EX-99.1 2 tib8k072407ex99_1.htm EXHIBIT 99.1 PRESS RELEASE DATED 04-24-2007 tib8k072407ex99_1.htm
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FOR IMMEDIATE RELEASE



TIB FINANCIAL CORP. REPORTS SECOND QUARTER RESULTS REFLECTING THE ACQUISITION OF THE BANK OF VENICE

NAPLES, Fla. July 24 – TIB Financial Corp. (NASDAQ: TIBB), parent of TIB Bank and The Bank of Venice, leading community banks serving the greater Naples, Bonita Springs-Fort Myers area, Highlands County, South Miami-Dade County, the Florida Keys and Sarasota County, today reported net income from continuing operations for the quarter ended June 30, 2007 of $1.71 million, a decrease from the $1.87 million reported for the first quarter of 2007 and $2.33 million for the second quarter of 2006. On a per diluted share basis, earnings from continuing operations were $0.14 for the second quarter of 2007, down from $0.16 during the first quarter of 2007 and $0.20 per share for the comparable period a year ago.

TIB Financial’s results of operations during the second quarter of 2007 include the operations of The Bank of Venice subsequent to its acquisition on April 30, 2007. In connection with the acquisition, TIB Financial issued total consideration of approximately $14.7 million consisting of 944,400 shares of common stock, 82,750 stock options and approximately $568,000 of cash in exchange for all of the outstanding common shares and stock options of The Bank of Venice. Dilution to earnings per share for the second quarter of 2007 resulting from the acquisition was approximately $0.01 per share.

TIB Financial also reported total assets of $1.36 billion as of June 30, 2007, representing 3% asset growth from December 31, 2006 and 10% asset growth from $1.23 billion as of June 30, 2006. Total loans increased 8% to $1.09 billion compared to $1.00 billion a year ago, and increased 2% compared to $1.06 billion at December 31, 2006. Total deposits of $1.04 billion as of June 30, 2007 increased $14.6 million and $24.8 million from December 31, 2006 and June 30, 2006, respectively. As of June 30, 2007, the effect of the acquisition of The Bank of Venice increased total assets by $75.7 million, total loans by $54.0 million and total deposits by $54.9 million.

“We are pleased with the closing of our merger with The Bank of Venice. Our combined focus remains clear and consistent: to continue to invest our resources in building lasting relationships with small and middle-market business customers and expand into attractive markets which drives our long-term franchise value,” said Edward V. Lett, Chief Executive Officer and President.

“We continue to closely monitor economic activity in our regional and local markets which have slowed considerably due to the softness of the residential real estate market. Our operating environment remains challenging and our loan growth is muted due to loan payoffs and a lower level of loan origination and funding during the first half of the year. During this period of slower economic activity we are maintaining our disciplined underwriting standards and prudent risk assessment practices.

“We have focused on managing our cost of funds and generating a more profitable mix of deposits through business development and disciplined deposit pricing. We are focused on controlling expenses and improving productivity while positioning the Company to take advantage of attractive growth opportunities in our markets” said Lett.


 
Detailed Financial Discussion
The decrease in net income from continuing operations for the second quarter of 2007 compared to the second quarter of 2006 was primarily due to a lower net interest margin and increased operating expenses.

The net interest margin continues to be impacted by the challenging interest rate environment and highly competitive deposit pricing. The tax equivalent net interest margin of 3.73% for the three months ended June 30, 2007 contracted slightly in comparison with the 3.74% net interest margin reported during the first quarter of 2007. Excluding the effect of the acquisition of The Bank of Venice, the net interest margin would have been 3.74%.

Net charge offs during the second quarter of 2007 of $394,000 included a recovery of approximately $175,000 resulting from the sale of charged-off indirect loan balances to a third-party collector. Charge-offs primarily related to indirect auto loans.

Non-interest income, which includes service charges, real estate fees and other operating income, totaled $1.61 million for the second quarter of 2007, similar to the second quarter of 2006.  The increase is primarily attributable to higher deposit account service charges, fees on mortgage loans sold and the acquisition of The Bank of Venice. Second quarter non-interest income declined compared to the first quarter due primarily to non-recurring gains recognized in the first quarter from the disposition of land and lower fees on mortgage loans sold.

The company continues its investment in growth and expansion, which, combined with increased operating costs, resulted in a 16% increase in non-interest expense for the second quarter of 2007 to $10.19 million compared to $8.75 million for the second quarter of 2006. This increase includes two months of expense from The Bank of Venice totaling approximately $401,000. Compared to the previous quarter and exclusive of the effects of the merger, non-interest expense declined approximately 2% during the second quarter of 2007.

As of June 30, 2007, non-performing loans were $4.40 million, or 0.4% of loans. The allowance for loan losses increased to $9.95 million, or 0.92% of total loans, reflecting the acquisition of The Bank of Venice and the excess of our provision for loan losses over net charge-offs for the period. Net charge-offs during the quarter represented 0.15% of average loans, comparable to 0.16% for the second quarter of last year.

During the second quarter of 2007, the Board of Directors of TIB Financial Corp. declared a quarterly cash dividend of $0.06 per share on its common stock.  The cash dividend was paid on July 10, 2007 to all TIB Financial Corp. common shareholders of record as of June 30, 2007.  This dividend, when annualized, represents $0.24 per share.
 

 
 
About TIB Financial Corp.
Headquartered in Naples, Florida, TIB Financial Corp. is a growth-oriented financial services company with approximately $1.4 billion in total assets and 19 full-service banking offices throughout the Florida Keys, Homestead, Naples, Bonita Springs, Fort Myers, Venice and Sebring.

TIB Financial Corp., through its wholly owned subsidiaries, TIB Bank and The Bank of Venice, serves the personal and commercial banking needs of local residents and businesses in its market areas. The banks’ experienced bankers 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 The Bank of Venice, visit www.tibbank.com and www.bankofvenice.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 Edward V. Lett, Chief Executive Officer and President at (239) 263-3344, 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 INCOME
(Dollars in thousands, except per share data)

   
For the Quarter Ended
  
   
June 30,
2007
    
March 31,
2007
    
December 31,
2006
    
September 30,
2006
    
June 30,
2006
  
Interest and dividend income
   $
23,950
     $
23,379
     $
23,240
     $
22,293
     $
20,822
  
Interest expense
    
12,068
      
11,877
      
11,468
      
10,433
      
8,873
  
NET INTEREST INCOME
    
11,882
      
11,502
      
11,772
      
11,860
      
11,949
  
                                         
Provision for loan losses
    
632
      
472
      
1,285
      
670
      
982
  
                                         
NON-INTEREST INCOME:
                                        
Service charges on deposit accounts
    
657
      
643
      
675
      
650
      
576
  
Fees on mortgage loans sold
    
406
      
533
      
318
      
499
      
357
  
Other income
    
547
      
703
      
660
      
479
      
611
  
Total non-interest income
    
1,610
      
1,879
      
1,653
      
1,628
      
1,544
  
                                         
NON-INTEREST EXPENSE:
                                        
Salaries & employee benefits
    
5,698
      
5,504
      
5,366
      
4,982
      
4,909
  
Net occupancy expense
    
1,977
      
1,909
      
1,590
      
1,545
      
1,503
  
Other expense
    
2,513
      
2,563
      
2,552
      
2,471
      
2,342
  
Total non-interest expense
    
10,188
      
9,976
      
9,508
      
8,998
      
8,754
  
                                         
Income before income tax expense
    
2,672
      
2,933
      
2,632
      
3,820
      
3,757
  
Income tax expense
    
960
      
1,062
      
768
      
1,383
      
1,428
  
Income from continuing operations
    
1,712
      
1,871
      
1,864
      
2,437
      
2,329
  
Income from discontinued operations, net of tax
    
-
      
-
      
72
      
15
      
167
  
NET INCOME
   $
1,712
     $
1,871
     $
1,936
     $
2,452
     $
2,496
  
                                         
BASIC EARNINGS PER SHARE:
                                        
Continuing operations
   $
0.14
     $
0.16
     $
0.16
     $
0.21
     $
0.20
  
Discontinued operations
    
-
      
-
      
0.01
      
-
      
0.02
  
Basic earnings per share
   $
0.14
     $
0.16
     $
0.17
     $
0.21
     $
0.22
  
                                         
DILUTED EARNINGS PER SHARE:
                                        
Continuing operations
   $
0.14
     $
0.16
     $
0.16
     $
0.21
     $
0.20
  
Discontinued operations
    
-
      
-
      
-
      
-
      
0.01
  
Diluted earnings per share
   $
0.14
     $
0.16
     $
0.16
     $
0.21
     $
0.21
  
                                         



TIB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL DATA
(Dollars in thousands, except per share data)

   
For the Quarter Ended
  
   
June 30,
2007
    
March 31,
2007
    
December 31,
2006
    
September 30,
2006
    
June 30,
2006
  
Real estate mortgage loans:
                              
Commercial
   $
580,506
     $
561,267
     $
546,276
     $
535,077
     $
508,392
  
Residential
    
109,034
      
80,188
      
82,243
      
81,262
      
82,591
  
Farmland
    
8,991
      
9,197
      
24,210
      
24,201
      
25,680
  
Construction and vacant land
    
153,917
      
155,421
      
157,672
      
148,115
      
150,604
  
Commercial and agricultural loans
    
73,426
      
71,382
      
84,905
      
85,666
      
82,127
  
Indirect auto dealer loans
    
131,078
      
136,892
      
141,552
      
136,409
      
126,469
  
Home equity loans
    
17,297
      
17,694
      
17,199
      
17,264
      
17,771
  
Other consumer loans
    
11,356
      
9,375
      
9,795
      
9,738
      
9,147
  
Total loans
   $
1,085,605
     $
1,041,416
     $
1,063,852
     $
1,037,732
     $
1,002,781
  
                                         
Gross loans
   $
1,087,264
     $
1,042,991
     $
1,065,468
     $
1,039,390
     $
1,004,307
  
                                         
Net loan charge-offs
   $
394
     $
1,009
     $
494
     $
306
     $
399
  
Allowance for loan losses
   $
9,949
     $
9,044
     $
9,581
     $
8,790
     $
8,426
  
Allowance for loan losses/total loans
     0.92 %     0.87 %     0.90 %     0.85 %     0.84 %
Non-performing loans1
   $
4,401
     $
3,046
     $
4,223
     $
1,701
     $
953
  
Allowance for loan losses/non-performing loans
     226 %     297 %     227 %     517 %     884 %
Non performing loans/gross loans
     0.40 %     0.29 %     0.40 %     0.16 %     0.09 %
Annualized net charge-offs/average loans
     0.15 %     0.39 %     0.19 %     0.12 %     0.16 %
                                         
Total interest-earning assets
   $
1,265,143
     $
1,268,523
     $
1,233,539
     $
1,172,110
     $
1,151,563
  
Other real estate owned
   $
-
     $
-
     $
-
     $
-
     $
-
  
Other repossessed assets
   $
2,370
     $
2,341
     $
1,958
     $
1,502
     $
1,222
  
Goodwill and intangibles, net of accumulated amortization
   $
6,983
     $
847
     $
919
     $
990
     $
1,062
  
                                         
Interest-bearing deposits:
                                        
   NOW accounts
   $
151,359
     $
145,216
     $
132,395
     $
119,899
     $
140,131
  
   Money market
    
198,760
      
188,220
      
164,607
      
162,713
      
172,328
  
   Savings deposits
    
60,323
      
56,392
      
45,076
      
47,309
      
52,637
  
   Time deposits
    
460,461
      
483,889
      
527,999
      
486,243
      
477,921
  
Non-interest bearing deposits
    
173,196
      
183,846
      
159,380
      
155,902
      
176,271
  
Total deposits
   $
1,044,099
     $
1,057,563
     $
1,029,457
     $
972,066
     $
1,019,288
  
                                         
Tax equivalent net interest margin
     3.73 %     3.74 %     3.90 %     4.11 %     4.30 %
Return on average assets
     0.50 %     0.57 %     0.58 %     0.79 %     0.78 %
Return on average equity
     7.03 %     8.75 %     8.72 %     11.77 %     11.69 %
Non-interest expense/tax equivalent net interest income and non-interest income
     75.06 %     74.08 %     70.41 %     66.27 %     64.44 %
                                         
Average diluted shares
    
12,598,658
      
11,944,440
      
11,932,887
      
11,889,512
      
11,860,068
  
End of quarter shares outstanding
    
12,821,216
      
11,836,027
      
11,720,527
      
11,712,812
      
11,682,840
  
Total equity
   $
102,270
     $
88,125
     $
85,862
     $
83,961
     $
80,526
  
Book value per common share
   $
7.98
     $
7.45
     $
7.33
     $
7.17
     $
6.89
  
Total assets
   $
1,358,773
     $
1,351,414
     $
1,319,093
     $
1,257,480
     $
1,232,022
  
                                         
________
1 Non-performing loans as of June 30, 2007, March 31, 2007 and December 31, 2006 include a loan of approximately $1.64 million which is fully guaranteed as to principal and interest by a U.S. government agency. We discontinued accruing interest on this loan during the fourth quarter of 2006 pursuant to a ruling made by the agency.


TIB FINANCIAL CORP. AND SUBSIDIARIES
QUARTERLY AVERAGE BALANCES AND YIELDS
(Dollars in thousands)

   
Quarter Ended
June 30, 2007
    
Quarter Ended
June 30, 2006
  
   
Average
Balances
    
Interest*
    
Yield*
    
Average
Balances
    
Interest*
    
Yield*
  
Loans
   $
1,083,868
     $
21,398
       7.92 %   $
970,639
     $
19,013
       7.86 %
Investments
    
140,683
      
1,796
       5.12 %    
129,658
      
1,629
       5.04 %
Interest bearing deposits
    
340
      
4
       4.72 %    
543
      
7
       5.17 %
Federal Home Loan Bank stock
    
8,288
      
124
       6.00 %    
3,907
      
54
       5.54 %
Fed funds sold
    
53,247
      
709
       5.34 %    
17,334
      
210
       4.86 %
Total interest earning assets
    
1,286,426
      
24,031
       7.49 %    
1,122,081
      
20,913
       7.48 %
Non-interest earning assets
    
87,093
                      
79,528
                  
Total assets
   $
1,373,519
                     $
1,201,609
                  
                                                 
Interest bearing liabilities:
                                                
NOW
   $
159,343
      
1,325
       3.34 %   $
145,203
      
952
       2.63 %
Money market
    
195,945
      
2,068
       4.23 %    
173,289
      
1,498
       3.47 %
Savings
    
58,753
      
274
       1.87 %    
51,247
      
91
       0.71 %
Time
    
475,985
      
5,947
       5.01 %    
470,429
      
5,223
       4.45 %
Total interest-bearing deposits
    
890,026
      
9,614
       4.33 %    
840,168
      
7,764
       3.71 %
Short-term borrowings and FHLB advances
    
158,610
      
1,776
       4.49 %    
59,851
      
662
       4.44 %
Long-term borrowings
    
33,000
      
678
       8.24 %    
18,756
      
447
       9.56 %
Total interest bearing liabilities
    
1,081,636
      
12,068
       4.48 %    
918,775
      
8,873
       3.87 %
                                                 
Non-interest bearing deposits
    
174,253
                      
187,523
                  
Other liabilities
    
19,981
                      
15,369
                  
Shareholders’ equity
    
97,649
                      
79,942
                  
Total liabilities and shareholders’ equity
   $
1,373,519
                     $
1,201,609
                  
                                                 
Net interest income and spread
           $
11,963
       3.01 %           $
12,040
       3.61 %
                                                 
Net interest margin
                     3.73 %                     4.30 %
                                                 
__________
* Presented on a fully tax equivalent basis
  



TIB FINANCIAL CORP. AND SUBSIDIARIES
YEAR TO DATE AVERAGE BALANCES AND YIELDS
(Dollars in thousands)

   
Six Months Ended
June 30, 2007
    
Six Months Ended
June 30, 2006
  
   
Average
Balances
    
Interest*
    
Yield*
    
Average
Balances
    
Interest*
    
Yield*
  
Loans
   $
1,072,260
     $
42,357
       7.97 %   $
942,339
     $
36,342
       7.78 %
Investments
    
137,691
      
3,486
       5.11 %    
119,540
      
2,928
       4.94 %
Interest bearing deposits
    
465
      
12
       5.20 %    
470
      
11
       4.72 %
Federal Home Loan Bank stock
    
8,001
      
236
       5.95 %    
3,277
      
90
       5.54 %
Fed funds sold
    
53,766
      
1,405
       5.27 %    
22,204
      
506
       4.60 %
Total interest earning assets
    
1,272,183
      
47,496
       7.53 %    
1,087,830
      
39,877
       7.39 %
Non-interest earning assets
    
85,397
                      
78,154
                  
Total assets
   $
1,357,580
                     $
1,165,984
                  
                                                 
Interest bearing liabilities:
                                                
NOW
   $
154,630
      
2,580
       3.36 %   $
139,833
      
1,687
       2.43 %
Money market
    
186,414
      
3,882
       4.20 %    
170,410
      
2,760
       3.27 %
Savings
    
53,834
      
413
       1.55 %    
50,270
      
166
       0.67 %
Time
    
494,557
      
12,268
       5.00 %    
456,887
      
9,775
       4.31 %
Total interest-bearing deposits
    
889,435
      
19,143
       4.34 %    
817,400
      
14,388
       3.55 %
Short-term borrowings and FHLB advances
    
153,518
      
3,444
       4.52 %    
49,195
      
1,028
       4.21 %
Long-term borrowings
    
33,022
      
1,358
       8.29 %    
17,883
      
854
       9.63 %
Total interest bearing liabilities
    
1,075,975
      
23,945
       4.49 %    
884,478
      
16,270
       3.71 %
                                                 
Non-interest bearing deposits
    
169,745
                      
185,213
                  
Other liabilities
    
19,651
                      
16,965
                  
Shareholders’ equity
    
92,209
                      
79,328
                  
Total liabilities and shareholders’ equity
   $
1,357,580
                     $
1,165,984
                  
                                                 
Net interest income and spread
           $
23,551
       3.04 %           $
23,607
       3.68 %
                                                 
Net interest margin
                     3.73 %                     4.38 %
                                                 
__________
* Presented on a fully tax equivalent basis