Wednesday, December 10, 2008

TIB (The Islamorada Bank) gets lending money

This article is From the Key West Citizen:

"TIB gets lending money
By Robert Silk Citizen Staff

TIB Financial Corp. will receive a $37 million capital infusion from the U.S. Treasury Department under a deal that closed last week.
The money will help TIB's nine Florida Keys branches continue lending to individual homeowners and small- and medium-sized businesses.
"It will allow us to continue without interrupting our mission," TIB Bank President/CEO Mike Carrigan said. "So far this year, we have never stopped lending."

The funds come as part of a program authorized by Congress' $700 billion economic rescue package, approved in early October. Carrigan stressed that this portion of the package, called the Capital Purchase Program, is available only to banks that federal regulators deem to be sufficiently healthy.

"This is an investment. It is not a gift. It is not a bailout," Carrigan said.
Under the deal, the Treasury Department will purchase $37 million worth of preferred TIB stock with an annual dividend of 5 percent for the first three years and 9 percent in the ensuing years.
In addition, the government is to receive warrants for $5.5 million in common TIB stock at $5.22 per share. The warrants can be turned in for actual stock shares at the government's discretion.

TIB was trading at $4.50 per share as of late Monday morning, down slightly more than half from its 12-month high of $9.47.
Carrigan said TIB has not been immune to the economic crunch that has afflicted financial institutions across the country, but it has doled out $150 million in residential mortgages for homeowners and $90 million in commercial loans to businesses this year, he said. About half of those business loans have been provided in the Keys, he said.
TIB reported losses of $2.2 million in the third quarter, compared with a profit of $494,000 during the same period last year.
The total value of its commercial loans increased by $20 million from the end of June to the end of September and its residential loans increased by $17 million.
The company holds $1.23 billion in total loans, of which $27 million are either in default or nearly there.
TIB Financial Corp. is the parent company of TIB Bank, The Bank of Venice and Naples Capital Advisors. It has 17 banks in the Keys, Homestead, Naples, Bonita Springs, Fort Myers, Venice and Sebring.
Founded in Islamorada, the bank now has its company headquarters in Naples, and two branches in Key West, one in Big Pine Key, two in Marathon, one in Islamorada, one in Tavernier and two in Key Largo.
As of Friday, only two other Florida banks were in the queue to receive a capital infusion under the Treasury's $250 billion Capital Purchase Program, according to The Wall Street Journal."

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