671		91.4	%
Total Commercial	$	164,969	$	11,910		7.2	%	$	6,274		3.8	%	$	146,785		89.0	%

Residential Loans
Residential Construction		8,060		-		0.0	%		-		0.0	%		8,060		100.0	%
Residential		336,467		3,994		1.2	%		285		0.1	%		332,188		98.7	%
Total Residential	$	344,527	$	3,994		1.2	%	$	285		0.1	%	$	340,248		98.8	%

Consumer Loans
Mobile Homes		38,925		471		1.2	%		-		0.0	%		38,454		98.8	%
Consumer Other		39,732		232		0.6	%		-		0.0	%		39,500		99.4	%
Total Consumer		78,657		703		0.9	%		-		0.0	%		77,954		99.1	%

Total All Loans	$	588,153	$	16,607		2.8	%	$	6,559		1.1	%	$	564,987		96.1	%

TECHE HOLDING CO - FORM 8-K - EX-99 - EXHIBIT 99 - PRESS RELEASE - July 29, 2011

Attached files

TECHE HOLDING CO Reports