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

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8-K - FORM 8-K 01-26-12 TECHE HOLDING COMPANY - TECHE HOLDING CO	f8k_012612-0123.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 December 31, 2011, the first quarter of fiscal year 2012.

Earnings for the quarter ended December 31, 2011 amounted to $1.8 million or $0.85 per diluted share, compared to $1.8 million or $0.87 per diluted share for the same quarter in fiscal 2011, a decrease of $0.02 per diluted share, or 2.3%.

“We had solid earnings this quarter on top of record EPS for fiscal years 2011, 2010 and 2009,” said Little. We are very pleased that we have been able to post strong and consistent earnings for over three years. The strength of the south Louisiana economy has been a big help in boosting loan growth.”

The Company reported the following points of interest:

·	Average earning assets increased 2.6% or $18.7 million to $738.1 million as compared to the linked quarter.

·	Total loans increased 3.9% or $24.0 million to $632.6 million at December 31, 2011 as compared to the linked quarter.

·	SmartGrowth loans increased 1.4% or $6.5 million as compared to the linked quarter and 1.1% or $5.0 million compared to a year ago. SmartGrowth loans now amount to 73.7% of total loans, compared to 77.7% a year ago.

·	Net charge offs for the quarter amounted to 0.05% of average loans.

·	SmartGrowth Deposits increased 0.6% over the linked quarter and 6.9% compared to a year ago. SmartGrowth Deposits amounted to 73.3% of total deposits, compared to 72.9% at September 30, 2011 and 70.5% a year ago.

·	Checking Account Balances increased 4.3% compared to the linked quarter and 6.9% compared to December 31, 2010.

·	The average yield on all deposits was 0.76% for the quarter compared to 0.77% for the linked quarter and 1.01% a year ago.

·	Quarterly operating revenue remained stable at $11.5 million, as compared to the previous four quarters.

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·	Tangible book value per share increased to $37.47, an increase of 1.2% or $0.45 for the linked quarter and 6.9% or $2.43 year-over-year.

Capital

Over the past twelve months, stockholders’ equity increased 6.0% to a record $81.1 million while assets increased 7.9% to a record $813.5 million. The tangible equity ratio at December 31, 2011 has decreased to 9.56% compared to 9.71% a year ago. However, tangible book value per common share has increased to a record $37.47, an increase of 6.9% compared to a year ago. Risk based capital increased to 14.09% compared to 13.79% a year ago; and the equity to asset ratio decreased to 9.97% from 10.15% a year ago.

“While we are extremely pleased that we have been able to post record earnings for three consecutive years, we also have been mindful of the possibility that interest rates could rise in the future,” said Little. “To help prepare for that, we currently maintain an asset sensitive position, primarily due to our SmartGrowth Deposits, our Consumer & Commercial Loan portfolios, our long-term advances and the long-term nature of our time deposits.”

QUARTERLY COMPARISON	Dec ‘11			Sep '11			Jun '11			Mar '11			Dec '10
Stockholders’ Equity (in millions)	$	81.1		$	80.0		$	78.6		$	77.6		$	76.5
Ratio of Equity to Assets		9.97	%		10.08	%		9.96	%		9.92	%		10.15	%
Tangible Equity Ratio		9.56	%		9.67	%		9.54	%		9.49	%		9.71	%
Total Risk-Based Capital Ratio		14.09	%		14.30	%		14.26	%		13.94	%		13.79	%
Book Value per Common Share	$	39.24		$	38.79		$	37.87		$	37.23		$	36.81
Tangible Book Value Per Common Share	$	37.47		$	37.02		$	36.11		$	35.47		$	35.04
Total Assets (in millions)	$	813.5		$	793.2		$	789.0		$	782.2		$	753.7

Asset Quality

The following tables set forth asset quality ratios and allowance for loan loss activity for each of the past five quarters:

Net Charge offs, ALLL, NPAs QUARTERLY COMPARISON	Dec ‘11			Sep ‘11			Jun ‘11			Mar ‘11			Dec '10
Net Charge-offs/Average Loans		0.05	%		0.09	%		0.57	%		0.09	%		0.08	%
ALLL*/NPLs		73.72	%		76.63	%		69.94	%		68.32	%		66.36	%
ALLL*/NPAs		67.37	%		67.67	%		56.45	%		60.29	%		58.11	%
ALLL*/Loans		1.33	%		1.37	%		1.39	%		1.78	%		1.68	%
NPAs/Assets		1.53	%		1.55	%		1.82	%		2.22	%		2.27	%

*ALLL figures include specific reserves

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

Allowance for Loan Loss Provision & Charge-offs QUARTERLY COMPARISON (in 000's)	Dec ‘11		Sep '11		Jun '11		Mar '11		Dec '10
Beginning ALLL	$	8,331	$	8,123	$	10,452	$	9,953	$	9,256
Provision for Loan Losses		350		750		1,000		1,000		1,150
Net Charge-offs		289		542		3,329		501		453
Ending ALLL	$	8,392	$	8,331	$	8,123	$	10,452	$	9,953
Ending ALLL (net of specific reserves)	$	8,142	$	7,783	$	8,075	$	7,455	$	7,046

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The allowance for loan losses was 1.33% of total loans, or $8.4 million, at December 31, 2011 compared to 1.37% of total loans, or $8.3 million at September 30, 2011 and 1.68% of total loans, or $10.0 million at December 31, 2010.

Net charge-offs for the quarter were $0.3 million, or 0.05% of average loans, compared to $0.5 million or 0.08% of average loans for the same period a year ago. For the twelve months ended December 31, 2011, net charge offs were $4.7 million or 0.78% of average loans, compared to $1.6 million or 0.27% of loans for the twelve months ended December 31, 2010.

Non-performing assets remained relatively the same at $12.4 million, or 1.53% of total assets at December 31, 2011, compared to $12.3 million, or 1.55% of total assets at September 30, 2011 and $17.1 million, or 2.27% of total assets a year ago, primarily due to a small decrease in the portfolio of foreclosed assets, which offset a small increase in non-performing loans.

Net Interest Income QUARTERLY COMPARISON (In 000’s)	Dec ‘11		Sep ‘11		Jun ‘11		Mar ‘11		Dec '10
Interest Income	$	9,766	$	9,861	$	9,758	$	9,736	$	10,003
Interest Expense		2,080		2,078		2,185		2,363		2,542
Net Interest Income	$	7,686	$	7,783	$	7,573	$	7,373	$	7,461

Interest income decreased compared to the linked quarter primarily due to a decrease in the yield on earning assets. Interest expense remained relatively stable compared to the linked quarter.

Net Interest Margin and Spread QUARTERLY COMPARISON	Dec ‘11			Sep '11			Jun '11			Mar '11			Dec '10
Yield on Earning Assets		5.30	%		5.48	%		5.46	%		5.61	%		5.75	%
Cost of Interest Bearing Liabilities		1.31	%		1.36	%		1.43	%		1.57	%		1.69	%
Spread		3.99	%		4.13	%		4.03	%		4.04	%		4.06	%
Net Interest Margin		4.17	%		4.33	%		4.24	%		4.25	%		4.29	%

Net interest margin amounted to 4.17% for the three-month period ended December 31, 2011 compared to 4.29% for the three-months ended December 31, 2010. The decrease was primarily due to a decrease in the interest rates earned on loans, primarily newly originated loans, that was only partially offset by a decrease in interest rates paid on deposits and advances.

Spread amounted to 3.99% for the three month period ended December 31, 2011, compared to 4.06% for the same period in the previous year. Compared to the same quarter last year, average yield on earnings assets decreased 45 basis points from 5.75% to 5.30%, while average cost of funds decreased 38 basis points from 1.69% to 1.31%.

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 identical to the same quarter in 2010.

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

Operating Revenue QUARTERLY COMPARISON (in millions)	Dec ‘11		Sep '11		Jun '11		Mar '11		Dec ‘10
Net Interest Income	$	7.7	$	7.8	$	7.6	$	7.4	$	7.5
Non Interest Income		3.8		3.8		3.9		3.8		4.0
Operating Revenue	$	11.5	$	11.6	$	11.5	$	11.2	$	11.5

Non Interest Income

Non-interest income remained stable at $3.8 million compared to$3.8 million in the linked quarter and down slightly from $4.0 million for the same quarter in 2010. This amounted to 1.88% of average assets for the quarter, compared to 2.01% for the linked quarter and 2.09% a year ago.

Non-Interest Income & Expense QUARTERLY COMPARISON (in thousands)	Dec ‘11			Sep ‘11			Jun ‘11			Mar '11			Dec '10
Interchange fee Income		778			830			881			820			786
Other Non-Interest Income		2,990			3,136			3,057			3,012			3,186
Total Non-Interest Income	$	3,768		$	3,966		$	3,938		$	3,832		$	3,972
Total Non-Interest Income/ Avg. Assets		1.88	%		1.94	%		1.99	%		2.03	%		2.10	%
Non-Interest Expense		8,447			7,855			7,777			7,918			7,583
Non-Interest Expense/Avg. Assets		4.21	%		3.99	%		3.99	%		4.17	%		3.99	%

Non Interest Expense

For the quarter, non-interest expense was $8.4 million or 4.21% of average assets, compared to the linked quarter of $7.9 million or 3.99% of average assets, an increase of 7.5%, primarily due to marketing expense and a decrease in values on foreclosed real estate. Compared to the same quarter in fiscal 2010, non-interest expense increased by $0.8 million from $7.6 million to $8.4 million, an increase of 11.4% primarily due to expenses related to compensation, marketing, data processing and charge-offs related to adjustments in values of foreclosed assets.

Net Income and Dividends

On November 30, 2011, the board of directors declared a $0.36 per share quarterly dividend, its sixty-sixth consecutive. Based on the closing price of the Company’s common stock of $34.10 on that date, the annualized dividend yield was 4.2%. Since 2003, the Company has increased dividends for nine consecutive years.

QUARTERLY COMPARISON (In 000’s)	Dec ‘11		Sep '11		Jun '11		Mar '11		Dec '10
Dividends Declared Per Share	$	0.36	$	0.36	$	0.36	$	0.36	$	0.355
Basic Earnings Per Common Share	$	0.86	$	1.02	$	0.86	$	0.73	$	0.88
Diluted Earnings Per Common Share	$	0.85	$	1.01	$	0.85	$	0.72	$	0.87

Loans

QUARTERLY COMPARISON (In 000,000’s)	Dec ‘11		Sep '11		Jun '11		Mar '11		Dec '10
SmartGrowth Loans
Consumer	$	107.4	$	108.8	$	109.5	$	109.1	$	111.1
Commercial		213.6		209.5		201.3		207.5		208.8
Home Equity		47.3		48.8		51.3		51.0		52.2
SmartMortgages	98.2		92.9		88.0		88.8		89.4
Total SmartGrowth Loans	$	466.5	$	460.0	$	450.1	$	456.5	$	461.5
Mortgage Loans (owner occupied conforming)	66.1		148.6		133.3		131.7		32.2
Total Loans	$	632.6	$	608.6	$	583.4	$	588.2	$	593.7

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Linked Quarter Comparison. Gross loans receivable increased to $632.6 million at December 31, 2011, from $608.6 million at September 30, 2011, an increase of $24.0 million, or 3.9% compared to the linked quarter, primarily due to an increase in 15-year one-to-four family mortgage loans and adjustable rate mortgage loans. SmartGrowth Loans, consisting of commercial loans, home equity loans, SmartMortgage loans and consumer loans, were $466.5 million, or 73.7% of total loans at December 31, 2011, compared to $460.0 million, or 75.6% at September 30, 2011, a three month increase of $6.5 million, or 1.4%.

Commercial loan balances at December 31, 2011 amounted to $213.6 million, compared to $209.5 million at September 30, 2011, a three month increase of $4.1 million or 2.0%. Consumer loan balances at December 31, 2011 amounted to $107.4 million, compared to $108.8 million at September 30, 2011, a linked quarter decrease of $1.4 million, or 1.3%.

One Year Comparison. Gross loans receivable increased to $632.6 million at December 31, 2011 from $593.7 million at December 31, 2010 a twelve month increase of $38.9 million, or 6.6%. SmartGrowth Loans increased to $466.5 million at December 31, 2011, from $461.5 million at December 31, 2010, a twelve month increase of $5.0 million, or 1.1%.

Commercial loan balances at December 31, 2011 amounted to $213.6 million, compared to $208.8 million at December 31, 2010 a twelve month increase of $4.8 million, or 2.3%. Consumer loan balances at December 31, 2011 amounted to $107.4 million, compared to $111.1 million at December 31, 2010 a twelve month decrease of $3.7 million, or 3.3%.

Deposits

QUARTERLY COMPARISON (In 000,000’s)	Dec ‘11		Sep '11		Jun '11		Mar '11		Dec ‘10
SmartGrowth Deposits
Checking	$	199.0	$	190.8	$	209.1	$	193.2	$	186.2
Money Market		52.0		55.0		55.3		56.6		55.6
Savings		188.3		190.7		191.6		188.8		169.3
Total SmartGrowth Deposits	$	439.3	$	436.5	$	455.9	$	438.7	$	411.1
Time Deposits		160.0		162.1		169.4		172.2		172.3
Total Deposits	$	599.3	$	598.6	$	625.3	$	610.9	$	583.4

Linked Quarter Comparison. Total deposits increased to $599.3 million at December 31, 2011, from $598.6 million at September 30, 2011, a linked quarter increase of $0.7 million or 0.1%. The Company’s SmartGrowth Deposit Accounts, consisting of checking accounts, money market accounts, and savings accounts increased $2.8 million to $439.3 million or 0.6% at December 31, 2011, from $436.5 million at September 30, 2011.

Checking account balances at December 31, 2011 increased $8.2 million, or 4.3%, to $199.0 million from $190.8 million at September 30, 2011

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One Year Comparison. Total deposits increased to $599.3 million at December 31, 2011, from $583.4 million at December 31, 2010, a twelve month increase of $15.9 million, or 2.7%. Total SmartGrowth Deposits increased $28.2 million, or 6.9% from $411.1 million at December 31, 2010 to $439.3 million at December 31, 2011.

SmartGrowth Deposits amounted to 73.3% of total deposits as of December 31, 2011 compared to 70.5% at December 31, 2010

Checking account balances have increased 6.9%, or $12.8 million, in the past 12 months from $186.2 million at December 31, 2010 to $199.0 million at December 31, 2011. Checking account balances at December 31, 2011 accounted for 33.2% of total deposits compared to 32.0% at December 31, 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 $813 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.

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TECHE HOLDING COMPANY
(Dollars in thousands, except per share data)
New Iberia, LA
Statements of Income
(UNAUDITED)
	THREE MONTHS ENDED
	Dec.			Sep.			Jun.			Mar.			Dec.
Condensed Statements of Income	2011			2011			2011			2011			2010
Interest Income	$	9,766		$	9,861		$	9,758		$	9,736		$	10,003
Interest Expense		2,080			2,078			2,185		2,363				2,542
Net Interest Income		7,686			7,783			7,573			7,373			7,461
Provision for Loan Losses		350			750			1,000		1,000			1,150
Net Interest Income after
Provision for Loan Losses		7,336			7,033			6,573			6,373			6,311
Non Interest Income		3,768			3,824			3,890			3,850			3,981
Non Interest Expense		8,447			7,855			7,777		7,918				7,583
Income Before Income Taxes		2,657			3,002			2,686			2,305			2,709
Income Taxes		885			900			896		792				885
Net Income	$	1,772		$	2,102		$	1,790		$	1,513		$	1,824
Selected Financial Data
Dividends Declared Per Share	$	0.36		$	0.36		$	0.36		$	0.36		$	0.355
Basic Earnings Per Common Share	$	0.86		$	1.02		$	0.86		$	0.73		$	0.88
Diluted Earnings Per Common Share	$	0.85		$	1.01		$	0.85		$	0.72		$	0.87
Annualized Return on Avg. Assets		0.88	%		1.07	%		0.92	%		0.80	%		0.96	%
Annualized Return on Avg. Equity		8.86	%		10.40	%		8.96	%		7.74	%		9.36	%
Annualized Return on Avg.
Tangible Equity (1)		9.30	%		10.90	%		9.40	%		8.13	%		9.84	%
Yield on Interest Earning Assets		5.30	%		5.48	%		5.46	%		5.61	%		5.75	%
Cost of Interest Bearing Liabilities		1.31	%		1.36	%		1.43	%		1.57	%		1.69	%
Spread		3.99	%		4.13	%		4.03	%		4.04	%		4.06	%
Net Interest Margin		4.17	%		4.33	%		4.24	%		4.25	%		4.29	%
Non-Interest Income/Avg. Assets		1.88	%		1.94	%		1.99	%		2.03	%		2.10	%
Non-Interest Expense/Avg. Assets		4.21	%		3.99	%		3.99	%		4.17	%		3.99	%
Quarterly Net Charge-offs/Avg. Loans		0.05	%		0.09	%		0.57	%		0.09	%		0.08	%
Weighted avg. shares Outstanding
Basic		2,059			2,064			2,073			2,072			2,068
Diluted		2,078			2,085			2,097			2,098			2,089
AVERAGE BALANCE SHEET DATA
Total Assets	$	803,024		$	787,782		$	780,213		$	759,993		$	759,858
Earning assets	$	738,111		$	719,384		$	714,528		$	693,747		$	696,304
Loans	$	621,073		$	591,736		$	586,420		$	589,879		$	595,547
Interest-bearing deposits	$	513,104		$	520,489		$	529,664		$	514,771		$	506,887
Total deposits	$	594,376		$	607,949		$	613,778		$	590,664		$	579,902
Total stockholders’ equity	$	79,993		$	80,857		$	79,942		$	78,197		$	77,923

(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	$	79,993		$	80,857		$	79,942		$	78,197		$	77,923
Less average goodwill and other intangible assets,
net of related income taxes		3,667			3,671			3,671			3,667			3,670
Average Tangible Equity	$	76,326		$	77,186		$	76,271		$	74,530		$	74,253

Net Income		1,772			2,102			1,790			1,513			1,824
Plus Amortization of core deposit
intangibles, net of related income taxes		2			2			3		2			3
Net Income, as adjusted	$	1,774		$	2,104		$	1,793		$	1,515		$	1,827

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TECHE HOLDING COMPANY
(Dollars in thousands, except per share data)
New Iberia, LA
Balance Sheet
(UNAUDITED)
(Dollars in Thousands Except Share Data)
	Dec. 2011			Sep. 2011			Jun. 2011			Mar. 2011			Dec. 2010
SmartGrowth Loans
Consumer	$	107,399		$	108,849		$	109,476		$	109,092		$	111,139
Commercial		213,659			209,460			201,324			207,509			208,797
Home Equity		47,261			48,799			51,293			51,045			52,182
SmartMortgage Loans	98,221				92,910			88,019		88,799				89,389
Total SmartGrowth Loans		466,540			460,018			450,112			456,445			461,507
Mortgage Loans (owner occupied conforming)		166,088			148,584			133,264			131,708			132,224
		632,628			608,602			583,376			588,153			593,731
Allowance for Loan Losses	(8,392		)	(8,331		)	(8,123		)	(10,452		)		(9,953	)
Loans Receivable, Net		624,236			600,271			575,253			577,701			583,778

Cash and Securities		130,126			134,902			154,061			144,465			110,405
Goodwill and Other Intangibles		3,667			3,670			3,673			3,678			3,682
Foreclosed Real Estate		1,012			1,405			2,694			2,039			2,079
Other	54,504			52,955				53,323		54,269				53,757
TOTAL ASSETS	$	813,545		$	793,203		$	789,004		$	782,152		$	753,701

SmartGrowth Deposits
Checking	$	199,021		$	190,822		$	209,080		$	193,244		$	186,240
Money Market		52,019			54,970			55,280			56,618			55,557
Savings		188,303			190,727			191,586			188,819			169,326
Total Smart Growth Deposits		439,343			436,519			455,946			438,681			411,123
Time Deposits		159,968			162,063			169,377			172,211			172,316
Total Deposits		599,311			598,582			625,323			610,892			583,439

FHLB Advances		127,621			108,184			79,533			83,585			87,756
Other Liabilities		5,501			6,450			5,567			10,097			6,009
Stockholders’ Equity	81,112			79,987				78,581		77,578				76,497
TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY	$	813,545		$	793,203		$	789,004		$	782,152		$	753,701

Ratio of Equity to Assets		9.97	%		10.08	%		9.96	%		9.92	%		10.15	%
Tangible Equity Ratio		9.56	%		9.67	%		9.54	%		9.49	%		9.71	%
Total Risk-Based Capital Ratio		14.09	%		14.30	%		14.26	%		13.94	%		13.79	%
Book Value per Common Share	$	39.24		$	38.79		$	37.87		$	37.23		$	36.81
Tangible Book Value Per Common Share (1)	$	37.47		$	37.02		$	36.11		$	35.47		$	35.04
Shares Outstanding (in thousands)		2,067			2,062			2,075			2,084			2,078
Non-performing Assets/Total Assets		1.53	%		1.55	%		1.82	%		2.22	%		2.27	%
ALLL/Loans		1.33	%		1.37	%		1.39	%		1.78	%		1.68	%
ALLL/NPLs		73.72	%		76.63	%		69.94	%		68.32	%		66.36	%

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

Stockholders’ Equity	$	81,112		$	79,987		$	78,581		$	77,578		$	76,497
Less goodwill and other Intangible
assets, net of related income taxes	(3,657		)	(3,659		)		(3,661	)	(3,664		)	(3,670		)
Tangible Stockholders’ Equity	$	77,455		$	76,328		$	74,920		$	73,914		$	72,827

Total Assets	$	813,545		$	793,203		$	789,004		$	782,152		$	753,701
Less goodwill and other Intangible
assets, net of related income taxes	(3,657		)	(3,659)				(3,661	)	(3,664		)		(3,670	)
Total Tangible Assets	$	809,888		$	789,544		$	785,343		$	778,488		$	750,031

Page 8 of 17

TECHE HOLDING COMPANY
(Dollars in thousands, except per share data)
New Iberia, LA
Annual Balance Sheet
(UNAUDITED)
(Dollars in Thousands Except Share Data)
	Dec. 2011			Dec. 2010			Dec. 2009			Dec. 2008
SmartGrowth Loans
Consumer	$	107,399		$	111,139		$	109,899		$	102,438
Commercial		213,659			208,797			213,505			195,754
Home Equity		47,261			52,182			57,373			57,720
SmartMortgage Loans	98,221				89,389		86,462			88,181
Total SmartGrowth Loans		466,540			461,507			467,239			444,093
Mortgage Loans (owner occupied conforming)		166,088			132,224			135,048			160,410
		632,628			593,731			602,287			604,503
Allowance for Loan Losses	(8,392		)		(9,953	)	(7,744		)		(5,631	)
Loans Receivable, Net		624,236			583,778			594,543			598,872

Cash and Securities		130,126			110,405			108,282			120,235
Goodwill and Other Intangibles		3,667			3,682			3,707			3,745
Foreclosed Real Estate		1,012			2,079			1,128			672
Other	54,504				53,757		49,604			44,094
TOTAL ASSETS	$	813,545		$	753,701		$	757,264		$	767,618

SmartGrowth Deposits
Checking	$	199,021		$	186,240		$	170,552		$	158,742
Money Market		52,019			55,557			80,034			121,621
Savings		188,303			169,326			128,254		57,387
Total Smart Growth Deposits		439,343			411,123			378,840			337,750
Time Deposits		159,968			172,316			196,651		251,032
Total Deposits		599,311			583,439			575,491			588,782

FHLB Advances		127,621			87.756			103,451			103,491
Other Liabilities		5,501			6,009			6,000			6,013
Stockholders’ Equity	81,112				76,497		72,322			69,332
TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY	$	813,545		$	753,701		$	757,264		$	767,618

Ratio of Equity to Assets		9.97	%		10.15	%		9.55	%		9.03	%
Tangible Equity Ratio		9.56	%		9.71	%		9.07	%		8.59	%
Total Risk-Based Capital Ratio		14.09	%		13.79	%		12.70	%		12.29	%
Book Value per Common Share	$	39.24		$	36.81		$	34.49		$	32.72
Tangible Book Value Per Common Share (1)	$	37.47		$	35.04		$	32.74		$	31.00
Non-performing Assets/Total Assets		1.53	%		2.27	%		1.58	%		0.93	%
ALLL/Loans		1.33	%		1.68	%		1.29	%		0.93	%
ALLL/NPLs		73.72	%		66.36	%		72.12	%		87.0	%
Shares Outstanding (in thousands)		2,067			2,078			2,097			2,116

(1) Eliminates the effect of goodwill and the core deposit intangible assets and the related amortization expense.

Stockholders’ Equity	$	81,112		$	76,497		$	72,322		$	69,332
Less goodwill and other Intangible
assets, net of related income taxes	(3,657		)		(3,670	)	(3,687		)	(3,712		)
Tangible Stockholders’ Equity	$	77,455		$	72,827		$	68,365		$	65,620

Total Assets	$	813,545		$	753,701		$	757,264		$	767,619
Less goodwill and other Intangible
assets, net of related income taxes	(3,657		)		(3,670	)	(3,687		)		(3,712	)
Total Tangible Assets	$	809,888		$	750,031		$	753,577		$	763,907

Page 9 of 17

Quarter-End Loan Data	Total		Net Charge-		Net Charge-			90 Days +		90 Days +
December 31, 2011	Loans		Offs		Offs			Non Accrual		Non Accrual
	Dollars		Dollars		Percentage			Dollars		Percentage
Real Estate Loans
Construction	$	18,657	$	--		0.00	%	$	763		4.1	%
Permanent, Secured by:
1-4 Dwelling Units:
Revolving, Open-End Loans (HELOC)		20,309		20		0.10	%		75		0.4	%
All Other
Secured by First Liens	$	347,058	$	167		0.05	%	$	3,505		1.0	%
Secured by Junior Liens		8,492		--		0.00	%		--		0.0	%
Multifamily (5+ Dwelling Units)		23,460		45		0.19	%		843		3.6	%
Nonresidential Property (Except Land)		95,233		--		0.00	%		337		0.4	%
Land	34,641		--			0.00	%	4,759		13.7		%
Consumer	19,478		--			0.00	%	130		0.7		%
Commercial	15,163		--			0.00	%	4,629		30.5		%
Subtotal – Real Estate Loans	$	547,850	$	232		0.04	%	$	10,282	1.9%		%

Non-Real Estate Loans:
Commercial Loans	$	27,217	$	--		0.00	%	$	--		0.0	%
Consumer Loans:
Loans on Deposits		3,667		--		0.00	%		39		1.1	%
Auto Loans		1,898		--		0.00	%		22		1.2	%
Mobile Home Loans		37,494		55		0.15	%		534		1.4	%
Other	14,502		2			0.01	%	113			0.8	%
Subtotal – Non Real Estate Loans	$	84,778	$	57		0.07	%	$	708		0.8	%

Gross Loans	$	632,628	$	289		0.05	%	$	10,990		1.7	%

Non-accruals	$	10,835
90 + Days Past Due		549
OREO & Foreclosed	1,073
Nonperforming Assets (Net)	$	12,457
Performing TDRs		--

Page 10 of 17


Quarter-End Loan Data	Total		Net Charge-			Net Charge-			90 Days +		90 Days +
September 30, 2011	Loans		Offs			Offs			Non Accrual		Non Accrual
	Dollars		Dollars			Percentage			Dollars		Percentage
Real Estate Loans
Construction	$	20,046	$	--			0.00	%	$	1,021		5.1	%
Permanent, Secured by:
1-4 Dwelling Units:
Revolving, Open-End Loans (HELOC)		20,287		--			0.00	%		104		0.51	%
All Other
Secured by First Liens		326,027		25			0.01	%		2,931		0.90	%
Secured by Junior Liens		9,032		60			0.66	%		5		0.05	%
Multifamily (5+ Dwelling Units)		23,747		--			0.00	%		863		3.63	%
Nonresidential Property (Except Land)		87,797		105			0.12	%		412		0.47	%
Land	35,774		306				0.86	%	4,963			13.87	%
Consumer	20,023		7				0.03	%	130		0.65		%
Commercial	15,751		299				1.90	%	4.833		30.7		%
Subtotal – Real Estate Loans	$	522,710	$	496			0.09	%	$	10,299	1.97		%

Non-Real Estate Loans:
Commercial Loans	$	27,403		(1	)		0.00	%	$	--		0.00	%
Consumer Loans:
Loans on Deposits		3,737		7			0.19	%		69		1.85	%
Auto Loans		2,105		--			0.00	%		23		1.07	%
Mobile Home Loans		38,285		31			0.08	%		379		0.99	%
Other	14,362		9				0.06	%	101			0.70	%
Subtotal – Non Real Estate Loans	$	85,892	$	46			0.05	%	$	572		0.67	%

Gross Loans	$	608,602	$	542			0.09	%	$	10,871		1.79	%

Non-accruals	$	10,079
90 + Days Past Due		793
OREO & Foreclosed	1,438
Nonperforming Assets (Net)	$	12,310
Performing TDRs	$	1,075

Page 11 of 17

Loans: Linked Quarter Comparison
Average Loan	12/31/2011		12/31/2011			09/30/2011		09/30/2011			Change			Change
Balances & Yields	Balance		Yield			Balance		Yield			Balance			Yield
Real Estate Loans
1-4 Family	$	384,094		5.21	%	$	360,569		5.59	%	$	23,525			-0.38	%
Commercial		132,074		5.64	%		126,299		5.69	%	5,775				-0.05	%
		516,168		5.32	%		486,868		5.62	%		29,300			-0.30	%

Non-Real Estate Loans
Commercial	$	27,258		6.06	%	$	26,223		5.99	%	$	1,035			0.07	%
Consumer	77,647			9.33	%	78,645			9.67	%	(998		)		-0.34	%
		104,905		8.48	%		104,868		8.75	%		37			-0.27	%

Total All Loans	$	621,073		5.85	%	$	591,736		6.17	%	$	29,337			-0.32	%


Prior Year Comparison	12/31/2011		12/31/2011			12/31/2010		12/31/2010			Change			Change
Average Loan Balances & Yields	Balance		Yield			Balance		Yield			Balance			Yield
Real Estate Loans
1-4 Family	$	384,094		5.21	%	$	351,121		5.81	%	$	32,973			-0.60	%
Commercial	132,074			5.64	%		134,698		5.76	%		(2,624	)		-0.12	%
		516,168		5.32	%		485,819		5.80	%		30,349			-0.48	%

Non-Real Estate Loans
Commercial	$	27,258		6.06	%	$	28,889		6.21	%		(1,631	)		-0.15	%
Consumer		77,647		9.33	%		80,839		9.29	%		(3,192	)		0.04	%
		104,905		8.48	%		109,728		8.48	%		(4,823	)		0.00	%

Total All Loans	$	621,073		5.85	%	$	595,547		6.29	%	$	25,526			-0.44	%

Page 12 of 17

Loans: Linked Quarter Comparison
Average Loan	09/30/2011		09/30/2011			06/30/2011		06/30/2011			Change			Change
Balances & Yields	Balance		Yield			Balance		Yield			Balance			Yield
Real Estate Loans
1-4 Family	$	360,569		5.59	%	$	352,181		5.70	%	$	8,388			-0.11	%
Commercial	126,299			5.69	%		130,800		5.58	%		(4,501	)		0.11	%
Total Real Estate Loans	$	486,868		5.62	%	$	482,981		5.67	%		3.887			-0.05	%

Non-Real Estate Loans
Commercial	$	26,223		5.99	%	$	24,813		5.97	%	$	1,410			0.02	%
Consumer		78,645		9.67	%		78,626		9.51	%		19			0.16	%
Total Non-Real Estate Loans		104,868		8.75	%		103,439		8.66	%		1,429			0.09	%

Total All Loans	$	591,736		6.17	%	$	586,420		6.20	%	$	5,316			-0.03	%


Loans: Prior Year Comparison
Average Loan	09/30/2011		09/30/2011			09/30/2010		09/30/2010			Change			Change
Balances & Yields	Balance		Yield			Balance		Yield			Balance			Yield
Real Estate Loans
1-4 Family	$	353,573		5.73	%	$	349,621		5.98	%	$	3,952			-0.25	%
Commercial		131,192		5.63	%		138,950		5.82	%		(7,758	)		-0.19	%
		484,765		5.70	%		488,571		5.94	%		(3,806	)		-0.24	%

Non-Real Estate Loans
Commercial	$	26,211		5.99	%	$	29,996		6.37	%	$	(3,785	)		-0.38	%
Consumer	79,378			9.42	%		80,567		9.30	%		(1,189	)		0.12	%
		105,589		8.57	%		110,563		8.50	%		(4,974	)		0.07	%

Total All Loans	$	590,354		6.21	%	$	599,134		6.41	%	$	(8,780	)		-0.20	%

Page 13 of 17

Interest-bearing Liabilities: Linked Quarter Comparison
Average balances	12/31/2011		12/31/2011			9/30/2011		9/30/2011			Change			Change			%Balance
	$Balance		Avg. Yield			$Balance		Avg. Yield			$Balance			Avg. Yield			Change
NOW Accounts	$	111,078		0.18	%	$	108,579		0.14	%	$	2,499			0.04	%		2.3	%
Non-interest bearing Deposits		81,272		0.00	%		87,454		0.00	%		(6,182	)		0.00	%		-7.1	%
Checking Total	$	192,350		0.11	%	$	196,033		0.08	%	$	(3,683	)		0.03	%		-1.9	%

Savings Accounts	$	186,897		0.31	%	$	191,840		0.33	%	$	(4,943	)		-0.02	%		-2.6	%
Money Market Accounts		54,473		0.23	%		54,787		0.30	%		(314	)		-0.07	%		-0.6	%

Total Smart Growth Deposits	$	433,720		0.21	%	$	442,660		0.22	%	$	(8,940	)		-0.01	%		-2.0	%

Time Deposits	$	160,656		2.24	%	$	165,284		2.25	%	$	(4,628	)		-0.01	%		-2.8	%

Total Deposits	$	594,376		0.76	%	$	607,944		0.77	%	$	(13,568	)		-0.01	%		-2.2	%

FHLB Advances	$	120,740		3.15	%	$	92,514		3.93	%	$	28,226			-0.78	%		30.5	%

Total Interest-bearing liabilities	$	633,844		1.31	%	$	613,004		1.36	%	$	20,840			-0.05	%		3.4	%

Non-interest bearing Deposits	$	81,272		0.00	%	$	87,454		0.00	%	$	(6,182	)		0.00	%		-7.1	%


Interest-bearing Liabilities: Prior Year Comparison
Average balances	12/31/2011		12/31/2011			12/31/2010		12/31/2010			Change			Change			%Balance
	$Balance		Avg. Yield			$Balance		Avg. Yield			$Balance			Avg. Yield			Change
NOW Accounts	$	111,078		0.18	%	$	105,225		0.18	%	$	5,853			0.00	%		5.6	%
Non-interest bearing Deposits		81,272		0.00	%		73,015		0.00	%		8,257			0.00	%		11.3	%
Checking Total	$	192,350		0.11	%	$	178,240		0.11	%	$	14,110			0.00	%		7.9	%

Savings Accounts	$	186,897		0.31	%	$	167,291		0.60	%	$	19,606			-0.29	%		11.7	%
Money Market Accounts		54,473		0.23	%		58,559		0.35	%		(4,086	)		-0.12	%		-7.0	%

Total Smart Growth Deposits	$	433,720		0.21	%	$	404,090		0.35	%	$	29,630			-0.14	%		7.3	%

Time Deposits	$	160,656		2.24	%	$	175,947		2.53	%	$	(15,291	)		-0.29	%		-8.7	%

Total Deposits	$	594,376		0.76	%	$	580,037		1.01	%	$	14,339			-0.25	%		2.5	%

FHLB Advances	$	120,740		3.15	%	$	95,251		4.53	%	$	25,489			-1.38	%		26.8	%

Total Interest-bearing liabilities	$	633,844		1.31	%	$	602,273		1.69	%	$	31,571			-0.38	%		5.2	%

Non-interest bearing Deposits	$	81,272		0.00	%	$	73,015		0.00	%	$	8,257			0.00	%		11.3	%

Page 14 of 17

Interest-bearing Liabilities: Linked Quarter Comparison
Average balances	09/30/2011		09/30/2011			06/30/2011		06/30/2011			Change			Change			%Balance
	$Balance		Avg. Yield			$Balance		Avg. Yield			$Balance			Avg. Yield			Change
NOW Accounts	$	108,579		0.14	%	$	112,611		0.18	%	$	(4,032	)		-0.04	%		-3.6	%
Non-interest bearing Deposits		87,454		0.00	%		84,114		0.00	%		3,340			0.00	%		4.0	%
Checking Total	$	196,033		0.08	%	$	196,725		0.10	%	$	(692	)		-0.02	%		-0.4	%

Savings Accounts	$	191,840		0.33	%	$	190,379		0.38	%	$	1,461			-0.05	%		0.8	%
Money Market Accounts		54,787		0.30	%		55,619		0.27	%		(832	)		0.03	%		-1.5	%

Total Smart Growth Deposits	$	442,660		0.22	%	$	442,723		0.24	%	$	(63	)		-0.02	%		0.0	%

Time Deposits	$	165,284		2.25	%	$	171,055		2.33	%	$	(5,771	)		-0.08	%		-3.4	%

Total Deposits	$	607,944		0.77	%	$	613,778		0.82	%	$	(5,834	)		-0.05	%		-1.0	%

FHLB Advances	$	92,514		3.93	%	$	79,879		4.61	%	$	12,635			-0.68	%		15.8	%

Total Interest-bearing liabilities	$	613,004		1.36	%	$	609,543		1.43	%	$	3,461			-0.07	%		0.6	%

Non-interest bearing Deposits	$	87,454		0.00	%	$	84,114		0.00	%	$	3,340			0.00	%		4.0	%


Interest-bearing Liabilities: Average Quarter Balances
Average balances	09/30/2011		09/30/2011			09/30/2010		09/30/2010			Change			Change			%Balance
	$Balance		Avg. Yield			$Balance		Avg. Yield			$Balance			Avg. Yield			Change
NOW Accounts	$	108,579		0.14	%	$	103,467		0.26	%	$	5,112			-0.12	%		4.9	%
Non-interest bearing Deposits		87,454		0.00	%		66,808		0.00	%		20,646			0.00	%		30.9	%
Checking Total	$	196,033		0.08	%	$	170,275		0.16	%	$	25,758			-0.08	%		15.1	%

Savings Accounts	$	191,840		0.33	%	$	163,157		0.69	%	$	28,683			-0.36	%		17.6	%
Money Market Accounts		54,787		0.30	%		61,305		0.40	%		(6,518	)		-0.10	%		-10.6	%

Total Smart Growth Deposits	$	442,660		0.22	%	$	394,737		0.41	%	$	47,923			-0.19	%		12.1	%

Time Deposits	$	165,284		2.25	%	$	181,517		2.60	%	$	(16,233	)		-0.35	%		-8.9	%

Total Deposits	$	607,944		0.77	%	$	576,254		1.10	%	$	31,690			-0.33	%		5.5	%

FHLB Advances	$	92,514		3.93	%	$	100,831		4.52	%	$	(8,317	)		-0.59	%		-8.2	%

Total Interest-bearing liabilities	$	613,004		1.36	%	$	610,277		1.79	%	$	2,727			-0.43	%		0.4	%

Non-interest bearing Deposits	$	87,454		0.00	%	$	66,808		0.00	%	$	20,646			0.00	%		30.9	%

Page 15 of 17

Quarter-End Loan Quality Details
December 30, 2011	Total							Special
(In Thousands)	Loans		Classified		% Total			Mention		% Total			Pass		% Total
Commercial Loans
Commercial Land	$	15,163	$	4,629		30.5	%	$	64		0.4	%	$	10,470		69.1	%
Commercial Construction		9,068		763		8.4	%		379		4.2	%		7,926		87.4	%
Commercial Real Estate		118,693		1,177		1.0	%		4,237		3.6	%		113,279		95.4	%
Commercial Non Real Estate		27,217		51		0.2	%		127		0.5	%		27,039		99.3	%
Total Commercial	$	170,141	$	6,620		3.9	%	$	4,807		2.8	%	$	158,714		93.3	%

Residential Loans
Residential Construction	$	9,589	$	--		0.00	%	$	--		0.0	%		9,589		100.0	%
Residential		377,655		3,889		1.00	%		181		0.0	%		373,585		99.0	%
Total Residential	$	387,244	$	3,889		1.00	%	$	181		0.0	%	$	383,174		99.0	%

Consumer Loans
Mobile Homes	$	37,494	$	495		1.3	%	$	--		0.0	%	$	36,999		98.7	%
Consumer Other		39,545		260		0.7	%		-		0.0	%		39,285		99.3	%
Total Consumer	$	77,039	$	755		1.0	%	$	--		0.0	%	$	76,284		99.0	%

Total All Loans	$	634,424	$	11,264		1.8	%	$	4,988		0.8	%	$	618,172		97.4	%

Page 16 of 17

Quarter-End Loan Quality Details
September 30, 2011	Total							Special
(In Thousands)	Loans		Classified		% Total			Mention		% Total			Pass		% Total
Commercial Loans
Commercial Land	$	15,721	$	4,792		30.5	%	$	166		1.1	%	$	10,763		68.4	%
Commercial Construction		9,473		1,052		11.1	%		381		4.0	%		8,040		84.9	%
Commercial Real Estate		111,558		1,848		1.7	%		2,534		2.3	%		107,176		96.1	%
Commercial Non Real Estate		27,403		58		0.2	%		558		2.0	%		26,787		97.8	%
Total Commercial	$	164,155	$	7,750		4.7	%	$	3,639		2.2	%	$	152,766		93.1	%

Residential Loans
Residential Construction	$	10,604	$	--		0.0	%	$	--		0.0	%	$	10,604		100.0	%
Residential		356,950		3,320		0.9	%		183		0.1	%		353,447		99.0	%
Total Residential	$	367,554	$	3,320		0.9	%	$	183		0.1	%	$	364,051		99.0	%

Consumer Loans
Mobile Homes	$	38,285	$	379		1.0	%	$	--		0.0	%	$	37,906		99.0	%
Consumer Other		40,227		248		0.6	%		--		0.0	%		39,979		99.4	%
Total Consumer	$	78,512	$	627		0.8	%	$	--		0.0	%	$	77,885		99.2	%

Total All Loans	$	610,221	$	11,697		1.9	%	$	3,822		0.6	%	$	594,702		97.5	%

Page 17 of 17

TECHE HOLDING CO - FORM 8-K - EX-99 - EXHIBIT 99 - PRESS RELEASE - January 27, 2012

Attached files

TECHE HOLDING CO Reports