North American Financial Holdings Inc. of Charlotte has received approval to invest $175 million in the struggling TIB Financial Corp. in Naples, Fla.
The $1.7 billion-asset TIB announced Friday that the Federal Reserve Bank of Atlanta approved the infusion on Sept. 15. The approval authorizes the companies to move ahead with the investment after a customary 15-day waiting period.
North American Financial, a bank holding company led by former Bank of America Corp. executive Eugene Taylor, struck the agreement on June 29 to allow TIB to shore up its undercapitalized bank unit.
North American Financial, which is backed by Crestview Partners of New York and other private-equity firms, would buy 700 million shares of common stock at 15 cents a share. It would buy another 70,000 shares of convertible preferred stock. The investment would give North American Financial a 99% ownership stake in TIB. It would have 18 months to invest another $75 million in TIB.