TIB Financial Corp. Reports Second Quarter Results

Jul 29, 2009 (Close-Up Media via COMTEX) -- TIBB | Quote | Chart | News | PowerRating -- TIB Financial Corp., parent company of TIB Bank, The Bank of Venice and Naples Capital Advisors, 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, on July 23 reported a net loss before dividends on preferred stock for the three months ended June 30, of $4.9 million compared to a net loss of $4.0 million for the second quarter of 2008.

In a release, the company noted the net loss allocated to common shareholders was $5.5 million, or $0.38 per share, compared to a net loss of $0.28 for the comparable 2008 quarter. The net loss for the second quarter was due to the provision for loan losses of $5.8 million and an increase in non-interest expenses of $4.3 million, partially offset by an increase of $680,000 of customer service revenue.

TIB Financial reported total assets of $1.80 billion as of June 30, an increase of 12 percent from December 31, 2008. Total loans increased 1 percent to $1.24 billion from $1.22 billion at December 31, 2008 as growth in our commercial loan and residential loan portfolios offset an $18.8 million, or 23 percent, decline in indirect auto loans. Total deposits of $1.39 billion as of June 30, increased $259.2 million, or 23 percent, from December 31, 2008 due 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.

"We continue to implement our strategic plan and are reinvesting the proceeds provided from the assumption of the deposits of the former Riverside Bank of the Gulf Coast into quality loans generated through our relationship based approach. We are pleased with the level of retention of our new customers and deposits, and are looking forward to the new opportunities presented by our increased presence in Fort Myers and Venice and our new presence in the contiguous Cape Coral community. Operationally, we successfully completed the related information systems conversion at the end of June and are now able to manage our new customer relationships with an integrated and consistent approach. We have closed one smaller branch office and are planning to relocate another office," said Thomas J. Longe, Chief Executive Officer and President.

TIB also noted that the net interest margin increased 13 basis points to 2.78 percent during the quarter in comparison to 2.65 percent in the first quarter due primarily to the investment strategy related to the acquired Riverside deposits and the continued reduction of the interest cost of our deposits and other funding.

The tax equivalent net interest margin of 2.78 percent for the three months ended June 30, increased in comparison with the 2.65 percent net interest margin reported during the first quarter of 2009. The increase is primarily due to the impact of investment of the proceeds provided by the acquisition of the deposits and operations of nine former Riverside Bank of the Gulf Coast branches, the continued reduction in the interest cost of our deposits and other funding and partly offset by the higher level of non-performing loans and assets during the second quarter. Upon closing of the transaction, execution of our investment plan included purchasing intermediate maturity investment securities and maintaining a significant balance of lower yielding money market and cash equivalent securities to repay near term maturities of wholesale funding.

During the second quarter of 2009, non-interest expense increased $4.3 million, or 36 percent, to $16.2 million compared to $11.9 million for the second quarter of 2008. Total non-interest expense associated with the former Riverside operations amounted to approximately $2.0 million (including approximately $371,000 of pre-conversion IT processing and system conversion costs). The second quarter 2009 non-interest expense includes an increase of $710,000 in salaries and employee benefits over the second quarter of 2008. This increase includes approximately $631,000 in salaries and employee benefits expenses associated with new employees hired in connection with the Riverside transaction.

Additionally, the Board of Directors of TIB Financial Corp. declared a 1 percent stock dividend which was distributed on July 10, to all TIB Financial Corp. common shareholders of record as of June 30. The Board of Directors will continue to evaluate the dividend policy in light of current and expected trends in our financial performance and financial condition.

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