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

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8-K - FORM 8-K 12-31-12 EARNINGS - TECHE HOLDING COMPANY - TECHE HOLDING CO	f8k_012313-0123.htm

NEW IBERIA, LA – NYSE-MKT: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, 2012, the first quarter of fiscal year 2013.

Earnings for the quarter ended December 31, 2012 amounted to $3.1 million, or $1.49 per diluted share, compared to $1.8 million, or $0.85 per diluted share, for the same quarter in fiscal 2012, an increase of $0.64 per diluted share, or 75.3%.

This quarter included two non-recurring items: the sale of $46.3 million in mortgage loans, generating a one-time pre-tax gain of $2.0 million, and an accelerated first quarter dividend in the amount of $0.365 per common share. Excluding the gain on sale of mortgage loans, diluted earnings per share for the first quarter would have been $0.86 per common share.

“We had solid earnings this quarter on top of record EPS for the past four fiscal years,” said Little. “Our loan sale this quarter helps to re-position our balance sheet, and the accelerated dividend provided some tax relief for our shareholders. Also, commercial and consumer loan growth was positive this quarter, and the loan pipeline remains strong.”

The Company reported the following points of interest:

·	The Company posted a $1.3 million after-tax gain on the $46.3 million sale of mortgage loans.

·	The Company declared dividends totaling $0.73 per share, including a regular dividend of $0.365 and an accelerated first quarter dividend of $0.365.

·	SmartGrowth Deposits increased 3.3% over the linked quarter and 11.5% compared to a year ago. SmartGrowth Deposits amounted to 77.7% of total deposits at December 31, 2012, compared to 76.8% at September 30, 2012 and 73.3% a year ago.

·	Checking Account Balances increased 4.8% compared to the linked quarter-end and 16.0% compared to December 31, 2011.

·	The average rate paid on all deposits was 0.53% for the quarter compared to 0.58% for the linked quarter and 0.88% a year ago.

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·	Quarterly operating revenue increased to $13.5 million for the current quarter, as compared to $12.1 million in the linked quarter and $11.5 million a year ago, mainly due to the $2.0 million gain on the sale of loans.

·	Tangible book value per share increased to $39.86, an increase of 1.5%, or $0.57, compared to September 30, 2012 and 6.4%, or $2.39, year-over-year.

·	Net charge offs for the quarter amounted to 0.07% of average loans.

Capital

Over the past twelve months, stockholders’ equity increased 4.5% to a record $84.8 million at December 31, 2012, while assets increased 3.2% to $839.7 million. The tangible equity ratio at December 31, 2012 increased to 9.70%, compared to 9.56% a year ago. Tangible book value per common share increased to a record $39.86, an increase of 6.4% compared to a year ago. Risk based capital increased to 14.34% compared to 14.09% a year ago, and the equity to asset ratio increased to 10.09% from 9.97% a year ago.

During the quarter ended December 31, 2012, the Company repurchased 15,034 shares of the Company’s common stock at an average price of $37.66 per share.

QUARTERLY COMPARISON	Dec '12			Sep '12			Jun '12			Mar '12			Dec '11
Stockholders' Equity (in millions)	$	84.8		$	83.5		$	81.7		$	82.2		$	81.1
Ratio of Equity to Assets		10.09	%		9.81	%		9.68	%		9.90	%		9.97	%
Basic Earnings Per Share	$	1.51		$	1.02		$	0.84		$	0.83		$	0.86
Adjusted Earnings Per Share*	$	0.86		$	1.02		$	0.84		$	0.83		$	0.86
Tangible Equity Ratio		9.70	%		9.42	%		9.29	%		9.50	%		9.56	%
Total Risk-Based Capital Ratio		14.34	%		14.09	%		13.79	%		14.12	%		14.09	%
Book Value Per Common Share	$	41.65		$	41.09		$	40.32		$	39.68		$	39.24
Tangible Book Value Per Common Share	$	39.86		$	39.29		$	38.51		$	37.91		$	37.47
Total Assets (in millions)	$	839.7		$	852.0		$	843.8		$	829.7		$	813.5
*Excluding Gain on Loan Sale

Non-Recurring items

The sale of $46.3 million in mortgage loans, the related $1.3 million after tax gain and the acceleration of the first quarter dividend of $0.365 per share were non-recurring items. While the loan sale consisted primarily of long-term, fixed rate mortgage loans, approximately $10 million of the loans were SmartGrowth mortgage loans.

“We hope to have the loans replaced within a couple of quarters,” said Little. “We expect to replace them with a healthy mix of commercial, consumer and mortgage loans.”

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 ‘12			Sep ‘12			Jun ‘12			Mar ‘12			Dec '11
Net Charge-offs/Average Loans		0.07	%		0.05	%		0.08	%		0.08	%		0.05	%
ALLL*/NPLs		87.76	%		82.52	%		79.63	%		74.02	%		71.25	%
ALLL*/NPAs		81.52	%		78.54	%		74.54	%		71.40	%		65.30	%
ALLL*/Loans		1.28	%		1.27	%		1.27	%		1.32	%		1.33	%
NPAs/Assets		1.20	%		1.28	%		1.34	%		1.43	%		1.53	%

*ALLL figures include specific reserves

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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 '12		Sep '12		June '12		Mar '12		Dec '11
Beginning ALLL	$	8,559	$	8,411	$	8,450	$	8,392	$	8,331
Provision for Loan Losses		150		500		510		550		350
Net Charge-offs		475		352		549		492		289
Ending ALLL	$	8,234	$	8,559	$	8,411	$	8,450	$	8,392
Ending ALLL (net of specific reserves)	$	8,234	$	8,559	$	8,411	$	8,246	$	8,142

The allowance for loan losses was 1.28% of total loans, or $8.2 million, at December 31, 2012 compared to 1.27% of total loans, or $8.6 million, at September 30, 2012 and 1.33% of total loans, or $8.4 million, at December 31, 2011.

Net charge-offs for the quarter were $0.5 million, or 0.07% of average loans, compared to $0.3 million, or 0.05% of average loans, for the same period a year ago. For the twelve months ended December 31, 2012, net charge offs were $1.9 million, or 0.29% of average loans, compared to $4.7 million, or 0.78% of loans, for the twelve months ended December 31, 2011.

Non-performing assets decreased slightly to $10.3 million, or 1.20% of total assets, at December 31, 2012 compared to $10.9 million, or 1.28% of total assets, at September 30, 2012 and $12.4 million, or 1.53% of total assets, a year ago. This is primarily due to a decrease in non-accrual loans.

Net Interest Income QUARTERLY COMPARISON (In 000’s)	Dec '12		Sep '12		Jun '12		Mar '12		Dec '11
Interest Income	$	9,571	$	9,836	$	9,725	$	9,807	$	9,766
Interest Expense		1,832		1,895		1.993		2,111		2,080
Net Interest Income	$	7,739	$	7,941	$	7,732	$	7,696	$	7,686

Net interest income decreased $0.2 million compared to the linked quarter, primarily due to the sale of loans being offset somewhat by decreases in deposit rates.

Net Interest Margin and Spread quarterly comparison	Dec ‘12			Sep '12			Jun '12			Mar '12			Dec '11
Yield on Earning Assets		4.92	%		5.07	%		5.10	%		5.20	%		5.30	%
Cost of Interest Bearing Liabilities		1.11	%		1.14	%		1.23	%		1.31	%		1.31	%
Spread		3.80	%		3.93	%		3.87	%		3.90	%		3.99	%
Net Interest Margin		3.98	%		4.10	%		4.06	%		4.08	%		4.17	%

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Net interest margin amounted to 3.98% for the three-month period ended December 31, 2012, compared to 4.17% for the three-months ended December 31, 2011. The decrease was primarily due to lower yields on both loans and investments, offset somewhat by lower deposit rates.

Spread amounted to 3.80% for the three month period ended December 31, 2012, compared to 3.99% for the same period in the previous year. Compared to the same quarter last year, the average yield on earning assets decreased 38 basis points from 5.30% to 4.92%, while the average cost of funds decreased 20 basis points from 1.31% to 1.11%.

Operating Revenue

Operating revenue for the quarter ended December 31, 2012, consisting of net interest income (before provisions for loan losses) plus non-interest income, amounted to $13.5 million compared to $11.5 million for the same quarter in 2011. Excluding the impact of the loan sale during the quarter, operating revenue of $11.5 million remained constant as compared to the same quarter in 2011.

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

Operating Revenue quarterly comparison (in millions)	Dec '12		Sep '12		Jun '12		Mar '12		Dec '11
Net Interest Income	$	7.7	$	7.9	$	7.7	$	7.7	$	7.7
Non Interest Income		5.8		4.2		3.7		3.9		3.8
Operating Revenue	$	13.5	$	12.1	$	11.4	$	11.6	$	11.5

Non-Interest Income

Non-interest income increased to $5.8 million for the quarter, as compared to $4.2 million in the linked quarter and $3.8 million for the same quarter a year ago. This is mainly due to the $2.0 million gain from the sale of loans. Non-interest income amounted to 2.73% of average assets for the quarter compared to 1.99% for the linked quarter and 1.88% a year ago. Excluding the sale of loans, non-interest income was $3.8 million, or 1.80% of average assets.

Non-Interest Income & Expense
quarterly comparison (in thousands)	Dec '12			Sep '12			Jun '12			Mar '12			Dec '11
Interchange fee Income	$	826		$	847		$	917		$	843		$	778
Other Non-Interest Income		4,986			3,361			2,734			3,038			2,990
Total Non-Interest Income	$	5,816		$	4,208		$	3,651		$	3,881		$	3,768
Total Non-Interest Income/Avg. Assets		2.73	%		1.99	%		1.76	%		1.89	%		1.88	%
Non-Interest Expense	$	8,752		$	8,534		$	8,287		$	8,445		$	8,447
Non-Interest Expense/Avg. Assets		4.11	%		4.03	%		3.99	%		4.11	%		4.21	%

Non-Interest Expense

For the quarter ended December 31, 2012, non-interest expense was $8.8 million, or 4.11% of average assets, compared to $8.5 million, or 4.03% of average assets, in the linked quarter, which was an increase of 2.6%, primarily due to increases in compensation and marketing expenses. Compared to the same quarter in fiscal 2011, non-interest expense increased by $0.4 million, or 3.6%, from $8.4 million to $8.8 million, which was primarily due to increases in compensation, marketing, and data processing expenses.

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Net Income and Dividends

On November 28, 2012, the Board of Directors declared a $0.365 per share quarterly dividend. In addition, the Board declared a special, accelerated first quarter dividend of $0.365 per share. The Company has paid a cash dividend for 70 consecutive quarters. In view of the special dividend, the Company does not anticipate declaring a dividend for the first calendar quarter of 2013.

QUARTERLY COMPARISON (In 000’s)	Dec ‘12		Sep '12		Jun '12		Mar '12		Dec '11
Dividends Declared Per Share	$	0.73	$	0.365	$	0.365	$	0.365	$	0.36
Basic Earnings Per Common Share	$	1.51	$	1.02	$	0.84	$	0.83	$	0.86
Diluted Earnings Per Common Share	$	1.49	$	1.01	$	0.83	$	0.82	$	0.85

Loans

QUARTERLY COMPARISON (In 000,000’s)	Dec ‘12		Sep '12		Jun '12		Mar '12		Dec '11
SmartGrowth Loans
Consumer	$	113.4	$	110.2	$	109.3	$	106.6	$	107.4
Commercial		220.5		215.2		216.9		208.6		213.6
Home Equity		42.5		43.2		44.5		46.5		47.3
SmartMortgages		100.8		111.1		106.5		102.2		98.2
Total SmartGrowth Loans	$	477.2	$	479.7	$	477.2	$	463.9	$	466.5
Mortgage Loans (owner occupied conforming)		165.4		194.7		183.3		177.6		166.1
Total Loans	$	642.6	$	674.4	$	660.5	$	641.5	$	632.6

Linked Quarter Comparison. Gross loans receivable decreased to $642.6 million at December 31, 2012 from $674.4 million at September 30, 2012, a decrease of $31.8 million or 4.7% compared to the linked quarter, primarily due to the sale of $46.3 million of one-to four-family mortgages. SmartGrowth Loans, consisting of commercial loans, home equity loans, SmartMortgage loans, and consumer loans, were $477.2 million, or 74.3% of total loans, at December 31, 2012, compared to $479.7 million, or 71.1%, at September 30, 2012, a three month decrease of $2.5 million, or 0.5%.

Commercial loan balances at December 31, 2012 amounted to $220.5 million compared to $215.2 million at September 30, 2012, a three month increase of $5.3 million, or 2.5%. Consumer loan balances at December 31, 2012 amounted to $113.4 million compared to $110.2 million at September 30, 2012, a linked quarter increase of $3.2 million, or 2.9%.

One Year Comparison. Gross loans receivable increased to $642.6 million at December 31, 2012 from $632.6 million at December 31, 2011, a twelve month increase of $10.0 million, or 1.6%. SmartGrowth Loans increased to $477.2 million at December 31, 2012 from $466.5 million at December 31, 2011, a twelve month increase of $10.7 million, or 2.3%.

Commercial loan balances at December 31, 2012 amounted to $220.5 million compared to $213.6 million at December 31, 2011, a twelve month increase of $6.9 million, or 3.2%. Consumer loan balances at December 31, 2012 amounted to $113.4 million, compared to $107.4 million at December 31, 2011, a twelve month increase of $6.0 million, or 5.6%.

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“We made over $64.2 million in loans this quarter,” said Little, “including $56.6 million in SmartGrowth loans. The Southwest Louisiana region is a great area with a growing economy and low unemployment.”

Loan Sale

On November 28, 2012, Patrick Little, on behalf of the Company, announced the sale of a portfolio of single-family owner-occupied, performing, fixed rate mortgage loans with a book value of $46.3 million.

The Company recognized a one-time gain of $2.0 million during the quarter associated with the sale of the loans. The Bank retained servicing of these loans.

The portfolio of sold loans had a weighted average coupon rate of approximately 3.7% and a weighted average remaining term of approximately 170 months. The yield on average loans was 5.45% for the quarter ended December 31, 2012, as compared to a weighted average coupon rate of 3.7% on the loans sold.

“First, the loan sale gain of $2 million demonstrates the value of our mortgage loan portfolio,” said Little. “Furthermore, we hope that it will help boost our net interest margin and spread.”

Deposits

QUARTERLY COMPARISON (In 000,000’s)	Dec ‘12		Sep '12		Jun '12		Mar '12		Dec ‘11
SmartGrowth Deposits
Checking	$	230.8	$	220.3	$	218.7	$	223.3	$	199.0
Money Market		55.0		55.2		52.5		54.8		52.0
Savings		204.2		198.7		198.1		194.9		188.3
Total SmartGrowth Deposits	$	490.0	$	474.2	$	469.3	$	473.0	$	439.3
Time Deposits		140.6		143.5		146.2		157.5		160.0
Total Deposits	$	630.6	$	617.7	$	615.5	$	630.5	$	599.3

Linked Quarter Comparison. Total deposits increased to $630.6 million at December 31, 2012 from $617.7 million at September 30, 2012, a linked quarter increase of $12.9 million, or 2.1%. The Company’s SmartGrowth Deposit Accounts, consisting of checking accounts, money market accounts, and savings accounts, increased $15.8 million, or 3.3%, to $490.0 million at December 31, 2012, from $474.2 million at September 30, 2012.

Checking account balances at December 31, 2012 increased $10.5 million, or 4.8%, to $230.8 million from $220.3 million at September 30, 2012.

One Year Comparison. Total deposits increased to $630.6 million at December 31, 2012 from $599.3 million at December 31, 2011, a twelve month increase of $31.3 million, or 5.2%. Total SmartGrowth Deposits increased $50.7 million, or 11.5%, from $439.3 million at December 31, 2011 to $490.0 million at December 31, 2012.

SmartGrowth Deposits amounted to 77.7% of total deposits as of December 31, 2012, compared to 73.3% at December 31, 2011.

Checking account balances have increased 16.0%, or $31.8 million, in the past 12 months from $199.0 million at December 31, 2011 to $230.8 million at December 31, 2012. Checking account balances at December 31, 2012 accounted for 36.6% of total deposits, compared to 33.2% at December 31, 2011.

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Teche Holding Company is the parent company of Teche Federal Bank, which operates nineteen offices in South Louisiana and serves over 70,000 customers. Teche is the fourth largest publicly traded bank holding company based in Louisiana with over $839 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 MKT.

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	2012			2012			2012			2012			2011
Interest Income	$	9,571		$	9,836		$	9,725		$	9,807		$	9,766
Interest Expense		1,832			1,895		1,993			2,111			2,080
Net Interest Income		7,739			7,941			7,732			7,696			7,686
Provision for Loan Losses		150			500		510			550			350
Net Interest Income after
Provision for Loan Losses		7,589			7,441			7,222			7,146			7,336
Non Interest Income		5,812			4,208			3,651			3,881			3,768
Non Interest Expense		8,752		8,534			8,287			8,445			8,447
Income Before Income Taxes		4,649			3,115			2,586			2,582			2,657
Income Taxes		1,577		1,042			854			874			885
Net Income	$	3,072		$	2,073		$	1,732		$	1,708		$	1,772
Selected Financial Data
Dividends Declared Per Share	$	0.73		$	0.365		$	0.365		$	0.365		$	0.36
Basic Earnings Per Common Share	$	1.51		$	1.02		$	0.84		$	0.83		$	0.86
Diluted Earnings Per Common Share	$	1.49		$	1.01		$	0.83		$	0.82		$	0.85
Annualized Return on Avg. Assets		1.44	%		0.98	%		0.83	%		0.83	%		0.88	%
Annualized Return on Avg. Equity		14.17	%		9.81	%		8.28	%		8.22	%		8.86	%
Annualized Return on Avg.
Tangible Equity (1)		14.80	%		10.25	%		8.67	%		8.61	%		9.30	%
Yield on Interest Earning Assets		4.92	%		5.07	%		5.10	%		5.20	%		5.30	%
Cost of Interest Bearing Liabilities		1.11	%		1.14	%		1.23	%		1.31	%		1.31	%
Spread		3.80	%		3.93	%		3.87	%		3.90	%		3.99	%
Net Interest Margin		3.98	%		4.10	%		4.06	%		4.08	%		4.17	%
Non-Interest Income/Avg. Assets		2.73	%		1.99	%		1.76	%		1.89	%		1.88	%
Non-Interest Expense/Avg. Assets		4.11	%		4.03	%		3.99	%		4.11	%		4.21	%
Quarterly Net Charge-offs/Avg. Loans		0.07	%		0.05	%		0.08	%		0.08	%		0.05	%
Weighted avg. shares Outstanding
Basic		2,039			2,028			2,055			2,067			2,059
Diluted		2,064			2,061			2,078			2,088			2,078
AVERAGE BALANCE SHEET DATA
Total Assets	$	851,126		$	846,114		$	830,958		$	821,582		$	803,024
Earning assets	$	778,592		$	775,399		$	762,007		$	753,980		$	738,111
Loans	$	667,191		$	665,952		$	648,640		$	636,356		$	621,073
Interest-bearing deposits	$	527,476		$	521,708		$	523,488		$	522,420		$	513,104
Total deposits	$	623,689		$	612,785		$	617,209		$	608,777		$	594,376
Total stockholders’ equity	$	86,713		$	84,525		$	83,643		$	83,095		$	79,993

(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	$	86,713		$	84,525		$	83,643		$	83,095		$	79,993
Less average goodwill and other intangible assets,
net of related income taxes		(3,657	)		(3,659	)		(3,664	)		(3,665	)		(3,667	)
Average Tangible Equity	$	83,056		$	80,866		$	79,979		$	79,430		$	76,326

Net Income	$	3,072		$	2,073		$	1,732		$	1,708		$	1,772
Plus Amortization of core deposit
intangibles, net of related income taxes	1				1		2			2			2
Net Income, as adjusted	$	3,073		$	2,074		$	1,734		$	1,710		$	1,774

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

	Dec. 2012			Sep. 2012			Jun. 2012			Mar. 2012			Dec. 2011
SmartGrowth Loans
Consumer	$	113,365		$	110,235		$	109,287		$	106,596		$	107,399
Commercial		220,463			215,212			216,929			208,579			213,659
Home Equity		42,546			43,233			44,513			46,486			47,261
SmartMortgage Loans		100,859			111,072			106,532			102,228		98,221
Total SmartGrowth Loans		477,233			479,752			477,261			463,889			466,540
Mortgage Loans (owner occupied conforming)		165,364			194,650			183,274			177,566			166,088
		642,597			674,402			660,535			641,455			632,628
Allowance for Loan Losses	(8,234		)		(8,559	)		(8,411	)		(8,450	)	(8,392		)
Loans Receivable, Net		634,363			665,843			652,124			633,005			624,236

Cash and Securities		142,406			124,080			129,750			136,841			130,126
Goodwill and Other Intangibles		3,657			3,659			3,661			3,664			3,667
Foreclosed Real Estate		697			513			625			397			1,012
Other	58,575				57,867			57,608		55,799			54,504
TOTAL ASSETS	$	839,698		$	851,962		$	843,768		$	829,706		$	813,545

SmartGrowth Deposits
Checking	$	230,845		$	220,268		$	218,717		$	223,228		$	199,021
Money Market		54,955			55,251			52,478			54,817			52,019
Savings	204,241				198,667			198,042			194,919			188,303
Total Smart Growth Deposits		490,041			474,186			469,237			472,964			439,343
Time Deposits	140,598				143,536			146,227			157,547			159,968
Total Deposits		630,639			617,722			615,464			630,511			599,311

FHLB Advances		117,034			142,751			139,955			110,344			127,621
Other Liabilities		7,258			7,948			6,669			6,682			5,501
Stockholders’ Equity	84,767				83,541			81,680			82,169		81,112
TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY	$	839,698		$	851,962		$	843,768		$	829,706		$	813,545

Ratio of Equity to Assets		10.09	%		9.81	%		9.68	%		9.90	%		9.97	%
Tangible Equity Ratio		9.70	%		9.42	%		9.29	%		9.50	%		9.56	%
Total Risk-Based Capital Ratio		14.34	%		14.09	%		13.79	%		14.12	%		14.09	%
Book Value per Common Share	$	41.65		$	41.09		$	40.32		$	39.68		$	39.24
Tangible Book Value Per Common Share (1)	$	39.86		$	39.29		$	38.51		$	37.91		$	37.47
Shares Outstanding (in thousands)		2,035			2,033			2,026			2,071			2,067
Non-performing Assets/Total Assets		1.20	%		1.28	%		1.34	%		1.43	%		1.53	%
ALLL/Loans		1.28	%		1.27	%		1.27	%		1.32	%		1.33	%
ALLL/NPLs		87.76	%		82.52	%		79.63	%		74.02	%		71.25	%

(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	$	84,767		$	83,541		$	81,680		$	82,169		$	81,112
Less goodwill and other Intangible
assets, net of related income taxes	(3,656		)		(3,655	)		(3,658	)	(3,654		)	(3,657		)
Tangible Stockholders’ Equity	$	81,111		$	79,886		$	78,022		$	78,515		$	77,455

Total Assets	$	839,698		$	851,962		$	843,768		$	829,706		$	813,545
Less goodwill and other Intangible
assets, net of related income taxes	(3,656		)	(3,655		)		(3,658	)		(3,654	)	(3,657		)
Total Tangible Assets	$	836,042		$	848,307		$	840,110		$	826,052		$	809,888

Page 9 of 18

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

	Dec. 2012			Dec. 2011			Dec. 2010			Dec. 2009
SmartGrowth Loans
Consumer	$	113,365		$	107,399		$	111,139		$	109,899
Commercial		220,463			213,659			208,797			213,505
Home Equity		42,546			47,261			52,182			57,373
SmartMortgage Loans	100,859			98,221			89,389			86,462
Total SmartGrowth Loans		477,233			466,540			461,507			467,239
Mortgage Loans (owner occupied conforming)		165,364			166,088			132,224			135,048
		642,597			632,628			593,731			602,287
Allowance for Loan Losses		(8,234	)		(8,392	)		(9,953	)		(7,744	)
Loans Receivable, Net		634,363			624,236			583,778			594,543

Cash and Securities		142,406			130,126			110,405			108,282
Goodwill and Other Intangibles		3,657			3,667			3,682			3,707
Foreclosed Real Estate		697			1,012			2,079			1,128
Other	58,575			54,504				53,757		49,604
TOTAL ASSETS	$	839,698		$	813,545		$	753,701		$	757,264

SmartGrowth Deposits
Checking	$	230,845		$	199,021		$	186,240		$	170,552
Money Market		54,955			52,019			55,557			80,034
Savings	204,241			188,303			169,326			128,254
Total Smart Growth Deposits		490,041			439,343			411,123			378,840
Time Deposits	140,598			159,968			172,316			196,651
Total Deposits		630,639			599,311			583,439			575,491

FHLB Advances		117,034			127,621			87.756			103,451
Other Liabilities		7,258			5,501			6,009			6,000
Stockholders’ Equity	84,767			81,112				76,497		72,322
TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY	$	839,698		$	813,545		$	753,701		$	757,264

Ratio of Equity to Assets		10.09	%		9.97	%		10.15	%		9.55	%
Tangible Equity Ratio		9.70	%		9.56	%		9.71	%		9.07	%
Total Risk-Based Capital Ratio		14.34	%		14.09	%		13.79	%		12.70	%
Book Value per Common Share	$	41.65		$	39.24		$	36.81		$	34.49
Tangible Book Value Per Common Share (1)	$	39.86		$	37.47		$	35.04		$	32.74
Non-performing Assets/Total Assets		1.20	%		1.53	%		2.27	%		1.58	%
ALLL/Loans		1.28	%		1.33	%		1.68	%		1.29	%
ALLL/NPLs		87.76	%		73.72	%		66.36	%		72.12	%
Shares Outstanding (in thousands)		2,035			2,067			2,078			2,097

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

Stockholders’ Equity	$	84,767		$	81,112		$	76,497		$	72,322
Less goodwill and other Intangible
assets, net of related income taxes		(3,656	)		(3,657	)		(3,670	)		(3,687	)
Tangible Stockholders’ Equity	$	81,111		$	77,455		$	72,827		$	68,365

Total Assets	$	839,698		$	813,545		$	753,701		$	757,264
Less goodwill and other Intangible
assets, net of related income taxes	(3,656		)	(3,657		)		(3,670	)	(3,687		)
Total Tangible Assets	$	836,042		$	809,888		$	750,031		$	753,577

Page 10 of 18

Quarter-End Loan Data	Total		Net Charge-		Net Charge-			90 Days +		90 Days +
December 31, 2012	Loans		Offs		Offs			Non Accrual		Non Accrual
(In 000’s)	Dollars		Dollars		Percentage			Dollars		Percentage
Real Estate Loans
Construction	$	17,108	$	--		0.00	%	$	--		0.0	%
Permanent, Secured by:
1-4 Dwelling Units:
Revolving, Open-End Loans (HELOC)		20,839		--		0.00	%		68		0.3	%
All Other
Secured by First Liens		347,104		285		0.08	%		2,888		0.8	%
Secured by Junior Liens		6,800		--		0.00	%		--		0.0	%
Multifamily (5+ Dwelling Units)		20,112		--		0.00	%		943		4.7	%
Nonresidential Property (Except Land)		103,307		--		0.00	%		212		0.2	%
Land	34,040		121		0.36		%	4,714			13.8	%
Consumer		19,973		--		0.00	%		177		0.9	%
Commercial	14,067			121		0.86	%	4,537		32.3		%
Subtotal – Real Estate Loans	$	549,310	$	406	0.07		%	$	8,825	1.6%		%

Non-Real Estate Loans:
Commercial Loans	$	33,364	$	--		0.00	%	$	14		0.0	%
Consumer Loans:
Loans on Deposits		3,431		--		0.00	%		50		1.5	%
Auto Loans		2,198		13		0.59	%		8		0.4	%
Mobile Home Loans		38,055		54		0.14	%		645		1.7	%
Other	16,239			2		0.01	%		39		0.2	%
Subtotal – Non Real Estate Loans	$	93,287	$	69		0.07	%	$	756		0.8	%

Gross Loans	$	642,597	$	475		0.07	%	$	9,581		1.5	%

Non-accruals	$	9,177
90 + Days Past Due		404
OREO & Foreclosed	683
Nonperforming Assets (Net)	$	10,264
Performing TDRs		--

Page 11 of 18

Quarter-End Loan Data	Total		Net Charge-			Net Charge-			90 Days +		90 Days +
September 30, 2012	Loans		Offs			Offs			Non Accrual		Non Accrual
(In 000’s)	Dollars		Dollars			Percentage			Dollars		Percentage
Real Estate Loans
Construction	$	16,835	$	--			0.00	%	$	--		0.0	%
Permanent, Secured by:
1-4 Dwelling Units:
Revolving, Open-End Loans (HELOC)		20,641		--			0.00	%		127		0.6	%
All Other
Secured by First Liens		383,954		285			0.07	%		4,140		1.1	%
Secured by Junior Liens		6,892		--			0.00	%		181		2.6	%
Multifamily (5+ Dwelling Units)		21,248		--			0.00	%		--		0.0	%
Nonresidential Property (Except Land)		99,347		26			0.03	%		810		0.8	%
Land	32,652		(4		)	0.01		%	4,530			13.9	%
Consumer	19,340			--		0.00		%	186		1.0		%
Commercial		13,312		(4	)		(0.03	%)		4,344		32.6	%
Subtotal – Real Estate Loans	$	581,569	$	307		0.05		%	$	9,788	1.7%		%

Non-Real Estate Loans:
Commercial Loans	$	34,032	$	--			0.00	%	$	2		0.0	%
Consumer Loans:
Loans on Deposits		3,636		--			0.00	%		89		2.4	%
Auto Loans		2,112		--			0.00	%		21		1.0	%
Mobile Home Loans		37,030		30			0.08	%		425		1.1	%
Other	16,023			15			0.09	%		47		0.3	%
Subtotal – Non Real Estate Loans	$	92,833	$	45			0.05	%	$	584		0.6	%

Gross Loans	$	674,402	$	352			0.05	%	$	10,372		1.5	%

Non-accruals	$	10,021
90 + Days Past Due		351
OREO & Foreclosed	490
Nonperforming Assets (Net)	$	10,862
Performing TDRs		--

Page 12 of 18

Loans: Linked Quarter Comparison
Average Loan	12/31/2012		12/31/2012			09/30/2012		09/30/2012			Change			Change
Balances & Yields (In 000’s)	Balance		Yield			Balance		Yield			Balance			Yield
Real Estate Loans
1-4 Family	$	416,485		4.84	%	$	419,789		4.95	%	$	(3,304	)		-0.11	%
Commercial		136,251		5.25	%		135,547		5.40	%		704			-0.15	%
		552,736		4.94	%		555,336		5.06	%	$	(2,600	)		-0.12	%

Non-Real Estate Loans
Commercial	$	35,093		5.41	%	$	31,963		5.64	%	$	3,130			-0.23	%
Consumer		79,362		9.05	%		78,653		9.21	%		709			-0.16	%
		114,455		7.93	%		110,616		8.18	%		3,839			-0.25	%

Total All Loans	$	667,191		5.45	%	$	665,952		5.58	%	$	1,239			-0.13	%


Prior Year Comparison
Average Loan Balances & Yields (In 000’s)	12/31/2012 Balance		12/31/2012 Yield			12/31/2011 Balance		12/31/2011 Yield			Change Balance			Change Yield
Real Estate Loans
1-4 Family	$	416,485		4.84	%	$	384,094		5.21	%	$	32,391			-0.37	%
Commercial		136,251		5.25	%		132,074		5.64	%		4,177			-0.39	%
		552,736		4.94	%		516,168		5.32	%		36,568			-0.38	%

Non-Real Estate Loans
Commercial	$	35,093		5.41	%	$	27,258		6.06	%	$	7,835			-0.65	%
Consumer		79,362		9.05	%		77,647		9.33	%		1,715			-0.28	%
		114,455		7.93	%		104,905		8.48	%		9,550			-0.55	%

Total All Loans	$	667,191		5.45	%	$	621,073		5.85	%	$	46,118			-0.40	%

Page 13 of 18

Loans: Linked Quarter Comparison
Average Loan	09/30/2012		09/30/2012			06/30/2012		06/30/2012			Change			Change
Balances & Yields (In 000’s)	Balance		Yield			Balance		Yield			Balance			Yield
Real Estate Loans
1-4 Family	$	419,789		4.95	%	$	407,115		5.03	%	$	12,674			-0.08	%
Commercial		135,547		5.40	%		136,402		5.57	%	$	(855	)		-0.17	%
Total Real Estate Loans		555,336		5.06	%		543,517		5.18	%		11,819			-0.12	%

Non-Real Estate Loans
Commercial	$	31,963		5.64	%	$	28,206		5.46	%	$	3,757			0.18	%
Consumer		78,653		9.21	%	76,917			9.10	%		1,736			0.11	%
Total Non-Real Estate Loans		110,616		8.18	%		105,123		8.13	%		5,493			0.05	%

Total All Loans	$	665,952		5.58	%	$	648,640		5.63	%	$	17,312			-0.05	%


Loans: Prior Year Comparison
Average Loan	09/30/2012		09/30/2012			09/30/2011		09/30/2011			Change			Change
Balances & Yields (In 000’s)	Balance		Yield			Balance		Yield			Balance			Yield
Real Estate Loans
1-4 Family	$	401,968		5.08	%	$	353,573		5.73	%	$	48,395			-0.65	%
Commercial		135,300		5.51	%		131,192		5.63	%		4,108			-0.12	%
		537,268		5.19	%		484,765		5.70	%		52,503			-0.51	%

Non-Real Estate Loans
Commercial	$	28,543		5.79	%	$	26,211		5.99	%	$	2,332			-0.20	%
Consumer		77,413		9.21	%		79,378		9.42	%		(1,965	)		-0.21	%
		105,956		8.29	%		105,589		8.57	%		367			-0.28	%

Total All Loans	$	643,224		5.70	%	$	590,354		6.21	%	$	52,870			-0.51	%

Page 14 of 18

Interest-bearing Liabilities: Linked Quarter Comparison
Average balances	12/31/2012		12/31/2012			9/30/2012		9/30/2012			Change			Change			%Balance
(In 000's)	$Balance		Avg. Yield			$Balance		Avg. Yield			$Balance			Avg. Yield			Change
NOW Accounts	$	128,492		0.22	%	$	124,017		0.22	%	$	4,475			0.00	%		3.6	%
Non-interest bearing Deposits		96,213		0.00	%		91,077		0.00	%		5,136			0.00	%		5.6	%
Checking Total	$	224,705		0.12	%	$	215,094		0.12	%	$	9,611			0.00	%		4.5	%

Savings Accounts	$	203,181		0.33	%	$	198,079		0.33	%	$	5,102			0.00	%		2.6	%
Money Market Accounts		54,445		0.15	%		54,791		0.18	%		(346	)		-0.03	%		-0.6	%

Total Smart Growth Deposits	$	482,331		0.21	%	$	467,964		0.22	%	$	14,367			-0.01	%		3.1	%

Time Deposits	$	141,358		1.62	%	$	144,821		1.75	%	$	(3,463	)		-0.13	%		-2.4	%

Total Deposits	$	623,689		0.53	%	$	612,785		0.58	%	$	10,904			-0.05	%		1.8	%

FHLB Advances	$	131,845		3.04	%	$	141,565		2.85	%	$	(9,720	)		0.19	%		-6.9	%

Total Interest-bearing liabilities	$	659,321		1.11	%	$	663,273		1.14	%	$	(3,952	)		-0.03	%		-0.6	%

Non-interest bearing Deposits	$	96,213		0.00	%	$	91,077		0.00	%	$	5,136			0.00	%		5.6	%

Interest-bearing Liabilities: Prior Year Comparison
Average balances	12/31/2012		12/31/2012			12/31/2011		12/31/2011			Change			Change			%Balance
(In 000’s)	$Balance		Avg. Yield			$Balance		Avg. Yield			$Balance			Avg. Yield			Change
NOW Accounts	$	128,492		0.22	%	$	111,078		0.18	%	$	17,414			0.04	%		15.7	%
Non-interest bearing Deposits		96,213		0.00	%		81,272		0.00	%		14,941			0.00	%		18.4	%
Checking Total	$	224,705		0.12	%	$	192,350		0.11	%	$	32,355			0.01	%		16.8	%

Savings Accounts	$	203,181		0.33	%	$	186,897		0.31	%	$	16,284			0.02	%		8.7	%
Money Market Accounts		54,445		0.15	%		54,473		0.23	%		(28	)		-0.08	%		-0.1	%

Total Smart Growth Deposits	$	482,331		0.21	%	$	433,720		0.21	%	$	48,611			0.00	%		11.2	%

Time Deposits	$	141,358		1.62	%	$	160,656		2.24	%	$	(19,298	)		-0.62	%		-12.0	%

Total Deposits	$	623,689		0.53	%	$	594,376		0.76	%	$	29,313			-0.23	%		4.9	%

FHLB Advances	$	131,845		3.04	%	$	120,740		3.15	%	$	11,105			-0.11			9.2	%

Total Interest-bearing liabilities	$	659,321		1.11	%	$	633,844		1.31	%	$	25,477			-0.20	%		4.0	%

Non-interest bearing Deposits	$	96,213		0.00	%	$	81,272		0.00	%	$	14,941			0.00	%		18.4	%

Page 15 of 18

Interest-bearing Liabilities: Linked Quarter Comparison
Average balances	09/30/2012		09/30/2012			06/30/2012		06/30/2012			Change			Change			%Balance
(In 000’s)	$Balance		Avg. Yield			$Balance		Avg. Yield			$Balance			Avg. Yield			Change
NOW Accounts	$	124,017		0.22	%	$	123,851		0.20	%	$	166			0.02	%		0.1	%
Non-interest bearing Deposits		91,077		0.00	%		93,721		0.00	%		(2,644	)		0.00	%		-2.8	%
Checking Total	$	215,094		0.12	%	$	217,572		0.12	%	$	(2,478	)		0.00	%		-1.1	%

Savings Accounts	$	198,079		0.33	%	$	196,611		0.33	%	$	1,468			0.00	%		0.7	%
Money Market Accounts		54,791		0.18	%		52,489		0.25	%		2,302			-0.07	%		4.4	%

Total Smart Growth Deposits	$	467,964		0.22	%	$	466,672		0.22	%	$	1,292			0.00	%		0.3	%

Time Deposits	$	144,821		1.75	%	$	150,537		1.92	%	$	(5,716	)		-0.17	%		-3.8	%

Total Deposits	$	612,785		0.58	%	$	617,209		0.64	%	$	(4,424	)		-0.06	%		-0.7	%

FHLB Advances	$	141,565		2.85	%	$	123,681		3.27	%	$	17,884			-0.42	%		14.5	%

Total Interest-bearing liabilities	$	663,273		1.14	%	$	647,169		1.23	%	$	16,104			-0.09	%		2.5	%

Non-interest bearing Deposits	$	91,077		0.00	%	$	93,721		0.00	%	$	(2,644	)		0.00	%		-2.8	%

Interest-bearing Liabilities: Average Quarter Balances
Average balances	09/30/2012		09/30/2012			09/30/2011		09/30/2011			Change			Change			%Balance
(In 000's)	$Balance		Avg. Yield			$Balance		Avg. Yield			$Balance			Avg. Yield			Change
NOW Accounts	$	124,017		0.22	%	$	108,579		0.14	%	$	15,438			0.08	%		14.2	%
Non-interest bearing Deposits		91,077		0.00	%		87,454		0.00	%		3,623			0.00	%		4.1	%
Checking Total	$	215,094		0.12	%	$	196,033		0.08	%	$	19,061			0.04	%		9.7	%

Savings Accounts	$	198,079		0.33	%	$	191,840		0.33	%	$	6,239			0.00	%		3.3	%
Money Market Accounts		54,791		0.18	%		54,787		0.30	%		4			-0.12	%		0.0	%

Total Smart Growth Deposits	$	467,964		0.22	%	$	442,660		0.22	%	$	25,304			0.00	%.		5.7	%

Time Deposits	$	144,821		1.75	%	$	165,284		2.25	%	$	(20,463	)		-0.50	%		-12.4	%

Total Deposits	$	612,785		0.58	%	$	607,944		0.77	%	$	4,841			-0.19	%		0.8	%

FHLB Advances	$	141,565		2.85	%	$	92,514		3.93	%	$	49,051			-1.08	%		53.0	%

Total Interest-bearing liabilities	$	663,273		1.14	%	$	613,004		1.36	%	$	50,269			-0.22	%		8.2	%

Non-interest bearing Deposits	$	91,077		0.00	%	$	87,454		0.00	%	$	3,623			0.00	%		4.1	%

Page 16 of 18

Quarter-End Loan Quality Details
December 31, 2012	Total							Special
(In Thousands)	Loans		Classified		% Total			Mention		% Total			Pass		% Total
Commercial Loans
Commercial Land	$	14,067	$	4,537		32.3	%	$	--		0.0	%	$	9,530		67.7	%
Commercial Construction		7,486		--		0.0	%		367		4.9	%		7,119		95.1	%
Commercial Real Estate		123,418		3,389		2.7	%		863		0.7	%		119,166		96.6	%
Commercial Non Real Estate		33,364		157		0.5	%		227		0.7	%		32,980		98.8	%
Total Commercial	$	178,335	$	8,083		4.5	%	$	1,457		0.8	%	$	168,795		94.7	%

Residential Loans
Residential Construction	$	9,622	$	--		0.0	%	$	--		0.0	%	$	9,622		100.0	%
Residential		376,546		4,252		1.1	%		325		0.1	%		371,969		98.8	%
Total Residential	$	386,168	$	4,252		1.1	%	$	325		0.1	%	$	381,591		98.8	%

Consumer Loans
Mobile Homes	$	38,055	$	576		1.5	%	$	--		0.0	%	$	37,479		98.5	%
Consumer Other		41,840		291		0.7	%		195		0.5	%	$	41,354		98.8	%
Total Consumer	$	79,895	$	867		1.1	%	$	195		0.2	%	$	78,833		98.7	%

Total All Loans	$	644,398	$	13,202		2.0	%	$	1,977		0.3	%	$	629,219		97.6	%

Page 17 of 18

Quarter-End Loan Quality Details
September 30, 2012	Total							Special
(In Thousands)	Loans		Classified		% Total			Mention		% Total			Pass		% Total
Commercial Loans
Commercial Land	$	13,312	$	4,658		35.0	%	$	17		0.1	%	$	8,637		64.9	%
Commercial Construction		7,357		--		0.0	%		370		5.0	%		6,987		95.0	%
Commercial Real Estate		120,558		3,524		2.9	%		872		0.7	%		116,162		96.4	%
Commercial Non Real Estate		34,032		154		0.5	%		50		0.1	%		33,828		99.4	%
Total Commercial	$	175,259	$	8,336		4.8	%	$	1,309		0.7	%	$	165,614		94.5	%

Residential Loans
Residential Construction	$	9,478	$	--		0.0	%	$	--		0.0	%	$	9,478		100.0	%
Residential		413,500		4,561		1.1	%		328		0.1	%		408,611		98.8	%
Total Residential	$	422,978	$	4,561		1.1	%	$	328		0.1	%	$	418,089		98.8	%

Consumer Loans
Mobile Homes	$	37,030	$	424		1.1	%	$	--		0.0	%	$	36,606		98.9	%
Consumer Other		41,110		254		0.6	%		176		0.4	%	$	40,680		99.0	%
Total Consumer	$	78,140	$	678		0.9	%	$	176		0.2	%	$	77,286		98.9	%

Total All Loans	$	676,377	$	13,575		2.0	%	$	1,813		0.3	%	$	660,989		97.7	%

Page 18 of 18

TECHE HOLDING CO - FORM 8-K - EX-99 - EXHIBIT 99 - PRESS RELEASE - January 23, 2013

Attached files

TECHE HOLDING CO Reports