NAPLES, Fla., Nov. 15, 2010 (GLOBE NEWSWIRE) -- TIB Financial Corp. (Nasdaq:TIBB) today reported its financial results and filed its quarterly report on Form 10-Q for the third quarter of 2010. On September 30, 2010, TIB closed on an investment from North American Financial Holdings, Inc. ("NAFH") of $175 million which effectively recapitalized the Company and its subsidiary Bank, TIB Bank (the "Bank").
"The additional capital from the NAFH investment enables the Company to refocus on, as its primary objectives, growth, expansion and improving profitability and efficiency while providing increasingly competitive financial services to the communities we serve," said R. Eugene Taylor, Chairman and Chief Executive Officer of the Company and NAFH. "As a financial institution with the financial strength and stability of over $193 million of capital, unlike many banks, we are actively seeking to expand our franchise, originate loans, grow deposits and build new customer relationships and expand on existing ones," continued Taylor.
"While in line with our expectations, TIB's operating results reflect the current Florida economic environment which has persisted for several years. We are confident that the recapitalized TIB Bank is well positioned to provide highly competitive financial services to its customers and its communities," added Chris Marshall, Chief Financial Officer of the Company and NAFH.
Significant quarterly accomplishments are outlined below.
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We originated $9.5 million of commercial loans, $34 million of residential mortgages and $6.4 million in consumer and indirect loans to prime borrowers during the quarter.
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Naples Capital Advisors and TIB Bank's trust department continued to establish new investment management and trust relationships, increasing the market value of assets under management by $40 million or 28% from September 30, 2009 and by $15 million, or 9% during the quarter to $184 million as of September 30, 2010.
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Our special asset workout group was able to work with borrowers to return to accrual or achieve the pay off or pay down of approximately $3.7 million in nonaccrual loans, foreclose or negotiate deeds in lieu of foreclosure for approximately $9.3 million of nonaccrual loans and sell approximately $3.2 million of other real estate owned during the quarter.
- The net interest margin increased 11 basis points to 2.85% during the quarter in comparison to 2.74% in the second quarter of 2010 due partly to the $184,000 increase in net interest income. This increase is largely attributable to a lower level of loans placed on nonaccrual during the third quarter of 2010 as compared to the second quarter. In addition, there was a decrease in the average balance of loans outstanding due in part to the charge-down or foreclosure of loans. Both of these items led to an increase in the yield on loans.
Financial Discussion
Due to the closing of the investment by North American Financial Holdings, Inc. on September 30, 2010, resulting in their ownership of approximately 99% of the Company, significant preliminary accounting adjustments were recorded resulting in the Company's balance sheet being revalued at the fair value. The most significant adjustments were recorded relating to loans which previously were recorded based upon their carrying amounts and were adjusted to reflect September 30, 2010 estimated fair values. Accordingly, under accounting principles generally accepted in the United States, no allowance for loan losses was required at September 30, 2010 and the operating results of the Company in future periods will be impacted by these fair value adjustments as the underlying assets and liabilities are converted in the normal course of business. As the Company is still in the process of completing the fair value analysis of assets and liabilities, the final adjustments may differ significantly from the preliminary estimates recorded to date. A full valuation allowance was provided against net deferred tax assets related to the preliminary fair value adjustments due to management's assessment that insufficient positive objective evidence existed at this time to support a conclusion that realization of such assets would be more likely than not. This had the effect of increasing the amount of goodwill recorded at September 30, 2010.
The net loss for the quarter was $33.7 million compared to $8.1 million for the third quarter of 2009. The increased loss is primarily due to the following: $14.4 million in increased valuation adjustments, losses on sale and operating expenses associated with foreclosed real estate (OREO); no tax benefit recorded in the current period as a result of the Company's deferred income tax assets being fully reserved; a $2.3 million higher provision for loan losses; and $2.2 million in lower non-interest income.
The net loss for the three months ended September 30, 2010 of $33.7 million was primarily due to the provision for loan losses of $17.1 million and OREO related write-downs and expenses of $15.4 million. The third quarter 2010 provision for loan losses primarily reflects net charge offs of $12.4 million. The net loss allocated to common shareholders was $10.1 million, or $0.68 per share for the current quarter, compared to a net loss of $0.99 per share for the second quarter of 2010 and $0.59 for the comparable 2009 quarter. The 2010 third quarter net loss allocated to common shareholders includes the impact of a $24.3 million gain allocated to common shareholders related to the exchange of Series A preferred stock for Common Stock and Series B Preferred Stock valued at approximately $12.2 million in connection with the investment by NAFH.
During the current quarter, no income tax benefit was recorded as an incremental valuation allowance was recorded offsetting the increase in deferred tax assets attributable to the net operating loss for the quarter.
About TIB Financial Corp.
Headquartered in Naples, Florida, TIB Financial Corp. is a financial services company with approximately $1.7 billion in total assets and 27 full-service banking offices throughout the Florida Keys, Homestead, Naples, Bonita Springs, Fort Myers, Cape Coral and Venice. TIB Financial Corp. is also the parent company of Naples Capital Advisors, Inc., a registered investment advisor with approximately $184 million of assets under advisement.
TIB Financial Corp., through its wholly owned subsidiaries, TIB Bank and Naples Capital Advisors, Inc., serves the personal and commercial banking and investment management needs of local residents and businesses in its market areas. The companies' experienced professionals are local community leaders, who focus on a relationship-based approach built around anticipating specific customer needs, providing sound advice and making timely decisions. To learn more about TIB Bank and Naples Capital Advisors, Inc., visit www.tibbank.com and www.naplescapitaladvisors.com, respectively.
The TIB Financial Corp. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7275
Copies of recent news releases, SEC filings, price quotes, stock charts and other valuable information may be found on TIB's investor relations site at www.tibfinancialcorp.com. For more information, contact Chris Marshall, Chief Financial Officer, at (704) 554-5901, or Stephen J. Gilhooly, Treasurer, at (239) 659-5876.
Except for historical information contained herein, the statements made in this press release constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements involve certain risks and uncertainties, including statements regarding the Company's strategic direction, prospects and future results. Certain factors, including those outside the Company's control, may cause actual results to differ materially from those in the "forward-looking" statements, including economic and other conditions in the markets in which the Company operates; risks associated with acquisitions, competition, seasonality and the other risks discussed in our filings with the Securities and Exchange Commission, which discussions are incorporated in this press release by reference.
| TIB FINANCIAL CORP. AND SUBSIDIARIES | |||||
| UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||
| (Dollars in thousands, except per share data) | |||||
| Predecessor Company | |||||
| For the Quarter Ended | |||||
| September 30, | June 30, | March 31, | December 31, | September 30, | |
| 2010 | 2010 | 2010 | 2009 | 2009 | |
| Interest and dividend income | $17,042 | $16,988 | $18,287 | $19,120 | $20,327 |
| Interest expense | 6,256 | 6,386 | 6,793 | 7,943 | 8,564 |
| NET INTEREST INCOME | 10,786 | 10,602 | 11,494 | 11,177 | 11,763 |
| Provision for loan losses | 17,072 | 7,700 | 4,925 | 16,428 | 14,756 |
| NON-INTEREST INCOME: | |||||
| Service charges on deposit accounts | 831 | 839 | 915 | 1,009 | 988 |
| Fees on mortgage loans sold | 455 | 481 | 283 | 370 | 340 |
| Investment securities gains, net | -- | 993 | 1,642 | 2,477 | 1,127 |
| Investment advisory and trust fees | 328 | 313 | 307 | 297 | 279 |
| Gain on bank owned life insurance policy | -- | 134 | -- | -- | 1,186 |
| Other income | 804 | 734 | 267 | 647 | 679 |
| Total non-interest income | 2,418 | 3,494 | 3,414 | 4,800 | 4,599 |
| NON-INTEREST EXPENSE: | |||||
| Salaries & employee benefits | 6,610 | 6,413 | 6,836 | 6,858 | 7,288 |
| Net occupancy expense | 2,391 | 2,273 | 2,284 | 2,487 | 2,365 |
| Goodwill impairment charge | -- | -- | -- | 5,887 | -- |
| Foreclosed asset related expense | 15,438 | 5,149 | 1,100 | 733 | 1,017 |
| Other expense | 5,348 | 6,660 | 4,814 | 4,658 | 4,524 |
| Total non-interest expense | 29,787 | 20,495 | 15,034 | 20,623 | 15,194 |
| Loss before income taxes | (33,655) | (14,099) | (5,051) | (21,074) | (13,588) |
| Income tax expense (benefit) | -- | -- | -- | 24,032 | (5,491) |
| NET LOSS | $ (33,655) | $(14,099) | $(5,051) | $ (45,106) | $ (8,097) |
| Dividends earned by preferred shareholders and discount accretion | 680 | 669 | 660 | 654 | 650 |
| Gain on retirement of Series A preferred allocated to common shareholders | (24,276) | -- | -- | -- | -- |
| Net loss allocated to common shareholders | $ (10,059) | $(14,768) | $(5,711) | $ (45,760) | $ (8,747) |
| NET LOSS PER COMMON SHARE: | ($0.68) | ($0.99) | ($0.38) | ($3.08) | ($0.59) |
| TIB FINANCIAL CORP. AND SUBSIDIARIES | |||||
| SELECTED FINANCIAL DATA | |||||
| (Dollars in thousands, except per share data) | |||||
| As of or For the Quarter Ended | |||||
| September 30, | June 30, | March 31, | December 31, | September 30, | |
| 2010 | 2010 | 2010 | 2009 | 2009 | |
|
Successor Company |
Predecessor Company | ||||
| Real estate mortgage loans: | |||||
| Commercial | $590,433 | $649,679 | $662,875 | $680,409 | $683,828 |
| Residential | 222,477 | 235,423 | 234,608 | 236,945 | 240,485 |
| Farmland | 11,922 | 13,571 | 13,798 | 13,866 | 13,346 |
| Construction and vacant land | 47,055 | 60,698 | 72,215 | 97,424 | 114,613 |
| Commercial and agricultural loans | 61,600 | 68,696 | 70,660 | 69,246 | 71,789 |
| Indirect auto loans | 25,524 | 25,918 | 25,634 | 50,137 | 55,805 |
| Home equity loans | 32,991 | 36,856 | 37,226 | 37,947 | 38,056 |
| Other consumer loans | 8,542 | 9,759 | 9,592 | 10,190 | 10,305 |
| Total loans | $1,000,544 | $1,100,600 | $1,126,608 | $1,196,164 | $1,228,227 |
| Gross loans | $1,000,544 | $1,101,672 | $1,127,615 | $1,197,516 | $1,229,631 |
| Net loan charge-offs (Predecessor Company) | $12,376 | $7,819 | $6,179 | $19,461 | $8,086 |
|
Successor Company |
Predecessor Company | ||||
| Allowance for loan losses | $-- | $27,710 | $27,829 | $29,083 | $32,115 |
| Allowance for loan losses/total loans | N/A | 2.52% | 2.47% | 2.43% | 2.61% |
| Allowance for loan losses excluding specific reserves | N/A | $20,352 | $19,514 | $20,043 | $17,014 |
| Allowance for loan losses excluding specific reserves/non-impaired loans | N/A | 2.06% | 1.92% | 1.91% | 1.53% |
| Non-performing loans | $47,364 | $76,632 | $55,697 | $72,833 | $66,235 |
| Allowance for loan losses/non-performing loans | N/A | 36% | 50% | 40% | 48% |
| Non performing loans/gross loans | 4.73% | 6.96% | 4.94% | 6.08% | 5.39% |
| Annualized net charge-offs/average loans | N/A | 2.81% | 2.13% | 6.40% | 2.58% |
| Total interest-earning assets | $1,530,066 | $1,532,946 | $1,571,804 | $1,604,710 | $1,593,287 |
| Other real estate owned | $30,531 | $38,699 | $41,078 | $21,352 | $19,582 |
| Other repossessed assets | $163 | $204 | $280 | $326 | $473 |
| Goodwill and intangibles, net of accumulated amortization | $81,440 | $6,510 | $6,899 | $7,289 | $13,417 |
| Interest-bearing deposits: | |||||
| NOW accounts | $175,751 | $194,663 | $197,058 | $195,960 | $177,955 |
| Money market | 177,763 | 171,495 | 192,127 | 214,531 | 208,919 |
| Savings deposits | 72,714 | 73,059 | 78,649 | 122,292 | 129,021 |
| Time deposits | 733,545 | 724,355 | 700,816 | 664,780 | 643,702 |
| Non-interest bearing deposits | 171,376 | 178,159 | 200,340 | 171,821 | 174,027 |
| Total deposits | $1,331,149 | $1,341,731 | $1,368,990 | $1,369,384 | $1,333,624 |
| Predecessor Company | |||||
| Tax equivalent net interest margin | 2.85% | 2.74% | 2.94% | 2.76% | 2.86% |
|
Non-interest expense/tax equivalent net interest income and non-interest income |
224.96% | 144.96% | 100.49% | 128.64% | 92.56% |
| Average common shares outstanding | 14,861,623 | 14,849,681 | 14,839,113 | 14,834,706 | 14,828,133 |
|
Successor Company |
Predecessor Company | ||||
| End of quarter common shares outstanding | 714,887,922 | 14,887,922 | 14,887,922 | 14,887,922 | 14,888,083 |
| Total equity | $177,065 | $39,036 | $50,786 | $55,518 | $104,302 |
| Book value per common share | $0.15 | $0.22 | $1.05 | $1.42 | $4.75 |
| Tangible book value per common share | $0.08 | ($0.22) | $0.59 | $0.93 | $3.85 |
| Tier 1 capital to average assets - TIB Bank | 6.7% | 3.9% | 4.7% | 4.8% | 5.6% |
| Tier 1 capital to risk weighted assets - TIB Bank | 11.0% | 5.9% | 6.9% | 6.8% | 7.8% |
| Total capital to risk weighted assets - TIB Bank | 11.0% | 7.1% | 8.1% | 8.1% | 9.1% |
| Total assets | $1,740,891 | $1,659,065 | $1,690,657 | $1,705,407 | $1,717,622 |
| TIB FINANCIAL CORP. AND SUBSIDIARIES | ||||||
| QUARTERLY AVERAGE BALANCES AND YIELDS | ||||||
| (Dollars in thousands) | ||||||
| (Predecessor Company) | Quarter Ended | Quarter Ended | ||||
| September 30, 2010 | September 30, 2009 | |||||
| Average | Average | |||||
| Balances | Interest* | Yield* | Balances | Interest* | Yield* | |
| Loans | $1,100,135 | $14,858 | 5.36% | $1,242,296 | $17,281 | 5.52% |
| Investments | 310,053 | 2,150 | 2.75% | 350,981 | 3,035 | 3.43% |
| Money market mutual funds | -- | -- | -- | 4,925 | 2 | 0.16% |
| Interest bearing deposits | 86,492 | 55 | 0.25% | 27,279 | 18 | 0.26% |
| Federal Home Loan Bank stock | 9,946 | 16 | 0.64% | 10,447 | 44 | 1.67% |
| Fed funds sold and securities purchased under agreements to resell | -- | -- | 0.00% | 1,811 | -- | 0.00% |
| Total interest earning assets | 1,506,626 | 17,079 | 4.50% | 1,637,739 | 20,380 | 4.94% |
| Non-interest earning assets | 124,269 | 124,658 | ||||
| Total assets | $1,630,895 | $1,762,397 | ||||
| Interest bearing liabilities: | ||||||
| NOW | $184,285 | $150 | 0.32% | $186,597 | $311 | 0.66% |
| Money market | 175,588 | 461 | 1.04% | 208,176 | 646 | 1.23% |
| Savings | 73,093 | 128 | 0.69% | 127,136 | 591 | 1.84% |
| Time | 722,464 | 3,653 | 2.01% | 666,856 | 5,053 | 3.01% |
| Total interest-bearing deposits | 1,155,430 | 4,392 | 1.51% | 1,188,765 | 6,601 | 2.20% |
| Short-term borrowings and FHLB advances | 185,466 | 1,216 | 2.60% | 202,213 | 1,284 | 2.52% |
| Long-term borrowings | 59,087 | 648 | 4.35% | 63,000 | 679 | 4.28% |
| Total interest bearing liabilities | 1,399,983 | 6,256 | 1.77% | 1,453,978 | 8,564 | 2.34% |
| Non-interest bearing deposits | 173,295 | 178,795 | ||||
| Other liabilities | 17,829 | 18,009 | ||||
| Shareholders' equity | 39,788 | 111,615 | ||||
| Total liabilities and shareholders' equity | $1,630,895 | $1,762,397 | ||||
| Net interest income and spread | $10,823 | 2.73% | $11,816 | 2.60% | ||
| Net interest margin | 2.85% | 2.86% | ||||
| * Presented on a fully tax equivalent basis | ||||||
| TIB FINANCIAL CORP. AND SUBSIDIARIES | ||||||
| YEAR TO DATE BALANCES AND YIELDS | ||||||
| (Dollars in thousands) | ||||||
| (Predecessor Company) | Nine Months Ended | Nine Months Ended | ||||
| September 30, 2010 | September 30, 2009 | |||||
| Average | Average | |||||
| Balances | Interest* | Yield* | Balances | Interest* | Yield* | |
| Loans | $1,131,509 | $45,532 | 5.38% | $1,232,380 | $52,476 | 5.69% |
| Investments | 301,584 | 6,687 | 2.96% | 340,660 | 9,445 | 3.71% |
| Money market mutual funds | -- | -- | -- | 41,817 | 132 | 0.42% |
| Interest bearing deposits | 108,712 | 204 | 0.25% | 32,742 | 58 | 0.24% |
| Federal Home Loan Bank stock | 10,278 | 26 | 0.34% | 11,168 | 25 | 0.30% |
| Fed funds sold and securities purchased under agreements to resell | 4 | -- | 0.00% | 3,916 | 5 | 0.17% |
| Total interest earning assets | 1,552,087 | 52,449 | 4.52% | 1,662,683 | 62,141 | 5.00% |
| Non-interest earning assets | 120,229 | 121,743 | ||||
| Total assets | $1,672,316 | $1,784,426 | ||||
| Interest bearing liabilities: | ||||||
| NOW | $201,570 | $534 | 0.35% | $181,601 | $954 | 0.70% |
| Money market | 185,821 | 1,460 | 1.05% | 192,357 | 2,145 | 1.49% |
| Savings | 78,661 | 418 | 0.71% | 113,739 | 1,549 | 1.82% |
| Time | 708,892 | 11,391 | 2.15% | 707,882 | 17,003 | 3.21% |
| Total interest-bearing deposits | 1,174,944 | 13,803 | 1.57% | 1,195,579 | 21,651 | 2.42% |
| Short-term borrowings and FHLB advances | 190,912 | 3,659 | 2.56% | 216,688 | 4,019 | 2.48% |
| Long-term borrowings | 61,681 | 1,973 | 4.28% | 63,000 | 2,123 | 4.51% |
| Total interest bearing liabilities | 1,427,537 | 19,435 | 1.82% | 1,475,267 | 27,793 | 2.52% |
| Non-interest bearing deposits | 182,073 | 172,847 | ||||
| Other liabilities | 14,002 | 18,020 | ||||
| Shareholders' equity | 48,704 | 118,292 | ||||
| Total liabilities and shareholders' equity | $1,672,316 | $1,784,426 | ||||
| Net interest income and spread | $33,014 | 2.70% | $34,348 | 2.48% | ||
| Net interest margin | 2.84% | 2.76% | ||||
| * Presented on a fully tax equivalent basis | ||||||
| TIB FINANCIAL CORP. AND SUBSIDIARIES | ||
| SUPPLEMENTAL INFORMATION | ||
| (Dollars in thousands) | ||
| Predecessor Company OREO Activity | ||
| OREO as of June 30, 2010 | $38,699 | |
| Real estate acquired | 9,305 | |
| Changes in valuation reserve | (14,283) | |
| Property sold | (3,190) | |
| Other | -- | |
| OREO as of September 30, 2010 | $30,531 | |