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Teche Holding Co Reports Operating Results (10-Q)

May 14, 2010 | About:

10qk

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Teche Holding Co (TSH) filed Quarterly Report for the period ended 2010-03-31.

Teche Holding Co has a market cap of $66.3 million; its shares were traded at around $31.57 with a P/E ratio of 9.4 and P/S ratio of 1.1. The dividend yield of Teche Holding Co stocks is 4.4%. Teche Holding Co had an annual average earning growth of 7.8% over the past 10 years.

Highlight of Business Operations:

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 $241,000, and $635,000, for the three and six months ended March 31, 2010 as compared to insurance expense of $103,000, and $150,000, for the three and six month periods ended March 31, 2009, respectively

Securities available-for-sale totaled $17.6 million and securities held to maturity totaled $59.2 million at March 31, 2010, which, combined, represented a decrease of $19.6 million or 20.3% as compared to September 30, 2009. The decrease was primarily due to maturities of certificates held at other banks totaling $10.2 million along with normal principal repayments on the existing portfolio. Also, for the six months ended March 31, 2010 other than temporary impairments of $112,000 were incurred related to certain private label mortgage backed investment securities.

Stockholders equity was $73.6 million at March 31, 2010 and $71.5 million at September 30, 2009. The increase was due primarily to net income less dividend payments of $1.5 million.

Net Income. The Company had net income of $1.7 million or $0.80 per diluted share, and $3.4 million or $1.62 per diluted share, for the three and six months ended March 31, 2010 as compared to 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 month periods ended March 31, 2009, respectively. The changes affecting net income are discussed in the following paragraphs by category.

Provision for Loan Losses. Management recorded a $2.1 million provision for the fiscal year to date as compared to a provision of $1.2 million for the first half of fiscal 2009. The increase in the loan loss provision was due to the increase in non-performing loans including loans totaling $6.4 million to a commercial credit relationship involving a residential land development and five show homes in the Baton Rouge market area that the borrower of which filed for protection under Chapter 11 bankruptcy.

Non-Performing Assets. Non-performing assets totaled $17.3 million, or 2.3% of total assets, at March 31, 2010, compared to $11.9 million, or 1.58% of total assets, at December 31, 2009, and $8.3 million, or 1.05% of total assets, a year ago. Non-performing assets consist of non-accrual loans, accruing loans 90 days or more past due and other real estate owned. The increase is due to a commercial credit relationship as discussed previously.

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