Published:
Teche Holding Company Quarterly Earnings Per Share Grow 29% to $0.84
(AMEX: TSH) -- Patrick Little, President and
CEO of Teche Holding Company, holding company for Teche Federal Bank, today
reported earnings for the Company for the quarter ended June 30, 2006.
Earnings for the quarter ended June 30, 2006 amounted to $1.9 million, or
$0.84 per diluted share, compared to $1.5 million or $0.65 per diluted
share for the same quarter in fiscal 2005, an increase of $0.19 per share,
or 29%.
Earnings for the fiscal year to date, or past nine months, amounted to $5.5
million or $2.39 per diluted share, compared to $4.5 million or $1.92 per
diluted share for fiscal 2005, an increase of $0.47 per diluted share, or
24%.
The Company reported the following key achievements:
-- Total Deposits, fiscal year to date (in the past nine months),
increased by $36.5 million, or 7.1%, to $552.6 million, from $516.1 million
at September 30, 2005.
-- Total SmartGrowth Deposits, fiscal year to date, increased by $30.7
million, or 13.7%, to $255.3 million, from $224.6 million, accounting for
84.0% of deposit growth in the past nine months.
-- Total Loans, fiscal year to date, increased by $17.4 million, or 3.5%,
to $510.4 million from $493.0 million at September 30, 2005.
-- Total SmartGrowth Loans, fiscal year to date, increased by $23.8
million, or 7.9%, to $324.3 million, from $300.4 million, accounting for
136.8% of loan growth in the past nine months.
-- Commercial Loans, fiscal year to date, increased by $15.5 million or
13.5% to $130.4 million from $114.9 million at September 30, 2005.
-- Non-Interest Income for the nine-month period increased by $1.5
million, or 17.8%, to $9.6 million, compared to $8.1 million for the same
period in fiscal 2005.
-- Net Interest Margin for the nine-month period increased to 3.50% from
3.21% despite the unfavorable interest rate environment.
-- Net Interest Income for the nine-month period increased by $1.5
million, or 9.7%, to $16.7 million, compared to $15.2 million for the same
period in fiscal 2005.
-- New Loans in the past nine months were $155.6 million, of which $131.7
million, or 85%, were SmartGrowth loans.
-- New Commercial Loans in the past nine months were $83.7 million, or
53% of all new loans, compared to $49.8 million for the same period in
fiscal 2005.
-- Dividends increased to $0.81 per share for the nine-month period
compared to $0.69 per share for the same period in fiscal 2005, an increase
of 17%.
Deposit Growth
Nine-Month Growth. Total deposits, for fiscal 2006 (the past nine
months) grew by $36.5 million, or 7.1% to $552.6 million, from $516.1
million.
Three-Month Growth. Total deposits, compared to the linked quarter,
grew by $4.0 million, or 0.7%, to $552.6 million, from $548.6 million.
SmartGrowth Deposits
Nine-Month Growth. SmartGrowth Deposits, consisting of checking
accounts, savings accounts and money market accounts, for fiscal year
to date grew by $30.7 million, or 13.7%, to $255.3 million at June 30,
2006 from $224.6 million at September 30, 2005. This increase in
SmartGrowth deposits amounted to 136.8% of deposit growth over the past
nine months. Checking account balances grew by $22.0 million, or
21.3%, to $125.4 million, from $103.4 million, accounting for 60.1% of
the growth in deposits thus far in fiscal 2006.
Three-Month Growth. SmartGrowth Deposits grew by $2.7 million, or 1.1%,
compared to the linked quarter.
SmartGrowth Deposits now amount to approximately 46.2% of all deposits
compared to 46.0% at March 31, 2006 and 43.5% at September 30, 2005.
Loan Growth
Nine-Month Growth. Loan growth, fiscal year to date, was $17.4 million, or
3.5%. Total loans at June 30, 2006 were $510.4 million.
Three-Month Growth. Loan growth, compared to the linked quarter, was $6.2
million, or 1.2%.
SmartGrowth Loans
Nine-Month Growth. SmartGrowth Loans, consisting of commercial loans, home
equity loans, alternative mortgage loans and consumer loans, grew by $23.8
million, or 7.9%, to $324.3 million at June 30, 2006 from $300.4 million at
September 30, 2005, primarily due to growth in commercial loans. For the
nine-month period, commercial loans grew by $15.5 million, or 13.5%, to
$130.4 million.
Three-Month Growth. SmartGrowth Loans posted linked quarter growth of $6.1
million, or 1.9%, to $324.3 million from $318.1 million, primarily due to
growth in consumer loans. Quarterly growth for consumer loans was $3.8
million, or 7.1%.
SmartGrowth Loans amounted to 63.5% of total loans, compared to 60.9% at
September 30, 2005.
After some shrinkage of the loan portfolio (including the commercial loan
portfolio) in the first quarter, in part because of delays in loan closing
dates caused by Hurricanes Katrina and Rita, loans grew in the third
quarter of fiscal 2006. Teche Federal Bank's commercial loans consist
predominantly of commercial real estate loans.
Net Interest Income
Interest Income for the nine months ended June 30, 2006, increased by $2.0
million, or 7.5%, to $29.0 million compared to $27.0 million for the same
period in fiscal 2005, primarily due to an increase in the average balances
of and yields on consumer and commercial loans.
Interest Expense for the nine months ended June 30, 2006, increased by
$530,000,or 4.5%, to $12.2 million compared to $11.7 million for the same
period in fiscal 2005, primarily due to an increase in the average balance
of and rates paid on deposits.
Net-interest income for the 2006 nine-month period amounted to $16.7
million, compared to $15.2 million for the nine months ended June 30, 2005,
an increase of $1.5 million, or 9.7%.
Interest Income for the quarter ended June 30, 2006, increased by $649,000,
or 7.0%, compared to the same period in fiscal 2005, primarily due to an
increase in the average balance and yields of consumer and commercial
loans.
Interest Expense for the quarter ended June 30, 2006, increased by
$214,000, or 5.3%, primarily due to an increase in the average balance and
rates paid on deposits.
Net interest income for the three months ended June 30, 2006, amounted to
$5.7 million compared to $5.2 million for the same quarter last year, an
increase of $435,000 or 8.3%.
The increase in net interest income was primarily due to growth in both the
yields on and average balances of the consumer and commercial loan
portfolio. These increases were offset somewhat by an increase in the
average balances of and interest rates paid on interest bearing deposit
accounts.
Non-Interest Income
Nine Months. Non-interest income for fiscal 2006 year to date was $9.6
million, compared to $8.1 million for the same period in fiscal 2005, an
increase of $1.5 million, or 17.8%. Non-interest income for this period
amounted to 36.5% of operating income. Deposit service charges amounted to
88.6% of total non-interest income for the nine-month period ended June 30,
2006, compared to 86.4% in 2005.
Three Months. Quarterly non-interest income was $3.4 million, compared to
$2.9 million for the same quarter in fiscal 2005, an increase of $494,000,
or 17.0%. Non-interest income amounted to 37.5% of operating revenue.
Deposit service charges amounted to 92.0% of total non-interest income for
this quarter, compared to 86.8% in 2005.
Non-Interest Expense
For the nine-month period ended June 30, 2006, non-interest expense
amounted to $18.0 million, compared to $16.7 million for the same period
for fiscal 2005, an increase of $1.3 million, or 7.7%.
Quarterly non-interest expense amounted to $6.1 million for the quarter
compared to $5.8 million for the three months ended June 30, 2005, an
increase of $205,000 or 3.5%, primarily due to compensation expense
resulting from expensing of stock options and an increase in commercial
loan staff.
Asset Quality
Non-performing assets as a percent of total assets decreased to 0.59% at
June 30, 2006, compared to 0.64% at March 31, 2006, and 0.71% at December
31, 2005.
Originally, 71 customers, whose aggregate loan balances amounting to $3.8
million, were granted forbearance as a result of the impact of hurricanes
Katrina and Rita. Of these, currently 9 customers with aggregate loan
balances amounting to $670,000 continue to receive forbearance of some
type. Loans granted forbearance receive new temporary terms and are
considered performing loans.
Management's evaluation of the level of loan loss reserves includes the
effects of the recent hurricanes and believes that the current level of
reserves is adequate.
Increase in Dividends
Since June 2003, Teche has increased dividends for thirteen consecutive
quarters and currently pays a $0.28 per share quarterly dividend. Based on
the closing price of our common stock at end of business on June 30, 2006,
the annualized dividend yield was 2.42%. Based on dividends and diluted
EPS fiscal year to date, the dividend payout ratio is 33.9%.
Net Interest Margin
The net interest margin increased to 3.50% for the nine months ended June
30, 2006, compared to 3.21% for the same period in fiscal 2005 for several
reasons. First, interest on loans increased, primarily due to increases in
interest rates and to an increase in SmartGrowth loan balances compared to
last year. Second, both SmartGrowth low-cost deposit balances and time
deposit balances increased, replacing higher cost FHLB advances.
For the quarter, net interest margin increased to 3.53% compared to 3.25%
for the same quarter in fiscal 2005 for the same reasons set forth above.
As compared to the linked quarter ended March 31, 2006, net interest margin
decreased slightly from 3.59% primarily due to increases in interest rates
paid on deposits as a result of rising market interest rates.
Compared to the linked quarter, FHLB advances decreased by $1.2 million, or
1.5%, to $78.6 million from $79.9 million. For fiscal 2006, FHLB advances
decreased $14.8 million or 15.8%. A year ago, FHLB advances were $115.8
million, a one-year decrease of $37.2 million, or 32.1%.
"Over the past year, as deposits have dramatically increased, we have also
dramatically decreased advances from the Federal Home Loan Bank," said
Little. "This process, and the continued execution of our SmartGrowth
strategy, has positively affected our net interest margin."
Teche Federal Bank is the fourth largest publicly traded bank based in
Louisiana with over $700 million in assets. Teche Holding Company is the
parent company of Teche Federal Bank, which operates nineteen offices in
South Louisiana and serves over 50,000 customers. Teche Holding Company's
common stock is traded under the symbol "TSH" on the American Stock
Exchange.
Statements contained in this news release, which are not historical facts,
are forward-looking statements as that term is defined in the Private
Securities Litigation Reform Act of 1995. Such forward-looking statements
are subject to risks and uncertainties which could cause actual results to
differ materially from those currently anticipated due to a number of
factors, which include, but are not limited to, factors discussed in
documents filed by Teche Holding Company with the Securities and Exchange
Commission from time to time. The Company does not undertake to update
any forward-looking statement, whether written or oral, that may be made
from time to time by or on behalf of the Company.
TECHE HOLDING COMPANY
(Dollars in thousands, except per share data)
Franklin, LA
Statements of Income
(UNAUDITED)
Three Months Ended Nine Months Ended
June 30 June 30
2006 2005 2006 2005
-------- -------- -------- --------
Interest Income $ 9,917 $ 9,268 $ 28,963 $ 26,955
Interest Expense 4,261 4,047 12,243 11,713
-------- -------- -------- --------
Net Interest Income 5,656 5,221 16,720 15,242
Provision for Loan Losses 60 45 150 105
-------- -------- -------- --------
Net Interest Income after
Provision for Loan Losses 5,596 5,176 16,570 15,137
Non-Interest Income 3,395 2,901 9,613 8,161
Non-Interest Expenses 6,052 5,847 17,957 16,668
-------- -------- -------- --------
Income Before Gain on Sales of
Securities and Income Taxes 2,939 2,230 8,226 6,630
Gains on
Sales of Securities - - 34 26
Income Taxes 1,013 725 2,742 2,163
-------- -------- -------- --------
Net Income $ 1,926 $ 1,505 $ 5,518 $ 4,493
======== ======== ======== ========
Selected Financial Data
Dividends Declared Per Share $ 0.28 $ 0.24 $ 0.81 $ 0.69
Basic Earnings Per Common Share $ 0.86 $ 0.68 $ 2.46 $ 2.02
Diluted Earnings Per Common Share $ 0.84 $ 0.65 $ 2.39 $ 1.92
Annualized Return on Avg. Assets 1.11% 0.87% 1.07% 0.88%
Annualized Return on Avg. Equity 12.40% 9.93% 11.91% 9.94%
Annualized Return on Avg.
Tangible Equity (1) 13.35% 10.79% 12.84% 10.81%
Net Interest Margin 3.53% 3.25% 3.50% 3.21%
Non-Interest Income/Avg. Assets 1.96% 1.68% 1.87% 1.61%
Non-Interest Expense/Avg. Assets 3.50% 3.39% 3.49% 3.28%
(1) Eliminates the effect of goodwill and the core deposit intangible
assets and the related amortization expense on a tax effected basis. The
amount was calculated using the following information:
Annualized Return on Avg.
Tangible Equity (1)
Average Stockholders’ Equity $ 62,117 $ 60,646 $ 61,751 $ 60,262
Less average goodwill and other
intangible assets, net of related
income taxes 3,828 3,904 3,847 3,891
--------- --------- --------- ---------
Average Tangible Equity $ 58,289 $ 56,742 $ 57,904 $ 56,371
========= ========= ========= =========
Net Income $ 1,926 $ 1,505 $ 5,518 $ 4,493
Plus Amoritization of core deposit
Intangibles, net of related income 19 26 56 79
--------- --------- --------- ---------
Net Income, as adjusted $ 1,945 $ 1,531 $ 5,574 $ 4,572
========= ========= ========= =========
TECHE HOLDING COMPANY
(Dollars in thousands, except per share data)
Franklin, LA
Balance Sheets
(UNAUDITED)
at
June 30, Sept. 30,
2006 2005
SmartGrowth Loans* $ 324,259 $ 300,443
Mortgage Loans** 186,147 192,524
--------- ---------
510,406 492,967
Allowance for Loan Losses 4,831 (5,151)
--------- ---------
Loans Receivable, Net 505,575 487,816
Cash and Securities 153,916 150,991
Goodwill and Other Intangibles 3,899 3,982
Foreclosed Real Estate 1,322 270
Other 35,301 33,763
--------- ---------
TOTAL ASSETS $ 700,013 $ 676,822
========= =========
SmartGrowth Deposits*** $ 255,341 $ 224,611
Time Deposits 297,246 291,441
--------- ---------
Total Deposits 552,587 516,052
FHLB Advances 78,631 93,409
Other Liabilities 6,592 6,023
Stockholders’ Equity 62,203 61,338
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 700,013 $ 676,822
========= =========
Ratio of Equity to Assets 8.89% 9.06%
Tangible Equity to Tangible Assets (2) 8.39% 8.53%
Book Value per Common Share $ 27.88 $ 26.79
Tangible Book Value Per Common Share (2) $ 26.17 $ 25.09
Non-performing Assets/Total Assets 0.60% 0.78%
Shares Outstanding (in thousands) 2,231 2,290
* Consumer, Commercial, Home Equity, and Alternative Mortgage Loans
** Owner Occupied Conforming Mortgage Loans
*** Checking, Money Market and Savings Deposits
(2) Eliminates the effect of goodwill and the core deposit intangible
assets and the related accumulated amortization on a tax-effected basis.
The amount was calculated using the following information:
Stockholders’ Equity $ 62,203 $ 61,338
Less goodwill and other Intangible assets, net of
related income taxes 3,817 3,886
--------- ---------
Tangible Stockholders’ Equity $ 58,386 $ 57,452
========= =========
Total Assets $ 700,013 $ 677,222
Less goodwill and other Intangible assets, net of
related income taxes 3,817 3,886
--------- ---------
Total Tangible Assets $ 696,196 $ 673,336
========= =========
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Copyright © 2008, NewsBlaze,
Daily NewsTags: ,FinancialServices:RetailBanking, FinancialServices:PersonalFinance, ,AMEX0001,AMEX0001,LA,FRANKLIN, LA
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