UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549  FORM 10-K (Mark One) x

                        Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended September 30, 2008
 - or - o

                        Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _______________ to _______________.
  Commission Number:  1-13712  TECHE HOLDING COMPANY(Exact name of Registrant as specified in its Charter)
  Louisiana

                        

                        72-1287456(State or other Jurisdiction of

                            Incorporation or Organization)

                        

                        (I.R.S. Employer Identification No.)
  1120 Jefferson Terrace, New Iberia, Louisiana

                        

                        

                        70560(Address of Principal Executive Offices)

                        

                        

                        (Zip Code)
  Registrant’s telephone number, including area code:(337) 560-7151  Securities registered pursuant to Section 12(b) of the Act:  Title of Each Class

                        

                        Name of Each Exchange on Which RegisteredCommon Stock, $0.01 par value

                        

                        NYSE Alternext US
  Securities registered pursuant to Section 12(g) of the Act:None  Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. YES o NO x  Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. YES o NO x  Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES x
            NO o  Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. x  Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):  Large accelerated filer o

                        

                        Accelerated filer oNon-accelerated filer   o

                            (Do not check if a smaller reporting company)

                        

                        Smaller reporting company x
  Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act). YES o NO x  The aggregate market value of the voting stock held by non-affiliates of the Registrant, based on the closing price of the Registrant’s Common Stock as quoted on the NYSE Alternext US on March 31, 2008, was $46.1 million.  As of December 22, 2008 there were 2,116,398 issued and outstanding shares of the Registrant’s Common Stock.  DOCUMENTS INCORPORATED BY REFERENCE  1.

                        Portions of the 2008 Annual Report to Stockholders (Parts I, II and IV)
 2.

                        Portions of the Proxy Statement for the 2009 Annual Meeting of Stockholders (Part III)
  
 TECHE HOLDING COMPANY  FORM 10-K  FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008  INDEX  PART 1

                        

                        

                        

                        PageItem 1.

                        

                        Business

                        

                        1Item 1A.

                        

                        Risk Factors

                        

                        21Item 1B.

                        

                        Unresolved Staff Comments

                        

                        21Item 2.

                        

                        Properties

                        

                        21Item 3.

                        

                        Legal Proceedings

                        

                        21Item 4.

                        

                        Submission of Matters to a Vote of Security Holders

                        

                        21PART IIItem 5.

                        

                        Market for Common Equity and Related Stockholder Matters and Issuer Purchases of Equity Securities

                        

                        21Item 6.

                        

                        Selected Financial Data

                        

                        22Item 7.

                        

                        Management’s Discussion and Analysis of Financial Condition and Results of Operations

                        

                        22Item 7A.

                        

                        Quantitative and Qualitative Disclosures About Market Risk

                        

                        22Item 8.

                        

                        Financial Statements and Supplementary Data

                        

                        22Item 9.

                        

                        Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

                        

                        22Item 9A(T).

                        

                        Controls and Procedures

                        

                        22Item 9B.

                        

                        Other Information

                        

                        23PART IIIItem 10.

                        

                        Directors, Executive Officers and Corporate Governance

                        

                        23Item 11.

                        

                        Executive Compensation

                        

                        23Item 12.

                        

                        Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

                        

                        24Item 13.

                        

                        Certain Relationships and Related Transactions, and Director Independence

                        

                        24Item 14.

                        

                        Principal Accountant Fees and Services

                        

                        25PART IVItem 15.

                        

                        Exhibits and Financial Statement Schedules

                        

                        25
   
  
 PART I  Teche Holding Company (the “Company” or “Registrant”) may from time to time make written or oral “forward-looking statements,” including statements contained in the Company’s filings with the Securities and Exchange Commission (including this Annual Report on Form 10-K and the exhibits thereto), in its reports to stockholders and in other
            communications by the Company, which are made in good faith by the Company pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements involve risks and uncertainties, such as statements of the Company’s plans, objectives, expectations, estimates and intentions that are subject to change based on various important factors (some of which are beyond the Company’s control). The following factors, among others, could cause the Company’s financial performance to differ
            materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements: the strength of the United States economy in general and the strength of the local economy in which the Company conducts operations; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the board of governors of the federal reserve system, inflation, interest rates, market and monetary fluctuations;
            the impact of changes in financial services’ laws and regulations (including laws concerning taxes, banking, securities and insurance); technological changes; and the success of the Company at managing the risks involved in the foregoing.  The Company cautions that the foregoing list of important factors is not exclusive. 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.  Item 1. Business  General  The Company is a Louisiana corporation organized in December 1994 at the direction of Teche Federal Bank (the “Bank” or “Teche Federal”) to acquire all of the capital stock that the Bank issued in its conversion from the mutual to stock form of ownership (the “Conversion”). References to the “Bank” or “Teche Federal”
            herein, unless the context requires otherwise, refer to the Company on a consolidated basis.  The Bank is a community-oriented federal savings bank offering a variety of financial services to meet the local banking needs of St. Mary, Lafayette, Iberia, St. Martin, Terrebonne, upper Lafourche, East Baton Rouge, St. Landry and Ascension Parishes, Louisiana (the “primary market area”). Teche Federal operates from its main office located at 1120 Jefferson Terrace,
            New Iberia, Louisiana and currently has twenty other offices. As of September 30, 2008, the Bank had 230 full-time and 87 part-time employees.  The Company and the Bank are subject to regulation by the Office of Thrift Supervision, the Federal Deposit Insurance Corporation and the Securities and Exchange Commission.  1
  
 Market Area/Competition  Teche Federal’s home office is located in Franklin, St. Mary Parish, Louisiana. The Bank also has branch offices in the Parishes of Iberia, St. Martin, Lafayette, Terrebonne, Lafourche, St. Landry, East Baton Rouge and Ascension, Louisiana.  The regional economy is dependent to a certain extent on the oil and gas, seafood and agricultural (primarily sugar cane) industries. These industries are cyclical in nature and have a direct impact on the level and performance of the Bank’s loan portfolio. Economic downturns in the past have caused a decrease in loan originations and an increase in nonperforming assets.
            However, the metropolitan Lafayette area, which is the fourth largest city in Louisiana, has experienced sustained growth and is the home to the University of Louisiana at Lafayette, several hospitals and various small-to medium-size businesses, and has provided the Bank with increased lending opportunities.  The Bank encounters strong competition both in the attraction of deposits and origination of real estate and other loans. Competition comes primarily from other financial institutions in its primary market area, including savings banks, commercial banks and savings associations, credit unions and investment and mortgage brokers in serving its primary market area. The Bank also
            originates mortgage loans through its branch offices, secured by properties throughout its primary market area and other locations in Louisiana.  Lending Activities  The Bank’s lending strategy historically focused on the origination of traditional one-to-four-family mortgage loans with the primary emphasis on single family residences in the Bank’s primary market area. In recent years, the Bank has emphasized SmartGrowth Loans, consisting of commercial loans, home equity loans, alternative mortgage loans and consumer loans. In
            furtherance of this strategy, the Bank has increased the amount of its commercial real estate and non-real estate loan portfolios, consumer loans and alternative mortgage loans for retention in the Company’s loan portfolio. Alternative mortgage loans originated by the Bank are residential real estate loans that do not meet all of the Bank’s standard loan underwriting criteria. For more information regarding alternative mortgage loans see Note 4 to the consolidated
            Financial Statements included as part of Exhibit 13 to this report. At September 30, 2008, SmartGrowth Loans totaled $428.4 million or 72.6 % of total loans.  2
  
 Analysis of Loan Portfolio. Set forth below is selected data relating to the composition of the Bank’s loan portfolio at the dates indicated.   At September 30,2008

                        

                        2007

                        

                        2006

                        

                        2005

                        

                        2004Amount

                        

                        PercentofTotal

                        

                        Amount

                        

                        PercentofTotal

                        

                        Amount

                        

                        PercentofTotal

                        

                        Amount

                        

                        PercentofTotal

                        

                        Amount

                        

                        PercentofTotal(Dollars in Thousands)One- to four-family mortgage loans

                        

                        $

                        279,912

                        

                        47.41

                        %

                        $

                        298,092

                        

                        52.50

                        %

                        $

                        290,453

                        

                        55.25

                        %

                        $

                        298,229

                        

                        60.45

                        %

                        $

                        313,175

                        

                        65.77

                        %Multi-family mortgage loans

                        

                        

                        25,943

                        

                        4.39

                        

                        

                        24,540

                        

                        4.33

                        

                        

                        20,756

                        

                        3.95

                        

                        

                        19,636

                        

                        3.98

                        

                        

                        7,503

                        

                        1.58Land loans

                        

                        

                        37,729

                        

                        6.39

                        

                        

                        28,376

                        

                        5.01

                        

                        

                        21,812

                        

                        4.15

                        

                        

                        13,991

                        

                        2.84

                        

                        

                        11,758

                        

                        2.47Construction loans

                        

                        

                        7,267

                        

                        1.23

                        

                        

                        10,853

                        

                        1.92

                        

                        

                        9,358

                        

                        1.78

                        

                        

                        13,308

                        

                        2.70

                        

                        

                        16,713

                        

                        3.51Commercial real estate loans

                        

                        

                        77,025

                        

                        13.05

                        

                        

                        75,961

                        

                        13.39

                        

                        

                        59,474

                        

                        11.31

                        

                        

                        46,877

                        

                        9.50

                        

                        

                        32,342

                        

                        6.79Commercial non-real estate loans

                        

                        

                        29,709

                        

                        5.03

                        

                        

                        15,378

                        

                        2.71

                        

                        

                        21,262

                        

                        4.05

                        

                        

                        10,607

                        

                        2.15

                        

                        

                        7,756

                        

                        1.63Home equity loans

                        

                        

                        54,590

                        

                        9.25

                        

                        

                        51,240

                        

                        9.03

                        

                        

                        53,202

                        

                        10.12

                        

                        

                        49,348

                        

                        10.00

                        

                        

                        45,259

                        

                        9.51Loans on savings accounts

                        

                        

                        8,189

                        

                        1.39

                        

                        

                        5,939

                        

                        1.05

                        

                        

                        5,223

                        

                        0.99

                        

                        

                        5,111

                        

                        1.04

                        

                        

                        4,184

                        

                        0.88Mobile home loans

                        

                        

                        61,372

                        

                        10.39

                        

                        

                        48,144

                        

                        8.49

                        

                        

                        35,242

                        

                        6.70

                        

                        

                        25,439

                        

                        5.16

                        

                        

                        22,528

                        

                        4.73Other secured and unsecured loans

                        

                        

                        8,693

                        

                        1.47

                        

                        

                        8,883

                        

                        1.57

                        

                        

                        8,911

                        

                        1.70

                        

                        

                        10,767

                        

                        2.18

                        

                        

                        14,913

                        

                        3.13Total loans

                        

                        

                        590,429

                        

                        100.00

                        %

                        

                        567,406

                        

                        100.00

                        %

                        

                        525,693

                        

                        100.00

                        %

                        

                        493,313

                        

                        100.00

                        %

                        

                        476,131

                        

                        100.00

                        %Less:Allowance for loan losses

                        

                        

                        5,545

                        

                        

                        

                        

                        5,083

                        

                        

                        

                        

                        4,890

                        

                        

                        

                        

                        5,151

                        

                        

                        

                        

                        4,365Deferred loan fees, net

                        

                        

                        293

                        

                        

                        

                        

                        335

                        

                        

                        

                        

                        300

                        

                        

                        

                        

                        346

                        

                        

                        

                        

                        439Net loans

                        

                        $

                        584,591

                        

                        

                        

                        $

                        561,988

                        

                        

                        

                        $

                        520,503

                        

                        

                        

                        $

                        487,816

                        

                        

                        

                        $

                        471,327
    3
  
 Loan Maturity Tables. The following table sets forth the maturity of the Bank’s construction loans, commercial real estate loans and commercial non-real estate loans at September 30, 2008. The table does not include prepayments or scheduled principal repayments. Adjustable-rate loans are shown as maturing based on contractual
            maturities.  Commercial

                        

                        CommercialConstruction

                        

                        

                        Real Estate

                        

                        Non RealLoans

                        

                        

                        Loans

                        

                        Estate Loans(In Thousands)Amounts due:1 year or less

                        

                        $

                        -

                        

                        

                        $

                        8,132

                        

                        $

                        9,514After 1 year:1 year to 5 years

                        

                        

                        -

                        

                        

                        

                        41,744

                        

                        

                        16,145More than 5 years

                        

                        

                        7,267

                        

                        

                        

                        27,149

                        

                        

                        4,050Total due after September 30, 2009

                        

                        

                        7,267

                        

                        

                        

                        68,893

                        

                        

                        20,195Total amount due

                        

                        $

                        7,267

                        

                        

                        $

                        77,025

                        

                        $

                        29,709
  The following table sets forth the dollar amount of the Bank’s construction loans and commercial real estate loans due after September 30, 2009 that have pre-determined interest rates and that have floating or adjustable interest rates.  Fixed Rates

                        

                        

                        

                        Floating or Adjustable Rates

                        

                        

                        

                        Total(In Thousands)Construction loans

                        

                        $

                        5,465

                        

                        

                        

                        $

                        1,802

                        

                        

                        

                        $

                        7,267Commercial real estate loans

                        

                        

                        52,405

                        

                        

                        

                        

                        16,488

                        

                        

                        

                        

                        68,893Commercial non-real estate loans

                        

                        

                        18,877

                        

                        

                        

                        

                        1,318

                        

                        

                        

                        

                        20,195Total

                        

                        $

                        76,747

                        

                        

                        

                        $

                        19,608

                        

                        

                        

                        $

                        96,355
  One- to Four-Family Residential Real Estate Loans. Teche Federal generally originates single-family owner occupied residential mortgage loans in amounts up to 80% of the lower of the appraised value or selling price of the property securing the loan. The Bank also originates such loans in amounts up to 100% of the lower of the appraised value or selling
            price of the mortgaged property, provided that private mortgage insurance is provided on the amount in excess of 90% of the lesser of the appraised value or selling price.  The Bank offers fixed-rate and adjustable-rate mortgage loans with terms of up to 30 years, which amortize monthly. Interest rates charged on mortgage loans are competitively priced based on market conditions and the Bank’s cost of funds. The Bank originates and holds most of its fixed-rate mortgage loans as long term investments. Most loans are originated in conformance with
            the Federal Home Loan Mortgage Corporation (“FHLMC”) and the Federal National Mortgage Association (“FNMA”) guidelines and can therefore be sold in the secondary market should management deem it necessary. The Bank originated $45.6 million of fixed-rate mortgage loans during the year ended September 30, 2008 and sold $36.3 million to help manage interest rate risk.  Alternative one-to-four family mortgages represent those loans not meeting all of the Banks’ standard loan underwriting criteria. Alternative mortgage loans consist primarily of smaller mortgage loans of $100,000 or less with higher interest rates, first time home buyer loans with 100% loan-to-value ratios (“LTVs”), and loans with LTVs greater than 80% to
            conforming borrowers. Because these loans may have higher credit risks, they also provide higher yields to the Bank. Underwriting criteria for these  4
  
 loans require sufficient mitigating factors, such as higher FICO scores and/or additional equity, to minimize the additional credit risk associated with these types of loans. In addition, the Bank does not originate exotic loans, such as interest only ARMS. At September 30, 2008, alternative mortgage loans comprised $87.4 million, or 14.8%, of the total loan portfolio.  Construction Loans. The Bank’s construction loans have primarily been made to finance the construction of single-family owner occupied residential properties and, to a limited extent, single family housing for sale by contractors. Construction loans generally are made to customers of the Bank in its primary market area. The Bank offers
            construction loans in amounts up to 80% of the appraised value of the property securing the loan. Loan proceeds are disbursed in increments as construction progresses and as inspections warrant. Construction loans to individuals generally do not pay off at completion of the construction phase, but are automatically transferred to the Bank’s one- to four-family residential portfolio. These single-family residential loans are structured to allow the borrower to pay interest only
            on the funds advanced for the construction during the construction phase (normally for a period of up to nine months) at the end of which time the construction loan converts to a mortgage loan.  Multi-Family and Commercial Real Estate Loans. This portfolio has grown in recent years and management anticipates that it will continue to grow. The Bank originates loans secured by multi-family (greater than four family units) properties. The Bank also originates loans secured by commercial real estate, primarily office buildings (both owner and
            non-owner occupied) and development loans to builders.  The Bank generally originates multi-family and commercial real estate loans up to 80% of the appraised value of the property securing the loan depending upon the type of collateral. The Bank’s philosophy is to originate commercial real estate and multi-family loans only to borrowers known to the Bank and on properties in its market area. This portfolio generally consists of
            short term (generally five years or less) fixed rate balloon loans originated at prevailing market rates with amortizations up to 15 years.  Loans secured by multi-family and commercial real estate are generally larger and involve a greater degree of risk than one- to four-family residential mortgage loans. The Bank may occasionally participate larger commercial real estate loans to mitigate risk. Of primary concern in multi-family and commercial real estate lending is the borrower’s creditworthiness, the
            feasibility and cash flow potential of the project, and the outlook for successful operation or management of the properties. As a result, repayment of such loans may be subject, to a greater extent than residential real estate loans, to adverse conditions in the real estate market or the economy. In accordance with the Bank’s classification of assets policy and procedure, the Bank requests annual financial statements on major loans secured by multi-family and commercial real
            estate. At September 30, 2008 the aggregate balance of the five largest multi-family and commercial real estate loans totaled $16.1 million, with no single loan larger than $4.9 million.  Commercial Non-real Estate Loans. At September 30, 2008, the Bank had $29.7 million invested in commercial non-real estate loans. Such loans are commercial business loans primarily to small business owners in the Bank’s market area. These loans are typically secured by equipment, machinery and other business assets and generally have terms of
            three to five years. Commercial business loans generally have higher interest rates and shorter terms than one- to four-family residential mortgage loans, but also involve a greater degree of risk. These loans may have higher average balances, increased difficulty of loan monitoring and a higher risk of default since their repayment generally depends on the successful operation of the borrower’s business. The Bank tries to minimize its risk exposure by limiting these loans to
            proven businesses and obtaining personal guarantees from the borrowers whenever possible.  5
  
  Land Loans. At September 30, 2008, the Bank had $20.4 million invested in residential lot loans to individuals, and $17.4 million in commercial land development loans.  Home Equity Loans. The Bank also offers home equity loans on single family residences. At September 30, 2008, home equity mortgage loans totaled $54.6 million. While the Bank does offer adjustable rate home equity lines of credit, the majority of the home equity portfolio have fixed rates with a maximum term of 30 years. A variety of home equity loan
            programs are offered including combined loan to values (LTV’s) up to 125% of collateral, however, such loans are generally for shorter terms. Loans with LTV’s 100% and greater total $8.0 million. Creditworthiness, capacity, and loan to value are the primary factors considered during underwriting. To offset additional credit risk and higher combined loan to values, the Bank reduces loan terms and increases loan yields.  Consumer Loans. The Bank also offers loans in the form of loans secured by deposits, home equity loans, automobile loans, mobile home loans and unsecured personal consumer loans. Federal regulations allow the Bank to make secured and unsecured consumer loans of up to 35% of the Bank’s assets.  Loans secured by deposits at the Bank are made up to 100% of the deposit. At September 30, 2008, the Bank had $8.2 million of loans secured by deposits.  At September 30, 2008, the Bank had $3.5 million in automobile loans, $36.7 million in mobile home loans, and $24.7 million in mobile home with land loans.  Consumer loans tend to be originated at higher interest rates than conventional residential mortgage loans and for shorter terms, which benefits the Bank’s interest rate risk management. However, consumer loans generally involve more risk than first mortgage one- to four-family residential real estate loans. Repossessed collateral for a defaulted loan may not provide an
            adequate source of repayment of the outstanding loan balance as a result of damage, loss or depreciation, and the remaining deficiency often does not warrant further substantial collection efforts against the borrower. In addition, loan collections are dependent on the borrower’s continuing financial stability, and thus are more likely to be adversely affected by job loss, divorce, illness or personal bankruptcy. Further, the application of various state and federal laws,
            including federal and state bankruptcy and insolvency law, may limit the amount which may be recovered. These loans may also give rise to defenses by the borrower against the Bank and a borrower may be able to assert against the Bank claims and defenses which it has against the seller of the underlying collateral. In underwriting consumer loans, the Bank considers the borrower’s credit history, an analysis of the borrower’s income and ability to repay the loan, and the
            value of the collateral.  Loans-to-One Borrower. Savings associations cannot make any loans to one borrower in an amount that exceeds in the aggregate 15% of unimpaired capital and ALLL on an unsecured basis and an additional amount equal to 10% of unimpaired capital and ALLL if the loan is secured by readily marketable collateral (generally, financial instruments, not real
            estate) or $500,000, whichever is higher. The Bank’s maximum loan-to-one borrower limit was approximately $9.2 million as of September 30, 2008.  Non-Performing and Problem Assets  General. Teche Federal’s primary market area is dependent, to a certain extent, on the oil and gas, seafood and agricultural (primarily sugar cane) industries. These industries are cyclical in nature and have a direct impact on the level and performance of the Bank’s loan portfolio. Management continually monitors its loan portfolio for
            appropriate underwriting standards.  6
  
  Non-Performing Assets and Delinquencies. When a borrower fails to make a required payment on a loan and does not cure the delinquency promptly, the loan is classified as delinquent. In this event, the normal procedure followed by the Bank is to make contact with the borrower at prescribed intervals in an effort to bring the loan to a current status. In
            most cases, delinquencies are cured promptly. If a delinquency is not cured, the Bank normally, subject to any required prior notice to the borrower, commences foreclosure proceedings, in which the property may be sold. In a foreclosure sale, the Bank may acquire title to the property through foreclosure, in which case the property so acquired is offered for sale and may be financed by a loan involving terms more favorable to the borrower than those normally offered. Any property
            acquired as a result of foreclosure or by deed in lieu of foreclosure is classified as real estate owned until such time as it is sold or otherwise disposed of by the Bank to recover its investment. Any real estate acquired in settlement of loans is initially recorded at the estimated fair value less estimated selling cost at the time of acquisition and is subsequently reduced by additional allowances which are charged to earnings if the estimated fair value of the property declines
            below its initial value. Subsequent costs directly relating to development and improvement of property are capitalized (not to exceed fair value), whereas costs related to holding property are expensed.  The Bank’s general policy is to place a loan on nonaccrual status when the loan becomes 90 days delinquent or otherwise demonstrates other risks of collectibility. Interest on loans that are contractually 90 days or more past due is generally reserved through an allowance account. The Bank sometimes modifies this general policy after a review of the value of the collateral
            pledged against individual loans. The allowance is established by a charge to interest income equal to all interest previously accrued, and interest is subsequently recognized only to the extent cash payments are received until, in management’s judgment, the borrower’s ability to make periodic interest and principal payments is back to normal, in which case the loan is returned to accrual status.  7
  
 The following table sets forth information regarding non-accrual loans, real estate owned (“REO”), and loans that are 90 days or more delinquent net of specific reserves but on which the Bank was accruing interest at the dates indicated and restructured loans. There are no restructured loans other than those included in the table.  At September 30,2008

                        

                        2007

                        

                        2006

                        

                        2005

                        

                        2004(Dollars in thousands)Loans accounted for on a non-accrual basis:Mortgage loans:Loans secured by one- to four-family residences

                        

                        $

                        2,384

                        

                        $

                        1,715

                        

                        $

                        1,704

                        

                        $

                        3,283

                        

                        $

                        989All other mortgage loans

                        

                        

                        578

                        

                        

                        442

                        

                        

                        749

                        

                        

                        100

                        

                        

                        911Consumer

                        

                        

                        559

                        

                        

                        481

                        

                        

                        363

                        

                        

                        541

                        

                        

                        558Total

                        

                        $

                        3,521

                        

                        $

                        2,638

                        

                        $

                        2,816

                        

                        $

                        3,924

                        

                        $

                        2,458Accruing loans which are contractually past due 90 days or more:Mortgage loans:Loans secured by one- to four-family residences

                        

                        $

                        1,349

                        

                        $

                        1,157

                        

                        $

                        1,096

                        

                        $

                        852

                        

                        $

                        1,391All other mortgage loans

                        

                        

                        991

                        

                        

                        -

                        

                        

                        -

                        

                        

                        75

                        

                        

                        48Consumer

                        

                        

                        181

                        

                        

                        67

                        

                        

                        10

                        

                        

                        145

                        

                        

                        10Total

                        

                        $

                        2,521

                        

                        $

                        1,224

                        

                        $

                        1,106

                        

                        $

                        1,072

                        

                        $

                        1,449Total non-performing loans

                        

                        $

                        6,042

                        

                        $

                        3,862

                        

                        $

                        3,922

                        

                        $

                        4,996

                        

                        $

                        3,907Real estate owned

                        

                        $

                        343

                        

                        $

                        1,218

                        

                        $

                        1,066

                        

                        $

                        270

                        

                        $

                        194Total non-performing assets

                        

                        $

                        6,385

                        

                        $

                        5,080

                        

                        $

                        4,988

                        

                        $

                        5,266

                        

                        $

                        4,101Total non-performing loans to total loans outstanding before allowance

                        

                        

                        1.02

                        %

                        

                        0.69

                        %

                        

                        0.75

                        %

                        

                        1.01

                        %

                        

                        0.82

                        %Total non-performing loans to total assets

                        

                        

                        0.79

                        %

                        

                        0.54

                        %

                        

                        0.57

                        %

                        

                        0.74

                        %

                        

                        0.60

                        %Total non-performing assets to total assets

                        

                        

                        0.83

                        %

                        

                        0.71

                        %

                        

                        0.73

                        %

                        

                        0.78

                        %

                        

                        0.63

                        %
  Interest income that would have been recorded on loans accounted for on a non-accrual basis under the original terms of such loans was $231,000 for the year ended September 30, 2008. Interest income of $81,000 on nonaccrual loans was included in net income of the year ended September 30, 2008. At September 30, 2008, there were $2.3 million in loans that were not classified as
            nonaccrual, 90 days past due or restructured but where known information about possible credit problems of borrowers caused management to have concerns as to the ability of the borrowers to comply with present loan repayment terms and may result in future disclosure as nonaccrual, 90 days past due or impaired.  Real Estate Owned. Real estate acquired by the Bank as the result of foreclosure or by deed in lieu of foreclosure is classified as real estate owned (REO) until it is sold. When property is acquired it is recorded at the fair value less estimated costs to sell at the date of foreclosure. At September 30, 2008, the Bank had REO with a net balance of
            $343,000.  Allowances for Loan Losses. The allowance for loan losses is a valuation allowance available for losses incurred on loans. Any losses are charged to the allowance for loan losses when the loss actually occurs or when a determination is made that a loss is probable to occur. Recoveries are credited to the allowance at the time of recovery.  8
  
 Periodically during the year management estimates the likely level of losses to determine whether the allowance for loan losses is adequate to absorb losses in the existing portfolio. Based on the estimates, an amount is charged to the provision for loan losses and credited to the allowance for loan losses in order to adjust the allowance to a level determined to be adequate to
            absorb such losses.  Management’s judgment as to the level of losses on existing loans involves the consideration of current and anticipated economic conditions and their potential effects on specific borrowers; an evaluation of the existing relationships among loans, known the inherent risks in the loan portfolio, and the present level of the allowance; results of examination of the loan
            portfolio by regulatory agencies; and management’s internal review of the loan portfolio. In determining the collectibility of certain loans, management also considers the fair value of any underlying collateral.  It should be understood that estimates of loan losses involve an exercise of judgment. While it is possible that in particular periods the Company may sustain losses, which are substantial relative to the allowance for loan losses, it is the judgment of management that the allowance of loan losses reflected in the consolidated balance sheets is adequate to absorb losses in the
            existing loan portfolio.  9
  
 Allocation of Allowance for Loan Losses. The following table sets forth the allocation of the Bank’s allowance for loan losses by loan category and the percent of loans in each category to total loans receivable at the dates indicated. The portion of the loan loss allowance allocated to each loan category does not represent the total available for
            losses which may occur within the loan category since the total loan loss allowance is a valuation reserve applicable to the entire loan portfolio.  At September 30,2008

                                

                                2007

                                

                                2006

                                

                                2005

                                

                                2004Percent of

                                

                                

                                

                                Percent of

                                

                                

                                

                                Percent of

                                

                                

                                

                                Percent of

                                

                                

                                

                                Percent ofLoans to

                                

                                

                                

                                Loans to

                                

                                

                                

                                Loans to

                                

                                

                                

                                Loans to

                                

                                

                                

                                Loans toTotal

                                

                                

                                

                                Total

                                

                                

                                

                                Total

                                

                                

                                

                                Total

                                

                                

                                

                                TotalAmount

                                

                                Loans

                                

                                Amount

                                

                                Loans

                                

                                Amount

                                

                                Loans

                                

                                Amount

                                

                                Loans

                                

                                Amount

                                

                                Loans(Dollars in Thousands)At end of year allocated to:One- to four-family

                                

                                $

                                1,162

                                

                                47.41

                                %

                                $

                                999

                                

                                52.54

                                %

                                $

                                1,058

                                

                                55.25

                                %

                                $

                                1,978

                                

                                60.45

                                %

                                $

                                1,385

                                

                                65.77

                                %Multi-family and commercial real estate

                                

                                

                                1,780

                                

                                17.44

                                

                                

                                1,881

                                

                                17.71

                                

                                

                                1,747

                                

                                15.26

                                

                                

                                1,447

                                

                                13.48

                                

                                

                                1,300

                                

                                8.37Construction

                                

                                

                                39

                                

                                1.23

                                

                                

                                36

                                

                                1.91

                                

                                

                                34

                                

                                1.78

                                

                                

                                50

                                

                                2.70

                                

                                

                                50

                                

                                3.51Home equity

                                

                                

                                600

                                

                                9.24

                                

                                

                                510

                                

                                9.03

                                

                                

                                778

                                

                                10.12

                                

                                

                                658

                                

                                10.00

                                

                                

                                675

                                

                                9.51Consumer and other loans

                                

                                

                                1,964

                                

                                24.68

                                

                                

                                1,657

                                

                                18.81

                                

                                

                                1,273

                                

                                17.59

                                

                                

                                1,018

                                

                                13.37

                                

                                

                                955

                                

                                12.84Total allowance

                                

                                $

                                5,545

                                

                                100.00

                                %

                                $

                                5,083

                                

                                100.00

                                %

                                $

                                4,890

                                

                                100.00

                                %

                                $

                                5,151

                                

                                100.00

                                %

                                $

                                4,365

                                

                                100.00

                                %
 10
  
 Analysis of the Allowance for Loan Losses. The following table sets forth information with respect to the Bank’s allowance for loan losses for the periods indicated:  At September 30,2008

                        

                        2007

                        

                        2006

                        

                        2005

                        

                        2004(Dollars in Thousands)Total loans outstanding, net

                        

                        $

                        584,591

                        

                        $

                        561,988

                        

                        $

                        520,503

                        

                        $

                        487,816

                        

                        $

                        471,327Average loans outstanding

                        

                        $

                        594,944

                        

                        $

                        547,740

                        

                        $

                        503,252

                        

                        $

                        498,193

                        

                        $

                        404,379Allowance balances (at beginning of year)

                        

                        $

                        5,083

                        

                        $

                        4,890

                        

                        $

                        5,151

                        

                        $

                        4,365

                        

                        $

                        3,397Acquisition

                        

                        

                        —

                        

                        

                        —

                        

                        

                        —

                        

                        

                        —

                        

                        

                        973Provision

                        

                        

                        825

                        

                        

                        605

                        

                        

                        210

                        

                        

                        950

                        

                        

                        60Charge offs:Residential real estate mortgage loans:One- to four-family units

                        

                        

                        (212)

                        

                        

                        (175

                        )

                        

                        (333

                        )

                        

                        (122

                        )

                        

                        (14

                        )Construction loans

                        

                        

                        —

                        

                        

                        —

                        

                        

                        (268

                        )

                        

                        —

                        

                        

                        —Multi-family and commercial real estate loans

                        

                        

                        (122)

                        

                        

                        —

                        

                        

                        (1

                        )

                        

                        —

                        

                        

                        —Land loans

                        

                        

                        (1)

                        

                        

                        (23

                        )

                        

                        (7

                        )

                        

                        (16

                        )

                        

                        (2

                        )Other

                        

                        

                        (47)

                        

                        

                        (230

                        )

                        

                        (98

                        )

                        

                        (39

                        )

                        

                        (99

                        )Total charge-offs

                        

                        

                        (382)

                        

                        

                        (428

                        )

                        

                        (707

                        )

                        

                        (177

                        )

                        

                        (115

                        )RecoveriesResidential real estate mortgage loans:One- to four-family units

                        

                        

                        8

                        

                        

                        5

                        

                        

                        45

                        

                        

                        9

                        

                        

                        10Construction loans

                        

                        

                        —

                        

                        

                        —

                        

                        

                        64

                        

                        

                        —

                        

                        

                        —Multi-family and commercial real estate loans

                        

                        

                        —

                        

                        

                        —

                        

                        

                        90

                        

                        

                        —

                        

                        

                        —Land loans

                        

                        

                        —

                        

                        

                        —

                        

                        

                        —

                        

                        

                        1

                        

                        

                        —Other

                        

                        

                        11

                        

                        

                        11

                        

                        

                        37

                        

                        

                        3

                        

                        

                        40Total recoveries

                        

                        

                        19

                        

                        

                        16

                        

                        

                        236

                        

                        

                        13

                        

                        

                        50Net (charge-offs)

                        

                        

                        (363)

                        

                        

                        (412

                        )

                        

                        (471

                        )

                        

                        (164

                        )

                        

                        (65

                        )Allowance balance (at end of year)

                        

                        $

                        5,545

                        

                        $

                        5,083

                        

                        $

                        4,890

                        

                        $

                        5,151

                        

                        $

                        4,365Allowance for loan losses to total loans outstanding before allowance

                        

                        

                        0.94

                        %

                        

                        0.89

                        %

                        

                        0.93

                        %

                        

                        1.04

                        %

                        

                        0.92

                        %Net loans charged off as a percent of average loans outstanding before allowance

                        

                        

                        0.06

                        %

                        

                        0.08

                        %

                        

                        0.09

                        %

                        

                        0.03

                        %

                        

                        0.02

                        %
   Investment Activities  General. To supplement lending activities, the Company invests in residential mortgage-backed securities, including collateralized mortgage obligations (“CMOs”), investment securities and interest-bearing deposits. These investments have historically consisted of investment securities issued by U.S. government agencies and
            government-sponsored corporations. Such securities can serve as collateral for borrowings and, through repayments and maturities, as a source of liquidity.  11
  
 The Company is authorized to invest in various types of assets, including U.S. Treasury obligations, securities of various federal agencies and government-sponsored corporations, including securities issued by FHLMC, FNMA, and the Government National Mortgage Association (“GNMA”), securities of state and municipal governments, deposits at the FHLB of Dallas,
            certificates of deposit of federally insured institutions, certain bankers’ acceptances and federal funds. Subject to various restrictions, the Company also has the authority to invest in commercial paper and corporate debt and/or equity securities, the assets of which conform to the investments that federally chartered savings institutions are otherwise authorized to make directly. At September 30, 2008, the Company’s securities portfolio did not contain securities of
            any non-GSE issuer having an aggregate book value in excess of 10% of the Company’s equity.  The Company’s investments in mortgage-backed securities and CMOs include securities issued by government agencies, private issuers and financial institutions. The CMOs held by the Company at September 30, 2008 consisted of floating rate and fixed rate tranches. Generally, private issued CMOs tend to have greater prepayment and credit risk than those issued by government
            agencies or government-sponsored corporations, such as the FHLMC, FNMA and GNMA, because they often are secured by jumbo loans. At September 30, 2008, the Bank had CMOs with an aggregate estimated market value of $8.9 million.  Individual securities are considered impaired when fair value is less than amortized cost. Management evaluates on a quarterly basis whether any securities are other than temporarily impaired. In making this determination, the Company considers the extent and duration of the impairment, the nature and financial health of the issuer, other factors relevant to specific securities,
            and the Company’s ability and intent to hold the securities for a period of time sufficient to allow for any anticipated recovery in market value. If a security is determined to be other-than-temporarily impaired, an impairment loss is charged to operations.  For each private label security, credit support and cash flows were assessed to determine whether the security was temporarily or other than temporarily impaired. Management evaluates the actual mortgage delinquencies, foreclosures, and real estate owned for each security, as well as future expected losses in the underlying mortgage collateral to determine if there is a high
            probability for expected losses and contractual shortfalls of interest or principal, which could warrant further recognition of impairment. Based upon our evaluation, we have determined that some securities have been other-than-temporarily impaired. Consequently, the value of these securities has been reduced with a corresponding charge to earnings of $408. Discount accretion on impaired securities has been suspended. The remaining balances of the private label securities have been
            determined to have sufficient credit support and cash flows to cover any projected underlying loan losses.  Equity securities contains an unrealized loss of $126,000 at September 30, 2008, which consists of a unit investment trust that consists of stock in 25 community banks around the nation and certain single issue bank common stocks, typically obtained in a mutual to stock thrift conversion. The current state of the banking industry in general has contributed to the significant short
            term decline. Due to the short duration of the unrealized losses, the anticipated benefits from the U.S. Government liquidity and capital purchase programs, and the prospects of the companies that we have invested in, it has been determined that the securities are not other than temporarily impaired. Management will continue to monitor the securities and make an impairment adjustment if deemed necessary based upon the prospects for recovery and the duration and severity of the
            unrealized losses.  For more information regarding securities see Note 3 to the Consolidated Financial Statements included as part of Exhibit 13 to this report.  12
  
 The following table sets forth the carrying value of the Company’s investment portfolio, short-term investments and FHLB stock at the dates indicated.  At September 30,2008

                        

                        2007

                        

                        2006(In Thousands)Investment securities issued by U.S. Government agencies and corporations

                        

                        $

                        -

                        

                        $

                        3,219

                        

                        $

                        3,147FHLB Stock

                        

                        

                        4,764

                        

                        

                        4,343

                        

                        

                        4,185Mortgage-backed securitiesGovernment sponsored entities

                        

                        

                        67,004

                        

                        

                        59,594

                        

                        

                        76,152Private label

                        

                        

                        3,621

                        

                        

                        -

                        

                        

                        -AMF mutual fund

                        

                        

                        -

                        

                        

                        15,674

                        

                        

                        15,788CMOsGovernment sponsored entities

                        

                        

                        3,923

                        

                        

                        4,475

                        

                        

                        5,389Private label

                        

                        

                        5,368

                        

                        

                        -

                        

                        

                        -Municipal obligations

                        

                        

                        19

                        

                        

                        25

                        

                        

                        31Equity securities

                        

                        

                        1,008

                        

                        

                        515

                        

                        

                        1,753Total investment and mortgage-backed securities

                        

                        

                        85,707

                        

                        

                        87,845

                        

                        

                        106,445Interest-bearing deposits

                        

                        

                        35,953

                        

                        

                        7,473

                        

                        

                        1,803Total investments

                        

                        $

                        121,660

                        

                        $

                        95,318

                        

                        $

                        108,248
   13
  
 Investment Portfolio Maturities. The following table sets forth certain information regarding the carrying values and weighted average yields of the Bank’s securities portfolios by scheduled maturity date at September 30, 2008. The table shows contractual maturities and does not reflect repricing or the effect of prepayments. Actual maturities may
            differ. Securities with no maturity date (FHLB stock and equity securities) are shown under the total investments column only. The total investments carrying value differs from the total amortized cost because available for sale securities are carried at their fair value instead of their amortized cost while the carrying value of held to maturity securities is equal to their amortized cost.  As of September 30, 2008One Year or Less

                        

                        

                        One to Five Years

                        

                        

                        Five to Ten Years

                        

                        

                        More than Ten Years

                        

                        

                        Total InvestmentCarrying

                        

                        Average

                        

                        

                        Carrying

                        

                        Average

                        

                        

                        Carrying

                        

                        Average

                        

                        

                        Carrying

                        

                        Average

                        

                        

                        Carrying

                        

                        Average

                        

                        

                        AmortizedValue

                        

                        Yield

                        

                        

                        Value

                        

                        Yield

                        

                        

                        Value

                        

                        Yield

                        

                        

                        Value

                        

                        Yield

                        

                        

                        Value

                        

                        Yield

                        

                        

                        Cost(Dollars in Thousands)Mortgage-backed securities available for sale government sponsored entities(1)

                        $

                        -

                        

                        -

                        %

                        

                        $

                        5,017

                        

                        3.74

                        %

                        

                        $

                        8,315

                        

                        4.02

                        %

                        $

                        8,370

                        

                        

                        4.62

                        %

                        

                        $

                        21,702

                        

                        4.19

                        %

                        

                        $

                        22,066Mortgage-backed securities held to maturity-government sponsored entities(1)

                        

                        -

                        

                        -

                        %

                        

                        

                        5,022

                        

                        4.41

                        %

                        

                        

                        12,861

                        

                        4.98

                        %

                        

                        27,419

                        

                        

                        5.13

                        %

                        

                        

                        45,302

                        

                        5.01

                        %

                        

                        

                        45,302Mortgage-backed securities held to maturity-private label

                        

                        -

                        

                        -

                        %

                        

                        

                        -

                        

                        -

                        %

                        

                        

                        -

                        

                        

                        %

                        

                        3,621

                        

                        

                        7.10

                        %

                        

                        

                        3,621

                        

                        7.10

                        %

                        

                        

                        3,621CMO’s(1):Available for sale government sponsored entities

                        

                        -

                        

                        -

                        %

                        

                        

                        -

                        

                        -

                        %

                        

                        

                        -

                        

                        -

                        %

                        

                        3,923

                        

                        

                        4.46

                        %

                        

                        

                        3,923

                        

                        4.46

                        %

                        

                        

                        4,009Held-to maturity- private label

                        

                        -

                        

                        -

                        %

                        

                        

                        -

                        

                        -

                        %

                        

                        

                        -

                        

                        -

                        %

                        

                        5,368

                        

                        

                        5.13

                        %

                        

                        

                        5,368

                        

                        5.13

                        %

                        

                        

                        5,368FHLB stock

                        

                        -

                        

                        -

                        %

                        

                        

                        -

                        

                        -

                        %

                        

                        

                        -

                        

                        -

                        %

                        

                        -

                        

                        

                        -

                        %

                        

                        

                        4,764

                        

                        2.09

                        %

                        

                        

                        4,764Municipal obligations(2)

                        

                        -

                        

                        -

                        %

                        

                        

                        19

                        

                        4.75

                        %

                        

                        

                        -

                        

                        -

                        %

                        

                        -

                        

                        

                        -

                        %

                        

                        

                        19

                        

                        4.75

                        %

                        

                        

                        19Equity securities

                        

                        -

                        

                        -

                        %

                        

                        

                        -

                        

                        -

                        %

                        

                        

                        -

                        

                        -

                        %

                        

                        -

                        

                        

                        -

                        %

                        

                        

                        1,008

                        

                        0.66

                        %

                        

                        

                        957Total

                        $

                        -

                        

                        -

                        %

                        

                        $

                        10,058

                        

                        4.08

                        %

                        

                        $

                        21,176

                        

                        4.60

                        %

                        $

                        48,701

                        

                        

                        5.13

                        %

                        

                        $

                        85,707

                        

                        4.66

                        %

                        

                        $

                        86,106
  __________________________ (1)

                        Does not assume prepayments.
 (2)

                        Yields on municipal obligations have not been computed on a tax equivalent basis.
  14
  
 Sources of Funds  General. Deposits are the major source of the Bank’s funds for lending and other investment purposes. Teche Federal also derives funds from amortization and prepayment of loans and mortgage-backed securities, maturities of investment securities and operations. Scheduled loan principal and interest payments are a relatively stable source of funds,
            while deposit inflows and outflows and loan prepayments are significantly influenced by general interest rates and market conditions. Teche Federal also utilizes advances from the FHLB of Dallas. In recent years, the Bank has emphasized SmartGrowth Deposits consisting of checking accounts, money market accounts and savings accounts. SmartGrowth Deposits totaled $330.4 million at September 30, 2008.  Deposits. Consumer and commercial deposits are attracted principally from within the Bank’s primary market area through the offering of a broad selection of deposit instruments including regular savings, demand and NOW accounts and certificates of deposit. Deposit account terms vary according to the minimum balance required, the time period the
            funds must remain on deposit and the interest rate, among other factors.  The interest rates paid by the Bank on deposits can be set daily at the direction of senior management. Senior management determines the interest rate to offer the public on new and maturing accounts. Senior management obtains the interest rates being offered by other financial institutions within its market area. This data along with a report showing the dollar value of
            certificates of deposit maturing is reviewed and interest rates are determined.  Non-interest bearing demand accounts constituted $57.9 million, or 9.8% of the Bank’s deposit portfolio at September 30, 2008. Money market accounts and NOW accounts constituted $217.1 million, or 36.8% of the Bank’s deposit portfolio at September 30, 2008. Regular savings accounts constituted $55.4 million, or 9.4% of the Bank’s deposit portfolio at September 30,
            2008. Certificates of deposit constituted $258.8 million or 43.9% of the deposit portfolio, including $103.3 million of which had balances of $100,000 and over. As of September 30, 2008, the Bank had no brokered deposits.  Certificate Accounts of $100,000 or More. Teche Federal maintains a policy of offering higher interest rates on certificates with larger balances. As a result, to some extent, Teche Federal customers tend to consolidate accounts to earn the highest possible interest. This enables the Bank to effectively compete in the marketplace, reduce the number of
            accounts and associated costs, and increase, to some extent the number of accounts with balances of $100,000 or more. The following table indicates the amount of the Bank’s certificates of deposit of $100,000 or more by time remaining until maturity as of September 30, 2008.  Certificatesof Deposit

                        

                        WeightedInterest RateMaturity Period:

                        

                        (In Thousands)3 months or less

                        

                        $

                        25,595

                        

                        4.37

                        %Over 3 through 6 months

                        

                        

                        16,941

                        

                        3.97Over 6 through 12 months

                        

                        

                        26,018

                        

                        3.55Over 12 months

                        

                        

                        34,710

                        

                        3.98Totals

                        

                        $

                        103,264

                        

                        3.97

                        %
   15
  
 Borrowings  Deposits are the primary source of funds of the Bank’s lending and investment activities and for its general business purposes. The Bank may obtain advances from the FHLB of Dallas to supplement its supply of lendable funds. Advances from the FHLB of Dallas are typically secured by a pledge of the Bank’s stock in the FHLB of Dallas and a portion of the Bank’s
            first mortgage loans and certain other assets. Funds available under existing credit facilities from the FHLB and one other correspondent bank combined totaled $171.4 million. The Bank has total FHLB borrowings of $104.9 million, or 13.6% of the Bank’s assets. Approximately $9.6 million is due in the year ending September 30, 2009.  The following table sets forth certain information regarding the Bank’s short term advances at or for the years ended on the dates indicated:   At or For the Year Ended

                            September 30,2008

                        

                        2007

                        

                        2006(Dollars in Thousands)FHLB advances:Average balance outstanding

                        

                        $

                        16,591

                        

                        $

                        13,520

                        

                        $

                        11,496Maximum amount outstanding at any month-end during the year

                        

                        

                        38,075

                        

                        

                        27,953

                        

                        

                        15,797Balance outstanding at end of year

                        

                        

                        9,551

                        

                        

                        27,953

                        

                        

                        10,191Weighted average interest rate during the year

                        

                        

                        4.67

                        %

                        

                        5.08

                        %

                        

                        4.95

                        %Weighted average interest rate at end of year

                        

                        

                        4.87

                        %

                        

                        4.86

                        %

                        

                        5.10

                        %
  Subsidiary Activity  The only subsidiary of the Company is Teche Federal Bank. As of September 30, 2008, the Bank had one inactive subsidiary: Family Investment Services, Inc. (“FISI”) which had total assets of approximately $184,000 consisting primarily of cash.  Regulation  Set forth below is a brief description of all material laws and regulations which relate to the regulation of the Bank and the Company. The description does not purport to be complete and is qualified in its entirety by reference to applicable laws and regulations.  Emergency Economic Stabilization Act of 2008  In response to recent unprecedented credit market turmoil, the Emergency Economic Stabilization Act of Act (“EESA”) was enacted on October 3, 2008. EESA authorizes the Secretary of the Treasury to purchase up to $700 billion in troubled assets from financial institutions under the Troubled Asset Relief Program or TARP. Pursuant to this authority, the Secretary of the
            Treasury has created the TARP Capital Purchase Plan under which the Treasury Department will invest up to $250 billion in senior preferred stock of U.S. banks and savings associations or their holding companies. Qualifying financial institutions may issue senior preferred stock with a value equal to not less than 1% of risk-weighted assets and not more than the lesser of $25 billion or 3% of risk-weighted assets. The senior preferred stock will pay dividends at the rate of 5% per
            annum until the fifth anniversary of the investment and thereafter at the rate of 9% per annum. The senior preferred stock may not be redeemed for three years except with the  16
  
 proceeds from an offering common stock or preferred stock qualifying as Tier 1 capital in an amount equal to not less than 25% of the amount of the senior preferred. After three years, the senior preferred may be redeemed at any time in whole or in part by the financial institution. No dividends may be paid on common stock unless dividends have been paid on the senior preferred stock. Until the third
            anniversary of the issuance of the senior preferred, the consent of the U.S. Treasury will be required for any increase in the dividends on the common stock or for any stock repurchases unless the senior preferred has been redeemed in its entirety or the Treasury has transferred the senior preferred to third parties. On November 14, 2008, the Company filed an application with the Office of Thrift Supervision (“OTS”) to voluntarily participate in the U.S. Treasury
            Department’s (the “Department”) Capital Purchase Program (the “ CPP”) announced on October 14, 2008 in conjunction with the Department’s Troubled Asset Relief Program (the “TARP”) under the Emergency Economic Stabilization Act.  Holding Company Regulation  General. The Company is a unitary savings and loan holding company subject to regulatory oversight by the Office of Thrift Supervision (the “OTS”). As such, the Company is required to register and file reports with the OTS and is subject to regulation and examination by the OTS. In addition, the OTS has enforcement authority over the Company
            and its non-savings association subsidiaries, should such subsidiaries be formed, which also permits the OTS to restrict or prohibit activities that are determined to be a serious risk to the subsidiary savings association. This regulation and oversight is intended primarily for the protection of the depositors of the Bank and not for the benefit of stockholders of the Company. The Company is also required to file certain reports with, and otherwise comply with, the rules and
            regulations of the OTS and the Securities and Exchange Commission (the “SEC”).  Sarbanes-Oxley Act of 2002. The Sarbanes-Oxley Act of 2002 (“SOX”) was enacted to address corporate and accounting fraud and implemented various reforms addressing, among other matters, corporate governance, auditing and accounting. The SEC has promulgated new regulations pursuant to SOX and may continue to propose additional implementing or
            clarifying regulations as necessary in furtherance of SOX. The passage of SOX by Congress and the implementation of its regulations by the SEC subject publicly traded companies to additional and more cumbersome reporting regulations and disclosure. Compliance with SOX and corresponding regulations has and may further increase the Company’s expenses. In the current year management has filed a report on internal control over financial reporting in accordance with section 404(a)
            and can be seen at item 9A(T) in the 10K.  Activities Restrictions. As a grandfathered unitary savings and loan holding company under the Gramm-Leach-Bliley Act (the “GLB Act”), the Company is generally not subject to any restrictions on its business activities or those of its non-savings institution subsidiaries. However, if the Company were to fail to meet the Qualified Thrift
            Lender Test, then it would become subject to the activities restrictions of the Home Owners’ Loan Act applicable to multiple holding companies. See “Regulation of the Bank -- Qualified Thrift Lender Test.”  If the Company were to acquire control of another savings association, it would lose its grandfathered status under the GLB Act and its business activities would be restricted to certain activities specified by OTS regulation, which include performing services and holding properties used by a savings institution subsidiary, certain activities authorized for savings and loan holding
            companies as of March 5, 1987, and nonbanking activities permissible for bank holding companies pursuant to the Bank Holding Company Act of 1956 (the “BHC Act”) or authorized for financial holding companies pursuant to the GLB Act. Furthermore, no company may acquire control of the Company unless the acquiring company was a unitary savings and loan holding company on May 4, 1999 (or became a unitary savings and loan holding company pursuant to an application
            pending as of that date) or the acquiring company is only  17
  
 engaged in activities that are permitted for multiple savings and loan holding companies or for financial holding companies under the BHC Act as amended by the GLB Act.  Regulation of the Bank  General. As a federally chartered, Federal Deposit Insurance Corporation (“FDIC”) insured savings association, the Bank is subject to extensive regulation by the OTS and the FDIC. Lending activities and other investments must comply with various federal statutory and regulatory requirements. The Bank is also subject to certain reserve
            requirements promulgated by the Federal Reserve Board.  The OTS, in conjunction with the FDIC, regularly examines the Bank and prepares reports for the consideration of the Bank’s Board of Directors on any deficiencies that they find in the Bank’s operations. The Bank’s relationship with its depositors and borrowers is also regulated to a great extent by federal law, especially in such matters as the ownership of
            savings accounts and the form and content of the Bank’s mortgage documents.  The Bank must file reports with the OTS and the FDIC concerning its activities and financial condition, in addition to obtaining regulatory approvals prior to entering into certain transactions such as mergers with or acquisitions of other savings institutions. This regulation and supervision establishes a comprehensive framework of activities in which an institution can engage and
            is intended primarily for the protection of the FDIC and depositors. The regulatory structure also gives the regulatory authorities extensive discretion in connection with their supervisory and enforcement activities and examination policies, including policies with respect to the classification of assets and the establishment of adequate loan loss reserves for regulatory purposes. Any change in such regulations, whether by the OTS, the FDIC or the Congress could have a material
            adverse impact on the Company, the Bank and their operations.  Insurance of Deposit Accounts. The Bank’s deposits are insured to applicable limits by the Federal Deposit Insurance Corporation. Pursuant to the Emergency Economic Stabilization Act of 2008, the maximum deposit insurance amount has been increased from $100,000 to $250,000 until December 31, 2009. On October 13, 2008, the FDIC established a
            Temporary Liquidity Guarantee Program under which the FDIC will fully guarantee all non-interest-bearing transaction accounts and all senior unsecured debt of insured depository institutions or their qualified holding companies issued between October 14, 2008 and June 30, 2009. All eligible institutions participated in the program without cost for the first 30 days of the program and had until December 5, 2008 to opt out of one or both parts of the Temporary Liquidity Guarantee
            Program. Institutions that did not opt out will be assessed at the rate of ten basis points for transaction account balances in excess of $250,000 and at the rate of 50 - 100 basis points of the amount of the debt issued depending on the term of the debt with an additional 10 basis points charged if the debt is issued by holding companies in certain circumstances. Institutions were required to opt out of one or both parts of the Temporary Liquidity Guarantee Program by December 5,
            2008 if they did not wish to participate. The Bank chose to participate in both parts of the program.  Pursuant to the Federal Deposit Insurance Reform Act of 2005 (the “Reform Act”), the FDIC is authorized to set the reserve ratio for the Deposit Insurance Fund annually at between 1.15% and 1.5% of estimated insured deposits. If the Deposit Insurance Fund’s reserves exceed the designated reserve ratio, the FDIC is required to pay out all or, if the reserve ratio
            is less than 1.5%, a portion of the excess as a dividend to insured depository institutions based on the percentage of insured deposits held on December 31, 1996 adjusted for subsequently paid premiums. Insured depository institutions that were in existence on December 31, 1996 and paid assessments prior to that date (or their successors) are entitled to a one-time credit against future assessments based on their past contributions to the predecessor to the Deposit Insurance
            Fund.  18
  
  The FDIC has set the designated reserve ratio at 1.25% of estimated insured deposits. The FDIC has also adopted a risk-based premium system that provides for quarterly assessments based on an insured institution’s ranking in one of four risk categories based on their examination ratings and capital ratios. Well-capitalized institutions with the CAMELS ratings of 1 or 2 are
            grouped in Risk Category I and have been assessed for deposit insurance at an annual rate of between five and seven basis points with the assessment rate for an individual institution determined according to a formula based on a weighted average of the institution’s individual CAMELS component ratings plus either five financial ratios or the average ratings of its long-term debt. Institutions in Risk Categories II, III and IV are currently assessed at annual rates of 10, 28
            and 43 basis points, respectively. The Bank has been able to reduce its deposit insurance premium for 2008 with the special assessment credit that expired in the quarter ending September, 30, 2008.  Due to recent bank failures, the FDIC has determined that the reserve ratio was 1.01% as of June 30, 2008. In accordance with the Reform Act, the FDIC must establish and implement a plan within 90 days to restore the reserve ratio to 1.15% within five years (subject to extension due to extraordinary circumstances). For the quarter beginning January 1, 2009, the FDIC has proposed to
            raise the base annual assessment rate for institutions in Risk Category I to between 12 and 14 basis points while the base annual assessment rates for institutions in Risk Categories II, III and IV would be increased to 17, 35 and 50 basis points, respectively. For the quarter beginning April 1, 2009 the FDIC has proposed to set the base annual assessment rate for institutions in Risk Category I to between 10 and 14 basis points and the base annual assessment rates for
            institutions in Risk Categories II, III and IV at 20, 30 and 45 basis points, respectively. An institution’s assessment rate could be lowered by as much as two basis points based on the ratio of its long-term unsecured debt to deposits or, for smaller institutions by the ratio of its Tier 1 capital in excess of 15% to deposits. The assessment rate would be adjusted towards the maximum rate for Risk Category I that have a high level of
            brokered deposits or have experienced higher levels of asset growth (other than through acquisitions) and could be increased by as much as ten basis points for institutions in Risk Categories II, III and IV whose ratio of brokered deposits to deposits exceeds 10%. An institution’s base assessment rate would also be increased if an institution’s ratio of secured liabilities (including FHLB advances) to deposits exceeds 15%. The maximum adjustment for secured liabilities
            for institutions in Risk Categories I, II, III and IV would be 7, 10, 15 and 22.5 basis points, respectively. In addition, all FDIC-insured institutions are required to pay assessments to the FDIC to fund interest payments on bonds issued by the Financing Corporation (“FICO”), an agency of the Federal government established to recapitalize the predecessor to the SAIF. The FICO assessment rates, which are determined quarterly, averaged 5.53% of insured deposits in fiscal 2008.
            These assessments will continue until the FICO bonds mature in 2017.  Regulatory Capital Requirements. OTS capital regulations require savings institutions to meet three capital standards: (1) tangible capital equal to 1.5% of total adjusted assets, (2) a leverage ratio (core capital) equal to at least 3% of total adjusted assets for savings associations that receive the highest supervision rating for safety and
            soundness and 4% of total adjusted assets for all other associations, and (3) a risk-based capital requirement equal to 8% of total risk-weighted assets. The Bank’s capital levels can be found at Note 18 to the Consolidated Financial Statements included as part of Exhibit 13 to this report. In assessing an institution’s capital adequacy, the Office of Thrift Supervision takes into consideration not only these numeric factors but also qualitative factors as well and has
            the authority to establish higher capital requirements for individual institutions where necessary.  The Bank is not under any agreement with regulatory authorities nor is it aware of any current recommendations by the regulatory authorities that, if they were to be implemented, would have a material effect on liquidity, capital resources or operations of the Bank or the Company.  19
  
  Dividend and Other Capital Distribution Limitations. The OTS imposes various restrictions or requirements on the ability of savings institutions to make capital distributions including cash dividends.  A savings association that is a subsidiary of a savings and loan holding company, such as the Bank, must file an application or a notice with the OTS at least 30 days before making a capital distribution. Savings associations are not required to file an application for permission to make a capital distribution and need only file a notice if the following conditions are met: (1)
            they are eligible for expedited treatment under OTS regulations, (2) they would remain adequately capitalized after the distribution, (3) the annual amount of capital distribution does not exceed net income for that year to date added to retained net income for the two preceding years, and (4) the capital distribution would not violate any agreements between the OTS and the savings association or any OTS regulations. Any other situation would require an application to the
            OTS.  In addition, the OTS could prohibit a proposed capital distribution if, after making the distribution, by any institution, which would otherwise be permitted by the regulation, if the OTS determines that the distribution would constitute an unsafe or unsound practice.  A federal savings institution is prohibited from making a capital distribution if, after making the distribution the savings institution would be unable to meet any one of its minimum regulatory capital requirements. Further, a federal savings institution cannot distribute regulatory capital that is needed for its liquidation account.  Qualified Thrift Lender Test. The Home Owners’ Loan Act (“HOLA”), as amended, requires savings institutions to meet a Qualified Thrift Lender (“QTL”) test. If the Bank maintains an appropriate level of Qualified Thrift Investments (primarily residential mortgages and related investments, including certain mortgage-backed
            securities) (“QTIs”) and otherwise qualifies as a QTL, it will continue to enjoy full borrowing privileges from the FHLB of Dallas. The required percentage of QTIs is 65% of portfolio assets (defined as all assets minus intangible assets, property used by the institution in conducting its business and liquid assets equal to 10% of total assets). Certain assets are subject to a percentage limitation of 20% of portfolio assets. In addition, savings associations may include
            shares of stock of the FHLBs, FNMA and FHLMC as qualifying QTIs. The FDICIA also amended the method for measuring compliance with the QTL test to be on a monthly basis in nine out of every 12 months, as opposed to on a daily or weekly average of QTIs. As of September 30, 2008, the Bank was in compliance with its QTL requirement with 73.28% of its assets invested in QTIs.  A savings association that does not meet a QTL test must either convert to a bank charter or comply with the following restrictions on its operations: (I) the savings association may not engage in any new activity or make any new investment, directly or indirectly, unless such activity or investment is permissible for a national bank; (ii) the branching powers of the savings
            association shall be restricted to those of a national bank; (iii) the savings association shall not be eligible to obtain any advances from its FHLB; and (iv) payment of dividends by the savings association shall be subject to the rules regarding payment of dividends by a national bank. Upon the expiration of three years from the date the savings association ceases to be a QTL, it must cease any activity and not retain any investment not permissible for a national bank and
            immediately repay any outstanding FHLB advances (subject to safety and soundness considerations).  20
  
 Item 1A. Risk Factors  Not applicable as the Company is a smaller reporting company.
  Item 1B. Unresolved Staff Comments  Not applicable.  Item 2. Properties  The Bank operates from its main office located at 1120 Jefferson Terrace, New Iberia, Louisiana and currently has twenty other offices. The majority of our offices are owned, however, three offices are leased under short-term operating leases as disclosed in Note 6 to the consolidated Financial Statements.The Bank’s total investment in office property and equipment was $39.8
            million with a net book value of $26.9 million at September 30, 2008.  Item 3. Legal Proceedings  At September 30, 2008, neither the Company nor its subsidiaries were involved in any pending legal proceedings, other than routine legal matters occurring in the ordinary course of business, which in the aggregate involve amounts which are believed by management to be immaterial to the consolidated financial condition or results of operations of the Company.  Item 4. Submission of Matters to a Vote of Security Holders  None.  PART II  Item 5. Market for Common Equity and Related Stockholder Matters and Issuer Purchases of Equity Securities  Information relating to the market for Registrant’s common equity and related stockholder matters appears under the heading “Market and Dividend Information” in the Registrant’s Annual Report to Stockholders for the fiscal year ended September 30, 2008 (the “Annual Report”) and is incorporated herein by reference.  21
  
 Set forth below is information regarding the Company’s stock repurchases during the fourth quarter of the fiscal year ended September 30, 2008.  ISSUER PURCHASES OF EQUITY SECURITIES  (a)Total Numberof Shares(or Units) Purchased

                        

                        (b)Average Price PaidPer Share(or Unit)

                        

                        (c)

                            Total Number ofShares (or Units) Purchased as Part of PubliclyAnnounced Plansor Programs

                        

                        (d)

                            Maximum Number(or ApproximateDollar Value) of Shares (or Units)that May Yet bePurchased Under thePlans or ProgramsJuly 1–31, 2008

                        

                        -

                        

                        

                        -

                        

                        -

                        

                        59,100August 1-31, 2008

                        

                        -

                        

                        

                        -

                        

                        -

                        

                        59,100September 1-30, 2008

                        

                        7,000

                        

                        

                        32.57

                        

                        7,000

                        

                        52,100Total

                        

                        7,000

                        

                        $

                        32.57

                        

                        7,000

                        

                        52,100
  Item 6. Selected Financial Data  Not applicable as the Company is a smaller reporting company.  Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations  The above-captioned information appears under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Annual Report and is incorporated herein by reference.  Item 7A. Quantitative and Qualitative Disclosures About Market Risk  Not applicable as the Company is a smaller reporting company.  Item 8. Financial Statements and Supplementary Data  The Company’s consolidated financial statements, together with the report thereon by Dixon Hughes PLLC, and the supplementary financial information appear in the Annual Report and are incorporated herein by reference.  Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure  None.  Item 9AT. Controls and Procedures  (a)Evaluation of disclosure controls and procedures. Based on their evaluation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)), the Company’s principal
            executive officer and principal financial officer have concluded that as of the end of the period covered by this Annual Report on Form 10-K such disclosure controls and procedures are effective.  22
  
 (b)Internal Control Over Financial Reporting. Management’s Report on Internal Control Over Financial Reporting is furnished herein by reference from the Annual Report. Such report is not deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934 or
            otherwise subject to the liabilities of that section. This annual report does not include an attestation of the Company’s registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’ registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permit the Company to provide only management’s report in this annual
            report.  Changes in internal control over financial reporting. During the last quarter of the year under report, there was no change in the Company’s internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.  Item 9B. Other Information  Not applicable.  PART III
  Item 10. Directors, Executive Officers and Corporate Governance  The information that appears under the headings “Proposal I – Election of Directors,” “Corporate Governance” and “Section 16(a) Beneficial Ownership Reporting Compliance” in the Registrant’s definitive proxy statement for the Registrant’s Annual Meeting of Stockholders to be held in January 2009 (the “Proxy
            Statement”) is incorporated herein by reference.  The Company has adopted a Code of Ethics that applies to its principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions. A copy of the Code will be furnished without charge upon written request to the Secretary, Teche Holding Company, 1120 Jefferson Terrace Boulevard, New Iberia, Louisiana
            70560.  Item 11. Executive Compensation  The above-captioned information appears under the headings “Executive Compensation” and “Director Compensation” in the Proxy Statement and is incorporated herein by reference.  23
  
 Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters  (a)

                        Securities Authorized for Issuance Under Equity Compensation Plans
  Set forth below is information as of September 30, 2008 with respect to compensation plans under which equity securities of the Registrant are authorized for issuance.  EQUITY COMPENSATION PLAN INFORMATION  (a)

                            

                            Number of Securitiesto be Issued UponExercise ofOutstanding Options,Warrants and Rights

                        

                        (b)

                            Weighted-AverageExercise Price ofOutstanding Options,Warrants and Rights

                        

                        (c)Number of SecuritiesRemaining Available forFuture Issuance UnderEquity CompensationPlans (Excluding SecuritiesReflected in Column (a))Equity compensation plans

                            approved by shareholders:

                        

                        247,060

                        

                        

                        $34.16

                        

                        

                        123,430Equity compensation plans not

                            approved by stockholders:

                        

                        20,696

                        

                        

                        29.47

                        

                        

                        -Total

                        

                        267,756

                        

                        

                        $33.80

                        

                        

                        123,430
  For information regarding the material features of the Registrant’s equity compensation plans, see Note 15 to the Consolidated Financial Statements included as part of Exhibit 13 to this report.  (b)

                        Security Ownership of Certain Beneficial Owners
  Information required by this item is incorporated herein by reference to the section entitled “Principal Holders of our Common Stock” in the Proxy Statement.  (c)

                        Security Ownership of Management
  Information required by this item is incorporated herein by reference to the section captioned “Proposal I – Election of Directors” in the Proxy Statement.  (d)

                        Changes in Control
  Management of the Company knows of no arrangements, including any pledge by any person of securities of the Company, the operation of which may at a subsequent date result in a change in control of the registrant.  Item 13. Certain Relationships and Related Transactions, and Director Independence  The above-captioned information appears under the headings “Corporate Governance” and “Related Party Transactions” in the Proxy Statement and is incorporated herein by reference.  24
  
 Item 14. Principal Accountant Fees and Services  The information relating to this item is incorporated herein by reference to the information contained under the section captioned “Proposal II – Ratification of Independent Auditors” in the Proxy Statement.  PART IV  Item 15. Exhibits and Financial Statement Schedules  (a)

                        The following documents are filed as a part of this report:
  (1)       The following financial statements and the report of the independent registered public accounting firm are included in the Annual Report are incorporated herein by reference:  Report of Independent Registered Public Accounting FirmConsolidated Balance Sheets as of September 30, 2008 and 2007Consolidated Statements of Income For the Years Ended September 30, 2008, 2007 and 2006Consolidated Statements of Stockholders’ Equity for the Years Ended September 30, 2008, 2007 and 2006Consolidated Statements of Cash Flows for the Years Ended September 30, 2008, 2007 and 2006Notes to Consolidated Financial Statements
  (2)       All schedules are omitted because they are not required or applicable, or the required information is shown in the consolidated financial statements or the notes thereto.  (3)

                        Exhibits
  The following exhibits are filed as part of this report:  3.1

                        Articles of Incorporation of Teche Holding Company*
 3.2

                        Bylaws of Teche Holding Company*
 4

                        Stock Certificate of Teche Holding Company*
 10.1

                        Teche Federal Savings Bank Management Stock Plan**
 10.2

                        Teche Holding Company 1995 Stock Option Plan**
 10.3

                        Teche Holding Company 1997 Stock Option Plan***
 10.4

                        Teche Holding Company 1998 Stock Option Plan***
 10.5

                        Teche Holding Company Stock Option Agreement with Scott Sutton****
 10.6

                        Teche Federal Savings Bank Restricted Stock Agreement with Scott Sutton****
 10.7

                        Teche Holding Company 2001 Stock-Based Incentive Plan*****
 10.8

                        Teche Holding Company 2004 Stock-Based Incentive Plan******
 10.9

                        Employment Agreement between Teche Holding Company and Patrick O. Little
 10.10

                        Employment Agreement between Teche Federal Bank and Patrick O. Little
 10.11

                        Teche Federal Bank Change in Control Severance Agreement for executive officers
 11

                        Statement regarding computation of earnings per share (see Note 14 to the Consolidated Financial Statements in the Annual Report)
 13

                        Annual Report to Stockholders for the fiscal year ended September 30, 2008
 21

                        Subsidiaries of the Registrant (see “Item 1 Business - Subsidiary Activity” herein)
 23

                        Consent of Dixon Hughes PLLC, Independent Registered Public Accounting Firm
 31

                        Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
 32

                        Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
  25
  
 _______________ *

                        Incorporated herein by reference to the identically numbered exhibits to the Registrant’s Registration Statement on Form S-1, filed with the Commission on December 16, 1994, Registration No. 333-87486.
 **

                        Incorporated herein by reference to Exhibits 10.1 and 10.2 to the Registrant’s Form 10-K for the fiscal year ended September 30, 1995.
 ***

                        Incorporated herein by reference to Exhibits 4.1 and 4.2 to the Registrant’s Registration Statement on Form S-8, filed with the Commission on June 3, 1998, Registration No. 333-55913.
 ****

                        Incorporated herein by reference to Exhibits 4.1 and 4.2 to the Registrant’s Registration Statement on Form S-8, filed with the Commission on January 28, 2000, Registration No. 333-95583.
 *****

                        Incorporated herein by reference to Exhibit 4.1 to the Registrant’s Registration Statement on Form S-8, filed with the Commission on May 1, 2002, Registration No. 333-87354.
 ******

                        Incorporated herein by reference to Exhibit 4.1 to the Registrant’s Registration Statement on Form S-8, filed with the Commission on May 25, 2005, Registration No. 333-125218.
     26  
   SIGNATURESPursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.TECHE HOLDING COMPANYDated: December 29, 2008

                        

                        

                        /s/ Patrick O. LittleBy:

                        Patrick O. Little

                            President, Chief Executive Officer

                            and Chairman of the Board

                            (Duly Authorized Representative)Pursuant to the requirement of the Securities Exchange Act of 1934, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on December 29, 2008./s/ Patrick O. Little

                        

                        /s/ J.L. ChauvinPatrick O. Little

                            President, Chief Executive Officer

                            and Chairman of the Board

                            (Principal Executive Officer)

                        

                        J.L. Chauvin

                            Director, Senior Vice President and Treasurer

                            (Principal Financial and Accounting Officer)/s/ Ernest Freyou

                        

                        /s/ Donelson T. Caffery, Jr.Ernest Freyou

                            Director

                        

                        Donelson T. Caffery, Jr.

                            Director/s/ Mary Coon Biggs

                        

                        /s/ W. Ross Little, Jr.Mary Coon Biggs

                            Director

                        

                        W. Ross Little, Jr.

                            Director and Secretary/s/ Henry L. Friedman

                        

                        /s/ Thomas F. KramerHenry L. Friedman

                            Director

                        

                        Thomas F. Kramer

                            Director/s/ Robert Judice, Jr.

                        

                        /s/ Robert L. Wolfe, Jr.Robert Judice, Jr.

                            Director

                        

                        Robert L. Wolfe, Jr.

                            Director