NEW IBERIA, LA -- (Marketwire) -- 07/27/11 -- (NYSE Amex: TSH) -- Patrick Little, President and CEO of Teche Holding Company, holding company for Teche Federal Bank, today reported on earnings for the Company for the quarter ended June 30, 2011, the third quarter of fiscal 2011.
Earnings for the quarter ended June 30, 2011 amounted to $1.8 million, or $0.85 per diluted share, compared to $1.82 million, or $0.87 per diluted share for the same quarter in fiscal 2010, a decrease of $0.02 per diluted share, or 2.3%.
Earnings for the nine month period ended June 30, 2011 amounted to $5.13 million, or $2.45 per diluted share, compared to $5.25 million or $2.49 per diluted share, for the same period in fiscal 2010, a decrease of $0.04 per diluted share, or 1.6%. For the same period in FY 2009, diluted EPS amounted to $2.42.
"We posted record earnings for the past two years in very difficult times and our earnings for the past nine months are near those levels," said Little.
The Company reported the following highlights:
-- Checking Account balances increased 8.2% compared to the linked
quarter and 23.4% compared to June 30, 2010. Checking account
balances now amount to 33.4% of total deposits, compared to 29.3% a
year ago.
-- SmartGrowth Deposits increased 3.9% compared to the linked quarter and
16.1% compared to a year ago. SmartGrowth Deposits amounted to 72.9%
of total deposits, compared to 71.8% at March 31, 2011 and 67.9% a
year ago.
-- Total Deposits increased 2.4% compared to the linked quarter and 8.2%
compared to a year ago.
-- The average yield on all deposits was 0.82% compared to 0.94% for the
linked quarter and 1.25% a year ago.
-- Cost of interest bearing liabilities amounted to 1.43%, compared to
1.57% for the linked quarter and 1.92% a year ago.
-- Net interest margin for the quarter amounted to 4.24%, compared to
4.25% for the linked quarter and 4.18% a year ago.
-- Total Assets increased to $789.0 million, an increase of $6.9 million
for the linked quarter, or 0.88%.
-- All capital measures continue to remain strong.
-- Tangible book value per share increased to a record $36.11.
-- The Bank experienced higher than normal net charge-offs of 0.57% of
loans primarily due to two large commercial credit relationships which
were previously reserved. Net charge offs for the last twelve months
totaled 0.80% of average loans.
-- The Company paid a quarterly dividend of $0.36 per share compared to
$0.355 per share for the quarter ended June 30, 2010, an increase of
1.4%.
-- The Bank completed its conversion from a federally chartered savings
bank to a Louisiana chartered commercial bank, regulated by the
Commissioner of the Office of Financial Institutions of the State of
Louisiana and the Federal Deposit Insurance Corporation (FDIC).
Capital
Dollars in Thousands Jun '11 Mar '11 Dec '10 Sep '10 Jun '10
--------- --------- --------- --------- ---------
Stockholders' Equity $ 78,581 $ 77,578 $ 76,497 $ 75,513 $ 74,549
Ratio of Equity to
Assets 9.96% 9.92% 10.15% 9.92% 9.74%
Tangible Equity
Ratio 9.54% 9.49% 9.71% 9.48% 9.30%
Total Risk-Based
Capital Ratio 14.49% 13.94% 13.79% 13.52% 13.30%
Book Value per
Common Share $ 37.87 $ 37.23 $ 36.81 $ 36.19 $ 35.45
Tangible Book Value
Per Common Share $ 36.11 $ 35.47 $ 35.04 $ 34.43 $ 33.70
Total Assets $ 789,004 $ 782,152 $ 753,701 $ 761,524 $ 765,484
Asset Quality
The following table sets forth asset quality ratios for each of the past five quarters:
Jun '11 Mar '11 Dec '10 Sep '10 Jun '10
--------- --------- --------- --------- ---------
Net Charge-offs/
Average Loans 0.57% 0.09% 0.08% 0.08% 0.05%
ALLL/NPLs 69.94% 68.32% 66.36% 63.92% 59.29%
ALLL/NPAs 56.27% 59.94% 56.36% 51.96% 53.29%
ALLL/Loans 1.39% 1.78% 1.68% 1.55% 1.48%
NPAs/Assets 1.83% 2.22% 2.34% 2.34% 2.16%
The following table sets forth the allowance for loan loss activity for each of the past 5 quarters.
(in 000's) Jun '11 Mar '11 Dec '10 Sep '10 Jun '10
---------- ---------- ---------- ---------- ----------
Beginning ALLL $ 10,452 $ 9,953 $ 9,256 $ 8,830 $ 8,253
Provision for Loan
Losses 1,000 1,000 1,150 900 900
Net Charge-offs 3,329 501 453 474 323
Ending ALLL $ 8,123 $ 10,452 $ 9,953 $ 9,256 $ 8,830
Ending ALLL (net of
specific reserves) $ 8,075 $ 7,455 $ 7,046 $ 7,125 $ 6,513
Net charge-offs for the quarter were $3.3 million, or 0.57% of average loans, compared to $323,000 or 0.05% of average loans for the same period a year ago. For the twelve months ended June 30, 2011, net charge offs were $4.8 million or 0.80% of average loans, compared to $2.3 million or 0.38% of loans for the twelve months ended June 30, 2010. The increase in net charge-offs for the quarter was primarily due to two commercial real estate land and construction credit relationships, which accounted for $2.2 million in charge offs this quarter. These charged off amounts were previously included in the Allowance for Loan Losses as specific reserves.
The allowance for loan losses was $8.1 million or 1.39% of total loans at June 30, 2011. This represented a decrease of $0.7 million from $8.8 million or 1.48% of total loans at June 30, 2010, and a decrease of $2.3 million from $10.5 million or 1.78% of total loans at March 31, 2011, primarily due to net charge-offs during the quarter.
Non-performing assets decreased to $14.4 million, or 1.83% of total assets, at June 30, 2011, compared to $17.3 million, or 2.22% of total assets at March 31, 2011 and $16.4 million, or 2.16% of total assets a year ago, primarily due to charge-offs of previously reserved credits during the quarter. Non-performing assets consist of non-accrual loans, loans 90 days or more past due and other real estate owned.
Net Interest Income
(In 000's) Jun '11 Mar '11 Dec '10 Sep '10 Jun '10
---------- ---------- ---------- ---------- ----------
Interest Income $ 9,758 $ 9,736 $ 10,003 $ 10,163 $ 10,299
Interest Expense 2,185 2,363 2,542 2,728 2,969
---------- ---------- ---------- ---------- ----------
Net Interest Income $ 7,573 $ 7,373 $ 7,461 $ 7,435 $ 7,330
========== ========== ========== ========== ==========
Net interest income for the three months ended June 30, 2011 amounted to $7.57 million compared to $7.33 million for the quarter ended June 30, 2010, an increase of 3.3%, or $243,000 primarily due to a decrease in interest expense.
Net Interest Margin and Spread
Jun '11 Mar '11 Dec '10 Sep '10 Jun '10
--------- --------- --------- --------- ---------
Yield on Earning
Assets 5.46% 5.61% 5.75% 5.84% 5.87%
Cost of Interest
Bearing Liabilities 1.43% 1.57% 1.69% 1.79% 1.93%
Spread 4.03% 4.04% 4.06% 4.05% 3.94%
Net Interest Margin 4.24% 4.25% 4.29% 4.27% 4.18%
Net interest margin amounted to 4.24% for the three-month period ended June 30, 2011; compared to 4.25% for the linked quarter and 4.18% for the three-months ended June 30, 2010.
Spread amounted to 4.03% for the three month period ended June 30, 2011, compared to 3.94% for the same period in the previous year. Compared to the same quarter last year, the average yield on earnings assets decreased 41 basis points from 5.87% to 5.46%, while the average cost of funds decreased 50 basis points from 1.93% to 1.43%.
Yield on Loan
Compared to Cost
of Deposits Jun '11 Mar '11 Dec '10 Sep '10 Jun '10
--------- --------- --------- --------- ---------
Average Yield on
Loans 6.20% 6.17% 6.29% 6.36% 6.39%
Average Cost of
Interest Bearing
Deposits 0.96% 1.08% 1.15% 1.25% 1.41%
The average yield on loans decreased from 6.39% for the quarter ended June 30, 2010 to 6.20% for the quarter ended June 30, 2011. The cost of interest bearing deposits decreased from 1.41% for the quarter ended June 30, 2010 to 0.96% for the quarter ended June 30, 2011.
"SmartGrowth deposits continue to increase, led by growth in checking deposits," said Little. "As a result, our cost of funds continues to go down and our net interest margin remains stable."
The average yield on SmartGrowth deposits is 0.24%, compared to 0.32% for the linked quarter and 0.58% a year ago.
Operating Revenue
Operating Revenue for the quarter, consisting of net interest income (before provisions for loan losses) plus non-interest income, amounted to $11.5 million, which was comparable to the four preceding quarters.
The table below reflects Teche's operating revenues in millions over the past five quarters:
Operating Revenue Jun '11 Mar '11 Dec '10 Sep '10 Jun '10
---------- ---------- ---------- ---------- ----------
Net Interest Income $ 7.6 $ 7.4 $ 7.5 $ 7.4 $ 7.3
Non-interest Income 3.9 3.8 4.0 4.0 4.2
---------- ---------- ---------- ---------- ----------
Operating Revenue $ 11.5 $ 11.2 $ 11.5 $ 11.4 $ 11.5
========== ========== ========== ========== ==========
Non-Interest Income
Non-interest income increased slightly to $3.9 million for the quarter compared to $3.8 million in the linked quarter and $4.2 million a year ago. This amounted to 2.02% of average assets for the quarter, compared to 2.02% for the linked quarter and 2.17% a year ago. Deposit fees comprised 92.4% of non-interest income for the quarter, compared to 90.5% for the linked quarter and 92.0% a year ago. Interchange fees amounted to $881,000 for the quarter, compared to $820,000 for the linked quarter and $849,000 a year ago.
On June 29, 2011, the Federal Reserve approved new regulations affecting interchange fees of Banks over $10 billion in assets, effective October 1, 2011. "Even though these regulations are not effective until our next fiscal year, and even though Teche is exempt from the regulation, management continues to closely monitor these changes," said Little.
Non-interest income amounted to 34.2% of operating income for the quarter ended June 30, 2011, compared to 36.2% for the three months ended June 30, 2010 and to 34.2% for the linked quarter.
Non-Interest Income
(thousands) Jun '11 Mar '11 Dec '10 Sep '10 Jun '10
--------- --------- --------- --------- ---------
Interchange fee
Income 881 820 786 782 849
Other Non-Interest
Income 3,057 3,012 3,186 3,182 3,304
Total Non-Interest
Income 3,938 3,832 3,972 3,964 4,153
Total Non-Interest
Income/Assets 2.02% 2.02% 2.09% 2.08% 2.16%
Non-Interest Expense 7,777 7,918 7,583 7,732 7,877
Non-Interest
Expense/Assets 3.99% 4.17% 3.99% 4.06% 4.11%
Non-Interest Expense
For the quarter, non-interest expense was $7.8 million or 3.99% of average assets, compared to the linked quarter of $7.9 million or 4.17% of average assets, a decrease of 0.18%. Compared to the same quarter in fiscal 2010, non-interest expense decreased $100,000 or 1.3%.
Net Income and Dividends
Since 2003, the Company has increased dividends for eight consecutive years and on June 30, 2011 paid a $0.36 per share quarterly dividend, its sixty-fourth consecutive. Based on the closing price of the Company's common stock on June 30, 2011 of $34.80, the annualized dividend yield was 4.10%.
(In 000's) Jun '11 Mar '11 Dec '10 Sep '10 Jun'10
--------- --------- --------- --------- ---------
Net Income $ 1,790 $ 1,513 $ 1,824 $ 1,847 $ 1,821
Dividends Declared
Per Share $ 0.36 $ 0.36 $ 0.355 $ 0.355 $ 0.355
Basic Earnings Per
Common Share $ 0.86 $ 0.73 $ 0.88 $ 0.89 $ 0.87
Diluted Earnings Per
Common Share $ 0.85 $ 0.72 $ 0.87 $ 0.88 $ 0.87
Annualized Return on
Avg. Assets 0.92% 0.80% 0.96% 0.97% 0.95%
Annualized Return on
Avg. Equity 8.96% 7.74% 9.36% 9.61% 9.60%
Annualized Return on
Avg. Tangible
Equity 9.40% 8.13% 9.84% 10.12% 10.12%
Loans
(In 000's) Jun '11 Mar '11 Dec '10 Sep '10 Jun '10
---------- ---------- ---------- ---------- ----------
SmartGrowth Loans
Consumer $ 109,476 $ 109,092 $ 111,139 $ 111,571 $ 110,855
Commercial 201,324 207,509 208,797 212,933 212,762
Home Equity 51,293 51,045 52,182 53,405 55,860
SmartMortgages 88,019 88,799 89,389 86,959 86,624
---------- ---------- ---------- ---------- ----------
Total SmartGrowth
Loans 450,112 456,445 461,507 464,868 466,101
Mortgage Loans
(owner occupied
conforming) 133,264 131,708 132,224 131,023 131,590
---------- ---------- ---------- ---------- ----------
Total Loans $ 583,376 $ 588,153 $ 593,731 $ 595,891 $ 597,691
Gross loans receivable decreased to $583.4 million at June 30, 2011, from $588.2 million at March 31, 2011 and $597.7 million at June 30, 2010, representing a linked quarter decrease of $4.8 million, or 0.8% and a twelve month decrease of $14.3 million or 2.4%. SmartGrowth Loans, consisting of commercial loans, home equity loans, SmartMortgage loans and consumer loans, were $450.1 million, or 77.2% of total loans at June 30, 2011, compared to $456.4 million, or 77.6% at March 31, 2011 and $466.1 million at June 30, 2010, for a three month decrease of $6.3 million, or 1.4% and a twelve month decrease of $16.0 million, or 3.4%.
"SmartGrowth loans decreased primarily due to a combination of normal repayments, reduced originations and charge-offs this quarter in the commercial portfolio," said Little. "Compared to last year at this time, loan balances are 2.4% lower."
Commercial loan balances at June 30, 2011 amounted to $201.3 million, compared to $207.5 million at March 31, 2011 and $212.7 million at June 30, 2010, for a three month decrease of $6.2 million or 3.0% and a twelve month decrease of $11.4 million, or 5.4%. Consumer loan balances at June 30, 2011 amounted to $109.5 million, compared to $109.1 million at March 31, 2011 and $110.8 million at June 30, 2010, a linked quarter increase of $0.4 million, or 0.4%.
Deposits
(In 000's) Jun '11 Mar '11 Dec '10 Sep '10 Jun '10
---------- ---------- ---------- ---------- ----------
SmartGrowth Deposits
Checking $ 209,080 $ 193,244 $ 186,240 $ 173,206 $ 169,396
Money Market 55,280 56,618 55,557 60,246 62,643
Savings 191,586 188,819 169,326 166,734 160,567
---------- ---------- ---------- ---------- ----------
Total SmartGrowth
Deposits $ 455,946 $ 438,681 $ 411,123 $ 400,186 $ 392,606
Time Deposits 169,377 172,211 172,316 179,169 185,496
---------- ---------- ---------- ---------- ----------
Total Deposits $ 625,323 $ 610,892 $ 583,439 $ 579,355 $ 578,102
"We are very pleased that we are growing SmartGrowth Deposits, and increasing overall deposits and reducing our cost of funds," said Little.
Three Month Growth. Total deposits increased to $625.3 million at June 30, 2011, from $610.9 million at March 31, 2011, a linked quarter increase of $14.4 million or 2.4%. The Company's SmartGrowth Deposit Accounts, consisting of checking accounts, money market accounts, and savings accounts, had solid growth. Total SmartGrowth Deposits increased $17.3 million to $455.9 million or 3.9% at June 30, 2011, from $438.7 million at March 31, 2011.
Checking account balances at June 30, 2011 increased $15.8 million, or 8.2%, to $209.1 million from $193.2 million at March 31, 2011.
Twelve Month Growth. Total deposits increased to $625.3 million at June 30, 2011, from $578.1 million at June 30, 2010, a twelve month increase of $47.1 million, or 8.2%. Total SmartGrowth Deposits increased $63.3 million, or 16.1% from $392.6 million at June 30, 2010.
SmartGrowth Deposits amounted to 72.9% of total deposits as of June 30, 2011 compared to 67.9% at June 30, 2010.
Checking account balances at June 30, 2011 increased 23.4% or $39.7 million in the past 12 months. Checking account balances now account for 33.4% of total deposits compared to 29.3% at June 30, 2010.
Teche Holding Company is the parent company of Teche Federal Bank, which operates nineteen offices in South Louisiana and serves over 60,000 customers. Teche Federal Bank is the fourth largest publicly owned bank based in Louisiana with over $789 million in assets. Deposits at Teche Federal Bank are insured up to the legal maximum amount by the Federal Deposit Insurance Corporation (FDIC). Teche Holding Company's common stock is traded under the symbol "TSH" on the NYSE AMEX.
Statements contained in this news release, which are not historical facts, are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, factors discussed in documents filed by Teche Holding Company with the Securities and Exchange Commission from time to time. The Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company.
TECHE HOLDING COMPANY
(Dollars in thousands, except per share data)
New Iberia, LA
Selected Financial Data
(UNAUDITED)
THREE MONTHS ENDED
-----------------------------------------------------
Condensed Statements Jun. Mar. Dec. Sep. Jun.
of Income 2011 2011 2010 2010 2010
--------- --------- --------- --------- ---------
Interest Income $ 9,758 $ 9,736 $ 10,003 $ 10,163 $ 10,299
Interest Expense 2,185 2,363 2,542 2,728 2,969
--------- --------- --------- --------- ---------
Net Interest Income 7,573 7,373 7,461 7,435 7,330
Provision for Loan
Losses 1,000 1,000 1,150 900 900
--------- --------- --------- --------- ---------
Net Interest Income
after
Provision for Loan
Losses 6,573 6,373 6,311 6,535 6,430
Non Interest Income 3,938 3,832 3,972 3,964 4,153
Non Interest Expense 7,777 7,918 7,583 7,732 7,877
--------- --------- --------- --------- ---------
Income Before Gain
on Securities
and Sale of
Loans 2,734 2,287 2,700 2,767 2,706
Gain(Loss) on
Securities (52) 8 -- (95) --
Gain(Loss) on Sale
of Loans 4 10 9 6 7
Income Taxes 896 792 885 831 892
--------- --------- --------- --------- ---------
Net Income $ 1,790 $ 1,513 $ 1,824 $ 1,847 $ 1,821
========= ========= ========= ========= =========
Selected Financial
Data
--------- --------- --------- --------- ---------
Dividends Declared
Per Share $ 0.36 $ 0.36 $ 0.355 $ 0.355 $ 0.355
Basic Earnings Per
Common Share $ 0.86 $ 0.73 $ 0.88 $ 0.89 $ 0.87
Diluted Earnings Per
Common Share $ 0.85 $ 0.72 $ 0.87 $ 0.88 $ 0.87
Annualized Return on
Avg. Assets 0.92% 0.80% 0.96% 0.97% 0.95%
Annualized Return on
Avg. Equity 8.96% 7.74% 9.36% 9.61% 9.60%
Annualized Return on
Avg.
Tangible Equity (1) 9.40% 8.13% 9.84% 10.12% 10.12%
Yield on Interest
Earning Assets 5.46% 5.61% 5.75% 5.84% 5.87%
Cost of Interest
Bearing Liabilities 1.43% 1.57% 1.69% 1.79% 1.93%
Spread 4.03% 4.04% 4.06% 4.05% 3.94%
Net Interest Margin 4.24% 4.25% 4.29% 4.27% 4.18%
Non-Interest
Income/Avg. Assets 2.02% 2.02% 2.09% 2.08% 2.16%
Non-Interest
Expense/Avg. Assets 3.99% 4.17% 3.99% 4.06% 4.11%
Quarterly Net
Charge-offs/Avg.
Loans 0.57% 0.09% 0.08% 0.08% 0.05%
Weighted avg. shares
Outstanding
Basic 2,073 2,072 2,068 2,074 2,083
Diluted 2,097 2,098 2,089 2,092 2,103
AVERAGE BALANCE
SHEET DATA
--------- --------- --------- --------- ---------
Total Assets $ 780,213 $ 759,993 $ 759,858 $ 761,191 $ 767,379
Earning assets $ 714,528 $ 693,747 $ 696,304 $ 696,494 $ 701,756
Loans $ 586,420 $ 589,879 $ 595,547 $ 597,024 $ 599,883
Interest-bearing
deposits $ 529,664 $ 514,771 $ 506,887 $ 509,572 $ 515,165
Total deposits $ 613,778 $ 590,664 $ 579,902 $ 576,373 $ 583,576
Total stockholders'
equity $ 79,942 $ 78,197 $ 77,923 $ 76,855 $ 75,859
(1) Eliminates the effect of goodwill and the core deposit intangible
assets and the related amortization expense on a tax effected basis.
The amount was calculated using the following information.
Average
Stockholders'
Equity $ 79,942 $ 78,197 $ 77,923 $ 76,855 $ 75,859
Less average
goodwill and other
intangible assets,
net of related
income taxes 3,671 3,667 3,670 3,673 3,689
Average Tangible
Equity $ 76,271 $ 74,530 $ 74,253 $ 73,182 $ 72,170
========= ========= ========= ========= =========
Net Income 1,790 1,513 1,824 1,847 1,821
Plus Amortization of
core deposit
intangibles, net of
related income
taxes 3 2 3 5 5
--------- --------- --------- --------- ---------
Net Income, as
adjusted $ 1,793 $ 1,515 $ 1,827 $ 1,852 $ 1,826
========= ========= ========= ========= =========
TECHE HOLDING COMPANY
(Dollars in thousands, except per share data)
New Iberia, LA
Selected Financial Data
(UNAUDITED)
FISCAL YEAR TO DATE (NINE MONTHS) ENDED
------------------------------------------
Jun. Jun.
Condensed Statements of Income 2011 2010 $Change %Change
--------- --------- --------- ---------
Interest Income $ 29,497 $ 31,174 $ (1,677) (5.4%)
Interest Expense 7,090 8,976 (1,886) (21.0%)
--------- --------- --------- ---------
Net Interest Income 22,407 22,198 209 0.9%
Provision for Loan Losses 3,150 2,996 154 5.1%
--------- --------- --------- ---------
Net Interest Income after
Provision for Loan Losses 19,257 19,202 55 0.3%
Non Interest Income 11,743 12,123 (380) (3.1%)
Non Interest Expense 23,277 23,498 (221) (0.9%)
--------- --------- --------- ---------
Income Before Gain on
Securities and Sale of Loans 7,723 7,827 (104) (1.3%)
Gain(Loss) on Securities (44) (45) 1 2.2%
Gain(Loss) on Sale of Loans 22 7 15 214.3%
Income Taxes 2,574 2,535 39 1.5%
--------- --------- --------- ---------
Net Income (loss) $ 5,127 $ 5,254 $ (127) (2.4%)
========= ========= ========= =========
Selected Financial Data
--------- --------- --------- ---------
Dividends Declared Per Share $ 1.075 $ 1.065 $ 0.01 0.9%
Basic Earnings Per Common Share $ 2.48 $ 2.51 $ (0.03) (1.2%)
Diluted Earnings Per Common
Share $ 2.45 $ 2.49 $ (0.04) (1.6%)
Annualized Return on Avg.
Assets 0.89% 0.92% (0.03%) (3.3%)
Annualized Return on Avg.
Equity 8.69% 9.37% (0.68%) (7.3%)
Annualized Return on Avg.
Tangible Equity (1) 9.13% 9.89% (0.76%) (7.7%)
Yield on Interest Earning
Assets 5.61% 5.96% (0.50%) (8.4%)
Cost of Interest Bearing
Liabilities 1.57% 1.94% (0.37%) (19.1%)
Spread 4.04% 4.02% 0.02% 0.5%
Net Interest Margin 4.26% 4.24% 0.02% 0.5%
Non-Interest Income/Avg. Assets 2.03% 2.11% (0.09%) (4.3%)
Non-Interest Expense/Avg.
Assets 4.05% 4.11% (0.06%) (1.5%)
Quarterly Net Charge-offs/Avg.
Loans 0.57% 0.05% 0.52% 1,000.4%
Weighted avg. shares
Outstanding
Basic 2,071 2,094 (23) (1.1%)
Diluted 2,094 2,112 (18) (0.9%)
AVERAGE BALANCE SHEET DATA
--------- --------- --------- ---------
Total Assets $ 766,684 $ 762,872 $ 3,812 0.5%
Earning assets $ 701,527 $ 697,509 $ 4,018 0.6%
Loans $ 590,637 $ 599,845 $ (9,208) (1.5%)
Interest-bearing deposits $ 517,079 $ 513,080 $ 3,999 0.8%
Total deposits $ 594,256 $ 578,860 $ 15,396 2.7%
Total stockholders' equity $ 78,683 $ 74,748 $ 3,935 5.3%
(1) Eliminates the effect of goodwill and the core deposit intangible
assets and the related amortization expense on a tax effected basis.
The amount was calculated using the following information.
Average Stockholders' Equity $ 78,683 $ 74,748 $ 3,935 5.3%
Less average goodwill and other
intangible assets,
net of related income taxes 3,667 3,697 (30) (0.8%)
--------- --------- --------- ---------
Average Tangible Equity $ 75,016 $ 71,051 $ 3,965 5.6%
========= ========= ========= =========
Net Income $ 5,127 $ 5,254 (127) (2.4%)
Plus Amortization of core
deposit intangibles, net of
related income taxes 9 15 (6) (40.0%)
--------- --------- --------- ---------
Net Income, as adjusted $ 5,136 $ 5,269 $ (133) (2.5%)
========= ========= ========= =========
TECHE HOLDING COMPANY
(Dollars in thousands, except per share data)
New Iberia, LA
Balance Sheet
(UNAUDITED)
Jun. Mar. Dec. Sep. Jun.
2011 2011 2010 2010 2010
--------- --------- --------- --------- ---------
SmartGrowth Loans
Consumer $ 109,476 $ 109,092 $ 111,139 $ 111,571 $ 110,855
Commercial 201,324 207,509 208,797 212,933 212,762
Home Equity 51,293 51,045 52,182 53,405 55,860
SmartMortgage
Loans 88,019 88,799 89,389 86,959 86,624
--------- --------- --------- --------- ---------
Total SmartGrowth
Loans 450,112 456,445 461,507 464,868 466,101
Mortgage Loans
(owner occupied
conforming) 133,264 131,708 132,224 131,023 131,590
--------- --------- --------- --------- ---------
583,376 588,153 593,731 595,891 597,691
Allowance for Loan
Losses -8,123 -10,452 -9,953 -9,256 -8,830
--------- --------- --------- --------- ---------
Loans Receivable,
Net 575,253 577,701 583,778 586,635 588,861
Cash and Securities 154,061 144,465 110,405 115,217 121,783
Goodwill and Other
Intangibles 3,673 3,678 3,682 3,687 3,692
Foreclosed Real
Estate 2,694 2,039 2,079 1,181 1,547
Other 53,323 54,269 53,757 54,804 49,601
--------- --------- --------- --------- ---------
TOTAL ASSETS $ 789,004 $ 782,152 $ 753,701 $ 761,524 $ 765,484
========= ========= ========= ========= =========
SmartGrowth Deposits
Checking $ 209,080 $ 193,244 $ 186,240 $ 173,206 $ 169,396
Money Market 55,280 56,618 55,557 60,246 62,643
Savings 191,586 188,819 169,326 166,734 160,567
--------- --------- --------- --------- ---------
Total SmartGrowth
Deposits 455,946 438,681 411,123 400,186 392,606
Time Deposits 169,377 172,211 172,316 179,169 185,496
--------- --------- --------- --------- ---------
Total Deposits 625,323 610,892 583,439 579,355 578,102
FHLB Advances 79,533 83,585 87,756 100,017 106,445
Other Liabilities 5,567 10,097 6,009 6,639 6,388
Stockholders' Equity 78,581 77,578 76,497 75,513 74,549
--------- --------- --------- --------- ---------
TOTAL LIABILITIES
AND
STOCKHOLDERS' EQUITY $ 789,004 $ 782,152 $ 753,701 $ 761,524 $ 765,484
========= ========= ========= ========= =========
Ratio of Equity to
Assets 9.96% 9.92% 10.15% 9.92% 9.74%
Tangible Equity
Ratio (1) 9.54% 9.49% 9.71% 9.48% 9.30%
Total Risk-Based
Capital Ratio 14.49% 13.94% 13.79% 13.52% 13.30%
Book Value per
Common Share $ 37.87 $ 37.23 $ 36.81 $ 36.19 $ 35.45
Tangible Book Value
Per Common Share
(1) $ 36.11 $ 35.47 $ 35.04 $ 34.43 $ 33.70
Shares Outstanding
(in thousands) 2,075 2,084 2,078 2,082 2,091
Non-performing
Assets/Total Assets 1.82% 2.22% 2.27% 2.06% 2.15%
ALLL/Loans 1.39% 1.78% 1.68% 1.55% 1.48%
ALLL/NPLs 69.94% 68.32% 66.36% 63.92% 59.92%
(1) Eliminates the effect of goodwill and the core deposit intangible
assets and the related amortization expense on a Tax effected basis.
The amount was calculated using the following information.
Stockholders' Equity $ 78,581 $ 77,578 $ 76,497 $ 75,513 $ 74,549
Less goodwill and
other Intangible
assets, net of
related income
taxes -3,661 -3,664 -3,670 -3,673 -3,677
--------- --------- --------- --------- ---------
Tangible
Stockholders'
Equity $ 74,920 $ 73,914 $ 72,827 $ 71,840 $ 70,872
========= ========= ========= ========= =========
Total Assets $ 789,004 $ 782,152 $ 753,701 $ 761,524 $ 765,484
Less goodwill and
other Intangible
assets, net of
related income
taxes -3,661 -3,664 -3,670 -3,673 -3,677
--------- --------- --------- --------- ---------
Total Tangible
Assets $ 785,343 $ 778,488 $ 750,031 $ 757,851 $ 761,807
========= ========= ========= ========= =========
Quarter-End
Loan Data 90 Days + 90 Days +
June 30, 2011 Total Charge- Charge- Non Non
Loans Offs Offs Accrual Accrual
Dollars Dollars Percentage Dollars Percentage
----------- ----------- ---------- ------------ --------
Real Estate Loans
Construction $ 17,158 $ 51 0.30% $ 1,052 6.13%
Permanent,
Secured by:
1-4 Dwelling
Units: 19,942 -- 0.00% 69 0.35%
Revolving,
Open-End
Loans
(HELOC)
All Other
Secured
by First
Liens 307,948 521 0.17% 3,367 1.09%
Secured
by
Junior
Liens 9,952 -- 0.00% 35 0.35%
Multifamily
(5+ Dwelling
Units) 21,309 898 4.21% 873 4.10%
Nonresidential
Property
(Except Land) 86,424 333 0.39% 368 0.43%
Land 36,738 1,367 3.72% 5,413 14.73%
----------- ----------- ---------- ------------ --------
Consumer 20,472 -- 0.00% 69 0.34%
----------- ----------- ---------- ------------ --------
Commer-
cial 16,266 1,367 8.40% 5,344 32.85%
----------- ----------- ---------- ------------ --------
Subtotal - Real
Estate Loans $ 499,471 $ 3,170 0.63% $ 11,177 2.24%
----------- ----------- ---------- ------------ --------
Non-Real Estate
Loans:
Commercial
Loans $ 25,433 $ 5 0.02% -- 0.00%
Consumer
Loans:
Loans on
Deposits 3,889 -- 0.00% 3 0.08%
Auto
Loans 2,266 -- 0.00% 17 0.75%
Mobile
Home
Loans 38,585 97 0.25% 372 0.96%
Other 13,732 57 0.42% 94 0.68%
----------- ----------- ---------- ------------
Subtotal - Non
Real Estate
Loans $ 83,905 $ 159 0.19% 486 0.58%
----------- ----------- ---------- ------------ --------
Gross Loans $ 583,376 $ 3,329 0.57% $ 11,663 2.00%
=========== =========== ============ --------
Non-accruals $ 10,863
90 + Days Past
Due 800
OREO &
Foreclosed 2,774
-----------
Nonperforming
Assets (Net) $ 14,437
===========
Performing
TDRs 1,711
Quarter-End Loan
Data 90 Days + 90 Days +
March 31, 2011 Total Charge- Charge- Non Non
Loans Offs Offs Accrual Accrual
Dollars Dollars Percentage Dollars Percentage
--------- -------- ---------- --------- -----------
Real Estate Loans
Construction $ 16,462 -- 0.00% $ 1,021 6.20%
Permanent, Secured
by:
1-4 Dwelling
Units:
Revolving,
Open-End
Loans (HELOC) 18,691 (15) -0.08% 27 0.14%
All Other
Secured by
First
Liens 307,532 112 0.04% 3,038 0.99%
Secured
by Junior
Liens 10,244 23 0.22% 30 0.29%
Multifamily (5+
Dwelling Units) 22,358 -- 0.00% 897 4.01%
Nonresidential
Property (Except
Land) 90,532 228 0.25% 884 0.98%
Land 38,923 -- 0.00% 5,025 12.91%
--------- -------- ---------- --------- -----------
Consumer 20,059 -- 0.00% 59 0.29%
--------- -------- ---------- --------- -----------
Commercial 18,864 -- 0.00% 4,966 26.33%
--------- -------- ---------- --------- -----------
Subtotal - Real
Estate Loans $ 504,742 $ 348 0.07% $ 10,922 2.16%
--------- -------- ---------- --------- -----------
Non-Real Estate
Loans:
Commercial Loans $ 24,813 $ 128 0.52% $ 835 3.37%
Consumer Loans:
Loans on
Deposits 3,921 -- 0.00% -- 0.00%
Auto Loans 2,428 -- 0.00% 7 0.29%
Mobile Home
Loans 38,925 25 0.06% 471 1.21%
Other 13,324 -- 0.00% 167 1.25%
--------- -------- ---------- ---------
Subtotal - Non Real
Estate Loans $ 83,411 $ 153 0.18% $ 1,480 1.77%
--------- -------- ---------- --------- -----------
Gross Loans $ 588,104 $ 501 0.09% $ 12,402 2.11%
========= ======== =========
Non-accruals 11,305
90 + Days Past Due 1,097
OREO & Foreclosed 2,039
---------
Nonperforming
Assets (Net) $ 14,441
=========
Quarter-End Loan
Data 90 Days + 90 Days +
December 31, 2010 Total Charge- Charge- Non Non
Loans Offs Offs Accrual Accrual
Dollars Dollars Percentage Dollars Percentage
---------- --------- ---------- ---------- ----------
Real Estate Loans
Construction $ 18,140 -- 0.00% $ 1,015 5.59%
Permanent,
Secured by:
1-4 Dwelling
Units:
Revolving,
Open-End
Loans
(HELOC) 18,585 45 0.24% -- 0.00%
All Other
Secured by
First
Liens 308,088 325 0.11% 3,678 1.19%
Secured by
Junior
Liens 10,840 (3) -0.03% 102 0.94%
Multifamily
(5+
Dwelling
Units) 21,752 -- 0.00% 791 3.64%
Nonresident-
ial Proper-
ty (Except
Land) 91,411 -- 0.00% - 0.00%
Land 39,597 (1) 0.00% 5,478 13.83%
---------- --------- ---------- ---------- ----------
Consumer 20,076 (1) 0.00% 98 0.49%
---------- --------- ---------- ---------- ----------
Commercial 19,521 -- 0.00% 5,380 27.56%
---------- --------- ---------- ---------- ----------
Subtotal - Real
Estate Loans $ 508,413 366 0.07% $ 11,064 2.18%
---------- --------- ---------- ---------- ----------
Non-Real Estate
Loans:
Commercial
Loans $ 24,948 5 0.02% $ 898 3.60%
Consumer
Loans:
Loans on
Deposits 4,445 (2) -0.04% 2 0.04%
Auto Loans 2,684 1 0.04% 7 0.26%
Mobile
Home
Loans 39,628 72 0.18% 497 1.25%
Other 13,613 11 0.08% 155 1.14%
---------- --------- ---------- ----------
Subtotal - Non
Real Estate
Loans $ 85,318 87 0.10% $ 1,559 1.83%
---------- --------- ---------- ---------- ----------
Gross Loans $ 593,731 $ 453 0.08% $ 12,623 2.13%
========== ========= ==========
Non-accruals 11,324
90 + Days Past
Due 1,299
OREO &
Foreclosed 2,129
----------
Nonperforming
Assets (Net) $ 14,752
==========
Quarter-End Loan Data 90 Days + 90 Days +
September 30, 2010 Total Charge- Charge- Non Non
Loans Offs Offs Accrual Accrual
Dollars Dollars Percentage Dollars Percentage
--------- -------- ---------- --------- ----------
Real Estate Loans
Construction $ 21,310 $ 102 0.48% $ 1,066 5.00%
Permanent, Secured
by:
1-4 Dwelling
Units:
Revolving,
Open-End Loans
(HELOC) 18,530 51 0.28% -- 0.00%
All Other
Secured by
First Liens 303,587 -- 0.00% 4,829 1.59%
Secured by
Junior Liens 11,048 (4) -0.04% 108 0.98%
Multifamily (5+
Dwelling Units) 24,357 -- 0.00% 1,522 6.25%
Nonresidential
Property (Except
Land) 85,718 257 0.30% 118 0.14%
Land 39,555 23 0.06% 6,100 15.42%
--------- --------- ---------- --------- ----------
Consumer 20,044 -- 0.00% 58 0.29%
--------- -------- ---------- --------- ----------
Commercial 19,511 23 0.12% 6,042 30.97%
--------- -------- ---------- --------- ----------
Subtotal - Real
Estate Loans $ 504,105 $ 429 0.09% $ 13,743 2.73%
--------- -------- ---------- --------- ----------
Non-Real Estate
Loans:
Commercial Loans $ 30,929 -- 0.00% $ 154 0.50%
Consumer Loans:
Loans on
Deposits 4,672 1 0.02% 27 0.58%
Auto Loans 2,716 3 0.11% 4 0.15%
Mobile Home
Loans 40,094 20 0.05% 458 1.14%
Other 13,375 21 0.16% 95 0.71%
--------- -------- ---------- ---------
Subtotal - Non Real
Estate Loans $ 91,786 45 0.05% $ 738 0.80%
--------- -------- ---------- --------- ----------
Gross Loans $ 595,891 $ 474 0.08% $ 14,481 2.43%
========= ======== =========
Non-accruals 13,676
90 + Days Past Due 805
OREO & Foreclosed 1,201
---------
Nonperforming
Assets (Net) $ 15,682
=========
Loans: Linked
Quarter Comparison
Average Loan
Balances &
Yields 06/30/2011 06/30/2011 03/31/2011 03/31/2011 Change Change
Balance Yield Balance Yield Balance Yield
---------- ---------- ---------- ---------- -------- ------
Real Estate
Loans
1-4
Family $ 352,181 5.70% $ 352,801 5.78% $ (620) -0.08%
Commercial 130,800 5.58% 133,005 5.48% (2,205) 0.10%
---------- ---------- --------
Total Real
Estate
Loans $ 482,981 5.67% $ 485,806 5.70% $ (2,825) -0.03%
Non-Real
Estate
Loans
Commer-
cial $ 24,813 5.97% $ 24,876 5.78% $ (63) 0.19%
Consumer 78,626 9.51% 79,197 9.23% (571) 0.28%
---------- ---------- --------
Total
Non-Real
Estate
Loans 103,439 8.66% 104,073 8.40% (634) 0.26%
Total All
Loans $ 586,420 6.20% $ 589,879 6.17% $ (3,459) 0.03%
========== ========== ========
Loans: Prior
Year Comparison
Average Loan
Balances &
Yields 06/30/2011 06/30/2011 06/30/2010 06/30/2010 Change Change
Balance Yield Balance Yield Balance Yield
---------- ---------- ---------- ---------- -------- ------
Real Estate
Loans
1-4
Family $ 352,181 5.70% $ 349,849 5.97% $ 2,332 -0.27%
Commercial 130,800 5.58% 139,442 5.74% (8,642) -0.16%
---------- ---------- --------
$ 482,981 5.67% $ 489,291 5.90% $ (6,310) -0.23%
Non-Real
Estate
Loans
Commer-
cial $ 24,813 5.97% 29,964 6.35% $ (5,151) -0.38%
Consumer 78,626 9.51% 80,629 9.35% (2,003) 0.16%
---------- ---------- --------
103,439 8.66% $ 110,593 8.54% $ (7,154) 0.12%
Total All
Loans $ 586,420 6.20% $ 599,884 6.39% $ (13,464) -0.19%
========== ========== =========
Interest-bearing Liabilities: Linked Quarter Comparison
Average
balances 06/30/2011 03/31/2011 Change
06/30/2011 Avg. 03/31/2011 Avg. Change Avg. %Balance
$Balance Yield $Balance Yield $Balance Yield Change
---------- ------ ---------- ------ --------- ----- ------
NOW
Accounts $ 112,611 0.18% $ 110,357 0.17% $ 2,254 0.01% 2.0%
Non-
interest
bearing
Deposits 84,114 0.00% 75,893 0.00% 8,221 0.00% 10.8%
---------- ------ ---------- ------ --------- ----- ------
Checking
Total $ 196,725 0.10% $ 186,250 0.10% $ 10,475 0.00% 5.6%
Savings
Accounts $ 190,379 0.38% $ 176,515 0.55% $ 13,864 -0.17% 7.9%
Money
Market
Accounts 55,619 0.27% 56,670 0.35% (1,051) -0.08% -1.9%
---------- ------ ---------- ------ --------- ----- ------
Total Smart
Growth
Deposits $ 442,723 0.24% $ 419,435 0.32% $ 23,288 -0.08% 5.6%
Time
Deposits $ 171,055 2.33% $ 171,229 2.47% (174) -0.14% -0.1%
Total
Deposits $ 613,778 0.82% $ 590,664 0.94% $ 23,114 -0.12% 3.9%
FHLB
Advances $ 79,879 4.61% $ 85,550 4.53% $ (5,671) 0.08% -6.6%
---------
Total
Interest-
bearing
liabil-
ities $ 609,543 1.43% $ 600,321 1.57% $ 9,222 -0.14% 1.5%
---------- ---------- =========
Non-interest
bearing
Deposits $ 84,114 0.00% $ 75,893 0.00% $ 8,221 0.00% 10.8%
Interest-bearing Liabilities: Prior Year Comparison
Average
balances 06/30/2011 06/30/2010 Change
06/30/2011 Avg. 06/30/2010 Avg. Change Avg. %Balance
$Balance Yield $Balance Yield $Balance Yield Change
---------- ------ ---------- ------ --------- ----- ------
NOW
Accounts $ 112,611 0.18% $ 106,087 0.46% $ 6,524 -0.28% 6.1%
Non-interest
bearing
Deposits 84,114 0.00% 68,411 0.00% 15,703 0.00% 23.0%
---------- ------ ---------- ------ --------- ----- ------
Checking
Total $ 196,725 0.10% $ 174,498 0.28% $ 22,227 -0.18% 12.7%
Savings
Accounts $ 190,379 0.38% $ 154,065 1.00% $ 36,314 -0.62% 23.6%
Money
Market
Accounts 55,619 0.27% 65,678 0.39% (10,059) -0.12% -15.3%
---------- ------ ---------- ------ --------- ----- ------
Total
Smart
Growth
Deposits $ 442,723 0.24% $ 394,241 0.58% $ 48,482 -0.34% 12.3%
Time
Deposits $ 171,055 2.33% $ 189,335 2.65% $ (18,280) -0.32% -9.7%
Total
Deposits $ 613,778 0.82% $ 583,576 1.25% $ 30,202 -0.43% 5.2%
FHLB
Advances $ 79,879 4.61% $ 101,543 4.52% $ (21,664) 0.09% -21.3%
---------
Total
Interest-
bearing
liabil-
ities $ 609,543 1.43% $ 616,708 1.92% $ (7,165) -0.49% -1.2%
---------- ========== =========
Non-interest
bearing
Deposits $ 84,114 0.00% $ 68,411 0.00% $ 15,703 0.00% 23.0%
Quarter-End
Loan Quality
Details
June 30, 2011
Total % Special % %
(In Thousands) Loans Classified Total Mention Total Pass Total
--------- ---------- ----- ------- ----- --------- -----
Commercial
Loans
Commercial
Land $ 16,266 $ 5,344 32.9% $ 170 1.0% $ 10,752 66.1%
Commercial
Construction 7,819 1,052 13.4% 382 4.9% 6,385 81.7%
Commercial
Real Estate 107,733 2,596 2.4% 3,234 3.0% 101,903 94.6%
Commercial
Non Real
Estate 25,433 83 0.3% 530 2.1% 24,820 97.6%
--------- ---------- ----- ------- ----- --------- -----
Total
Commercial $ 157,251 $ 9,075 5.8% $ 4,316 2.7% $ 143,860 91.5%
Residential
Loans
Residential
Construction $ 9,339 - 0.0% - 0.0% $ 9,339 100.0%
Residential $ 337,842 $ 3,782 1.1% 184 0.1% $ 333,876 98.8%
--------- ---------- ----- ------- ----- --------- -----
Total
Resident-
ial $ 347,181 $ 3,782 1.1% $ 184 0.0% $ 343,215 98.9%
Consumer Loans
Mobile Homes $ 38,585 $ 371 0.9% $ 66 0.2% $ 38,148 98.9%
Consumer
Other 40,359 170 0.4% - 0.0% 40,189 99.6%
--------- ---------- ----- ------- ----- --------- -----
Total
Consumer $ 78,944 $ 541 0.7% $ 66 0.1% $ 78,337 99.2%
Total All Loans $ 583,376 $ 13,398 2.3% $ 4,566 0.8% $ 565,412 96.9%
========= ========== ===== ======= ===== ========= =====
Quarter-End
Loan Quality
Details
March 31, 2011
Total % Special % %
(In Thousands) Loans Classified Total Mention Total Pass Total
--------- ---------- ----- ------- ----- --------- -----
Commercial
Loans
Commercial
Land $ 18,864 $ 6,348 33.7% $ 727 3.8% $ 11,789 62.5%
Commercial
Construction 8,402 1,072 12.8% 375 4.4% 6,955 82.8%
Commercial
Real Estate 112,890 4,386 3.9% 3,134 2.8% 105,370 93.3%
Commercial
Non Real
Estate 24,813 104 0.4% 2,038 8.2% 22,671 91.4%
--------- ---------- ----- ------- ----- --------- -----
Total
Commercial $ 164,969 $ 11,910 7.2% $ 6,274 3.8% $ 146,785 89.0%
Residential
Loans
Residential
Construction 8,060 - 0.0% - 0.0% 8,060 100.0%
Residential 336,467 3,994 1.2% 285 0.1% 332,188 98.7%
--------- ---------- ----- ------- ----- --------- -----
Total
Resident-
ial $ 344,527 $ 3,994 1.2% $ 285 0.1% $ 340,248 98.8%
Consumer Loans
Mobile Homes 38,925 471 1.2% - 0.0% 38,454 98.8%
Consumer
Other 39,732 232 0.6% - 0.0% 39,500 99.4%
--------- ---------- ----- ------- ----- --------- -----
Total
Consumer 78,657 703 0.9% - 0.0% 77,954 99.1%
Total All Loans $ 588,153 $ 16,607 2.8% $ 6,559 1.1% $ 564,987 96.1%
========= ========== ===== ======= ===== ========= =====
Contact:
Patrick Little
President & CEO
Teche Holding Company
(337) 560-7151
