Attached files
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| 8-K - TIB FINANCIAL CORP. 8-K - TIB FINANCIAL CORP. | tibb8k3152011.htm |
FOR IMMEDIATE RELEASE
TIB FINANCIAL CORP. REPORTS FOURTH QUARTER RESULTS
NAPLES, FL. March 15, 2011 – TIB Financial Corp. (NASDAQ: TIBB) today reported its financial results fourth quarter of 2010.
“TIB has made significant progress in redirecting its focus on primary objectives of growth, expansion and improving profitability and efficiency. The satisfaction of regulatory capital requirements and compliance with its regulatory agreements has allowed a shift of the Company’s attention to operating a conventional commercial and retail bank and providing increasingly competitive financial services and exceptional customer service to the communities we serve,” said R. Eugene Taylor, Chairman and Chief Executive Officer of the Company and NAFH. “We continue to increase our emphasis and focus on loan origination and core deposit generation. As a profitable, stable and secure financial institution, unlike many of our local community bank competition, we are actively seeking to expand our franchise, increase market share and develop new customer relationships,” continued Taylor.
Significant quarterly accomplishments are outlined below.
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·
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The Company affected a 1 for 100 reverse stock split and launched a rights offering to shareholders of record as of July 12, 2010 which resulted in approximately $8.0 million of additional capital and compliance with the continued listing requirements of the Nasdaq Capital Market.
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The Company’s subsidiary bank’s leverage, tier 1 risked-based ratio and total risk-based ratios were 8.1%, 13.0% and 13.1%, respectively, and exceeded all regulatory requirements at December 31, 2010.
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The net interest margin increased 31 basis points to 3.16% during the quarter in comparison to 2.85% in the third quarter of 2010 due to continued favorable repricing of deposit liabilities coupled with the impact of purchase accounting adjustments resulting in the adjustment of above market deposits and borrowings to market yields as of September 30, 2010. While the high level of cash and highly liquid investment securities maintained during the quarter is available to be redeployed to fund higher yielding assets as such opportunities arise, the margin and overall earning asset yield is unfavorably impacted by these lower yielding assets.
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The Company originated $37 million of residential mortgages, $3.3 million of commercial loans and $7.4 million in consumer and indirect loans to prime borrowers during the quarter.
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The Company was granted additional credit availability from the FHLB and the ability to extend borrowing maturity duration beyond one-year.
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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 $47 million or 32% from December 31, 2009 and by $9 million, or 5% during the quarter to $193 million as of December 31, 2010.
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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 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. Adjustments to preliminary fair value estimates previously reported as of September 30, 2010 are primarily comprised of the following: a $17.3 million increase in loans; a $19.2 million increase in deferred income tax assets; a $3.5 million decrease in certificates of deposit; a $1.7 million decrease in subordinated debt; a $1.0 million decrease in OREO; and a corresponding decrease of $39.7 million in goodwill.
The Company reported net income for the fourth quarter of $560,000 compared to a net loss of $45.1 million for the fourth quarter of 2009. The loss reported in the fourth quarter of last year was primarily due to the following: $24.0 million of income tax expense related to the recognition of a full valuation allowance against deferred tax assets; $16.4 million in provisions for loan losses and $5.9 million in goodwill impairment charges. Increases in net interest income of $1.3 million and $1.6 million, respectively, over the fourth quarter of 2009 and the third quarter of 2010 are primarily due to the impact of the purchase accounting adjustments which revalued above market deposits and borrowings to yield market interest rates as of September 30, 2010.
The provision for loan losses of $402,000 recorded during the fourth quarter of 2010 reflects the allowance for loan losses established for loans originated subsequent to September 30, 2010. No net charge-offs or losses on the disposition of other real estate owned were recorded as credit losses experienced during the quarter were incorporated in the net discounts recorded on loans and other real estate acquired as of September 30, 2010. The increase in salaries and employee benefits expense over the third quarter of 2010 reflects approximately $80,000 of severance costs. The decrease in net occupancy expense reflects the impact of purchase accounting adjustments related to recording premises and equipment at fair value and the corresponding impact on depreciation expense. Net income of $560,000, or $0.05 per common share for the current quarter, compared to a net loss of $67.56 per share for the third quarter of 2010 and $307.36 for the fourth quarter of 2009. 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, the 31% provision for income taxes was lower than statutory rates due to the impact of earnings which are not taxable for federal purposes.
About TIB Financial Corp.
Headquartered in Naples, Florida, TIB Financial Corp. is a financial services company with approximately $1.8 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 $193 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.
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 Christopher G. 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.
SUPPLEMENTAL FINANCIAL DATA IS ATTACHED
TIB FINANCIAL CORP. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)
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For the Quarter Ended
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December 31,
2010
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September 30,
2010
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June 30,
2010
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March 31,
2010
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December 31,
2009
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Successor Company
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Predecessor Company
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Interest and dividend income
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$ | 15,681 | $ | 17,042 | $ | 16,988 | $ | 18,287 | $ | 19,120 | ||||||||||
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Interest expense
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3,249 | 6,256 | 6,386 | 6,793 | 7,943 | |||||||||||||||
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NET INTEREST INCOME
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12,432 | 10,786 | 10,602 | 11,494 | 11,177 | |||||||||||||||
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Provision for loan losses
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402 | 17,072 | 7,700 | 4,925 | 16,428 | |||||||||||||||
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NON-INTEREST INCOME:
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Service charges on deposit accounts
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864 | 831 | 839 | 915 | 1,009 | |||||||||||||||
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Fees on mortgage loans sold
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449 | 455 | 481 | 283 | 370 | |||||||||||||||
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Investment securities gains, net
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- | - | 993 | 1,642 | 2,477 | |||||||||||||||
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Investment advisory and trust fees
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354 | 328 | 313 | 307 | 297 | |||||||||||||||
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Gain on bank owned life insurance policy
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- | - | 134 | - | - | |||||||||||||||
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Other income
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1,043 | 804 | 734 | 267 | 647 | |||||||||||||||
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Total non-interest income
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2,710 | 2,418 | 3,494 | 3,414 | 4,800 | |||||||||||||||
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NON-INTEREST EXPENSE:
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Salaries & employee benefits
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6,632 | 6,610 | 6,413 | 6,836 | 6,858 | |||||||||||||||
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Net occupancy expense
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2,051 | 2,391 | 2,273 | 2,284 | 2,487 | |||||||||||||||
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Goodwill impairment charge
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- | - | - | - | 5,887 | |||||||||||||||
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Foreclosed asset related expense
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536 | 15,438 | 5,149 | 1,100 | 733 | |||||||||||||||
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Other expense
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4,704 | 5,348 | 6,660 | 4,814 | 4,658 | |||||||||||||||
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Total non-interest expense
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13,923 | 29,787 | 20,495 | 15,034 | 20,623 | |||||||||||||||
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Income (loss) before income taxes
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817 | (33,655 | ) | (14,099 | ) | (5,051 | ) | (21,074 | ) | |||||||||||
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Income tax expense
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257 | - | - | - | 24,032 | |||||||||||||||
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NET INCOME (LOSS)
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$ | 560 | $ | (33,655 | ) | $ | (14,099 | ) | $ | (5,051 | ) | $ | (45,106 | ) | ||||||
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Dividends earned by preferred shareholders and discount accretion
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- | 680 | 669 | 660 | 654 | |||||||||||||||
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Gain on retirement of Series A preferred allocated to common shareholders
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- | (24,276 | ) | - | - | - | ||||||||||||||
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Net income (loss) allocated to common shareholders
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$ | 560 | $ | (10,059 | ) | $ | (14,768 | ) | $ | (5,711 | ) | $ | (45,760 | ) | ||||||
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BASIC EARNINGS (LOSS) PER COMMON SHARE:
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$ | 0.05 | $ | (67.56 | ) | $ | (99.19 | ) | $ | (38.36 | ) | $ | (307.36 | ) | ||||||
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DILUTED EARNINGS (LOSS) PER COMMON SHARE:
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$ | 0.03 | $ | (67.56 | ) | $ | (99.19 | ) | $ | (38.36 | ) | $ | (307.36 | ) | ||||||
TIB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL DATA
(Dollars and shares in thousands, except per share data)
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As of or For the Quarter Ended
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December 31,
2010
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September 30,
2010
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June 30,
2010
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March 31,
2010
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December 31,
2009
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Successor Company
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Predecessor Company
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Real estate mortgage loans:
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Commercial
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$ | 600,372 | $ | 605,643 | $ | 649,679 | $ | 662,875 | $ | 680,409 | ||||||||||
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Residential
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225,850 | 228,271 | 235,423 | 234,608 | 236,945 | |||||||||||||||
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Farmland
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12,083 | 11,889 | 13,571 | 13,798 | 13,866 | |||||||||||||||
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Construction and vacant land
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38,956 | 43,584 | 60,698 | 72,215 | 97,424 | |||||||||||||||
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Commercial and agricultural loans
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60,642 | 61,479 | 68,696 | 70,660 | 69,246 | |||||||||||||||
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Indirect auto loans
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28,038 | 24,748 | 25,918 | 25,634 | 50,137 | |||||||||||||||
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Home equity loans
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29,658 | 33,367 | 36,856 | 37,226 | 37,947 | |||||||||||||||
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Other consumer loans
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8,730 | 8,862 | 9,759 | 9,592 | 10,190 | |||||||||||||||
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Total loans
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$ | 1,004,329 | $ | 1,017,843 | $ | 1,100,600 | $ | 1,126,608 | $ | 1,196,164 | ||||||||||
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Gross loans
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$ | 1,004,630 | $ | 1,017,843 | $ | 1,101,672 | $ | 1,127,615 | $ | 1,197,516 | ||||||||||
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Net loan charge-offs (Predecessor Company)
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N/A | $ | 12,376 | $ | 7,819 | $ | 6,179 | $ | 19,461 | |||||||||||
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Net loan charge-offs (Successor Company)
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$ | - | N/A | N/A | N/A | N/A | ||||||||||||||
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Successor Company
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Predecessor Company
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Allowance for loan losses
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$ | 402 | $ | - | $ | 27,710 | $ | 27,829 | $ | 29,083 | ||||||||||
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Allowance for loan losses/ total loans
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N/M | N/A | 2.52 | % | 2.47 | % | 2.43 | % | ||||||||||||
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Allowance for loan losses/ loans originated in Successor period
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1.76 | % | N/A | N/A | N/A | N/A | ||||||||||||||
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Allowance for loan losses excluding specific reserves
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402 | N/A | $ | 20,352 | $ | 19,514 | $ | 20,043 | ||||||||||||
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Allowance for loan losses excluding specific reserves/non-impaired loans
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N/A | N/A | 2.06 | % | 1.92 | % | 1.91 | % | ||||||||||||
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Non-performing loans
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N/A | N/A | $ | 76,632 | $ | 55,697 | $ | 72,833 | ||||||||||||
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Allowance for loan losses/non-performing loans (1)
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N/A | N/A | 36 | % | 50 | % | 40 | % | ||||||||||||
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Non-performing loans/gross loans (1)
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N/A | N/A | 6.96 | % | 4.94 | % | 6.08 | % | ||||||||||||
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Annualized net charge-offs/average loans
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N/A | N/A | 2.81 | % | 2.13 | % | 6.40 | % | ||||||||||||
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Total interest-earning assets
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$ | 1,563,640 | $ | 1,561,983 | $ | 1,532,946 | $ | 1,571,804 | $ | 1,604,710 | ||||||||||
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Other real estate owned
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$ | 25,673 | $ | 29,531 | $ | 38,699 | $ | 41,078 | $ | 21,352 | ||||||||||
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Other repossessed assets
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$ | 104 | $ | 163 | $ | 204 | $ | 280 | $ | 326 | ||||||||||
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Goodwill and intangibles, net of accumulated amortization
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$ | 41,405 | $ | 41,769 | $ | 6,510 | $ | 6,899 | $ | 7,289 | ||||||||||
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Interest-bearing deposits:
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NOW accounts
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$ | 175,349 | $ | 175,751 | $ | 194,663 | $ | 197,058 | $ | 195,960 | ||||||||||
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Money market
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193,904 | 177,763 | 171,495 | 192,127 | 214,531 | |||||||||||||||
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Savings deposits
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80,674 | 72,714 | 73,059 | 78,649 | 122,292 | |||||||||||||||
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Time deposits
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719,006 | 730,059 | 724,355 | 700,816 | 664,780 | |||||||||||||||
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Non-interest bearing deposits
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198,092 | 171,376 | 178,159 | 200,340 | 171,821 | |||||||||||||||
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Total deposits
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$ | 1,367,025 | $ | 1,327,663 | $ | 1,341,731 | $ | 1,368,990 | $ | 1,369,384 | ||||||||||
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(1) As the allowance for loan losses at December 31, 2010 relates to loans originated subsequent to the investment by NAFH and no such loans are considered non-performing, this ratio was not meaningful.
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Successor Company
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Predecessor Company
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Tax equivalent net interest margin
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3.16 | % | 2.85 | % | 2.74 | % | 2.94 | % | 2.76 | % | ||||||||||
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Non-interest expense/tax equivalent net interest income and non-interest income
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91.76 | % | 224.96 | % | 144.96 | % | 100.49 | % | 128.64 | % | ||||||||||
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Average diluted common shares outstanding (basic for quarters ended September 30, 2010, June 30, 2010, March 31, 2010 and December 31, 2009)
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18,320 | 149 | 148 | 148 | 148 | |||||||||||||||
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Successor Company
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Predecessor Company
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End of quarter common shares outstanding
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11,817 | 7,149 | 149 | 149 | 149 | |||||||||||||||
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Total equity
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$ | 176,750 | $ | 178,498 | $ | 39,036 | $ | 50,786 | $ | 55,518 | ||||||||||
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Book value per common share
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$ | 14.96 | $ | 15.18 | $ | 22.04 | $ | 105.41 | $ | 141.63 | ||||||||||
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Tangible book value per common share
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$ | 11.45 | $ | 9.33 | $ | (21.68 | ) | $ | 59.07 | $ | 92.67 | |||||||||
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Tier 1 capital to average assets - TIB Bank
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8.1 | % | 7.8 | % | 3.9 | % | 4.7 | % | 4.8 | % | ||||||||||
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Tier 1 capital to risk weighted assets - TIB Bank
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13.0 | % | 12.9 | % | 5.9 | % | 6.9 | % | 6.8 | % | ||||||||||
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Total capital to risk weighted assets - TIB Bank
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13.1 | % | 12.9 | % | 7.1 | % | 8.1 | % | 8.1 | % | ||||||||||
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Total assets
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$ | 1,756,866 | $ | 1,737,183 | $ | 1,659,065 | $ | 1,690,657 | $ | 1,705,407 | ||||||||||
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Successor Company OREO Activity
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OREO as of September 30, 2010
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$ | 29,531 | ||
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Real estate acquired
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1,992 | |||
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Property sold
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(5,932 | ) | ||
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Other
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82 | |||
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OREO as of December 31, 2010
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$ | 25,673 | ||
TIB FINANCIAL CORP. AND SUBSIDIARIES
QUARTERLY AVERAGE BALANCES AND YIELDS
(Dollars in thousands)
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Successor Company
Quarter Ended
December 31, 2010
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Predecessor Company
Quarter Ended
December 31, 2009
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Average
Balances
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Interest*
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Yield*
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Average
Balances
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Interest*
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Yield*
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Loans
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$ | 1,010,946 | $ | 13,722 | 5.39 | % | $ | 1,206,286 | $ | 16,483 | 5.42 | % | ||||||||||||
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Investments
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380,126 | 1,876 | 1.96 | % | 290,285 | 2,626 | 3.59 | % | ||||||||||||||||
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Interest bearing deposits
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162,159 | 103 | 0.25 | % | 104,970 | 65 | 0.25 | % | ||||||||||||||||
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Federal Home Loan Bank stock
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9,572 | 11 | 0.46 | % | 10,447 | - | 0.00 | % | ||||||||||||||||
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Fed funds sold and securities purchased under agreements to resell
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- | - | 0.00 | % | 48 | - | 0.00 | % | ||||||||||||||||
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Total interest earning assets
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1,562,803 | 15,712 | 3.99 | % | 1,612,036 | 19,174 | 4.72 | % | ||||||||||||||||
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Non-interest earning assets
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192,102 | 128,094 | ||||||||||||||||||||||
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Total assets
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$ | 1,754,905 | $ | 1,740,130 | ||||||||||||||||||||
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Interest bearing liabilities:
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NOW
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$ | 172,519 | $ | 137 | 0.32 | % | $ | 184,765 | $ | 281 | 0.60 | % | ||||||||||||
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Money market
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184,597 | 411 | 0.88 | % | 208,671 | 672 | 1.28 | % | ||||||||||||||||
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Savings
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75,796 | 128 | 0.67 | % | 126,502 | 593 | 1.86 | % | ||||||||||||||||
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Time
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732,516 | 1,866 | 1.01 | % | 663,146 | 4,449 | 2.66 | % | ||||||||||||||||
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Total interest-bearing deposits
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1,165,428 | 2,542 | 0.87 | % | 1,183,084 | 5,995 | 2.01 | % | ||||||||||||||||
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Short-term borrowings and FHLB advances
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175,503 | 248 | 0.56 | % | 200,408 | 1,284 | 2.54 | % | ||||||||||||||||
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Long-term borrowings
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31,516 | 459 | 5.78 | % | 63,000 | 663 | 4.18 | % | ||||||||||||||||
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Total interest bearing liabilities
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1,372,447 | 3,249 | 0.94 | % | 1,446,492 | 7,942 | 2.18 | % | ||||||||||||||||
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Non-interest bearing deposits
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189,566 | 173,783 | ||||||||||||||||||||||
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Other liabilities
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14,092 | 16,182 | ||||||||||||||||||||||
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Shareholders’ equity
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178,800 | 103,673 | ||||||||||||||||||||||
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Total liabilities and shareholders’ equity
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$ | 1,754,905 | $ | 1,740,130 | ||||||||||||||||||||
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Net interest income and spread
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$ | 12,463 | 3.05 | % | $ | 11,232 | 2.54 | % | ||||||||||||||||
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Net interest margin
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3.16 | % | 2.76 | % | ||||||||||||||||||||
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_______
* Presented on a fully tax equivalent basis
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