TFIN Triumph Financial Inc

Team Financial, Inc. Announces Quarterly Results PAOLA, Kan., May 11 /PRNewswire-FirstCall/ -- Team Financial, Inc. (the Company) today announced net income of $828,000, or $.20 basic and diluted income per share, for the three months ended March 31, 2004, a decrease of 16%, compared to $991,000 or $.24 basic and diluted income per share, for the three months ended March 31, 2003. The decrease in net income was due to a $244,000 decrease in non-interest revenue for the three months ended March 31, 2004 to $3,160,000 compared to $3,404,000 for the three months ended March 31, 2003. The decrease in non- interest revenue was primarily due to a $308,000 decrease in gain on sales of mortgage loans to $343,000 for the three months ended March 31, 2004 from $651,000 for the three months ended March 31, 2003. The continued focus on small to mid-sized business lending in our market areas generated a $9,500,000, or 3% increase in total loans receivable. This was primarily a result of an increase in commercial loans to $227,000,000 at March 31, 2004 from $218,000,000 at December 31, 2003. The provision for loan losses decreased $95,000 to $250,000 for the three months ended March 31, 2004 compared to $345,000 for the three months ended March 31, 2003. This was a result of experiencing lower net charge offs during the three months ended March 31, 2004 of $58,000 compared to net charge offs experienced during the three months ended March 31, 2003 of $283,000. "We are pleased to report that we have experienced a 3% growth in loans for the first quarter. This in addition to a smaller provision for loan losses should have a positive impact on our net interest margin and net income. The current interest rate environment continues to impact our margins. We expect that improvement will occur as the markets price a raise in rates into the yield curve," said Robert J. Weatherbie, Chairman and Chief Executive Officer of Team Financial, Inc. "Our expansion in the Colorado Springs market continues with opening of The Colorado National Bank's downtown Colorado Springs branch. We also expect to have the Monument, Colorado branch open in the third quarter." Non-interest expense increased $151,000, or 2.4% to $6,528,000 during the three months ended March 31, 2004 from $6,377,000 during the three months ended March 31, 2003 due to increases in data processing expenses, occupancy costs and salaries and employee benefits. This increase was offset by a reduction in the provision for income taxes of $150,000 to $192,000 for the three months ended March 31, 2004 compared to $342,000 for the three months ended March 31, 2003. Team Financial, Inc. is a financial services company with $653,000,000 in total assets. It operates in the Kansas City metropolitan area, southeastern Kansas, western Missouri, the Omaha, Nebraska metropolitan area, the Tulsa, Oklahoma metropolitan area, and in Colorado Springs, Colorado. The Company offers a full range of consumer and corporate banking services, including small business loans, mortgage loans, employee benefit insurance services, property and casualty insurance services, 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 800-880-6262, ext. 305. 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 acquisition strategy, 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 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 (Dollars In Thousands) March 31, December 31, 2004 2003 Assets Cash and due from banks $14,067 $14,135 Interest bearing bank deposits 2,578 4,667 Cash and cash equivalents 16,645 18,802 Investment securities: Available for sale, at fair value (amortized cost of $216,087 and $218,377 at March 31, 2004 and December 31, 2003, respectively) 220,794 221,252 Total investment securities 220,794 221,252 Loans receivable, net of unearned fees 357,606 348,095 Allowance for loan losses (4,698) (4,506) Net loans receivable 352,908 343,589 Accrued interest receivable 3,761 4,002 Premises and equipment, net 15,342 14,132 Assets acquired through foreclosure 792 1,117 Goodwill 15,463 14,538 Intangible assets, net of accumulated amortization 5,618 5,830 Bank owned life insurance policies 17,939 17,756 Other assets 3,868 8,778 Total assets $653,130 $649,796 Liabilities and Stockholder's Equity Deposits: Checking deposits $165,079 $165,448 Savings deposits 32,714 32,715 Money market deposits 51,946 47,804 Certificates of deposit 200,411 200,192 Total deposits 450,150 446,159 Federal funds purchased and securities sold under agreements to repurchase 9,560 7,180 Federal Home Loan Bank advances 111,228 111,234 Notes payable and other borrowings 3,613 3,232 Subordinated debentures 16,005 16,005 Accrued expenses and other liabilities 8,679 13,582 Total liabilities 599,235 597,392 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; 4,459,553 and 4,449,638 shares issued; 4,084,470 and 4,099,555 shares outstanding at March 31, 2004 and December 31, 2003, respectively 27,535 27,448 Capital surplus 292 292 Retained earnings 26,480 25,979 Treasury stock, 375,083 and 350,083 shares of common stock at cost at March 31, 2004, and December 31, 2003, respectively (3,524) (3,212) Accumulated other comprehensive income 3,112 1,897 Total stockholders' equity 53,895 52,404 Total liabilities and stockholders' equity $653,130 $649,796 Team Financial, Inc. And Subsidiaries Unaudited Consolidated Statements of Operations (Dollars In Thousands, Except Per Share Data) Three Months Ended March 31 2004 2003 Interest Income: Interest and fees on loans $5,591 $5,965 Taxable investment securities 1,902 1,954 Nontaxable investment securities 298 247 Other 37 59 Total interest income 7,828 8,225 Interest Expense: Deposits Checking deposits 126 173 Savings deposits 56 70 Money market deposits 121 169 Certificates of deposit 1,160 1,468 Federal funds purchased and securities sold under agreements to repurchase 12 11 FHLB advances payable 1,238 1,240 Notes payable and other borrowings 89 55 Subordinated debentures 388 388 Total interest expense 3,190 3,574 Net interest income before provision for loan losses 4,638 4,651 Provision for loan losses 250 345 Net interest income after provision for loan losses 4,388 4,306 Non-Interest Income: Service charges 830 805 Trust fees 151 129 Insurance agency commissions 1,200 1,136 Gain on sales of mortgage loans 343 651 Gain on sales of investment securities 6 1 Bank owned life insurance income 215 227 Other 415 455 Total non-interest income 3,160 3,404 Non-Interest Expenses: Salaries and employee benefits 3,502 3,444 Occupancy and equipment 740 717 Data processing 612 500 Professional fees 287 311 Marketing 89 91 Supplies 100 108 Intangible asset amortization 250 329 Other 948 877 Total non-interest expenses 6,528 6,377 Income before income taxes 1,020 1,333 Income taxes 192 342 Net income $828 $991 Shares applicable to basic income per share 4,103,527 4,105,809 Basic income per share $0.20 $0.24 Shares applicable to diluted income per share 4,153,923 4,133,404 Diluted income per share $0.20 $0.24 Team Financial, Inc. And Subsidiaries Unaudited Selected Ratios and Other Data As of and For Three Months Ended March 31 Selected Data 2004 2003 Performance Ratios Return On Average Assets 0.51% 0.62% Return On Average Equity 6.24% 7.73% Average Equity To Average Assets 8.19% 7.98% Net Interest Margin On Average Earning Assets During The Period (Tax Equivalent) 3.35% 3.39% Efficiency Ratio 83.71% 79.17% Book Value Per Share $13.20 $12.59 Tangible Book Value Per Share $8.03 $7.50 Asset Quality Ratios Non Performing Loans As A Percent Of Total Loans 2.02% 1.89% Non Performing Assets As A Percent Of Total Assets 1.23% 1.30% Allowance For Loan Losses As A Percent Of Total Loans 1.31% 1.35% Allowance For Loan Losses As A Percent Of Non Performing Loans 64.91% 71.34% DATASOURCE: Team Financial, Inc. CONTACT: Michael L. Gibson, President of Investments-CFO of Team Financial, Inc., +1-800-880-6262, Ext. 305, Web site: http://www.teamfinancialinc.com/

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