Teche Holding Company Earns Record $2.42 per Share in First Nine Months

FRANKLIN, LA, Jul 30 (MARKET WIRE) --
Teche Holding Company (NYSE Amex: TSH), the parent company for Teche
Federal Bank, today reported that solid capital ratios, increasing
interest margin, and steady increases in SmartGrowth deposits & loans,
contributed to record earnings per share for the first nine months of its
fiscal year and strong third quarter earnings. Net income for the fiscal
third quarter ended June 30, 2009, grew to $1.73 million, or $0.81 per
diluted share, compared to $1.66 million, or $0.78 per diluted share in
the immediate prior quarter.

Fiscal year-to-date, Teche's net income was a record $2.42 per diluted
share compared to $1.64 per diluted share for the fiscal nine months ended
June 30, 2008.

For the past four quarters, Teche income was a solid $3.41 per share.

"We generated another healthy quarterly profit in our third quarter and
are on pace for a record year with increased SmartGrowth deposits and
loans boosting our net interest margin," said Patrick O. Little,
President and Chief Executive Officer.

"These notable results were generated despite an ongoing national
recession, economic uncertainties, and two items that reduced diluted
earnings per share $0.42 so far this year. Specifically we booked
impairment charges of $0.30 per diluted share related to our securities
portfolio and an FDIC special assessment (levied on all insured banks) of
$0.12 per share. During these difficult times, our dedicated employees
continue to provide excellent customer service which resulted in an
increase in both SmartGrowth deposits and loans," said Little. SmartGrowth
deposits are made up of Teche's core deposits and exclude time deposits.
SmartGrowth loans consist of all loans, excluding home mortgage loans.

"As a result of rebuilding efforts following several seasons of major
devastating hurricanes, economic conditions in South Louisiana continue to
be more favorable than in the rest of the U.S.," continued Little. "In
fact, the State's appeal as a place for business continues to grow with
Louisiana's solid diversified economy, low unemployment rates and its
resilient housing market."

According to the Louisiana Economic Development Economic Highlights
reported in March 2009, job growth was higher and unemployment was lower
than the rest of the nation, which together led to a positive year in 2008
for population growth and immigration. Dozens of companies announced
expansions in or relocations to Louisiana, kicking off projects that will
result in over 17,000 new jobs, $2.5 billion in new capital investment,
$45 million per year in new state tax revenues and billions of dollars in
new sales for small businesses (Source: Louisiana Economic Development,
The Economic Year in Review, created 3/13/2009).

Fiscal Third Quarter Financial 2009 Highlights

-- Record fiscal year to date EPS of $2.42.

-- Fiscal year to date operating revenue increased 8.1% to a record $33.5
million.

-- Net interest margin (NIM) expanded to 4.12% for the quarter, up 20
basis points in the quarter and 36 basis points from a year ago.

-- Fiscal year to date return on average tangible equity of 10.13%,
return on average assets of 0.88%.

-- Net interest income increased 13.2%, to $7.5 million from $6.7
million.

-- SmartGrowth Deposits increased 7.3%, or $25.3 million from June 30,
2008, and accounted for 61% of total deposits.

-- SmartGrowth Loans increased 8.3% to $462.1 million from $426.6 million
at June 30, 2008, and account for 74.7% of total loans.

-- Asset quality remains strong, with nonperforming assets at 1.27% of
total assets and quarterly net charge-offs of only 0.03% of average loans.

-- Teche paid 57 consecutive cash dividends since June 1995 and
consistently increased annual cash dividends to its present $1.40 per
share, generating an annualized yield of 4.32%.

-- Teche capital ratios remained well above the regulatory requirements
for well-capitalized institutions, with a solid total risk-based capital
ratio of 12.15% compared to 11.64% as of June 30, 2008. Tangible common
equity to tangible assets stood at 8.44% compared to 8.11% a year earlier.

OPERATING RESULTS

"Our record profits for the past nine months of fiscal 2009 are nothing
short of remarkable, considering the state of the national economy," said
Little. "Even with the fact that we booked $0.42 per share in various
charges this fiscal year, Teche still is posting record bottom line
earnings."

"We were also very pleased with our return on assets and return on
equity," said Little. Fiscal year to date, the annualized return on
average assets was 0.88% and return on average tangible equity was
10.13%. In this same quarter in fiscal 2008, the company booked charges
totaling $4.1 million resulting in a loss of $0.22 per share.

"Our top-line results are even more impressive," said Little. Revenues for
the quarter, consisting of net interest income (before provision for loan
losses) plus non-interest income, increased 9.1% to a record $11.6 million
for the fiscal third quarter, compared to $10.6 million for fiscal third
quarter 2008, reflecting strong loan and deposit quality and expanding net
interest margin.

For the first nine months of fiscal 2009, revenue increased 8.1% to a
record $33.5 million, compared to $31.0 million for the first nine months
of fiscal 2008. Net interest income before the provision for loan losses
increased 12.3% to $21.4 million for the first nine months of fiscal 2009,
compared to $19.1 million for the same period a year ago.

The table below reflects Teche's operating revenues in millions over the
past five quarters.

Jun Mar Dec Sep Jun
Operating Revenue '09 '09 '08 '08 '08
------ ------ ------ ------ ------
Net Interest Income $ 7.6 $ 7.1 $ 6.8 $ 6.8 $ 6.7
Non Interest Income $ 4.0 $ 4.1 $ 4.0 $ 3.9 $ 3.9
------ ------ ------ ------ ------
Operating Revenue $ 11.6 $ 11.2 $ 10.8 $ 10.7 $ 10.6
====== ====== ====== ====== ======

Fiscal third quarter 2009 marked the seventh consecutive quarter of
NIM expansion for Teche as the company benefits from the success of its
SmartGrowth strategy. For the first nine months of fiscal 2009, net
interest margin was 3.96% compared to 3.71% for the first nine months of
fiscal 2008.

"While our loan yields fell by 34 basis points, we reduced our cost of
funds by 79 basis points, thus expanding our net interest margin by 36
basis points to 4.12%, for the quarter, compared to 3.76% in the third
fiscal quarter a year ago and 3.92% in the linked quarter," remarked
Little.

Net interest income, before provision for loan losses increased 13.2% to
$7.5 million in fiscal third quarter of 2009 compared to $6.7 million in
fiscal third quarter a year ago.

Non-interest income remained relatively stable. For the quarter,
non-interest income amounted to 2.04% of average assets, down slightly
compared to 2.11% for the linked quarter and 2.06% a year ago. Fiscal year
to date, non-interest income was 2.07% of average assets compared to 2.14%
for the same period in fiscal 2008.

For the quarter, non-interest expense was $8.2 million or 4.15% of average
assets, compared to the linked quarter of $7.7 million or 3.94% of average
assets, an increase of 6.9%, primarily due to a special FDIC assessment.
Compared to the same quarter in fiscal 2008, non-interest expense
decreased from $9.0 million, or 4.69% of average assets, to $8.2 million
or 4.15%, primarily due to unusual charges in fiscal 2008.

ASSET QUALITY

"We remain focused on credit quality and capital adequacy, and we compare
favorably to our peers on both measures," stated Little. "As a result of
our solid commitment to sound underwriting standards, effective servicing
and diligent collection efforts, our credit quality remained strong, and
we believe our strong credit culture will continue to serve us well. The
bulk of the increase in nonperforming assets (NPAs) is in our mortgage
loan sector, where our market has experienced very little decline in home
values. The result has been very low charge-offs. We believe we are well
secured."

The following table sets forth asset quality ratios for each quarter over
the last year:

Jun '09 Mar '09 Dec '08 Sep '08 Jun '08
------- ------- ------- ------- -------
Net Charge-offs/Loans 0.03% 0.03% 0.01% 0.01% 0.04%
ALLL/NPLs 74.30% 84.60% 87.00% 86.80% 121.10%
ALLL/NPAs 68.00% 77.80% 78.80% 82.00% 103.70%
ALLL/Loans 1.10% 1.05% 0.93% 0.94% 0.93%
Non-Accrual Loans/Loans 1.07% 0.84% 0.81% 0.64% 0.56%
NPAs/Assets 1.27% 1.05% 0.93% 0.88% 0.68%
------- ------- ------- ------- -------

Net charge-offs in fiscal third quarter were $192,000, or 0.03% of
average loans, compared to $213,000, or 0.04% of average loans, for the
same period a year ago. For the first nine months of fiscal 2009, net
charge-offs totaled $449,000, or 0.07% of average loans, compared to
$278,000, or 0.05% of average loans for the first nine months of fiscal
2008.

The allowance for loan and lease losses (ALLL) increased to $6.8 million,
or 1.10% of total loans at quarter end, compared with $5.5 million, or
0.93% of total loans, at June 30, 2008, in part reflecting growth in the
loan portfolio and non-performing loans. At March 31, 2009, the allowance
for loan and lease losses was $6.5 million, or 1.05% of total loans.

Nonperforming assets totaled $10.1 million, or 1.27% of total assets, at
June 30, 2009, compared to $8.3 million, or 1.05% of total assets at March
31, 2009, and $5.3 million, or 0.68% of total assets, a year ago.
Nonperforming assets consist of non-accrual loans, accruing loans 90 days
or more past due, restructured loans and other real estate owned.

BALANCE SHEET

Teche's total assets increased 1.7% to $789.5 million, at June 30, 2009,
compared to $776.7 million a year ago, but decreased from $795.5 million
at March 31, 2009 with lower levels of cash and securities in the
portfolio. Total net loans grew 5.3% to $612.0 million at June 30, 2009,
compared to $581.3 million a year ago and less than one percent compared
to $607.1 million at March 31, 2009. Teche originated $59.5 million in
loans during the current quarter, including $48.9 million in SmartGrowth
loans, of which $29.6 million were commercial loans..

At June 30, 2009 SmartGrowth Loans comprised 74.7% of the total loan
portfolio, compared to 72.7% a year ago. SmartGrowth Loans increased 8.3%
to $462.1 million at June 30, 2009 compared to $426.6 million a year ago,
and increased 1.4% from $455.7 million at March 31, 2009. Consumer and
commercial loans increased 13.1% and 9.4% respectively over the past year.
Consumer loans now total $106.6 million at June 30, 2009 and commercial
loans increased to $209.1 million. "We have again posted solid gains in
both commercial and consumer loans this past quarter and have been
encouraged by the gradual increase in our SmartGrowth Loans," commented
Little.

SmartGrowth deposits increased 7.3% to $370.9 million at June 30, 2009
compared to $345.6 million a year ago. Following the run off of $28.3
million of high cost time deposits, total deposits were $605.4 million at
June 30, 2009, compared $608.4 million at June 30, 2008. SmartGrowth
Deposits Accounts at June 30, 2009 were 61.3% of total deposits compared
to 56.8% a year ago.

"Checking deposits were down seasonally this quarter," said Little, "but
based on the last nine months we expect to book another year-over-year
gain in checking and total SmartGrowth deposits again this year."

Stockholders' equity remained stable at $70.1 million, as earnings of $1.7
million for the quarter were offset primarily due to cash dividends and
stock repurchases during the quarter.

Total cash and securities in the portfolio continued to gradually decline
to $127.4 million from $142.8 million a year ago. The vast majority of our
securities are government-sponsored enterprise mortgage-backed securities,
with only $4.7 million, or 0.60% of total assets in private label mortgage
backed securities. Of these securities, approximately 55% are rated AAA,
AA or A at June 30, 2009.

Private Label Mortgage Backed Securities as
of June 30, 2009

Carrying Value
as of June 30, 2009
------------------ Percent
Face $ in % of of
Bond Ratings Value Millions Face Assets
--------- --------- -------- --------

AAA to A $ 3.4 $ 2.6 76% 0.33%

BBB to B $ 2.0 $ 1.7 85% 0.21%

CCC to C $ 2.5 $ 0.5 20% 0.06%
--------- --------- -------- --------
$ 7.9 $ 4.7 59% 0.60%
========= ========= ======== ========

CAPITAL ADEQUACY

"Our capital and liquidity levels remain healthy and consequently, we did
not see the need to participate in the TARP program," added Little. "We
continue to believe that this decision best serves our customers,
employees and shareholders due to the government's unclear mandate and
changing restrictions on participating banks. We have the necessary
resources to continue making high quality loans to businesses and
consumers in our market. In addition, we will continue to prudently
deploy our resources to the benefit of our customers and our
shareholders."

Teche's capital ratios were very strong at the end of fiscal third quarter
and all capital ratios continue to exceed the "well-capitalized"
requirements established by banking regulators.

The Tier 1 capital ratio was 11.17% at June 30, 2009, compared with 11.02%
at March 31, 2009 and 10.64% at June 30, 2008. Total risk-based ratio was
12.15% at June 30, 2009, compared with 11.98% at March 31, 2009 and 11.64%
at June 30, 2008.

Tangible shareholders' equity improved to $66.4 million, or 8.44% of total
assets at June 30, 2009, compared with $62.7 million, or 8.11% of total
assets at June 30, 2008. Book value per share increased to $33.43 at June
30, 2009, from $31.47 a year ago and tangible book value per share
increased to $31.67 at quarter end from $29.70 a year ago.

On June 30, 2009, Teche paid a $0.35 per share quarterly cash dividend to
shareholders, generating an annualized yield of 4.23% based on the recent
share price. Teche has paid 57 consecutive quarterly cash dividends since
June 1995. "Because of the solid performance of our balance sheet, we are
able to continue rewarding shareholders with quarterly cash dividends,"
Little noted.

ABOUT TECHE HOLDING COMPANY

Teche Holding Company is the parent company of Teche Federal Bank, which
operates twenty offices in South Louisiana and provides various deposit,
loan and investments services to over 60,000 customers. Founded in 1934,
Teche Federal Bank is the fourth largest publicly traded (NYSE Amex: TSH)
bank based in Louisiana with over $780 million in assets. Deposits at
Teche Federal Bank are insured up to the legal maximum amount by the
Federal Deposit Insurance Corporation (FDIC).

Teche Federal Bank has earned a Four Star-Rating of "Excellent" from Bauer
Financial, Inc., based on March 31, 2009 results. Bauer Financial is an
independent rating agency that has been reporting on and analyzing the
performance of U.S. banks since 1983. Bauer Financial's Star Ratings are
based on the Call Report data that all banks are required to file
quarterly with the FDIC. Criteria used to determine the appropriate
rating includes, but is not limited to: 1) the capital ratio (net worth
to total assets), 2) liquidity, 3) profitability and 4) the level of
delinquent loans. Click here to access the Bauer Financial website:
www.bauerfinancial.com.

www.teche.com

Statements contained in this news release, which are not historical facts,
are forward-looking statements as that term is defined in the Private
Securities Litigation Reform Act of 1995. Such forward-looking statements
are subject to risks and uncertainties which could cause actual results to
differ materially from those currently anticipated due to a number of
factors, which include, but are not limited to, factors discussed in
documents filed by Teche Holding Company with the Securities and Exchange
Commission from time to time. The Company does not undertake to update
any forward-looking statement, whether written or oral, that may be made
from time to time by or on behalf of the Company.

TECHE HOLDING COMPANY

(Dollars in thousands, except per share data)
Franklin, LA
Statements of Income
(UNAUDITED)

Three months Three months Three months
ended ended ended
June March June
2009 2009 2008
------------ ------------ -----------

Interest Income $ 11,130 $ 11,013 $ 11,465
Interest Expense 3,583 3,950 4,798
------------ ------------ -----------
Net Interest Income 7,547 7,063 6,667
Provision for Loan Losses 550 1,035 295
------------ ------------ -----------
Net Interest Income after
Provision for Loan Losses 6,997 6,028 6,372
Non Interest Income 4,036 4,114 3,951
Non Interest Expense 8,204 7,678 8,977
------------ ------------ -----------
Income Before Gain on Sales of
Securities and Income Taxes 2,829 2,464 1,346
Gain (Loss) on Securities (434) 18 (2,581)
Income Taxes 662 826 (759)
------------ ------------ -----------

Net Income (loss) $ 1,733 $ 1,656 $ (476)
============ ============ ===========

Selected Financial Data
------------ ------------ -----------

Dividends Declared Per Share $ 0.35 $ 0.35 $ 0.345
Basic Earnings (Loss) Per Common
Share $ 0.82 $ 0.78 $ (0.22)
Diluted Earnings (Loss) Per
Common Share $ 0.81 $ 0.78 $ (0.22)
Annualized Return on Avg. Assets 0.88% 0.85% (0.25)%
Annualized Return on Avg. Equity 9.55% 9.24% (2.79)%
Annualized Return on Avg.
Tangible Equity (1) 10.11% 9.79% (2.89)%
Yield on Interest Earning Assets 6.07% 6.11% 6.47 %
Cost of Interest Bearing
Liabilities 2.22% 2.47% 3.01 %
Spread 3.85% 3.64% 3.46 %
Net Interest Margin 4.12% 3.92% 3.76 %
Non-Interest Income/Avg. Assets 2.04% 2.11% 2.06 %
Non-Interest Expense/Avg. Assets 4.15% 3.94% 4.69 %
Quarterly Net Charge Offs/Avg.
Loans 0.03% 0.03% 0.04 %
Weighted avg. shares Outstanding
Basic 2,107 2,118 2,118
Diluted 2,125 2,128 2,118

AVERAGE BALANCE SHEET DATA
------------ ------------ -----------
Total Assets $ 790,499 $ 780,054 $ 766,358
Earning assets $ 733,368 $ 720,998 $ 708,836
Loans $ 615,616 $ 606,951 $ 607,091
Interest-bearing deposits $ 538,403 $ 532,033 $ 545,711
Total deposits $ 611,738 $ 596,291 $ 600,763
Total stockholders' equity $ 72,568 $ 71,689 $ 68,283

(1) Eliminates the effect of goodwill and the core deposit intangible
assets and the related amortization expense on a tax-effected basis.
The amount was calculated using the following information

Average Stockholders' Equity $ 72,568 $ 71,689 $ 68,283
Less average goodwill and other
intangible assets, net of
related income taxes 3,703 3,708 3,733
------------ ------------ -----------
Average Tangible Equity $ 68,865 $ 67,981 $ 64,550
============ ============ ===========

Net Income (Loss) $ 1,733 $ 1,656 $ (476)
Plus Amortization of core
deposit intangibles, net of
related income taxes 7 7 10
------------ ------------ -----------
Net Income (Loss), as adjusted $ 1,740 $ 1,663 $ (466)

TECHE HOLDING COMPANY

(Dollars in thousands, except per share data)
Franklin, LA
Statements of Income
(UNAUDITED)

Nine months Nine months
ended ended
June June
2009 2008
------------ ------------

Interest Income $ 33,357 $ 34,217
Interest Expense 11,912 15,113
------------ ------------
Net Interest Income 21,445 19,104
Provision for Loan Losses 1,740 665
------------ ------------
Net Interest Income after
Provision for Loan Losses 19,705 18,439
Non Interest Income 12,104 11,940
Non Interest Expense 23,478 22,948
------------ ------------
Income Before Gain on Sales of
Securities and Income Taxes 8,331 7,431
Gain (Loss) on Securities (852) (2,581)
Income Taxes 2,326 1,260
------------ ------------

Net Income $ 5,153 $ 3,590
============ ============

Selected Financial Data
------------ ------------

Dividends Declared Per Share $ 1.05 $ 1.02
Basic Earnings Per Common Share $ 2.44 $ 1.66
Diluted Earnings Per Common Share $ 2.42 $ 1.64
Annualized Return on Avg. Assets 0.88% 0.64%
Annualized Return on Avg. Equity 9.57% 6.96%
Annualized Return on Avg.
Tangible Equity (1) 10.13% 7.42%
Yield on Interest Earning Assets 6.16% 6.64%
Cost of Interest Bearing Liabilities 2.49% 3.27%
Spread 3.67% 3.38%
Net Interest Margin 3.96% 3.71%
Non-Interest Income/Avg. Assets 2.07% 2.14%
Non-Interest Expense/Avg. Assets 4.01% 4.11%
FYTD Charge Offs/Avg. Loans 0.07% 0.05%
Weighted avg. shares Outstanding
Basic 2,114 2,166
Diluted 2,131 2,183

AVERAGE BALANCE SHEET DATA
------------ ------------
Total Assets $ 780,224 $ 744,468
Earning assets $ 721,646 $ 686,565
Loans $ 606,072 $ 590,694
Interest-bearing deposits $ 532,405 $ 522,774
Total deposits $ 602,766 $ 576,013
Total stockholders' equity $ 71,814 $ 68,761

(1) Eliminates the effect of goodwill and the core deposit intangible
assets and the related amortization expense on a tax-effected basis.
The amount was calculated using the following information

Average Stockholders' Equity $ 71,814 $ 68,761
Less average goodwill and other intangible
assets, net of related income taxes 3,712 3,742
Average Tangible Equity $ 68,102 $ 65,019
============ ============

Net Income $ 5,153 $ 3,590
Plus Amortization of core deposit
intangibles, net of related income taxes 22 29
------------ ------------
Net Income, as adjusted $ 5,175 $ 3,619
============ ============

TECHE HOLDING COMPANY
(Dollars in thousands, except per share data)
Franklin, LA
Balance Sheets
(UNAUDITED)
at

June 30, Mar. 31, Sept. 30, June 30,
2009 2009 2008 2008
--------- --------- --------- ---------

SmartGrowth Loans
Consumer $ 106,563 $ 104,524 $ 98,632 $ 94,242
Commercial 209,091 204,973 187,791 191,085
Home Equity 58,216 57,852 55,713 55,180
Alternative Mortgage Loans 88,200 88,305 87,404 86,060
--------- --------- --------- ---------
Total SmartGrowth Loans 462,070 455,654 429,540 426,567
Mortgage Loans (owner occupied
conforming) 156,759 157,954 160,596 160,243
--------- --------- --------- ---------
618,829 613,608 590,136 586,810
Allowance for Loan Losses (6,836) (6,478) (5,545) (5,470)
--------- --------- --------- ---------
Loans Receivable, Net 611,993 607,130 584,591 581,340

Cash and Securities 127,441 139,149 135,819 142,771
Goodwill and Other Intangibles 3,723 3,734 3,756 3,767
Foreclosed Real Estate 604 672 343 759
Other 45,752 44,811 44,979 48,041
--------- --------- --------- ---------
TOTAL ASSETS $ 789,513 $ 795,496 $ 769,488 $ 776,678
========= ========= ========= =========

SmartGrowth Deposits
Checking $ 168,733 $ 175,477 $ 144,601 $ 144,375
Money Market 108,668 120,865 130,399 145,887
Savings 93,485 78,944 55,390 55,296
--------- --------- --------- ---------
Total SmartGrowth Deposits 370,886 375,286 330,390 345,558
Time Deposits 234,556 236,403 258,838 262,862
--------- --------- --------- ---------
Total Deposits 605,442 611,689 589,228 608,420

FHLB Advances 106,890 107,089 104,877 96,246
Other Liabilities 7,129 6,656 7,339 5,609
Stockholders' Equity 70,052 70,062 68,044 66,403
--------- --------- --------- ---------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 789,513 $ 795,496 $ 769,488 $ 776,678
========= ========= ========= =========

Ratio of Equity to Assets 8.87% 8.81% 8.84% 8.55%
Tangible Equity Ratio (2) 8.44% 8.38% 8.40% 8.11%
Risk-Based Capital Ratio 12.15% 11.98% 12.21% 11.64%
Book Value per Common Share $ 33.43 $ 33.08 $ 32.12 $ 31.47
Tangible Book Value Per Common
Share (2) $ 31.67 $ 31.33 $ 30.37 $ 29.70
Non-performing Assets/Total
Assets 1.27% 1.05% 0.88% 0.68%
Shares Outstanding (in
thousands) 2,095 2,118 2,118 2,110

(2) Eliminates the effect of goodwill and the core deposit intangible
assets and the related accumulated amortization on a tax-effected
basis. The amount was calculated using the following information:

Stockholders' Equity $ 70,052 $ 70,062 $ 68,044 $ 66,403
Less goodwill and other
Intangible assets, net of
related income taxes (3,697) (3,704) (3,721) (3,726)
--------- --------- --------- ---------
Tangible Stockholders' Equity $ 66,355 $ 66,358 $ 64,323 $ 62,677
========= ========= ========= =========

Total Assets $ 789,513 $ 795,496 $ 769,488 $ 776,678
Less goodwill and other
Intangible assets, net of
related income taxes (3,697) (3,704) (3,721) (3,726)
--------- --------- --------- ---------
Total Tangible Assets $ 785,816 $ 791,792 $ 765,767 $ 772,952
========= ========= ========= =========

Allowance for Loan Loss

(in 000's) JUN '09 MAR '09 DEC '08 SEP '08 JUN '08
======== ======== ======== ======== =======
Beginning ALLL $ 6,478 $ 5,631 $ 5,545 $ 5,470 $ 5,388
Provision for Loan Losses 550 1,035 155 160 295
Net Charge-offs 192 188 69 85 213
Ending ALLL $ 6,836 $ 6,478 $ 5,631 $ 5,545 $ 5,470

Quarter-End Loan
Data
90 Days + 90 Days +
June 30, 2009 Total Charge- Charge- Non Non
Loans Offs Offs Accrual Accrual
Dollars Dollars Percentage Dollars Percentage
--------- ---------- --------- ---------- ---------
Real Estate Loans
Construction $ 26,778 $ 0 0.0% $ 54 0.20%
Permanent, Secured
by:
1-4 Dwelling
Units:
Revolving,
Open-End
Loans 16,443 0 0.00% 50 0.30%
All Other
Secured by
First Liens 330,075 53 0.02% 4,325 1.31%
Secured by
Junior
Liens 13,761 0 0.00% 82 0.60%
Multifamily (5+
Dwelling Units) 25,749 0 0.00% 2,724 10.58%
Nonresidential
Property
(Except Land) 82,159 4 0.00% 1,043 1.27%
Land 36,177 0 0.00% 402 1.11%

Non-Real Estate
Loans:
Commercial Loans 29,518 51 0.17% 199 0.67%
Consumer Loans:
Loans on
Deposits 7,936 1 0.01% 84 1.06%
Auto Loans 3,127 28 0.90% 10 0.32%
Mobile Home
Loans 40,285 44 0.11% 211 0.52%
Other 6,821 11 0.16% 12 0.18%
--------- ---------- ----------
Gross Loans $ 618,829 $ 192 0.03% $ 9,196 1.49%
========= ========== ==========

Non-accruals $ 6,627
OREO & Foreclosed 856
90 + Days Past Due 2,569
---------
Nonperforming
Assets $ 10,052
=========

NPAs/Assets 1.27%
NPAs/(Loans + OREO) 1.62%
LLR/Loans 1.10%
Net Charge-offs/
Loans 0.03%

Average Loan
Balances & Yields

Linked Quarter
Comparison 06/30/2009 03/30/2009 Change Change
Balance Yield Balance Yield Balance Yield
----------- ----- ----------- ----- ---------- -----
Real Estate Loans
1-4 Family $ 373,458 6.20% $ 374,209 6.26% $ (751) -0.06%
Commercial 135,699 6.11% 127,325 6.15% 8,374 -0.04%
----------- ----------- ----------
509,157 6.17% 501,534 6.23% 7,623 -0.06%

Non-Real Estate
Loans
Commercial 30,158 6.38% 28,849 6.37% 1,309 -0.01%
Consumer 77,859 9.30% 76,567 9.17% 1,292 0.13%
----------- ----------- ----------
108,017 8.49% 105,416 8.40% 2,601 -0.09%

----------- ----------- ----------
Total All Loans $ 617,174 6.58% $ 606,950 6.61% $ 10,224 -0.03%
=========== =========== ==========

Average Loan
Balances & Yields

Prior Year
Comparison 06/30/2009 06/30/2008 Change Change
Balance Yield Balance Yield Balance Yield
----------- ----- ----------- ----- ---------- -----

Real Estate Loans
1-4 Family $ 373,458 6.20% $ 396,464 6.49% $ (23,006) -0.29%
Commercial 135,699 6.11% 118,425 6.96% 17,274 -0.85%
----------- ----------- ----------
509,157 6.17% 514,889 6.60% (5,732) -0.43%

Non-Real Estate
Loans
Commercial 30,158 6.38% 25,651 7.02% 4,507 -0.64%
Consumer 77,859 9.30% 67,799 9.35% 10,060 -0.05%
----------- ----------- ----------
108,017 8.49% 93,450 8.71% 14,567 -0.22%

----------- ----------- ----------
Total All Loans $ 617,174 6.58% $ 608,339 6.92% $ 8,835 -0.34%
=========== =========== ==========

Interest-bearing Liabilities: Linked Quarter Comparison

Average balances 06/30/2009 03/31/2009 Change Change %
$ Avg. $ Avg. $ Avg. Balance
Balance Yield Balance Yield Balance Yield Change
-------- ---- -------- ---- ------- ----- ------
NOW Accounts $106,830 0.48% $102,831 0.60% $ 3,999 -0.12% 3.9%
Non-interest
bearing Deposits 66,278 0.00% 64,437 0.00% 1,841 0.00% 2.6%
-------- ---- -------- ---- ------- ----- ------
Checking Total 173,108 0.30% 167,268 0.37% 5,840 -0.07% 3.5%

Savings Accounts 86,301 0.87% 65,605 0.90% 20,696 -0.03% 31.5%
Money Market
Accounts 114,771 0.91% 120,379 1.46% (5,608) -0.55% -4.7%
-------- ---- -------- ---- ------- ----- ------

Total SmartGrowth
Deposits 374,180 0.62% 353,252 0.84% 20,928 -0.22% 5.9%

Time Deposits 230,896 3.13% 243,039 3.27% (12,143) -0.14% -5.0%

Total Deposits $605,076 1.58% $596,291 1.83% $ 8,785 -0.25% 1.5%

FHLB Advances 106,193 4.51% 106,795 4.57% (602) -0.06% -0.6%
-------- -------- -------

Total Interest-
bearing liabilities $644,991 2.22% $638,649 2.47% $ 6,342 -0.25% 1.0%
======== ======== =======

Interest-bearing Liabilities: Prior Year Comparison

Average balances 06/30/2009 06/30/2008 Change Change %
$ Avg. $ Avg. $ Avg. Balance
Balance Yield Balance Yield Balance Yield Change
-------- ---- -------- ---- ------- ----- ------

NOW Accounts $106,830 0.48% $ 85,869 0.51% $20,961 -0.03% 24.4%
Non-interest
bearing Deposits 66,278 0.00% 56,195 0.00% 10,083 0.00% 17.9%
-------- ---- -------- ---- ------- ----- ------
Checking Total 173,108 0.30% 142,064 0.31% 31,044 -0.01% 21.9%

Savings Accounts 86,301 0.87% 54,479 0.76% 31,822 0.11% 58.4%
Money Market
Accounts 114,771 0.91% 147,934 2.38% (33,163) -1.47% -22.4%
-------- ---- -------- ---- ------- ----- ------

Total SmartGrowth
Deposits 374,180 0.62% 344,477 1.27% 29,703 -0.65% 8.6%

Time Deposits 230,896 3.13% 257,429 4.09% (26,533) -0.96% -10.3%

Total Deposits $605,076 1.58% $601,906 2.48% $ 3,170 -0.90% 0.5%

FHLB Advances 106,193 4.51% 92,646 4.62% 13,547 -0.11% 14.6%
-------- -------- -------

Total Interest-
bearing liabilities $644,991 2.22% $638,357 3.01% $ 6,634 -0.79% 1.0%
======== ======== =======

Contact:
Patrick Little
President & CEO
Teche Holding Company
(337) 560-7151

Copyright 2009, Market Wire, All rights reserved.

-0-