PAOLA, Kan., May 4 /PRNewswire-FirstCall/ -- Team Financial, Inc.
(the "Company", Nasdaq: TFIN) today announced net income of
$1,168,000, or $.32 basic and $.32 diluted income per share, for
the three months ended March 31, 2007, an increase of 29.9%,
compared to $899,000 or $.22 basic and diluted income per share,
for the three months ended March 31, 2006. Net interest income for
the three months ended March 31, 2007 increased approximately
$491,000, or 8.6%, from the same period last year, primarily due to
the increase in loans offset by a decrease in net interest margin
of 3 basis points. Non-interest income decreased approximately
$44,000, or 2.5% from the same three month period last year,
primarily due to a decrease in gain on sales of mortgage loans and
a decrease in service charges. Non-interest expense increased
$110,000, or 1.8%, during the three months ended March 31, 2007
from the same period last year, primarily due to an increase
associated with the preparation for the April 16th opening of a new
branch in Falcon, Colorado and increased professional fees. Loans
receivable increased approximately $17.7 million, or 3.6%, to
$504.2 million at March 31, 2007 compared to December 31, 2006.
This increase was primarily a result of an increase in construction
and land development loans. The provision for loan losses was
$230,000 for the three months ended March 31, 2007 compared to
$275,000 for the three months ended March 31, 2006. The allowance
for loan losses as a percent of loans was 1.16% at March 31, 2007
and 1.17% at December 31, 2006, and non-performing loans were 1.15%
of total loans at March 31, 2007 and 2.06% of total loans at
December 31, 2006. The substantial decrease in non-performing loans
during the first quarter of 2007 was attributable to the pay-off of
a group of loans of approximately $2.2 million that were delinquent
as of December 31, 2006. "Our $17.7 million in loan growth coupled
with an improvement in our loan portfolio quality during the first
quarter show that our continued focus on controlled growth has been
successful, and our nearly 30% increase in earnings over the same
period last year is reflecting that. We plan to continue our growth
and our expansion into high-growth markets throughout 2007 with the
opening of new branches. In connection with this new growth, our
new location in Falcon, Colorado opened on April 16, 2007 and we
will also open new branches in Ottawa, Kansas and Lees Summit,
Missouri this summer," said Robert J. Weatherbie, Chairman and
Chief Executive Officer of Team Financial, Inc. On February 6,
2007, a complaint was filed by International Insurance Brokers, LTD
in the U.S. District Court for the Northern District of Oklahoma
against the Company and certain officers of the Company, claiming
breach of contract, negligent misrepresentation, fraud and
misrepresentation and civil conspiracy in connection with the sale
of the insurance agency subsidiary that was sold to International
Insurance Brokers effective December 31, 2004. Damages sought by
the defendants include not less than $10 million in actual damages,
not less than $10 million for consequential, and not less than $10
million for punitive damages. The Company believes the claims are
totally without merit, and it is pursuing a vigorous defense and
will also pursue available counterclaims against the plaintiff.
Team Financial, Inc. is a financial services company with $758
million in total assets. It operates in the Kansas City
metropolitan area, southeastern Kansas, western Missouri, the
Omaha, Nebraska metropolitan area, and in the Colorado Springs,
Colorado metropolitan area. The Company offers a full range of
consumer and corporate banking services, including small business
loans, mortgage loans, trust services, and investment and brokerage
services. For additional information on Team Financial, Inc., visit
its web site at http://www.teamfinancialinc.com/ or call
913-294-9667. Note: 2006 data has been adjusted to reflect the
adoption and application of Staff Accounting Bulletin No. 108 ("SAB
108"). The adoption of SAB 108 resulted in a $29,000 net income
decrease to the three months ending March 31, 2006, or $.01 basic
and diluted income per share decrease. This press release contains
forward-looking statements under the Private Securities Litigation
Reform Act of 1995 that are subject to certain risks and
uncertainties that could cause actual results to differ materially
from historical income and those presently anticipated or
projected. The Company cautions readers not to place undue reliance
on any such forward looking statements, which speak only as of the
date of this release. Such risks and uncertainties include those
detailed in the Company's filings with the Securities and Exchange
Commission, risks of adversely changing results of operations,
risks related to the Company's expansion strategies, risks relating
to loans and investments, including the effect of the change of the
local economic conditions, risks associated with the adverse
effects of the changes in interest rates, and competition for the
Company's customers by other providers of financial services, all
of which are difficult to predict and many of which are beyond the
control of the Company. TEAM FINANCIAL, INC. AND SUBSIDIARIES
Unaudited Consolidated Statements of Financial Condition (In
thousands) March 31, December 31, Assets 2007 2006 Cash and due
from banks $14,082 $14,529 Federal funds sold and interest bearing
bank deposits 1,505 22,621 Cash and cash equivalents 15,587 37,150
Investment securities: Available for sale, at fair value (amortized
cost of $184,661 and $171,301 at March 31, 2007 and December 31,
2006, respectively) 174,692 170,079 Non-marketable equity
securities (amortized cost of $9,220 and $9,061 at March 31, 2007
and December 31, 2006, respectively) 9,220 9,061 Total investment
securities 183,912 179,140 Loans receivable, net of unearned fees
504,167 486,497 Allowance for loan losses (5,833) (5,715) Net loans
receivable 498,334 480,782 Accrued interest receivable 5,336 5,558
Premises and equipment, net 19,234 17,628 Assets acquired through
foreclosure 602 817 Goodwill 10,700 10,700 Intangible assets, net
of accumulated amortization 2,529 2,659 Bank-owned life insurance
policies 20,130 19,926 Other assets 1,975 2,068 Total assets
$758,339 $756,428 Liabilities and Stockholder's Equity Deposits:
Checking deposits $174,929 $194,979 Savings deposits 28,351 28,536
Money market deposits 61,659 57,123 Certificates of deposit 299,355
282,244 Total deposits 564,294 562,882 Federal funds purchased and
securities sold under agreements to repurchase 6,109 6,215 Federal
Home Loan Bank advances 108,058 108,069 Notes payable 108 200
Subordinated debentures 22,681 22,681 Accrued expenses and other
liabilities 5,645 5,864 Total liabilities 706,895 705,911
Stockholders' Equity: Preferred stock, no par value, 10,000,000
shares authorized; no shares issued -- -- Common stock, no par
value, 50,000,000 shares authorized; 4,502,791 and 4,501,516 shares
issued; 3,573,459 and 3,594,784 shares outstanding at March 31,
2007 and December 31, 2006, respectively 27,916 27,901 Capital
surplus 748 680 Retained earnings 35,330 34,449 Treasury stock,
929,332 and 906,732 shares of common stock at cost at March 31,
2007, and December 31, 2006, respectively (12,055) (11,707)
Accumulated other comprehensive loss (495) (806) Total
stockholders' equity 51,444 50,517 Total liabilities and
stockholders' equity $758,339 $756,428 TEAM FINANCIAL, INC. AND
SUBSIDIARIES Unaudited Consolidated Statements of Operations
(Dollars in thousands, except per share data) Three Months Ended
March 31 2007 2006 Interest Income: Interest and fees on loans
$9,930 $7,923 Taxable investment securities 2,003 1,886 Nontaxable
investment securities 287 269 Other 209 137 Total interest income
12,429 10,215 Interest Expense: Deposits: Checking deposits 544 460
Savings deposits 52 53 Money market deposits 514 239 Certificates
of deposit 3,544 2,173 Federal funds purchased and securities sold
under agreements to repurchase 37 36 FHLB advances payable 1,113
1,134 Notes payable and other borrowings 4 4 Subordinated
debentures 402 388 Total interest expense 6,210 4,487 Net interest
income before provision for loan losses 6,219 5,728 Provision for
loan losses 230 275 Net interest income after provision for loan
losses 5,989 5,453 Non-Interest Income: Service charges 817 847
Trust fees 169 176 Gain on sales of mortgage loans 145 191
Bank-owned life insurance income 237 216 Other 367 349 Total
non-interest income 1,735 1,779 Non-Interest Expenses: Salaries and
employee benefits 3,130 3,083 Occupancy and equipment 735 768 Data
processing 737 697 Professional fees 450 374 Marketing 110 80
Supplies 81 101 Intangible asset amortization 140 147 Other 786 809
Total non-interest expenses 6,169 6,059 Income from continuing
operations before income taxes 1,555 1,173 Income tax expense 387
274 Net income $1,168 $899 Basic income per share $0.32 $0.22
Diluted income per share $0.32 $0.22 Shares applicable to basic
income per share 3,595,103 4,025,563 Shares applicable to diluted
income per share 3,697,358 4,078,114 Team Financial, Inc. And
Subsidiaries Unaudited Selected Ratios and Other Data As of and For
Three Months Ended March 31 Selected Data 2007 2006(c) Balance
Sheet Highlights Average Assets $761,419 $698,713 Average Loans
$492,783 $433,467 Non Performing Loans $5,822 $4,231 Performance
Ratios Return On Average Assets 0.62% 0.52% Return On Average
Equity 9.33% 6.75% Average Equity To Average Assets 6.67% 7.73% Net
Interest Margin On Average Earning Assets During The Period (Tax
Equivalent) 3.75% 3.78% Efficiency Ratio(a) 77.56% 80.71% Book
Value Per Share $14.40 $13.38 Tangible Book Value Per Share(b)
$10.78 $10.00 Asset Quality Ratios Non Performing Loans As A
Percent Of Total Loans 1.15% 0.95% Non Performing Assets As A
Percent Of Total Assets 0.85% 0.67% Allowance For Loan Losses As A
Percent Of Total Loans 1.16% 1.26% Allowance For Loan Losses As A
Percent Of Non Performing Loans 100.19% 132.47% (a) Calculated as
non-interest expense/(net interest income plus non-interest income)
(b) Calculated as (stockholders equity less goodwill, less
intangible assets, net of accumulated amortization plus mortgage
servicing rights) divided by shares outstanding. (c) 2006 data has
been adjusted to reflect the adoption and application of Staff
Accounting Bulletin No. 108 DATASOURCE: Team Financial, Inc.
CONTACT: Rick J. Tremblay, Chief Financial Officer of Team
Financial, Inc., +1-913-294-9667, Web site:
http://www.teamfinancialinc.com/
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