Team Financial, Inc. Announces First Quarter Results

PAOLA, Kan., May 4  /PRNewswire-FirstCall/ -- Team Financial, Inc. (the "Company", Nasdaq: TFIN) today announced net income of $1,168,000, or $.32 basic and $.32 diluted income per share, for the three months ended March 31, 2007, an increase of 29.9%, compared to $899,000 or $.22 basic and diluted income per share, for the three months ended March 31, 2006.

Net interest income for the three months ended March 31, 2007 increased approximately $491,000, or 8.6%, from the same period last year, primarily due to the increase in loans offset by a decrease in net interest margin of 3 basis points.  Non-interest income decreased approximately $44,000, or 2.5% from the same three month period last year, primarily due to a decrease in gain on sales of mortgage loans and a decrease in service charges. Non-interest expense increased $110,000, or 1.8%, during the three months ended March 31, 2007 from the same period last year, primarily due to an increase associated with the preparation for the April 16th opening of a new branch in Falcon, Colorado and increased professional fees.

Loans receivable increased approximately $17.7 million, or 3.6%, to $504.2 million at March 31, 2007 compared to December 31, 2006.  This increase was primarily a result of an increase in construction and land development loans.

The provision for loan losses was $230,000 for the three months ended March 31, 2007 compared to $275,000 for the three months ended March 31, 2006. The allowance for loan losses as a percent of loans was 1.16% at March 31, 2007 and 1.17% at December 31, 2006, and non-performing loans were 1.15% of total loans at March 31, 2007 and 2.06% of total loans at December 31, 2006. The substantial decrease in non-performing loans during the first quarter of 2007 was attributable to the pay-off of a group of loans of approximately $2.2 million that were delinquent as of December 31, 2006.

"Our $17.7 million in loan growth coupled with an improvement in our loan portfolio quality during the first quarter show that our continued focus on controlled growth has been successful, and our nearly 30% increase in earnings over the same period last year is reflecting that.  We plan to continue our growth and our expansion into high-growth markets throughout 2007 with the opening of new branches.  In connection with this new growth, our new location in Falcon, Colorado opened on April 16, 2007 and we will also open new branches in Ottawa, Kansas and Lees Summit, Missouri this summer," said Robert J. Weatherbie, Chairman and Chief Executive Officer of Team Financial, Inc.

On February 6, 2007, a complaint was filed by International Insurance Brokers, LTD in the U.S. District Court for the Northern District of Oklahoma against the Company and certain officers of the Company, claiming breach of contract, negligent misrepresentation, fraud and misrepresentation and civil conspiracy in connection with the sale of the insurance agency subsidiary that was sold to International Insurance Brokers effective December 31, 2004. Damages sought by the defendants include not less than $10 million in actual damages, not less than $10 million for consequential, and not less than $10 million for punitive damages.  The Company believes the claims are totally without merit, and it is pursuing a vigorous defense and will also pursue available counterclaims against the plaintiff.

Team Financial, Inc. is a financial services company with $758 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 $29,000 net income decrease to the three months ending March 31, 2006, or $.01 basic and diluted income per share decrease.

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 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
                                (In thousands)

                                                March 31,       December 31,
   Assets                                          2007              2006

   Cash and due from banks                       $14,082            $14,529
   Federal funds sold and interest
    bearing bank deposits                          1,505             22,621
       Cash and cash equivalents                  15,587             37,150

   Investment securities:
     Available for sale, at fair value
      (amortized cost of $184,661 and
      $171,301 at March 31, 2007 and
      December 31, 2006, respectively)           174,692            170,079
     Non-marketable equity securities
      (amortized cost of $9,220 and
      $9,061 at March 31, 2007 and
      December 31, 2006, respectively)             9,220              9,061
        Total investment securities              183,912            179,140

   Loans receivable, net of unearned fees        504,167            486,497
   Allowance for loan losses                      (5,833)            (5,715)
        Net loans receivable                     498,334            480,782

   Accrued interest receivable                     5,336              5,558
   Premises and equipment, net                    19,234             17,628
   Assets acquired through foreclosure               602                817
   Goodwill                                       10,700             10,700
   Intangible assets, net of
    accumulated amortization                       2,529              2,659
   Bank-owned life insurance policies             20,130             19,926
   Other assets                                    1,975              2,068

       Total assets                             $758,339           $756,428

   Liabilities and Stockholder's Equity
   Deposits:
     Checking deposits                          $174,929           $194,979
     Savings deposits                             28,351             28,536
     Money market deposits                        61,659             57,123
     Certificates of deposit                     299,355            282,244
       Total deposits                            564,294            562,882
   Federal funds purchased and
    securities sold under
    agreements to repurchase                       6,109              6,215
   Federal Home Loan Bank advances               108,058            108,069
   Notes payable                                     108                200
   Subordinated debentures                        22,681             22,681
   Accrued expenses and
    other liabilities                              5,645              5,864

       Total liabilities                         706,895            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;
    3,573,459 and 3,594,784 shares
    outstanding at March 31, 2007 and
    December 31, 2006, respectively               27,916             27,901
   Capital surplus                                   748                680
   Retained earnings                              35,330             34,449
   Treasury stock, 929,332 and 906,732
    shares of common stock at cost
    at March 31, 2007, and
    December 31, 2006, respectively              (12,055)           (11,707)
   Accumulated other comprehensive loss             (495)              (806)

       Total stockholders' equity                 51,444             50,517

       Total liabilities and
        stockholders' equity                    $758,339           $756,428




                    TEAM FINANCIAL, INC. AND SUBSIDIARIES
               Unaudited Consolidated Statements of Operations
                (Dollars in thousands, except per share data)

                                                     Three Months Ended
                                                            March 31
                                                    2007              2006
   Interest Income:
   Interest and fees on loans                     $9,930            $7,923
   Taxable investment securities                   2,003             1,886
   Nontaxable investment securities                  287               269
   Other                                             209               137

     Total interest income                        12,429            10,215

   Interest Expense:
   Deposits:
     Checking deposits                               544               460
     Savings deposits                                 52                53
     Money market deposits                           514               239
     Certificates of deposit                       3,544             2,173
   Federal funds purchased and
    securities sold under
    agreements to repurchase                          37                36
   FHLB advances payable                           1,113             1,134
   Notes payable and other borrowings                  4                 4
   Subordinated debentures                           402               388

     Total interest expense                        6,210             4,487

     Net interest income before
      provision for loan losses                    6,219             5,728

   Provision for loan losses                         230               275

     Net interest income after
      provision for loan losses                    5,989             5,453

   Non-Interest Income:
   Service charges                                   817               847
   Trust fees                                        169               176
   Gain on sales of mortgage loans                   145               191
   Bank-owned life insurance income                  237               216
   Other                                             367               349

     Total non-interest income                     1,735             1,779

   Non-Interest Expenses:
   Salaries and employee benefits                  3,130             3,083
   Occupancy and equipment                           735               768
   Data processing                                   737               697
   Professional fees                                 450               374
   Marketing                                         110                80
   Supplies                                           81               101
   Intangible asset amortization                     140               147
   Other                                             786               809

     Total non-interest expenses                   6,169             6,059

     Income from continuing operations
      before income taxes                          1,555             1,173

   Income tax expense                                387               274

     Net income                                   $1,168              $899

   Basic income per share                          $0.32             $0.22
   Diluted income per share                        $0.32             $0.22
   Shares applicable to basic income
    per share                                  3,595,103         4,025,563
   Shares applicable to diluted income
    per share                                  3,697,358         4,078,114



                    Team Financial, Inc. And Subsidiaries
                  Unaudited Selected Ratios and Other Data


                                                       As of and For
                                                     Three Months Ended
                                                          March 31
  Selected Data                                    2007            2006(c)

  Balance Sheet Highlights

  Average Assets                                $761,419          $698,713

  Average Loans                                 $492,783          $433,467

  Non Performing Loans                            $5,822            $4,231


  Performance Ratios

  Return On Average Assets                         0.62%             0.52%

  Return On Average Equity                         9.33%             6.75%

  Average Equity To Average Assets                 6.67%             7.73%

  Net Interest Margin On Average
   Earning Assets During The Period
   (Tax Equivalent)                                3.75%             3.78%


  Efficiency Ratio(a)                             77.56%            80.71%

  Book Value Per Share                            $14.40            $13.38

  Tangible Book Value Per Share(b)                $10.78            $10.00



  Asset Quality Ratios

  Non Performing Loans As A
   Percent Of Total Loans                          1.15%             0.95%

  Non Performing Assets As
   A Percent Of Total Assets                       0.85%             0.67%

  Allowance For Loan Losses As
   A Percent Of Total Loans                        1.16%             1.26%

  Allowance For Loan Losses As
   A Percent Of Non Performing Loans             100.19%           132.47%



  (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., [phone], 



Web site:  http://www.teamfinancialinc.com/ 

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