EX-99 2 ex-99.txt PRESS RELEASE TECHE HOLDING COMPANY Franklin, Louisiana FOR RELEASE JANUARY 25, 2007, 8:30 AM, CDT For More Information Contact: Patrick Little President and CEO (337) 560-7151 TECHE HOLDING COMPANY ANNOUNCES 11.4% EARNINGS INCREASE FRANKLIN, LA (AMEX: TSH)--Patrick Little, President and CEO of Teche Holding Company, holding company for Teche Federal Bank, today reported on earnings for the Company for the quarter ended December 31, 2006, the first quarter of fiscal 2007. Earnings for the quarter ended December 31, 2006 amounted to $1.8 million or $0.78 per diluted share, compared to $1.6 million or $0.70 per diluted share for the same quarter in fiscal 2006, an increase of $0.08 per share, or 11.4% "Teche earnings this quarter showed solid results," said Little, "with increases in both net interest income and non-interest income." The Company reported the following key achievements: o Quarterly Net Income increased 11.4%, or $0.08 per diluted share, an increase of $178,000, as compared to the same period last year. o Quarterly Net Interest Income increased 5.9%, an increase of $317,000 to $5.7 million, from $5.4 million last year. o Quarterly Non-Interest Income increased 15.0%, an increase of $455,000 to $3.5 million, from $3.0 million last year. o Total Deposits, in the past three months, increased 1.6% or $8.3 million to $545.9 million from $537.5 million at September 30, 2006. SmartGrowth Deposits accounted for $13.1 million, or 157% of the increase. o Net Loans, in the past three months, increased 1.8 % or $9.3 million to $529.8 million from $520.5 million at September 30, 2006. SmartGrowth Loans accounted for $9.3 million or 100% of the increase. o Commercial Loans, in the past three months, increased 3.5%, or $4.8 million to $141.9 million from $137.0 million at September 30, 2006. 1 o Quarterly Dividends increased to $0.30 per share compared to $0.26 per share for the quarter ended December 31, 2005, an increase of 15.4%. Dividends have increased for fifteen consecutive quarters. Loan and Deposit Growth Net Loans Receivable increased to $529.8 million at December 31, 2006, from $520.5 million at September 30, 2006, a three-month increase of $9.3 million, or 1.8%. SmartGrowth Loans grew $9.3 million, or 2.8% to $345.8 million. Total Deposits increased to $545.9 million at December 31, 2006, from $537.5 million at September 30, 2006 a three-month increase of $8.3 million or 1.6%. SmartGrowth Deposits grew $13.1 million, or 5.4% to $253.4 million. SmartGrowth Loans and Deposits SmartGrowth Loans, consisting of commercial loans, home equity loans, alternative mortgage loans and consumer loans, were $345.8 million, or 64.7% of total loans at December 31, 2006, compared to $336.5 million, or 64.0% at September 30, 2006, a three month increase of $9.3 million, or 2.8%. "Overall, for the past quarter, SmartGrowth loan originations have been excellent," said Little. The Bank continued to post growth in both commercial and consumer Loans. Commercial loan balances at December 31, 2006 amounted to $141.9 million, compared to $137.0 million at September 30, 2006, an increase of $4.8 million or 3.5%. Consumer loan balances at December 31, 2006 amounted to $67.5 million, compared to $61.9 million at September 30, 2006, an increase of $5.5 million, or 8.9%. The Company's SmartGrowth Deposit Accounts, consisting of checking accounts, money market accounts, and savings accounts, had solid growth. Total SmartGrowth Deposits grew $13.1 million to $253.4 million or 5.4% at December 31, 2006, from $240.3 million at September 30, 2006. SmartGrowth Deposits amount to 46.4% of total deposits as of December 31, 2006. Checking account balances at December 31, 2006 increased $4.2 million, or 3.5%, to $122.1 million from $118.0 million at September 30, 2006. Checking account balances now account for 22.4% of total deposits. Net Interest Income Net Interest Income for the three months ended December 31, 2006 amounted to $5.7 million compared to $5.4 million for the quarter ended December 31, 2005, an increase of $317,000, or 5.9%. The increase in Net Interest Income was primarily due to increases in both deposit and loan balances and decreases in both FHLB advance balances and balances in cash and securities. 2 Asset Quality Non-performing Assets to Total Assets decreased slightly to 0.70% at December 31, 2006, compared to 0.73% at September 30, 2006. The ratio of non-performing assets to total assets remains somewhat above historically lower levels and consists of primarily residential credits and, to a lesser extent, includes some consumer and commercial loans. Increase in Dividends Since June 12, 2003, the Company has increased dividends for fifteen consecutive quarters and on December 29, 2006 paid a $0.30 per share quarterly dividend. Based on the closing price of the Company's common stock on December 29, 2006 of $51.50, the annualized dividend yield was 2.33%. Net Interest Margin Net interest margin amounted to 3.51% for the three-month period ended December 31, 2006; compared to 3.39%, for the three-month period ended December 31, 2005. "We are pleased that our net interest margin has remained steady, despite the challenging interest rate environment," said Little. "This is the result of our SmartGrowth strategy, and has enabled us to grow Net Interest Income 5.9% over the last three months." Non-Interest Income Non-interest income for quarter ended December 31, 2006 amounted to $3.5 million, compared to $3.0 million for quarter ended December 31, 2005, an increase of $455,000, or 15.0%. Non-interest income for quarter ended December 31, 2005 included a $187,000 pre-tax gain on the sale of unused land. Non-interest income for the quarter ended December 31, 2006 included a $19,000 pre-tax gain on the sale of securities. Non-interest income in 2005 was impacted by large-scale waivers of fees associated with recovery from Hurricanes Katrina and Rita. Non-interest income amounted to 38.1% of operating income for the quarter ended December 31, 2006, compared to 36.2% for the three months ended December 31, 2005. Deposit service charges amounted to 91.7% of total non-interest income for the quarter ended December 31, 2006, compared to 84.1% for the quarter ended December 31, 2005. Non-Interest Expense Non-interest Expense amounted to $6.4 million compared to $6.0 million for the three months ended December 31, 2005, primarily due to increased expenses associated with additional commercial loan staff and increased compensation expenses associated with stock benefit and retirement plans. 3 Teche Federal Bank is the fourth largest publicly traded bank based in Louisiana. Teche Holding Company is the parent company of Teche Federal Bank, which operates nineteen offices in South Louisiana and serves over 50,000 customers. Teche Holding Company's common stock is traded under the symbol "TSH" on the American Stock Exchange. Statements contained in this news release that 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. ### 4 TECHE HOLDING COMPANY (Dollars in thousands, except per share data) Franklin, LA Statements of Income (UNAUDITED) Three Months Ended December 31 2006 2005 -------- -------- Interest Income $ 10,388 $ 9,366 Interest Expense 4,709 4,004 -------- -------- Net Interest Income 5,679 5,362 Provision for Loan Losses 85 45 -------- -------- Net Interest Income after Provision for Loan Losses 5,594 5,317 Non Interest Income 3,498 3,043 Non Interest Expense 6,386 5,960 -------- -------- Income Before Gain on Sales of Securities and Income Taxes 2,706 2,400 Gains on Sales of Securities 19 - Income Taxes 927 780 -------- -------- Net Income $ 1,798 $ 1,620 ======== ======== Selected Financial Data ----------------------- Dividends Declared Per Share $ 0.30 $ 0.26 Basic Earnings Per Common Share $ 0.81 $ 0.71 Diluted Earnings Per Common Share $ 0.78 $ 0.70 Annualized Return on Avg. Assets 1.05% 0.95% Annualized Return on Avg. Equity 11.38% 10.57% Annualized Return on Avg Tangible Equity (1) 12.21% 11.41% Net Interest Margin 3.51% 3.39% Non Interest Income/Avg. Assets 2.03% 1.78% Non Interest Expense/Avg. Assets 3.71% 3.49% Weighted avg. shares Outstanding Basic 2,219 2,277 Diluted 2,293 2,317 AVERAGE BALANCE SHEET DATA Total Assets $687,688 $682,177 Earning assets $635,086 $633,029 Loans $530,173 $488,229 Interest-bearing deposits $491,498 $479,974 Total deposits $540,234 $522,502 Total stockholders' equity $ 63,180 $ 61,310 (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: Annualized Return on Avg. Tangible Equity ----------------------------------------- Average Stockholders' Equity $ 63,180 $ 61,310 Less average goodwill and other intangible assets, net of related income taxes 3,872 3,867 -------- -------- Average Tangible Equity $ 59,308 $ 57,443 ======== ======== Net Income $ 1,798 $ 1,620 Plus Amortization of core deposit Intangibles, net of related income taxes 12 19 -------- -------- Net Income, as adjusted $ 1,810 $ 1,639 ======== ======== 5 TECHE HOLDING COMPANY (Dollars in thousands, except per share data) Franklin, LA Balance Sheets (UNAUDITED) at
December 31, 2006 September 30, 2006 SmartGrowth Loans* $ 345,784 $ 336,491 Mortgage Loans** 188,849 188,902 --------- --------- 534,633 525,393 Allowance for Loan Losses (4,868) (4,890) --------- --------- Loans Receivable, Net 529,765 520,503 Cash and Securities 122,056 123,973 Goodwill and Other Intangibles 3,862 3,881 Foreclosed Real Estate 1,143 1,066 Other 38,224 36,327 --------- --------- TOTAL ASSETS $ 695,050 $ 685,750 ========= ========= SmartGrowth Deposits*** $ 253,377 $ 240,308 Time Deposits 292,511 297,241 --------- --------- Total Deposits 545,888 537,549 FHLB Advances 79,126 77,386 Other Liabilities 5,587 7,206 Stockholders' Equity 64,449 63,609 --------- --------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 695,050 $ 685,750 ========= ========= Ratio of Equity to Assets 9.27% 9.28% Tangible Equity to Tangible Assets (2) 8.77% 8.77% Book Value per Common Share $ 29.12 $ 28.68 Tangible Book Value Per Common Share (2) $ 27.41 $ 26.95 Non-performing Assets/Total Assets 0.70% 0.73% Shares Outstanding (in thousands) 2,213 2,218 * Consumer, Commercial, Home Equity, and Alternative Mortgage Loans ** Owner Occupied Conforming Mortgage Loans *** Checking, Money Market and Savings Deposits (2) Eliminates the effect of goodwill and the core deposit intangible assets and the related accumulated amortization on a tax-effected basis. The amount was calculated using the following information: Stockholders' Equity $ 64,449 $ 63,609 Less goodwill and other Intangible assets, net of related income taxes (3,801) (3,835) --------- --------- Tangible Stockholders' Equity $ 60,648 $ 59,774 ========= ========= Total Assets $ 695,050 $ 685,750 Less goodwill and other Intangible assets, net of related income taxes (3,801) (3,835) --------- --------- Total Tangible Assets $ 691,249 $ 681,915 ========= =========
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