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

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8-K - FORM 8-K 2-4-14 - TECHE HOLDING COMPANY - TECHE HOLDING CO	f8k_020414-0123.htm

NEW IBERIA, LA – NYSE-MKT: TSH- Patrick Little, President and CEO of Teche Holding Company (the “Company”), holding company for Teche Federal Bank, today reported on earnings for the Company for the quarter ended December 31, 2013, the first quarter of fiscal year 2014.

Earnings for the quarter ended December 31, 2013 amounted to $2.4 million, or $1.15 per diluted share. This is compared to $3.1 million, or $1.49 per diluted share, for the same quarter in fiscal 2013 that included an after-tax gain of $1.3 million from the sale of $46.3 million in mortgage loans. There was no similar transaction in this quarter ending December 31, 2013 resulting in a decrease of $0.34 per diluted share, or 22.8% compared to the prior year first quarter results.

“We had solid earnings this quarter on top of record EPS for the past five fiscal years,” said Little. We had solid growth in the commercial, consumer, and mortgage loan categories.

The Company reported the following points of interest:

·	SmartGrowth Deposits increased 0.2% over the linked quarter-end and 2.0% compared to a year ago. SmartGrowth Deposits amounted to 77.1% of total deposits at December 31, 2013, compared to 76.7% at September 30, 2013 and 77.7% a year ago.

·	Checking Account Balances increased 4.1% compared to the linked quarter-end and 10.6% compared to December 31, 2012.

·	The average rate paid on all deposits was 0.40% for the quarter compared to 0.40% for the linked quarter and 0.53% for the same quarter in the prior fiscal year.

·	Quarterly operating revenue decreased slightly to $11.9 million for the current quarter, as compared to $12.0 million in the linked quarter and $13.5 million a year ago.

·	Tangible book value per share increased to $42.29, an increase of 1.5%, or $0.61, compared to September 30, 2013 and 6.1%, or $2.43, year-over-year.

·	Net charge offs for the quarter amounted to 0.02% of average loans.

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Capital

Over the past twelve months, stockholders’ equity increased 8.2% to a record $91.7 million at December 31, 2013, while assets increased 4.4% to $876.7 million. The tangible equity ratio at December 31, 2013 increased to 10.09%, compared to 9.70% a year ago. Tangible book value per common share increased to a record $42.29, an increase of 6.1% compared to a year ago. Risk based capital remained strong at 14.34%, and the equity to assets ratio increased to 10.46% from 10.09% a year ago.

During the quarter ended December 31, 2013, the Company did not repurchase any stock.

QUARTERLY COMPARISON	Dec '13			Sep '13			Jun '13			Mar '13			Dec '12
Stockholders' Equity (in millions)	$	91.7		$	89.1		$	86.7		$	86.6		$	84.8
Ratio of Equity to Assets		10.46	%		10.40	%		10.32	%		10.07	%		10.09	%
Basic Earnings Per Share	$	1.17		$	1.05		$	0.96		$	0.76		$	1.51
Tangible Equity Ratio		10.09	%		10.01	%		9.92	%		9.69	%		9.70	%
Total Risk-Based Capital Ratio		14.34	%		14.31	%		14.31	%		14.38	%		14.34	%
Book Value Per Common Share	$	44.04		$	43.47		$	42.82		$	42.40		$	41.65
Tangible Book Value Per Common Share	$	42.29		$	41.68		$	41.06		$	40.62		$	39.86
Total Assets (in millions)	$	876.7		$	856.7		$	839.8		$	860.3		$	839.7

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 ‘13			Sep ‘13			Jun ‘13			Mar ‘13			Dec '12
Net Charge-offs/Average Loans		0.02	%		0.02	%		0.01	%		0.05	%		0.07	%
ALLL*/NPLs		229.00	%		307.34	%		158.84	%		158.54	%		87.76	%
ALLL*/NPAs		200.43	%		236.57	%		132.76	%		138.95	%		81.52	%
ALLL*/Loans		1.10	%		1.15	%		1.20	%		1.26	%		1.28	%
NPAs/Assets		0.44	%		0.39	%		0.72	%		0.68	%		1.20	%

*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 ‘13		Sep '13		Jun '13		Mar '13		Dec '12
Beginning ALLL	$	7,868	$	8,038	$	8,135	$	8,234	$	8,559
Provision for Loan Losses		0		0		0		250		150
Net Charge-offs		159		170		97		349		475
Ending ALLL	$	7,709	$	7,868	$	8,038	$	8,135	$	8,234
Ending ALLL (net of specific reserves)	$	7,571	$	7,730	$	8,038	$	8,135	$	8,234

The allowance for loan losses was 1.10% of total loans, or $7.7 million, at December 31, 2013 compared to 1.15% of total loans, or $7.9 million, at September 30, 2013 and 1.28% of total loans, or $8.2 million, at December 31, 2012.

Net charge-offs for the quarter were $0.2 million, or 0.02% of average loans, compared to $0.5 million, or 0.07% of average loans, for the same period a year ago. For the twelve months ended December 31, 2013, net

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charge offs were $0.8 million, or 0.12% of average loans, compared to $1.9 million, or 0.29% of loans, for the twelve months ended December 31, 2012.

Non-performing assets increased slightly to $3.9 million, or 0.44% of total assets, at December 31, 2013 compared to $3.3 million, or 0.39% of total assets, at September 30, 2013 and $10.3 million, or 1.20% of total assets, a year ago. The increase from the linked quarter was due to slight increases in delinquent loans offset by lower balances on real estate owned. The decrease from one year ago was primarily due to lower commercial loan delinquencies.

Revenue

Net Interest Income quarterly comparison (In 000’s)	Dec ‘13		Sep ‘13		Jun ‘13		Mar ‘13		Dec '12
Interest Income	$	9,475	$	9,463	$	9,392	$	9,002	$	9,571
Interest Expense		1,582		1,591		1,630		1,697		1,832
Net Interest Income	$	7,893	$	7,872	$	7,762	$	7,305	$	7,739

Net interest income increased slightly compared to the linked quarter while increasing $0.2 million from the same quarter last year.

Net Interest Margin and Spread quarterly comparison	Dec ‘13			Sep '13			Jun '13			Mar '13			Dec '12
Yield on Earning Assets		4.80	%		4.91	%		4.85	%		4.66	%		4.92	%
Cost of Interest Bearing Liabilities		0.96	%		0.97	%		1.00	%		1.04	%		1.11	%
Spread		3.85	%		3.93	%		3.86	%		3.62	%		3.80	%
Net Interest Margin		4.00	%		4.08	%		4.01	%		3.78	%		3.98	%

Net interest margin amounted to 4.00% for the three-month period ended December 31, 2013, compared to 3.98% for the three months ended December 31, 2012. The increase was primarily due to lower deposit rates offset somewhat by increased FHLB advance rates along with lower rates on both loans and investments.

Spread amounted to 3.85% for the three month period ended December 31, 2013, compared to 3.80% for the same period in the previous year. Compared to the same quarter last year, the average yield on earning assets decreased 12 basis points from 4.92% to 4.80%, while the average cost of funds decreased 15 basis points from 1.11% to 0.96%.

Operating Revenue

Operating revenue consisting of net interest income (before provisions for loan losses) plus non-interest income, amounted to $11.9 million for the quarter ended December 31, 2013, compared to $13.5 million for the same quarter in 2012. The 2012 quarter included a $2.0 million before tax gain from the sale of $46.3 million in mortgage loans.

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

Operating Revenue quarterly comparison (in millions)	Dec 13		Sep '13		Jun '13		Mar '13		Dec ‘12
Net Interest Income	$	7.9	$	7.9	$	7.8	$	7.3	$	7.7
Non Interest Income		4.0		4.1		3.9		4.0		5.8
Operating Revenue	$	11.9	$	12.0	$	11.7	$	11.3	$	13.5

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Non-Interest Income

Non-interest income was $4.0 million for the quarter ended December 31, 2013, as compared to $4.2 million in the linked quarter and $5.8 million for the same quarter in 2012. The 2012 quarter included a $2.0 million before tax gain from the sale of $46.3 million in mortgage loans. Non-interest income amounted to 1.86% of average assets for the quarter ended December 31, 2013 compared to 1.96% for the linked quarter and 2.73% a year ago.

Non-Interest Income & Expense
quarterly comparison (in thousands)	Dec '13			Sep '13			Jun '13			Mar '13			Dec '12
Interchange fee Income	$	860		$	907		$	954		$	839		$	826
Other Non-Interest Income	$	3,166		$	3,247		$	2,950		$	3,132		$	4,986
Total Non-Interest Income	$	4,026		$	4,154		$	3,904		$	3,971		$	5,812
Total Non-Interest Income/Avg. Assets		1.86	%		1.96	%		1.84	%		1.87	%		2.73	%
Non-Interest Expense	$	8,450		$	8,797		$	8,737		$	8,705		$	8,752
Non-Interest Expense/Avg. Assets		3.90	%		4.15	%		4.11	%		4.11	%		4.11	%

Non-Interest Expense

For the quarter ended December 31, 2013, non-interest expense was $8.5 million, or 3.90% of average assets, compared to $8.8 million, or 4.15% of average assets, in the linked quarter, which was a decrease of 3.9%, primarily due to decreases in compensation, marketing and professional expenses, partially offset by increases in occupancy expense. Compared to the same quarter in fiscal 2012, non-interest expense decreased by $0.3 million, or 3.5%, from $8.8 million to $8.5 million, which was primarily due to decreases in compensation, marketing and professional expenses, partially offset by increases in occupancy expense.

Net Income and Dividends

On November 20, 2013, the Board of Directors declared a $0.38 per share quarterly dividend. Based on the closing price of the Company’s common stock of $50.13 per share on November 20, 2013, the annualized dividend yield was 3.03%. Since 2003, the Company has increased dividends for eleven consecutive years. During fiscal 2013, the Company declared dividends totaling $1.475 per share.

QUARTERLY COMPARISON	Dec ‘13		Sep '13		Jun '13		Mar '13		Dec '12
Dividends Declared Per Share	$	0.38	$	0.375	$	0.37	$	0.00	$	0.73
Basic Earnings Per Common Share	$	1.17	$	1.05	$	0.96	$	0.76	$	1.51
Diluted Earnings Per Common Share	$	1.15	$	1.03	$	0.95	$	0.75	$	1.49

Loans

QUARTERLY COMPARISON (in millions)	Dec ‘13		Sep '13		Jun '13		Mar'13		Dec '12
SmartGrowth Loans
Consumer	$	134.1	$	129.6	$	122.4	$	115.8	$	113.4
Commercial		233.5		224.2		216.9		212.4		220.5
Home Equity		41.4		41.6		41.7		42.1		42.5
SmartMortgages		115.3		113.6		110.6		104.0		100.8
Total SmartGrowth Loans	$	524.3	$	509.0	$	491.6	$	474.3	$	477.2
Mortgage Loans (owner occupied conforming)		179.5		175.4		176.2		169.0		165.4
Total Loans	$	703.8	$	684.4	$	667.8	$	643.3	$	642.6

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Linked Quarter Comparison. Gross loans receivable increased to $703.8 million at December 31, 2013 from $684.4 million at September 30, 2013, an increase of $19.4 million or 2.8%, primarily due to increases in all loan categories with commercial loans experiencing the most growth with an increase of $9.3 million. SmartGrowth Loans, consisting of commercial loans, home equity loans, SmartMortgage loans, and consumer loans, were $524.3 million, or 74.5% of total loans, at December 31, 2013, compared to $509.0 million, or 74.4%, at September 30, 2013, a three month increase of $15.3 million, or 3.0%.

Commercial loan balances at December 31, 2013 amounted to $233.5 million compared to $224.2 million at September 30, 2013, a three month increase of $9.3 million, or 4.1%. Consumer loan balances at December 31, 2013 amounted to $134.1 million compared to $129.6 million at September 30, 2013, a linked quarter increase of $4.5 million, or 3.5%.

One Year Comparison. Gross loans receivable increased to $703.8 million at December 31, 2013 from $642.6 million at December 31, 2012, a twelve month increase of $61.2 million, or 9.5%. SmartGrowth Loans increased to $524.3 million at December 31, 2013 from $477.2 million at December 31, 2012, a twelve month increase of $47.1 million, or 9.9%.

Commercial loan balances at December 31, 2013 amounted to $233.5 million compared to $220.5 million at December 31, 2012, a twelve month increase of $13.0 million, or 5.9%. Consumer loan balances at December 31, 2013 amounted to $134.1 million, compared to $113.4 million at December 31, 2012, a twelve month increase of $20.7 million, or 18.3%.

“We made over $52.7 million in loans this quarter,” said Little, “including $49.6 million in SmartGrowth loans. The Southwest Louisiana region is a great area with a growing economy and low unemployment.”

Deposits

QUARTERLY COMPARISON (in millions)	Dec ‘13			Sep '13			Jun '13			Mar '13			Dec ‘12
SmartGrowth Deposits
Checking	$	255.4		$	245.4		$	252.3		$	259.0		$	230.8
Money Market		44.9			50.7			49.7			52.1			55.0
Savings		199.8			203.0			209.9			210.6			204.2
Total SmartGrowth Deposits	$	500.1		$	499.1		$	511.9		$	521.7		$	490.0
Time Deposits		148.4			151.7			135.5			138.7			140.6
Total Deposits	$	648.5		$	650.8		$	647.4		$	660.4		$	630.6
Avg. Yield on Deposits		0.40	%		0.40	%		0.41	%		0.45	%		0.53	%
Avg. Yield on Checking		0.07	%		0.07	%		0.07	%		0.10	%		0.12	%

Linked Quarter Comparison. Total deposits decreased to $648.5 million at December 31, 2013 from $650.8 million at September 30, 2013, a linked quarter decrease of $2.3 million, or 0.4%. The Company’s SmartGrowth Deposit Accounts, consisting of checking accounts, money market accounts, and savings accounts, increased $1.0 million, or 0.2%, to $500.1 million at December 31, 2013, from $499.1 million at September 30, 2013.

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Checking account balances at December 31, 2013 increased $10.0 million, or 4.1%, to $255.4 million from $245.4 million at September 30, 2013.

One Year Comparison. Total deposits increased to $648.5 million at December 31, 2013 from $630.6 million at December 31, 2012, a twelve month increase of $17.9 million, or 2.8%. Total SmartGrowth Deposits increased $10.1 million, or 2.1%, from $490.0 million at December 31, 2012 to $500.1 million at December 31, 2013.

SmartGrowth Deposits amounted to 77.1% of total deposits as of December 31, 2013, compared to 77.7% at December 31, 2012.

Checking account balances have increased 10.7%, or $24.6 million, in the past 12 months from $230.8 million at December 31, 2012 to $255.4 million at December 31, 2013. Checking account balances at December 31, 2013 accounted for 39.4% of total deposits, compared to 36.6% at December 31, 2012.

Teche Holding Company is the parent company of Teche Federal Bank, which operates twenty offices in South Louisiana and serves over 86,000 customers. Teche is the fourth largest publicly traded bank holding company based in Louisiana with over $876 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.

As previously announced, on January 12, 2014, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with IBERIABANK Corporation (“IBKC”), the parent company of IBERIABANK. Under the Merger Agreement, subject to the receipt of shareholder and regulatory approval and the satisfaction of certain other conditions, the Company will merge with and into IBKC (the “Merger”) after which Teche Federal Bank is expected to merge with and into IBERIABANK. As a result of the Merger, each share of Company common stock will be exchanged for 1.162 shares of IBKC common stock, subject to adjustment as set forth in the Merger Agreement.

Important Additional Information.

This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. In connection with the Merger, IBKC will file with the Securities and Exchange Commission (“SEC”) a registration statement on Form S-4 that will include a proxy statement/prospectus for the shareholders of the Company. The Company will mail the final proxy statement/prospectus to its shareholders. BEFORE MAKING ANY VOTING OR INVESTMENT DECISION, INVESTORS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS REGARDING THE MERGER AND ANY OTHER RELEVANT DOCUMENTS CAREFULLY IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE MERGER. The proxy statement/prospectus, as well as other filings containing information about IBKC and the Company, will be available without charge, at the SEC’s Internet site (http://www.sec.gov). Copies of the proxy statement/prospectus and the filings with the SEC that will be incorporated by reference in the proxy statement/prospectus can also be obtained, when available, without charge, from IBKC’s website (http://www.iberiabank.com), under the heading “Investor Information” and on the Company’s website (http://www.teche.com).

IBKC and the Company, and certain of their respective directors, executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies from the shareholders of the Company in respect of the Merger. Information regarding the directors and executive officers of IBKC, including

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their beneficial ownership of IBKC’s common stock, is set forth in the definitive proxy statement for IBKC’s 2013 annual meeting of shareholders, as filed with the SEC on April 12, 2013 and in Forms 3, 4 and 5 filed with the SEC by its officers and directors. Information regarding the directors and executive officers of the Company, including their beneficial ownership of the Company’s common stock, is set forth in the definitive proxy statement for the Company’s 2014 annual meeting of shareholders, as filed with the SEC on December 30, 2013 and in Forms 3, 4 and 5 filed with the SEC by its officers and directors. Additional information regarding the interests of such participants will be included in the proxy statement/prospectus and other relevant documents regarding the Merger filed with the SEC when they become available.

Caution About Forward-Looking Statements

This press release may contain “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. In general, forward-looking statements usually use words such as “may,” “believe,” “expect,” “anticipate,” “intend,” “will,” “should,” “plan,” “estimate,” “predict,” “continue,” and “potential” or the negative of these terms or other comparable terminology. Forward-looking statements represent management’s beliefs, based upon information available at the time the statements are made, with regard to the matters addressed; they are not guarantees of future performance. Forward-looking statements are subject to numerous assumptions, risks and uncertainties that change over time and could cause actual results or financial condition to differ materially from those expressed in or implied by such statements. Factors that could cause or contribute to such differences include, but are not limited to, the possibility that expected benefits may not materialize in the time frame expected or at all, or may be more costly to achieve, that the Merger may not be timely completed, if at all, that prior to completion of the Merger or thereafter, IBKC’s and the Company’s respective business may not perform as expected due to transaction-related uncertainties or other factors; that the parties are unable to implement successful integration strategies; that the required regulator, shareholder, or other closing conditions are not satisfied in a timely manner, or at all, reputational risks and the reaction of the parties’ customers to the Merger; diversion of management time to Merger-related issues, and other factors and risk influences contained in the cautionary language included under the headings “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in IBKC’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012, and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2013, June 30, 2013 and September 30, 2013 and other documents subsequently filed by IBKC with the SEC and under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2013, and other documents subsequently filed by the Company with the SEC. Consequently, no forward-looking statement can be guaranteed. Neither IBKC nor the Company undertakes any obligation to update or revise any forward-looking statements, whether as a result of all information, future events or otherwise. For any forward-looking statements made in this press release or any related documents, protection under the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 is being claimed.

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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	2013			2013			2013			2013			2012
Interest Income	$	9,475		$	9,463		$	9,392		$	9,002		$	9,571
Interest Expense		1,582			1,591			1,630			1,697			1,832
Net Interest Income		7,893			7,872			7,762			7,305			7,739
Provision for Loan Losses		-			-			-			250			150
Net Interest Income after
Provision for Loan Losses		7,893			7,872			7,762			7,055			7,589
Non Interest Income		4,026			4,154			3,904			3,971			5,812
Non Interest Expense		8,450			8,797			8,737			8,705			8,752
Income Before Income Taxes		3,469			3,229			2,929			2,321			4,649
Income Taxes		1,054			1,082			976			762			1,577
Net Income	$	2,415		$	2,147		$	1,953		$	1,559		$	3,072
Selected Financial Data
Dividends Declared Per Share	$	0.38		$	0.375		$	0.37		$	0.00		$	0.73
Basic Earnings Per Common Share	$	1.17		$	1.05		$	0.96		$	0.76		$	1.51
Diluted Earnings Per Common Share	$	1.15		$	1.03		$	0.95		$	0.75		$	1.49
Annualized Return on Avg. Assets		1.11	%		1.01	%		0.92	%		0.74	%		1.44	%
Annualized Return on Avg. Equity		10.49	%		9.63	%		8.89	%		7.19	%		14.17	%
Annualized Return on Avg.
Tangible Equity (1)		10.93	%		10.05	%		9.27	%		7.52	%		14.80	%
Yield on Interest Earning Assets		4.80	%		4.91	%		4.85	%		4.66	%		4.92	%
Cost of Interest Bearing Liabilities		0.96	%		0.97	%		1.00	%		1.04	%		1.11	%
Spread		3.85	%		3.93	%		3.86	%		3.62	%		3.80	%
Net Interest Margin		4.00	%		4.08	%		4.01	%		3.78	%		3.98	%
Non-Interest Income/Avg. Assets		1.86	%		1.96	%		1.84	%		1.87	%		2.73	%
Non-Interest Expense/Avg. Assets		3.90	%		4.15	%		4.11	%		4.11	%		4.11	%
Quarterly Net Charge-offs/Avg. Loans		0.02	%		0.02	%		0.01	%		0.05	%		0.07	%
Weighted avg. shares Outstanding
Basic		2,059			2,036			2,030			2,038			2,039
Diluted		2,098			2,078			2,064			2,066			2,064
AVERAGE BALANCE SHEET DATA
Total Assets	$	867,027		$	847,261		$	849,265		$	847,615		$	851,126
Earning assets	$	789,228		$	771,019		$	773,856		$	772,248		$	778,592
Loans	$	695,696		$	676,957		$	655,058		$	641,192		$	667,191
Interest-bearing deposits	$	548,762		$	549,331		$	547,249		$	538,889		$	527,476
Total deposits	$	653,539		$	646,746		$	648,985		$	640,504		$	623,689
Total stockholders’ equity	$	92,067		$	89,187		$	87,892		$	86,682		$	86,713

(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	$	92,067		$	89,187		$	87,892		$	86,682		$	86,713
Less average goodwill and other intangible assets,
net of related income taxes		3,652			3,653			3,655			3,656			3,657
Average Tangible Equity	$	88,415		$	85,534		$	84,237		$	83,026		$	83,056

Net Income	$	2,415		$	2,147		$	1,953		$	1,559		$	3,072
Plus Amortization of core deposit
intangibles, net of related income taxes		1			1			1			1			1
Net Income, as adjusted	$	2,416		$	2,148		$	1,954		$	1,560		$	3,073

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

	Dec. 2013			Sep. 2013			Jun. 2013			Mar. 2013			Dec. 2012
SmartGrowth Loans
Consumer	$	134,090		$	129,571		$	122,379		$	115,803		$	113,365
Commercial		233,459			224,217			216,887			212,359			220,463
Home Equity		41,451			41,628			41,737			42,107			42,546
SmartMortgage Loans		115,261			113,561			110,586			104,040			100,859
Total SmartGrowth Loans		524,261			508,977			491,589			474,309			477,233
Mortgage Loans (owner occupied conforming)		179,524			175,426			176,188			168,989			165,364
		703,785			684,403			667,777			643,298			642,597
Allowance for Loan Losses		(7,709	)		(7,868	)		(8,038	)		(8,135	)		(8,234	)
Loans Receivable, Net		696,076			676,535			659,739			635,163			634,363

Cash and Securities		116,809			116,511			116,709			162,262			142,406
Goodwill and Other Intangibles		3,652			3,653			3,654			3,656			3,657
Foreclosed Real Estate		467			741			950			639			697
Other		59,719			59,224			58,769			58,609			58,575
TOTAL ASSETS	$	876,723		$	856,664		$	839,821		$	860,329		$	839,698

SmartGrowth Deposits
Checking	$	255,347		$	245,392		$	252,278		$	259,014		$	230,845
Money Market		44,902			50,652			49,768			52,077			54,955
Savings		199,833			203,010			209,896			210,636		204,241
Total Smart Growth Deposits		500,082			499,054			511,942			521,727			490,041
Time Deposits		148,393			151,737			135,490			138,728		140,598
Total Deposits		648,475			650,791			647,432			660,455			630,639

FHLB Advances		129,123			108,997			98,757			107,903			117,034
Other Liabilities		7,388			7,815			6,971			5,340			7,258
Stockholders’ Equity		91,737			89,061			86,661			86,631			84,767
TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY	$	876,723		$	856,664		$	839,821		$	860,329		$	839,698

Ratio of Equity to Assets		10.46	%		10.40	%		10.32	%		10.07	%		10.09	%
Tangible Equity Ratio		10.09	%		10.01	%		9.92	%		9.69	%		9.70	%
Total Risk-Based Capital Ratio		14.34	%		14.31	%		14.31	%		14.38	%		14.34	%
Book Value per Common Share	$	44.04		$	43.47		$	42.82		$	42.40		$	41.65
Tangible Book Value Per Common Share (1)	$	42.29		$	41.68		$	41.06		$	40.62		$	39.86
Shares Outstanding (in thousands)		2,083			2,049			2,024			2,043			2,035
Non-performing Assets/Total Assets		0.44	%		0.39	%		0.72	%		0.68	%		1.20	%
ALLL/Loans		1.10	%		1.15	%		1.20	%		1.26	%		1.28	%
ALLL/NPLs		229.00	%		307.34	%		158.84	%		158.54	%		87.76	%

(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	$	91,737		$	89,061		$	86,661		$	86,631		$	84,767
Less goodwill and other Intangible
assets, net of related income taxes		(3,652	)		(3,651	)		(3,651	)		(3,654	)		(3,656	)
Tangible Stockholders’ Equity	$	88,085		$	85,410		$	83,010		$	82,977		$	81,111

Total Assets	$	876,723		$	856,664		$	839,821		$	860,329		$	839,698
Less goodwill and other Intangible
assets, net of related income taxes		(3,652	)		(3,651	)		(3,651	)		(3,654	)	(3,656		)
Total Tangible Assets	$	873,071		$	853,013		$	836,170		$	856,675		$	836,042

Page 9 of 18

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

	Dec. 2013			Dec. 2012			Dec. 2011			Dec. 2010
SmartGrowth Loans
Consumer	$	134,090		$	113,365		$	107,399		$	111,139
Commercial		233,459			220,463			213,659			208,797
Home Equity		41,451			42,546			47,261			52,182
SmartMortgage Loans		115,261			100,859			98,221			89,389
Total SmartGrowth Loans		524,261			477,233			466,540			461,507
Mortgage Loans (owner occupied conforming)		179,524			165,364			166,088			132,224
		703,785			642,597			632,628			593,731
Allowance for Loan Losses	(7,709		)		(8,234	)		(8,392	)		(9,953	)
Loans Receivable, Net		696,076			634,363			624,236			583,778

Cash and Securities		116,809			142,406			130,126			110,405
Goodwill and Other Intangibles		3,652			3,657			3,667			3,682
Foreclosed Real Estate		467			697			1,012			2,079
Other		59,719			58,575			54,504			53,757
TOTAL ASSETS	$	876,723		$	839,698		$	813,545		$	753,701

SmartGrowth Deposits
Checking	$	255,347		$	230,845		$	199,021		$	186,240
Money Market		44,902			54,955			52,019			55,557
Savings		199,833			204,241			188,303			169,326
Total Smart Growth Deposits		500,082			490,041			439,343			411,123
Time Deposits		148,393			140,598			159,968			172,316
Total Deposits		648,475			630,639			599,311			583,439

FHLB Advances		129,123			117,034			127,621			87.756
Other Liabilities		7,388			7,258			5,501			6,009
Stockholders’ Equity		91,737			84,767			81,112			76,497
TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY	$	876,723		$	839,698		$	813,545		$	753,701

Ratio of Equity to Assets		10.46	%		10.09	%		9.97	%		10.15	%
Tangible Equity Ratio		10.09	%		9.70	%		9.56	%		9.71	%
Total Risk-Based Capital Ratio		14.34	%		14.34	%		14.09	%		13.79	%
Book Value per Common Share	$	2,083		$	41.65		$	39.24		$	36.81
Tangible Book Value Per Common Share (1)	$	42.29		$	39.86		$	37.47		$	35.04
Non-performing Assets/Total Assets		0.44	%		1.20	%		1.53	%		2.27	%
ALLL/Loans		1.10	%		1.28	%		1.33	%		1.68	%
ALLL/NPLs		229.00	%		87.76	%		73.72	%		66.36	%
Shares Outstanding (in thousands)		2,083			2,035			2,067			2,078

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

Stockholders’ Equity	$	91,737		$	84,767		$	81,112		$	76,497
Less goodwill and other Intangible
assets, net of related income taxes		(3,652	)		(3,656	)		(3,657	)		(3,670	)
Tangible Stockholders’ Equity	$	88,085		$	81,111		$	77,455		$	72,827

Total Assets	$	876,723		$	839,698		$	813,545		$	753,701
Less goodwill and other Intangible
assets, net of related income taxes		(3,652	)		(3,656	)		(3,657	)		(3,670	)
Total Tangible Assets	$	873,071		$	836,042		$	809,888		$	750,031

Page 10 of 18

Quarter-End Loan Data	Total		Net Charge-		Net Charge-			90 Days +		90 Days +
December 31, 2013	Loans		Offs		Offs			Non Accrual		Non Accrual
(In 000’s)	Dollars		Dollars		Percentage			Dollars		Percentage
Real Estate Loans
Construction	$	16,905	$	--		0.00	%	$	--		0.0	%
Permanent, Secured by:
1-4 Dwelling Units:
Revolving, Open-End Loans (HELOC)		23,851		--		0.00	%		19		0.1	%
All Other
Secured by First Liens		385,752		68		0.02	%		3,075		0.8	%
Secured by Junior Liens		5,449		--		0.00	%		--		0.0	%
Multifamily (5+ Dwelling Units)		23,962		--		0.03	%		--		0.0	%
Nonresidential Property (Except Land)		113,873		--		0.06	%		--		0.0	%
Land	31,400			--		0.00	%		105		0.3	%
Consumer	21,292			--		0.00	%		105		0.5	%
Commercial	10,108			--		0.00	%		--		0.0	%
Subtotal – Real Estate Loans	$	601,192	$	68		0.01	%	$	3,199		0.5	%

Non-Real Estate Loans:
Commercial Loans	$	33,365		--		--			--		0.0	%
Consumer Loans:
Loans on Deposits		3,300		--		--			26		0.8	%
Auto Loans		2,798		--		--			14		0.5	%
Mobile Home Loans		45,182		33		0.07	%		308		0.7	%
Other	17,948			58		0.32	%		37		0.2	%
Subtotal – Non Real Estate Loans	$	102,593	$	91		0.09	%	$	385		0.4	%

Gross Loans	$	703,785	$	159		0.02	%	$	3,584		0.5	%

Non-accruals	$	3,234
90 + Days Past Due		350
OREO & Foreclosed		480
Nonperforming Assets (Net)	$	4,064
Performing TDRs		--

Page 11 of 18

Quarter-End Loan Data	Total		Net Charge-			Net Charge-			90 Days +		90 Days +
September 30, 2013	Loans		Offs			Offs			Non Accrual		Non Accrual
(In 000’s)	Dollars		Dollars			Percentage			Dollars		Percentage
Real Estate Loans
Construction	$	13,704	$	--			0.00	%	$	--		0.0	%
Permanent, Secured by:
1-4 Dwelling Units:
Revolving, Open-End Loans (HELOC)		22,939		--			0.00	%		7		0.0	%
All Other
Secured by First Liens		378,800		94			0.02	%		2,319		0.7	%
Secured by Junior Liens		5,909		--			0.00	%		--		0.0	%
Multifamily (5+ Dwelling Units)		22,432		7			0.03	%		--		0.0	%
Nonresidential Property (Except Land)		111,217		62			0.06	%		--		0.0	%
Land		31,710		--			0.00	%		63		0.2	%
Consumer		21,361		--			0.00	%		63		0.3	%
Commercial		10,349		--			0.00	%		--		0.0	%
Subtotal – Real Estate Loans	$	586,711	$	163			0.03	%	$	2,389		0.4	%

Non-Real Estate Loans:
Commercial Loans	$	30,685	$	(16	)		(0.05	%)		--		0.0	%
Consumer Loans:
Loans on Deposits		3,208		--			--			48		1.5	%
Auto Loans		2,795		--			--			12		0.4	%
Mobile Home Loans		43,199		17			0.04	%		246		0.6	%
Other		17,806		6			0.03	%		83		0.5	%
Subtotal – Non Real Estate Loans	$	97,693	$	7			0.01	%	$	389		0.4	%

Gross Loans	$	684,404	$	170			0.02	%	$	2,778		0.4	%

Non-accruals	$	2,425
90 + Days Past Due		353
OREO & Foreclosed		766
Nonperforming Assets (Net)	$	3,544
Performing TDRs		--

Page 12 of 18

Loans: Linked Quarter Comparison
Average Loan	12/31/2013		12/31/2013			09/30/2013		09/30/2013			Change			Change
Balances & Yields (In 000’s)	Balance		Yield			Balance		Yield			Balance			Yield
Real Estate Loans
1-4 Family	$	425,721		4.63	%	$	417,925		4.78	%	$	7,796			-0.15	%
Commercial		147,942		4.98	%		141,727		4.96	%		6,215			0.02	%
		573,663		4.72	%		559,652		4.83	%		14,011			-0.11	%

Non-Real Estate Loans
Commercial	$	32,156		5.23	%	$	30,588		5.31	%	$	1,568			-0.08	%
Consumer		89,877		8.57	%		86,717		8.92	%		3,160			-0.35	%
		122,033		7.69	%		117,305		7.98	%		4,728			-0.29	%

Total All Loans	$	695,696		5.24	%	$	676,957		5.37	%	$	18,739			-0.13	%

Prior Year Comparison	12/31/2013		12/31/2013			12/31/2012		12/31/2012			Change			Change
Average Loan Balances & Yields (In 000’s)	Balance		Yield			Balance		Yield			Balance			Yield
Real Estate Loans
1-4 Family	$	425,721		4.63	%	$	416,485		4.84	%	$	9,236			-0.21	%
Commercial		147,942		4.98	%		136,251		5.25	%		11,691			-0.27	%
		573,663		4.72	%		552,736		4.94	%	$	20,927			-0.22	%

Non-Real Estate Loans
Commercial	$	32,156		5.23	%	$	35,093		5.41	%	$	(2,937	)		-0.18	%
Consumer		89,877		8.57	%		79,362		9.05	%		10,515			-0.48	%
		122,033		7.69	%		114,455		7.93	%		7,578			-0.24	%

Total All Loans	$	695,696		5.24	%	$	667,191		5.45	%	$	28,505			-0.21	%

Page 13 of 18

Loans: Linked Quarter Comparison
Average Loan	09/30/2013		09/30/2013			06/30/2013		06/30/2013			Change		Change
Balances & Yields (In 000’s)	Balance		Yield			Balance		Yield			Balance		Yield
Real Estate Loans
1-4 Family	$	417,925		4.78	%	$	405,580		4.89	%	$	12,345		-0.11	%
Commercial		141,727		4.96	%		136,246		5.02	%		5,481		-0.06	%
Total Real Estate Loans	$	559,652		4.83	%	$	541,826		4.92	%	$	17,826		-0.09	%

Non-Real Estate Loans
Commercial	$	30,588		5.31	%	$	30,088		5.15	%	$	500		-0.16	%
Consumer		86,717		8.92	%		83,144		9.26	%		3,573		-0.34	%
Total Non-Real Estate Loans		117,305		7.98	%		113,232		8.17	%	$	4,073		-0.19	%

Total All Loans	$	676,957		5.37	%	$	655,058		5.48	%	$	21,899		-0.11	%


Loans: Prior Year Comparison
Average Loan	09/30/2013		09/30/2013			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	$	408,585		4.82	%	$	401,968		5.08	%	$	6,617		-0.26	%
Commercial		137,275		5.05	%		135,300		5.51	%		1,975		-0.46	%
	$	545,860		4.87	%	$	537,268		5.19	%	$	8,592		-0.32	%

Non-Real Estate Loans
Commercial	$	31,893		5.23	%	$	28,543		5.79	%	$	3,350		-0.56	%
Consumer		82,465		9.04	%		77,413		9.21	%		5,052		-0.17	%
	$	114,358		7.98	%	$	105,956		8.29	%	$	8,402		-0.31	%

Total All Loans	$	660,218		5.41	%	$	643,224		5.70	%	$	16,994		-0.29	%

Page 14 of 18

Interest-bearing Liabilities: Linked Quarter Comparison
Average balances	12/31/2013		12/31/2013			09/30/2013		09/30/2013			Change			Change			%Balance
(In 000’s)	$Balance		Avg. Yield			$Balance		Avg. Yield			$Balance			Avg. Yield			Change
NOW Accounts	$	148,451		0.12	%	$	144,813		0.12	%	$	3,638			0.05	%
Non-interest bearing Deposits		104,777		0.00	%		97,415		0.00	%		7,362			0.00	%
Checking Total	$	253,228		0.07	%	$	242,228		0.07	%	$	11,000			0.03	%

Savings Accounts	$	200,626		0.11	%	$	205,634		0.11	%	$	(5,009	)		0.00	%
Money Market Accounts		49,639		0.06	%		50,539		0.06	%		(900	)		0.00	%

Total Smart Growth Deposits	$	503,493		0.08	%	$	498,401		0.08	%	$	5,092			0.08	%

Time Deposits	$	150,046		1.47	%	$	148,345		1.47	%	$	1,701			0.00	%

Total Deposits	$	653,539		0.40	%	$	646,746		0.40	%	$	6,793			0.00	%

FHLB Advances	$	113,744		3.25	%	$	103,833		3.62	%	$	9,911			-0.37	%

Total Interest-bearing liabilities	$	662,506		0.96	%	$	653,164		0.97	%	$	9,342			-0.01	%

Non-interest bearing Deposits	$	104,777		0.00	%	$	97,415		0.00	%	$	7,362			0.00	%


Interest-bearing Liabilities: Average Quarter Balances
Average balances	12/31/2013		12/31/2013			12/31/2012		12/31/2012			Change			Change			%Balance
(In 000’s)	$Balance		Avg. Yield			$Balance		Avg. Yield			$Balance			Avg. Yield			Change
NOW Accounts	$	148,451		0.12	%	$	128,492		0.22	%	$	19,959			-0.10	%		15.9	%
Non-interest bearing Deposits		104,777		0.00	%		96,213		0.00	%		8,564			0.00	%		8.9	%
Checking Total	$	253,228		0.07	%	$	224,705		0.12	%	$	28,523			-0.05	%		12.7	%

Savings Accounts	$	200,626		0.11	%	$	203,181		0.33	%	$	(2,555	)		-0.22	%		-1.3	%
Money Market Accounts		49,639		0.06	%		54,445		0.15	%		(4,806	)		-0.09	%		-8.9	%

Total Smart Growth Deposits	$	503,493		0.08	%	$	482,331		0.21	%	$	21,162			-0.13	%		4.4	%

Time Deposits	$	150,046		1.47	%	$	141,358		1.62	%	$	8,688			-0.15	%		6.1	%

Total Deposits	$	653,539		0.40	%	$	623,689		0.53	%	$	29,850			-0.13	%		4.8	%

FHLB Advances	$	113,744		3.25	%	$	131,845		3.04	%	$	(18,101	)		-0.21	%		-13.7	%

Total Interest-bearing liabilities	$	662,506		0.96	%	$	659,321		1.11	%	$	3,185			-0.15	%		-0.5	%

Non-interest bearing Deposits	$	104,777		0.00	%	$	96,213		0.00	%	$	8,564			0.00	%		8.9	%

Page 15 of 18

Interest-bearing Liabilities: Linked Quarter Comparison
Average balances	09/30/2013		09/30/2013			06/30/2013		06/30/2013			Change			Change			%Balance
(In 000’s)	$Balance		Avg. Yield			$Balance		Avg. Yield			$Balance			Avg. Yield			Change
NOW Accounts	$	144,813		0.12	%	$	147,593		0.17	%	$	(2,780	)		-0.05	%		-1.9	%
Non-interest bearing Deposits		97,415		0.00	%		101,736		0.00	%		(4,321	)		0.00	%		-4.2	%
Checking Total	$	242,228		0.07	%	$	249,329		0.10	%	$	(7,101	)		-0.03	%		-2.8	%

Savings Accounts	$	205,634		0.11	%	$	211,168		0.13	%	$	(5,534	)		-0.02	%		-2.6	%
Money Market Accounts		50,539		0.06	%		51,260		0.09	%		(721	)		-0.03	%		-1.4	%

Total Smart Growth Deposits	$	498,401		0.08	%	$	511,757		0.11	%	$	(13,356	)		-0.03	%		-2.6	%

Time Deposits	$	148,345		1.47	%	$	137,228		1.54	%	$	11,117			-0.07	%		8.1	%

Total Deposits	$	646,746		0.40	%	$	648,985		0.41	%	$	(2,239	)		-0.01	%		-0.3	%

FHLB Advances	$	103,833		3.62	%	$	106,484		3.60	%	$	(2,651	)		0.02	%		-2.5	%

Total Interest-bearing liabilities	$	653,164		0.97	%	$	653,733		1.00	%	$	(569	)		-0.03	%		-0.1	%

Non-interest bearing Deposits	$	97,415		0.00	%	$	101,736		0.00	%	$	(4,321	)		0.00	%		-4.2	%


Interest-bearing Liabilities: Average Quarter Balances
Average balances	09/30/2013		09/30/2013			09/30/2012		09/30/2012			Change			Change			%Balance
(In 000’s)	$Balance		Avg. Yield			$Balance		Avg. Yield			$Balance			Avg. Yield			Change
NOW Accounts	$	144,813		0.12	%	$	124,017		0.22	%	$	20,796			-0.10	%		16.8	%
Non-interest bearing Deposits		97,415		0.00	%		91,077		0.00	%		6,338			0.00	%		7.0	%
Checking Total	$	242,228		0.07	%	$	215,094		0.12	%	$	27,134			-0.05	%		12.6	%

Savings Accounts	$	205,634		0.11	%	$	198,079		0.33	%	$	7,555			-0.22	%		3.8	%
Money Market Accounts		50,539		0.06	%		54,791		0.18	%		(4,252	)		-0.12	%		-7.8	%

Total Smart Growth Deposits	$	498,401		0.08	%	$	467,964		0.22	%	$	30,437			-0.14	%		6.5	%

Time Deposits	$	148,345		1.47	%	$	144,821		1.75	%	$	3,524			-0.28	%		2.4	%

Total Deposits	$	646,746		0.40	%	$	612,785		0.58	%	$	33,961			-0.18	%		5.5	%

FHLB Advances	$	103,833		3.62	%	$	141,565		2.85	%	$	(37,732	)		0.77	%		-26.7	%

Total Interest-bearing liabilities	$	653,164		0.97	%	$	663,273		1.14	%	$	(10,109	)		-0.17	%		-1.5	%

Non-interest bearing Deposits	$	97,415		0.00	%	$	91,077		0.00	%	$	6,338			0.00	%		7.0	%

Page 16 of 18

Quarter-End Loan Quality Details
December 31, 2013	Total							Special
(In Thousands)	Loans		Classified		% Total			Mention		% Total			Pass		% Total
Commercial Loans
Commercial Land	$	10,108	$	--		0.0	%	$	--		0.0	%	$	10,108		100.0	%
Commercial Construction		11,631		--		0.0	%		357		3.1	%		11,274		96.9	%
Commercial Real Estate		137,834		3,229		2.3	%		3,802		2.8	%		130,803		94.9	%
Commercial Non Real Estate		33,365		1,314		3.9	%		75		0.2	%		31,976		95.9	%
Total Commercial	$	192,938	$	4,543		2.4	%	$	4,234		2.2	%	$	184,161		95.4	%

Residential Loans
Residential Construction	$	5,275	$	--		0.0	%	$	--		0.0	%	$	5,275		100.0	%
Residential		417,120		4,373		1.0	%		314		0.1	%		412,433		98.9	%
Total Residential	$	422,395	$	4,373		1.0	%	$	314		0.1	%	$	417,708		98.9	%

Consumer Loans
Mobile Homes	$	45,182	$	308		0.7	%	$	--		0.0	%	$	44,874		99.3	%
Consumer Other		45,337		172		0.4	%		--		0.0	%		45,165		99.6	%
Total Consumer	$	90,519	$	480		0.5	%	$	--		0.0	%	$	90,039		99.5	%

Total All Loans	$	705,852	$	9,396		1.3	%	$	4,548		0.7	%	$	691,908		98.0	%

Page 17 of 18

Quarter-End Loan Quality Details
September 30, 2013	Total							Special
(In Thousands)	Loans		Classified		% Total			Mention		% Total			Pass		% Total
Commercial Loans
Commercial Land	$	10,349	$	--		0.0	%	$	--		0.0	%	$	10,349		100.0	%
Commercial Construction		8,593		--		0.0	%		--		0.0	%		8,593		100.0	%
Commercial Real Estate		133,649		5,160		3.8	%		1,781		1.3	%		126,708		94.9	%
Commercial Non Real Estate		30,685		1,311		4.3	%		91		0.3	%		29,283		95.4	%
Total Commercial	$	183,276	$	6,471		3.5	%	$	1,872		1.0	%	$	174,933		95.5	%

Residential Loans
Residential Construction	$	5,112	$	--		0.0	%	$	360		7.0	%	$	4,752		93.0	%
Residential		409,693		3,514		0.9	%		316		0.1	%		405,863		99.0	%
Total Residential	$	414,805	$	3,514		0.8	%	$	676		0.2	%	$	410,615		99.0	%

Consumer Loans
Mobile Homes	$	43,199	$	246		0.6	%	$	--		0.0	%	$	42,953		99.4	%
Consumer Other		45,170		266		0.6	%		--		0.0	%		44,904		99.4	%
Total Consumer	$	88,369	$	512		0.6	%	$	--		0.0	%	$	87,857		99.4	%

Total All Loans	$	686,450	$	10,497		1.5	%	$	2,548		0.4	%	$	673,405		98.1	%

Page 18 of 18

TECHE HOLDING CO - FORM 8-K - EX-99 - EXHIBIT 99 - PRESS RELEASE - February 4, 2014

Attached files

TECHE HOLDING CO Reports