FOR IMMEDIATE RELEASE
TIB FINANCIAL CORP. REPORTS FOURTH QUARTER AND ANNUAL RESULTS
NAPLES, FL. March 8, 2010 – TIB Financial Corp. (NASDAQ: TIBB), parent company of TIB Bank and Naples Capital Advisors, leading financial services providers serving the greater Naples, Bonita Springs, Fort Myers and Cape Coral areas, South Miami-Dade County, the Florida Keys and Sarasota County, today reported its financial results for the fourth quarter and full year 2009. As presented in the executive summary below, the net loss for the quarter, excluding investment securities gains and losses, goodwill impairment charge and deferred tax asset valuation allowance was $10.9 million compared to $10.6 million on a comparable basis for the fourth quarter of 2008.
During the fourth quarter, we recorded a valuation allowance of $31.6 million against our deferred tax assets due primarily to the significant cumulative losses we have incurred over the last three years coupled with the expectation that our future realization of deferred taxes will be limited as a result of our planned capital offering. The goodwill impairment charge was due to the decrease in the implied value of the goodwill of TIB Bank and reflected the recent further decline in the market value of the Company’s common stock as of December 31, 2009. As a result, all of the goodwill associated with the acquisitions of The Bank of Venice and the operations of the former Riverside Bank of the Gulf Coast was written off.
(Dollars in thousands) | | For the quarter ended December 31, | | | For the year ended December 31, | |
| | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
| Net interest income | | $ | 11,177 | | | $ | 10,719 | | | $ | 45,391 | | | $ | 44,660 | |
| Provision for loan losses | | | (16,428 | ) | | | (15,101 | ) | | | (42,256 | ) | | | (28,239 | ) |
Core non-interest income (1) | | | 2,323 | | | | 1,466 | | | | 8,629 | | | | 6,133 | |
| Life insurance gain | | | - | | | | - | | | | 1,186 | | | | - | |
| Investment securities gains (losses) | | | 2,477 | | | | (4,221 | ) | | | 4,295 | | | | (5,349 | ) |
Core non-interest expense (2) | | | (14,736 | ) | | | (14,112 | ) | | | (59,455 | ) | | | (50,988 | ) |
| Goodwill impairment charge | | | (5,887 | ) | | | - | | | | (5,887 | ) | | | - | |
| Loss before income taxes | | | (21,074 | ) | | | (21,249 | ) | | | (48,097 | ) | | | (33,783 | ) |
| Income tax benefit before valuation allowance | | | 6,360 | | | | 7,994 | | | | 16,941 | | | | 12,853 | |
| Valuation allowance against deferred income tax assets | | | (30,392 | ) | | | - | | | | (30,392 | ) | | | - | |
| Net loss | | $ | (45,106 | ) | | $ | (13,255 | ) | | $ | (61,548 | ) | | $ | (20,930 | ) |
| | | | | | | | | | | | | | | | | |
Net loss excluding life insurance conversion gain, investment securities gains (losses), goodwill impairment charge and deferred tax asset valuation allowance (3) | | $ | (10,863 | ) | | $ | (10,622 | ) | | $ | (29,625 | ) | | $ | (17,594 | ) |
| (1) | Core non-interest income excludes a gain on the conversion of a life insurance policy covering a former employee and investment securities gains and losses. |
(2) Core non-interest expense excludes goodwill impairment charges
| (3) | In addition to the amounts indicated in the caption above, we made appropriate adjustments for the income tax effects of the excluded amounts in this analysis. |
As of December 31, 2009, our subsidiary bank, TIB Bank, remained adequately capitalized for regulatory purposes with shareholders equity of approximately $87 million. Both the goodwill impairment charge and the valuation allowance for deferred income tax assets are non-cash accounting charges and had no impact on our operations, liquidity or regulatory capital position. As we discussed in our letter to shareholders on December 23, 2009, having reported our year end results, we are now proceeding with our plans to raise additional capital during March and into the second quarter.
“While we are disappointed with the overall results of the fourth quarter and year and we believe the underlying operating performance for the fourth quarter is obscured by the nature and complexity of significant accounting adjustments, we believe we are seeing encouraging signs of improvement in our local real estate markets. We are beginning to observe the return of sophisticated, fundamentals-driven investors who see the long term value of southern Florida real estate and enterprises. On a monthly basis in 2009 compared to 2008, we have observed increases in unit volume sales of residential real estate in our markets ranging from 27% to 80% per month in the Naples area and 40% to well over 100% in the Ft. Myers-Cape Coral market. While values have declined markedly during this severe recession, the significant increase in unit sales signals improved buyer interest and increasing liquidity in our residential real estate markets which should begin to stabilize values. While we expect a local economic recovery to be muted and to lag the national recovery, we believe positive signs are beginning to emerge,” commented Thomas J. Longe, Chief Executive Officer and President.
The net loss before dividends and discount accretion on preferred stock for the three months ended December 31, 2009 of $45.1 million was primarily due to the net provision for income taxes of $24.0 million, the provision for loan losses of $16.4 million and a goodwill impairment charge of $5.9 million and compared to net losses of $8.1 million for the third quarter of 2009 and $13.3 million for the fourth quarter of 2008. The fourth quarter 2009 provision for loan losses was due to net charge offs of $19.5 million which include approximately $15.3 million of charge downs on nonaccrual and impaired loans. While the third quarter of 2009 and fourth quarter of 2008 provisions for loan losses were $14.8 million and $15.1 million, respectively, there were no comparable goodwill impairment charges or deferred tax asset valuation allowances required during these periods. The net loss allocated to common shareholders was $45.8 million, or $3.08 per share, for the current quarter, compared to a net loss of $0.59 per share for the third quarter of 2009 and $0.91 for the comparable 2008 quarter.
For the year, the Company’s 2009 net loss totaled $61.5 million, or $4.33 per common share, and reflects a $42.3 million provision for loan losses, a provision for income taxes of $13.5 million and a goodwill impairment charge of $5.9 million. Excluding the impact of securities gains, a gain on a life insurance policy, the impairment of goodwill and the deferred income tax asset valuation allowance, the net loss for 2009 would have been approximately $29.6 million.
“Our losses during this period have stemmed primarily from significant asset valuation adjustments; apparent in provisions for loan losses of $16.4 million for the quarter and $42.3 million for 2009. These charges are a result of the recent significant deflation of real estate values in our market areas and the significant economic contraction over the last three years that has also adversely impacted employment and businesses. Otherwise prudently underwritten credits to formerly creditworthy but now struggling businesses and individual borrowers have proven time and again throughout 2008 and 2009 to result in significant realized losses upon resolution,” stated Longe.
“Additionally, contributing to the loss incurred during the fourth quarter was a $5.9 million goodwill impairment charge resulting from the annual impairment test required by generally accepted accounting principles. The impaired goodwill related primarily to our 2007 acquisition of The Bank of Venice and to a lesser extent the February 2009 acquisition of the operations of the former Riverside Bank of the Gulf Coast in February 2009. As both the valuation allowance and the goodwill impairment charges are non-cash accounting charges, they had no impact on our operations, regulatory capital or liquidity,” said Longe.
The provision for income taxes was recorded as a result of our determination that a 100% valuation allowance against deferred tax assets of $31.6 million was required as of December 31, 2009 of which $30.4 million was recorded as a charge to income and $1.2 million, the portion relating to the change in unrealized losses of securities during 2009, was recorded as a charge to equity through accumulated other comprehensive income as required by generally accepted accounting principles (GAAP). This accounting charge more than offset the tax benefit we recorded during the quarter and full year and resulted in a net provision for income taxes of $24.0 million for the quarter. Our decision to record a valuation allowance of $31.6 million against our deferred tax assets was due primarily to the significant cumulative losses we have incurred over the last three years coupled with the expectation that the capital we intend to raise in early 2010 would likely trigger an Internal Revenue Code provision which would limit the amount of our net operating loss carryforwards and other tax attributes that could be utilized in the future, and thus the amount of deferred tax assets which could be realized in the future. The actual amount of any such limitation will depend upon the facts and circumstances at the time of consummation of the capital offering and may be greater or less than our estimate.
The goodwill impairment charge was due to the decrease in the implied value of the goodwill of TIB Bank as determined by the annual impairment test required by GAAP and reflected the recent further decline in the market value of the Company’s common stock. As a result, all of the goodwill associated with TIB Bank’s acquisitions of The Bank of Venice and the operations of the former Riverside Bank of the Gulf Coast was written off. As of December 31, 2009, only the $622,000 of goodwill associated with the Company’s acquisition of Naples Capital Advisors, Inc., its registered investment advisory subsidiary, remains on the balance sheet.
TIB Financial reported total assets of $1.71 billion as of December 31, 2009, an increase of 6% from December 31, 2008. Total loans declined to $1.20 billion compared to $1.22 billion at December 31, 2008 as a $49.9 million, or 34%, decline in construction and land loans and a $31.9 million, or 39%, decline in indirect auto loans offset growth in the commercial loan and residential loan portfolios. Total deposits of $1.37 billion as of December 31, 2009 increased $233.7 million, or 21%, from December 31, 2008 due principally to the assumption of approximately $317 million of deposits and the operations of nine branches of the former Riverside Bank of the Gulf Coast from the FDIC in February 2009.
“We are continuing to monitor our loan portfolio closely, aggressively moving to resolve our nonperforming assets and working closely with our customers to restructure their obligations when prudent. We are optimistic about the increased and accelerating efficiency and effectiveness with which our dedicated special asset work out team has been able to identify, quantify, and address the potential problems in our loan portfolio. This group’s efforts have enabled the rest of the organization to focus on what they do best, serve our customers, strengthen our banking relationships and expand and improve our current service offerings,” continued Longe.
Significant other developments are outlined below.
| · | The net interest margin decreased 10 basis points to 2.76% during the quarter in comparison to 2.86% in the third quarter due primarily to the adverse impact of the level and classification of new non-accrual loans and nonperforming assets during the quarter, which reduced the margin by approximately 25 basis points. Additionally, we maintained a higher level of short-term investments in light of the continuing economic uncertainty, which also reduced the margin. |
| · | Our special asset workout group was able to work with borrowers to achieve the pay off or pay down of approximately $10.3 million in nonaccrual loans, foreclose or negotiate deeds in lieu of foreclosure for approximately $3.3 million of nonaccrual loans and sell approximately $1.5 million of other real estate owned during the quarter. |
| · | We continue to focus on relationship-based lending and generated approximately $20 million of new commercial loans and originated $26 million of residential mortgages as well as approximately $6 million in consumer and indirect loans to prime borrowers during the quarter. |
| · | 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 $50 million during 2009 to $146 million as of year end. |
| Our indirect auto loan portfolio declined $5.7 million, or 10%, during the quarter to $50.1 million, or 4% of total loans. Non-performing loans in this business segment decreased to $941,000 in comparison to $1.2 million at September 30, 2009 and charge-offs during the fourth quarter declined to $1.3 million compared to $1.8 million during the third quarter. Additionally, total delinquency of indirect auto loans declined from the third quarter. |
Credit Quality
Total nonaccrual loans increased by $6.6 million during the quarter to $72.8 million. Excluding indirect and consumer loans, approximately $38.5 million of loans were placed on nonaccrual during the fourth quarter. Partially offsetting this increase were $10.3 million of net loan principal paid down, $18.1 million of loans charged-down and $3.3 million of loans foreclosed and transferred to other real estate owned.
In response to the increase in non-performing loans, declines in collateral values of other nonperforming and impaired loans, further contraction of economic activity in our local markets and increased net charge-offs, the fourth quarter results include a provision for loan losses of $16.4 million. Total net charge-offs were $19.5 million and include $15.3 million of charge-downs on loans classified as impaired, as of December 31, 2009, based upon updated net realizable values and estimates of anticipated recovery. Due primarily to cumulative write downs of $17.6 million on nonaccrual loans, the reserve for loan losses decreased 9% to $29.1 million and amounted to 2.43% of loans at December 31, 2009.
Loans classified as nonaccrual during the quarter had the following impact on the provision and allowance for loan losses:
| • | a $5.5 million loan, collateralized by bay-front land in the Florida Keys, was reviewed and we determined that, based upon the most recent appraisal available, no specific reserve was deemed necessary at this time; |
| • | one residential housing developer loan relationship, totaling $6.8 million, for which we provided additional reserves of $331,000 during the quarter resulting in allocated specific reserves of $386,000; |
| • | a $9.8 million loan, collateralized by a hotel, was reviewed and we provided additional reserves of $2.6 million and was subsequently charged down by $2.8 million to $7.0 million during the fourth quarter, resulting in an allocated specific reserve of $245,000 at quarter end; |
| • | a $3.4 million loan relationship, collateralized by commercial real estate and trade receivables, was reviewed and required a provision and specific reserve allocation of $1.4 million; |
| • | numerous smaller loans, primarily collateralized by commercial and residential real estate totaling $13.0 million, for which we provided additional reserves of $1.3 million during the quarter resulting in allocated specific reserves of $1.5 million. |
Additionally, $5.0 million of the provision for loan losses during the quarter was allocated to increase reserves on other nonaccrual and impaired loans in the current quarter. Such allocations were largely due to loans classified as impaired and our procedures of periodically updating appraisals on nonaccrual and impaired loans. In the aggregate, these allocations were offset by $15.3 million of write downs associated with loans classified as impaired as of December 31, 2009, resulting in a decrease of the ratio of the allowance for loan losses to nonperforming loans to 40%, as of December 31, 2009, from 48% as of September 30, 2009.
Detailed Financial Discussion
The higher net loss, before the preferred dividend, for the fourth quarter of 2009 compared to the net loss for the fourth quarter of 2008 was due to the higher provision for loan losses and non-interest expenses, including a $5.9 million goodwill impairment charge, the income tax expense related to the recognition of a valuation allowance against deferred tax assets under generally accepted accounting principles and was partially offset by higher interest income and non-interest income. TIB Financial’s results of operations during 2009 include the operations of nine former branches of Riverside Bank of the Gulf Coast subsequent to their assumption on February 13, 2009.
Our provision for loan losses of $16.4 million reflects net charge-offs of $19.5 million. As of December 31, 2009, non-performing loans were $72.8 million or 6.08% of loans, an increase from the $66.2 million and 5.39% of loans as of September 30, 2009.
The allowance for loan losses decreased 9% to $29.1 million, comprising 2.43% of total loans. Net charge-offs during the quarter increased to 6.40% of average loans on an annualized basis compared to 2.58% for the prior quarter and reflect the $15.3 million aggregate charge-down of nonaccrual and impaired loans.
The tax equivalent net interest margin of 2.76% for the three months ended December 31, 2009 decreased in comparison with the 2.86% net interest margin reported during the third quarter of 2009. The decrease is primarily due to the impact of the higher level of non-performing loans and assets during the fourth quarter, the maintenance of higher levels of liquid investment securities and cash equivalents and a change in asset mix resulting in lower volumes of higher yielding loans. The average interest cost of interest bearing deposits declined to 2.01% in the fourth quarter from 2.20% in the third quarter.
Excluding net gains (losses) on investment securities, non-interest income was $2.3 million in the fourth quarter of 2009 compared to $1.5 million for the fourth quarter last year. Higher deposit service charges, fees from the origination and sale of residential mortgages in the secondary market and investment advisory fees also contributed to the increase in non-interest income. The former Riverside operations contributed approximately $421,000 of non-interest income during the period. Net gains from the sale of investment securities were $2.5 million in the fourth quarter compared to a net loss from other than temporary impairment charges on securities of $4.2 million in the prior year fourth quarter.
During the fourth quarter of 2009, non-interest expense increased $6.5 million, or 46%, to $20.6 million compared to $14.1 million for the fourth quarter of 2008. Of this increase, $5.9 million is a result of the write-off of goodwill as a result of the application of the annual goodwill impairment test required by generally accepted accounting principles. Additionally, $1.5 million of non-interest expense is attributed to the assumed former Riverside operations and includes $254,000 of amortization of intangible assets. Excluding the impact of the goodwill impairment charge and the Riverside operations, we were able to reduce overall operating costs by approximately $900,000 in the fourth quarter. Excluding the effect of the former Riverside operations, FDIC insurance costs increased $418,000 due to higher deposit insurance premium rates.
During the fourth quarter of 2009, the Board of Directors of TIB Financial Corp. voted to discontinue the practice of declaring quarterly 1% stock dividends in light of our current common stock market value. The Board of Directors will continue to evaluate our dividend policy in light of current and expected trends in our financial performance and financial condition.
About TIB Financial Corp.
Headquartered in Naples, Florida, TIB Financial Corp. is a growth-oriented financial services company with approximately $1.7 billion in total assets and 28 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 $146 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 Thomas J. Longe, Chief Executive Officer and President at (239) 659-5857, or Stephen J. Gilhooly, Executive Vice President and Chief Financial Officer, 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)
| | | For the Quarter Ended | |
| | | December 31, 2009 | | | September 30, 2009 | | | June 30, 2009 | | | March 31, 2009 | | | December 31, 2008 | |
| Interest and dividend income | | $ | 19,120 | | | $ | 20,327 | | | $ | 20,858 | | | $ | 20,822 | | | $ | 21,223 | |
| Interest expense | | | 7,943 | | | | 8,564 | | | | 9,164 | | | | 10,065 | | | | 10,504 | |
| NET INTEREST INCOME | | | 11,177 | | | | 11,763 | | | | 11,694 | | | | 10,757 | | | | 10,719 | |
| | | | | | | | | | | | | | | | | | | | | |
| Provision for loan losses | | | 16,428 | | | | 14,756 | | | | 5,763 | | | | 5,309 | | | | 15,101 | |
| | | | | | | | | | | | | | | | | | | | | |
| NON-INTEREST INCOME: | | | | | | | | | | | | | | | | | | | | |
| Service charges on deposit accounts | | | 1,009 | | | | 988 | | | | 1,202 | | | | 966 | | | | 750 | |
| Fees on mortgage loans sold | | | 370 | | | | 340 | | | | 318 | | | | 115 | | | | 154 | |
| Investment securities gain (loss), net | | | 2,477 | | | | 1,127 | | | | 95 | | | | 596 | | | | (4,221 | ) |
| Investment advisory and trust fees | | | 297 | | | | 279 | | | | 228 | | | | 193 | | | | 141 | |
| Gain on bank owned life insurance policy | | | - | | | | 1,186 | | | | - | | | | - | | | | - | |
| Other income | | | 647 | | | | 679 | | | | 489 | | | | 509 | | | | 421 | |
| Total non-interest income | | | 4,800 | | | | 4,599 | | | | 2,332 | | | | 2,379 | | | | (2,755 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| NON-INTEREST EXPENSE: | | | | | | | | | | | | | | | | | | | | |
| Salaries & employee benefits | | | 6,858 | | | | 7,288 | | | | 7,068 | | | | 7,380 | | | | 6,078 | |
| Net occupancy expense | | | 2,487 | | | | 2,365 | | | | 2,438 | | | | 2,152 | | | | 2,168 | |
| Goodwill impairment charge | | | 5,887 | | | | - | | | | - | | | | - | | | | - | |
| Other expense | | | 5,391 | | | | 5,541 | | | | 6,652 | | | | 3,835 | | | | 5,866 | |
| Total non-interest expense | | | 20,623 | | | | 15,194 | | | | 16,158 | | | | 13,367 | | | | 14,112 | |
| | | | | | | | | | | | | | | | | | | | | |
| Loss before income taxes | | | (21,074 | ) | | | (13,588 | ) | | | (7,895 | ) | | | (5,540 | ) | | | (21,249 | ) |
| Income tax expense (benefit) | | | 24,032 | | | | (5,491 | ) | | | (3,008 | ) | | | (2,082 | ) | | | (7,994 | ) |
| NET LOSS | | $ | (45,106 | ) | | $ | (8,097 | ) | | $ | (4,887 | ) | | $ | (3,458 | ) | | $ | (13,255 | ) |
| Dividends earned by preferred shareholders and discount accretion | | | 654 | | | | 650 | | | | 650 | | | | 708 | | | | 165 | |
| Net loss allocated to common shareholders | | $ | (45,760 | ) | | $ | (8,747 | ) | | $ | (5,537 | ) | | $ | (4,166 | ) | | $ | (13,420 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| NET LOSS PER COMMON SHARE: | | $ | (3.08 | ) | | $ | (0.59 | ) | | $ | (0.37 | ) | | $ | (0.28 | ) | | $ | (0.91 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
TIB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL DATA
(Dollars in thousands, except per share data)
| | | For the Quarter Ended | |
| | | December 31, 2009 | | | September 30, 2009 | | | June 30, 2009 | | | March 31, 2009 | | | December 31, 2008 | |
| Real estate mortgage loans: | | | | | | | | | | | | | | | |
| Commercial | | $ | 680,409 | | | $ | 683,828 | | | $ | 683,763 | | | $ | 666,780 | | | $ | 658,516 | |
| Residential | | | 236,945 | | | | 240,485 | | | | 222,260 | | | | 213,037 | | | | 205,062 | |
| Farmland | | | 13,866 | | | | 13,346 | | | | 13,497 | | | | 13,438 | | | | 13,441 | |
| Construction and vacant land | | | 97,424 | | | | 114,613 | | | | 139,425 | | | | 142,175 | | | | 147,309 | |
| Commercial and agricultural loans | | | 69,246 | | | | 71,789 | | | | 67,214 | | | | 65,723 | | | | 71,352 | |
| Indirect auto loans | | | 50,137 | | | | 55,805 | | | | 63,243 | | | | 71,868 | | | | 82,028 | |
| Home equity loans | | | 37,947 | | | | 38,056 | | | | 38,100 | | | | 34,325 | | | | 34,062 | |
| Other consumer loans | | | 10,190 | | | | 10,305 | | | | 10,854 | | | | 11,245 | | | | 11,549 | |
| Total loans | | $ | 1,196,164 | | | $ | 1,228,227 | | | $ | 1,238,356 | | | $ | 1,218,591 | | | $ | 1,223,319 | |
| | | | | | | | | | | | | | | | | | | | | |
| Gross loans | | $ | 1,197,516 | | | $ | 1,229,631 | | | $ | 1,239,711 | | | $ | 1,220,073 | | | $ | 1,224,975 | |
| | | | | | | | | | | | | | | | | | | | | |
| Net loan charge-offs | | $ | 19,461 | | | $ | 8,086 | | | $ | 5,805 | | | $ | 3,604 | | | $ | 9,353 | |
| Allowance for loan losses | | $ | 29,083 | | | $ | 32,115 | | | $ | 25,446 | | | $ | 25,488 | | | $ | 23,783 | |
| Allowance for loan losses/total loans | | | 2.43 | % | | | 2.61 | % | | | 2.05 | % | | | 2.09 | % | | | 1.94 | % |
| Allowance for loan losses excluding specific reserves | | $ | 20,043 | | | $ | 17,014 | | | $ | 16,962 | | | $ | 17,541 | | | $ | 17,667 | |
| Allowance for loan losses excluding specific reserves/non-impaired loans | | | 1.91 | % | | | 1.53 | % | | | 1.49 | % | | | 1.55 | % | | | 1.52 | % |
| Non-performing loans | | $ | 72,833 | | | $ | 66,235 | | | $ | 61,809 | | | $ | 45,647 | | | $ | 39,776 | |
| Allowance for loan losses/non-performing loans | | | 40 | % | | | 48 | % | | | 41 | % | | | 56 | % | | | 60 | % |
| Non performing loans/gross loans | | | 6.08 | % | | | 5.39 | % | | | 4.99 | % | | | 3.74 | % | | | 3.25 | % |
| Annualized net charge-offs/average loans | | | 6.40 | % | | | 2.58 | % | | | 1.89 | % | | | 1.19 | % | | | 3.02 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Total interest-earning assets | | $ | 1,604,710 | | | $ | 1,593,287 | | | $ | 1,681,065 | | | $ | 1,731,271 | | | $ | 1,512,909 | |
| Other real estate owned | | $ | 21,352 | | | $ | 19,582 | | | $ | 7,142 | | | $ | 5,032 | | | $ | 4,323 | |
| Other repossessed assets | | $ | 326 | | | $ | 473 | | | $ | 431 | | | $ | 407 | | | $ | 601 | |
| Goodwill and intangibles, net of accumulated amortization | | $ | 7,289 | | | $ | 13,417 | | | $ | 13,806 | | | $ | 14,225 | | | $ | 8,170 | |
| | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing deposits: | | | | | | | | | | | | | | | | | | | | |
| NOW accounts | | $ | 195,960 | | | $ | 177,955 | | | $ | 180,952 | | | $ | 174,524 | | | $ | 142,291 | |
| Money market | | | 214,531 | | | | 208,919 | | | | 217,534 | | | | 204,974 | | | | 102,486 | |
| Savings deposits | | | 122,292 | | | | 129,021 | | | | 127,502 | | | | 114,806 | | | | 73,832 | |
| Time deposits | | | 664,780 | | | | 643,702 | | | | 686,594 | | | | 759,061 | | | | 688,675 | |
| Non-interest bearing deposits | | | 171,821 | | | | 174,027 | | | | 182,236 | | | | 183,095 | | | | 128,384 | |
| Total deposits | | $ | 1,369,384 | | | $ | 1,333,624 | | | $ | 1,394,818 | | | $ | 1,436,460 | | | $ | 1,135,668 | |
| | | | | | | | | | | | | | | | | | | | | |
| Tax equivalent net interest margin | | | 2.76 | % | | | 2.86 | % | | | 2.78 | % | | | 2.65 | % | | | 2.85 | % |
| Non-interest expense/tax equivalent net interest income and non-interest income | | | 128.64 | % | | | 92.56 | % | | | 114.87 | % | | | 101.47 | % | | | 176.36 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Average common shares outstanding | | | 14,834,706 | | | | 14,828,133 | | | | 14,815,798 | | | | 14,801,339 | | | | 14,793,827 | |
| End of quarter shares outstanding | | | 14,887,922 | | | | 14,888,083 | | | | 14,895,143 | | | | 14,895,143 | | | | 14, 895,143 | |
| Total equity | | $ | 55,518 | | | $ | 104,302 | | | $ | 111,968 | | | $ | 117,852 | | | $ | 121,114 | |
| Book value per common share | | $ | 1.42 | | | $ | 4.75 | | | $ | 5.28 | | | $ | 5.69 | | | $ | 5.92 | |
| Tangible book value per common share | | $ | 0.93 | | | $ | 3.85 | | | $ | 4.35 | | | $ | 4.73 | | | $ | 5.37 | |
| Tier 1 capital to average assets | | | 4.1 | % | | | 5.7 | % | | | 6.4 | % | | | 6.9 | % | | | 8.9 | % |
| Tier 1 capital to risk weighted assets | | | 5.7 | % | | | 7.8 | % | | | 8.9 | % | | | 9.1 | % | | | 11.3 | % |
| Total capital to risk weighted assets | | | 8.1 | % | | | 9.1 | % | | | 10.1 | % | | | 10.4 | % | | | 12.6 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Total assets | | $ | 1,705,407 | | | $ | 1,717,622 | | | $ | 1,797,081 | | | $ | 1,836,526 | | | $ | 1,610,114 | |
TIB FINANCIAL CORP. AND SUBSIDIARIES
QUARTERLY AVERAGE BALANCES AND YIELDS
(Dollars in thousands)
| | | | | | | | | | | | | | | | | | | |
| | | Quarter Ended December 31, 2009 | | | Quarter Ended December 31, 2008 | |
| | | Average Balances | | | Interest* | | | Yield* | | | Average Balances | | | Interest* | | | Yield* | |
| Loans | | $ | 1,206,286 | | | $ | 16,483 | | | | 5.42 | % | | $ | 1,230,518 | | | $ | 18,730 | | | | 6.06 | % |
| Investments | | | 290,285 | | | | 2,626 | | | | 3.59 | % | | | 211,381 | | | | 2,422 | | | | 4.56 | % |
| Interest bearing deposits | | | 104,970 | | | | 65 | | | | 0.25 | % | | | 35,558 | | | | 53 | | | | 0.60 | % |
| Federal Home Loan Bank stock | | | 10,447 | | | | - | | | | 0.00 | % | | | 11,925 | | | | 20 | | | | 0.68 | % |
| Fed funds sold and securities purchased under agreements to resell | | | 48 | | | | - | | | | 0.29 | % | | | 13,020 | | | | 36 | | | | 1.10 | % |
| Total interest earning assets | | | 1,612,036 | | | | 19,174 | | | | 4.72 | % | | | 1,502,402 | | | | 21,261 | | | | 5.63 | % |
| Non-interest earning assets | | | 128,094 | | | | | | | | | | | | 93,478 | | | | | | | | | |
| Total assets | | $ | 1,740,130 | | | | | | | | | | | $ | 1,595,880 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
| NOW | | $ | 184,765 | | | $ | 281 | | | | 0.60 | % | | $ | 138,488 | | | $ | 331 | | | | 0.95 | % |
| Money market | | | 208,671 | | | | 672 | | | | 1.28 | % | | | 112,047 | | | | 521 | | | | 1.85 | % |
| Savings | | | 126,502 | | | | 593 | | | | 1.86 | % | | | 60,831 | | | | 233 | | | | 1.52 | % |
| Time | | | 663,146 | | | | 4,449 | | | | 2.66 | % | | | 686,324 | | | | 6,719 | | | | 3.89 | % |
| Total interest-bearing deposits | | | 1,183,084 | | | | 5,995 | | | | 2.01 | % | | | 997,690 | | | | 7,804 | | | | 3.11 | % |
| Short-term borrowings and FHLB advances | | | 200,408 | | | | 1,284 | | | | 2.54 | % | | | 280,059 | | | | 1,788 | | | | 2.54 | % |
| Long-term borrowings | | | 63,000 | | | | 663 | | | | 4.18 | % | | | 63,000 | | | | 912 | | | | 5.76 | % |
| Total interest bearing liabilities | | | 1,446,492 | | | | 7,942 | | | | 2.18 | % | | | 1,340,749 | | | | 10,504 | | | | 3.12 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Non-interest bearing deposits | | | 173,783 | | | | | | | | | | | | 130,049 | | | | | | | | | |
| Other liabilities | | | 16,182 | | | | | | | | | | | | 16,967 | | | | | | | | | |
| Shareholders’ equity | | | 103,673 | | | | | | | | | | | | 108,115 | | | | | | | | | |
| Total liabilities and shareholders’ equity | | $ | 1,740,130 | | | | | | | | | | | $ | 1,595,880 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net interest income and spread | | | | | | $ | 11,232 | | | | 2.54 | % | | | | | | $ | 10,757 | | | | 2.51 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net interest margin | | | | | | | | | | | 2.76 | % | | | | | | | | | | | 2.85 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
_______ * Presented on a fully tax equivalent basis | |
TIB FINANCIAL CORP. AND SUBSIDIARIES
YEAR TO DATE BALANCES AND YIELDS
(Dollars in thousands)
| | | | | | | | | | | | | | | | | | | |
| | | Year Ended December 31, 2009 | | | Year Ended December 31, 2008 | |
| | | Average Balances | | | Interest* | | | Yield* | | | Average Balances | | | Interest* | | | Yield* | |
| Loans | | $ | 1,225,804 | | | $ | 68,960 | | | | 5.63 | % | | $ | 1,186,839 | | | $ | 77,877 | | | | 6.56 | % |
| Investments | | | 327,963 | | | | 12,071 | | | | 3.68 | % | | | 183,649 | | | | 8,629 | | | | 4.70 | % |
| Money Market Mutual Funds | | | 31,277 | | | | 132 | | | | 0.42 | % | | | - | | | | - | | | | 0.00 | % |
| Interest bearing deposits | | | 50,947 | | | | 124 | | | | 0.24 | % | | | 12,131 | | | | 104 | | | | 0.85 | % |
| Federal Home Loan Bank stock | | | 11,059 | | | | 24 | | | | 0.22 | % | | | 10,012 | | | | 350 | | | | 3.50 | % |
| Fed funds sold and securities purchased under agreements to resell | | | 2,940 | | | | 5 | | | | 0.17 | % | | | 55,525 | | | | 1,374 | | | | 2.47 | % |
| Total interest earning assets | | | 1,649,990 | | | | 81,316 | | | | 4.93 | % | | | 1,448,156 | | | | 88,334 | | | | 6.10 | % |
| Non-interest earning assets | | | 122,814 | | | | | | | | | | | | 93,387 | | | | | | | | | |
| Total assets | | $ | 1,772,804 | | | | | | | | | | | $ | 1,541,543 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
| NOW | | $ | 182,398 | | | $ | 1,235 | | | | 0.68 | % | | $ | 172,520 | | | $ | 2,932 | | | | 1.70 | % |
| Money market | | | 196,469 | | | | 2,817 | | | | 1.43 | % | | | 151,273 | | | | 3,649 | | | | 2.41 | % |
| Savings | | | 116,956 | | | | 2,142 | | | | 1.83 | % | | | 52,896 | | | | 669 | | | | 1.26 | % |
| Time | | | 696,606 | | | | 21,452 | | | | 3.08 | % | | | 591,723 | | | | 25,346 | | | | 4.28 | % |
| Total interest-bearing deposits | | | 1,192,429 | | | | 27,646 | | | | 2.32 | % | | | 968,412 | | | | 32,596 | | | | 3.37 | % |
| Short-term borrowings and FHLB advances | | | 212,585 | | | | 5,303 | | | | 2.49 | % | | | 242,210 | | | | 7,450 | | | | 3.08 | % |
| Long-term borrowings | | | 63,000 | | | | 2,787 | | | | 4.42 | % | | | 63,000 | | | | 3,458 | | | | 5.49 | % |
| Total interest bearing liabilities | | | 1,468,014 | | | | 35,736 | | | | 2.43 | % | | | 1,273,622 | | | | 43,504 | | | | 3.42 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Non-interest bearing deposits | | | 173,083 | | | | | | | | | | | | 146,158 | | | | | | | | | |
| Other liabilities | | | 17,557 | | | | | | | | | | | | 19,196 | | | | | | | | | |
| Shareholders’ equity | | | 114,150 | | | | | | | | | | | | 102,567 | | | | | | | | | |
| Total liabilities and shareholders’ equity | | $ | 1,772,804 | | | | | | | | | | | $ | 1,541,543 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net interest income and spread | | | | | | $ | 45,580 | | | | 2.50 | % | | | | | | $ | 44,830 | | | | 2.68 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net interest margin | | | | | | | | | | | 2.76 | % | | | | | | | | | | | 3.10 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
_______ * Presented on a fully tax equivalent basis | |
TIB FINANCIAL CORP. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
(Dollars in thousands)
Impaired loans are as follows:
| | | December 31, 2009 | | | September 30, 2009 | |
| Loans with no allocated allowance for loan losses | | $ | 60,629 | | | $ | 28,858 | |
| Loans with allocated allowance for loan losses | | | 87,823 | | | | 87,763 | |
| Total | | $ | 148,452 | | | $ | 116,621 | |
| | | | | | | | | |
| Amount of the allowance for loan losses allocated | | $ | 9,040 | | | $ | 15,101 | |
Nonaccrual loans are as follows:
| | | As of December 31, 2009 | | | As of September 30, 2009 | |
| Loan/Collateral Type | | Number of Loans | | | Outstanding Balance | | | Number of Loans | | | Outstanding Balance | |
| Residential | | | 44 | | | $ | 10,738 | | | | 35 | | | $ | 8,187 | |
| Commercial 1-4 family investment | | | 19 | | | | 8,733 | | | | 15 | | | | 14,652 | |
| Commercial and agricultural | | | 7 | | | | 2,454 | | | | 5 | | | | 669 | |
| Commercial real estate | | | 29 | | | | 24,392 | | | | 23 | | | | 21,025 | |
| Land development | | | 13 | | | | 25,295 | | | | 8 | | | | 20,353 | |
| Government guaranteed loans | | | 2 | | | | 143 | | | | 2 | | | | 143 | |
| Indirect auto, auto and consumer loans | | | 97 | | | | 1,078 | | | | 111 | | | | 1,206 | |
| Total | | | | | | $ | 72,833 | | | | | | | $ | 66,235 | |
| Nonaccrual Loan Activity (Other Than Indirect Auto and Consumer) | |
| | | | |
| Nonaccrual loans at September 30, 2009 | | $ | 65,029 | |
| Net principal paid down on nonaccrual loans | | | (10,304 | ) |
| Charge-downs | | | (18,128 | ) |
| Loans foreclosed | | | (3,292 | ) |
| Loans placed on nonaccrual | | | 38,450 | |
| Nonaccrual loans at December 31, 2009 | | $ | 71,755 | |
| | | | | |
An expanded analysis of the more significant loans classified as nonaccrual during the fourth quarter of 2009 and remaining classified as of December 31, 2009, is as follows:
| Significant Nonaccrual Loans (Other Than Indirect Auto and Consumer) | |
(Dollars in thousands) | |
| Collateral Description | | Original Loan Amount | | | Original Loan to Value (Based on Original Appraisal) | | | Current Loan Amount | | | Specific Allocation of Reserve in Allowance for Loan Losses at December 31, 2009 | | | Amount Charged Against Allowance for Loan Losses During the Quarter Ended December 31, 2009 | | | Impact on the Provision for Loan Losses During the Quarter Ended December 31, 2009 (1) | |
| Arising in Fourth Quarter 2009 | | | | | | | | | | | | | | | | | | |
| Commercial 1-4 family residential SW Florida | | $ | 2,175 | | | | 66 | % | | $ | 1,520 | | | $ | 647 | | | $ | 163 | | | $ | 97 | |
| Vacant land SW Florida | | | 5,826 | | | | 60 | % | | | 5,450 | | | | 191 | | | | 61 | | | | 121 | |
| Commercial 1-4 family residential SW Florida | | | 1,933 | | | | 73-83 | % | | | 1,391 | | | | 195 | | | | 259 | | | | 210 | |
| Commercial real estate, business assets and accounts receivable | | | 3,392 | | | | 80 | % | | | 3,358 | | | | 1,438 | | | | - | | | | 1,438 | |
| Luxury boutique hotel in SW Florida | | | 9,775 | | | | 88 | % | | | 7,000 | | | | 245 | | | | 2,775 | | | | 2,608 | |
| Bayfront land in FL Keys | | | 5,622 | | | | 54 | % | | | 5,459 | | | | - | | | | - | | | | - | |
| Numerous smaller balance primarily 1-4 family residential and commercial real estate loans | | | | | | | | | | | 8,169 | | | | 851 | | | | 1,154 | | | | 1,185 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Total | | | $ | 32,347 | | | $ | 3,567 | | | $ | 4,412 | | | $ | 5,659 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Nonaccrual Prior to Fourth Quarter 2009 Remaining on Nonaccrual at December 31, 2009 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Commercial 1-4 family residential | | $ | 3,778 | | | | 72-78 | % | | $ | 3,401 | | | $ | 273 | | | $ | - | | | $ | (229 | ) |
| Mixed use – developer | | | 3,602 | | | | 80 | % | | | 2,300 | | | | - | | | | 1,363 | | | | 18 | |
| Commercial real estate | | | 1,720 | | | | 78 | % | | | 1,676 | | | | - | | | | - | | | | - | |
| Commercial real estate | | | 1,408 | | | | 80 | % | | | 940 | | | | 75 | | | | 360 | | | | 73 | |
| Residential 1-4 family home | | | 1,008 | | | | 80 | % | | | 665 | | | | 53 | | | | 336 | | | | - | |
| Vacant land – residential development | | | 10,000 | | | | 61 | % | | | 5,385 | | | | 188 | | | | 4,615 | | | | (196 | ) |
| Two restaurants SW Florida | | | 5,099 | | | | 57-70 | % | | | 4,949 | | | | 717 | | | | - | | | | 352 | |
| Two office buildings – developer | | | 4,807 | | | | 75 | % | | | 2,200 | | | | 176 | | | | 2,485 | | | | 2,286 | |
| Vacant land – residential development | | | 4,750 | | | | 42 | % | | | 4,750 | | | | - | | | | - | | | | - | |
| Office Building | | | 1,118 | | | | 66 | % | | | 1,118 | | | | 20 | | | | - | | | | 20 | |
| Numerous smaller balance primarily 1-4 family residential and commercial real estate loans | | | | | | | | | | | 12,024 | | | | 775 | | | | 1,438 | | | | 531 | |
| | | | | | | | | | | $ | 39,408 | | | $ | 2,277 | | | $ | 10,597 | | | $ | 2,855 | |
| | | | | | | Total | | | $ | 71,755 | | | $ | 5,844 | | | $ | 15,009 | | | $ | 8,514 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Impact on the provision for loan losses during the quarter represents the increase (decrease) in specific reserves. |
| | TIB FINANCIAL CORP. AND SUBSIDIARIES |
SUPPLEMENTAL INFORMATION
(Dollars in thousands)
| OREO Activity | |
| | | | |
| OREO as of September 30, 2009 | | $ | 19,582 | |
| Real estate acquired | | | 3,292 | |
| Write-down of value | | | (392 | ) |
| Transfer to facilities used in operations | | | - | |
| Property sold | | | (1,473 | ) |
| Other | | | 343 | |
| OREO as of December 31, 2009 | | $ | 21,352 | |
| | | | | |
| OREO Analysis as of December 31, 2009 | |
| Property Description | | Original Loan Amount | | | Original LTV | | | Carrying Value at December 31, 2009 | |
| Seven developed commercial lots | | $ | 13,500 | | | | 50 | % | | $ | 9,422 | |
| Six 1-4 family residential condominiums (new construction) | | | 7,066 | | | | 72 | % | | | 4,939 | |
| Luxury 1-4 family residence in Southwest Florida | | | 2,493 | | | | 67 | % | | | 2,494 | |
| Commercial real estate (3 loans) | | | | | | | | | | | 2,243 | |
| Other land (4 lots – 3 loans) | | | | | | | | | | | 1,611 | |
| Other 1-4 family residential (3 loans) | | | | | | | | | | | 643 | |
| | | | | | | Total | | | $ | 21,352 | |
