TeamBank also reported problems meeting regulators' expectations for maintaining its own funding sources, the filing said. The bank has tapped out its ability to borrow from the Federal Home Loan Bank, which requires collateral from the bank's assets to secure the borrowings.
The bank also is switching some of the collateral it pledged to the Federal Home Loan Bank with other collateral it had pledged to the Federal Reserve Bank of Kansas City for other borrowings.
There is a possibility that if TeamBank can't come up with enough acceptable collateral and the Federal Home Loan Bank "were to declare a default" then "the entire balance outstanding would become immediately due and payable and the FDIC could seize and sell most of TeamBank's assets," the filing said.
Again, Moll described that event as a worst case scenario the publicly traded Team Financial is required to note. She said the Federal Home Loan Bank is working with bank officials on the problem.
"We fully believe at this time the (collateral) deficiency will be cleared," she said.
The filing provided a second preview of the company's full report on its financial condition as of Sept. 30. The full report is overdue, though the company gained an automatic extension of time to file it with the SEC.
Team Financial has struggled to overcome problems stemming from its concentration in real estate lending and deficiencies in handling the loans.
In April, the company disclosed the problems and reported that regulators had determined both its banks were "in troubled condition."
Team shares were down 39 cents at $1.45 in morning trading.
To reach Mark Davis, call 816-234-4372 or send e-mail to mdavis@kcstar.com.
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