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Teche Holding Co Reports Operating Results (10-Q)

August 12, 2010 | About:
10qk

10qk

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Teche Holding Co (TSH) filed Quarterly Report for the period ended 2010-06-30.

Teche Holding Co has a market cap of $59.1 million; its shares were traded at around $28.2 with a P/E ratio of 8.2 and P/S ratio of 1. The dividend yield of Teche Holding Co stocks is 5.1%. Teche Holding Co had an annual average earning growth of 7.8% over the past 10 years.

Highlight of Business Operations:

On November 12, 2009 the FDIC adopted a final rule to require insured institutions to prepay their estimated quarterly risk-based assessments for the fourth quarter of 2009, and for all of 2010, 2011, and 2012. The prepaid assessment was collected on December 30, 2009, along with each institution s regular quarterly risk-based deposit insurance assessment for the third quarter of 2009. For purposes of calculating the prepaid assessment, each institution s assessment rate will be its total base assessment rate in effect on September 30, 2009. On September 29, 2009, the FDIC increased annual assessment rates uniformly by 3 basis points beginning in 2011. As a result, an institution s total base assessment rate for purposes of calculating the prepayment was increased by an annualized 3 basis points beginning in 2011. For purposes of calculating the amount that an institution was required to prepay on December 30, 2009, an institution s third quarter 2009 assessment base was increased quarterly at a 5 percent annual growth rate through the end of 2012. The FDIC will begin to draw down an institution s prepaid assessments on March 30, 2010, representing payment for the regular quarterly risk-based assessment for the fourth quarter of 2009. The total prepaid assessment for the Bank was $3.2 million and was paid on December 30, 2009. The Company had insurance expense of $230,000, and $865,000, for the three and nine months ended June 30, 2010 as compared to insurance expense of $104,000, and $254,000, for the three and nine month periods ended June 30, 2009, respectively

The Company s total assets at June 30, 2010 amounted to $765.5 million, an increase of $0.4 million or 0.05% as compared to $765 million at September 30, 2009. The increase was primarily due to increases in interest bearing deposits, and prepaid assets due to the FDIC prepaid assessment in December 2009 offset by normal reductions in securities available-for-sale and held-to-maturity.

Securities available-for-sale totaled $15.9 million and securities held to maturity totaled $65.8 million at June 30, 2010, which, combined, represented a decrease of $14.5 million or 15.08% as compared to September 30, 2009. The decrease was primarily due to normal principal repayments on the existing portfolio. Also, for the nine months ended June 30, 2010 other than temporary impairments of $112,000 were recognized in income related to certain private label mortgage backed investment securities.

Total deposits, after interest credited, at June 30, 2010 were $578.1 million, which represented a decrease of $7.4 million or 1.26% as compared to September 30, 2009. The decrease was due to decreases in money market and time deposit accounts offset somewhat by increases in checking and savings accounts. Advances increased $5.8 million or 5.78% as compared to the amount at September 30, 2009. The increase was due to a take down of $10.0 million in long-term advances offset by normal principal payments on existing advances. The weighted average remaining maturity on our time deposit portfolio is approximately 22 months.

Stockholders equity was $74.5 million at June 30, 2010 and $71.5 million at September 30, 2009. The increase was due primarily to net income less dividend payments of $2.2 million.

Net Income. The Company had net income of $1.8 million or $0.87 per diluted share, and net income of $5.3 million or $2.49 per diluted share, for the three and nine months ended June 30, 2010 as compared to net income of $1.7 million or $0.81 per diluted share, and net income of $5.2 million or $2.42 per diluted share, for the three and nine month periods ended June 30, 2009, respectively. The changes affecting net income for June 2010 are discussed in the following paragraphs by category.

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