NAPLES, Fla., May 12, 2011 (GLOBE NEWSWIRE) -- TIB Financial Corp. (Nasdaq:TIBB) today reported its financial results for the first quarter of 2011.
Quarterly highlights are outlined below.
- The Company reported net income for the first quarter of $1.1 million compared to net income of $560,000 for the fourth quarter of 2010 and a net loss of $5.7 million for the first quarter of 2010.
- TIB Bank, the Company's subsidiary bank, reported leverage, tier 1 risked-based and total risk-based capital ratios of 8.4%, 13.2% and 13.3%, respectively, exceeding all regulatory requirements.
- During the quarter, the Company originated $33.9 million of residential mortgages of which $18.3 million were sold in the secondary market, $18.5 million of commercial loans primarily made up of $2.8 million of commercial and industrial loans, $5.6 million of owner occupied commercial loans and $7.4 million on non-owner occupied commercial loans. The Company also originated $18.1 million in auto and other loans.
- Total deposits decreased by $27 million during the quarter. The decrease in deposits was comprised of a $110 million decrease in higher cost time deposits, partially offset by an $83 million increase in core deposits, primarily savings, non-interest bearing and money market deposits. Due to the change in mix, the weighted average cost of deposits decreased to 0.94% at March 31, 2011 from 1.15% as of December 31, 2010.
"We are working diligently to generate growth in core deposits and high-quality loans, provide first-class customer service to our customers, and improve TIB's profitability to levels expected of a high-performing financial institution," said Gene Taylor, Chairman and Chief Executive Officer of the Company and North American Financial Holdings, Inc. (NAFH), the Company's 94% shareholder.
Chris Marshall, Chief Financial Officer of the Company and NAFH, commented, "After the quarter's close, the Company's subsidiary, TIB Bank, was merged with and into NAFH National Bank, the bank subsidiary of NAFH. As a result, TIB Financial Corp. now owns approximately 53% of NAFH National Bank with NAFH owning the remaining 47%. In June, NAFH National Bank expects to merge with Capital Bank, a subsidiary of Capital Bank Corporation. These mergers will improve operational efficiency, profitability, and safety and soundness across the entire NAFH organization. TIB employees will continue to serve their Florida customers, and over time they will have new and enhanced products to offer."
Financial Discussion
The Company reported net income for the first quarter of $1.1 million compared to net income of $560,000 for the fourth quarter of 2010 and a net loss of $5.7 million for the first quarter of 2010. The increase in net income over the fourth quarter of 2010 was due primarily to increased net interest income and decreased operating expenses. The loss reported in the first quarter of last year was primarily due to $4.9 million in provision for loan losses recorded during the period. The increase in net interest income of $1.2 million over the first quarter of 2010 is 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 net interest margin increased 18 basis points to 3.34% during the quarter in comparison to 3.16% in the fourth quarter of 2010 due to continued favorable repricing of deposit liabilities coupled with redeployment of cash to loans and investment securities. There continues to be a high level of cash and highly liquid investment securities maintained during the quarter which is available to be redeployed to fund higher yielding assets as such opportunities arise; however, the margin and overall earning asset yield is unfavorably impacted by these lower yielding assets.
The provision for loan losses of $485,000 recorded during the first quarter of 2011 reflects the allowance for loan losses established for loans originated subsequent to September 30, 2010. The decrease in other expense from the fourth quarter of 2010 is primarily due to the favorable resolution of a vendor dispute which resulted in a refund of approximately $208,000 during the first quarter of amounts recognized as other expense during the fourth quarter of 2010. Net income was $0.07 per diluted common share for the current quarter, compared to $0.03 for the fourth quarter of 2010 and net loss of $38.36 per share for the first quarter of 2010.
Naples Capital Advisors and the Company's trust department continued to establish new investment management and trust relationships, increasing the market value of assets under management by $52 million or 32% from March 31, 2010 and by $23 million, or 12% during the quarter to $216 million as of March 31, 2011.
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, through its wholly owned-subsidiary TIB Bank, 27 full-service banking offices throughout the Florida Keys, Homestead, Naples, Bonita Springs, Fort Myers, Cape Coral and Venice as of March 31, 2011. Subsequent to the merger of TIB Bank and NAFH National Bank on April 29, 2011, TIB Financial Corp. now owns approximately 53% of NAFH National Bank, which is headquartered in Miami, Florida with 49 branches in Florida and South Carolina including the 27 branches of the former TIB Bank. TIB Financial Corp. is also the parent company of Naples Capital Advisors, Inc., a registered investment advisor with approximately $216 million of assets under advisement.
TIB Financial Corp., through its subsidiaries, NAFH National 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 NAFH National Bank and Naples Capital Advisors, Inc., visit and , 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 . For more information, contact Christopher G. Marshall, Chief Financial Officer, at (704) 554-5901, or Stephen J. Gilhooly, Treasurer, at (239) 659-5876.
The TIB Financial Corp. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7275
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 related to the Company's technology and information systems, risks associated with the controlling interest of NAFH in the Company and NAFH's interest in NAFH National Bank, risks associated with the limited liquidity of the Company's common stock, 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
CONTACT: Christopher G. Marshall, Chief Financial Officer (704) 554-5901 Stephen J. Gilhooly, Treasurer (239) 659-5876
