PAOLA, Kan., Aug. 2 /PRNewswire-FirstCall/ -- Team Financial, Inc.
(the Company, Nasdaq: TFIN) today announced net income of
$1,411,000, or $.39 basic and $.38 diluted income per share, for
the three months ended June 30, 2007, an increase of 53.4%,
compared to $920,000 or $.24 basic and $.23 diluted income per
share, for the three months ended June 30, 2006. Net income for the
six months ended June 30, 2007 was $2,579,000, or $.72 basic and
$.70 diluted income per share, compared to $1,818,000, or $.46
basic and $.45 diluted income per share for the six months ended
June 30, 2006, an increase of 41.8%. Net interest income for the
three months ended June 30, 2007 increased approximately $446,000,
or 7.5%, from the same period last year, primarily due to the
increase in loan balances and an increase in net interest margin.
The net interest margin on average earning assets increased five
basis points to 3.81% during the three months ended June 30, 2007
from 3.76% during the same period last year. Non-interest income
increased approximately $191,000, or 11.0%, primarily due to a
$90,000 loss on sales of investment securities that was incurred
during the second quarter of 2006 as a result of restructuring the
investment portfolio. Also contributing to the increase in
non-interest income was a $43,000, or 20.9%, increase in trust fees
and a $24,000 increase in bank owned life insurance income.
Non-interest expenses decreased $27,000, or 0.4%, for the three
months ended June 30, 2007 compared to the same period in 2006
primarily due to decreases in salaries and benefits expense and
professional expenses. The decrease in professional expenses was
largely due to insurance coverage taking effect to cover the legal
costs associated with a pending lawsuit. Offsetting these decreases
were increases in occupancy and equipment and marketing expenses,
which were largely related to the opening of a new banking location
in Falcon, Colorado. Loans receivable increased approximately $23.5
million, or 4.8%, to $510.0 million at June 30, 2007 compared to
$486.5 million at December 31, 2006. This increase was primarily a
result of an increase in construction and land development loans.
The provision for loan losses was $77,000 for the three months
ended June 30, 2007 compared to $157,000 for the same period ended
June 30, 2006. The allowance for loan losses as a percent of loans
receivable was 1.15% at June 30, 2007 and 1.17% at December 31,
2006, and non-performing loans were .96% of loans receivable at
June 30, 2007 and 1.92% of loans receivable 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. "Despite a tough market, we managed to grow loans and
increase our net interest margin during the second quarter and
we've seen a marked improvement in our loan quality ratios. We have
never been a player in the subprime lending market, so we do not
have the credit problems that are plaguing many other financial
institutions. We've also seen widespread improvement in our
non-interest income, and we've held our expenses down. It all makes
for a pretty good quarter," said Robert J. Weatherbie, Chairman and
Chief Executive Officer of Team Financial, Inc. Team Financial,
Inc. is a financial services company with $766 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 and $59,000
decrease to the net income for the three and six months ending June
30, 2006, or $.01 basic and diluted income per share decrease for
the three months ending June 30, 2006 and $.02 basic and diluted
income per share decrease for the six months ended June 30, 2006.
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) June 30, December 31, Assets
2007 2006 Cash and due from banks $16,583 $14,529 Federal funds
sold and interest bearing bank deposits 1,611 22,621 Cash and cash
equivalents 18,194 37,150 Investment securities: Available for
sale, at fair value (amortized cost of $174,473 and $171,301 at
June 30, 2007 and December 31, 2006, respectively) 171,309 170,079
Non-marketable equity securities (amortized cost of $9,274 and
$9,061 at June 30, 2007 and December 31, 2006, respectively) 9,274
9,061 Total investment securities 180,583 179,140 Loans receivable,
net of unearned fees 509,982 486,497 Allowance for loan losses
(5,856) (5,715) Net loans receivable 504,126 480,782 Accrued
interest receivable 5,840 5,558 Premises and equipment, net 20,420
17,628 Assets acquired through foreclosure 615 817 Goodwill 10,700
10,700 Intangible assets, net of accumulated amortization 2,825
2,659 Bank-owned life insurance policies 20,325 19,926 Other assets
2,121 2,068 Total assets $765,749 $756,428 Liabilities and
Stockholder's Equity Deposits: Checking deposits $174,304 $194,979
Savings deposits 27,873 28,536 Money market deposits 63,119 57,123
Certificates of deposit 305,617 82,244 Total deposits 570,913
562,882 Federal funds purchased and securities sold under
agreements to repurchase 7,363 6,215 Federal Home Loan Bank
advances 108,038 108,069 Notes payable 100 200 Subordinated
debentures 22,681 22,681 Accrued expenses and other liabilities
5,232 5,864 Total liabilities 714,327 705,911 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; 3,633,564 and
3,594,784 shares outstanding at June 30, 2007 and December 31,
2006, respectively 27,916 27,901 Capital surplus 290 680 Retained
earnings 36,456 34,449 Treasury stock, 869,227 and 906,732 shares
of common stock at cost at June 30, 2007, and December 31, 2006,
respectively (11,066) (11,707) Accumulated other comprehensive loss
(2,174) (806) Total stockholders' equity 51,422 50,517 Total
liabilities and stockholders' equity $765,749 $756,428 TEAM
FINANCIAL, INC. AND SUBSIDIARIES Unaudited Consolidated Statements
of Operations (Dollars in thousands, except per share data) Three
Months Ended Six Months Ended June 30, June 30, 2007 2006 2007 2006
Interest Income: Interest and fees on loans $10,283 $8,690 $20,213
$16,612 Taxable investment securities 1,961 1,928 3,992 3,814
Nontaxable investment securities 293 271 580 540 Other 199 170 380
307 Total interest income 12,736 11,059 25,165 21,273 Interest
Expense: Deposits: Checking deposits 509 479 1,053 939 Savings
deposits 50 53 102 106 Money market deposits 520 338 1,034 577
Certificates of deposit 3,680 2,632 7,224 4,805 Federal funds
purchased and securities sold under agreements to repurchase 52 52
89 88 FHLB advances payable 1,126 1,129 2,239 2,263 Notes payable
and other borrowings 3 39 7 43 Subordinated debentures 402 389 804
777 Total interest expense 6,342 5,111 12,552 9,598 Net interest
income before provision for loan losses 6,394 5,948 12,613 11,675
Provision for loan losses 77 157 307 432 Net interest income after
provision for loan losses 6,317 5,791 12,306 11,243 Non-Interest
Income: Service charges 908 904 1,725 1,751 Trust fees 249 206 418
382 Gain on sales of mortgage loans 154 139 299 330 Gain (loss) on
sales of investment securities 1 (90) 1 (90) Bank-owned life
insurance income 238 214 475 430 Other 383 369 750 718 Total
non-interest income 1,933 1,742 3,668 3,521 Non-Interest Expenses:
Salaries and employee benefits 3,067 3,169 6,197 6,253 Occupancy
and equipment 842 728 1,577 1,496 Data processing 785 725 1,522
1,421 Professional fees 222 476 672 850 Marketing 169 95 279 175
Supplies 111 85 192 186 Intangible asset amortization 126 148 266
295 Other 929 852 1,715 1,661 Total non-interest expenses 6,251
6,278 12,420 12,337 Income before income taxes 1,999 1,255 3,554
2,427 Income tax expense 588 335 975 609 Net income $1,411 $920
$2,579 $1,818 Basic income per share $0.39 $0.24 $0.72 $0.46
Diluted income per share $0.38 $0.23 $0.70 $0.45 Shares applicable
to basic income per share 3,615,244 3,850,049 3,605,229 3,937,321
Shares applicable to diluted income per share 3,684,649 3,941,529
3,675,921 4,026,881 Team Financial, Inc. And Subsidiaries Unaudited
Selected Ratios and Other Data As of and For As of and For Three
Months Ended Six Months Ended June 30 June 30 Selected Data 2007
2006(c) 2007 2006(c) Balance Sheet Highlights Average Assets
$762,514 $717,689 $762,167 $708,156 Average Loans $504,821 $458,044
$498,803 $445,750 Non Performing Loans $4,897 $5,848 $4,897 $5,848
Performance Ratios Return On Average Assets 0.74% 0.51% 0.68% 0.52%
Return On Average Equity 10.96% 7.44% 10.16% 7.11% Average Equity
To Average Assets 6.77% 6.91% 6.71% 7.28% Net Interest Margin On
Average Earning Assets During The Period (Tax Equivalent) 3.81%
3.76% 3.79% 3.77% Efficiency Ratio(a) 75.07% 81.64% 76.29% 81.19%
Book Value Per Share $14.15 $14.78 Tangible Book Value Per Share(b)
$10.51 $11.09 Asset Quality Ratios Non Performing Loans As A
Percent Of Total Loans 0.96% 1.28% Non Performing Assets As A
Percent Of Total Assets 0.72% 0.94% Allowance For Loan Losses As A
Percent Of Total Loans 1.15% 1.25% Allowance For Loan Losses As A
Percent Of Non Performing Loans 119.58% 97.49% (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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