TEAM FINANCIAL INC 
By PAOLA, Kan.,
For the three months ended
Loans receivable increased approximately
The provision for loan losses was
"During the fourth quarter, we achieved significant loan growth that has positioned us for future revenue growth in 2008. Despite the successful quarter in our core operating activities, the litigation and settlement expenses overshadowed our success. We opened two new locations in the first half of 2007 and another two locations in the last half of the year, one in Olathe, Kansas in December, and one in Lee's Summit, Missouri in August. We look forward to these locations having considerable growth and providing a substantial return on investment as they are located in high-growth areas," said Robert J. Weatherbie, Chairman and Chief Executive Officer of Team Financial, Inc.
Team Financial, Inc. is a financial services company with
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
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 economic conditions in areas the Company's borrowers are located, 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)
December 31, December 31,
Assets 2007 2006
Cash and due from banks $20,258 $14,529
Federal funds sold and interest bearing
bank deposits 9,926 22,621
Cash and cash equivalents 30,184 37,150
Investment securities:
Available for sale, at fair value (amortized
cost of $166,369 and $171,301 at December 31,
2007 and December 31, 2006, respectively) 165,848 170,079
Non-marketable equity securities
(amortized cost of $9,493 and $9,061
at December 31, 2007 and December 31, 2006,
respectively) 9,493 9,061
Total investment securities 175,341 179,140
Loans receivable, net of unearned fees 560,861 486,497
Allowance for loan losses (5,987) (5,715)
Net loans receivable 554,874 480,782
Accrued interest receivable 5,599 5,558
Premises and equipment, net 22,083 17,628
Assets acquired through foreclosure 934 817
Goodwill 10,700 10,700
Intangible assets, net of accumulated
amortization 2,523 2,659
Bank-owned life insurance policies 20,739 19,926
Other assets 2,087 2,068
Total assets $825,064 $756,428
Liabilities and Stockholder's Equity
Deposits:
Checking deposits $187,356 $194,979
Savings deposits 25,848 28,536
Money market deposits 68,472 57,123
Certificates of deposit 347,710 282,244
Total deposits 629,386 562,882
Federal funds purchased and securities
sold under agreements to repurchase 2,969 6,215
Federal Home Loan Bank advances 108,005 108,069
Notes payable 2,195 200
Subordinated debentures 22,681 22,681
Accrued expenses and other liabilities 6,777 5,864
Total liabilities 772,013 705,911
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;
3,575,064 and 3,594,784 shares outstanding at
December 31, 2007 and December 31, 2006,
respectively 27,916 27,901
Capital surplus 308 680
Retained earnings 37,149 34,449
Treasury stock, 927,727 and 906,732 shares of
common stock at cost at December 31, 2007, and
December 31, 2006, respectively (11,978) (11,707)
Accumulated other comprehensive loss (344) (806
Total stockholders' equity 53,051 50,517
Total liabilities and stockholders'
equity $825,064 $756,428
TEAM FINANCIAL, INC. AND SUBSIDIARIES
Unaudited Consolidated Statements of Operations
(Dollars in thousands, except per share data)
Three Months Ended Year Ended
December 31, December 31,
2007 2006 2007 2006
Interest Income:
Interest and fees on loans $10,858 $9,784 $41,455 $35,663
Taxable investment securities 1,966 2,003 7,973 7,832
Nontaxable investment securities 329 242 1,235 1,038
Other 44 86 614 508
Total interest income 13,197 12,115 51,277 45,041
Interest Expense:
Deposits:
Checking deposits 329 446 1,817 1,845
Savings deposits 47 66 196 229
Money market deposits 626 514 2,288 1,508
Certificates of deposit 3,875 3,244 14,973 11,059
Federal funds purchased and
securities sold under agreements
to repurchase 145 47 273 171
FHLB advances payable 1,181 1,138 4,595 4,540
Notes payable and other borrowings 10 4 22 141
Subordinated debentures 400 400 1,610 1,588
Total interest expense 6,613 5,859 25,774 21,081
Net interest income before
provision for loan losses 6,584 6,256 25,503 23,960
Provision for loan losses 308 388 706 951
Net interest income after
provision for loan losses 6,276 5,868 24,797 23,009
Non-Interest Income:
Service charges 948 956 3,623 3,658
Trust fees 187 165 789 720
Gain on sales of mortgage loans 136 129 580 584
Gain (loss) on sales of
investment securities - 7 (4) (157)
Bank-owned life insurance income 249 234 966 884
Other 490 433 1,631 1,523
Total non-interest income 2,010 1,924 7,585 7,212
Non-Interest Expenses:
Salaries and employee benefits 3,389 3,096 13,027 12,333
Occupancy and equipment 832 858 3,356 3,127
Data processing 766 812 3,071 2,983
Professional fees 462 335 1,569 1,435
Marketing 117 124 563 408
Supplies 113 101 409 350
Intangible asset amortization 155 143 577 579
Trust Preferred Securities
redemption amortization - - - 823
Lawsuit settlements and related
expenses 958 - 958 -
Other 897 845 3,567 3,326
Total non-interest expenses 7,689 6,314 27,097 25,364
Income before income taxes 597 1,478 5,285 4,857
Income tax expense (benefit) (54) 184 1,148 989
Net income $651 $1,294 $4,137 $3,868
Basic income per share $0.18 $0.36 $1.15 $1.03
Diluted income per share $0.18 $0.35 $1.13 $1.00
Shares applicable to basic
income per share 3,590,825 3,597,045 3,604,443 3,765,118
Shares applicable to diluted
income per share 3,642,176 3,704,991 3,658,548 3,859,442
Team Financial, Inc. And Subsidiaries
Unaudited Selected Ratios and Other Data
(Dollars in thousands, except per share data)
As of and For As of and For
Three Months Ended Year Ended
December 31, December 31,
Selected Data 2007 2006(c) 2007 2006(c)
Balance Sheet Highlights
Average Assets $796,009 $739,969 $777,635 $719,203
Average Loans $538,021 $481,416 $509,414 $458,346
Non Performing Loans $6,711 $9,362 $6,711 $9,362
Performance Ratios
Return on Average Assets 0.32% 0.69% 0.53% 0.54%
Return on Average Equity 5.23% 10.83% 7.48% 7.67%
Average Equity to Average Assets 6.20% 6.40% 7.11% 7.01%
Net Interest Margin on Average
Earning Assets
During the Period
(Tax Equivalent) 3.73% 3.82% 3.75% 3.79%
Efficiency Ratio(a) 89.47% 77.19% 81.89% 81.37%
Book Value Per Share $14.84 $14.14
Tangible Book Value Per Share(b) $11.22 $10.51
Asset Quality Ratios
Non Performing Loans as a Percent
of Total Loans 1.20% 1.92%
Non Performing Assets as a Percent
of Total Assets 0.93% 1.35%
Allowance for Loan Losses as a
Percent of Total Loans 1.07% 1.17%
Allowance for Loan Losses as a
Percent of Non Performing Loans 89.21% 61.04%
(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
SOURCE Team Financial, Inc.
