Teche Holding Co Reports Operating Results (10-Q)
TECHE HOLDING CO. is a one bank holding company. Teche Holding Co has a market cap of $72.4 million; its shares were traded at around $34.15 with a P/E ratio of 11.9 and P/S ratio of 1.2. The dividend yield of Teche Holding Co stocks is 4.1%. Teche Holding Co had an annual average earning growth of 3.5% over the past 5 years. Highlight of Business Operations: The Company’s total assets at March 31, 2009 totaled $795.5 million, an increase of $26.0 million or 3.4% as compared to $769.5 million at September 30, 2008. The increase was primarily the result of an increase in loans and interest bearing deposits from additional funding provided by the Company’s increase in savings and checking account balances.
Securities available-for-sale totaled $24.2 million and securities held to maturity totaled $56.5 million at March 31, 2009, which, combined, represented a decrease of $237,000 or 0.3% as compared to September 30, 2008. The decrease was primarily due to normal principal payments on the existing
Stockholders’ equity was $70.1 million at March 31, 2009 and $68.0 million at September 30, 2008. Earnings for the six months ended March 31, 2009 as well as unrealized gains on securities available for sale were offset by dividend payments of $1.5 million, the purchase of $126,000 in additional treasury stock, and a loan to the Employee Stock Ownership plan for $432,000.
Net Income. The Company had net income of $1.7 million or $0.78 per diluted share, and $3.4 million or $1.61 per diluted share, for the three and six months ended March 31, 2009 as compared to net income of $2,184,000 or $1.00 per diluted share, and $4,067,000 or $1.84 per diluted share, for the three and six month periods ended March 31, 2008, respectively. The decrease in net income was primarily due to an increase in the provision for loan losses. Other changes affecting net income are discussed in the following paragraphs by category.
Provision for Loan Losses. The provision for loan losses increased $845,000 and $820,000, respectively, for the three and six month periods ended March 31, 2009, as compared to the same periods in 2008. The increase in the loan loss provision for the three and six month periods ended March 31, 2009 was primarily due to an increase in impaired loans. Impaired loans increased from $1.8 million at March 31, 2008 to $4.4 million at March 31, 2009. The increase in impaired loans consisted primarily of first mortgage loans on non-owner occupied condominium units in the Baton Rouge area in the amount of $1.5 million. Total loans on non-owner occupied condominium units in the Baton Rouge area amounted to $5.0 million at March 31, 2009. In comparison to the linked quarter, total delinquent loans, which includes loans past due 30 days and over and non accrual loans, decreased $2.4 million or 14.4%.
Non-Interest Income. Total non-interest income increased $65,000 and decreased $324,000 for the three and six month periods ended March 31, 2009, respectively as compared to the same periods in 2008. The decrease in the six month period is attributable to losses of securities of $419,000. The increase in the three month period is attributable to an increase in service charge income.
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