SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
----------------
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1997
------------------------------------------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
----------------------- ----------------------
Commission file number 0-25538
-----------
TECHE HOLDING COMPANY
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Louisiana 72-128746
- --------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. employer identification no.)
incorporation or organization)
211 Willow Street, Franklin, Louisiana 70538
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (318) 828-3212
-----------------------------
N/A
- --------------------------------------------------------------------------------
Former name, former address and former fiscal year, if changed since last
report.
Indicate by check [X] whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No
----- -----
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date July 31, 1997 .
-----------------
Class Outstanding
- --------------------------- ----------------
$.01 par value common stock 3,437,530 shares
<PAGE>
TECHE HOLDING COMPANY
FORM 10-Q
FOR THE QUARTER ENDED JUNE 30, 1997
INDEX
Page
Number
PART I - CONSOLIDATED FINANCIAL INFORMATION OF TECHE
HOLDING COMPANY
Item 1. Financial Statements 1
Item 2. Management's Discussion and Analysis of Financial 6
Condition and Results of Operations
PART II - OTHER INFORMATION
Item 1. Legal Proceedings 10
Item 2. Changes in Securities 10
Item 3. Defaults upon Senior Securities 10
Item 4. Submission of Matters to a Vote of Security Holders 10
Item 5. Other Materially Important Events 10
Item 6. Exhibits and Reports on Form 8-K 10
SIGNATURES
<PAGE>
TECHE HOLDING COMPANY
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
<TABLE>
<CAPTION>
At At
June 30, September 30,
1997 1996
---------------- --------------
(unaudited)
<S> <C> <C>
ASSETS
Cash and cash equivalents.................................................... $ 9,874 $ 7,072
Certificates of deposit...................................................... 631 914
Securities available-for-sale, at estimated
market value (amortized cost of $40,753 and $43,960)....................... 41,133 44,496
Loans receivable, net of allowance for loan losses
of $3,315 and $3,182)...................................................... 341,786 316,216
Accrued interest receivable.................................................. 2,176 1,868
Investment in Federal Home Loan Bank stock, at cost.......................... 3,868 3,703
Real estate owned, net....................................................... 51 46
Prepaid expenses and other assets............................................ 645 783
Premises and equipment, at cost less accumulated depreciation................ 6,089 4,492
------- -------
TOTAL ASSETS........................................................... $406,253 $379,590
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits..................................................................... 278,546 $254,723
Advances from Federal Home Loan Bank......................................... 70,474 66,900
Advance payments by borrowers for taxes and insurance........................ 1,616 1,923
Accrued interest payable..................................................... 255 283
Accounts payable and other liabilities....................................... 1,978 1,655
SAIF special assessment...................................................... -- 1,824
------- -------
Total liabilities...................................................... 352,869 327,308
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock, 5,000,000 shares authorized;
none issued.............................................................. -- --
Common stock, $.01 par value, 10,000,000 shares
authorized; 4,232,000 shares issued...................................... 42 42
Additional paid in capital................................................. 41,573 41,436
Retained earnings.......................................................... 25,999 24,250
Unearned ESOP shares....................................................... (2,502) (2,751)
Unearned Compensation (MSP)................................................ (1,432) (1,900)
Treasury stock - 794,000 and 691,000 shares, at cost....................... (10,547) (9,149)
Unrealized gain on securities available-for-sale, net of
deferred income taxes.................................................... 251 354
------- -------
Total stockholders' equity............................................. 53,384 52,282
------- -------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
CAPITAL............................................................ $406,253 $379,590
======= =======
</TABLE>
- ---------------------
* The consolidated balance sheet at September 30, 1996 has been taken from
the audited balance sheet at that date.
See notes to unaudited consolidated financial statements. 1
<PAGE>
TECHE HOLDING COMPANY
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS)
<TABLE>
<CAPTION>
For Three Months For Nine Months
Ended June 30, Ended June 30,
-------------------------------------- ---------------------------
1997 1996 1997 1996
------------------ ----------------- ----------------- ------------
<S> <C> <C> <C> <C>
INTEREST INCOME
Interest and fees on loans........................... $ 6,682 $5,764 $19,654 $ 16,587
Interest and dividends on investments................ 265 413 815 1,304
Interest on mortgage-backed securities............... 494 559 1,546 1,476
Other interest income................................ 45 44 111 103
----- ----- ------ -------
7,486 6,780 22,126 19,470
----- ----- ------ -------
INTEREST EXPENSE:
Deposits............................................. 3,334 2,876 9,644 8,694
Advances from Federal Home Loan Bank................. 865 706 2,703 1,411
----- ----- ------ -------
4,199 3,582 12,347 10,105
----- ----- ------ -------
NET INTEREST INCOME.................................... 3,287 3,198 9,779 9,365
PROVISION FOR LOAN LOSSES.............................. 60 75 180 225
----- ----- ------ -------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES...................................... 3,227 3,123 9,599 9,140
----- ----- ------ -------
NON-INTEREST INCOME:
Service charges and other............................ 586 398 1,646 1,058
Gain on sale of real estate owned.................... 12 4 21 10
Other income......................................... 51 215 148 308
----- ----- ------ -------
TOTAL NON-INTEREST INCOME.............................. 649 617 1,815 1,376
----- ----- ------ -------
GAIN ON SALE OF SECURITIES............................. 3 15 270 87
----- ----- ------ -------
NON-INTEREST EXPENSE:
Compensation and employee benefits................... 1,321 1,088 3,712 3,167
Occupancy expense.................................... 466 359 1,321 1,063
Marketing and professional........................... 171 152 573 434
Other operating expenses............................. 537 641 1,630 1,704
----- ----- ------ -------
Total non-interest expense....................... 2,495 2,240 7,236 6,368
----- ----- ------ -------
INCOME BEFORE INCOME TAXES............................. 1,384 1,515 4,448 4,235
----- ------ -------
INCOME TAXES........................................... 473 525 1,511 1,455
----- ----- ------ -------
NET INCOME............................................. $ 911 $ 990 $ 2,937 $ 2,780
===== ===== ====== =======
PRIMARY EARNINGS PER COMMON SHARE...................... $ .29 $ .27 $ .92 $ .72
===== ===== ====== =======
FULLY DILUTED EARNINGS PER
COMMON SHARE......................................... $ .28 N/A $ .89 N/A
===== ======
DIVIDENDS DECLARED PER COMMON SHARE.................... $ .125 $ .125 $ .375 $ .375
===== ===== ====== =======
</TABLE>
See notes to unaudited consolidated financial statements. 2
<PAGE>
TECHE HOLDING COMPANY
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
<TABLE>
<CAPTION>
For the Nine Months
Ended June 30,
-------------------------
1997 1996
------- --------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income ..................................................................... $ 2,934 $ 2,780
Adjustments to reconcile net income to net cash provided by
operating activities:
Accretion of discount and amortization of premium on investments
and mortgage-backed securities............................................. (158) (521)
Provision for loan losses.................................................... 180 225
(Gain) on sale of securities................................................. (270) (87)
Depreciation................................................................. 339 261
Accretion of deferred loan fees and other.................................... (77) (158)
Accretion of discounts on loans.............................................. (114) (130)
Payment of SAIF Special Assessment........................................... (1,824) --
Other items - net............................................................ 1,295 575
------ ------
Net cash provided by operating activities................................ 2,305 2,945
------ ------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of investment securities available for sale............................. (22) (648)
Purchase of mortgage-backed securities available for sale........................ (5,049) (12,075)
Proceeds from maturities of investment securities
available-for-sale............................................................. 2,050 3,000
Principal repayments on mortgage-backed securities available
for sale....................................................................... 5,799 5,004
Principal repayments on mortgage-backed securities held
to maturity.................................................................... -- 1,966
Principal payments on securities held to maturity................................ -- --
Loans originated, net of repayments.............................................. (25,559) (40,923)
Investment in FHLB stock......................................................... (165) (747)
Proceeds from sale of real estate owned.......................................... 15 340
Purchase of premises and equipment............................................... (1,936) (580)
Sales of investment securities available for sale................................ 857 935
------ ------
Net cash used in investing activities........................................ (24,010) (43,728)
------ ------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in deposits......................................................... 23,823 8,655
Net increase in FHLB advances.................................................... 3,574 43,336
Net decrease in advance payments by borrowers for
taxes and insurance............................................................ (307) (163)
Dividends paid................................................................... (1,185) (1,906)
Repurchase of common stock for MSP............................................... -- (2,320)
Purchase of common stock for treasury............................................ (1,398) (4,853)
------ ------
Net cash provided by financing activities.................................... 24,507 42,749
------ ------
NET INCREASE IN CASH............................................................... 2,802 1,966
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD..................................... 7,072 6,400
------ ------
CASH AND CASH EQUIVALENTS, END OF YEAR............................................. $ 9,874 $ 8,366
====== ======
</TABLE>
See notes to unaudited consolidated financial statements. 3
<PAGE>
TECHE HOLDING COMPANY
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - PRINCIPLES OF CONSOLIDATION
The consolidated financial statements as of and for the three and nine
month periods ended June 30, 1997 include the accounts of Teche Holding
Company (the "Corporation") and its subsidiary, Teche Federal Savings
Bank (the "Bank"). The Corporation's business is conducted principally
through the Bank. All significant intercompany accounts and
transactions have been eliminated in consolidation.
NOTE 2 - BASIS OF PRESENTATION
The accompanying consolidated financial statements were prepared in
accordance with instructions for Form 10-Q and, therefore, do not
include all information necessary for a complete presentation of
consolidated financial condition, results of operations, and cash flows
in conformity with generally accepted accounting principles. However,
all adjustments, consisting of normal recurring accruals, which, in the
opinion of management, are necessary for a fair presentation of the
consolidated financial statements have been included. The results of
operations for the periods ended June 30, 1997 and 1996 are not
necessarily indicative of the results which may be expected for the
entire fiscal year or any other period.
NOTE 3 - EARNINGS PER SHARE
Primary earnings per share for the three and nine month periods ended
June 30, 1997 and 1996 are calculated by dividing the net earnings for
the periods by the average shares outstanding of 3,183,000 and
3,720,000 shares for the three months ended June 30, 1997 and 1996, and
3,193,000 and 3,844,000 shares for the nine months ended June 30, 1997
and 1996, respectively.
Fully diluted earnings per share reflect the maximum dilution that
would have resulted from the exercise of all stock options. Fully
diluted earnings per share for the three and nine month periods ended
June 30, 1997 are calculated by dividing the net earnings for the
period by the total of average shares outstanding and the dilutive
securities of 3,300,000 and 3,310,000 shares for the three and nine
months periods ended June 30, 1997. Fully diluted earnings per share
were not reported in 1996 since the effect was not material.
NOTE 4 - SECURITIES RECLASSIFICATION
On November 15, 1995, the Financial Accounting Standards Board ("FASB")
issued implementation guidance with respect to SFAS No. 115 "Accounting
for Certain Investments in Debt and Equity Securities." This guidance
allowed a company to reassess its designation of securities as
held-to-maturity and, if deemed appropriate, make a one time
reclassification of held-to-maturity securities between November 15,
1995 and December 31, 1995. During this period, the Bank reclassified
mortgage-backed and investment securities with an amortized cost of
$42.0 million and a net unrealized gain of $1,018,000 ($672,000 net of
income taxes) from securities held-to-maturity to securities
available-for-sale.
4
<PAGE>
NOTE 5 - RECENT ACCOUNTING PRONOUNCEMENTS
Accounting for Transfers and Servicing of Financial Assets and
Extinguishments of Liabilities. The FASB issued SFAS No. 125,
"Accounting for Transfers and Servicing of Financial Assets and
Extinguishments of Liabilities" (SFAS No. 125) and SFAS No. 127,
"Deferral of the Effective Date of Certain Provisions of FASB
Statement No. 125" (SFAS No. 127) in June and December 1996,
respectively. SFAS No. 125 provides accounting and reporting standards
for transfers and servicing of financial assets and extinguishments of
liabilities. It requires entities to recognize servicing assets and
liabilities for all contracts to service financial assets, unless the
assets are securitized and all servicing is retained. The servicing
assets will be measured initially at fair value and will be amortized
over the estimated useful lives of the servicing assets. In addition,
the impairment of servicing assets will be recognized through a
valuation allowance. SFAS No. 125 also addresses the accounting and
reporting standards for securities lending, dollar-rolls, repurchase
agreements and similar transactions. The Company has prospectively
adopted SFAS No. 125 on January 1, 1997. However, in accordance with
SFAS No. 127, the Company will defer adoption of the standard as it
relates to securities lending, dollar-rolls, repurchase agreements and
similar transactions until January 1, 1998. The Company does not
expect the adoption of SFAS No. 125 to have a material impact on its
consolidated financial statements.
Earnings per Share. On March 3, 1997, the FASB issued SFAS No. 128,
"Earnings per Share" (SFAS No. 128) which is effective for financial
statements issued for periods ending after December 15, 1997. SFAS No.
128 replaces APB Opinion 15, "Earnings per Share," and simplifies the
computation of earnings per share (EPS) by replacing the presentation
of primary EPS with a presentation of basic EPS. In addition, the
Statement requires dual presentation of basic and diluted EPS by
entities with complex capital structures. Basic EPS includes no
dilution and is computed by dividing income available to common
stockholders by the weighted-average number of common shares
outstanding for the period. Diluted EPS reflects the potential
dilution of securities that could share in the earnings of an entity,
similar to fully diluted EPS. The computation of EPS will be
compatible with international standards, as the International
Accounting Standards Committee recently issued a comparable standard.
Comprehensive Income. In June 1997, the FASB issued SFAS No. 130,
"Reporting Comprehensive Income," effective for fiscal years beginning
after December 15, 1997. This statement requires that all items that
are required to be recognized under accounting standards as components
of comprehensive income be reported in a financial statement that is
displayed with the same prominence as other financial statements. This
statement does not require a specific format for that financial
statement but requires that an entity display an amount representing
total comprehensive income for the period in that financial statement.
This statement requires that an entity classify items of other
comprehensive income by their nature in a financial statement. For
example, other comprehensive income may include foreign currency items,
minimum pension liability adjustments, and unrealized gains and losses
on certain investments in debt and equity securities. In addition, the
accumulated balance of other comprehensive income must be displayed
separately from retained earnings and additional paid-in capital in the
equity section of a statement of financial position. Reclassification
of financial statements for earlier periods, provided for comparative
purposes, is required. The Company has not determined the impact that
the adoption of this new accounting standard will have on its
consolidated financial statements. The Company will adopt this
accounting standard on October 1, 1998, as required.
5
<PAGE>
TECHE HOLDING COMPANY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
---------------------------------------------
GENERAL
The Corporation's total assets at June 30, 1997 and September 30, 1996 totaled
$406.3 million and $379.6 million, respectively, an increase of 7.0%, primarily
due to increases in loans and deposits.
Securities available-for-sale totaled $41.1 million at June 30, 1997, which
represents a decrease of $3.4 million or 7.5% as compared to September 30, 1996
as the Corporation sold an investment in equity securities and the funds,
including those from maturing mortgage-backed securities and investments, were
invested in loans.
Loans receivable, net of the allowance for loan losses increased $25.6 million
or 8.1% due to loan originations.
Total deposits, after interest credited, at June 30, 1997 were $278.5 million
which represents an increase of 9.4% as compared to September 30, 1996.
Stockholders' equity increased slightly from September 30, 1996 to June 30,
1997, primarily as a result of net income offset somewhat by stock repurchases
and the payment of dividends.
COMPARISON OF EARNINGS FOR THE THREE AND NINE MONTHS ENDED JUNE 30, 1997
AND 1996
Net Income. The Corporation had net income of $911,000 and $2.9 million for the
three and nine months ended June 30, 1997 as compared to net income of $990,000
and $2.8 million for the three and nine month periods ended June 30, 1996,
respectively. The increase during nine month period was due primarily to the
sale of equity securities. Earnings, before the gain on the sale of equity
securities ("core earnings") for the nine months ended June 30, 1997 were $2.8
million. This increase in core earnings was primarily due to increased net
interest income offset somewhat by increased non-interest expenses.
Total Interest Income. Total interest income increased by $706,000 or 10.4% and
$2.7 million or 13.6% for the three and nine months ended June 30, 1997,
respectively, as compared to the same periods ending June 30, 1996 due primarily
to an increase in the average balances of the loans. The average yield on loans
decreased to 7.87% for the nine months ended June 30, 1997 from 8.06% in 1996.
This decrease was offset somewhat by an increase in interest and/or dividends
earned on mortgage-backed and investment securities available for sale.
Total Interest Expense. Total interest expense increased 17.2% and 22.2% for the
three and nine month periods due to an increase in market rates of interest and
average balances of deposits and borrowings.
Net Interest Income. Net interest income remained relatively stable, increasing
2.8% and 4.4% for the three and nine month periods ended June 30, 1997 as
compared to the same periods ended June 30, 1996.
Provision for Loan Losses. The provision for loan losses decreased $15,000 and
$45,000 for the three month and nine month periods.
6
<PAGE>
Management periodically estimates the likely level of losses to determine
whether the allowance for loan losses is adequate to absorb possible losses in
the existing portfolio. Based on these estimates, an amount is charged or
credited to the provision for loan losses and credited or charged to the
allowance for loan losses in order to adjust the allowance to a level determined
to be adequate to absorb anticipated future losses.
Management's judgment as to the level of losses on existing loans involves the
consideration of current and anticipated economic conditions and their potential
effects on specific borrowers, an evaluation of the existing relationships among
loans, known and inherent risks in the loan portfolio and the present level of
the allowance, results of examination of the loan portfolio by regulatory
agencies and management's internal review of the loan portfolio. In determining
the collectibility of certain loans, management also considers the fair value of
any underlying collateral.
Non-interest Income. Total non-interest income increased during both periods
primarily due to an increase in service fee income associated with increased
demand account volume.
Non-interest Expense. Total non-interest expense increased both periods due
primarily to increases in total compensation resulting from the ESOP and other
factors, including continued growth, and marketing fees for new products offered
by the Bank, and stationary, supplies, postage and other operating expenses.
Such increases were offset somewhat by decreased deposit insurance costs.
Gain on Sale of Securities. The Company experienced a gain of $270,000 on the
sale of securities during the three and nine months ended June 30, 1997 compared
to a gain of $87,000 during the same period ended June 30, 1996. The increases
during fiscal 1997 were due to the sale by the Company of certain equity
securities holdings which was not present in 1996.
Income Tax Expense. Income taxes increased during the periods primarily due to
an increase in income before income taxes.
7
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
Under current Office of Thrift Supervision ("OTS") regulations, the Bank
maintains certain levels of capital. On June 30, 1997, the Bank was in
compliance with its three regulatory capital requirements as follows:
<TABLE>
<CAPTION>
Amount Percent
------ -------
(In thousands)
<S> <C> <C>
Tangible capital...................................... $46,906 11.60%
Tangible capital requirement.......................... 6,073 1.50
------ -----
Excess over requirement............................... $40,833 10.10%
====== =====
Core capital.......................................... $46,906 11.60%
Core capital requirement.............................. 12,147 3.00
------ -----
Excess over requirement............................... $34,759 8.60%
====== =====
Risk based capital.................................... $49,560 21.93%
Risk based capital requirement........................ 18,076 8.00
------ -----
Excess over requirement............................... $31,484 13.93%
====== =====
</TABLE>
Management believes that under current regulations, the Bank will
continue to meet its minimum capital requirements in the foreseeable future.
Events beyond the control of the Bank, such as increased interest rates or a
downturn in the economy in areas in which the Bank operates could adversely
affect future earnings and as a result, the ability of the Bank to meet its
future minimum capital requirements.
The Bank's liquidity is a measure of its ability to fund loans, pay
withdrawals of deposits, and other cash outflows in an efficient, cost effective
manner. The Bank's primary source of funds are deposits and scheduled
amortization and prepayment of loan and mortgage-backed principal. During the
past several years, the Bank has used such funds primarily to fund maturing time
deposits, pay savings withdrawals, fund lending commitments, purchase new
investments, and increase liquidity. Historically, the Bank was able to fund its
operations internally but has recently borrowed funds from the Federal Home Loan
Bank of Dallas. As of June 30, 1997, such borrowed funds totaled $70.5 million.
Loan payments, maturing investments and mortgage-backed security prepayments are
greatly influenced by general interest rates, economic conditions and
competition.
In June 1997, the Corporation purchased property in Lafayette,
Louisiana for the purpose of establishing a branch office. Furthermore, the Bank
is in the process of renovating its branch office in Bayon Vista and plans to
establish an additional branch office in Franklin, Louisiana. Although the
impact of such capital expenditures cannot be determined at this time, these
expenditures are expected to increase the Bank's presence in its communities.
The Bank is required under federal regulations to maintain certain
specified levels of "liquid investments," which include certain United States
government obligations and other approved investments. Current regulations
require the Bank to maintain liquid assets of not less than 5% of its net
withdrawable accounts plus short term borrowings. Short term liquid assets must
consist of not less than 1% of such accounts and borrowings, which amount is
also included within the 5% requirement. Those levels may be changed from time
to time by the regulators to reflect current economic conditions. The Bank has
8
<PAGE>
maintained liquidity in excess of regulatory requirements. Furthermore, from
time to time, the Bank utilizes FHLB advances to the extent necessary to
maintain its liquidity.
Impact of Inflation
The consolidated financial statements of the Corporation and notes
thereto, presented elsewhere herein, have been prepared in accordance with GAAP,
which require the measurement of financial position and operating results in
terms of historical dollars without considering the change in the relative
purchasing power of money over time due to inflation. The impact of inflation is
reflected in the increased cost of the Corporation's operations. Unlike most
industrial companies, nearly all the assets and liabilities of the Corporation
are financial. As a result, interest rates have a greater impact on the
Corporation's performance than do the effects of general levels of inflation.
Interest rates do not necessarily move in the same direction or to the same
extent as the prices of goods and services.
Additional Key Operating Ratios
<TABLE>
<CAPTION>
At or For the Three Months At or For Nine Months
Ended Ended
June 30, June 30,
-------------- --------------
1997(1) 1996(1) 1997(1) 1996(1)
------- ------- ------- -------
(Unaudited)
<S> <C> <C> <C> <C>
Primary Earnings per Common Share:
Before Gain on Sale of Securities........... $0.29 $0.26 $0.86 $0.71
After Gain on Sale of Securities............ $0.29 $0.27 $0.92 $0.72
Fully Diluted Earnings per Common
Share:
Before Gain on Sale of Securities........... $0.28 N/A $0.83 N/A
After Gain on Sale of Securities............ $0.28 N/A $0.89 N/A
Annualized Return on Avg. Assets:
Before Gain on Sale of Securities........... 0.93% 1.10% 0.95% 1.06%
After Gain on Sale of Securities............ 0.93% 1.11% 1.01% 1.08%
Annualized Return on Avg. Equity:
Before Gain on Sale of Securities........... 6.88% 6.74% 7.04% 6.04%
After Gain on Sale of Securities............ 6.89% 6.81% 7.49% 6.17%
Net Interest Margin........................... 3.43% 3.42% 3.43% 3.42%
Other Expenses/Average Assets................. 2.55% 2.51% 2.48% 2.48%
Other Income/Average Assets................... 0.66% 0.69% 0.62% 0.54%
</TABLE>
- --------------------
(1) Annualized where appropriate.
Selected Financial Data
June 30, 1997 September 30, 1996
----------------- -------------------
Ratio of Equity to Assets.............. 13.1% 13.8%
Book Value per Common Share............ $15.53 $14.76
Non-performing Assets/Total
Assets................................. 0.27% 0.16%
9
<PAGE>
TECHE HOLDING COMPANY AND SUBSIDIARIES
PART II
ITEM 1. LEGAL PROCEEDINGS
Neither the Company nor the Bank was engaged in any legal proceeding
of a material nature at June 30, 1997. From time to time, the Company
is a party to routine legal proceedings in the ordinary course of
business, such as claims to enforce liens, condemnation proceedings on
properties in which the Company holds security interests, claims
involving the making and servicing of real property loans, and other
issues incident to the business of the Company. There were no lawsuits
pending or known to be contemplated against the Company at June 30,
1997 that would have a material effect on the operations or income of
the Company or the Bank, taken as a whole.
ITEM 2. CHANGES IN SECURITIES
Not applicable.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
Not applicable.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not applicable.
ITEM 5. OTHER MATERIALLY IMPORTANT EVENTS
Not applicable.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Exhibit 27 - Financial Data Schedule (in electronic filing
only)
(b) Reports on Form 8-K
None.
10
<PAGE>
TECHE HOLDING COMPANY AND SUBSIDIARIES
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
TECHE HOLDING COMPANY
Date: August 14, 1997 By: /s/Patrick O. Little
-------------------------------------
Patrick O. Little
President and Chief Executive Officer
(Principal Executive Officer)
Date: August 14, 1997 By: /s/J. L. Chauvin
-----------------
J. L. Chauvin
Vice President and Chief Financial Officer
(Principal Officer)
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-END> JUN-30-1997
<CASH> 9,874
<INT-BEARING-DEPOSITS> 631
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 341,786
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 341,786
<ALLOWANCE> 3,315
<TOTAL-ASSETS> 406,253
<DEPOSITS> 278,546
<SHORT-TERM> 52,000
<LIABILITIES-OTHER> 3,849
<LONG-TERM> 18,474
0
0
<COMMON> 42
<OTHER-SE> 53,342
<TOTAL-LIABILITIES-AND-EQUITY> 406,253
<INTEREST-LOAN> 19,654
<INTEREST-INVEST> 2,361
<INTEREST-OTHER> 111
<INTEREST-TOTAL> 22,126
<INTEREST-DEPOSIT> 9,644
<INTEREST-EXPENSE> 12,347
<INTEREST-INCOME-NET> 9,779
<LOAN-LOSSES> 180
<SECURITIES-GAINS> 270
<EXPENSE-OTHER> 7,236
<INCOME-PRETAX> 4,448
<INCOME-PRE-EXTRAORDINARY> 4,448
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,937
<EPS-PRIMARY> 0.92
<EPS-DILUTED> 0.89
<YIELD-ACTUAL> 2.67
<LOANS-NON> 1,087
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 3,182
<CHARGE-OFFS> 57
<RECOVERIES> 10
<ALLOWANCE-CLOSE> 3,315
<ALLOWANCE-DOMESTIC> 3,315
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
