Seeking Alpha
Seeking Alpha Portfolio App for iPad
Finance
(1)

NEWS PROVIDED BY:
Marketwire

NEW IBERIA, LA -- (Marketwire) -- 04/23/12 -- (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 March 31, 2012, the second quarter of fiscal year 2012.

Earnings for the quarter ended March 31, 2012 amounted to $1.7 million or $0.82 per diluted share, compared to $1.5 million or $0.72 per diluted share for the same quarter in fiscal 2011, an increase of $0.10 per diluted share, or 13.9%.

"Earnings for the six month period ended March 31, 2012 amounted to $3.5 million, or $1.67 per diluted share, compared to $3.3 million or $1.59 per diluted share, for the same period in fiscal 2011, an increase of $0.08 per diluted share, or 5.0%. "We have posted record earnings for the past three fiscal years," said Little. "At the halfway point this year, we are ahead of last year."

As a result of our outstanding results over the past three years, we were recently named to Keefe, Bruyette and Wood's (KBW) prestigious 2012 "Bank Honor Roll" for a second consecutive year and Bank Director Magazine's "Nifty 50" rankings.

The Company reported the following points of interest:

  • Average earning assets increased 2.1% or $15.9 million to $754.0 million as compared to the linked quarter and 8.7% or $60.2 million as compared to the same quarter a year ago.
  • Total loans increased 1.4% or $8.8 million to $641.5 million at March 31, 2012 as compared to the linked quarter and 9.1% or $53.3 million as compared to a year ago.
  • Net charge offs for the quarter amounted to 0.08% of average loans.
  • SmartGrowth Deposits increased 7.7% over the linked quarter and 7.8% compared to a year ago. SmartGrowth Deposits amounted to 75.0% of total deposits, compared to 73.3% at December 31, 2011 and 71.8% a year ago.
  • Checking Account Balances increased 12.2% compared to the linked quarter and 15.5% compared to March 31, 2011.
  • The average rate paid on all deposits was 0.72% for the quarter compared to 0.76% for the linked quarter and 0.94% a year ago.
  • Quarterly operating revenue remained stable at $11.6 million, as compared to the previous four quarters.
  • Tangible book value per share increased to $37.91, an increase of 1.2% or $0.44 for the linked quarter and 6.9% or $2.44 year-over-year.

Capital
Over the past twelve months, stockholders' equity increased 5.9% to a record $82.2 million while assets increased 6.1% to a record $829.7 million. The tangible equity ratio at March 31, 2012 has increased to 9.50% compared to 9.49% a year ago. Tangible book value per common share has increased to a record $37.91, an increase of 6.9% compared to a year ago. Risk based capital increased to 14.12% compared to 13.94% a year ago; and the equity to asset ratio decreased to 9.90% from 9.92% a year ago.

Over the past twelve month period, total assets increased 6.1% or $47.6 million to $829.7 million.

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


------------------------------- -------  -------  -------  -------  -------
QUARTERLY COMPARISON            Mar '12  Dec '11  Sep '11  Jun '11  Mar '11
------------------------------- -------  -------  -------  -------  -------
Stockholders' Equity (in
 millions)                      $  82.2  $  81.1  $  80.0  $  78.6  $  77.6
Ratio of Equity to Assets          9.90%    9.97%   10.08%    9.96%    9.92%
Tangible Equity Ratio              9.50%    9.56%    9.67%    9.54%    9.49%
Total Risk-Based Capital Ratio    14.12%   14.09%   14.30%   14.26%   13.94%
Book Value per Common Share     $ 39.68  $ 39.24  $ 38.79  $ 37.87  $ 37.23
Tangible Book Value Per Common
 Share                          $ 37.91  $ 37.47  $ 37.02  $ 36.11  $ 35.47
Total Assets (in millions)      $ 829.7  $ 813.5  $ 793.2  $ 789.0  $ 782.2

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            Mar' 12  Dec '11  Sep '11  Jun '11  Mar '11
------------------------------- -------  -------  -------  -------  -------
Net Charge-offs/Average Loans      0.08%    0.05%    0.09%    0.57%    0.09%
ALLL*/NPLs                        74.02%   71.25%   76.63%   69.94%   68.32%
ALLL*/NPAs                        71.40%   65.30%   67.67%   56.45%   60.29%
ALLL*/Loans                        1.32%    1.33%    1.37%    1.39%    1.78%
NPAs/Assets                        1.43%    1.53%    1.55%    1.82%    2.22%

*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)      Mar '12 Dec '11 Sep '11 Jun '11 Mar '11
------------------------------------ ------- ------- ------- ------- -------
Beginning ALLL                       $ 8,392 $ 8,331 $ 8,123 $10,452 $ 9,953
Provision for Loan Losses                550     350     750   1,000   1,000
Net Charge-offs                          492     289     542   3,329     501
Ending ALLL                          $ 8,450 $ 8,392 $ 8,331 $ 8,123 $10,452
Ending ALLL (net of specific
 reserves)                           $ 8,246 $ 8,142 $ 7,783 $ 8,075 $ 7,455

The allowance for loan losses was 1.32% of total loans, or $8.5 million, at March 31, 2012 compared to 1.33% of total loans, or $8.4 million at December 31, 2011 and 1.78% of total loans, or $10.5 million at March 31, 2011.

Net charge-offs for the quarter were $0.5 million, or 0.08% of average loans, compared to $0.5 million or 0.09% of average loans for the same period a year ago. For the twelve months ended March 31, 2012, net charge offs were $4.7 million or 0.76% of average loans, compared to $1.8 million or 0.29% of loans for the twelve months ended March 31, 2011. The increase in our net charge-offs for twelve month period over the prior period, was due to the charge off of specific reserves on impaired loans which we previously held in reserve as was accepted practice under our previous regulator.

Non-performing assets decreased to $11.8 million, or 1.43% of total assets at March 31, 2012, compared to $12.4 million, or 1.53% of total assets at December 31, 2011 and $17.3 million, or 2.22% of total assets a year ago, primarily due to sales of real estate owned during the quarter.


------------------------------------ ------- ------- ------- ------- -------
Net Interest Income
QUARTERLY COMPARISON (In 000's)      Mar '12 Dec '11 Sep '11 Jun '11 Mar '11
------------------------------------ ------- ------- ------- ------- -------
Interest Income                      $ 9,807 $ 9,766 $ 9,861 $ 9,758 $ 9,736
Interest Expense                       2,111   2,080   2,078   2,185   2,363
                                     ------- ------- ------- ------- -------
Net Interest Income                  $ 7,696 $ 7,686 $ 7,783 $ 7,573 $ 7,373
                                     ======= ======= ======= ======= =======

Interest income increased slightly compared to the linked quarter primarily due to growth in loan balances offset somewhat by reduced yields on loans. Interest expense increased slightly compared to the linked quarter.


------------------------------- -------  -------  -------  -------  -------
Net Interest Margin and Spread
QUARTERLY COMPARISON            Mar '12  Dec '11  Sep '11  Jun '11  Mar '11
------------------------------- -------  -------  -------  -------  -------
Yield on Earning Assets            5.20%    5.30%    5.48%    5.46%    5.61%
Cost of Interest Bearing
 Liabilities                       1.31%    1.31%    1.36%    1.43%    1.57%
Spread                             3.90%    3.99%    4.13%    4.03%    4.04%
Net Interest Margin                4.08%    4.17%    4.33%    4.24%    4.25%

Net interest margin amounted to 4.08% for the three-month period ended March 31, 2012 compared to 4.25% for the three-months ended March 31, 2011. The decrease was primarily due to lower rates on interest earning assets offset somewhat by lower rates on interest bearing liabilities.

Spread amounted to 3.90% for the three month period ended March 31, 2012, compared to 4.04% for the same period in the previous year. Compared to the same quarter last year, average yield on earnings assets decreased 41 basis points from 5.61% to 5.20%, while the average cost of funds decreased 26 basis points from 1.57% to 1.31%.

Operating Revenue
Operating revenue for the quarter, consisting of net interest income (before provisions for loan losses) plus non-interest income, amounted to $11.6 million, which was $0.4 million higher than the same quarter in 2011.

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


------------------------------------ ------- ------- ------- ------- -------
Operating Revenue
QUARTERLY COMPARISON (in millions)   Mar '12 Dec '11 Sep '11 Jun '11 Mar '11
------------------------------------ ------- ------- ------- ------- -------
Net Interest Income                  $   7.7 $   7.7 $   7.8 $   7.6 $   7.4
Non Interest Income                      3.9     3.8     3.8     3.9     3.8
                                     ------- ------- ------- ------- -------
Operating Revenue                    $  11.6 $  11.5 $  11.6 $  11.5 $  11.2
                                     ======= ======= ======= ======= =======

Non-Interest Income
Non-interest income remained stable at $3.9 million compared to $3.8 million in the linked quarter and $3.8 million for the same quarter in 2011. Non-interest income amounted to 1.89% of average assets for the quarter, compared to 1.88% for the linked quarter and 2.03% a year ago.


------------------------------- -------  -------  -------  -------  -------
Non-Interest Income & Expense
QUARTERLY COMPARISON (in
 thousands)                     Mar '12  Dec '11  Sep '11  Jun '11  Mar '11
------------------------------- -------  -------  -------  -------  -------
  Interchange fee Income        $   843  $   778  $   830  $   881  $   820
  Other Non-Interest Income     $ 3,038  $ 2,990  $ 2,994  $ 3,009  $ 3,030
Total Non-Interest Income       $ 3,881  $ 3,768  $ 3,824  $  3890  $ 3,850
Total Non-Interest Income/Avg.
 Assets                            1.89%    1.88%    1.94%    1.99%    2.03%
Non-Interest Expense            $ 8,445  $ 8,447  $ 7,855  $ 7,777  $ 7,918
Non-Interest Expense/Avg.
 Assets                            4.11%    4.21%    3.99%    3.99%    4.17%

Non-Interest Expense
For the quarter, non-interest expense was $8.4 million or 4.11% of average assets, compared to the linked quarter of $8.4 million or 4.21% of average assets with the decrease primarily due to a growth in assets. Compared to the same quarter in fiscal 2011, non-interest expense increased by $0.5 million from $7.9 million to $8.4 million, an increase of 6.7% primarily due to increases in compensation, marketing, data processing and expenses related to adjustments in values of foreclosed assets.

Net Income and Dividends
On February 23, 2012, the board of directors declared a $0.365 per share quarterly dividend, its sixty-seventh consecutive. Based on the closing price of the Company's common stock of $37.42 on that date, the annualized dividend yield was 3.9%. Since 2003, the Company has increased dividends for nine consecutive years.


----------------------------------- ------- ------- ------- ------- --------
QUARTERLY COMPARISON (In 000's)     Mar '12 Dec '11 Sep '11 Jun '11  Mar '11
----------------------------------- ------- ------- ------- ------- --------
Dividends Declared Per Share        $ 0.365 $  0.36 $  0.36 $  0.36 $   0.36
Basic Earnings Per Common Share     $  0.83 $  0.86 $  1.02 $  0.86 $   0.73
Diluted Earnings Per Common Share   $  0.82 $  0.85 $  1.01 $  0.85 $   0.72

Loans


------------------------------------ ------- ------- ------- ------- -------
QUARTERLY COMPARISON (In 000,000's)  Mar '12 Dec '11 Sep '11 Jun '11 Mar '11
------------------------------------ ------- ------- ------- ------- -------
SmartGrowth Loans
  Consumer                           $ 106.6 $ 107.4 $ 108.8 $ 109.5 $ 109.1
  Commercial                           208.6   213.6   209.5   201.3   207.5
  Home Equity                           46.5    47.3    48.8    51.3    51.0
  SmartMortgages                       102.2    98.2    92.9    88.0    88.8
                                     ------- ------- ------- ------- -------
Total SmartGrowth Loans              $ 463.9 $ 466.5 $ 460.0 $ 450.1 $ 456.4
  Mortgage Loans (owner occupied
   conforming)                         177.6   166.1   148.6   133.3   131.7
                                     ------- ------- ------- ------- -------
Total Loans                          $ 641.5 $ 632.6 $ 608.6 $ 583.4 $ 588.2

Linked Quarter Comparison. Gross loans receivable increased to $641.5 million at March 31, 2012, from $632.6 million at December 31, 2011, an increase of $8.9 million, or 1.4% due primarily to increases in 15-year one-to-four family mortgage loans and adjustable rate mortgage loans offset somewhat by reductions in consumer, commercial, and home equity loans. SmartGrowth Loans, consisting of commercial loans, home equity loans, SmartMortgage loans and consumer loans, were $463.9 million, or 72.3% of total loans at March 31, 2012, compared to $466.5 million, or 73.7% at December 31, 2011, a three month decrease of $2.6 million, or 0.6%.

Commercial loan balances at March 31, 2012 amounted to $208.6 million, compared to $213.6 million at December 31, 2011, a three month decrease of $5.0 million or 2.4%. Consumer loan balances at March 31, 2012 amounted to $106.6 million, compared to $107.4 million at December 31, 2011, a linked quarter decrease of $0.8 million, or 0.7%.

One Year Comparison. Gross loans receivable increased to $641.5 million at March 31, 2012 from $588.2 million at March 31, 2011 a twelve month increase of $53.3 million, or 9.1%. SmartGrowth Loans increased to $463.9 million at March 31, 2012, from $456.5 million at March 31, 2011, a twelve month increase of $7.4 million, or 1.6%.

Commercial loan balances at March 31, 2012 amounted to $208.6 million, compared to $207.5 million at March 31, 2011 a twelve month increase of $1.1 million, or 0.5%. Consumer loan balances at March 31, 2012 amounted to $106.6 million, compared to $109.1 million at March 31, 2011 a twelve month decrease of $2.5 million, or 2.3%.

Deposits


----------------------------------- ------- ------- ------- ------- --------
QUARTERLY COMPARISON (In 000,000's) Mar '12 Dec '11 Sep '11 Jun '11  Mar '11
----------------------------------- ------- ------- ------- ------- --------
SmartGrowth Deposits
  Checking                          $ 223.3 $ 199.0 $ 190.8 $ 209.1 $  193.3
  Money Market                         54.8    52.0    55.0    55.3     56.6
  Savings                             194.9   188.3   190.7   191.6    188.8
                                    ------- ------- ------- ------- --------
Total SmartGrowth Deposits          $ 473.0 $ 439.3 $ 436.5 $ 456.0 $  438.7
Time Deposits                         157.5   160.0   162.1   169.4    172.2
                                    ------- ------- ------- ------- --------
Total Deposits                      $ 630.5 $ 599.3 $ 598.6 $ 625.3 $  610.9

Linked Quarter Comparison. Total deposits increased to $630.5 million at March 31, 2012, from $599.3 million at December 31, 2011, a linked quarter increase of $31.2 million or 5.2%. The Company's SmartGrowth Deposit Accounts, consisting of checking accounts, money market accounts, and savings accounts increased $33.7 million to $473.0 million or 7.7% at March 31, 2012, from $439.3 million at December 31, 2011.

Checking account balances at March 31, 2012 increased $24.3 million, or 12.2%, to $223.3 million from $199.0 million at December 31, 2011.

One Year Comparison. Total deposits increased to $630.5 million at March 31, 2012, from $610.9 million at March 31, 2011, a twelve month increase of $19.6 million, or 3.2%. Total SmartGrowth Deposits increased $34.3 million, or 7.8% from $438.7 million at March 31, 2011 to $473.0 million at March 31, 2012.

SmartGrowth Deposits amounted to 75.0% of total deposits as of March 31, 2012 compared to 71.8% at March 31, 2011.

Checking account balances have increased 15.5%, or $30.0 million, in the past twelve months from $193.3 million at March 31, 2011 to $223.3 million at March 31, 2012. Checking account balances at March 31, 2012 accounted for 35.4% of total deposits compared to 31.6% of total deposits at March 31, 2011.

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 $829 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
                            Statements of Income
                                (UNAUDITED)

                                          THREE MONTHS ENDED
                           ------------------------------------------------
Condensed Statements of       Mar.      Dec.     Sep.      Jun.       Mar.
 Income                      2012      2011      2011      2011      2011
                           --------  --------  --------  --------  --------
Interest Income            $  9,807  $  9,766  $  9,861  $  9,758  $  9,736
Interest Expense              2,111     2,080     2,078     2,185     2,363
                           --------  --------  --------  --------  --------
Net Interest Income           7,696     7,686     7,783     7,573     7,373
Provision for Loan Losses       550       350       750     1,000     1,000
                           --------  --------  --------  --------  --------
Net Interest Income after
  Provision for Loan
   Losses                     7,146     7,336     7,033     6,573     6,373
Non Interest Income           3,881     3,768     3,824     3,890     3,850
Non Interest Expense          8,445     8,447     7,855     7,777     7,918
                           --------  --------  --------  --------  --------
Income Before Income Taxes    2,582     2,657     3,002     2,686     2,305
Income Taxes                    874       885       900       896       792
                           --------  --------  --------  --------  --------
Net Income                 $  1,708  $  1,772  $  2,102  $  1,790  $  1,513
                           ========  ========  ========  ========  ========
Selected Financial Data
                           --------  --------  --------  --------  --------
Dividends Declared Per
 Share                     $  0.365  $   0.36  $   0.36  $   0.36  $   0.36
Basic Earnings Per Common
 Share                     $   0.83  $   0.86  $   1.02  $   0.86  $   0.73
Diluted Earnings Per
 Common Share              $   0.82  $   0.85  $   1.01  $   0.85  $   0.72
Annualized Return on Avg.
 Assets                        0.83%     0.88%     1.07%     0.92%     0.80%
Annualized Return on Avg.
 Equity                        8.22%     8.86%    10.40%     8.96%     7.74%
Annualized Return on Avg.
  Tangible Equity (1)          8.61%     9.30%    10.90%     9.40%     8.13%
Yield on Interest Earning
 Assets                        5.20%     5.30%     5.48%     5.46%     5.61%
Cost of Interest Bearing
 Liabilities                   1.31%     1.31%     1.36%     1.43%     1.57%
Spread                         3.90%     3.99%     4.13%     4.03%     4.04%
Net Interest Margin            4.08%     4.17%     4.33%     4.24%     4.25%
Non-Interest Income/Avg.
 Assets                        1.89%     1.88%     1.94%     1.99%     2.03%
Non-Interest Expense/Avg.
 Assets                        4.11%     4.21%     3.99%     3.99%     4.17%
Quarterly Net Charge-
 offs/Avg. Loans               0.08%     0.05%     0.09%     0.57%     0.09%
Weighted avg. shares
 Outstanding
  Basic                       2,067     2,059     2,064     2,073     2,072
  Diluted                     2,088     2,078     2,085     2,097     2,098
AVERAGE BALANCE SHEET DATA
                           --------  --------  --------  --------  --------
Total Assets               $821,582  $803,024  $787,782  $780,213  $759,993
Earning assets             $753,980  $738,111  $719,384  $714,528  $693,747
Loans                      $636,356  $621,073  $591,736  $586,420  $589,879
Interest-bearing deposits  $522,420  $513,104  $520,489  $529,664  $514,771
Total deposits             $608,777  $594,376  $607,949  $613,778  $590,664
Total stockholders' equity $ 83,095  $ 79,993  $ 80,857  $ 79,942  $ 78,197

(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                    $ 83,095  $ 79,993  $ 80,857  $ 79,942  $ 78,197
Less average goodwill and
 other intangible assets,
 net of related income
 taxes                        3,665     3,667     3,671     3,671     3,667
Average Tangible Equity    $ 79,430  $ 76,326  $ 77,186  $ 76,271  $ 74,530
                           ========  ========  ========  ========  ========

Net Income                    1,708     1,772     2,102     1,790     1,513
Plus Amortization of core
 deposit intangibles, net
 of related income taxes          2         2         2         3         2
                           --------  --------  --------  --------  --------
Net Income, as adjusted    $  1,710  $  1,774  $  2,104  $  1,793  $  1,515
                           ========  ========  ========  ========  ========


                           TECHE HOLDING COMPANY
               (Dollars in thousands, except per share data)
                               New Iberia, LA
                            Statements of Income
                                (UNAUDITED)

                                         FISCAL YEAR TO DATE (SIX MONTHS)
                                                      ENDED
                                      -------------------------------------
                                        Mar.      Mar.
                                        2012      2011     $Change  %Change
                                      --------  --------  --------  -------
Interest Income                       $ 19,573  $ 19,739  $   (166)    -0.8%
Interest Expense                         4,191     4,905      (714)   -14.6%
                                      --------  --------  --------  -------
Net Interest Income                     15,382    14,834       548      3.7%
Provision for Loan Losses                  900     2,150    (1,250)   -58.1%
                                      --------  --------  --------  -------
Net Interest Income after
Provision for Loan Losses               14,482    12,684     1,798     14.2%
Non Interest Income                      7,649     7,831      (181)    -2.3%
Non Interest Expense                    16,892    15,500     1,392      9.0%
                                      --------  --------  --------  -------

Income Before Income Taxes               5,239     5,015       225      4.5%
Income Taxes                             1,759     1,678        82      4.9%
                                      --------  --------  --------  -------
Net Income                            $  3,480  $  3,337  $    143      4.3%
                                      ========  ========  ========  =======
Selected Financial Data
                                      --------  --------  --------  -------
Dividends Declared Per Share          $  0.725  $   0.72  $  0.005      0.7%
Basic Earnings Per Common Share           1.69      1.61      0.08      5.0%
Diluted Earnings Per Common Share         1.67      1.59      0.08      5.0%
Annualized Return on Avg. Assets          0.86%     0.88%    -0.02%    -2.2%

Annualized Return on Avg. Equity          8.54%     8.55%    -0.01%    -0.1%
Annualized Return on Avg.
Tangible Equity (1)                       8.94%     8.99%    -0.05%    -0.6%
Yield on Interest Earning Assets          5.25%     5.68%    -0.43%    -7.6%
Cost of Interest Bearing Liabilities      1.31%     1.63%    -0.32%   -19.6%
Spread                                    3.94%     4.05%    -0.11%    -2.7%
Net Interest Margin                       4.12%     4.27%     0.15%    -3.5%
Non-Interest Income/Avg. Assets           1.88%     2.06%    -0.18%    -8.7%
Non-Interest Expense/Avg. Assets          4.16%     4.08%     0.08%     2.0%
Quarterly Net Charge-offs/Avg. Loans      0.12%     0.16%    -0.04%   -25.0%
Weighted avg. shares Outstanding
  Basic                                  2,063     2,070        (7)    -0.3%
  Diluted                                2,083     2,093       (10)    -0.5%
AVERAGE BALANCE SHEET DATA
                                      --------  --------  --------  -------
Total Assets                          $812,252  $759,920  $ 52,332      6.9%
Earning assets                        $745,806  $695,040  $ 50,766      7.3%
Loans                                 $628,673  $592,745  $ 35,928)     6.1%
Interest-bearing deposits             $517,731  $510,787  $  6,944      1.4%
Total deposits                        $601,532  $585,225  $ 16,307      2.8%
Total stockholders' equity            $ 81,536  $ 78,053  $  3,483      4.5%

(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          $ 81,536  $ 78,053  $  3,483      4.5%
Less average goodwill and other
 intangible assets, net of related
 income taxes                            3,665     3,677       (12)    -0.3%
Average Tangible Equity                 77,871    74,376     3,495      4.7%
                                      ========  ========  ========  =======

Net Income                               3,480     3,337       143      4.3%
Plus Amortization of core deposit
 intangibles, net of related income
 taxes                                       6         6         0      0.0%
                                      --------  --------  --------  -------
Net Income, as adjusted               $  3,486  $  3,343  $    143      4.3%
                                      ========  ========  ========  =======



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

                             Mar.      Dec.      Sep.      Jun.      Mar.
                             2012      2011      2011      2011      2011
                           --------  --------  --------  --------  --------
SmartGrowth Loans
  Consumer                 $106,596  $107,399  $108,849  $109,476  $109,092
  Commercial                208,579   213,659   209,460   201,324   207,509
  Home Equity                46,486    47,261    48,799    51,293    51,045
  SmartMortgage Loans       102,228    98,221    92,910    88,019    88,799
                           --------  --------  --------  --------  --------
Total SmartGrowth Loans     463,889   466,540   460,018   450,112   456,445
 Mortgage Loans (owner
  occupied conforming)      177,566   166,088   148,584   133,264   131,708
                           --------  --------  --------  --------  --------
                            641,455   632,628   608,602   583,376   588,153
Allowance for Loan Losses    (8,450)   (8,392)   (8,331)   (8,123)  (10,452)
                           --------  --------  --------  --------  --------
Loans Receivable, Net       633,005   624,236   600,271   575,253   577,701

Cash and Securities         136,841   130,126   134,902   154,061   144,465
Goodwill and Other
 Intangibles                  3,664     3,667     3,670     3,673     3,678
Foreclosed Real Estate          397     1,012     1,405     2,694     2,039
Other                        55,799    54,504    52,955    53,323    54,269
                           --------  --------  --------  --------  --------
TOTAL ASSETS               $829,706  $813,545  $793,203  $789,004  $782,152
                           ========  ========  ========  ========  ========

SmartGrowth Deposits
  Checking                 $223,228  $199,021  $190,822  $209,080  $193,244
  Money Market               54,817    52,019    54,970    55,280    56,618
  Savings                   194,919   188,303   190,727   191,586   188,819
                           --------  --------  --------  --------  --------
Total Smart Growth
 Deposits                   472,964   439,343   436,519   455,946   438,681
Time Deposits               157,547   159,968   162,063   169,377   172,211
                           --------  --------  --------  --------  --------
Total Deposits              630,511   599,311   598,582   625,323   610,892

FHLB Advances               110,344   127,621   108,184    79,533    83,585
Other Liabilities             6,682     5,501     6,450     5,567    10,097
Stockholders' Equity         82,169    81,112    79,987    78,581    77,578
                           --------  --------  --------  --------  --------
TOTAL LIABILITIES AND
 STOCKHOLDERS' EQUITY      $829,706  $813,545  $793,203  $789,004  $782,152
                           ========  ========  ========  ========  ========

Ratio of Equity to Assets      9.90%     9.97%    10.08%     9.96%     9.92%
Tangible Equity Ratio          9.50%     9.56%     9.67%     9.54%     9.49%
Total Risk-Based Capital
 Ratio                        14.12%    14.09%    14.30%    14.26%    13.94%
Book Value per Common
 Share                     $  39.68  $  39.24  $  38.79  $  37.87  $  37.23
Tangible Book Value Per
 Common Share (1)          $  37.91  $  37.47  $  37.02  $  36.11  $  35.47
Shares Outstanding (in
 thousands)                   2,071     2,067     2,062     2,075     2,084
Non-performing
 Assets/Total Assets           1.43%     1.53%     1.55%     1.82%     2.22%
ALLL/Loans                     1.32%     1.33%     1.37%     1.39%     1.78%
ALLL/NPLs                     74.02%    73.72%    76.63%    69.94%    68.32%

(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       $ 82,169  $ 81,112  $ 79,987  $ 78,581  $ 77,578
Less goodwill and other
 Intangible assets, net of
 related income taxes        (3,654)   (3,657)   (3,659)   (3,661)   (3,664)
                           --------  --------  --------  --------  --------
Tangible Stockholders'
 Equity                    $ 78,515  $ 77,455  $ 76,328  $ 74,920  $ 73,914
                           ========  ========  ========  ========  ========

Total Assets               $829,706  $813,545  $793,203  $789,004  $782,152
Less goodwill and other
 Intangible assets, net of
 related income taxes        (3,654)   (3,657)   (3,659)   (3,661)   (3,664)
                           --------  --------  --------  --------  --------
Total Tangible Assets      $826,052  $809,888  $789,544  $785,343  $778,488
                           ========  ========  ========  ========  ========



                                                         90 Days
                                        Net        Net         +  90 Days +
                             Total  Charge-    Charge-       Non        Non
Quarter-End Loan Data        Loans     Offs       Offs   Accrual    Accrual
March 31, 2012             Dollars  Dollars Percentage   Dollars Percentage
------------------------- -------- -------- ----------  -------- ----------
Real Estate Loans
  Construction            $ 15,986 $     --       0.00% $    656        4.1%
  Permanent, Secured by:
    1-4 Dwelling Units:
      Revolving, Open-End
       Loans (HELOC)      $ 20,748 $     --       0.00% $     96        0.5%
      All Other
        Secured by First
         Liens            $360,057 $     81       0.02% $  4,105        1.1%
        Secured by Junior
         Liens               8,147       --       0.00%       --        0.0%
      Multifamily (5+
       Dwelling Units)      21,767       99       0.45%      733        3.4%
      Nonresidential
       Property (Except
       Land)                97,679       --       0.00%      730        0.7%
      Land                  33,138      250       0.75%    4,409       13.3%
                          -------- -------- ----------  -------- ----------
        Consumer            18,760       --       0.00%      147        0.8%
                          -------- -------- ----------  -------- ----------
        Commercial          14,378      250       1.74%    4,262       29.6%
                          -------- -------- ----------  -------- ----------
  Subtotal - Real Estate
   Loans                  $557,522 $    430       0.08% $ 10,729        1.9%
                          -------- -------- ----------  -------- ----------

Non-Real Estate Loans:
  Commercial Loans        $ 26,773 $     --       0.00% $    165        0.6%
  Consumer Loans:
        Loans on Deposits    3,575       --       0.00%      104        2.9%
        Auto Loans           1,786       --       0.00%       34        1.9%
        Mobile Home Loans   36,864       50       0.14%      289        0.8%
        Other               14,935       12       0.08%       95        0.6%
                          -------- -------- ----------  --------
  Subtotal - Non Real
   Estate Loans           $ 83,933 $     62       0.07% $    687        0.8%
                          -------- -------- ----------  -------- ----------

Gross Loans               $641,455 $    492       0.08% $ 11,416        1.8%
                          ======== ========             ========

Non-accruals              $ 11,199
90 + Days Past Due             217
OREO & Foreclosed              419
                          --------
  Nonperforming Assets
   (Net)                  $ 11,835
                          ========
  Performing TDRs               --


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

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

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

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


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

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

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

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




Loans: Linked Quarter
 Comparison                03/31/ 03/31/    12/31/ 12/31/
Average Loan Balances &      2012   2012      2011   2011    Change  Change
 Yields                   Balance  Yield   Balance  Yield   Balance   Yield
------------------------ -------- ------  -------- ------  --------  ------
Real Estate Loans
  1-4 Family             $396,005   5.19% $384,094   5.21% $ 11,911   -0.02%
  Commercial              137,203   5.54%  132,074   5.64%    5,129   -0.10%
                         --------         --------         --------
                          533,208   5.28%  516,168   5.32%   17,040   -0.04%

Non-Real Estate Loans
  Commercial             $ 26,721   5.77% $ 27,258   6.06% $   (537)  -0.29%
  Consumer                 76,427   9.16%   77,647   9.33%   (1,220)  -0.17%
                         --------         --------         --------
                          103,148   8.28%  104,905   8.48%   (1,757)  -0.20%

Total All Loans          $636,356   5.76% $621,073   5.85% $ 15,283   -0.09%
                         ========         ========         ========


Prior Year Comparison     03/31/  03/31/   03/31/  03/31/
Average Loan Balances &    2012    2012     2011    2011    Change   Change
Yields                    Balance  Yield   Balance  Yield   Balance   Yield
------------------------ -------- ------  -------- ------  --------  ------
Real Estate Loans
  1-4 Family             $396,005   5.19% $352,801   5.78% $ 43,204   -0.59%
  Commercial              137,203   5.54%  133,005   5.48%    4,198    0.06%
                         --------         --------         --------
                          533,208   5.28%  485,806   5.70%   47,402   -0.42%

Non-Real Estate Loans
  Commercial             $ 26,721   5.77% $ 24,876   5.78% $  1,845   -0.01%
  Consumer                 76,427   9.16%   79,197   9.23%   (2,770)  -0.07%
                         --------         --------         --------
                          103,148   8.28%  104,073   8.40%     (925)  -0.12%

Total All Loans          $636,356   5.76% $589,879   6.17% $ 46,477   -0.41%
                         ========         ========         ========


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

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

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


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

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

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


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

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

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


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

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

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

Interest-bearing Liabilities: Linked Quarter Comparison

Average balances          03/31           12/31
                   03/31  /2012    12/31  /2011            Change
                   /2012   Avg.    /2011   Avg.   Change    Avg.   %Balance
                 $Balance Yield  $Balance Yield  $Balance   Yield   Change
                 -------- -----  -------- -----  --------  ------  --------
 NOW Accounts    $119,544  0.19% $111,078  0.18% $  8,466    0.01%      7.6%
 Non-interest
  bearing
  Deposits         86,358  0.00%   81,272  0.00%    5,086    0.00%      6.3%
                 -------- -----  -------- -----  --------  ------  --------
  Checking Total $205,902  0.11% $192,350  0.11% $ 13,552    0.00%      7.0%

 Savings
  Accounts       $190,365  0.32% $186,897  0.31% $  3,468    0.01%      1.9%
 Money Market
  Accounts         53,727  0.25%   54,473  0.23%     (746)   0.02%     -1.4%
                 -------- -----  -------- -----  --------  ------  --------

 Total Smart
  Growth
  Deposits       $449,994  0.22% $433,720  0.21% $ 16,274    0.01%      3.8%

 Time Deposits   $158,784  2.16% $160,656  2.24% $ (1,872)  -0.08%     -1.2%

 Total Deposits  $608,778  0.72% $594,376  0.76% $ 14,402   -0.04%      2.4%

 FHLB Advances   $123,665  3.28% $120,740  3.15% $  2,925    0.13%      2.4%
                 -------- -----  -------- -----  --------  ------  --------

Total Interest-
 bearing
 liabilities     $646,085  1.31% $633,844  1.31% $ 12,241    0.00%      1.9%
                 --------        --------        --------

Non-interest
 bearing
 Deposits        $ 86,358  0.00% $ 81,272  0.00% $  5,086    0.00%      6.3%


Interest-bearing Liabilities: Prior Year Comparison

Average balances          03/31           03/31
                   03/31  /2012    03/31  /2011            Change
                   /2012   Avg.    /2011   Avg.   Change    Avg.   %Balance
                 $Balance Yield  $Balance Yield  $Balance   Yield   Change
                 -------- -----  -------- -----  --------  ------  --------
 NOW Accounts    $119,544  0.19% $110,357  0.17% $  9,187    0.02%      8.3%
 Non-interest
  bearing
  Deposits         86,358  0.00%   75,893  0.00%   10,465    0.00%     13.8%
                 -------- -----  -------- -----  --------  ------  --------
  Checking Total $205,902  0.11% $186,250  0.10% $ 19,652    0.01%     10.6%

 Savings
  Accounts       $190,365  0.32% $176,515  0.55% $ 13,850   -0.23%      7.8%
 Money Market
  Accounts         53,727  0.25%   56,670  0.35%   (2,943)  -0.10%     -5.2%
                 -------- -----  -------- -----  --------  ------  --------

 Total Smart
  Growth
  Deposits       $449,994  0.22% $419,435  0.32% $ 30,559   -0.10%      7.3%

 Time Deposits   $158,784  2.16% $171,229  2.47% $(12,445)  -0.31%     -7.3%

Total Deposits   $608,778  0.72% $590,664  0.94% $ 18,114   -0.22%      3.1%

 FHLB Advances   $123,665  3.28% $ 85,550  4.53% $ 38,115   -1.25%     44.6%
                 -------- -----  -------- -----  --------  ------  --------

Total Interest-
 bearing
 liabilities     $646,085  1.31% $600,321  1.57% $ 45,764   -0.26%      7.6%
                 --------        --------        --------

Non-interest
 bearing
 Deposits        $ 86,358  0.00% $ 75,893  0.00% $ 10,465    0.00%     13.8%


Interest-bearing Liabilities: Linked Quarter Comparison

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

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

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

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

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

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

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

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


Interest-bearing Liabilities: Prior Year Comparison

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

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

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

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

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

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

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

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


Interest-bearing Liabilities: Linked Quarter Comparison

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

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

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

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

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

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

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

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


Interest-bearing Liabilities: Average Quarter Balances

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

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

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

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

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

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

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

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


Quarter-End Loan
 Quality Details
March 31, 2012       Total               %    Special   %               %
(In Thousands)       Loans  Classified Total  Mention Total    Pass   Total
                   -------- ---------- -----  ------- -----  -------- -----
Commercial Loans
  Commercial Land  $ 14,378 $    4,262  29.6% $    39   0.3% $ 10,077  70.1%
  Commercial
   Construction       7,729        656   8.5%     376   4.9%    6,697  86.6%
  Commercial Real
   Estate           119,446      2,111   1.8%   3,488   2.9%  113,847  95.3%
  Commercial Non
   Real Estate       26,773        208   0.8%     127   0.5%   26,438  98.7%
                   -------- ---------- -----  ------- -----  -------- -----
    Total
     Commercial    $168,326 $    7,237   4.3% $ 4,030   2.4% $157,059  93.3%

Residential Loans
  Residential
   Construction    $  8,538         --   0.0%      --   0.0% $  8,538 100.0%
  Residential       390,540      4,346   1.1%     333   0.1%  385,861  98.8%
                   -------- ---------- -----  ------- -----  -------- -----
    Total
     Residential   $399,078 $    4,346   1.1% $   333   0.1% $394,399  98.8%

Consumer Loans
  Mobile Homes     $ 36,864 $      288   0.8%      --   0.0% $ 36,576  99.2%
  Consumer Other     39,057 $      249   0.6%      --   0.0%   38,808  99.4%
                   -------- ---------- -----  ------- -----  -------- -----
    Total Consumer $ 75,921 $      537   0.7%      --   0.0% $ 75,384  99.3%

Total All Loans    $643,325 $   12,120   1.9% $ 4,363   0.7% $626,842  97.4%


Quarter-End Loan
 Quality Details
December 31, 2011   Total               %     Special   %               %
(In Thousands)      Loans  Classified Total   Mention Total    Pass   Total
----------------- -------- ---------- -----  -------- -----  -------- -----
Commercial Loans
  Commercial Land $ 15,163 $    4,629  30.5% $     64   0.4% $ 10,470  69.1%
  Commercial
   Construction      9,068        763   8.4%      379   4.2%    7,926  87.4%
  Commercial Real
   Estate          118,693      1,177   1.0%    4,237   3.6%  113,279  95.4%
  Commercial Non
   Real Estate      27,217         51   0.2%      127   0.5%   27,039  99.3%
                  -------- ---------- -----  -------- -----  -------- -----
    Total
     Commercial   $170,141 $    6,620   3.9% $  4,807   2.8% $158,714  93.3%

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

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

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



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

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

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

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



Contact:
Patrick Little
President & CEO
Teche Holding Company
(337) 560-7151

Source: Teche Holding Company