TFIN Triumph Financial Inc

Team Financial, Inc. Announces Quarterly Results and Agreement to Sell Team Insurance Group, Inc. PAOLA, Kan., Feb. 14 /PRNewswire-FirstCall/ -- Team Financial, Inc. (the Company) (NASDAQ:TFIN), today announced net income of $844,000, or $.21 basic and diluted income per share, for the three months ended December 31, 2004, an increase of $161,000, or 24%, compared to $683,000, or $.17 basic and $.16 diluted income per share, for the three months ended December 31, 2003. Net income for the year ended December 31, 2004 was $3,578,000, or $.88 basic and $.87 diluted income per share, a decrease of 6%, compared to $3,792,000, or $.93 basic and $.92 diluted income per share, for the year ended December 31, 2003. The Company also announced that on February 7, 2005, it signed a definitive agreement to sell its insurance agency, Team Insurance Group, Inc., located in Tulsa, Oklahoma, to International Insurance Brokers, Ltd, LLC, an unaffiliated third party, for $7,000,000 cash. Separately identified in the December 31, 2004 financial information are the assets, liabilities and operating results from this discontinued operation. Financial information for prior periods presented have been reclassified to separately disclose discontinued operations. The sale is expected to close in February 2005. Mystic Capital Advisors Group, LLC provided consulting services to consummate the sale. "The sale of the insurance agency is advantageous to both parties. It allows the insurance agency to continue independently servicing its clients' insurance needs while the Company focuses on growing our banking services," stated Robert J. Weatherbie, Chief Executive Officer. Net income from continuing operations for the three months ended December 31, 2004 was $1,133,000, or $.28 basic and diluted income per share, compared to $731,000 or $.18 basic and diluted income per share for the three months ended December 31, 2003. Net income from continuing operations for the year ended December 31, 2004 was $3,796,000 or $.93 basic and diluted income per share compared to $3,442,000 for the year ended December 31, 2003 or $.84 basic and $.83 diluted per share. Contributing to the increase in net income from continuing operations for the quarter ended December 31, 2004 compared to the quarter ended December 31, 2003 was an increase in net interest income of approximately $420,000, or 9%, primarily due to an increase in interest income related to increased loan volume. Also contributing to the increase in net income from continuing operations was a decrease in the quarter ended December 31, 2004 income tax provision of $226,000 compared to the quarter ended December 31, 2003. During the quarter ended December 31, 2004, the Company recognized a tax benefit of $291,000 for the reversal of previously provided tax reserves from closed tax years. Service charge income increased approximately $118,000, or 13%, during the quarter ended December 31, 2004 compared to the quarter ended December 31, 2003 due to an increase in the volume of overdraft fees and other service fees. Offsetting these increases to the quarter's net income from continuing operations was an increase in the provision for loan losses of approximately $173,000, or 37%, for the three months ended December 31, 2004 compared to the three months ended December 31, 2003 and a decrease in the gain on sales of mortgage loans of approximately $117,000, or 28%, due to a decrease in mortgage banking activity. Net income from continuing operations increased approximately $354,000, or 10%, for the year ended December 31, 2004 compared to the year ended December 31, 2003. Contributing to this increase was an increase in net interest income of approximately $1,328,000, or 7%, primarily due to a decrease in interest expense during the year. The provision for loan losses for the year ended December 31, 2004 decreased approximately $325,000, or 18%, compared to the provision for loan losses for the year ended December 31, 2003. This decrease was due to improved loan quality experienced during 2004. Additionally, service charge income increased approximately $379,000, or 11%, compared to the year ended December 31, 2003 due to an increase in the volume of overdraft fees and other service charges. These increases were offset by a decrease in gain on sales of mortgage loans of approximately $1,524,000 due to a decrease in mortgage banking activity experienced in 2004 compared to 2003. Income tax expense from continuing operations for the year ended December 31, 2004 decreased approximately $736,000, or 77%, compared to the year ended December 31, 2003. Approximately $165,000 of the decrease was due to the completion of the 2003 income tax returns and the reconciliation of actual tax liabilities to those previously estimated in the tax provision. Approximately $291,000 of the decrease was due to the reversal of previously provided tax reserves from closed tax years recorded in the fourth quarter of 2004. The remaining decrease was a result of a decrease in taxable income in 2004 compared to 2003. Net loss from discontinued operations, all of which were related to the insurance agency, was $289,000 for the quarter ended December 31, 2004 compared to a net loss of $48,000 for the quarter ended December 31, 2003. Discontinued operations incurred a net loss of $218,000 for the year ended December 31, 2004 compared to net income of $350,000 for the year ended December 31, 2003. The decrease in the 2004 year end results from discontinued operations compared to 2003 was a result of a decrease in commission revenue of approximately $301,000 due to a decreased volume of policy renewals coupled with asset impairment charges of approximately $293,000 recorded in the fourth quarter of 2004. In December 2004, the Company recorded goodwill impairment of approximately $174,000. The impairment was originally estimated to be $800,000 to $1,000,000 as set forth in a Form 8-K filed with the SEC on December 8, 2004. The selling price stipulated in the agreement to sell the insurance agency was used to determine the fair market value of the subsidiary at December 31, 2004, indicating a lower impairment than originally estimated. Additionally, as a result of the pending sale of the insurance agency, it was determined that a non-compete agreement with an insurance agency employee should be written off as of December 31, 2004. This resulted in an additional write-down of approximately $119,000 included in discontinued operations. Loans receivable increased approximately $30,676,000 to $378,771,000 at December 31, 2004 compared to $348,095,000 at December 31, 2003. This increase was primarily due to an increase in the commercial loan portfolio. Non-performing loans decreased $4,506,000, or 62%, to $2,754,000 or .73% of total loans at December 31, 2004, compared to $7,260,000, or 2.09% of total loans at December 31, 2003. The decrease in non-performing loans was primarily due to resolution of two large credits during 2004 that were classified as non-performing at December 31, 2003. "Our continued efforts to focus on customer service resulted in an increase of our loan portfolio of approximately $30,676,000 as of December 31, 2004 compared to December 31, 2003. Additionally, we achieved significant improvements in the loan quality as evidenced in the decrease in non- performing loans of 62% from December 31, 2003 and a decrease in the provision for loan losses of 18% during the year ended December 31, 2004 compared to 2003," stated Robert J. Weatherbie, Chief Executive Officer. Team Financial, Inc. is a financial services company with approximately $664,000,000 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. Services provided by continuing operations include a full range of consumer and corporate banking services, including small business loans, mortgage loans, trust services, and investment and brokerage services. The insurance agency, which is presented as discontinued operations, operates in the Tulsa, Oklahoma metropolitan area and represents approximately $8,300,000 of the total assets at December 31, 2004. For additional information on Team Financial, Inc., visit its Web site at http://www.teamfinancialinc.com/ or call 913-294-9667. 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 filings with the Securities and Exchange Commission, risks of adversely changing results of operations, risks related to acquisition strategies, risk of 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 customers by other providers of financial services, all of which are difficult to predict and many of which are beyond the Company's control. Team Financial, Inc. And Subsidiaries Unaudited Consolidated Statements of Financial Condition (Dollars In Thousands) December 31, December 31, 2004 2003 Assets Cash and due from banks $13,718 $13,963 Interest bearing bank deposits 21,023 4,627 Cash and cash equivalents 34,741 18,590 Investment securities: Available for sale, at fair value (amortized cost of $190,369 and $218,377 at December 31, 2004 and December 31, 2003, respectively) 191,842 220,230 Total investment securities 191,842 220,230 Loans receivable, net of unearned fees 378,771 348,095 Allowance for loan losses (4,898) (4,506) Net loans receivable 373,873 343,589 Accrued interest receivable 3,819 4,002 Premises and equipment, net 15,317 13,721 Assets acquired through foreclosure 408 1,117 Goodwill 10,581 10,700 Intangible assets, net of accumulated amortization 3,930 4,502 Bank owned life insurance policies 18,460 17,756 Other assets 2,830 2,394 Assets of discontinued operations 8,282 13,195 Total assets $664,083 $649,796 Liabilities and Stockholders' Equity Deposits: Checking deposits $183,650 $165,448 Savings deposits 32,749 32,715 Money market deposits 49,931 47,804 Certificates of deposit 201,620 200,192 Total deposits 467,950 446,159 Federal funds purchased and securities sold under agreements to repurchase 5,669 7,180 Federal Home Loan Bank advances 111,915 111,234 Notes payable and other borrowings 3,544 3,232 Subordinated debentures 16,005 16,005 Accrued expenses and other liabilities 4,864 5,950 Liabilities of discontinued operations 1,282 7,632 Total liabilities 611,229 597,392 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; 4,496,753 and 4,449,638 shares issued; 4,034,178 and 4,099,555 shares outstanding at December 31, 2004 and December 31, 2003, respectively 27,849 27,448 Capital surplus 306 292 Retained earnings 28,264 25,979 Treasury stock, 462,575 and 350,083 shares of common stock at cost at December 31, 2004 and December 31, 2003, respectively (4,537) (3,212) Accumulated other comprehensive income 972 1,897 Total stockholders' equity 52,854 52,404 Total liabilities and stockholders' equity $664,083 $649,796 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 2004 2003 2004 2003 Interest Income: Interest and fees on loans $6,146 $5,598 $23,308 $23,189 Taxable investment securities 1,848 1,932 7,364 7,144 Nontaxable investment securities 294 290 1,203 1,094 Other 33 32 100 152 Total interest income 8,321 7,852 31,975 31,579 Interest Expense: Deposits Checking deposits 173 130 570 554 Savings deposits 52 57 212 246 Money market deposits 136 116 493 557 Certificates of deposit 1,221 1,215 4,630 5,392 Federal funds purchased and securities sold under agreements to repurchase 61 15 143 49 FHLB advances payable 1,190 1,254 4,865 4,998 Notes payable and other borrowings 36 33 125 174 Subordinated debentures 388 388 1,553 1,553 Total interest expense 3,257 3,208 12,591 13,523 Net interest income before provision for loan losses 5,064 4,644 19,384 18,056 Provision for loan losses 644 471 1,465 1,790 Net interest income after provision for loan losses 4,420 4,173 17,919 16,266 Non-Interest Income: Service charges 1,024 906 3,952 3,573 Trust fees 173 175 664 608 Insurance agency commissions - - - - Gain on sales of mortgage loans 303 420 1,264 2,788 Gain (loss) on sales of investment securities 4 (1) (50) 294 Bank owned life insurance income 198 228 821 892 Other 368 316 1,499 1,653 Total non-interest income 2,070 2,044 8,150 9,808 Non-Interest Expenses: Salaries and employee benefits 2,650 2,731 10,638 10,927 Occupancy and equipment 734 658 2,765 2,495 Data processing 644 583 2,528 2,190 Professional fees 272 204 1,179 1,090 Marketing 81 76 355 267 Supplies 114 97 378 381 Intangible asset amortization 185 241 798 823 Disposal of branch assets - - - 258 Other 805 798 3,410 3,243 Total non-interest expenses 5,485 5,388 22,051 21,674 Net income from continuing operations before income taxes 1,005 829 4,018 4,400 Income tax expense (benefit) (128) 98 222 958 Net income from continuing operations 1,133 731 3,796 3,442 Net income (loss) from discontinued operations, net of tax (289) (48) (218) 350 Net income $844 $683 $3,578 $3,792 Basic income per share from continuing operations $0.28 $0.18 $0.93 $0.84 Diluted income per share from continuing operations $0.28 $0.18 $0.93 $0.83 Basic income (loss) per share from discontinued operations $(0.07) $(0.01) $(0.05) $0.09 Diluted income (loss) per share from discontinued operations $(0.07) $(0.01) $(0.05) $0.09 Basic income per share $0.21 $0.17 $0.88 $0.93 Diluted income per share $0.21 $0.16 $0.87 $0.92 Shares applicable to basic income per share 4,016,685 4,092,528 4,060,587 4,095,903 Shares applicable to diluted income per share 4,050,376 4,141,463 4,094,714 4,131,381 Team Financial, Inc. And Subsidiaries Unaudited Selected Ratios and Other Data As of and For the As of and For the Three Months Ended Year Ended December 31 December 31 Selected Data 2004 2003 2004 2003 Performance Ratios Return on average assets 0.51% 0.42% 0.55% 0.59% Return on average equity 6.36% 5.20% 6.84% 7.28% Average equity to average assets 8.02% 8.16% 8.04% 8.06% Net interest margin on average earning assets during the period (tax equivalent) 3.60% 3.39% 3.49% 3.30% Efficiency ratio 84.89% 83.89% 83.56% 79.14% Book value per share $13.10 $12.78 Tangible book value per share $8.01 $7.97 Asset Quality Ratios Non-performing loans as a percent of total loans 0.73% 2.09% Non-performing assets as a percent of total assets 0.48% 1.29% Allowance for loan losses as a percent of total loans 1.29% 1.29% Allowance for loan losses as a percent of non-performing loans 177.85% 62.07% DATASOURCE: Team Financial, Inc. CONTACT: Michael L. Gibson, President of Investments-CFO, of Team Financial, Inc., +1-913-294-9667, Web site: http://www.teamfinancialinc.com/

Copyright