Two days before approving a $175 million investment for TIB Financial Corp. in Naples, Fla., the Federal Reserve entered into a written agreement with the struggling company.
On Wednesday the Fed made public a Sept. 13 agreement with the $1.7 billion-asset TIB. That order came just before it approved North American Financial Holdings Inc.'s $175 million planned capital investment in TIB.
The Fed order, which will have no effect on the investment, calls for TIB to continue to serve as a source of strength for its bank unit. It gives TIB 60 days to submit a capital plan and 10 days to implement the plan once the Fed approves it.
That, however, may prove to be a moot point as the investment from North American Financial, of Charlotte, could close as soon as Sept. 30.
In a brief interview Wednesday, Stephen J. Gilhooly, TIB's chief financial officer, said the written agreement with the Fed was based on an inspection from earlier this year. He added that although the capital investment has been approved, it has not closed.
"It is not that they are not pleased with our transaction. They are just proceeding down the regulatory path," Gilhooly said.
