SCHEDULE 14A
(Rule 14a-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934 (Amendment No. )
Filed by the registrant [X]
Filed by a party other than the registrant [ ]
Check the appropriate box:
[ ] Preliminary Proxy Statement [ ] Confidential, for use of the Commission
Only (as permitted by Rule 14a-6(e)(2))
[X] Definitive Proxy Statement
[ ] Definitive Additional Materials
[ ] Soliciting Material pursuant to ss. 240.14a-11(c) or ss. 240.14a-12
Teche Holding Company
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(Name of Registrant as Specified in Its Charter)
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(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of filing fee (Check the appropriate box):
[X] No fee required
[ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
(1) Title of each class of securities to which transaction applies:
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(2) Aggregate number of securities to which transaction applies:
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(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11. (set forth the amount on which the filing
fee is calculated and state how it was determined):
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(4) Proposed maximum aggregate value of transaction:
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(5) Total fee paid:
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[ ] Fee paid previously with preliminary materials.
[ ] Check box if any part of the fee is offset as provided by Exchange Act
Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number, or
the Form or Schedule and the date of its filing.
(1) Amount previously paid:
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(2) Form, Schedule or Registration Statement No.:
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(3) Filing Party:
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(4) Date Filed:
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<PAGE>
[TECHE HOLDING COMPANY LETTERHEAD]
December 10, 1999
Dear Fellow Stockholder:
On behalf of the Board of Directors and management of Teche Holding
Company, I cordially invite you to attend the Annual Meeting of Stockholders
(the "Meeting") to be held at the Alex P. Allain Memorial Library, 206 Iberia
Street, Franklin, Louisiana on January 19, 2000, at 2:00 p.m. The attached
Notice of Annual Meeting and Proxy Statement describe the formal business to be
transacted at the Meeting. During the Meeting, I will report on the operations
of the Company. Directors and officers of the Company, as well as a
representative of Deloitte & Touche LLP, certified public accountants, will be
present to respond to any questions stockholders may have.
The matters to be considered by stockholders at the Meeting are
described in the accompanying Notice of Meeting and Proxy Statement. The Board
of Directors of the Company has determined that the matters to be considered at
the Meeting are in the best interest of the Company and its stockholders. For
the reasons set forth in the Proxy Statement, the Board of Directors unanimously
recommends a vote "FOR" each matter to be considered.
WHETHER OR NOT YOU PLAN TO ATTEND THE MEETING, PLEASE SIGN AND DATE THE
ENCLOSED PROXY CARD AND RETURN IT IN THE ACCOMPANYING POSTAGE-PAID RETURN
ENVELOPE AS PROMPTLY AS POSSIBLE. This will not prevent you from voting in
person at the Meeting, but will assure that your vote is counted if you are
unable to attend the Meeting. YOUR VOTE IS VERY IMPORTANT.
Sincerely,
/s/ Patrick O. Little
-------------------------------------
Patrick O. Little
President and Chief Executive Officer
Teche Holding Company
<PAGE>
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TECHE HOLDING COMPANY
211 WILLOW STREET
FRANKLIN, LOUISIANA 70538
(337) 828-3212
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NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
TO BE HELD ON JANUARY 19, 2000
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NOTICE IS HEREBY GIVEN that the Annual Meeting of Stockholders (the
"Meeting") of Teche Holding Company (the "Company") will be held at Alex P.
Allain Memorial Library, 206 Iberia Street, Franklin, Louisiana on January 19,
2000, at 2:00 p.m. A proxy card and a proxy statement for the Meeting are
enclosed.
The Meeting is for the purpose of considering and acting upon the
following matters:
1. The election of four directors of the Company for terms of three years
each; and
2. The ratification of the appointment of Deloitte & Touche LLP as independent
auditors of the Company for the fiscal year ending September 30, 2000.
The transaction of such other matters as may properly come before the
Meeting or any adjournments thereof may also be acted upon. The Board of
Directors is not aware of any other business to come before the Meeting. Any
action may be taken on the foregoing proposals at the Meeting on the date
specified above or on any date or dates to which, by original or later
adjournment, the Meeting may be adjourned. Stockholders of record at the close
of business on November 22, 1999 are the stockholders entitled to vote at the
Meeting and any adjournments thereof.
EACH STOCKHOLDER, WHETHER OR NOT HE OR SHE PLANS TO ATTEND THE MEETING, IS
REQUESTED TO SIGN, DATE, AND RETURN THE ENCLOSED PROXY WITHOUT DELAY IN THE
ENCLOSED POSTAGE-PAID ENVELOPE. ANY PROXY GIVEN BY THE STOCKHOLDER MAY BE
REVOKED BY FILING WITH THE SECRETARY OF THE COMPANY A WRITTEN REVOCATION OR A
DULY EXECUTED PROXY BEARING A LATER DATE. ANY STOCKHOLDER PRESENT AT THE MEETING
MAY REVOKE HIS PROXY AND VOTE IN PERSON ON EACH MATTER BROUGHT BEFORE THE
MEETING. HOWEVER, IF YOU ARE A STOCKHOLDER WHOSE SHARES ARE NOT REGISTERED IN
YOUR OWN NAME, YOU WILL NEED ADDITIONAL DOCUMENTATION FROM YOUR RECORD HOLDER TO
VOTE IN PERSON AT THE MEETING.
BY ORDER OF THE BOARD OF DIRECTORS
/s/ W. Ross Little, Jr.
----------------------------------
W. Ross Little, Jr.
Secretary
Franklin, Louisiana
December 10, 1999
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IMPORTANT: THE PROMPT RETURN OF PROXIES WILL SAVE THE COMPANY THE EXPENSE OF
FURTHER REQUESTS FOR PROXIES IN ORDER TO INSURE A QUORUM AT THE MEETING. A
SELF-ADDRESSED ENVELOPE IS ENCLOSED FOR YOUR CONVENIENCE. NO POSTAGE IS REQUIRED
IF MAILED IN THE UNITED STATES.
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<PAGE>
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PROXY STATEMENT
OF
TECHE HOLDING COMPANY
211 WILLOW STREET
FRANKLIN, LOUISIANA 70538
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ANNUAL MEETING OF STOCKHOLDERS
JANUARY 19, 2000
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GENERAL
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This Proxy Statement is furnished in connection with the solicitation
of proxies by the Board of Directors of Teche Holding Company (the "Company") to
be used at the Annual Meeting of Stockholders of the Company which will be held
at the Alex P. Allain Memorial Library, 206 Iberia Street, Franklin, Louisiana
on January 19, 2000, at 2:00 p.m. local time (the "Meeting"). The accompanying
Notice of Annual Meeting of Stockholders and this Proxy Statement are being
first mailed to stockholders on or about December 10, 1999. The Company is the
parent company of Teche Federal Savings Bank (the "Bank").
At the Meeting, stockholders will consider and vote upon (i) the
election of four directors and (ii) the ratification of the appointment of
Deloitte & Touche LLP as independent auditor of the Company for the fiscal year
ending September 30, 2000. The Board of Directors of the Company (the "Board" or
the "Board of Directors") knows of no additional matters that will be presented
for consideration at the Meeting. Execution of a proxy, however, confers on the
designated proxy holder discretionary authority to vote the shares represented
by such proxy in accordance with their best judgment on such other business, if
any, that may properly come before the Meeting or any adjournment thereof.
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REVOCABILITY OF PROXIES
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Stockholders who execute proxies retain the right to revoke them at any
time. Unless so revoked, the shares represented by such proxies will be voted at
the Meeting and all adjournments thereof. Proxies may be revoked by written
notice to the Secretary of the Company at the address above or by the filing of
a later dated proxy prior to a vote being taken on a particular proposal at the
Meeting. A proxy will not be voted if a stockholder attends the Meeting and
votes in person. Proxies solicited by the Board of Directors will be voted in
accordance with the directions given therein. Where no instructions are
indicated, proxies will be voted "FOR" the nominees for directors set forth
below and "FOR" the other listed proposal. The proxy confers discretionary
authority on the persons named therein to vote with respect to the election of
any person as a director where the nominee is unable to serve, or for good cause
will not serve, and matters incident to the conduct of the Meeting.
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VOTING SECURITIES AND PRINCIPAL HOLDERS THEREOF
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Stockholders of record as of the close of business on November 22, 1999
(the "Voting Record Date"), are entitled to one vote for each share of common
stock of the Company (the "Common Stock") then held. As of the Voting Record
Date, the Company had 2,554,980 shares of Common Stock issued and outstanding.
<PAGE>
The articles of incorporation of the Company ("Articles of
Incorporation") provide that in no event shall any record owner of any
outstanding Common Stock which is beneficially owned, directly or indirectly, by
a person who beneficially owns in excess of 10% of the then outstanding shares
of Common Stock (the "Limit") be entitled or permitted to any vote with respect
to the shares held in excess of the Limit. Beneficial ownership is determined
pursuant to the definition in the Articles of Incorporation and includes shares
beneficially owned by such person or any of his or her affiliates or associates
(as such terms are defined in the Articles of Incorporation), shares which such
person or his or her affiliates or associates have the right to acquire upon the
exercise of conversion rights or options, and shares as to which such person and
his or her affiliates or associates have or share investment or voting power,
but shall not include shares beneficially owned by any employee stock ownership
plan or similar plan of the issuer or any subsidiary.
The presence in person or by proxy of at least a majority of the
outstanding shares of Common Stock entitled to vote (after subtracting any
shares held in excess of the Limit) is necessary to constitute a quorum at the
Meeting. With respect to any matter, any shares for which a broker indicates on
the proxy that it does not have discretionary authority as to such shares to
vote on such matter (the "Broker Non-Votes") will not be considered present for
purposes of determining whether a quorum is present. In the event there are not
sufficient votes for a quorum or to ratify any proposals at the time of the
Meeting, the Meeting may be adjourned in order to permit the further
solicitation of proxies.
As to the election of directors, the proxy being provided by the Board
enables a stockholder to vote for the election of the nominees proposed by the
Board, or to withhold authority to vote for one or more of the nominees being
proposed. Directors are elected by a plurality of votes of the shares present in
person or represented by proxy at a meeting and entitled to vote in the election
of directors.
As to the ratification of independent auditors, a stockholder may, by
checking the appropriate box: vote "FOR" the item, (ii) vote "AGAINST" the item,
or (iii) vote to "ABSTAIN" on such item. Unless otherwise required by law, all
other matters shall be determined by a majority of votes cast affirmatively or
negatively without regard to (a) Broker Non-Votes or (b) proxies marked
"ABSTAIN" as to that matter.
Persons and groups owning in excess of 5% of the Common Stock are
required to file certain reports regarding such ownership pursuant to the
Securities Exchange Act of 1934, as amended (the "1934 Act"). The following
table sets forth, as of the Voting Record Date, persons or groups who own more
than 5% of the Common Stock and the ownership of all executive officers and
directors of the Company as a group. Other than as noted below, management knows
of no person or group that owns more than 5% of the outstanding shares of Common
Stock at the Voting Record Date.
<TABLE>
<CAPTION>
Percent of Shares of
Amount and Nature of Common Stock
Name and Address of Beneficial Owner Beneficial Ownership Outstanding
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<S> <C> <C>
Teche Federal Savings Bank 175,402(1) 6.87%
Employee Stock Ownership Plan
211 Willow Street, Franklin, Louisiana 70538
All Directors and Executive Officers as a Group (11 persons) 611,427(2)(3) 21.39%
</TABLE>
(footnotes appear on following page)
-2-
<PAGE>
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(1) The Bank's Employee Stock Ownership Plan ("ESOP") purchased such shares
for the exclusive benefit of participants with funds borrowed from the
Company. These shares are held in a suspense account and will be
allocated among ESOP participants annually on the basis of compensation
as the ESOP debt is repaid. The Board of Directors has appointed a
committee consisting of Robert E. Mouton, Faye L. Ibert, J.L. Chauvin
and W. Ross Little to serve as the ESOP administrative committee ("ESOP
Committee") and Directors Biggs, Friedman and Olivier to serve as the
ESOP trustees ("ESOP Trustees"). The ESOP Committee or the Board
instructs the ESOP Trustees regarding investment of plan assets. The
ESOP Trustees must vote all shares allocated to participant accounts
under the ESOP as directed by participants. Unallocated shares and
shares for which no timely voting direction is received will be voted
by the ESOP Trustees as directed by the ESOP Committee. As of the
Voting Record Date, 146,100 shares had been allocated under the ESOP to
participant accounts (which are excluded from the total).
(2) Includes shares of Common Stock held directly as well as by spouses or
minor children, in trust and other indirect ownership, over which
shares the individuals effectively exercise sole voting and investment
power, unless otherwise indicated. Includes 303,858 shares of Common
Stock that may be acquired pursuant to the exercise of options which
were exercisable within 60 days of the Voting Record Date. Excludes
30,130 shares of Common Stock held by the Teche Federal Savings Bank
Management Stock Plan, which certain individuals in the group exercise
shared voting and dispositive power over, as trustee. Such individuals
disclaim beneficial ownership with respect to such shares held in a
fiduciary capacity.
(3) Excludes 175,402 unallocated shares of Common Stock held under the ESOP
for which certain individuals in this group serve as members of the
ESOP Committee or as an ESOP Trustee. Such individuals disclaim
beneficial ownership with respect to such shares held in a fiduciary
capacity.
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SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE
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The Common Stock of the Company is registered pursuant to Section 12(g)
of the Securities Exchange Act of 1934 ("Exchange Act"). The executive officers
and directors of the Company and beneficial owners of greater than 10% of the
Company's Common Stock ("10% beneficial owners") are required to file reports on
Forms 3, 4, and 5 with the Securities and Exchange Commission ("SEC") disclosing
changes in beneficial ownership of the Common Stock. Based solely on the
Company's review of Forms 3, 4, and 5 filed by officers, directors and 10%
beneficial owner of Common Stock, no executive officer, director or 10%
beneficial owner of Common Stock failed to file such ownership reports on a
timely basis during the fiscal year ended September 30, 1999.
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INFORMATION WITH RESPECT TO NOMINEES FOR DIRECTOR, DIRECTORS
CONTINUING IN OFFICE, AND EXECUTIVE OFFICERS
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Election of Directors
The Articles of Incorporation require that the Board of Directors be
divided into three classes, each of which contains approximately one-third of
the members of the Board. The directors are elected by the stockholders of the
Company for staggered three-year terms, or until their successors are elected
and qualified. Four directors will be elected at the Meeting to serve for
three-year terms or until a successor has been elected and qualified.
-3-
<PAGE>
Henry L. Friedman, Robert Earl Mouton, Christian Olivier, Jr. and W.
Ross Little, Jr., have been nominated by the Board of Directors to serve as
directors. Such nominated individuals are currently members of the Board. These
individuals have been nominated for three-year terms to expire in 2003. If a
nominee is unable to serve, the shares represented by all valid proxies will be
voted for the election of such substitute as the Board of Directors may
recommend or the size of the Board may be reduced to eliminate the vacancy. At
this time, the Board knows of no reason why a nominee might be unavailable to
serve.
The following table sets forth the nominees and the directors
continuing in office, their name, age, the year they first became a director of
the Company or the Bank, the expiration date of their current term as a
director, and the number and percentage of shares of the Common Stock
beneficially owned as of the Voting Record Date. Each director of the Company is
also a member of the Board of Directors of the Bank.
<TABLE>
<CAPTION>
Year First Current Shares of
Elected or Term to Common Stock Percent
Name Age(1) Appointed Expire Beneficially Owned (2) of Class
- ---- --- --------- --------- --------
<S> <C> <C> <C> <C> <C>
Board Nominees for Term to Expire in 2003
Henry L. Friedman 48 1979 2000 29,408(3)(4)(5) 1.15%
Robert Earl Mouton 64 1989 2000 43,408(4)(6)(7) 1.68%
Christian Olivier, Jr. 88 1993 2000 17,011(3)(4)(8) *
W. Ross Little, Jr. 47 1997 2000 51,032(7) 1.98%
THE BOARD OF DIRECTORS RECOMMENDS THAT ITS NOMINEES BE
ELECTED AS DIRECTORS
Directors Continuing in Office
Patrick O. Little 43 1989 2001 180,657(9)(10) 6.84%
Donelson T. Caffery, Jr. 49 1994 2001 22,774(3)(11) *
Virginia Kyle Hine 78 1981 2001 16,773(3) *
W. Ross Little 84 1963 2002 151,926(9)(12) 5.76%
Mary Coon Biggs 57 1982 2002 25,211(3)(4)(13) *
Thomas F. Kramer, M.D. 70 1987 2002 35,573(3)(14) 1.39%
</TABLE>
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* Less than 1%
(1) As of September 30, 1999.
(footnotes are continued on following page)
-4-
<PAGE>
(footnotes continued from prior page)
(2) An individual is considered to beneficially own shares of Common Stock if
he or she directly or indirectly has or shares (1) voting power, which
includes the power to vote or to direct the voting of the shares; or (2)
investment power, which includes the power to dispose or direct the
disposition of the shares. Unless otherwise indicated, a director has sole
voting power and sole investment power with respect to the indicated
shares.
(3) Includes 10,157 shares of Common Stock which the individual may acquire
pursuant to the exercise of options that become exercisable within 60 days
of the Voting Record Date.
(4) Excludes 175,402 unallocated shares of Common Stock held under the ESOP for
which such individual serves as an ESOP Trustee or is a member of the ESOP
Committee, and as such maintains shared voting and dispositive power over
such shares. Beneficial ownership is disclaimed with respect to such ESOP
shares held in a fiduciary capacity.
(5) Includes 5,118 shares owned by Mr. Friedman's wife and 1,800 shares held in
trust for Mr. Friedman's minor children under the Uniform Gift to Minors
Act ("UGMA"), which Mr. Friedman may be deemed to beneficially own.
(6) Includes 2,985 shares held jointly with Mr. Mouton's wife, with whom voting
and dispositive power is shared.
(7) Includes 24,546 shares of Common Stock which the individual may acquire
pursuant to the exercise of options that become exercisable within 60 days
of the Voting Record Date.
(8) Includes 4,500 shares held jointly with Mr. Olivier's wife and children,
with whom voting and dispositive power is shared.
(9) Includes 84,640 shares of Common Stock which the individual may acquire
pursuant to the exercise of options that become exercisable within 60 days
of the Voting Record Date.
(10) Includes 12,887 shares owned by Mr. Little's wife and 17,148 shares held in
trust for Mr. Little's minor children, which Mr. Little may be deemed to
beneficially own. Includes 11,319 shares of Common Stock allocated to Mr.
Little under the ESOP.
(11) Includes 1,212 shares held in trust for Mr. Caffery's children, which Mr.
Caffery may be deemed to beneficially own.
(12) Includes 15,425 shares owned by Mr. Little's wife, which Mr. Little may be
deemed to beneficially own.
(13) Includes 10,200 shares held jointly with Ms. Biggs' husband, with whom
voting and dispositive power is shared.
(14) Includes 5,000 shares owned by Dr. Kramer's wife, which Dr. Kramer may be
deemed to beneficially own.
The following table sets forth the non-director executive officers of
the Company, their name, age, the year they first became an officer of the
Company or the Bank, and their current position with the Company. Executive
officers serve for a one-year term at the determination of the Board of
Directors.
Year First
Appointed as Position with
Name of Individual Age(1) Officer(2) the Company
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J.L. Chauvin 44 1985 Vice President and
Treasurer
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(1) As of September 30, 1999.
(2) Refers to the year the individual first became an officer of the Company.
-5-
<PAGE>
Biographical Information
The business experience of each nominee for director, director and
executive officer of the Company is set forth below. All persons have held their
present positions for five years unless otherwise stated.
W. Ross Little has been the Chairman of the Board of the Company since
its formation in December 1994, and has been with the Bank for 44 years in
various capacities including manager, president, chief executive officer and
chairman of the Bank. Mr. Little is the father of Patrick O. Little and W. Ross
Little, Jr.
Mary Coon Biggs is a senior partner of the law firm Biggs, Trowbridge,
Supple, Cremaldi & Curet, L.L.P. See "-- Certain Relationships and Related
Transactions." Mrs. Biggs has been associated with the firm or its predecessors
since 1969 and has been a partner since 1975. She served as a member of The St.
Mary Parish Library Board of Control for 17 years. While a member of the Board
of Control she served a term as its President and was the 1992 recipient of the
award for outstanding library trustee in the State of Louisiana. Also, Mrs.
Biggs is a member of various professional, civic, historical and cultural
organizations.
Thomas F. Kramer, M.D. retired from his medical practice in 1993. He
was a specialist in obstetrics and gynecology and is a member of various medical
organizations. Dr. Kramer is a member and past president of the St. Mary Chapter
of the Louisiana Landmark Society and an officer of the Rotary Club of Franklin.
He serves on the Council of the Shadows on the Teche, a property of the National
Trust for Historic Preservation. He has received the distinguished service award
from the Boy Scouts of America and in 1994 was the recipient of the Golden
Service Award of the West St. Mary Chamber of Commerce.
Henry L. Friedman is currently president of both Meyer's Shoe Store,
Inc., Franklin, Louisiana and H. & L. Realty Company, Inc., Franklin, Louisiana.
Mr. Friedman is also Chairman of the Franklin City Planning Commission, and he
is a member and past president of both the West St. Mary Chamber of Commerce and
the Rotary Club of Franklin.
Robert Earl Mouton has been employed by the Bank since 1983 and has
been an Executive Vice President since 1985. Mr. Mouton is also a past president
of the Beaver Club of Lafayette.
Christian L. Olivier, Jr. is a retired general manager of a retail
department store in Houma, Louisiana. He serves as President of the Terrebonne
Historical and Cultural Society. Mr. Olivier served as Chairman of the Board of
Community Homestead Association prior to its merger with Teche Federal.
W. Ross Little, Jr. was appointed Marketing Director and Secretary of
the Company in June 1995 and January 1996, respectively, and was elected to the
Board of Directors of the Bank in August 1999. W. Ross Little, Jr. served as a
practicing attorney in Lafayette Parish from 1990 to 1994. He previously served
as Secretary of the Bank from August 1979 to November 1995 and Treasurer of the
Bank from January 1980 to November 1994. He is the son of W. Ross Little and
brother of Patrick O. Little.
Patrick O. Little is the President and Chief Executive Officer of the
Company and the Bank and has been employed by the Bank since 1980. Mr. Little is
also chairman of the Board of the Bank. Mr. Little has served as President of
the Bank since January 1991 and is a board member of the Council for a Better
Louisiana and United Way of South Louisiana, as well as a past board member of
the Rotary
-6-
<PAGE>
Club of Franklin and the West St. Mary Chamber of Commerce. Mr. Little serves on
various committees of America's Community Bankers. He also serves on the Council
of the Shadows on the Teche. Mr. Little is the son of W. Ross Little and brother
of W. Ross Little, Jr.
Donelson T. Caffery, Jr. is president and owner of Columbia Chevrolet &
Toyota, Franklin, Louisiana. He is also a trustee and president of the St. Mary
Parish Library Board of Control. He is a member of the vestry of the St. Mary's
Episcopal Church, past board member of the West St. Mary Chamber of Commerce,
past president of the St. Mary Chapter of the Landmark Society, past board
member of the Rotary club of Franklin and a member of various trade
organizations.
Virginia Kyle Hine received the civic award of the Greater New Iberia
Chamber of Commerce in 1972. She is a past board member of the Episcopal School
of Acadiana and the Louisiana Landowners Association and is a current member of
the board of directors of the Central Oil Co. as well as past chairman of the
Council of the Shadows on the Teche, a property of the national trust for
historic preservation.
J. L. Chauvin has served as Vice President and Treasurer of the Company
since its incorporation in December 1994. Mr. Chauvin has been employed by the
Bank since 1983 and was promoted to Treasurer in November of 1994 and to Senior
Vice President in January of 1999. Mr. Chauvin is a member of the Louisiana
Society and American Institute of Certified Public Accountants.
Stockholder Nominations
Pursuant to the Articles of Incorporation, nominations, other than
those made by or at the direction of the Board of Directors, shall be made
pursuant to timely notice in writing to the Secretary of the Company as set
forth in the Articles of Incorporation. To be timely, a stockholder's notice
shall be delivered to, or mailed and received at, the principal executive
offices of the Company not less than 60 days prior to the anniversary date of
the immediately preceding annual meeting of stockholders of the Company;
provided, however, that with respect to the first scheduled annual meeting,
notice by the stockholder must be so delivered or received no later than the
close of business on the tenth day following the day on which notice of the date
of the scheduled meeting was mailed or published and must be delivered or
received no later than the close of business on the fifth day preceding the date
of the meeting. Such stockholder's notice shall set forth all the information
required by the Company's Articles of Incorporation. At the request of the Board
of Directors, any person nominated by, or at the direction of, the Board for
election as a director at an annual meeting shall furnish to the Secretary of
the Company that information required to be set forth in a stockholder's notice
of nomination which pertains to the nominee.
The Board of Directors may reject any nomination by a stockholder not
timely made in accordance with the requirements of the Articles of
Incorporation. If the presiding officer at the meeting determines that a
nomination was not made in accordance with the terms of the Articles of
Incorporation, he shall so declare at the annual meeting, and the defective
nomination shall be disregarded.
Meetings and Committees of the Board of Directors
The Company's Board of Directors conducts its business through meetings
of the Board and through activities of its committees. During the fiscal year
ended September 30, 1999, the Board of Directors held 12 regular meetings and
one special meeting. No director attended fewer than 75% of the total meetings
of the Board of Directors of the Company and committees listed below on which
such director served during the fiscal year ended September 30, 1999.
-7-
<PAGE>
The Audit Committee, a standing committee, is comprised of Directors
Kramer, Biggs and Caffery. The Audit Committee recommends engagement of
independent auditors, receives the internal and independent audit reports and
recommends appropriate action. The Audit Committee met three times in fiscal
1999.
The Nominating Committee consists of the entire Board of Directors. The
Nominating Committee is not a standing committee but meets on an annual basis to
nominate persons to serve on the Board of Directors of the Company.
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DIRECTOR AND EXECUTIVE OFFICER COMPENSATION
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Director Compensation
Director Fees. Non-employee directors of the Company and Bank receive
director fees of $500 and $400 per month, respectively. During fiscal year 1999
each non-employee member of the Board of Directors also received a fee of $100
per committee meeting attended. Advisory directors of the Bank are paid $300 per
quarter for meetings attended. For the fiscal year ended September 30, 1999,
total fees paid by the Company and the Bank to directors were $74,300.
Stock Awards. On October 25, 1995, the stockholders of the Company
approved the Teche Holding Company 1995 Stock Option Plan ("1995 Stock Option
Plan") and the Teche Federal Savings Bank Management Stock Plan and Trust
("Management Stock Plan"). Pursuant to the terms of the 1995 Stock Option Plan,
each non-employee director received on the date of stockholder approval options
to purchase 12,696 shares of Common Stock. Under the Management Stock Plan, the
same non-employee directors received 6,771 shares of restricted stock on the
date of stockholder approval. The options and restricted stock are exercisable
at a rate of 20% one year from the date of grant and 20% annually thereafter.
Executive Compensation
Summary Compensation Table. The following table sets forth the
compensation paid to the Company's chief executive officer during the fiscal
year ended September 30, 1997. All compensation paid to directors, officers and
employees is paid by the Bank. No other executive officer received cash
compensation in excess of $100,000 during the fiscal year ended September 30,
1997.
<TABLE>
<CAPTION>
Long Term Compensation
Annual Compensation(1) Awards
-------------------------------------- -------------------------
Securities
Restricted Underlying All
Name and Other Annual Stock Options/ Other
Principal Position Year Salary Bonus(3) Compensation Awards($)(2) SARs(#) Compensation
- ------------------ ---- ------ -------- ------------ ------------ ------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Patrick O. Little, 1999 $142,423 $21,462 $ -- -- -- $33,472(4)
President and CEO 1998 142,068 23,678 -- -- -- $33,970(5)
1997 139,373 22,870 -- -- -- $46,995(6)
</TABLE>
- --------------
(1) All compensation set forth in the table was paid by the Bank.
(2) On September 30, 1999, Mr. Little had 8,464 shares of restricted stock in
the aggregate which have a total value of $128,018 (calculated by
multiplying the aggregate number of restricted stock by the Common Stock's
closing market
-8-
<PAGE>
price as of the last day of the fiscal year). Dividends will be paid on the
restricted stock awarded and are accrued and held in arrears until the
restricted stock for which dividends were paid become vested.
(3) Payments made pursuant to Bank's Incentive Bonus Plan - See "- Other
Compensation - Incentive Bonus Plans."
(4) Includes 2,213 shares of Common Stock allocated under the ESOP as of
September 30, 1999 with a market value as of September 30, 1999 of $15.125
per share.
(5) Includes 2,246 shares of Common Stock allocated under the ESOP as of
September 30, 1998 with a market value as of September 30, 1998 of $15.125
per share.
(6) Includes 2,278 shares of Common Stock allocated under the ESOP as of
September 30, 1997 with a market value as of September 30, 1997 of $20.63
per share.
Employment Agreement. The Bank is party to an employment agreement with
Patrick O. Little, President and Chief Executive Officer of the Bank
("Agreement"). The Agreement has a term of three years. Mr. Little's base
compensation under the agreement is currently $142,068. The Agreement provides a
disability benefit of 100% of compensation for a period of one year and 65%
thereafter for the remaining term of the Agreement reduced by other disability
benefits furnished by the Bank. The Agreement may be terminated by the Bank for
"just cause" as defined in the Agreement. If the Bank terminates Mr. Little
without just cause, Mr. Little will be entitled to a continuation of his salary
from the date of termination through the remaining term of the Agreement. In the
event of involuntary termination of employment in connection with, or within one
year after, any change in control of the Bank, Mr. Little will be paid a lump
sum amount equal to 2.99 times his base salary. If a change in control had
occurred at September 30, 1999, Mr. Little would have been entitled to a lump
sum payment of approximately $793,000 if he were terminated in connection with
such change in control. The aggregate payments under such provision would be an
expense to the Bank, thereby reducing net income and the Bank's capital by that
amount. The Agreement may be renewed annually by the Board of Directors upon a
determination of satisfactory performance within the Board's sole discretion.
Compensation Committee Interlocks and Insider Participation
The Compensation Committee of the Bank during the year ended September
30, 1999 consisted of Directors Hine, Kramer and Friedman.
Report of the Compensation Committee on Executive Compensation
1999 Report of the Compensation Committee on Executive Compensation
The Bank Compensation Committee meets annually to review compensation
paid to the chief executive officer. The Committee reviews various published
surveys of compensation paid to employees performing similar duties for
depository institutions and their holding companies, with a particular focus on
the level of compensation paid by comparable stockholder institutions in and
around the Bank's market areas, including institutions with total assets of
between $300 million and $500 million. Although the Committee does not
specifically set compensation levels for executive officers based on whether
particular financial goals have been achieved by the Bank, the Committee does
consider the overall profitability of the Bank when making these decisions. The
Compensation Committee has the following goals for compensation programs
impacting the executive officers of the Company and the Bank:
o to provide motivation for the executive officers to enhance
stockholder value by linking their compensation to the future
value of the Company's stock;
o to retain the executive officers who have led the Company to
build its existing market franchise and to allow the Bank to
attract high quality executive officers in the future by
providing total compensation opportunities which are consistent
with competitive norms of the industry and the Company's level of
performance; and
-9-
<PAGE>
o to maintain reasonable fixed compensation costs by targeting base
salaries at a competitive average.
During the year ended September 30, 1999, Patrick O. Little, President
and CEO received an increase in his base salary from $142,068 to $146,330 due to
his continued leadership in the management of the Company and the Bank.
Additionally, Mr. Little has been previously awarded stock options and
restricted stock awards under the Stock Option Plan and the Management Stock
Plan. Such awards are intended to provide incentive to the President for
implementation of a business plan that will enhance shareholder value in the
intermediate and long term. The Committee will consider the annual compensation
paid to the presidents and chief executive officers of publicly owned financial
institutions nationally, in the State of Louisiana and surrounding Southwestern
states with assets of between $300 million and $500 million and the individual
job performance of such individual in consideration of its specific salary
increase decision with respect to compensation to be paid to the president and
chief executive officers in the future.
Compensation Committee:
Virginia Kyle Hine
Dr. Thomas F. Kramer
Henry L. Friedman
Other Compensation
Incentive Bonus Plan. The Bank maintains a discretionary cash incentive
bonus plan for the benefit of all employees and another plan for senior
management. Under the employee incentive plan, a cash bonus may be paid to all
employees as a percentage of the employee's monthly base salary. Such bonus
amount is calculated as the product of the ratio of core earnings to average
assets of the Bank multiplied by 100, times each employee's monthly base salary.
Senior management participates in a discretionary bonus plan providing for a
similar bonus award in addition to their participation in the employee bonus
plan. Awards under these plans in the aggregate for the 1999, 1998 and 1997
fiscal years were $268,734, $247,471, and $237,018, respectively. For payments
to Patrick Little, see " -- Executive Compensation - Summary Compensation
Table."
1995 Stock Option Plan. The Company's Board of Directors has adopted
the 1995 Stock Option Plan, which was approved by the Company's stockholders on
October 25, 1995.
<TABLE>
<CAPTION>
AGGREGATED OPTION/SAR EXERCISES IN LAST FISCAL YEAR AND FY-END
OPTION/SAR VALUES
- --------------------------- ----------------- ---------------- ------------------------------ -------------------------------
Number of Securities
Underlying Unexercised Value of Unexercised
Shares Options/SARs in-the-Money Options/SARs
Acquired on Value at Fiscal Year-End at Fiscal Year-End
Exercise Realized (#) ($)
Name (#) ($) Exercisable/Unexercisable Exercisable/Unexercisable(1)
- --------------------------- ----------------- ---------------- ------------------------------ -------------------------------
<S> <C> <C> <C> <C>
Patrick O. Little 0 $0 84,640/21,160 $100,510/$25,128
</TABLE>
- -------------
(1) Based on an exercise price of $13.94 and the closing price of the Common
Stock on September 30, 1999 of $15.125.
-10-
<PAGE>
Pension Plan. The Bank is a participating employer in a
multiple-employer pension plan sponsored by the Financial Institutions
Retirement Fund (the "Pension Plan"). All full-time employees of the Bank are
eligible to participate after one year of service and attainment of age 21. A
qualifying employee becomes fully vested in the Pension Plan upon completion of
five years service or when the normal retirement age of 65 is attained. The
Pension Plan is intended to comply with the Employee Retirement Income Security
Act of 1974, as amended ("ERISA").
The Pension Plan provides for monthly payments to each participating
employee at normal retirement age. The annual allowance payable under the
Pension Plan is equal to 2% of the average annual salary (excluding overtime and
bonuses) during benefits service multiplied by the number of years of credited
service. A participant who is vested in the Pension Plan may take an early
retirement and elect to receive a reduced monthly benefit beginning as early as
age 45. The Pension Plan also provides for payments in the event of disability
or death. At September 30, 1999, Mr. Patrick Little had 19 years of credited
service under the Pension Plan. Total Bank pension expense for each of fiscal
years 1999, 1998 and 1997, amounted to $0.
The following table shows the estimated annual benefits payable under
the Pension Plan based on the respective employee's years of benefit service and
applicable average annual salary, as calculated under the Pension Plan. Benefits
under the Pension Plan are not subject to offset for Social Security benefits.
Years of Benefit Service
------------------------------------------------------------
15 20 25 30 35
------- ------ ------ ------ ------
$ 20,000.......... $ 6,000 $ 8,000 $10,000 $12,000 $14,000
40,000.......... 12,000 16,000 20,000 24,000 28,000
60,000.......... 18,000 24,000 30,000 36,000 42,000
80,000.......... 24,000 32,000 40,000 48,000 56,000
100,000.......... 30,000 40,000 50,000 60,000 70,000
120,000.......... 36,000 48,000 60,000 72,000 84,000
150,000.......... 45,000 60,000 75,000 90,000 105,000
- --------------------------------------------------------------------------------
STOCK PERFORMANCE GRAPH
- --------------------------------------------------------------------------------
Set forth below is a performance graph for the Common Stock for the
period from April 19, 1995 through September 30, 1999. The performance graph, as
prepared for the Company by Media General Financial Services, Inc., compares the
cumulative total shareholder return on the Common Stock with (i) the Media
General -- AMEX Market Index, which takes into account the cumulative total
shareholder return on stocks included in the American Stock Exchange, Inc.
("AMEX"), and (ii) the SIC Industry Index, which takes into account the
cumulative total shareholder return on the stocks of companies with the same SIC
code as the Company. Comparison with the Media General -- AMEX Market Index, and
the SIC Industry Index assumes the investment of $100 as of April 19, 1995. The
cumulative total return for the indices and for the Company is computed with the
reinvestment of dividends at the frequency with which dividends, if any, were
paid during the period.
There can be no assurance that the Company's future stock performance
will be the same or similar to the historical stock performance shown in the
graph below. The Company neither makes nor endorses any predictions as to stock
performance.
-11-
<PAGE>
[OBJECT OMITTED]
<TABLE>
<CAPTION>
==============================================================================================================
4/19/95 9/29/95 9/30/96 9/30/97 9/30/98 9/30/99
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Teche Holding Company $100.00 $120.56 $122.87 $193.60 $145.86 $150.75
- --------------------------------------------------------------------------------------------------------------
Media General--AMEX Market Index $100.00 $113.42 $118.05 $143.55 $125.39 $146.02
- --------------------------------------------------------------------------------------------------------------
SIC Industry Index $100.00 $122.62 $144.60 $239.13 $218.83 $215.14
==============================================================================================================
</TABLE>
- --------------------------------------------------------------------------------
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
- --------------------------------------------------------------------------------
Except as indicated below, no directors, executive officers, or
immediate family members of such individuals were engaged in transactions with
the Bank or any subsidiary involving more than $60,000 during the year ended
September 30, 1999. Furthermore, the Bank had no "interlocking" relationships
existing during the year ended September 30, 1999 in which (i) any executive
officer is a member of the Board of Directors/Trustees of another entity, one of
whose executive officers is a member of the Bank's Board of Directors, or where
(ii) any executive officer is a member of the compensation committee of another
entity, one of whose executive officers is a member of the Bank's Board of
Directors.
Director Mary Coon Biggs is a senior partner in the law firm Biggs,
Trowbridge, Supple, Cremaldi & Curet, L.L.P. located in Franklin, Louisiana.
Biggs, Trowbridge, Supple, Cremaldi & Curet, L.L.P. has rendered to the Bank a
variety of legal services, primarily in connection with ordinary and foreclosure
proceedings; commercial law matters; title examinations; document preparation;
and correspondence with auditors. During the fiscal year ended September 30,
1999 Biggs, Trowbridge, Supple, Cremaldi & Curet, L.L.P. received approximately
$70,200 in fees for all legal services rendered to the Bank.
The Bank, like many financial institutions, has followed a policy of
granting various types of loans to officers, directors, and employees. All loans
to executive officers and directors of the Bank have been made in the ordinary
course of business and on substantially the same terms and conditions, including
interest rates and collateral, as those prevailing at the time for comparable
transactions with the Bank's other customers, and do not involve more than the
normal risk of collectibility nor present other
-12-
<PAGE>
unfavorable features. All loans by the Bank to its directors and executive
officers are subject to OTS regulations restricting loans and other transactions
with affiliated persons of the Bank.
- --------------------------------------------------------------------------------
RATIFICATION OF INDEPENDENT AUDITOR
- --------------------------------------------------------------------------------
Deloitte & Touche LLP was the Company's independent auditor for the
1999 fiscal year. The Board of Directors has approved the selection of Deloitte
& Touche LLP as its auditor for the 2000 fiscal year, subject to ratification by
the Company's stockholders. A representative of Deloitte & Touche LLP is
expected to be present at the Meeting to respond to stockholders' questions and
will have the opportunity to make a statement if he or she so desires.
Ratification of the appointment of the auditor requires the approval of
a majority of the votes cast by the stockholders of the Company at the Meeting.
The Board of Directors recommends that stockholders vote "FOR" the ratification
of the appointment of Deloitte & Touche LLP as the Company's auditor for the
2000 fiscal year.
- --------------------------------------------------------------------------------
ANNUAL REPORTS AND FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
A copy of the Company's Annual Report on Form 10-K for the fiscal year
ended September 30, 1999 will be furnished without charge to stockholders as of
the record date upon written request to the secretary, Teche Holding Company,
211 Willow Street, Franklin, Louisiana, 70538.
The Company's Annual Report to Stockholders, including financial
statements, will be mailed with this Proxy Statement on December 10, 1999 to all
stockholders of record as of the close of business on November 22, 1999. Any
stockholder who has not received a copy of such Annual Report may obtain a copy
by writing to the Secretary of the Company. Such Annual Report is not to be
treated as a part of the proxy solicitation material or as having been
incorporated herein by reference.
- --------------------------------------------------------------------------------
OTHER MATTERS
- --------------------------------------------------------------------------------
The Board of Directors is not aware of any business to come before the
Meeting other than those matters described above in this Proxy Statement.
However, if any other matters should properly come before the Meeting, it is
intended that proxies in the accompanying form will be voted in respect thereof
in accordance with the judgment of the persons named in the accompanying proxy.
The cost of soliciting proxies will be borne by the Company.
- --------------------------------------------------------------------------------
STOCKHOLDER PROPOSALS
- --------------------------------------------------------------------------------
In order to be eligible for inclusion in the Company's proxy materials
for next year's Annual Meeting of Stockholders, any stockholder proposal to take
action at such meeting must be received at the Company's executive offices at
211 Willow Street, Franklin, Louisiana 70538, no later than August 12, 2000 and
meet the applicable regulatory requirements.
-13-
<PAGE>
In the event the Company receives notice of a stockholder proposal to
take action at next year's annual meeting of stockholders that is not submitted
for inclusion in the Company's proxy material, or is submitted for inclusion but
is properly excluded from the proxy material, the persons named in the proxy
sent by the Company to its stockholders intend to exercise their discretion to
vote on the stockholder proposal in accordance with their best judgment if
notice of the proposal is not received at the Company's main office by November
20, 2000. The Articles of Incorporation provide that if notice of a stockholder
proposal to take action at next year's annual meeting is not received at the
Company's main office by November 20, 2000, the proposal will not be eligible
for presentation at that meeting.
BY ORDER OF THE BOARD OF DIRECTORS
/s/ W. Ross Little, Jr.
----------------------------------
W. Ross Little, Jr.
Secretary
Franklin, Louisiana
December 10, 1999
-14-
<PAGE>
- --------------------------------------------------------------------------------
TECHE HOLDING COMPANY
211 WILLOW STREET
FRANKLIN, LOUISIANA 70538
(337) 828-3212
- --------------------------------------------------------------------------------
ANNUAL MEETING OF STOCKHOLDERS
January 19, 2000
- --------------------------------------------------------------------------------
The undersigned hereby appoints the Board of Directors of Teche Holding
Company (the "Company"), or its designee, with full powers of substitution, to
act as attorneys and proxies for the undersigned, to vote all shares of common
stock of the Company which the undersigned is entitled to vote at the Annual
Meeting of Stockholders (the "Meeting"), to be held at the Alex P. Allain
Memorial Library, 206 Iberia Street, Franklin, Louisiana on January 19, 2000, at
2:00 p.m. and at any and all adjournments thereof, in the following manner:
FOR WITHHELD
--- --------
1. The election as director of all nominees
listed below: |_| |_|
Henry L. Friedman
Robert Earl Mouton
Christian Olivier, Jr.
W. Ross Little, Jr.
INSTRUCTIONS: To withhold your vote for any individual nominee, insert the
nominee's name on the line provided below.
----------------------------------------
2. The ratification of the appointment of FOR AGAINST ABSTAIN
--- ------- -------
Deloitte & Touche LLP as independent
auditors of Teche Holding Company, for
the fiscal year ending September 30, 2000. [_] [_] [_]
In their discretion, such attorneys and proxies are authorized to vote upon such
other business as may properly come before the Meeting or any adjournments
thereof.
The Board of Directors recommends a vote "FOR" all of the above listed
propositions.
- --------------------------------------------------------------------------------
THIS PROXY WILL BE VOTED AS DIRECTED, BUT IF NO INSTRUCTIONS ARE SPECIFIED, THIS
PROXY WILL BE VOTED FOR EACH OF THE PROPOSITIONS STATED. IF ANY OTHER BUSINESS
IS PRESENTED AT SUCH MEETING, THIS PROXY WILL BE VOTED BY THOSE NAMED IN THIS
PROXY IN THEIR BEST JUDGMENT. AT THE PRESENT TIME, THE BOARD OF DIRECTORS KNOWS
OF NO OTHER BUSINESS TO BE PRESENTED AT THE MEETING.
- --------------------------------------------------------------------------------
<PAGE>
THIS PROXY IS SOLICITED BY THE BOARD OF DIRECTORS
Should the undersigned be present and elects to vote at the Meeting, or
at any adjournments thereof, and after notification to the Secretary of the
Company at the Meeting of the stockholder's decision to terminate this proxy,
the power of said attorneys and proxies shall be deemed terminated and of no
further force and effect. The undersigned may also revoke this proxy by filing a
subsequently dated proxy or by written notification to the Secretary of the
Company of his or her decision to terminate this proxy.
The undersigned acknowledges receipt from the Company prior to the
execution of this proxy of a Notice of Annual Meeting of Stockholders and a
Proxy Statement dated December 10, 1999.
Please check here if you
Dated: , [_] plan to attend the Meeting.
------------------------ ----
- ------------------------------------ ------------------------------------
PRINT NAME OF STOCKHOLDER PRINT NAME OF STOCKHOLDER
- ------------------------------------ ------------------------------------
SIGNATURE OF STOCKHOLDER SIGNATURE OF STOCKHOLDER
Please sign exactly as your name appears on this proxy. When signing as
attorney, executor, administrator, trustee, or guardian, please give your full
title. If shares are held jointly, each holder should sign.
- --------------------------------------------------------------------------------
PLEASE COMPLETE, DATE, SIGN, AND MAIL THIS PROXY PROMPTLY IN THE ENCLOSED
POSTAGE-PREPAID ENVELOPE.
- --------------------------------------------------------------------------------
