TFIN Triumph Financial Inc

PAOLA, Kan., Feb. 7 /PRNewswire-FirstCall/ -- Team Financial, Inc. (the "Company")(NASDAQ:TFIN) today announced net income of $651,000, or $0.18 basic and diluted income per share, for the three months ended December 31, 2007, a decrease of 49.7%, compared to $1,294,000 or $0.36 basic and $0.35 diluted income per share, for the three months ended December 31, 2006. Net income for the year ended December 31, 2007 was $4,137,000, or $1.15 basic and $1.13 diluted income per share, compared to $3,868,000, or $1.03 basic and $1.00 diluted income per share for the year ended December 31, 2006, an increase of 7.0%. For the three months ended December 31, 2007, net interest income increased approximately $328,000, or 5.2%, from the same period last year. The increase was primarily due to the increase in loan balances as net interest margin decreased by nine basis points to 3.73% during the three months ended December 31, 2007 from 3.82% during the same period last year. However, the net interest margin increased four basis points during the fourth quarter 2007 from 3.69% during the third quarter 2007 to 3.73% during the fourth quarter 2007. Non-interest income increased approximately $86,000, or 4.5%, primarily due to recording $75,000 of credit life insurance income and an increase in trust fees of approximately $22,000 over the fourth quarter of 2006. Also contributing to the increase in non-interest income was a $15,000, or 6.5%, increase in bank owned life insurance income. Non-interest expenses increased $1.4 million, or 21.8%, for the three months ended December 31, 2007 compared to the same period in 2006, primarily as a result of recording approximately $958,000, or $0.27 per share for the quarter, related to two lawsuit settlements and related expenses. Loans receivable increased approximately $74.4 million, or 15.3%, to $560.9 million at December 31, 2007 compared to $486.5 million at December 31, 2006. Approximately $44.8 million of the total loan growth came during the fourth quarter of 2007. The increase was primarily a result of an increase in construction and land development loans, some of which were purchased participations of loans outside of the Company's typical market areas. The increase in loans was funded, in large part, with a $21.5 million increase in brokered CD's during the fourth quarter. The provision for loan losses was $308,000 for the three months ended December 31, 2007 compared to $388,000 for the same period ended December 31, 2006. The allowance for loan losses as a percent of loans receivable was 1.07% at December 31, 2007 and 1.17% at December 31, 2006, and non-performing loans were 1.20% of loans receivable at December 31, 2007 and 1.92% of loans receivable at December 31, 2006. "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 $825 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 $30,000 and $117,000 decrease to net income for the three months and year ended December 31, 2006, or $.01 basic and diluted income per share decrease for the three months ended December 31, 2006 and $.03 basic and diluted income per share decrease for the year ended December 31, 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 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 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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