TECHE HOLDING CO. is a one bank holding company. Teche Holding Co has a market cap of $75.3 million; its shares were traded at around $35.75 with a P/E ratio of 10.5 and P/S ratio of 1.2. The dividend yield of Teche Holding Co stocks is 3.9%. 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 June 30, 2009 totaled $789.5 million, an increase of $20.0 million or 2.6% 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 $22.4 million and securities held to maturity totaled $78.9 million at June 30, 2009, which, combined, represented an increase of $20.3 or 25.2% as compared to September 30, 2008. The increase was primarily due to purchases of FHLB agency securities totaling $10.0 million and purchases of certificates at other banks of $16.7 million, offset by normal principal repayments on the existing portfolio. Also, for the nine months ended June 30, 2009 other than temporary impairments of $754,000 were incurred related to certain private label mortgage backed investment securities. The $4.7 million carrying value of the held-to-maturity private label mortgage related securities amounts to 0.60% of total assets. Approximately 76% are rated AAA, AA or A at June 30, 2009. The following table provides additional information on this part of our investment portfolio:
Stockholders’ equity was $70.1 million at June 30, 2009 and $68.0 million at September 30, 2008. The increase was due primarily net income less dividend payments of $2.2 million, the purchase of $921,000 in additional treasury stock, and a loan to the Employee Stock Ownership plan for $586,000.
Net Income. The Company had 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 months ended June 30, 2009 as compared to net loss of $(476,000) or $(0.22) per diluted share, and net income of $3.6 million or $1.64 per diluted share, for the three and nine month periods ended June 30, 2008, respectively. The 2008 periods included the impact of the withdrawal of the Bank’s investment in the AMF Fund and the transfer and settlements of its defined benefit pension plan obligations. The changes affecting net income for June 2009 are discussed in the following paragraphs by category.
Non-Interest Income. Total non-interest income increased $2.3 million and $2.0 million for the three and nine month periods ended June 30, 2009. The increase from the prior year is due to a loss on sale of securities recorded at June 30, 2008, including a loss of $2.5 million on the withdrawal of the Bank’s investment in the AMF Fund. The increase in the three and nine month period is also attributable to a slight increase in service charge income.
Non-Interest Expense. Total non-interest expense decreased $695,000 and increased $624,000, respectively, during the three and nine months ended June 30, 2009, as compared to the same periods in 2008 due primarily to a one time charge assessed at June 30, 2008 for $1.5 million related to the transfer and settlement of the Company’s defined benefit pension plan obligations offset by increased payroll benefits, incentive pay, normal compensation increases, along with an increase in FDIC insurance premiums via special and regular assessments.
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