PAOLA, Kan., May 15 /PRNewswire-FirstCall/ -- Team Financial, Inc. (the Company) today announced net income of $928,000, or $.23 basic and diluted income per share, for the three months ended March 31, 2006, a decrease of 6.8%, compared to $996,000 or $.25 basic and $.24 diluted income per share, for the three months ended March 31, 2005.
Net interest income for the three months ended March 31, 2006 increased approximately $718,000, or 14%, from the same period last year, primarily due to the increase in loan balances and a higher net interest margin. Non- interest income decreased $56,000, or 3.1%, primarily due to a decrease in service charge income and a decrease in gain on sales of mortgage loans. Non- interest expense increased $608,000, or 11.2%, primarily due to an increase in salary and benefits expense as a result of hiring several new loan officers in the Colorado Springs and Kansas City markets, and an increase in occupancy and equipment expense.
Loans receivable increased approximately $23,400,000, or 5.6%, to $443,551,000 at March 31, 2006 compared to December 31, 2005. This increase was primarily a result of an increase in construction and land development loans.
The provision for loan losses was $275,000 for the three months ended March 31, 2006 compared to $145,000 for the three months ended March 31, 2005. The provision for loan losses increased $130,000 due to the increase in loan balances and also because the first quarter of 2005 was unusually low due to a large recovery. The allowance for loan losses as a percentage of loans receivable was 1.26% at March 31, 2006 and 1.29% at December 31, 2005, and non-performing loans were 0.95% of loans receivable at March 31, 2006 and 1.09% of loans receivable at December 31, 2005.
"We continue to focus on loan growth, as is evidenced by our $23 million loan growth during the quarter, and we continue to expand our net interest margin. We have successfully hired several new loan officers in our major markets, which should further contribute to our bottom line in the future," said Robert J. Weatherbie, Chairman and Chief Executive Officer of Team Financial, Inc.
Team Financial, Inc. is a financial services company with $699,000,000 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. 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.
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, 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
(Dollars In Thousands)
March 31, December 31,
2006 2005
Assets
Cash and due from banks $12,008 $14,592
Federal funds sold and interest
bearing bank deposits 5,629 19,768
Cash and cash equivalents 17,637 34,360
Investment securities:
Available for sale, at fair value
(amortized cost of $188,824 and
$192,388 at March 31, 2006 and December
31, 2005, respectively) 186,266 190,409
Total investment securities 186,266 190,409
Loans receivable, net of unearned
fees 443,551 420,181
Allowance for loan losses (5,605) (5,424)
Net loans receivable 437,946 414,757
Accrued interest receivable 4,654 4,607
Premises and equipment, net 16,221 16,359
Assets acquired through foreclosure 441 455
Goodwill 10,700 10,700
Intangible assets, net of
accumulated amortization 3,077 3,223
Bank owned life insurance policies 19,355 19,173
Other assets 2,590 2,486
Total assets $698,887 $696,529
Liabilities and Stockholders' Equity
Deposits:
Checking deposits $182,234 $186,791
Savings deposits 32,179 31,944
Money market deposits 48,728 46,465
Certificates of deposit 242,617 242,678
Total deposits 505,758 507,878
Federal funds purchased and
securities sold under agreements
to repurchase 9,404 4,036
Federal Home Loan Bank advances 111,120 111,131
Notes payable 178 202
Subordinated debentures 16,005 16,005
Accrued expenses and other liabilities 3,690 3,928
Total liabilities 646,155 643,180
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;
4,501,516 and 4,499,470 shares issued;
3,970,884 and 4,034,995 shares outstanding
at March 31, 2006 and December 31, 2005,
respectively 27,901 27,880
Capital surplus 474 417
Retained earnings 31,552 30,941
Treasury stock, 530,632 and 464,475
shares of common stock at cost
at March 31, 2006, and December
31, 2005, respectively (5,507) (4,583)
Accumulated other comprehensive
income (loss) (1,688) (1,306)
Total stockholders' equity 52,732 53,349
Total liabilities and
stockholders' equity $698,887 $696,529
See accompanying notes to the unaudited consolidated financial
statements
Team Financial, Inc. And Subsidiaries
Unaudited Consolidated Statements of Operations
(Dollars In Thousands, Except Per Share Data)
Three Months Ended
March 31
2006 2005
Interest Income:
Interest and fees on loans $7,947 $6,230
Taxable investment securities 1,886 1,810
Nontaxable investment securities 269 290
Other 137 76
Total interest income 10,239 8,406
Interest Expense:
Deposits
Checking deposits 460 226
Savings deposits 53 52
Money market deposits 239 140
Certificates of deposit 2,173 1,347
Federal funds purchased and
securities sold under agreements
to repurchase 36 23
FHLB advances payable 1,134 1,164
Notes payable and other borrowings 4 32
Subordinated debentures 388 388
Total interest expense 4,487 3,372
Net interest income before
provision for loan losses 5,752 5,034
Provision for loan losses 275 145
Net interest income after
provision for loan losses 5,477 4,889
Non-Interest Income:
Service charges 847 904
Trust fees 176 187
Gain on sales of mortgage loans 191 215
Bank owned life insurance income 216 208
Other 349 321
Total non-interest income 1,779 1,835
Non-Interest Expenses:
Salaries and employee benefits 3,075 2,617
Occupancy and equipment 768 672
Data processing 685 689
Professional fees 374 335
Marketing 80 61
Supplies 101 79
Intangible asset amortization 147 156
Other 809 822
Total non-interest expenses 6,039 5,431
Income before income taxes 1,217 1,293
Income tax expense 289 297
Net income $928 $996
Basic income per share $0.23 $0.25
Diluted income per share $0.23 $0.24
Shares applicable to basic income
per share 4,025,563 4,036,945
Shares applicable to diluted income
per share 4,078,114 4,091,956
See accompanying notes to the unaudited consolidated financial
statements
Team Financial, Inc. And Subsidiaries
Unaudited Selected Ratios and Other Data
As of and For
Three Months Ended
March 31
Selected Data 2006 2005
Performance Ratios
Return On Average Assets 0.54% 0.61%
Return On Average Equity 7.03% 7.66%
Average Equity To Average Assets 7.67% 8.00%
Net Interest Margin On Average
Earning Assets During The Period
(Tax Equivalent) 3.80% 3.59%
Efficiency Ratio from Continuing
Operations 80.19% 79.07%
Book Value Per Share $13.28 $12.83
Tangible Book Value Per Share from
Continuing Operations $9.91 $9.40
Asset Quality Ratios
Non-Performing Loans As A Percent Of
Total Loans 0.95% 0.94%
Non-Performing Assets As A Percent
Of Total Assets 0.67% 0.67%
Allowance For Loan Losses As A
Percent Of Total Loans 1.26% 1.29%
Allowance For Loan Losses As A
Percent of Non-Performing Loans 132.47% 137.41%
