UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
| For the Quarterly Period Ended | Commission File Number | |
| MARCH 31, 2003 | 000-21329 |
| TIB FINANCIAL CORP |
| (Exact name of registrant as specified in its charter) |
| FLORIDA | 65-0655973 | |
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| (State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
| 99451 OVERSEAS HIGHWAY, KEY LARGO, FLORIDA 33037-7808 (Address of principal executive offices) (Zip Code) |
Registrant’s telephone number, including area code: 305-451-4660
| Not Applicable |
| (Former name, former address and former fiscal year, if changed since last report) |
Check whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the issuer was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X or No
Indicate by check mark whether the issuer is an accelerated filer (as defined in Rule 12b-2 of the Act). Yes or No X
Indicate the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date:
| Common Stock, $0.10 Par Value | 4,116,325 | |
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| Class | Outstanding as of May 1, 2003 |
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
TIB FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
| March 31, 2003 | December 31, 2002 | |||||||||
| (Unaudited) | ||||||||||
ASSETS |
||||||||||
Cash and due from banks |
$ | 19,599,507 | $ | 18,397,659 | ||||||
Federal funds sold |
47,488,000 | 5,672,000 | ||||||||
Investment securities available for sale |
52,514,286 | 55,753,890 | ||||||||
Loans, net of deferred loan costs and fees |
459,176,975 | 442,527,934 | ||||||||
Less: allowance for loan losses |
4,513,397 | 4,416,499 | ||||||||
Loans, net |
454,663,578 | 438,111,435 | ||||||||
Premises and equipment, net |
19,910,400 | 19,457,150 | ||||||||
Goodwill |
2,234,024 | 2,234,024 | ||||||||
Intangible assets, net |
1,905,901 | 1,978,918 | ||||||||
Other assets |
23,206,474 | 25,399,570 | ||||||||
TOTAL ASSETS |
$ | 621,522,170 | $ | 567,004,646 | ||||||
LIABILITIES |
||||||||||
Deposits: |
||||||||||
Noninterest-bearing demand |
$ | 120,379,914 | $ | 105,199,483 | ||||||
Interest-bearing demand and money market |
192,004,960 | 186,426,703 | ||||||||
Savings |
33,270,463 | 31,440,801 | ||||||||
Time deposits of $100,000 or more |
93,365,421 | 73,509,232 | ||||||||
Other time deposits |
106,988,522 | 86,107,232 | ||||||||
Total Deposits |
546,009,280 | 482,683,451 | ||||||||
Federal Home Loan Bank advances |
10,000,000 | 20,000,000 | ||||||||
Short-term borrowings |
5,004,201 | 4,578,959 | ||||||||
Notes payable |
5,250,000 | 5,250,000 | ||||||||
Trust preferred securities |
13,000,000 | 13,000,000 | ||||||||
Other liabilities |
7,502,885 | 7,986,159 | ||||||||
TOTAL LIABILITIES |
586,766,366 | 533,498,569 | ||||||||
STOCKHOLDERS’ EQUITY |
||||||||||
Common stock — $.10 par value: 7,500,000 shares
authorized, 4,114,425 and 4,035,625 shares
issued |
411,443 | 403,563 | ||||||||
Additional paid in capital |
9,413,981 | 8,965,816 | ||||||||
Retained earnings |
23,758,380 | 23,021,698 | ||||||||
Accumulated other comprehensive income |
1,172,000 | 1,115,000 | ||||||||
TOTAL STOCKHOLDERS’ EQUITY |
34,755,804 | 33,506,077 | ||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY |
$ | 621,522,170 | $ | 567,004,646 | ||||||
(See notes to consolidated financial statements)
1
TIB FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
| Three months ended | ||||||||||
| March 31, | ||||||||||
| 2003 | 2002 | |||||||||
INTEREST INCOME |
||||||||||
Loans, including fees |
$ | 7,578,275 | $ | 6,637,969 | ||||||
Investment securities: |
||||||||||
U.S. Treasury securities |
1,889 | 40,783 | ||||||||
U.S. Government agencies and corporations |
526,960 | 589,809 | ||||||||
States and political subdivisions, tax-exempt |
61,326 | 66,868 | ||||||||
States and political subdivisions, taxable |
62,977 | 77,865 | ||||||||
Other investments |
16,282 | 67,439 | ||||||||
Interest bearing deposits in other bank |
576 | 1,714 | ||||||||
Federal funds sold |
41,798 | 58,916 | ||||||||
TOTAL INTEREST INCOME |
8,290,083 | 7,541,363 | ||||||||
INTEREST EXPENSE |
||||||||||
Interest-bearing demand and money market |
403,478 | 483,859 | ||||||||
Savings |
47,325 | 52,787 | ||||||||
Time deposits of $100,000 or more |
735,598 | 684,065 | ||||||||
Other time deposits |
793,159 | 850,980 | ||||||||
Long term debt – trust preferred securities |
278,976 | 285,517 | ||||||||
Federal Home Loan Bank advances |
68,947 | 98,771 | ||||||||
Notes payable |
118,618 | 118,618 | ||||||||
Short-term borrowings |
10,762 | 4,879 | ||||||||
TOTAL INTEREST EXPENSE |
2,456,863 | 2,579,476 | ||||||||
NET INTEREST INCOME |
5,833,220 | 4,961,887 | ||||||||
PROVISION FOR LOAN LOSSES |
330,000 | 135,000 | ||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES |
5,503,220 | 4,826,887 | ||||||||
OTHER INCOME |
||||||||||
Service charges on deposit accounts |
572,615 | 532,685 | ||||||||
Investment securities gains, net |
5,337 | 74,284 | ||||||||
Merchant bank card processing income |
1,378,073 | 1,333,336 | ||||||||
Gain on sale of government guaranteed loans |
87,470 | — | ||||||||
Fees on mortgage loans sold |
601,752 | 359,611 | ||||||||
Commissions on sales by Keys Insurance Agency, Inc. |
436,420 | 399,893 | ||||||||
Retail investment services |
86,958 | 89,653 | ||||||||
Other income |
345,796 | 351,914 | ||||||||
TOTAL OTHER INCOME |
3,514,421 | 3,141,376 | ||||||||
OTHER EXPENSE |
||||||||||
Salaries and employee benefits |
3,453,621 | 2,744,329 | ||||||||
Net occupancy expense |
1,082,022 | 963,283 | ||||||||
Other expense |
2,639,429 | 2,423,333 | ||||||||
TOTAL OTHER EXPENSE |
7,175,072 | 6,130,945 | ||||||||
INCOME BEFORE INCOME TAX EXPENSE |
1,842,569 | 1,837,318 | ||||||||
INCOME TAX EXPENSE |
653,300 | 646,400 | ||||||||
NET INCOME |
$ | 1,189,269 | $ | 1,190,918 | ||||||
BASIC EARNINGS PER SHARE: |
$ | 0.29 | $ | 0.30 | ||||||
DILUTED EARNINGS PER SHARE: |
$ | 0.28 | $ | 0.29 | ||||||
(See notes to consolidated financial statements)
2
TIB FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(Unaudited)
| Accumulated | ||||||||||||||||||||||||||
| Other | ||||||||||||||||||||||||||
| Comprehensive | Retained | Comprehensive | Common | Additional Paid in | ||||||||||||||||||||||
| Total | Income | Earnings | Income (Loss) | Stock | Capital | |||||||||||||||||||||
Balance at December 31, 2002 |
$ | 33,506,077 | $ | 23,021,698 | $ | 1,115,000 | $ | 403,563 | $ | 8,965,816 | ||||||||||||||||
Comprehensive Income |
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Net Income |
1,189,269 | $ | 1,189,269 | 1,189,269 | ||||||||||||||||||||||
Other comprehensive income, net of tax
expense of $35,000: |
||||||||||||||||||||||||||
Net market valuation adjustment on
securities available for sale |
60,331 | 60,331 | ||||||||||||||||||||||||
Less: reclassification adjustment
for gains included in net income |
(3,331 | ) | (3,331 | ) | ||||||||||||||||||||||
Other comprehensive income, net of tax |
57,000 | 57,000 | ||||||||||||||||||||||||
Comprehensive income |
$ | 1,246,269 | ||||||||||||||||||||||||
Exercise of stock options |
456,045 | 7,880 | 448,165 | |||||||||||||||||||||||
Cash dividends declared, $.11 per share |
(452,587 | ) | (452,587 | ) | ||||||||||||||||||||||
Balance at March 31, 2003 |
$ | 34,755,804 | $ | 23,758,380 | $ | 1,172,000 | $ | 411,443 | $ | 9,413,981 | ||||||||||||||||
| Accumulated | |||||||||||||||||||||||||||
| Other | |||||||||||||||||||||||||||
| Comprehensive | Retained | Comprehensive | Common | Additional Paid in | |||||||||||||||||||||||
| Total | Income | Earnings | Income (Loss) | Stock | Capital | ||||||||||||||||||||||
Balance at December 31, 2001 |
$ | 28,672,092 | $ | 20,019,145 | $ | 36,400 | $ | 394,610 | $ | 8,221,937 | |||||||||||||||||
Comprehensive Income |
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Net Income |
1,190,918 | $ | 1,190,918 | 1,190,918 | |||||||||||||||||||||||
Other comprehensive income, net of tax
benefit of $104,900: |
|||||||||||||||||||||||||||
Net market valuation adjustment on
securities available for sale |
(127,047 | ) | (127,047 | ) | |||||||||||||||||||||||
Less: reclassification adjustment
for gains included in net income |
(46,353 | ) | (46,353 | ) | |||||||||||||||||||||||
Other comprehensive income, net of tax |
(173,400 | ) | (173,400 | ) | |||||||||||||||||||||||
Comprehensive income |
$ | 1,017,518 | |||||||||||||||||||||||||
Exercise of stock options |
211,784 | 3,080 | 208,704 | ||||||||||||||||||||||||
Cash dividends declared, $.1075 per share |
(427,516 | ) | (427,516 | ) | |||||||||||||||||||||||
Balance at March 31, 2002 |
$ | 29,473,878 | $ | 20,782,547 | $ | (137,000 | ) | $ | 397,690 | $ | 8,430,641 | ||||||||||||||||
3
TIB FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(Unaudited)
| For the three month period ended | |||||||||||||
| March 31, | |||||||||||||
| 2003 | 2002 | ||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES |
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Net Income |
$ | 1,189,269 | $ | 1,190,918 | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||||||||
Net amortization of investments |
14,959 | 14,262 | |||||||||||
Amortization of intangible assets |
73,017 | 73,973 | |||||||||||
Depreciation of premises and equipment |
422,842 | 382,082 | |||||||||||
Provision for loan losses |
330,000 | 135,000 | |||||||||||
Deferred income tax provision (benefit) |
(11,717 | ) | (138,535 | ) | |||||||||
Deferred net loan fees/costs |
(35,434 | ) | (39,194 | ) | |||||||||
Investment securities (gains), net |
(5,337 | ) | (74,284 | ) | |||||||||
Net gain on sale/disposal of premises and equipment |
(726 | ) | (891 | ) | |||||||||
Gain on sales of government guaranteed loans, net |
(87,470 | ) | — | ||||||||||
Gain on sale of servicing rights |
— | (477 | ) | ||||||||||
Net proceeds received from servicing rights sale |
— | 36,088 | |||||||||||
Decrease in other assets |
2,169,813 | 1,458,517 | |||||||||||
(Decrease)/increase in other liabilities |
(491,943 | ) | 135,974 | ||||||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES |
3,567,273 | ||||||||||||