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Message FINANCIAL HIGHLIGHTSFINANCIAL HIGHLIGHTSAs of 12/31/24As of 12/31/24TIB REVENUE SOURCESNet Interest Income Noninterest Income 60.5%NoninterestIncome39.5%Net InterestIncome$62,026$95,1092024ANNUALREPORTYOUR TRUSTED PARTNERFLYWHEEL TO FORTRESS11701 Luna Road | Farmers Branch, TX 75234 | 800.288.4842Diana Fisher, our dear friend and TIB Family Member, passed away on Tuesday, December 31, 2024, at the age of 71. She served in our Accounng & Finance Department for over 14 years, unl she rered from TIB in 2023. She will always be missed throughout the bank.Always In Our HeartsLuAnn Walden was among TIB’s earliest employees, having started working at the bank just a few weeks aer our doors opened in 1982. She le us all too soon, on January 18, 2025, at the age of 64. In one of the great stories in bank history, she and Lyle Walden, our Director of Informaon Services, found one another here at TIB. They married and enjoyed a long and wonderful marriage unl her recent passing. Moreover, each of their three children have worked for us here at the bank, underscoring what a real “family” TIB truly is. We will miss her ever-present smile and sweet spirit.Our President and CEO, Michael O’Rourke, has a mantra that he repeats often: He wants all of our employees to eventually retire from TIB - meaning that he wants them to be here for as long as they want to be. This year’s group of rerees personify that mantra - and serve as prime examples of the incredible character and leadership you will nd across the TIB Family.Shari Taylor-Nehlebae rst joined TIB in 2001, briey worked for another organizaon, and returned in 2005. She spent her 22-year career with TIB in the Quality Control Department of our Mortgage Division. Shari was an integral part of TIB Mortgage’s ongoing success. Tom Bradford rered aer 18 years as a Business Development Ocer in TIB’s Card Services Division. Tom was exceponal at building relaonships with prospecve partner banks and working with them to help build successful Card Programs. Mindy Freyling spent nearly a decade at TIB, having arrived in 2014. She rered as Director of Compliance Consulng, having served the crical compliance and training needs of TIB’s community bank partners.Jorja Morgan rered aer overseeing TIB’s considerable Safekeeping operaons for more than 20 years. During her tenure, the par value of TIB’s Safekeeping reached $50 billion and served community banks across 25 states.Deb Nelson spent 22 years with TIB as a Senior Relaonship Ocer, working closely with our partner banks to solve their correspondent needs and just being a friend. Deb was beloved by her customers and was crical to TIB’s success throughout the western United States.RETIREMENTSTIB.bankFLYWHEEL TO FORTRESSHISTORICAL (1982-2024)REVENUE SHARING VS. NET INCOME (000s)$600,000$500,000$400,000$300,000$553,350$481,099REVENUE SHARING NET INCOME2024 $6,014 814,436 77,686 134,142 2,011 1,803,193 118,202 $2,955,684 $2,433,418 122,460 13,457 $2,569,335 $7,000 106,027 282,500 (9,178)$386,349 $2,955,684 2024 $62,026 1,432 95,109 105,283 50,420 9,361 $41,059 2023 $31,990 752,329 101,255 351,107 3,148 1,576,918 124,596 $2,941,343 $2,194,767 341,770 58,444 $2,594,981 $7,000 106,027 254,441 (21,106)$346,362 $2,941,343 2023 $46,905 (640) 117,405 115,126 49,824 9,455 $40,369 CONDENSED BALANCE SHEETS*(000s)AssetsCash and cash equivalentsInterest-bearing depositsFed funds soldAvailable-for-sale securiesLoans held for saleLoans receivable Other assetsTotal Assets LIABILITIES AND SHAREHOLDERS’ EQUITYLiabiliesDeposits Short term borrowingsOther liabiliesTotal LiabiliesShareholders’ EquityCommon stockAddional paid-in capitalRetained earningsAccumulated othercomprehensive income (loss)Total Shareholders’ EquityTotal Liabilies and Shareholders’ EquityCONDENSED INCOME STATEMENTS*Net interest incomeProvision for loan lossesNoninterest incomeNoninterest expenseIncome before income taxesProvision for income taxesNet Income*BASED ON CALL REPORT2024 HIGHLIGHTS• Record Shared Revenue of Over $33 Million• Record Capital of Over $386 Million• Record Dividends of $7.25 Million• Record Net Income of $41 Million• Named to American Banker’s “Best Banks to Work For” List for the 7th Straight Year• A Record 7,500+ Merchants on TIB’s Naonwide Merchant Processing Program• Card Services Delivered a New Digital Applicaon System for Partner Banks, Resulng in a 200% Increase in Applicaon Volume for Our Client Banks• The Bank CEO Network Now Serves Nearly 170 Banks and Over 240 Banking Execuves Across 27 States
TIB.bankJust as important, as I have highlighted many mes in this space, revenue sharing has long been a hallmark of our approach to serving as a real Trusted Partner. Since 2006, TIB has posted revenue sharing of over $480 million – a tangible demonstraon of our ongoing commitment to that original “co-op for prot” concept and one that is unprecedented among correspondent providers. Next, as our nancial highlights inside this report will show, TIB surpassed $41 million in net income in 2024, outpacing the $40 million we posted in 2023. These are both records that far exceed even the bank’s most notable past performances. Consequently, the monetary return has grown quite signicantly. We sll have 78 of our original shareholders who never envisioned a 26% return on their inial $25 per share investment, as they did in 2024. In fact, today, the dividend that TIB pays to all of its shareholders across the naon returns an average yield of 9.70%, based on their cost.As we have moved forward, the ongoing success of TIB since 2006 has remained dependent upon not only a tenured and exceponal sta but also an equally tenured and experienced Board of Directors. There is a subset of our Board that possesses long-term crical knowledge that can impact the bank’s future successes, especially succession planning. These Legacy Directors - Kim King, Frank Morris, Gary Blankenship, and Rogers Pope, Jr. - currently serve in that vital capacity. And, speaking of succession planning, I am pleased to report that TIB is blessed with an abundance of talent throughout the enre organizaon. In fact, due to our Senior Vice President level ocers having an average tenure of well over 20 years at TIB, we currently have two-deep management succession bench strength in 27 of our 29 products, services, and operaonal areas. Another strength is having a mulgeneraonal senior management team made up of true entrepreneurs who are always looking for new and beer ways to funcon, as well as ancipang what our partner banks will need next – precisely what an organizaon in our unique business space needs to remain fresh, relevant, and vibrant. That is TIB yesterday, today, and what we plan to be tomorrow. Regardless of how fast the ywheel spins, our rst priority is to turn that success into more stones for this fortress we are building for you. We will connue to separate ourselves as the leader in our industry as the most trusted and the most well-capitalized correspondent partner in America – one that will be here to partner with community banks for generaons to come. We always stand ready to be THE Trusted Partner for you, your sta, and your customers. Thank you for your connued trust, support, and friendship.Always your Partner, A LETTER TO OUR PARTNERSA LETTER TO OUR PARTNERSEXECUTIVE TEAMEXECUTIVE TEAMFLYWHEEL TO FORTRESSFLYWHEEL TO FORTRESSMICHAEL G. O’ROURKEPRESIDENT & CHIEF EXECUTIVE OFFICERTO OUR TRUSTED PARTNERSTO OUR TRUSTED PARTNERSWhen TIB was in its formave stages in 1981, a group of visionary community bankers crisscrossed the great state of Texas, asking their colleagues to join their cause as shareholders in a new enty - a partner instuon commied solely to helping them compete more eecvely against the “big banks.” They had learned the hard way that entrusng their correspondent needs to their larger counterparts was all too oen rewarded by the larger bank solicing their customers directly or opening a branch down the street and raiding their customer base. This new enty had to be dierent. Independent bankers all across the state bought into the concept. By the me TIB opened its doors in January 1982, it was, at the me, the largest-ever capitalized de novo bank in Texas, at over $15 million. Those visionaries had no idea what TIB would become 44 years later. The original concept was for TIB to serve as a “co-op for prot” of sorts. The goal was to employ the capital the shareholder banks invested in a way that would ensure this new partner was strong enough to remain by their side through any economic storm. In addion, TIB would connually keep the “big banks” honest on pricing. Today, as a result, regardless of whether you ulized TIB, your pricing is lower because we keep the compeon in check. TIB was quickly put to the test in the mid-1980s during what was referred to as “The Texas Depression.” TIB survived, but the lessons learned during that tumultuous period have served us extremely well ever since. Today, as a provider of correspondent services to over 1,300 community banks across the country, as well as having shareholders from coast to coast, it is crical for TIB to maintain a conservave approach to our business model – as the lessons of the ‘80s taught us. That approach is why TIB never missed a beat during the 2007-09 recession. It is worth nong that, during that economic downturn, other correspondent banks failed. TIB was called upon to assist with the disposion of one, and then acquired the deposits and operaons of another. We were able to do so because of our nancial strength. From 2006 forward, our management team has been keenly focused on just that – maintaining our nancial strength and growing our capital base. As a team, we studied Jim Collins’s bestseller, “Good to Great,” and, as a result, adopted the book as a guide for where we wanted to take TIB and how we would go about it. Many of the book’s concepts have served us well.One of those concepts is that of the “Flywheel Eect,” in which companies build incredible momentum that propels the organizaon to new heights. At rst, the process is slow and methodical and must be appropriately managed, but it is a powerful force when it can be realized. Fast-forward to 2024, and we believe we are experiencing the ongoing results of that idea in real me. Since undertaking this iniave in 2006, our Tier 1 Capital has increased 253% from $110 million to over $390 million, while our dividend-per-share growth has increased 400%. We have dividended in excess of $78 million over this same period of me, nearly half of which came during the last six years. Our capital should exceed $400 million someme this year, with a ve-year target of reaching half a billion dollars. A fortress, indeed. But, we are nowhere near achieving the maximum ywheel eect.Our Board of DirectorsTHE Trusted Partner to Community Bankers for Over 40 Years.Operational ServicesCheck Processing | Cash Leer Gateway | Wire Transfer | ACH OriginaonGlobal Payments | Remote Deposit Capture | Vault Services | Electronic BankingCorrespondent LendingBank Stock Financing | Parcipaons | Overline Assistance | Residenal Mortgage | Bank Ocer CreditCard ServicesCredit Cards | Debit/ATM Cards | Merchant Processing | Purchasing Cards | Gi CardsPayroll Cards | Digital Plaorm | Rewards ProgramCapital MarketsInvestment Sales & Consultaon | Safekeeping | Bond Accounng | Treasury ManagementConsulting & Professional ServicesA/L Management | Loan Review | Compliance | BSA/AML Training & TesngH. Gary BlankenshipChairman & CEOBank of the WestGrapevine, TXMicah BolesPresident & CEO First Naonal Bank ofBosque CountyValley Mills, TXJohn D’AngeloPresident & CEO Investar BankBaton Rouge, LA R. Kevin DrewExecuve Vice PresidentChief Lending OcerTIB, N.A. Robert M. FrankoDirectorRoyal Business BankLos Angeles, CAT. Patrick GrayExecuve Vice PresidentChief Card & Technology OcerTIB, N.A.Joe Kim KingChairmanThe Brady Naonal BankBrady, TXDr. Timothy Koch, Ph.D.Emeritus ProfessorCharleston, SCDavid A. LinaburgExecuve Vice PresidentChief Risk OcerTIB, N. A.Sheila MathewsPresident & CEOFour Corners Community BankFarmington, NMFrank E. MorrisChairmanFirst State BankGainesville, TXMichael G. O’RourkePresidentChief Execuve OcerTIB, N.A.Gary OwensPresidentWallis BankHouston, TXVictor PiersonChairman, President & CEOThe Moody Naonal BankGalveston, TXRogers Pope, Jr.Vice Chairman & CEOTexas Bank and Trust Co.Longview, TXDawn Velekei+Execuve Vice PresidentChief Financial OcerTIB, N.A.Chris Furlow +President & CEOTexas Bankers AssociaonAusn, TXChristopher Williston, VI +President & CEOIndependent Bankers Assoc.of TexasAusn, TX+ Advisory DirectorR. Kevin DrewExecutive Vice PresidentChief Lending OcerT. Patrick GrayExecutive Vice PresidentChief Card & Technology OcerDavid A. LinaburgExecutive Vice PresidentChief Risk OcerDawn VelekeiExecutive Vice PresidentChief Financial OcerBeverly TexadaExecutive Vice PresidentSecretary to the BoardTodd J. WentzExecutive Vice PresidentDirector of Capital Markets StrategiesMichael G. O’RourkePresidentChief Executive Ocer”TIB has a long and storied history of supporting America’s community banks. As we all know, community banks are vital to the local economy, supporting small businesses and investing in community development. TIB and our community bank partners create a sense of true security by providing a stable presence within the nancial services landscape. I am proud to be a part of this organization – one that lls a vital role for my bank and every other community bank. Together, TIB and community banks are making a dierence.— VICTOR PIERSONChairman, President & CEO | The Moody National Bank, Galveston, TexasChairman, TIB, N.A.
TIB.bankJust as important, as I have highlighted many mes in this space, revenue sharing has long been a hallmark of our approach to serving as a real Trusted Partner. Since 2006, TIB has posted revenue sharing of over $480 million – a tangible demonstraon of our ongoing commitment to that original “co-op for prot” concept and one that is unprecedented among correspondent providers. Next, as our nancial highlights inside this report will show, TIB surpassed $41 million in net income in 2024, outpacing the $40 million we posted in 2023. These are both records that far exceed even the bank’s most notable past performances. Consequently, the monetary return has grown quite signicantly. We sll have 78 of our original shareholders who never envisioned a 26% return on their inial $25 per share investment, as they did in 2024. In fact, today, the dividend that TIB pays to all of its shareholders across the naon returns an average yield of 9.70%, based on their cost.As we have moved forward, the ongoing success of TIB since 2006 has remained dependent upon not only a tenured and exceponal sta but also an equally tenured and experienced Board of Directors. There is a subset of our Board that possesses long-term crical knowledge that can impact the bank’s future successes, especially succession planning. These Legacy Directors - Kim King, Frank Morris, Gary Blankenship, and Rogers Pope, Jr. - currently serve in that vital capacity. And, speaking of succession planning, I am pleased to report that TIB is blessed with an abundance of talent throughout the enre organizaon. In fact, due to our Senior Vice President level ocers having an average tenure of well over 20 years at TIB, we currently have two-deep management succession bench strength in 27 of our 29 products, services, and operaonal areas. Another strength is having a mulgeneraonal senior management team made up of true entrepreneurs who are always looking for new and beer ways to funcon, as well as ancipang what our partner banks will need next – precisely what an organizaon in our unique business space needs to remain fresh, relevant, and vibrant. That is TIB yesterday, today, and what we plan to be tomorrow. Regardless of how fast the ywheel spins, our rst priority is to turn that success into more stones for this fortress we are building for you. We will connue to separate ourselves as the leader in our industry as the most trusted and the most well-capitalized correspondent partner in America – one that will be here to partner with community banks for generaons to come. We always stand ready to be THE Trusted Partner for you, your sta, and your customers. Thank you for your connued trust, support, and friendship.Always your Partner, A LETTER TO OUR PARTNERSA LETTER TO OUR PARTNERSEXECUTIVE TEAMEXECUTIVE TEAMFLYWHEEL TO FORTRESSFLYWHEEL TO FORTRESSMICHAEL G. O’ROURKEPRESIDENT & CHIEF EXECUTIVE OFFICERTO OUR TRUSTED PARTNERSTO OUR TRUSTED PARTNERSWhen TIB was in its formave stages in 1981, a group of visionary community bankers crisscrossed the great state of Texas, asking their colleagues to join their cause as shareholders in a new enty - a partner instuon commied solely to helping them compete more eecvely against the “big banks.” They had learned the hard way that entrusng their correspondent needs to their larger counterparts was all too oen rewarded by the larger bank solicing their customers directly or opening a branch down the street and raiding their customer base. This new enty had to be dierent. Independent bankers all across the state bought into the concept. By the me TIB opened its doors in January 1982, it was, at the me, the largest-ever capitalized de novo bank in Texas, at over $15 million. Those visionaries had no idea what TIB would become 44 years later. The original concept was for TIB to serve as a “co-op for prot” of sorts. The goal was to employ the capital the shareholder banks invested in a way that would ensure this new partner was strong enough to remain by their side through any economic storm. In addion, TIB would connually keep the “big banks” honest on pricing. Today, as a result, regardless of whether you ulized TIB, your pricing is lower because we keep the compeon in check. TIB was quickly put to the test in the mid-1980s during what was referred to as “The Texas Depression.” TIB survived, but the lessons learned during that tumultuous period have served us extremely well ever since. Today, as a provider of correspondent services to over 1,300 community banks across the country, as well as having shareholders from coast to coast, it is crical for TIB to maintain a conservave approach to our business model – as the lessons of the ‘80s taught us. That approach is why TIB never missed a beat during the 2007-09 recession. It is worth nong that, during that economic downturn, other correspondent banks failed. TIB was called upon to assist with the disposion of one, and then acquired the deposits and operaons of another. We were able to do so because of our nancial strength. From 2006 forward, our management team has been keenly focused on just that – maintaining our nancial strength and growing our capital base. As a team, we studied Jim Collins’s bestseller, “Good to Great,” and, as a result, adopted the book as a guide for where we wanted to take TIB and how we would go about it. Many of the book’s concepts have served us well.One of those concepts is that of the “Flywheel Eect,” in which companies build incredible momentum that propels the organizaon to new heights. At rst, the process is slow and methodical and must be appropriately managed, but it is a powerful force when it can be realized. Fast-forward to 2024, and we believe we are experiencing the ongoing results of that idea in real me. Since undertaking this iniave in 2006, our Tier 1 Capital has increased 253% from $110 million to over $390 million, while our dividend-per-share growth has increased 400%. We have dividended in excess of $78 million over this same period of me, nearly half of which came during the last six years. Our capital should exceed $400 million someme this year, with a ve-year target of reaching half a billion dollars. A fortress, indeed. But, we are nowhere near achieving the maximum ywheel eect.Our Board of DirectorsTHE Trusted Partner to Community Bankers for Over 40 Years.Operational ServicesCheck Processing | Cash Leer Gateway | Wire Transfer | ACH OriginaonGlobal Payments | Remote Deposit Capture | Vault Services | Electronic BankingCorrespondent LendingBank Stock Financing | Parcipaons | Overline Assistance | Residenal Mortgage | Bank Ocer CreditCard ServicesCredit Cards | Debit/ATM Cards | Merchant Processing | Purchasing Cards | Gi CardsPayroll Cards | Digital Plaorm | Rewards ProgramCapital MarketsInvestment Sales & Consultaon | Safekeeping | Bond Accounng | Treasury ManagementConsulting & Professional ServicesA/L Management | Loan Review | Compliance | BSA/AML Training & TesngH. Gary BlankenshipChairman & CEOBank of the WestGrapevine, TXMicah BolesPresident & CEO First Naonal Bank ofBosque CountyValley Mills, TXJohn D’AngeloPresident & CEO Investar BankBaton Rouge, LA R. Kevin DrewExecuve Vice PresidentChief Lending OcerTIB, N.A. Robert M. FrankoDirectorRoyal Business BankLos Angeles, CAT. Patrick GrayExecuve Vice PresidentChief Card & Technology OcerTIB, N.A.Joe Kim KingChairmanThe Brady Naonal BankBrady, TXDr. Timothy Koch, Ph.D.Emeritus ProfessorCharleston, SCDavid A. LinaburgExecuve Vice PresidentChief Risk OcerTIB, N. A.Sheila MathewsPresident & CEOFour Corners Community BankFarmington, NMFrank E. MorrisChairmanFirst State BankGainesville, TXMichael G. O’RourkePresidentChief Execuve OcerTIB, N.A.Gary OwensPresidentWallis BankHouston, TXVictor PiersonChairman, President & CEOThe Moody Naonal BankGalveston, TXRogers Pope, Jr.Vice Chairman & CEOTexas Bank and Trust Co.Longview, TXDawn Velekei+Execuve Vice PresidentChief Financial OcerTIB, N.A.Chris Furlow +President & CEOTexas Bankers AssociaonAusn, TXChristopher Williston, VI +President & CEOIndependent Bankers Assoc.of TexasAusn, TX+ Advisory DirectorR. Kevin DrewExecutive Vice PresidentChief Lending OcerT. Patrick GrayExecutive Vice PresidentChief Card & Technology OcerDavid A. LinaburgExecutive Vice PresidentChief Risk OcerDawn VelekeiExecutive Vice PresidentChief Financial OcerBeverly TexadaExecutive Vice PresidentSecretary to the BoardTodd J. WentzExecutive Vice PresidentDirector of Capital Markets StrategiesMichael G. O’RourkePresidentChief Executive Ocer”TIB has a long and storied history of supporting America’s community banks. As we all know, community banks are vital to the local economy, supporting small businesses and investing in community development. TIB and our community bank partners create a sense of true security by providing a stable presence within the nancial services landscape. I am proud to be a part of this organization – one that lls a vital role for my bank and every other community bank. Together, TIB and community banks are making a dierence.— VICTOR PIERSONChairman, President & CEO | The Moody National Bank, Galveston, TexasChairman, TIB, N.A.
TIB.bankJust as important, as I have highlighted many mes in this space, revenue sharing has long been a hallmark of our approach to serving as a real Trusted Partner. Since 2006, TIB has posted revenue sharing of over $480 million – a tangible demonstraon of our ongoing commitment to that original “co-op for prot” concept and one that is unprecedented among correspondent providers. Next, as our nancial highlights inside this report will show, TIB surpassed $41 million in net income in 2024, outpacing the $40 million we posted in 2023. These are both records that far exceed even the bank’s most notable past performances. Consequently, the monetary return has grown quite signicantly. We sll have 78 of our original shareholders who never envisioned a 26% return on their inial $25 per share investment, as they did in 2024. In fact, today, the dividend that TIB pays to all of its shareholders across the naon returns an average yield of 9.70%, based on their cost.As we have moved forward, the ongoing success of TIB since 2006 has remained dependent upon not only a tenured and exceponal sta but also an equally tenured and experienced Board of Directors. There is a subset of our Board that possesses long-term crical knowledge that can impact the bank’s future successes, especially succession planning. These Legacy Directors - Kim King, Frank Morris, Gary Blankenship, and Rogers Pope, Jr. - currently serve in that vital capacity. And, speaking of succession planning, I am pleased to report that TIB is blessed with an abundance of talent throughout the enre organizaon. In fact, due to our Senior Vice President level ocers having an average tenure of well over 20 years at TIB, we currently have two-deep management succession bench strength in 27 of our 29 products, services, and operaonal areas. Another strength is having a mulgeneraonal senior management team made up of true entrepreneurs who are always looking for new and beer ways to funcon, as well as ancipang what our partner banks will need next – precisely what an organizaon in our unique business space needs to remain fresh, relevant, and vibrant. That is TIB yesterday, today, and what we plan to be tomorrow. Regardless of how fast the ywheel spins, our rst priority is to turn that success into more stones for this fortress we are building for you. We will connue to separate ourselves as the leader in our industry as the most trusted and the most well-capitalized correspondent partner in America – one that will be here to partner with community banks for generaons to come. We always stand ready to be THE Trusted Partner for you, your sta, and your customers. Thank you for your connued trust, support, and friendship.Always your Partner, A LETTER TO OUR PARTNERSA LETTER TO OUR PARTNERSEXECUTIVE TEAMEXECUTIVE TEAMFLYWHEEL TO FORTRESSFLYWHEEL TO FORTRESSMICHAEL G. O’ROURKEPRESIDENT & CHIEF EXECUTIVE OFFICERTO OUR TRUSTED PARTNERSTO OUR TRUSTED PARTNERSWhen TIB was in its formave stages in 1981, a group of visionary community bankers crisscrossed the great state of Texas, asking their colleagues to join their cause as shareholders in a new enty - a partner instuon commied solely to helping them compete more eecvely against the “big banks.” They had learned the hard way that entrusng their correspondent needs to their larger counterparts was all too oen rewarded by the larger bank solicing their customers directly or opening a branch down the street and raiding their customer base. This new enty had to be dierent. Independent bankers all across the state bought into the concept. By the me TIB opened its doors in January 1982, it was, at the me, the largest-ever capitalized de novo bank in Texas, at over $15 million. Those visionaries had no idea what TIB would become 44 years later. The original concept was for TIB to serve as a “co-op for prot” of sorts. The goal was to employ the capital the shareholder banks invested in a way that would ensure this new partner was strong enough to remain by their side through any economic storm. In addion, TIB would connually keep the “big banks” honest on pricing. Today, as a result, regardless of whether you ulized TIB, your pricing is lower because we keep the compeon in check. TIB was quickly put to the test in the mid-1980s during what was referred to as “The Texas Depression.” TIB survived, but the lessons learned during that tumultuous period have served us extremely well ever since. Today, as a provider of correspondent services to over 1,300 community banks across the country, as well as having shareholders from coast to coast, it is crical for TIB to maintain a conservave approach to our business model – as the lessons of the ‘80s taught us. That approach is why TIB never missed a beat during the 2007-09 recession. It is worth nong that, during that economic downturn, other correspondent banks failed. TIB was called upon to assist with the disposion of one, and then acquired the deposits and operaons of another. We were able to do so because of our nancial strength. From 2006 forward, our management team has been keenly focused on just that – maintaining our nancial strength and growing our capital base. As a team, we studied Jim Collins’s bestseller, “Good to Great,” and, as a result, adopted the book as a guide for where we wanted to take TIB and how we would go about it. Many of the book’s concepts have served us well.One of those concepts is that of the “Flywheel Eect,” in which companies build incredible momentum that propels the organizaon to new heights. At rst, the process is slow and methodical and must be appropriately managed, but it is a powerful force when it can be realized. Fast-forward to 2024, and we believe we are experiencing the ongoing results of that idea in real me. Since undertaking this iniave in 2006, our Tier 1 Capital has increased 253% from $110 million to over $390 million, while our dividend-per-share growth has increased 400%. We have dividended in excess of $78 million over this same period of me, nearly half of which came during the last six years. Our capital should exceed $400 million someme this year, with a ve-year target of reaching half a billion dollars. A fortress, indeed. But, we are nowhere near achieving the maximum ywheel eect.Our Board of DirectorsTHE Trusted Partner to Community Bankers for Over 40 Years.Operational ServicesCheck Processing | Cash Leer Gateway | Wire Transfer | ACH OriginaonGlobal Payments | Remote Deposit Capture | Vault Services | Electronic BankingCorrespondent LendingBank Stock Financing | Parcipaons | Overline Assistance | Residenal Mortgage | Bank Ocer CreditCard ServicesCredit Cards | Debit/ATM Cards | Merchant Processing | Purchasing Cards | Gi CardsPayroll Cards | Digital Plaorm | Rewards ProgramCapital MarketsInvestment Sales & Consultaon | Safekeeping | Bond Accounng | Treasury ManagementConsulting & Professional ServicesA/L Management | Loan Review | Compliance | BSA/AML Training & TesngH. Gary BlankenshipChairman & CEOBank of the WestGrapevine, TXMicah BolesPresident & CEO First Naonal Bank ofBosque CountyValley Mills, TXJohn D’AngeloPresident & CEO Investar BankBaton Rouge, LA R. Kevin DrewExecuve Vice PresidentChief Lending OcerTIB, N.A. Robert M. FrankoDirectorRoyal Business BankLos Angeles, CAT. Patrick GrayExecuve Vice PresidentChief Card & Technology OcerTIB, N.A.Joe Kim KingChairmanThe Brady Naonal BankBrady, TXDr. Timothy Koch, Ph.D.Emeritus ProfessorCharleston, SCDavid A. LinaburgExecuve Vice PresidentChief Risk OcerTIB, N. A.Sheila MathewsPresident & CEOFour Corners Community BankFarmington, NMFrank E. MorrisChairmanFirst State BankGainesville, TXMichael G. O’RourkePresidentChief Execuve OcerTIB, N.A.Gary OwensPresidentWallis BankHouston, TXVictor PiersonChairman, President & CEOThe Moody Naonal BankGalveston, TXRogers Pope, Jr.Vice Chairman & CEOTexas Bank and Trust Co.Longview, TXDawn Velekei+Execuve Vice PresidentChief Financial OcerTIB, N.A.Chris Furlow +President & CEOTexas Bankers AssociaonAusn, TXChristopher Williston, VI +President & CEOIndependent Bankers Assoc.of TexasAusn, TX+ Advisory DirectorR. Kevin DrewExecutive Vice PresidentChief Lending OcerT. Patrick GrayExecutive Vice PresidentChief Card & Technology OcerDavid A. LinaburgExecutive Vice PresidentChief Risk OcerDawn VelekeiExecutive Vice PresidentChief Financial OcerBeverly TexadaExecutive Vice PresidentSecretary to the BoardTodd J. WentzExecutive Vice PresidentDirector of Capital Markets StrategiesMichael G. O’RourkePresidentChief Executive Ocer”TIB has a long and storied history of supporting America’s community banks. As we all know, community banks are vital to the local economy, supporting small businesses and investing in community development. TIB and our community bank partners create a sense of true security by providing a stable presence within the nancial services landscape. I am proud to be a part of this organization – one that lls a vital role for my bank and every other community bank. Together, TIB and community banks are making a dierence.— VICTOR PIERSONChairman, President & CEO | The Moody National Bank, Galveston, TexasChairman, TIB, N.A.
FINANCIAL HIGHLIGHTSFINANCIAL HIGHLIGHTSAs of 12/31/24As of 12/31/24TIB REVENUE SOURCESNet Interest Income Noninterest Income 60.5%NoninterestIncome39.5%Net InterestIncome$62,026$95,1092024ANNUALREPORTYOUR TRUSTED PARTNERFLYWHEEL TO FORTRESS11701 Luna Road | Farmers Branch, TX 75234 | 800.288.4842Diana Fisher, our dear friend and TIB Family Member, passed away on Tuesday, December 31, 2024, at the age of 71. She served in our Accounng & Finance Department for over 14 years, unl she rered from TIB in 2023. She will always be missed throughout the bank.Always In Our HeartsLuAnn Walden was among TIB’s earliest employees, having started working at the bank just a few weeks aer our doors opened in 1982. She le us all too soon, on January 18, 2025, at the age of 64. In one of the great stories in bank history, she and Lyle Walden, our Director of Informaon Services, found one another here at TIB. They married and enjoyed a long and wonderful marriage unl her recent passing. Moreover, each of their three children have worked for us here at the bank, underscoring what a real “family” TIB truly is. We will miss her ever-present smile and sweet spirit.Our President and CEO, Michael O’Rourke, has a mantra that he repeats often: He wants all of our employees to eventually retire from TIB - meaning that he wants them to be here for as long as they want to be. This year’s group of rerees personify that mantra - and serve as prime examples of the incredible character and leadership you will nd across the TIB Family.Shari Taylor-Nehlebae rst joined TIB in 2001, briey worked for another organizaon, and returned in 2005. She spent her 22-year career with TIB in the Quality Control Department of our Mortgage Division. Shari was an integral part of TIB Mortgage’s ongoing success. Tom Bradford rered aer 18 years as a Business Development Ocer in TIB’s Card Services Division. Tom was exceponal at building relaonships with prospecve partner banks and working with them to help build successful Card Programs. Mindy Freyling spent nearly a decade at TIB, having arrived in 2014. She rered as Director of Compliance Consulng, having served the crical compliance and training needs of TIB’s community bank partners.Jorja Morgan rered aer overseeing TIB’s considerable Safekeeping operaons for more than 20 years. During her tenure, the par value of TIB’s Safekeeping reached $50 billion and served community banks across 25 states.Deb Nelson spent 22 years with TIB as a Senior Relaonship Ocer, working closely with our partner banks to solve their correspondent needs and just being a friend. Deb was beloved by her customers and was crical to TIB’s success throughout the western United States.RETIREMENTSTIB.bankFLYWHEEL TO FORTRESSHISTORICAL (1982-2024)REVENUE SHARING VS. NET INCOME (000s)$600,000$500,000$400,000$300,000$553,350$481,099REVENUE SHARING NET INCOME2024 $6,014 814,436 77,686 134,142 2,011 1,803,193 118,202 $2,955,684 $2,433,418 122,460 13,457 $2,569,335 $7,000 106,027 282,500 (9,178)$386,349 $2,955,684 2024 $62,026 1,432 95,109 105,283 50,420 9,361 $41,059 2023 $31,990 752,329 101,255 351,107 3,148 1,576,918 124,596 $2,941,343 $2,194,767 341,770 58,444 $2,594,981 $7,000 106,027 254,441 (21,106)$346,362 $2,941,343 2023 $46,905 (640) 117,405 115,126 49,824 9,455 $40,369 CONDENSED BALANCE SHEETS*(000s)AssetsCash and cash equivalentsInterest-bearing depositsFed funds soldAvailable-for-sale securiesLoans held for saleLoans receivable Other assetsTotal Assets LIABILITIES AND SHAREHOLDERS’ EQUITYLiabiliesDeposits Short term borrowingsOther liabiliesTotal LiabiliesShareholders’ EquityCommon stockAddional paid-in capitalRetained earningsAccumulated othercomprehensive income (loss)Total Shareholders’ EquityTotal Liabilies and Shareholders’ EquityCONDENSED INCOME STATEMENTS*Net interest incomeProvision for loan lossesNoninterest incomeNoninterest expenseIncome before income taxesProvision for income taxesNet Income*BASED ON CALL REPORT2024 HIGHLIGHTS• Record Shared Revenue of Over $33 Million• Record Capital of Over $386 Million• Record Dividends of $7.25 Million• Record Net Income of $41 Million• Named to American Banker’s “Best Banks to Work For” List for the 7th Straight Year• A Record 7,500+ Merchants on TIB’s Naonwide Merchant Processing Program• Card Services Delivered a New Digital Applicaon System for Partner Banks, Resulng in a 200% Increase in Applicaon Volume for Our Client Banks• The Bank CEO Network Now Serves Nearly 170 Banks and Over 240 Banking Execuves Across 27 States
FINANCIAL HIGHLIGHTSFINANCIAL HIGHLIGHTSAs of 12/31/24As of 12/31/24TIB REVENUE SOURCESNet Interest Income Noninterest Income 60.5%NoninterestIncome39.5%Net InterestIncome$62,026$95,1092024ANNUALREPORTYOUR TRUSTED PARTNERFLYWHEEL TO FORTRESS11701 Luna Road | Farmers Branch, TX 75234 | 800.288.4842Diana Fisher, our dear friend and TIB Family Member, passed away on Tuesday, December 31, 2024, at the age of 71. She served in our Accounng & Finance Department for over 14 years, unl she rered from TIB in 2023. She will always be missed throughout the bank.Always In Our HeartsLuAnn Walden was among TIB’s earliest employees, having started working at the bank just a few weeks aer our doors opened in 1982. She le us all too soon, on January 18, 2025, at the age of 64. In one of the great stories in bank history, she and Lyle Walden, our Director of Informaon Services, found one another here at TIB. They married and enjoyed a long and wonderful marriage unl her recent passing. Moreover, each of their three children have worked for us here at the bank, underscoring what a real “family” TIB truly is. We will miss her ever-present smile and sweet spirit.Our President and CEO, Michael O’Rourke, has a mantra that he repeats often: He wants all of our employees to eventually retire from TIB - meaning that he wants them to be here for as long as they want to be. This year’s group of rerees personify that mantra - and serve as prime examples of the incredible character and leadership you will nd across the TIB Family.Shari Taylor-Nehlebae rst joined TIB in 2001, briey worked for another organizaon, and returned in 2005. She spent her 22-year career with TIB in the Quality Control Department of our Mortgage Division. Shari was an integral part of TIB Mortgage’s ongoing success. Tom Bradford rered aer 18 years as a Business Development Ocer in TIB’s Card Services Division. Tom was exceponal at building relaonships with prospecve partner banks and working with them to help build successful Card Programs. Mindy Freyling spent nearly a decade at TIB, having arrived in 2014. She rered as Director of Compliance Consulng, having served the crical compliance and training needs of TIB’s community bank partners.Jorja Morgan rered aer overseeing TIB’s considerable Safekeeping operaons for more than 20 years. During her tenure, the par value of TIB’s Safekeeping reached $50 billion and served community banks across 25 states.Deb Nelson spent 22 years with TIB as a Senior Relaonship Ocer, working closely with our partner banks to solve their correspondent needs and just being a friend. Deb was beloved by her customers and was crical to TIB’s success throughout the western United States.RETIREMENTSTIB.bankFLYWHEEL TO FORTRESSHISTORICAL (1982-2024)REVENUE SHARING VS. NET INCOME (000s)$600,000$500,000$400,000$300,000$553,350$481,099REVENUE SHARING NET INCOME2024 $6,014 814,436 77,686 134,142 2,011 1,803,193 118,202 $2,955,684 $2,433,418 122,460 13,457 $2,569,335 $7,000 106,027 282,500 (9,178)$386,349 $2,955,684 2024 $62,026 1,432 95,109 105,283 50,420 9,361 $41,059 2023 $31,990 752,329 101,255 351,107 3,148 1,576,918 124,596 $2,941,343 $2,194,767 341,770 58,444 $2,594,981 $7,000 106,027 254,441 (21,106)$346,362 $2,941,343 2023 $46,905 (640) 117,405 115,126 49,824 9,455 $40,369 CONDENSED BALANCE SHEETS*(000s)AssetsCash and cash equivalentsInterest-bearing depositsFed funds soldAvailable-for-sale securiesLoans held for saleLoans receivable Other assetsTotal Assets LIABILITIES AND SHAREHOLDERS’ EQUITYLiabiliesDeposits Short term borrowingsOther liabiliesTotal LiabiliesShareholders’ EquityCommon stockAddional paid-in capitalRetained earningsAccumulated othercomprehensive income (loss)Total Shareholders’ EquityTotal Liabilies and Shareholders’ EquityCONDENSED INCOME STATEMENTS*Net interest incomeProvision for loan lossesNoninterest incomeNoninterest expenseIncome before income taxesProvision for income taxesNet Income*BASED ON CALL REPORT2024 HIGHLIGHTS• Record Shared Revenue of Over $33 Million• Record Capital of Over $386 Million• Record Dividends of $7.25 Million• Record Net Income of $41 Million• Named to American Banker’s “Best Banks to Work For” List for the 7th Straight Year• A Record 7,500+ Merchants on TIB’s Naonwide Merchant Processing Program• Card Services Delivered a New Digital Applicaon System for Partner Banks, Resulng in a 200% Increase in Applicaon Volume for Our Client Banks• The Bank CEO Network Now Serves Nearly 170 Banks and Over 240 Banking Execuves Across 27 States