Nearly six months after being ordered to boost capital, Team Financial Inc. warned that it would report a staggering full-year loss, and it disclosed a fresh batch of regulatory actions that further clouded its chances for survival.
The $766 million-asset Paola, Kan., company said in a securities filing Monday that regulators had deemed its TeamBank undercapitalized.
On Feb. 11 the Office of the Comptroller of the Currency ordered the bank to submit an acceptable capital restoration plan by March 2, according to the filing. Failing to do so could cause the bank to be taken into receivership, making it "extremely doubtful" the parent could stay in business.
Also Feb. 11, the OCC put restrictions on funding sources for Team Financial's Colorado National Bank, which is considered adequately capitalized.
Team Financial said it expects to post a loss of at least $44.2 million for last year, compared with a $4.1 million profit in 2007. The full-year provision grew fortyfold, to $28.5 million, and the company took $26.6 million of impairment charges.
In September the OCC issued consent orders requiring each of Team Financial's banks to have a core capital ratio of 8% and a Tier 1 risk-based capital ratio of 10%. Call reports show they were well below those levels on Dec. 31.
Team Financial warned in November that it could fail without a capital boost.