Teche Holding Company Announces Fifth Consecutive Fiscal Year of Record EPS, Earns $1.03 per Share for Fourth Quarter

Teche Holding Company Announces Fifth Consecutive Fiscal Year of Record EPS,  Earns $1.03 per Share for Fourth Quarter  NEW IBERIA, LA -- (Marketwired) -- 10/24/13 --  (NYSE MKT: TSH) -- Patrick Little, President and CEO of Teche Holding Company, holding company for Teche Federal Bank, today reported on earnings for the Company for the quarter ended September 30, 2013, the fourth quarter of fiscal 2013 and for the full fiscal year ended September 30, 2013.  Earnings for fiscal 2013 amounted to $8.7 million, or a record $4.22 per diluted share, compared to $7.3 million or $3.51 per diluted share for fiscal 2012, an increase of $0.71 per diluted share, or 20.2%.  Earnings for the quarter ended September 30, 2013 amounted to $2.1 million, or $1.03 per diluted share, compared to $2.1 million, or $1.01 per diluted share for the same quarter in fiscal 2012.  "For the last two quarters, both consumer and commercial loans have had healthy increases," said Little, "meanwhile, we've seen a slight decrease in total mortgage loan balances. The consequence has been a double-digit annualized growth rate for total loans and a good overall loan mix."  "Because of our steady loan production, total loans have returned to the levels of a year ago; despite our $46.5 million loan sale earlier this fiscal year," said Little. "As a result, earnings are back to the same level as a year ago, over $2.0 million for the quarter and around $1 earnings per share."   "Meanwhile, loan production of $252 million for fiscal 2013 was slightly better than the previous year," said Little. "We are particularly pleased with our asset quality ratios. The low levels of non-performing assets, net charge offs and other real estate owned point to a strong credit culture and robust local economies."  "Checking account balances increased 11.4% and total deposits increased 5.4% from Septembe r 30, 2012. Practically all of our deposit growth in fiscal 2013 was due to checking account growth," he continued, "and the average rate paid on deposits is down to 0.45%."  "Our balance sheet also improved for the year, as cash and security balances decreased 6.1% and FHLB advances decreased 23.6%," said Little.  "It all adds up to our fifth consecutive year of record earnings per share and our eleventh consecutive year of increasing dividends."  The Company reported the following highlights for the quarter:      --  Earnings for the quarter amounted to $2.1 million, or $1.03 per     diluted share compared to $0.95 per diluted share for the linked     quarter and $1.01 per diluted share a year ago. --  The average rate paid on all deposits was 0.40% for the quarter ended     September 30, 2013. --  Quarterly operating revenue amounted to $12.0 million compared to     $11.7 million for the linked quarter and $12.1 million a year ago. --  Total loans increased 2.5% (annualized 9.9%) or $16.6 million to     $684.4 million compared to $667.8 million for the linked quarter. --  Consumer loans increased 5.9% (annualized 23.5%) or $7.2 million     compared to the linked quarter. --  Commercial loans increased 3.4% (annualized 13.5%) or $7.3 million     compared to the linked quarter. --  Total assets increased 2.0% or $16.9 million to $856.7 million     compared to $839.8 million for the linked quarter. --  Net interest margin for the quarter amounted to 4.08% compared to     4.01% for the linked quarter.                                                                                 QUARTERLY COMPARISON              4th Qtr    3rd Qtr                         (In 000,000's)                      2013       2013     Change    % Change                                    ---------  ---------  --------   --------   Earnings Per Share (Diluted)     $    1.03  $    0.95  $   0.08        8.4%  Tangible Book Value per Common                                                Share                           $   41.68  $   41.06  $   0.62        1.5%  Total Loans                      $   684.4  $   667.8  $   16.6        2.5%  Total Loan Production            $    69.5  $    65.5  $    4.0        6.1%  SmartGrowth Loans                $   509.0  $   491.6  $   17.4        3.5%  Total Assets                     $   856.7  $   839.8  $   16.9        2.0%  Avg. Earning Assets              $   771.0  $   773.9  $   (2.9)      (0.4%) Total Deposits                   $   650.8  $   647.4  $    3.4        0.5%  Avg. Rate on Deposits                 0.40%      0.41%    (0.01%)     (2.4%) Net Interest Margin                   4.08%      4.01%     0.07%       1.7%     The Company reported the following highlights for the fiscal year ended September 30, 2013:      --  Earnings for fiscal 2013 amounted to $8.7 million, or a record $4.22     per diluted share. This is the fifth consecutive year that Teche has     posted record earnings per share. --  Operating revenues increased to a record $48.5 million compared to     $46.6 million for the fiscal year ended September 30, 2012. --  Net charge-offs for fiscal 2013 amounted to 0.17% of average loans,     down from 0.26% for fiscal 2012. --  Loan production amounted to $252.0 million for fiscal 2013, compared     to $228.0 million for fiscal 2012. --  Total Loans increased 1.5% to $684.4 million at September 30, 2013     compared to $674.4 million a year ago, despite a loan sale of $46.5     million (which garnered a premium of $2.0 million) in fiscal 2013. --  SmartGrowth Loans increased 6.1% compared to a year ago. SmartGrowth     Loans now amount to 74.4% of total loans. --  Total deposits increased 5.4% compared to a year ago, mostly due to an     increase in checking accounts. --  Checking account balances increased 11.4% compared to September 30,     2012. Checking account balances now amount to 37.7% of total deposits,     compared to 35.7% a year ago. --  SmartGrowth Deposits increased 5.2% compared to a year ago.     SmartGrowth Deposits now amount to 76.7% of total deposits, compared     to 76.8% a year ago. --  Total advances decreased 23.6% to $109.0 million compared to a y ear     ago. --  The average rate paid on all deposits was 0.45% for fiscal 2013     compared to 0.67% for fiscal 2012. --  Net interest margin for the year amounted to 3.96% compared to 4.10%     for fiscal 2012. --  Tangible book value per shareincreased 6.1% to $41.68 at fiscal     year-end compared to $39.29 per share a year ago.                                                                                 ANNUAL COMPARISON                                                            (In 000,000's)                    Sep '13    Sep '12    Change    % Change                                    ---------  ---------  --------   --------   Earnings Per Share (Diluted)     $    4.22  $    3.51  $   0.71       20.2%  Tangible Book Value per Common                                                Share                           $   41.68  $   39.29  $   2.39        6.1%  Dividends Declared per share     $   1.475  $   1.455  $   0.02        1.4%  Total Loans                      $   684.4  $   674.4  $   10.0        1.5%  Total Loan Production            $   252.0  $   228.0  $   24.0       10.5%  Net Charge-offs/Avg. Loans            0.17%      0.26%    (0.09%)    (34.6%) NPAs/Assets                           0.39%      1.28%    (0.89%)    (69.5%) Total Assets                     $   856.7  $   852.0  $    4.7        0.6%  Avg. Earning Assets              $   773.9  $   757.5  $   16.4        2.2%  Total Deposits                   $   650.8  $   617.7  $   33.1        5.4%  Checking Balances                $   245.4  $   220.3  $   25.1       11.4%  Checking as a % of Total                                                      Deposits                             37.7%      35.7%      2.0%       5.6%  SmartGrowth Deposits             $   499.1  $   474.2  $   24.9        5.3%  Avg. Rate on Deposits                 0.45%      0.67%    (0.22%)    (32.8%) ROAA                                  1.03%      0.88%     0.15%      17.0%  ROAE                                  9.96%      8.80%     1.16%      13.2%     Net Income  Net income for the quarter amounted to $2.1 million or $1.03 per diluted share, an increase of 8.4% on a per-diluted share basis compared to the linked quarter. Net income for the quarter was slightly higher as compared to the same period in 2012. Net income for the fiscal year ended September 30, 2013 was higher than the prior year due in part to the loan sale mentioned above from which we recorded a $2.0 million gain on the sale of loans.                                                                                   QUARTERLY COMPARISON            Sep '13  Jun '13  Mar '13  Dec '12  Sep '12                                  -------  -------  -------  -------  -------  Net Income (In 000's)           $ 2,147  $ 1,953  $ 1,559  $ 3,072  $ 2,073  Pre-Tax, Pre-Provision Earnings                                               (In 000's)                     $ 3,229  $ 2,929  $ 2,571  $ 4,799  $ 3,615  Basic Earnings Per Common Share $  1.05  $  0.96  $  0.76  $  1.51  $  1.02  Diluted Earnings Per Common                                                   Share                          $  1.03  $  0.95  $  0.75  $  1.49  $  1.01  Annualized Return on Avg.                                                     Assets                            1.01%    0.92%    0.74%    1.44%    0.98% Pre-Tax, Pre-Provision                                                        Earnings/ AvgAssets               1.52%    1.38%    1.21%    2.26%    1.71% Annualized Return on Avg.                                                     Equity                            9.63%    8.89%    7.19%   14.17%    9.81% Annualized Return on Avg.                                                     Tangible Equity                  10.05%    9.27%    7.52%   14.80%   10.25% Average Assets (In millions)    $ 847.3  $ 849.3  $ 847.6  $ 851.1  $ 846.1  Average Deposits (In millions)  $ 646.7  $ 649.0  $ 640.5  $ 623.7  $ 612.8  Average FHLB Advances (In                                                     millions)                      $ 103.8  $ 106.5  $ 114.1  $ 131.8  $ 141.6                                                                                                                                                            FISCAL YEAR COMPARISON                 2013      2012      2011      2010                                         --------  --------  --------  --------  Net Income (In 000's)                $  8,731  $  7,285  $  7,228  $  7,101  Pre-Tax, Pre-Provision Earnings (In                                           000's)                              $ 13,528  $ 12,850  $ 14,602  $ 14,363  Basic Earnings Per Common Share      $   4.29  $   3.55  $   3.49  $   3.40  Diluted Earnings Per Common Share    $   4.22  $   3.51  $   3.45  $   3.37  Annualized Return on Avg. Assets         1.03%     0.88%     0.94%     0.93% Pre-Tax, Pre-Provision Earnings/                                              Avg. Assets                             1.59%     1.56%     1.89%     1.88% Annualized Return on Avg. Equity         9.96%     8.80%     9.12%     9.43% Annualized Return on Avg. Tangible                                            Equity                                 10.40%     9.21%     9.58%     9.94% Average Assets (in millions)         $  848.8  $  825.0  $  772.0  $  762.4  Average Earning Assets (in millions) $  773.9  $  757.5  $  705.5  $  697.3  Average Deposits (in millions)       $  640.0  $  608.3  $  598.1  $  578.3  Average FHLB Advances(in millions)   $  114.1  $  127.4  $   88.3  $  102.3                                                                                                                                                            Loans                                                                                                                                                     QUARTERLY COMPARISON                                                         (In 000,000's)                   Sep '13  Jun '13  Mar '13  Dec '12  Sep '12                                 -------- -------- -------- -------- -------- SmartGrowth Loans                                                              Consumer                      $  129.6 $  122.4 $  115.8 $  113.4 $  110.2   Commercial                        224.2    216.9    212.4    220.5    215.2   Home Equity                       41.6     41.7     42.1     42.5     43.2   SmartMortgages                   113.6    110.6    104.0    100.8    111.1                                 -------- -------- -------- -------- -------- Total SmartGrowth Loans         $  509.0 $  491.6 $  474.3 $  477.2 $  479.7 Mortgage Loans (owner occupied                                                conforming)                       175.4    176.2    169.0    165.4    194.7                                 -------- -------- -------- -------- -------- Total Loans                     $  684.4 $  667.8 $  643.3 $  642.6 $  674.4    "For the last two quarters, loans increased 6.4% or $41.1 million, primarily due to increased loan production," said Little. "Our loan production for fiscal 2013 was a record $252 million compared to $228 million in fiscal 2012."   Gross loans receivable increased to $684.4 million at September 30, 2013, from $667.8 million at June 30, 2013 and $674.4 million at September 30, 2012, representing a linked quarter increase of $16.6 million, or 2.5% (9.9% annualized) and a twelve month increase of $10.0 million or 1.5%, primarily due to consumer and commercial loan growth offset somewhat by decreases in home equity, SmartMortgage and mortgage loans. SmartGrowth Loans, consisting of commercial loans, home equity loans, SmartMortgage loans and consumer loans, were $509.0 million, or 74.4% of total loans at September 30, 2013, compared to $491.6 million, or 73.6% at June 30, 2013 and $479.7 million at September 30, 2012, for a three month increase of $17.4 million, or 3.5% (14.1% annualized) and a twelve month increase of $29.3 million, or 6.1%.   Commercial loan balances at September 30, 2013 amounted to $224.2 million, compared to $216.9 million at June 30, 2013 and $215.2 million at September 30, 2012, which was a three month increase of $7.3 million or 3.4% (13.5% annualized), and a twelve-month increase of $9.0 million, or 4.2%. Consumer loan balances at September 30, 2013 amounted to $129.6 million, compared to $122.4 million at June 30, 2013 and $110.2 million at September 30, 2012, a linked quarter increase of $7.2 million, or 5.9% (23.5% annualized).                                                                                    FISCAL YEAR COMPARISON                                                       (In 000,000's)                      2013       2012       2011       2010                                     ---------- ---------- ---------- ---------- SmartGrowth Loans                                                              Consumer                       $    129.6 $    110.2 $    108.8 $    111.6   Commercial                          224.2      215.2      209.5      212.9   Home Equity                          41.6       43.2       48.8       53.4   SmartMortgages                      113.6      111.1       92.9       87.0                                  ---------- ---------- ---------- ---------- Total SmartGrowth Loans          $    509.0 $    479.7 $    460.0 $    464.9 Mortgage Loans (owner occupied                                                conforming)                          175.4      194.7      148.6      131.0                                  ---------- ---------- ---------- ---------- Total Loans                      $    684.4 $    674.4 $    608.6 $    595.9                                                                                                                                                           Deposits                                                                                                                                                  QUARTERLY COMPARISON                                                         (In 000,000's)              Sep '13   Jun '13   Mar '13   Dec '12   Sep '12                             --------  --------  --------  --------  --------  SmartGrowth Deposits                                                           Checking                 $  245.4  $  252.3  $  259.0  $  230.8  $  220.3    Money Market                 50.7      49.7      52.1      55.0      55.2    Savings                     203.0     209.9     210.6     204.2     198.7                             --------  --------  --------  --------  --------  Total SmartGrowth Deposits $  499.1  $  511.9  $  521.7  $  490.0  $  474.2  Time Deposits                 151.7     135.5     138.7     140.6     143.5                             --------  --------  --------  --------  --------  Total Deposits             $  650.8  $  647.4  $  660.4  $  630.6  $  617.7  Avg. Yield on Deposits         0.40%     0.41%     0.45%     0.53%     0.58% Avg. Yield on Checking         0.07%     0.10%     0.10%     0.12%     0.12%    The average rate paid on SmartGrowth Deposits was 0.08%, for the current quarter, 0.11% for the linked quarter and 0.22% for the same period a year ago.  The average rate on total deposits was 0.40%, compared to 0.58% a year ago and 0.41% for the linked quarter. "In the next year, approximately $78.6 million in time deposits, with an average rate of 1.03% will mature," said Little. "This will further help to reduce our cost of deposits in this current low market rate environment."  Three-Month Growth. The Company's SmartGrowth Deposits, consisting of checking, savings and money market accounts, decreased this quarter mainly due to seasonal shrinkage in savings and checking accounts. Total deposits increased to $650.8 million at September 30, 2013, from $647.4 million at June 30, 2013, a linked quarter increase of $3.4 million or 0.5%.  Checking account balances at September 30, 2013 decreased $6.9 million, or 2.7%, to $245.4 million from $252.3 million at June 30, 2013.  Twelve-Month Growth. Total deposits increased to $650.8 million at September 30, 2013, from $617.7 million at September 30, 2012, a twelve-month increase of $33.1 million, or 5.4%. Total SmartGrowth Deposits increased $24.9 million, or 5.3% from $474.2 million at September 30, 2012 to $499.1 million at September 30, 2013, primarily due to growth in checking and savings account balances offset somewhat by decreases in money market account balances.  SmartGrowth Deposits amounted to 76.7% of total deposits as of September 30, 2013 compared to 76.8% at September 30, 2012.  Checking account balances at September 30, 2013 increased 11.4% or $25.1 million, as compared to September 30, 2012. Checking account balances now account for 37.7% of total deposits compared to 35.7% at September 30, 2012.                                                                                   FISCAL YEAR COMPARISON                                                       (In 000,000's)                      2013       2012       2011       2010                                     ---------  ---------  ---------  ---------  SmartGrowth Deposits                                                           Checking                       $   245.4  $   220.3  $   190.8  $   173.2    Money Market                        50.7       55.2       55.0       60.3    Savings                            203.0      198.7      190.7      166.7                                   ---------  ---------  ---------  ---------  Total SmartGrowth Deposits       $   499.1  $   474.2  $   436.5  $   400.2  Time Deposits                        151.7      143.5      162.1      179.2                                   ---------  ---------  ---------  ---------  Total Deposits                   $   650.8  $   617.7  $   598.6  $   579.4  Avg. Yield on Deposits                0.45%      0.67%      0.88%      1.40% Avg. Yield on Checking                0.10%      0.11%      0.08%      0.25%    Over the past three years, SmartGrowth Deposits have increased $98.9 million or 24.7% due to growth in checking and savings balances offset somewhat by decreases in money market balances.  Capital  The tangible equity ratio increased to 10.01% at September 30, 2013 compared to 9.42% a year ago, as stockholders' equity increased to $89.1 million while assets increased to $856.7 million. Tangible book value per common share increased to $41.68 or 6.1% compared to a year ago. Risk based capital increased to 14.31% compared to 14.09% a year ago. The equity to asset ratio increase d to 10.40% at September 30, 2013, from 9.81% a year ago.                                                                                   QUARTERLY COMPARISON            Sep '13  Jun '13  Mar '13  Dec '12  Sep '12                                  -------  -------  -------  -------  -------  Stockholders' Equity (In                                                      millions)                      $  89.1  $  86.7  $  86.6  $  84.8  $  83.5  Ratio of Equity to Assets         10.40%   10.32%   10.07%   10.09%    9.81% Tangible Equity Ratio             10.01%    9.92%    9.69%    9.70%    9.42% Total Risk-Based Capital Ratio    14.31%   14.31%   14.38%   14.34%   14.09% Book Value per Common Share     $ 43.47  $ 42.82  $ 42.40  $ 41.65  $ 41.09  Tangible Book Value Per Common                                                Share                          $ 41.68  $ 41.06  $ 40.62  $ 39.86  $ 39.29  Total Assets (In millions)      $ 856.7  $ 839.8  $ 860.3  $ 839.7  $ 852.0                                                                                                                                                            FISCAL YEAR COMPARISON            2013     2012     2011     2010     2009                                   -------  -------  -------  -------  -------  Stockholders' Equity (In                                                      millions)                      $  89.1  $  83.5  $  80.0  $  75.5  $  71.5  Ratio of Equity to Assets         10.40%    9.81%   10.08%    9.92%    9.34% Tangible Equity Ratio             10.01%    9.42%    9.67%    9.48%    8.90% Total Risk-Based Capital Ratio    14.31%   14.09%   14.30%   13.52%   12.72% Book Value per Common Share     $ 43.47  $ 41.09  $ 38.79  $ 36.19  $ 34.09  Tangible Book Value Per Common                                                Share                          $ 41.68  $ 39.29  $ 37.02  $ 34.43  $ 32.33  Total Assets (In millions)      $ 856.7  $ 852.0  $ 793.2  $ 761.5  $ 765.1     "Since 2009 the Company's equity to assets ratio has gone from 9.34% to 10.40%, our stockholders' equity has gone from $71.5 million to $89.1 million and our tangible book value per share has gone from $32.33 to $41.68," said Little.  Asset Quality  The following table sets forth asset quality ratios for each of the past five quarters and the past four years:                                                                                    Net Charge-offs, ALLL, NPAs                                                  QUARTERLY COMPARISON            Sep '13  Jun '13  Mar '13  Dec '12  Sep'12                                   -------  -------  -------  -------  -------  Charge-offs/Average Loans          0.02%    0.01%    0.05%    0.07%    0.05% ALLL*/NPLs                       307.34%  158.84%  158.54%   87.76%   82.52% ALLL*/NPAs                       236.57%  132.76%  138.95%   81.52%   78.54% ALLL*/Loans                        1.15%    1.20%    1.26%    1.28%    1.27% NPAs/Assets                        0.39%    0.72%    0.68%    1.20%    1.28% *ALLL figures include specific reserves                                                                                                                                                                                                Net Charge-offs, ALLL, NPAs                                                  FISCAL YEAR COMPARISON              2013       2012       2011       2010                                     ---------  ---------  ---------  ---------  Net Charge-offs/Average Loans         0.17%      0.26%      0.82%      0.24% ALLL*/NPLs                          307.34%     82.52%     76.63%     63.92% ALLL*/NPAs                          236.57%     78.54%     67.67%     59.02% ALLL*/Loans                           1.15%      1.27%      1.37%      1.55% NPAs/Assets                           0.39%      1.28%      1.55%      2.06% *ALLL figures include specific reserves                                         The following table sets forth the allowance for loan loss activity for each of the past 5 quarters.                                                                                   Allowance for Loan Loss                                                       Provision & Charge-offs                                                     QUARTERLY COMPARISON (In 000's)  Sep '13  Jun '13  Mar '13  Dec '12  Sep '12                                 -------- -------- -------- -------- -------- Beginning ALLL                  $  8,038 $  8,135 $  8,234 $  8,559 $  8,411 Provision for Loan Losses              0        0      250      150      500 Net Charge-offs                      170       97      349      475      352 Ending ALLL                     $  7,868 $  8,038 $  8,135 $  8,234 $  8,559    Net charge-offs for the quarter ended September 30, 2013 were $0.2 million, or 0.02% of average loans, compared to $0.4 million or 0.05% of average loans for the same period a year ago. For the twelve months ended September 30, 2013, net charge-offs were $1.1 million or 0.17% of average loans, compared to $1.7 million or 0.26% of average loans for the twelve months ended September 30, 2012.   Non-performing assets decreased to $3.3 million, or 0.39% of total assets at September 30, 2013, compared to $6.1 million, or 0.72% of total assets at June 30, 2013 and $10.9 million, or 1.28% of total assets a year ago, primarily due to lower delinquent loan levels.                                                                                    Allowance for Loan Loss                                                       Provision & Charge-offs                                                     FISCAL YEAR COMPARISON (In                                                    000's)                             2013       2012       2011       2010                                     ---------- ---------- ---------- ---------- Beginning ALLL                   $    8,559 $    8,331 $    9,256 $    6,806 Provision for Loan Losses               400      1,910      3,900      3,896 Net Charge-offs                       1,091      1,682      4,825      1,446 Ending ALLL                      $    7,868 $    8,559 $    8,331 $    9,256 Ending ALLL (net of specific                                                  reserves)                       $    7,730 $    8,559 $    7,783 $    7,125                                                                                                                                                           Net Interest Income                                                                                                                                       QUARTERLY COMPARISON (In 000's)  Sep '13  Jun '13  Mar '13  Dec '12  Sep '12                                 -------- -------- -------- -------- -------- Interest Income                 $  9,463 $  9,392 $  9,002 $  9,571 $  9,836 Interest Expense                   1,591    1,630    1,697    1,832    1,895                                 -------- -------- -------- -------- -------- Net Interest Income             $  7,872 $  7,762 $  7,305 $  7,739 $  7,941                                 ======== ======== ======== ======== ========    Net interest income for the three months ended September 30, 2013 amounted to $7.9 million compared to $7.9 million for the quarter ended September 30, 2012. Net interest income remained stable due to outstanding loan originations offset somewhat by the $46.5 million loan sale during the first fiscal quarter.                                                                                   FISCAL YEAR COMPARISON (In 000's)       2013      2012      2011      2010                                        --------- --------- --------- --------- Interest Income                      $  37,428 $  39,134 $  39,358 $  41,336 Interest Expense                         6,750     8,080     9,168    11,704                                      --------- --------- --------- --------- Net Interest Income                  $  30,678 $  31,054 $  30,190 $  29,632                                      ========= ========= ========= =========    Net interest income for fiscal 2013 amounted to $30.7 million compared to $31.1 million for fiscal 2012, a decrease of 1.2%. "We were extremely pleased that net interest income remained strong for fiscal 2013, even after the $46.5 million loan sale in the first quarter," said Little. "Thanks to strong loan demand and a great loan department, we had record loan production for fiscal 2013."                                                                                   Interest Margin and Spread                                                                                                                                 QUARTERLY COMPARISON            Sep '13  Jun '13  Mar '13  Dec '12  Sep '12                                  -------  -------  -------  -------  -------  Yield on Earning Assets            4.91%    4.85%    4.66%    4.92%    5.07% Cost of Interest Bearing                                                      Liabilities                       0.97%    1.00%    1.04%    1.11%    1.14% Spread                             3.93%    3.86%    3.62%    3.80%    3.93% Net Interest Margin                4.08%    4.01%    3.78%    3.98%    4.10%                                                                                                                                                           FISCAL YEAR COMPARISON                     2013     2012     2011     2010                                            -------  -------  -------  -------  Yield on Earning Assets                     4.84%    5.17%    5.58%    5.93% Cost of Interest Bearing Liabilities        1.03%    1.25%    1.51%    1.91% Spread                                      3.81%    3.92%    4.07%    4.02% Net Interest Margin                         3.96%    4.10%    4.28%    4.25%    Net interest margin amounted to 4.08% for the three-month period ended September 30, 2013 compared to 4.01% for the linked quarter and 4.10% for quarter ended September 30, 2012.   For the fiscal year ended September 30, 2013, net interest margin was 3.96% as compared to 4.10% for the fiscal year ended September 30, 2012 due to lower rates on loan originations offset somewhat by lower rates on interest bearing liabilities.   Operating Revenue  Operating revenue for the quarter ended September 30, 2013, consisting of net interest income (before provisions for loan losses) plus non-interest income, amounted to $12.0 million, compared to $12.1 million for the same quarter in 2012. For the year ended September 30, 2013, operating revenue amounted to $48.5 million as compared to $46.6 million for the year ended September 30, 2012. "Since 2009, the Company has posted record operating revenue every year," said Little.  The tables below reflect Teche's operating revenues in millions over the past five quarters and the past four years:                                                                                   QUARTERLY COMPARISON (In                                                      millions)                       Sep '13  Jun '13  Mar '13  Dec '12  Sep '12                                 -------- -------- -------- -------- -------- Net Interest Income             $    7.9 $    7.8 $    7.3 $    7.7 $    7.9 Non-interest Income                  4.1      3.9      4.0      5.8      4.2                                 -------- -------- -------- -------- -------- Operating Revenue               $   12.0 $   11.7 $   11.3 $   13.5 $   12.1                                 ======== ======== ======== ======== ========                                                                                                                                                           FISCAL YEAR COMPARISON (In                                                    millions)                          2013       2012       2011       2010                                     ---------- ---------- ---------- ---------- Net Interest Income              $     30.7 $     31.1 $     30.2 $     29.6 Non-interest Income                    17.8       15.5       15.5       16.0                                  ---------- ---------- ---------- ---------- Operating Revenue                $     48.5 $     46.6 $     45.7 $     45.6                                  ========== ========== ========== ==========    Non-Interest Income  Non-interest income was $4.1 million for the quarter ended September 30, 2013, compared to $3.9 million in the linked quarter and $4.2 million for the same quarter a year ago, remaining relatively stable. This amounted to 1.96% of average assets for the quarter, compared to 1.84% for the linked quarter and 1.99% a year ago.  Non-Interest Expense  For the quarter ended September 30, 2013, non-interest expense was $8.8 million or 4.15% of average assets, compared to $8.7 million, or 4.11% of average assets, in the linked quarter, which constituted an increase of 0.7%. Compared to the same quarter in fiscal 2012, non-interest expense increased $0.3 million or 3.1%.  For the year ended September 30, 2013, non-interest expense increased 3.8% to $35.0 million from $33.7 million for the year ended September 30, 2012. Over the same period, non-interest income increased from $15.5 million to $17.8 million, primarily due to the gain on sale of loans described earlier.                                                                                   QUARTERLY COMPARISON (In                                                      thousands)                     Sep '13  Jun '13  Mar '13  Dec '12  Sep '12                                  -------  -------  -------  -------  -------  Interchange fee Income          $   907  $   954  $   839  $   826  $   847  Other Non-Interest Income       $ 3,247  $ 2,950  $ 3,132  $ 4,986  $ 3,361  Total Non-Interest Income       $ 4,154  $ 3,904  $ 3,971  $ 5,812  $ 4,208  Total Non-Interest Income/Avg.                                                Assets                            1.96%    1.84%    1.87%    2.73%    1.99% Non-Interest Expense            $ 8,797  $ 8,737  $ 8,705  $ 8,752  $ 8,534  Non-Interest Expense/Avg.                                                     Assets                            4.15%    4.11%    4.11%    4.11%    4.03%                                                                                                                                                           FISCAL YEAR COMPARISON (In                                                    thousands)                         2013       2012       2011       2010                                     ---------  ---------  ---------  ---------  Interchange fee Income           $   3,526  $   3,385  $   3,317        N/A  Other Non-Interest Income        $  14,315  $  12,125  $  12,226        N/A  Total Non-Interest Income        $  17,841  $  15,510  $  15,543  $  15,960  Total Non-Interest Income/Avg.                                                Assets                               2.10%      1.88%      2.01%      2.09% Non-Interest Expense             $  34,991  $  33,714  $  31,131  $  31,229  Non-Interest Expense/Avg. Assets      4.12%      4.09%      4.03%      4.10%    Net Income and Dividends   On August 30, 2013, the board of directors declared a $0.375 per share quarterly dividend. Based on the closing price of the Company's common stock of $45.54 per share on August 30, 2013, the annualized dividend yield was 3.33%. Since 2003, the Company has increased dividends for eleven consecutive years. During fiscal 2013, the Company declared dividends totaling $1.475 per share.                                                                                   QUARTERLY COMPARISON             Sep '13  Jun '13  Mar '13  Dec '12  Sep '12                                 -------- -------- -------- -------- -------- Dividends Declared Per Share    $  0.375 $   0.37 $   0.00 $   0.73 $  0.365 Basic Earnings Per Common Share $   1.05 $   0.96 $   0.76 $   1.51 $   1.02 Diluted Earnings Per Common                                                   Share                          $   1.03 $   0.95 $   0.75 $   1.49 $   1.01                                                                                                                                                           FISCAL YEAR COMPARISON              2013       2012       2011       2010                                     ---------- ---------- ---------- ---------- Dividends Declared Per Share     $    1.475 $    1.455 $    1.435 $     1.42 Basic Earnings Per Common Share  $     4.29 $     3.55 $     3.49 $     3.40 Diluted Earnings Per Common                                                   Share                           $     4.22 $     3.51 $     3.45 $     3.37    Teche Holding Company is the parent company of Teche Federal Bank, which operates twenty offices in South Louisiana and serves over 86,000 customers. Teche is the fourth largest publicly traded bank holding company based in Louisiana with over $856 million in assets. Deposits at Teche Federal Bank are insured up to the legal maximum amount by the Federal Deposit Insurance Corporation (FDIC). Teche Holding Company's common stock is traded under the symbol "TSH" on the NYSE MKT.  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)                                                New Iberia, LA                                                          Selected Financial Data                                                            (UNAUDITED)                                                                            THREE MONTHS ENDED                                            ------------------------------------------------  Condensed Statements of      Sep.      Jun.      Mar.      Dec.      Sep.     Income                      2013      2013      2013      2012      2012                               --------  --------  --------  --------  --------  Interest Income            $  9,463  $  9,392  $  9,002  $  9,571  $  9,836  Interest Expense              1,591     1,630     1,697     1,832     1,895                             --------  --------  --------  --------  --------  Net Interest Income           7,872     7,762     7,305     7,739     7,941  Provision for Loan Losses         -         -       250       150       500                             --------  --------  --------  --------  --------  Net Interest Income after                                                     Provision for Loan Losses    7,872     7,762     7,055     7,589     7,441  Non Interest Income           4,154     3,904     3,971     5,812     4,208  Non Interest Expense          8,797     8,737     8,705     8,752     8,534                             --------  --------  --------  --------  --------  Income Before Income Taxes    3,229     2,929     2,321     4,649     3,115  Income Taxes                  1,082       976       762     1,577     1,042                             --------  --------  --------  --------  --------  Net Income                 $  2,147  $  1,953  $  1,559  $  3,072  $  2,073                             ========  ========  ========  ========  ========                                                                               Selected Financial Data                                                      Dividends Declared Per                                                        Share                     $  0.375  $   0.37  $   0.00  $   0.73  $  0.365  Basic Earnings Per Common                                                     Share                     $   1.05  $   0.96  $   0.76  $   1.51  $   1.02  Diluted Earnings Per                                                          Common Share              $   1.03  $   0.95  $   0.75  $   1.49  $   1.01  Annualized Return on Avg.                                                     Assets                        1.01%     0.92%     0.74%     1.44%     0.98% Annualized Return on Avg.                                                     Equity                        9.63%     8.89%     7.19%    14.17%     9.81% Annualized Return on Avg.                                                     Tangible Equity (1)          10.05%     9.27%     7.52%    14.80%    10.25% Yield on Interest Earning                                                     Assets                        4.91%     4.85%     4.66%     4.92%     5.07% Cost of Interest Bearing                                                      Liabilities                   0.97%     1.00%     1.04%     1.11%     1.14% Spread                         3.93%     3.86%     3.62%     3.80%     3.93% Net Interest Margin            4.08%     4.01%     3.78%     3.98%     4.10% Non-Interest Income/Avg.                                                      Assets                        1.96%     1.84%     1.87%     2.73%     1.99% Non-Interest Expense/Avg.                                                     Assets                        4.15%     4.11%     4.11%     4.11%     4.03% Quarterly Net Charge-                                                         offs/Avg. Loans               0.02%     0.01%     0.05%     0.07%     0.05% Weighted avg. shares                                                          Outstanding                                                                   Basic                       2,036     2,030     2,038     2,039     2,028    Diluted                     2,078     2,064     2,066     2,064     2,061  AVERAGE BALANCE SHEET DATA                                                   Total Assets               $847,261  $849,265  $847,615  $851,126  $846,114  Earning assets             $771,019  $773,856  $772,248  $778,592  $775,399  Loans                      $676,957  $655,058  $641,192  $667,191  $665,952  Interest-bearing deposits  $549,331  $547,249  $538,889  $527,476  $521,708  Total deposits             $646,746  $648,985  $640,504  $623,689  $612,785  Total stockholders' equity $ 89,187  $ 87,892  $ 86,682  $ 86,713  $ 84,525                                                                                (1) Eliminates the effect of goodwill and the core deposit intangible         assets and the related amortization expense on a tax affected basis. The     amount was calculated using the following information.                                                                                                   Average Stockholders'                                                         Equity                    $ 89,187  $ 87,892  $ 86,682  $ 86,713  $ 84,525  Less average goodwill and                                                     other intangible assets,                                                     net of related income                                                        taxes                        3,653     3,655     3,656     3,657     3,659                             --------  --------  --------  --------  --------  Average Tangible Equity    $ 85,534  $ 84,237  $ 83,026  $ 83,056  $ 80,866                             ========  ========  ========  ========  ========                                                                               Net Income                 $  2,147  $  1,953  $  1,559  $  3,072  $  2,073  Plus Amortization of core                                                     deposit intangibles, net                                                     of related income taxes          1         1         1         1         1                             --------  --------  --------  --------  --------  Net Income, as adjusted    $  2,148  $  1,954  $  1,560  $  3,073  $  2,074                             ========  ========  ========  ========  ========                                                                                                                                                                                                                                                                    TECHE HOLDING COMPANY                                            (Dollars in thousands, except per share data)                                                New Iberia, LA                                                          Selected Financial Data                                                            (UNAUDITED)                                                                                                               Condensed Statements of      Sep.      Sep.      Sep.      Sep.      Sep.     Income                      2013      2012      2011      2010      2009                               --------  --------  --------  --------  --------  Interest Income            $ 37,428  $ 39,134  $ 39,358  $ 41,336  $ 44,237  Interest Expense              6,750     8,080     9,168    11,704    15,297                             --------  --------  --------  --------  --------  Net Interest Income          30,678    31,054    30,190    29,632    28,940  Provision for Loan Losses       400     1,910     3,900     3,896     3,026                             --------  --------  --------  --------  --------  Net Interest Income after                                                     Provision for Loan Losses   30,278    29,144    26,290    25,736    25,914  Non Interest Income          17,841    15,510    15,543    15,960    15,852  Non Interest Expense         34,991    33,714    31,131    31,229    31,372                             --------  --------  --------  --------  --------                                                                               Income Before Income Taxes   13,128    10,940    10,702    10,467    10,394  Income Taxes                  4,397     3,655     3,474     3,366     3,258                             --------  --------  --------  --------  --------  Net Income (loss)          $  8,731  $  7,285  $  7,228  $  7,101  $  7,136                             ========  ========  ========  ========  ========  Selected Financial Data                                                      Dividends Declared Per                                                        Share                     $  1.475  $  1.455  $  1.435  $   1.42  $   1.41  Basic Earnings Per Common                                                     Share                     $   4.29  $   3.55  $   3.49  $   3.40  $   3.38  Diluted Earnings Per                                                          Common Share              $   4.22  $   3.51  $   3.45  $   3.37  $   3.35  Annualized Return on Avg.                                                     Assets                        1.03%     0.88%     0.94%     0.93%     0.91% Annualized Return on Avg.                                                     Equity                        9.96%     8.80%     9.12%     9.43%     9.98% Annualized Return on Avg.                                                     Tangible Equity (1)          10.40%     9.21%     9.58%     9.94%    10.49% Yield on Interest Earning                                                     Assets                        4.84%     5.17%     5.58%     5.93%     6.12% Cost of Interest Bearing                                                      Liabilities                   1.03%     1.25%     1.51%     1.91%     2.40% Spread                         3.81%     3.92%     4.07%     4.02%     3.73% Net Interest Margin            3.96%     4.10%     4.28%     4.25%     4.01% Non-Interest Income/Avg.                                                      Assets                        2.10%     1.88%     2.01%     2.09%     2.03% Non-Interest Expense/Avg.                                                     Assets                        4.12%     4.09%     4.03%     4.10%     4.02% Net Charge-offs/Avg. Loans     0.17%     0.26%     0.82%     0.24%     0.29% Weighted avg. shares                                                          Outstanding                                                                   Basic                       2,036     2,052     2,069     2,089     2,110    Diluted                     2,068     2,076     2,092     2,107     2,127  AVERAGE BALANCE SHEET DATA                                                   Total Assets               $848,831  $825,036  $771,988  $762,355  $781,187  Earning assets             $773,939  $757,488  $705,481  $697,315  $722,409  Loans                      $660,218  $643,224  $590,354  $599,134  $606,751  Interest-bearing deposits  $540,730  $520,162  $517,938  $512,040  $533,022  Total deposits             $639,955  $608,259  $598,070  $578,310  $597,559  Total stockholders' equity $ 87,620  $ 82,811  $ 79,229  $ 75,279  $ 71,479                                                                               (1) Eliminates the effect of goodwill and the core deposit intangible         assets and the related amortization expense on a tax affected basis. The     amount was calculated using the following information.                                                                                                   Average Stockholders'                                                         Equity                    $ 87,620  $ 82,811  $ 79,229  $ 75,279  $ 71,479  Less average goodwill and                                                      other intangible assets,                                                     net of related income                                                        taxes                        3,652     3,661     3,671     3,673     3,715                             --------  --------  --------  --------  --------  Average Tangible Equity    $ 83,968  $ 79,150  $ 75,558  $ 71,606  $ 67,764                             ========  ========  ========  ========  ========                                                                               Net Income                 $  8,731  $  7,285  $  7,228  $  7,101  $  7,136  Plus Amortization of core                                                     deposit intangibles, net                                                     of related income taxes          4         7        12        19        28                             --------  --------  --------  --------  --------  Net Income, as adjusted    $  8,735  $  7,292  $  7,240  $  7,120  $  7,164                             ========  ========  ========  ========  ========                                                                                                                                                                                                                                                                                                                                                 TECHE HOLDING COMPANY                                            (Dollars in thousands, except per share data)                                                New Iberia, LA                                                               Balance Sheet                                                                 (UNAUDITED)                                                               Sep.      Jun.      Mar.      Dec.      Sep.                                 2013      2013      2013      2012      2012                               --------  --------  --------  --------  --------  SmartGrowth Loans                                                              Consumer                 $129,571  $122,379  $115,803  $113,365  $110,235    Commercial                224,217   216,887   212,359   220,463   215,212    Home Equity                41,628    41,737    42,107    42,546    43,233    SmartMortgage Loans       113,561   110,586   104,040   100,859   111,072                             --------  --------  --------  --------  --------  Total SmartGrowth Loans     508,977   491,589   474,309   477,233   479,752  Mortgage Loans (owner                                                         occupied conforming)       175,426   176,188   168,989   165,364   194,650                             --------  --------  --------  --------  --------                              684,403   667,777   643,298   642,597   674,402  Allowance for Loan Losses    (7,868)   (8,038)   (8,135)   (8,234)   (8,559)                            --------  --------  --------  --------  --------  Loans Receivable, Net       676,535   659,739   635,163   634,363   665,843                                                                               Cash and Securities         116,511   116,709   162,262   142,406   124,080  Goodwill and Other                                                            Intangibles                  3,653     3,654     3,656     3,657     3,659  Foreclosed Real Estate          741       950       639       697       513  Other                        59,224    58,769    58,609    58,575    57,867                             --------  --------  --------  --------  --------  TOTAL ASSETS               $856,664  $839,821  $860,329  $839,698  $851,962                             --------  --------  --------  --------  --------                                                                               SmartGrowth Deposits                                                           Checking                 $245,392  $252,278  $259,014  $230,845  $220,268    Money Market               50,652    49,768    52,077    54,955    55,251    Savings                   203,010   209,896   210,636   204,241   198,667                             --------  --------  --------  --------  --------  Total Smart Growth                                                            Deposits                   499,054   511,942   521,727   490,041   474,186  Time Deposits               151,737   135,490   138,728   140,598   143,536                             --------  --------  --------  --------  --------  Total Deposits              650,791   647,432   660,455   630,639   617,722                                                                               FHLB Advances               108,997    98,757   107,903   117,034   142,751  Other Liabilities             7,815     6,971     5,340     7,258     7,948  Stockholders' Equity         89,061    86,661    86,631    84,767    83,541                             --------  --------  --------  --------  --------  TOTAL LIABILITIES AND                                                         STOCKHOLDERS' EQUITY      $856,664  $839,821  $860,329  $839,698  $851,962                             ========  ========  ========  ========  ========                                                                               Ratio of Equity to Assets     10.40%    10.32%    10.07%    10.09%     9.81% Tangible Equity Ratio (1)     10.01%     9.92%     9.69%     9.70%     9.42% Total Risk-Based Capital                                                      Ratio                        14.31%    14.31%    14.38%    14.34%    14.09% Book Value per Common                                                         Share                     $  43.47  $  42.82  $  42.40  $  41.65  $  41.09  Tangible Book Value Per                                                       Common Share (1)          $  41.68  $  41.06  $  40.62  $  39.86  $  39.29  Shares Outstanding (in                                                        thousands)                   2,049     2,024     2,043     2,035     2,033  Non-performing                                                                Assets/Total Assets           0.39%     0.72%     0.68%     1.20%     1.28% ALLL/Loans                     1.15%     1.20%     1.26%     1.28%     1.27% ALLL/NPLs                    307.34%   158.84%   158.54%    87.76%    82.52%                                                                              (1) Eliminates the effect of goodwill and the core deposit intangible         assets and the related amortization expense on atax affected basis. The      amount was calculated using the following information.                                                                                                   Stockholders' Equity       $ 89,061  $ 86,661  $ 86,631  $ 84,767  $ 83,541  Less goodwill and other                                                       Intangible assets, net of                                                    related income taxes        (3,651)   (3,651)   (3,654)   (3,656)   (3,655)                            --------  --------  --------  -- ------  --------  Tangible Stockholders'                                                        Equity                    $ 85,410  $ 83,010  $ 82,977  $ 81,111  $ 79,886                             ========  ========  ========  ========  ========                                                                               Total Assets               $856,664  $839,821  $860,329  $839,698  $851,962  Less goodwill and other                                                       Intangible assets, net of                                                    related income taxes        (3,651)   (3,651)   (3,654)   (3,656)   (3,655)                            --------  --------  --------  --------  --------  Total Tangible Assets      $853,013  $836,170  $856,675  $836,042  $848,307                             ========  ========  ========  ========  ========                                                                                                                                                                                                                                                                    TECHE HOLDING COMPANY                                             (Dollars in thousands, except per share data)                                                New Iberia, LA                                                               Balance Sheet                                                              Fiscal Comparison                                                               (UNAUDITED)                                                               Sep.      Sep.      Sep.      Sep.      Sep.                                 2013      2012      2011      2010      2009                               --------  --------  --------  --------  --------  SmartGrowth Loans                                                              Consumer                 $129,571  $110,235  $108,849  $111,571  $108,013    Commercial                224,217   215,212   209,460   212,933   210,201    Home Equity                41,628    43,233    48,799    53,405    58,348    SmartMortgage Loans       113,561   111,072    92,910    86,959    83,775                             --------  --------  --------  --------  --------  Total SmartGrowth Loans     508,977   479,752   460,018   464,868   460,337  Mortgage Loans (owner                                                         occupied conforming)       175,426   194,650   148,584   131,023   134,996                             --------  --------  --------  --------  --------                              684,403   674,402   608,602   595,891   595,333  Allowance for Loan Losses    (7,868)   (8,559)   (8,331)   (9,256)   (6,806)                            --------  --------  --------  --------  --------  Loans Receivable, Net       676,535   665,843   600,271   586,635   588,527                                                                               Cash and Securities         116,511   124,080   134,902   115,217   125,058  Goodwill and Other                                                            Intangibles                  3,653     3,659     3,670     3,687     3,715  Foreclosed Real Estate          741       513     1,405     1,181     1,953  Other                        59,224    57,867    52,955    54,804    45,818                             --------  --------  --------  --------  --------  TOTAL ASSETS               $856,664  $851,962  $793,203  $761,524  $765,071                             ========  ========  ========  ========  ========                                                                               SmartGrowth Deposits                                                           Checking                 $245,392  $220,268  $190,822  $173,206  $165,796    Money Market               50,652    55,251    54,970    60,246    95,461    Savings                   203,010   198,667   190,727   166,734   106,479                             --------  --------  --------  --------  --------  Total Smart Growth                                                            Deposits                   499,054   474,186   436,519   400,186   367,736  Time Deposits               151,737   143,536   162,063   179,169   217,733                             --------  --------  --------  --------  --------  Total Deposits              650,791   617,722   598,582   579,355   585,469                                                                               FHLB Advances               108,997   142,751   108,184   100,017   100,628  Other Liabilities             7,815     7,948     6,450     6,639     7,490  Stockholders' Equity         89,061    83,541    79,987    75,513    71,484                             --------  --------  --------  --------  --------  TOTAL LIABILITIES AND                                                         STOCKHOLDERS' EQUITY      $856,664  $851,962  $793,203  $761,524  $765,071                             ========  ========  ========  ========  ========                                                                               Ratio of Equity to Assets     10.40%     9.81%    10.08%     9.92%     9.34% Tangible Equity Ratio (1)     10.01%     9.42%     9.67%     9.48%     8.90% Total Risk-Based Capital                                                      Ratio                        14.31%    14.09%    14.30%    13.52%    12.72% Book Value per Common                                                         Share                     $  43.47  $  41.09  $  38.79  $  36.19  $  34.09  Tangible Book Value Per                                                       Common Share (1)          $  41.68  $  39.29  $  37.02  $  34.43  $  32.33  Shares Outstanding (in                                                        thousands)                   2,049     2,033     2,062     2,082     2,097  Non-performing                                                                Assets/Total Assets           0.39%     1.28%     1.55%     2.06%     1.19% ALLL/Loans                     1.15%     1.27%     1.37%     1.55%     1.14% ALLL/NPLs                    307.34%    82.52%    76.63%    63.92%    95.44%                                                                              (1) Eliminates the effect of goodwill and the core deposit intangible         assets and the related amortization expense on a tax affected basis. The     amount was calculated using the following information.                                                                                                   Stockholders' Equity       $ 89,061  $ 83,541  $ 79,987  $ 75,513  $ 71,484  Less goodwill and other                                                       Intangible assets, net of                                                    related income taxes        (3,651)   (3,655)   (3,659)   (3,673)   (3,692)                            ---- ----  --------  --------  --------  --------  Tangible Stockholders'                                                        Equity                    $ 85,410  $ 79,886  $ 76,328  $ 71,840  $ 67,792                             ========  ========  ========  ========  ========                                                                               Total Assets               $856,664  $851,962  $793,203  $761,524  $765,071                                                                               Less goodwill and other                                                       Intangible assets, net of                                                    related income taxes        (3,651)   (3,655)   (3,659)   (3,673)   (3,692)                            --------  --------  --------  --------  --------  Total Tangible Assets      $853,013  $848,307  $789,544  $757,851  $761,379                             ========  ========  ========  ========  ========                                                                                                                                                                                                                                                                                                  90 Days                                                  Net        Net         +     90 Days +  Quarter-End Loan Data       Total  Charge-    Charge-      Non       Non     September 30, 2013          Loans    Offs      Offs      Accrual   Accrual   (In 000's)                 Dollars Dollars  Percentage   Dollars Percentage                            -------- -------  ----------   ------- ----------  Real Estate Loans                                                              Construction            $ 13,704 $    --        0.00%  $    --        0.0%   Permanent, Secured by:                                                         1-4 Dwelling Units:                                                            Revolving, Open-End                                                           Loans (HELOC)        22,939      --        0.00%        7        0.0%       All Other                                                                      Secured by First                                                              Liens             378,800      94        0.02%    2,319        0.7%         Secured by Junior                                                             Liens               5,909      --        0.00%       --        0.0%     Multifamily (5+                                                               Dwelling Units)        22,432       7        0.03%       --        0.0%     Nonresidential                                                                Property (Except                                                             Land)                 111,217      62        0.06%       --        0.0%     Land                    31,710      --        0.00%       63        0.2%                           -------- -------  ----------   ------- ----------          Consumer            21,361      --        0.00%       63        0.3%                           -------- -------  ----------   ------- ----------          Commercial          10,349      --        0.00%       --        0.0%                           -------- -------  ----------   ------- ----------  Subtotal - Real Estate                                                        Loans                    $586,711 $   163        0.03%  $ 2,389        0.4%                           -------- -------  ----------   ------- ----------                                                                               Non-Real Estate Loans:                                                         Commercial Loans        $ 30,685 $   (16)      (0.05%)      --        0.0%   Consumer Loans:                                                                Loans on Deposits        3,208      --          --        48        1.5%     Auto Loans               2,795      --          --        12        0.4%     Mobile Home Loans       43,199      17        0.04%      246        0.6%     Other                   17,806       6        0.03%       83        0.5%                           -------- -------  ----------   -------             Subtotal - Non Real                                                           Estate Loans             $ 97,693 $     7        0.01%  $   389        0.4%                           -------- -------  ----------   ------- ----------                                                                               Gross Loans               $684,404 $   170        0.02%  $ 2,778        0.4%                           ======== =======  ----------   ======= ----------                                                                               Non-accruals              $  2,425                                           90 + Days Past Due             353                                           OREO & Foreclosed              766                                                                     --------                                             Nonperforming Assets                                                          (Net)                  $  3,544                                                                     ========                                             Performing TDRs               --                                                                                                                                                                                                                                                                                                                                           90 Days                                                  Net        Net         +     90 Days +  Fiscal Year-End Loan Data   Total  Charge-    Charge-      Non       Non     September 30, 2013          Loans    Offs      Offs      Accrual   Accrual   (In 000's)                 Dollars Dollars  Percentage   Dollars Percentage                            -------- -------  ----------   ------- ----------  Real Estate Loans                                                              Construction            $ 13,704 $    --        0.00%  $    --        0.0%   Permanent, Secured by:                                                         1-4 Dwelling Units:                                                            Revolving, Open-End                                                           Loans (HELOC)        22,939      36        0.16%        7        0.0%       All Other                                                                      Secured by First                                                              Liens             378,800     557        0.15%    2,319        0.7%         Secured by Junior                                                             Liens               5,909      15        0.25%       --        0.0%     Multifamily (5+                                                               Dwelling Units)        22,432       7        0.03%       --        0.0%     Nonresidentia l                                                                Property (Except                                                             Land)                 111,217      78        0.07%       --        0.0%     Land                    31,710     157        0.50%       63        0.2%                           -------- -------  ----------   ------- ----------          Consumer            21,361      14        0.07%       63        0.3%                           -------- -------  ----------   ------- ----------          Commercial          10,349     143        1.38%       --        0.0%                           -------- -------  ----------   ------- ----------  Subtotal - Real Estate                                                        Loans                    $586,711 $   850        0.14%  $ 2,389        0.4%                           -------- -------  ----------   ------- ----------                                                                               Non-Real Estate Loans:                                                         Commercial Loans        $ 30,685 $    (3)      (0.01%)      --        0.0%   Consumer Loans:                                                                Loans on Deposits        3,208       1        0.03%       48        1.5%     Auto Loans               2,795      19        0.68%       12        0.4%     Mobile Home Loans       43,199     196        0.45%      246        0.6%     Other                   17,806      29        0.16%       83        0.5%                           -------- -------  ----------   -------             Subtotal - Non Real                                                           Estate Loans             $ 97,693 $   242        0.25%  $   389        0.4%                           -------- -------  ----------   ------- ----------                                                                               Gross Loans               $684,404 $ 1,092        0.16%  $ 2,778        0.4%                           ======== =======               ======= ----------                                                                               Non-accruals              $  2,425                                           90 + Days Past Due             353                                           OREO & Foreclosed              766                                                                     --------                                             Nonperforming Assets                                                          (Net)                  $  3,544                                                                     ========                                             Performing TDRs               --                                                                                                                                                                                                                                                                                                                                           90 Days                                                    Net       Net        +     90 Days +  Quarter-End Loan Data        Total   Charge-   Charge-     Non       Non     June 30, 2013                Loans    Offs      Offs     Accrual   Accrual   (In 000's)                  Dollars  Dollars Percentage  Dollars Percentage                             -------- -------- ----------  ------- ----------  Real Estate Loans                                                              Construction             $ 14,808 $     --       0.00% $    --        0.0%   Permanent, Secured by:                                                         1-4 Dwelling Units:                                                            Revolving, Open-End                                                           Loans (HELOC)       $ 22,028       21       0.10%      66        0.3%       All Other                                                                      Secured by First                                                              Liens              372,857       12       0.00%   3,261        0.9%         Secured by Junior                                                             Liens                6,468       --       0.00%      --        0.0%     Multifamily (5+                                                               Dwelling Units)         20,607       --       0.00%     951        4.6%     Nonresidential                                                                Property (Except                                                             Land)                  105,964       30       0.03%     150        0.1%     Land                     30,930        1       0.00%     359        1.2%                            -------- -------- ----------  ------- ----------          Consumer             20,437       --       0.00%      70        3.4%                            -------- -------- ----------  ------- ----------          Commercial           10,493        1       0.01%     289        2.8%                            -------- -------- ----------  ------- ----------  Subtotal - Real Estate                                                        Loans                     $573,622 $     64       0.01% $ 4,787        0.8%                            -------- -------- ----------  ------- ----------                                                                               Non-Real Estate Loans:                                                         Commercial Loans         $ 30,109 $     13       0.04% $    91        0.3%   Consumer Loans:                                                                Loans on Deposits         3,431       --       0.00%      24        0.7%     Auto Loans                2,647        6       0.02%      --        0.0%     Mobile Home Loans        40,692        1       0.00%     262        0.6%     Other                    17,236       14       0.08%      94        0.3%                            -------- -------- ----------  -------             Subtotal - Non Real Estate                                                    Loans                     $ 94,115       34       0.04% $   471        0.5%                            -------- -------- ----------  ------- ----------                                                                               Gross Loans                $667,777 $     98       0.01% $ 5,258        0.8%                            ======== ========             =======                                                                                          Non-accruals               $  4,926                                          90 + Days Past Due              332                                          OREO & Foreclosed               994                                                                     --------                                            Nonperforming Assets                                                          (Net)                   $  6,252                                                                     ========                                            P erforming TDRs                --                                                                                                                                                                                                                                                                                                                                          90 Days                                                  Net        Net         +     90 Days +  Quarter-End Loan Data      Total   Charge-    Charge-      Non       Non     March 31, 2013             Loans    Offs       Offs      Accrual   Accrual   (In 000's)                Dollars  Dollars  Percentage   Dollars Percentage                           -------- --------  ----------   ------- ----------  Real Estate Loans                                                              Construction           $ 14,902 $     --        0.00%  $    --        0.0%   Permanent, Secured by:                                                         1-4 Dwelling Units:                                                            Revolving, Open-                                                              End Loans (HELOC)   21,431       15        0.07%       28        0.1%       All Other                                                                      Secured by First                                                              Liens           $356,098      183        0.05%  $ 2,831        0.8%         Secured by                                                                    Junior Liens       6,625       --        0.00%       --        0.0%     Multifamily (5+                                                               Dwelling Units)       19,848       --        0.00%      911        4.6%     Nonresidential                                                                Property (Except                                                             Land)                103,626      (15)      (0.01%)     347        0.3%     Land                   30,000       34        0.11%      820        2.7%                          -------- --------  ----------   ------- ----------          Consumer           20,125       14        0.07%       96        0.5%                          -------- --------  ----------   ------- ----------          Commercial          9,875       20        0.20%      724        7.3%                          -------- --------  ----------   ------- ----------  Subtotal - Real Estate                                                        Loans                   $552,530      217        0.04%  $ 4,937        0.9%                          -------- --------  ----------   ------- ----------                                                                               Non-Real Estate Loans:                                                         Commercial Loans       $ 29,942 $     --        0.00%  $    14        0.0%   Consumer Loans:                                                                Loans on Deposits       3,416        1        0.03%       25        0.7%     Auto Loans              2,459       --        0.00%        5        0.2%     Mobile Home Loans      38,626      124        0.32%      225        0.6%     Other                  16,325        7        0.04%      123        0.8%                          -------- --------  ----------   -------             Subtotal - Non Real                                                           Estate Loans            $ 90,768      132        0.15%  $   392        0.4%                          -------- --------  ----------   ------- ----------                                                                               Gross Loans              $643,298 $    349        0.05%  $ 5,329        0.8%                          ======== ========               =======                                                                                          Non-accruals             $  4,994                                            90 + Days Past Due            335                                            OREO & Foreclosed             994                                                                     --------                                              Nonperforming Assets                                                          (Net)                 $  6,323                                                                     ========                                              Performing TDRs              --                                                                                                                                                                                                                                                                                                                                            90 Days                                                    Net       Net        +     90 Days +  Quarter-End Loan Data        Total   Charge-   Charge-     Non       Non     December 31, 2012            Loans    Offs      Offs     Accrual   Accrual   (In 000's)                  Dollars  Dollars Percentage  Dollars Percentage                             -------- -------- ----------  ------- ----------  Real Estate Loans                                                              Construction             $ 17,108 $     --       0.00% $    --        0.0%   Permanent, Secured by:                                                         1-4 Dwelling Units:                                                            Revolving, Open-End                                                           Loans (HELOC)         20,839       --       0.00%      68        0.3%       All Other                                                                      Secured by First                                                              Liens              347,104      285       0.08%   2,888        0.8%         Secured by Junior                                                             Liens                6,800       --       0.00%      --        0.0%     Multifamily (5+                                                               Dwelling Units)         20,112       --       0.00%     943        4.7%     Nonresidential                                                                Property (Except                                                             Land)                  103,307       --       0.00%     212        0.2%     Land                     34,040      121       0.36%   4,714       13.8%                            -------- -------- ----------  ------- ----------          Consumer             19,973       --       0.00%     177        0.9%                            -------- -------- ----------  ------- ----------          Commercial           14,067      121       0.86%   4,537       32.3%                            -------- -------- ----------  ------- ----------  Subtotal - Real Estate                                                        Loans                     $549,310 $    406       0.07% $ 8,825        1.6%                            -------- -------- ----------  ------- -- --------                                                                               Non-Real Estate Loans:                                                         Commercial Loans         $ 33,364 $     --       0.00% $    14        0.0%   Consumer Loans:                                                                Loans on Deposits         3,431       --       0.00%      50        1.5%     Auto Loans                2,198       13       0.59%       8        0.4%     Mobile Home Loans        38,055       54       0.14%     645        1.7%     Other                    16,239        2       0.01%      39        0.2%                            -------- -------- ----------  -------             Subtotal - Non Real Estate                                                    Loans                     $ 93,287 $     69       0.07% $   756        0.8%                            -------- -------- ----------  ------- ----------                                                                               Gross Loans                $642,597 $    475       0.07% $ 9,581        1.5%                            ======== ======== ----------   ======= ----------                                                                               Non-accruals               $  9,177                                          90 + Days Past Due              404                                          OREO & Foreclosed               683                                                                     --------                                            Nonperforming Assets                                                          (Net)                   $ 10,264                                                                     ========                                            Performing TDRs                --                                                                                                                                                                                                                                                                                                                                          90 Days                                                 Net        Net          +     90 Days +  Quarter-End Loan Data     Total   Charge-    Charge-       Non       Non     September 30, 2012        Loans    Offs       Offs       Accrual   Accrual   (In 000's)               Dollars  Dollars  Percentage    Dollars Percentage                          -------- --------  ----------   -------- ----------  Real Estate Loans                                                              Construction          $ 16,835 $     --        0.00%  $     --        0.0%   Permanent, Secured                                                            by:                                                                           1-4 Dwelling Units:                                                            Revolving, Open-                                                              End Loans                                                                    (HELOC)            20,641       --        0.00%       127        0.6%       All Other                                                                      Secured by                                                                    First Liens     383,954      285        0.07%     4,140        1.1%         Secured by                                                                    Junior Liens      6,892       --        0.00%       181        2.6%     Multifamily (5+                                                               Dwelling Units)      21,248       --        0.00%        --        0.0%     Nonresidential                                                                Property (Except                                                             Land)                99,347       26        0.03%       810        0.8%     Land                  32,652       (4)       0.01%     4,530        13.9%                         -------- --------  ----------   -------- ----------          Consumer          19,340       --        0.00%       186        1.0%                         -------- --------  ----------   -------- ----------          Commercial        13,312       (4)      (0.03%)    4,344       32.6%                         -------- --------  ----------   -------- ----------  Subtotal - Real Estate                                                        Loans                  $581,569 $    307        0.05%  $  9,788        1.7%                         -------- --------  ----------   -------- ----------                                                                               Non-Real Estate Loans:                                                         Commercial Loans      $ 34,032 $     --        0.00%  $      2        0.0%   Consumer Loans:                                                                Loans on Deposits      3,636       --        0.00%        89        2.4%     Auto Loans             2,112       --        0.00%        21        1.0%     Mobile Home Loans     37,030       30        0.08%       425        1.1%     Other                 16,023       15        0.09%        47        0.3%                         -------- --------  ----------   --------             Subtotal - Non Real                                                           Estate Loans           $ 92,833 $     45        0.05%  $    584        0.6%                         -------- --------  ----------   -------- ----------                                                                               Gross Loans             $674,402 $    352        0.05%  $ 10,372        1.5%                         ======== ========  ----------   ======== ----------                                                                               Non-accruals            $ 10,021                                             90 + Days Past Due           351                                             OREO & Foreclosed            490                                                                     --------                                               Nonperforming Assets                                                          (Net)                $ 10,862                                                                     ========                                               Performing TDRs             --                                                                                                                                                                                                                                                                                    Loans: Linked Quarter Comparison                                             Average Loan                                                                    Balances &                                                                   Yields (In    09/30/2013 09/30/2013  06/30/2013 06/30/2013   Change Change   000's)          Balance     Yield      Balance     Yield    Balance  Yield                 ---------- ----------  ---------- ----------  ------- ------  Real Estate                                                                   Loans                                                                         1-4 Family   $  417,925       4.78% $  405,580       4.89% $12,345  -0.11%   Commercial      141,727       4.96%    136,246       5.02%   5,481  -0.06%                ----------             ----------             -------         Total Real                                                                    Estate Loans  $  559,652       4.83% $  541,826       4.92% $17,826  -0.09%                                                                              Non-Real                                                                      Estate Loans                                                                  Commercial   $   30,588       5.31% $   30,088       5.15% $   500  -0.16%   Consumer         86,717       8.92%     83,144       9.26%   3,573  -0.34%                ----------             ----------             -------         Total Non-Real                                                                Estate Loans     117,305       7.98%    113,232       8.17% $ 4,073  -0.19%                                                                              Total All                                                                     Loans         $  676,957       5.37% $  655,058       5.48% $21,899  -0.11%                ==========             ==========             =======                                                                                                                                                                                                                                                   Loans: Prior Year Comparison                                                                                                                              Average Loan                                                                  Balances &                                                                   Yields (In    09/30/2013 09/30/2013  09/30/2012 09/30/2012   Change Change   000's)          Balance     Yield      Balance     Yield    Balance  Yield                 ---------- ----------  ---------- ----------  ------- ------  Real Estate                                                                   Loans                                                                         1-4 Family   $  408,585       4.82% $  401,968       5.08% $ 6,617  -0.26%   Commercial      137,275       5.05%    135,300       5.51%   1,975  -0.46 %                ----------             ----------             -------                        $  545,860       4.87% $  537,268       5.19% $ 8,592  -0.32%                                                                              Non-Real                                                                      Estate Loans                                                                  Commercial   $   31,893       5.23% $   28,543       5.79% $ 3,350  -0.56%   Consumer         82,465       9.04%     77,413       9.21%   5,052  -0.17%                ----------             ----------             -------                        $  114,358       7.98% $  105,956       8.29% $ 8,402  -0.31%                                                                              Total All                                                                     Loans         $  660,218       5.41% $  643,224       5.70% $16,994  -0.29%                ==========             ==========             =======                                                                                                                                                                                                                                                Interest-bearing Liabilities: Linked Quarter Comparison                                              09/30/           06/30/                              Average         09/30/   2013    06/30/   2013             Change             balances (In    2013    Avg.     2013    Avg.    Change    Avg.   %Balance   000's)        $Balance  Yield  $Balance  Yield  $Balance   Yield   Change                  -------- ------  -------- ------  --------  ------  --------    NOW Accounts $144,813   0.12% $147,593   0.17% $ (2,780)  -0.05%     -1.9%   Non-interest                                                                  bearing                                                                      Deposits      97,415   0.00%  101,736   0.00%   (4,321)   0.00%     -4.2%                -------- ------  -------- ------  --------  ------  --------      Checking                                                                      Total     $242,228   0.07% $249,329   0.10% $ (7,101)  -0.03%     -2.8%                                                                                Savings                                                                       Accounts    $205,634   0.11% $211,168   0.13% $ (5,534)  -0.02%     -2.6%   Money Market                                                                  Accounts      50,539   0.06%   51,260   0.09%     (721)  -0.03%     -1.4%                -------- ------  -------- ------  --------  ------  --------                                                                                 Total Smart                                                                   Growth                                                                       Deposits    $498,401   0.08% $511,757   0.11% $(13,356)  -0.03%     -2.6%                                                                                Time                                                                          Deposits    $148,345   1.47% $137,228   1.54% $ 11,117   -0.07%      8.1%                                                                                Total                                                                         Deposits    $646,746   0.40% $648,985   0.41% $ (2,239)  -0.01%     -0.3%                                                                                FHLB                                                                          Advances    $103,833   3.62% $106,484   3.60% $ (2,651)   0.02%     -2.5%                                                  --------                                                                                                 Total                                                                         Interest-                                                                    bearing                                                                      liabilities   $653,164   0.97% $653,733   1.00% $   (569)  -0.03%     -0.1%                ========         ========         ========                                                                                                  Non-interest                                                                  bearing                                                                      Deposits      $ 97,415   0.00% $101,736   0.00% $ (4,321)   0.00%     -4.2%                                                                                                                                                                                                                                        Interest-bearing Liabilities: Average Quarter Balances                                               09/30/           09/30/                              Average         09/30/   2013    09/30/   2012             Change             balances (In    2013    Avg.     2012    Avg.    Change    Avg.   %Balance   000's)        $Balance  Yield  $Balance  Yield  $Balance   Yield   Change                  -------- ------  -------- ------  --------  ------  --------    NOW Accounts $144,813   0.12% $124,017   0.22% $ 20,796   -0.10%     16.8%   Non-interest                                                                  bearing                                                                      Deposits      97,415   0.00%   91,077   0.00%    6,338    0.00%      7.0%                -------- ------  -------- ------  --------  ------  --------      Checking                                                                      Total     $242,228   0.07% $215,094   0.12% $ 27,134   -0.05%     12.6%                                                                                Savings                                                                       Accounts    $205,634   0.11% $198,079   0.33% $  7,555   -0.22%      3.8%   Money Market                                                                  Accounts      50,539   0.06%   54,791   0.18%   (4,252)  -0.12%     -7.8%                -------- ------  -------- ------  --------  ------  --------                                                                                 Total Smart                                                                   Growth                                                                       Deposits    $498,401   0.08% $467,964   0.22% $ 30,437   -0.14%      6.5%                                                                                Time                                                                          Deposits    $148,345   1.47% $144,821   1.75% $  3,524   -0.28%      2.4%                                                                              Total Deposits $646,746   0.40% $612,785   0.58% $ 33,961   -0.18%      5.5%                                                                                FHLB                                                                          Advances    $103,833   3.62% $141,565   2.85% $(37,732)   0.77%    -26.7%                                                                              Total                                                                         Interest-                                                                    bearing                                                                      liabilities   $653,164   0.97% $663,273   1.14% $(10,109)  -0.17%     -1.5%                ========         ========         ========                                                                                                 Non-interest                                                                  bearing                                                                      Deposits      $ 97,415   0.00% $ 91,077   0.00% $  6,338    0.00%      7.0%                                                                                                                                                                                                                                        Interest-bearing Liabilities: Year-Over Year Average Year Comparison                                 09/30/           09/30/                              Average         09/30/   2013    09/30/   2012             Change             balances (In    2013    Avg.     2012    Avg.    Change    Avg.   %Balance   000's)        $Balance  Yield  $Balance  Yield  $Balance   Yield   Change                  -------- --- ---  -------- ------  --------  ------  --------    NOW Accounts $139,928   0.17% $119,611   0.20% $ 20,317   -0.03%     17.0%   Non-interest                                                                  bearing                                                                      Deposits      99,225   0.00%   88,097   0.00%   11,128    0.00%     12.6%                -------- ------  -------- ------  ========  ======  ========      Checking                                                                      Total     $239,153   0.10% $207,708   0.11% $ 31,445   -0.01%     15.1%   Savings                                                                       Accounts    $206,972   0.20% $192,985   0.32% $ 13,987   -0.12%      7.2%   Money Market                                                                  Accounts      52,152   0.11%   53,872   0.23%   (1,720)  -0.12%     -3.2%                -------- ------  -------- ------  --------  ------  --------    Total Smart                                                                   Growth                                                                       Deposits    $498,277   0.14% $454,565   0.22% $ 43,712   -0.08%      9.6%   Time                                                                          Deposits    $141,678   1.53% $153,694   2.02% $(12,016)  -0.49%     -7.8%   Total                                                                         Deposits    $639,955   0.45% $608,259   0.67% $ 31,696   -0.22%      5.2%   FHLB                                                                          Advances    $114,077   3.40% $127,433   3.13% $(13,356)   0.27%    -10.5%                                                            ------            Total                                                                         Interest-                                                                    bearing                                                                      liabilities   $654,807   1.03% $647,595   1.25% $  7,212   -0.22%      1.1%                --------         -------- ======            ======            Non-interest                                                                  bearing                                                                      Deposits      $ 99,225   0.00% $ 88,097   0.00% $ 11,128    0.00%     12.6%                                                                                                                                                                                                                                        Interest-bearing Liabilities:                                                Three Year Comparison                                                                                09/30/           09/30/                              Average         09/30/   2013    09/3 0/   2010             Change             balances (In    2013    Avg.     2010    Avg.    Change    Avg.   %Balance   000's)        $Balance  Yield  $Balance  Yield  $Balance   Yield   Change                  -------- ------  -------- ------  --------  ------  --------    NOW Accounts $139,928   0.17% $104,176   0.41% $ 35,752   -0.24%     34.3%   Non-interest                                                                  bearing                                                                      Deposits      99,225   0.00%   66,177   0.00%   33,048    0.00%     49.9%                -------- ------  -------- ------  --------  ------  --------      Checking                                                                      Total     $239,153   0.10% $170,353   0.25% $ 68,800   -0.15%     40.4%   Savings                                                                       Accounts    $206,972   0.20% $143,408   0.91% $ 63,564   -0.71%     44.3%   Money Market                                                                  Accounts      52,152   0.11%   71,958   0.39%  (19,806)  -0.28%    -27.5%                -------- ------  -------- ------  --------  ------  --------    Total Smart                                                                   Growth                                                                       Deposits    $498,277   0.14% $385,719   0.52% $112,558   -0.38%     29.2%   Time                                                                          Deposits    $141,678   1.53% $192,591   2.67% $(50,913)  -1.14%    -26.4% Total Deposits $639,955   0.45% $578,310   1.24% $ 61,645   -0.79%     10.7%   FHLB                                                                          Advances    $114,077   3.40% $102,254   4.44% $ 11,823   -1.04%     11.6% Total                                                                         Interest-                                                                    bearing                                                                      liabilities   $654,807   1.03% $614,387   1.90% $ 40,420   -0.87%      6.6%                ========         ======== ------            ======            Non-interest                                                                  bearing                                                                      Deposits      $ 99,225   0.00% $ 66,177   0.00% $ 33,048    0.00%     49.9%                                                                                                                                                                                                                                        Quarter-End Loan                                                              Quality Details                                                             September 30,                                                                 2013               Total                %    Special   %               %    (In Thousands)      Loans   Classified Total  Mention Total    Pass   Total                    -------- ----------- -----  ------- -----  -------- -----  Commercial Loans                                                               Commercial Land $ 10,349 $        --   0.0% $    --   0.0% $ 10,349 100.0%   Commercial                                                                    Construction      8,593          --   0.0%      --   0.0%    8,593 100.0%   Commercial Real                                                               Estate          133,649       5,160   3.8%   1,781   1.3%  126,708  94.9%   Commercial Non                                                                Real Estate      30,685       1,311   4.3%      91   0.3%   29,283  95.4%                   -------- ----------- -----  ------- -----  -------- -----      Total                                                                         Commercial   $183,276 $     6,471   3.5% $ 1,872   1.0% $174,933  95.5%                                                                              Residential Loans                                                              Residential                                                                   Construction   $  5,112 $        --   0.0% $   360   7.0% $  4,752  93.0%   Residential       409,693       3,514   0.9%     316   0.1%  405,863  99.0%                   -------- ----------- -----  ------- -----  -------- -----      Total                                                                         Residential  $414,805 $     3,514   0.8% $   676   0.2% $410,615  99.0%                                                                              Consumer Loans                                                                 Mobile Homes    $ 43,199 $       246   0.6% $    --   0.0% $ 42,953  99.4%   Consumer Other    45,170         266   0.6%      --   0.0%   44,904  99.4%                   -------- ----------- -----  ------- -----  -------- -----      Total                                                                         Consumer     $ 88,369 $       512   0.6% $    --   0.0% $ 87,857  99.4%                                                                              Total All Loans   $686,450 $    10,497   1.5% $ 2,548   0.4% $673,405  98.1%                   ======== =========== =====  ======= =====  ======== =====                                                                                                                                                                                                                                                                                                                                                                                                   Quarter-End Loan Quality Details                                             June 30, 2013        Total               %    Special   %               %    (In Thousands)       Loans  Classified Total  Mention Total    Pass   Total                     -------- ---------- -----  ------- -----  -------- -----  Commercial Loans                                                               Commercial Land  $ 10,493 $      289   2.8% $    --   0.0% $ 10,204  97.2%   Commercial                                                                    Construction       8,931         --   0.0%     362   4.1%    8,569  95.9%   Commercial Real                                                               Estate           126,571      5,291   4.2%   1,809   1.4%  119,471  94.4%   Commercial Non                                                                Real Estate       30,109      1,319   4.4%     117   0.4%   28,673  95.2%                    -------- ---------- -----  ------- -----  -------- -----      Total                                                                         Commercial    $176,104 $    6,899   3.9% $ 2,288   1.3% $166,917  94.8%                                                                              Residential Loans                                                              Residential                                                                   Construction    $  5,877 $       --   0.0% $    --   0.0% $  5,877 100.0%   Residential       403,309      4,432   1.1%     319   0.1%  398,558  98.8%                    -------- ---------- -----  ------- -----  -------- -----      Total                                                                         Residential   $409,186 $    4,432   1.1% $   319   0.1% $404,435  98.8%                                                                              Consumer Loans                                                                 Mobile Homes     $ 40,692 $      262   0.6% $    --   0.0% $ 40,430  99.4%   Consumer Other     43,751        347   0.8%      --   0.0%   43,404  99.2%                    -------- ---------- -----  ------- -----  -------- -----      Total Consumer $ 84,443 $      609   0.7% $    --   0.0% $ 83,834  99.3%                                                                              Total All Loans    $669,733 $   11,940   1.8% $ 2,607   0.4% $655,186  97.8%                    ======== ========== =====  ======= =====  ======== =====                                                                                                                                                                                                                                         Quarter-End Loan Quality Details                                                                                                                                                                                                       March 31, 2013       Total               %    Special   %               %    (In Thousands)       Loans  Classified Total  Mention Total    Pass   Total                     -------- ---------- -----  ------- -----  -------- -----  Commercial Loans                                                               Commercial Land  $  9,875 $      724   7.3% $    --   0.0% $  9,151  92.7%   Commercial                                                                    Construction       7,600         --   0.0%     360   4.7%    7,240  95.3%   Commercial Real                                                               Estate           123,474      4,184   3.4%   1,825   1.5%  117,465  95.1%   Commercial Non                                                                Real Estate       29,942        146   0.5%     223   0.7%   29,573  98.8%                    -------- ---------- -----  ------- -----  -------- -----      Total                                                                         Commercial    $170,891 $    5,054   3.0% $ 2,408   1.4% $163,429  95.6%                                                                              Residential Loans                                                              Residential                                                                   Construction    $  7,302 $       --   0.0% $    --   0.0% $  7,302 100.0%   Residential       386,076      4,362   1.1%     320   0.1%  381,394  98.8%                    -------- ---------- -----  ------- -----  -------- -----      Total                                                                         Residential   $393,378 $    4,362   1.1% $   320   0.1% $388,696  98.8%                                                                              Consumer Loans                                                                 Mobile Homes     $ 38,626 $      225   0.6% $    --   0.0% $ 38,401  99.4%   Consumer Other     42,325        405   1.0%      17   0.0%   41,903  99.0%                    -------- ---------- -----  ------- -----  -------- -----      Total Consumer $ 80,951 $      630   0.8% $    17   0.0% $ 80,304  99.2%                                                                              Total All Loans    $645,220 $   10,046   1.6% $ 2,745   0.4% $632,429  98.0%                    ======== ========== =====  ======= =====  ======== =====                                                                                                                                                                                                                                          Quarter-End Loan Quality Details                                                                                                                          December 31, 2012    Total               %    Special   %               %    (In Thousands)       Loans  Classified Total  Mention Total    Pass   Total                     -------- ---------- -----  ------- -----  -------- -----  Commercial Loans                                                               Commercial Land  $ 14,067 $    4,537  32.3% $    --   0.0% $  9,530  67.7%   Commercial                                                                    Construction       7,486         --   0.0%     367   4.9%    7,119  95.1%   Commercial Real                                                               Estate           123,418      3,389   2.7%     863   0.7%  119,166  96.6%   Commercial Non                                                                Real Estate       33,364        157   0.5%     227   0.7%   32,980  98.8%                    -------- ---------- -----  ------- -----  -------- -----      Total                                                                         Commercial    $178,335 $    8,083   4.5% $ 1,457   0.8% $168,795  94.7%                                                                              Residential Loans                                                              Residential                                                                   Construction    $  9,622 $       --   0.0% $    --   0.0% $  9,622 100.0%   Residential       376,546      4,252   1.1%     325   0.1%  371,969  98.8%                    -------- ---------- -----  ------- -----  -------- -----      Total                                                                         Residential   $386,168 $    4,252   1.1% $   325   0.1% $381,591  98.8%                                                                              Consumer Loans                                                                 Mobile Homes     $ 38,055 $      576   1.5% $    --   0.0% $ 37,479  98.5%   Consumer Other     41,840        291   0.7%     195   0.5%   41,354  98.8%                    -------- ---------- -----  ------- -----  -------- -----      Total Consumer $ 79,895 $      867   1.1% $   195   0.2% $ 78,833  98.7%                                                                              Total All Loans    $644,398 $   13,202   2.0% $ 1,977   0.3% $629,219  97.6%                    ======== ========== =====  ======= =====  ======== =====                                                                                                                                                                                                                                         Quarter-End Loan Quality Details                                                                                                                          September 30, 2012   Total               %    Special   %               %    (In Thousands)       Loans  Classified Total  Mention Total    Pass   Total                     -------- ---------- -----  ------- -----  -------- -----  Commercial Loans                                                               Commercial Land  $ 13,312 $    4,658  35.0% $    17   0.1% $  8,637  64.9%   Commercial                                                                    Construction       7,357         --   0.0%     370   5.0%    6,987  95.0%   Commercial Real                                                               Estate           120,558      3,524   2.9%     872   0.7%  116,162  96.4%   Commercial Non                                                                Real Estate       34,032        154   0.5%      50   0.1%   33,828  99.4%                    -------- ---------- -----  ------- -----  -------- -----      Total                                                                         Commercial    $175,259 $    8,336   4.8% $ 1,309   0.7% $165,614  94.5%                                                                              Residential Loans                                                                Residential                                                                   Construction    $  9,478 $       --   0.0% $    --   0.0% $  9,478 100.0%   Residential       413,500      4,561   1.1%     328   0.1%  408,611  98.8%                    -------- ---------- -----  ------- -----  -------- -----      Total                                                                         Residential   $422,978 $    4,561   1.1% $   328   0.1% $418,089  98.8%                                                                              Consumer Loans                                                                 Mobile Homes     $ 37,030 $      424   1.1% $    --   0.0% $ 36,606  98.9%   Consumer Other     41,110        254   0.6%     176   0.4%   40,680  99.0%                    -------- ---------- -----  ------- -----  -------- -----      Total Consumer $ 78,140 $      678   0.9% $   176   0.2% $ 77,286  98.9%                                                                              Total All Loans    $676,377 $   13,575   2.0% $ 1,813   0.3% $660,989  97.7%                    ======== ========== =====  ======= =====  ======== =====      Contact: Patrick Little President & CEO Teche Holding Company (337) 560-7151