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Teche Announces Quarterly Dividend of $0.365 Per Common Share, Yield of 3.75% and Payout Ratio of 44.0%

NEW IBERIA, LA--(Marketwire -08/23/12)- (TSH) - The Board of Directors of Teche Holding Company, holding company of Teche Federal Bank, yesterday declared a quarterly dividend of $0.365 per share of its common stock. The effective dividend yield amounts to 3.75% based on the stock price on the close of business on August 21, 2012.

The dividend is 1.38% higher than the rate of $0.36 per common share this time last year. This represents a quarterly payout ratio of 44.0% based on diluted earnings per share for the quarter ended June 30, 2012. The dividend will be paid on September 28, 2012 to shareholders of record as of the close of business on September 14, 2012. The company has paid a cash dividend for 69 consecutive quarters.

Teche Federal presently operates eighteen offices in the Louisiana parishes of St. Mary, Iberia, Lafayette, St. Martin, Terrebonne, Lafourche, St. Landry and East Baton Rouge. The Company's common stock is listed as Teche Holding Company and is traded under the symbol "TSH" on the NYSE - AMEX. The bank's website address is www.teche.com. The Federal Deposit Insurance Corporation (FDIC) insures deposits at Teche Federal Bank up to the legal maximum limits.