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NAPLES — After posting $97 million in net losses in its four previous quarters, TIB Financial Corp. (symbol: TIBB) reported profits of $560,000 in the fourth quarter of 2010.
Poorly performing assets had been weighing down the Naples bank's financials. Over the year that ended Sept. 30, 2010, TIB committed $44 million to its provision for loan losses. In the third quarter of 2010 alone, the bank spent $15.4 million on foreclosure-related expenses.
Then on Sept. 30, North American Financial Holdings acquired TIB and invested $175 million to shore up its balance sheet. The influx of cash helped clean up TIB's balance sheet, and the investment paid off over the last three months of the year.
In the final quarter of 2010, TIB's loan loss provision combined with its foreclosure-related expenses cost the bank less than $1 million. That helped management retain a small portion of the bank's $12.4 million in net interest income as profits.
“TIB has made significant progress in redirecting its focus,” explains chairman and CEO R. Eugene Taylor, who also acts as chief executive for NAFH. “We continue to increase our emphasis and focus on loan origination and core deposit generation.
“As a profitable, stable and secure financial institution, unlike many of our local community bank competition, we are actively seeking to expand our franchise, increase market share and develop new customer relationships,” Taylor adds.
Last week, NAFH executives announced that they plan to merge TIB into a new financial institution called Capital Bank, which will be headquartered in Miami.
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