TIBB Tib Financial Corp. (MM)

NAPLES, Fla., Nov. 9, 2011 /PRNewswire/ -- TIB Financial Corp. (NASDAQ: TIBB)  a majority-owned subsidiary of North American Financial Holdings, Inc. ("NAFH"), today reported  its unaudited financial results for the third quarter of 2011. Operating and financial highlights include the following:

• The Company reported net income of $1.5 million and $3.5 million, or $0.12 and $0.27 per diluted share for the three and nine months ended September 30, 2011.

• GreenBank, which was the wholly-owned banking subsidiary of Green Bankshares, Inc. ("Green Bankshares") was merged with and into Capital Bank, National Association ("Capital Bank, NA"), on September 7, 2011; and

• As a result of the merger, the Company held a 21% ownership interest in Capital Bank, NA at September 30, 2011 which has 146 branches and $6.6 billion in assets in Florida, North Carolina, South Carolina, Tennessee and Virginia.

"We are delighted to welcome our new Tennessee teammates to Capital Bank, and we are excited to serve our Tennessee customers. With strong capital, we are in position to help customers grow and achieve their financial objectives across our Southeastern footprint," stated Gene Taylor, Chairman and Chief Executive Officer of NAFH and TIB Financial Corp.

"We saw significant progress in virtually every area of the bank during the third quarter. Our strong loan originations, deposit growth and efficiency improvements are strong indicators of continued growth in profitability," commented Chris Marshall, Chief Financial Officer of NAFH and TIB Financial Corp.

Bank Merger

Effective April 29, 2011, TIB Bank (the "Bank"), a wholly-owned subsidiary of the Company, merged (the "Merger") with and into NAFH National Bank ("NAFH Bank"), a national banking association, with NAFH Bank as the surviving entity. On June 30, 2011, Capital Bank, a wholly-owned subsidiary of Capital Bank Corp., an affiliated majority-owned subsidiary of NAFH, also merged with and into NAFH Bank, with NAFH Bank as the surviving entity. In connection with the merger, NAFH Bank changed its name to Capital Bank, NA. Additionally on September 7, 2011, GreenBank merged with and into Capital Bank, NA. NAFH is the owner of approximately 94% of the Company's common stock, approximately 83% of Capital Bank Corp.'s common stock, and approximately 90% of Green Bankshares.

Through the subsidiary bank mergers the common stock of the subsidiary banks was converted into shares of Capital Bank, NA common stock based on each entity's relative tangible book value. As a result of the mergers of TIB Bank, Capital Bank and Green Bank into Capital Bank, N.A., the Company now owns approximately 21% of Capital Bank, NA, with NAFH directly owning 19%, Capital Bank Corp. directly owning 26% and Green Bankshares owning the remaining 34%.  

Capital Bank, NA was formed in connection with the July 16, 2010 purchase and assumption of assets and deposits of three banks – Metro Bank of Dade County (Miami, Florida), Turnberry Bank (Aventura, Florida) and First National Bank of the South (Spartanburg, South Carolina) – from the Federal Deposit Insurance Corporation (the "FDIC") and is a party to loss sharing agreements with the FDIC covering the large majority of the loans it acquired from the FDIC. As of September 30, 2011, following the mergers, Capital Bank, NA had total assets of $6.6 billion, total deposits of $5.3 billion and shareholders' equity of $931.1 million and operated 146 branches in Florida, North Carolina, South Carolina, Tennessee and Virginia.  

Due to its ownership level, the Company's investment in Capital Bank, NA is recorded as an equity-method investment in that entity. As of September 30, 2011, the Company's investment in Capital Bank, NA totaled $199.0 million, which reflected the Company's pro rata ownership of Capital Bank, NA's total shareholders' equity at that date. In connection with the Merger, the assets and liabilities of the Bank were de-consolidated from the Company's balance sheet resulting in a significant decrease in the total assets and total liabilities of the Company in the second quarter of 2011.

Financial Discussion

The Company reported net income for the third quarter of $1.5 million compared to net income of $1.0 million for the second quarter of 2011 and a net loss of $33.7 million for the third quarter of 2010 (Predecessor Company).  Due to the Merger discussed above and the resulting deconsolidation of TIB Bank on April 29, 2011, the operating results for the third quarter of 2011 includes three months of equity in income from its investment in Capital Bank, NA which amounted to $1.9 million, net of tax and therefore are generally not comparable to the operations in prior quarters. The loss reported in the third quarter of last year was primarily due to $17.1 million in provision for loan losses recorded during the period, and $15.4 million in foreclosed asset related expenses.  Due to the Company accounting for its investment in Capital Bank, NA using the equity method, a comparison of net interest margin to prior periods is not meaningful and is excluded.

The following table presents summarized financial information for Capital Bank, NA:

About TIB Financial Corp.

Headquartered in Naples, Florida, TIB Financial Corp. is a financial services company with a 21% equity method investment in Capital Bank NA, a national banking association with approximately $6.6 billion in total assets and 146 full-service banking offices throughout southern Florida and the Florida Keys, North Carolina, South Carolina, Tennessee and Virginia. TIB Financial Corp. is also the parent company of Naples Capital Advisors, Inc., a registered investment advisor with approximately $133 million of assets under advisement.

To learn more about Capital Bank NA and Naples Capital Advisors, Inc., visit www.capitalbank-us.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.

Information in this press release contains forward-looking statements. Such forward looking statements can be identified by the use of forward looking terminology such as "may," "will," "expect," "anticipate," "estimate," "believe," or "continue," or the negative thereof or other variations thereof or comparable terminology.  These statements involve risks and uncertainties that could cause actual results to differ materially, including without limitation, market and economic conditions, the management of our growth, the risks associated with Capital Bank NA's loan portfolio and real estate holdings, local economic conditions affecting retail and commercial real estate, the ability to integrate our new management and directors without encountering potential difficulties, the Company's geographic concentration in the southeastern region of the United States, ability to integrate the operations of the Bank with those of Capital Bank, NA, the potential for the interests of the other shareholders of Capital Bank, NA to differ from those of the Company, restrictions imposed by Capital Bank, NA's loss sharing agreements with the FDIC, the assumptions and judgments required by loss share accounting and the acquisition method of accounting, competition within the industry, dependence on key personnel, government legislation and regulation, the risks associated with identification, completion and integration of any future acquisitions, risks related to Capital Bank NA's technology and information systems, risks associated with the controlling interest of NAFH in the Company, and risks associated with the limited liquidity of the Company's common stock. Additional factors that could cause actual results to differ materially are discussed in the Company's filings with the Securities and Exchange Commission, including without limitation its Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and its Current Reports on Form 8-K. The Company does not undertake a duty to update any forward-looking statements in this press release.

SUPPLEMENTAL FINANCIAL DATA IS ATTACHED

SOURCE TIB Financial Corp.