Faster, Higher, Stronger — Together
2023
A LETTER TO OUR PARTNERS
Each year, when we begin assembling our Annual Report, it not only involves looking back at where we have been — the past year’s successes and challenges, it also requires us to look forward — to think about how we will continue building on what we have achieved. And, that building process takes both individual effort and teamwork — from our employees all the way up to our Customers and Shareholders. With 2024 being an Olympic year, it seems fitting to borrow the motto for the Games. It is expressed in Latin and reads “Citius, Altius, Fortius — Communiter,” which translates to “Faster, Higher, Stronger — Together.”
The reflection portion of this report appears easy, considering TIB posted a record net income of over $40 million in 2023. And, while achieving that record was due, in part, to an extraordinary gain, that single transaction was overshadowed by the real heroes — our people. What started as a very lean forecast for the past year turned into something else entirely, all because our staff stepped up, made difficult decisions, and delivered. They sharpened efficiencies for TIB and our customers, discovered new revenue streams, produced unmatched revenue sharing, significantly reduced overhead, and made TIB an even stronger partner for our customer banks. Rather than focusing on 2023 being a record year, the more significant milestone was that the year’s operating results were the second best in our history and beat our forecast by more than 50%. It was a performance worthy of the top platform and a gold medal. And this is just the beginning.
Now, we look forward to 2024 and beyond as we aim to build on that performance. Records are great for posterity, but what really matters most is continuing to reach for “personal bests” each day — delivering a better service experience, improving our customers’ bottom line, providing more relevant educational opportunities, finding new ways to improve your competitive edge, and creating more value for our shareholders and partner banks. With those as our goals, there is no finish line.
May we all strive to live by those inspiring words that have echoed through time: “Faster, Higher, Stronger — Together.”
All my best,
Michael G. O’Rourke President and CEOEXECUTIVE TEAM
G. O’Rourke Chief Executive Officer T. Patrick Gray Executive Vice President Chief Cards and Technology Officer R. Kevin Drew Executive Vice President Chief Lending Officer David A. Linaburg Executive Vice President Chief Risk Officer Beverly Texada Executive Vice President Director of Card Services Dawn Velekei Executive Vice President Chief Financial Officer Todd J. Wentz Executive Vice President Director of Investment Strategies
Michael
TIB.bank
FINANCIAL HIGHLIGHTS
As of 12/31/23
CONDENSED BALANCE SHEETS*
Assets
Cash and cash equivalents
2023
• Record Revenue Sharing of Over $31.5 Million
• Record Dividend Declared of Nearly $7 Million
• Record Net Income of Over $40 Million
• Record Capital of Over $346 Million
• Record Total Loans of Over $1.5 Billion
Loans receivable (Gross)
assets Total Assets LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities Deposits Short term borrowings (FFP and Borrowings) Other liabilities Total Liabilities Shareholders’ Equity Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive income (Loss) Total Shareholders’ Equity Total Liabilities and Shareholders’ Equity CONDENSED INCOME STATEMENTS* Net Interest Income Provision for Loan Losses Noninterest Income Noninterest Expense Income Before Income Taxes Provision for Income Taxes Net Income *Based on Call Report A RECORD-SETTING PERFORMANCE 71% Noninterest Income 29% Net Interest Income 99.98% Performing Assets 0.02% Non-Performing Assets 2023 $31,990 752,329 101,255 351,107 3,148 1,576,918 124,596 $2,941,343 2022 $36,636 759,032 131,277 305,029 1,736 1,197,654 119,616 $2,550,980 $2,194,767 341,770 58,444 $2,594,981 $2,046,893 160,432 28,565 $2,235,890 $7,000 106,027 254,441 (21,106) $346,362 $2,941,343 $7,000 106,027 229,993 (27,930) $315,090 $2,550,980 2023 $46,905 (640) 117,405 115,126 49,824 9,455 $40,369 2022 $41,147 940 107,210 115,406 32,011 4,849 $27,162 $46.9 $117.4 TIB ASSET QUALITY Performing Assets Non-Performing Assets 99.98% 0.02%
Interest-bearing deposits Fed funds sold Available-for-sale securities Loans held for sale
Other
CURTIS HARVEY served as TIB’s Chief Financial Officer for over 12 years and was the epitome of a Trusted Partner - both to the Executive Team and to everyone with whom he worked. We thank him for his unwavering loyalty, wise counsel, and faithful friendship - always.
GALE FOSSATTI has faithfully served community bankers throughout the Western United States since joining TIB 20 years ago. Her professionalism, servant leadership, and constant optimism have been instrumental in expanding our relationships across that region. We wish Gale all the best in retirement.
CYNTHIA POLLOCK spent more than three decades with TIB in what is now TIB Consulting Solutions. During those 30 years, she served as a Trusted Partner to innumerable banks managing their lending risk to better serve their customers.
HASSAN BEHESHTI retired from our Information Services Division as a Data Processing Associate. Reliable, consistent and a true partner, Hassan served TIB for over 23 years.
DIANA FISHER also recently retired from our Accounting Department after nearly 15 years. She has been a wonderful teammate whose work ethic and loyalty have been treasured and will be missed.
“You can’t put a limit on anything. The more you dream, the farther you get.”
— Michael Phelps
J. Michael “Mike” Terrell
July 11, 1951 - April 19, 2023
J. Michael “Mike” Terrell was a fixture on TIB’s Board of Directors from 2001-2023. He served as our Chairman from 2005-2006. He served as CEO of Waggoner National Bank in Vernon, TX, before his retirement to take care of his ailing wife, Donna.
TIB never had a bigger fan or supporter. More importantly, we never had a better friend.
Mike had a singular sense of humor that kept us all on our toes. Every time we walk into a pro shop, we will miss hearing his trademark, “Where’s the first tee box and what’s the course record?” quip to the golf pro. We will miss his wisdom, his understanding, and his leadership. Mostly, we will just miss Mike.
TIB’s Board of Directors recently chose to rename the Bank’s Board Room in Mike’s honor. It is the first such dedication in TIB’s history and a fitting tribute to a man who always filled that space with his unique and uplifting presence.
Our Board of Directors (External)
H. Gary Blankenship Chairman & CEO Bank of the West Grapevine, TX
Micah Boles President & CEO First National Bank of Bosque County Valley Mills, TX
John D’Angelo President & CEO Investar Bank Baton Rouge, LA
Robert M. Franko Director Royal Business Bank Los Angeles, CA
Joe Kim King Chairman The Brady National Bank Brady, TX
Dr. Timothy Koch, Ph.D. Emeritus Professor Charleston, SC
Sheila Mathews President & CEO Four Corners Community Bank Farmington, NM
Frank E. Morris Chairman First State Bank Gainesville, TX
Gary Owens President Wallis Bank Houston, TX
Victor Pierson
Chairman, President & CEO The Moody National Bank Galveston, TX
Rogers Pope, Jr. Vice Chairman & CEO Texas Bank and Trust Co. Longview, TX
Chris Furlow + President & CEO Texas Bankers Association Austin, TX
Christopher Williston, VI + President & CEO Independent Bankers Assoc. of Texas Austin, TX
+ Advisory Director
A FOND FAREWELL In memory of
TIB.bank 11701 Luna Road | Farmers Branch, TX 75234 | 800.288.4842 TIB, N.A.