Team Financial Inc fka TFIN

[Estrella]

Office of the Comptroller of the Currency tells TeamBank it is undercapitalized

The Office of the Comptroller of the Currency has notified TeamBank that it is undercapitalized.

TeamBank is a subsidiary of Paola-based Team Financial Inc. (Nasdaq: TFIN). Team Financial said in a Monday filing with the Securities and Exchange Commission that the OCC is requiring TeamBank to submit a capital restoration plan no later than March 2.

If TeamBank is unable to comply with the OCC order, it faces possible enforcement actions that could include placing the bank into receivership.

TeamBank CEO Sandra Moll said in an interview Wednesday that a capital-raising initiative already is under way and that she expects to hand regulators a capital-restoration plan before the deadline.

“Our staff has done an amazing job working with customers — and we have very loyal customers — to make sure their accounts are structured properly,” Moll said. “We are making sure people understand their insurance coverage and are as safe as possible.”

TeamBank’s total risk-based capital ratio in the fourth quarter was 6.35 percent, according to filings with the Federal Deposit Insurance Corp. Regulators require a minimum of 8 percent for an adequately capitalized bank.

TeamBank had $669.8 million in assets on Dec. 31. It reported a fourth-quarter loss of $33.3 million and a provision for loan and lease losses of $26 million, according to filings with the FDIC.

“We are addressing aggressively some of the issues we are seeing in our loan portfolio that are a result of the downturn in the market,” Moll said. “We are identifying all potential issues through allowance for loss provisions, and setting aside that money makes our financials not look the brightest, as it does with a lot of other banks.”

The OCC considers Team Financial’s other subsidiary bank, Colorado National Bank, as adequately capitalized.

http://www.bizjournals.com/kansascity/stories/2009/02/23/daily21.html