TIB FINANCIAL CORP - 10-Q Quarterly Report

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
JUNE 30, 2003		000-21329

TIB FINANCIAL CORP.

(Exact name of registrant as specified in its charter)


FLORIDA		65-0655973

(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		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			4,408,078

Class			Outstanding as of August 1, 2003

TABLE OF CONTENTS


Part I. FINANCIAL INFORMATION
	Item 1. Financial Statements
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
	Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
	Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
	Item 4. CONTROLS AND PROCEDURES
Part II. OTHER INFORMATION
	Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
	Item 6. EXHIBITS AND REPORTS ON FORM 8-K
SIGNATURES
EX-31.1 Section 302 CEO Certification
EX-31.2 Section 302 CFO Certification
Ex-32.1 Section 906 CEO Certification
Ex-32.2 Section 906 CFO Certification
Ex-99.1 Independent Auditors' Report

Part I. FINANCIAL INFORMATION

Item 1. Financial Statements

TIB FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS


			June 30, 2003		December 31, 2002

			(Unaudited)
ASSETS
Cash and due from banks			$	20,579,417	$	18,397,659
Federal funds sold				45,884,000		5,672,000
Investment securities available for sale				47,395,911		54,267,830
Loans, net of deferred loan costs and fees				474,404,421		442,527,934
Less: allowance for loan losses				4,554,539		4,272,499

	Loans, net			469,849,882		438,255,435
Premises and equipment, net				21,031,358		19,457,150
Goodwill				2,165,443		2,234,024
Intangible assets, net				1,832,982		1,978,918
Accrued interest receivable and other assets				24,463,898		26,885,630

	TOTAL ASSETS		$	633,202,891	$	567,148,646

LIABILITIES
Deposits:
	Noninterest-bearing demand		$	120,233,181	$	105,199,483
	Interest-bearing demand and money market			186,857,609		186,426,703
	Savings			35,536,704		31,440,801
	Time deposits of $100,000 or more			100,483,994		73,509,232
	Other time deposits			109,738,103		86,107,232

		Total Deposits		552,849,591		482,683,451
Federal Home Loan Bank advances				10,000,000		20,000,000
Short-term borrowings				5,254,988		4,578,959
Notes payable				5,250,000		5,250,000
Trust preferred securities				13,000,000		13,000,000
Accrued interest payable and other liabilities				6,494,533		8,130,159

	TOTAL LIABILITIES			592,849,112		533,642,569

STOCKHOLDERS’ EQUITY
Common stock - $.10 par value: 7,500,000 shares authorized, 4,407,578 and 4,035,625 shares issued				440,758		403,563
Additional paid in capital				13,843,020		8,965,816
Retained earnings				24,559,001		23,021,698
Accumulated other comprehensive income				1,511,000		1,115,000

		TOTAL STOCKHOLDERS’ EQUITY		40,353,779		33,506,077

	TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$	633,202,891	$	567,148,646

(See notes to consolidated financial statements)

TIB FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)


			Three months ended				Six months ended
			June 30,				June 30,

			2003		2002		2003		2002

INTEREST INCOME
Loans, including fees			$	7,697,976	$	6,781,175	$	15,276,251	$	13,419,144
Investment securities:
		U.S. Treasury securities		1,910		41,176		3,799		81,959
		U.S. Government agencies and corporations		442,108		626,966		969,068		1,216,775
		States and political subdivisions, tax-exempt		82,898		66,084		144,224		132,952
		States and political subdivisions, taxable		61,819		98,396		124,796		176,261
		Other investments		—		—		—		46,447
Interest bearing deposits in other bank				370		1,354		946		3,068
Federal Home Loan Bank Stock				13,801		19,909		30,083		40,901
Federal funds sold				151,514		92,142		193,312		151,058

	TOTAL INTEREST INCOME			8,452,396		7,727,202		16,742,479		15,268,565

INTEREST EXPENSE
Interest-bearing demand and money market				382,560		487,045		786,038		970,904
Savings				50,556		58,312		97,881		111,099
Time deposits of $100,000 or more				822,982		656,414		1,558,580		1,340,479
Other time deposits				868,270		815,376		1,661,429		1,666,356
Long term debt – trust preferred securities				277,553		285,049		556,529		570,566
Federal Home Loan Bank advances				33,061		99,697		102,008		198,468
Notes payable				119,931		119,931		238,549		238,549
Short-term borrowings				9,973		7,647		20,735		12,526

	TOTAL INTEREST EXPENSE			2,564,886		2,529,471		5,021,749		5,108,947

	NET INTEREST INCOME			5,887,510		5,197,731		11,720,730		10,159,618
PROVISION FOR LOAN LOSSES				258,000		129,000		588,000		266,000

	NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES			5,629,510		5,068,731		11,132,730		9,893,618
OTHER INCOME
Service charges on deposit accounts				585,574		544,897		1,158,189		1,077,582
Investment securities gains, net				—		63,843		5,337		138,127
Merchant bank card processing income				1,220,825		1,126,508		2,598,898		2,459,844
Gain on sale of government guaranteed loans				—		23,179		87,470		23,179
Fees on mortgage loans sold				608,888		313,767		1,210,640		673,378
Commissions on sales by Keys Insurance Agency, Inc.				541,398		534,820		977,818		934,713
Retail investment services				99,293		41,766		186,251		131,419
Gain on sale of investment in ERAS Joint Venture (Note 2)				202,393		—		202,393		—
Other income				371,215		340,756		717,011		692,670

	TOTAL OTHER INCOME			3,629,586		2,989,536		7,144,007		6,130,912
OTHER EXPENSE
Salaries and employee benefits				3,379,959		2,874,436		6,833,580		5,618,765
Net occupancy expense				1,141,742		961,852		2,223,764		1,925,135


		Three months ended				Six months ended
		June 30,				June 30,

		2003		2002		2003		2002

Other expense			2,768,041		2,534,013		5,407,470		4,955,346

	TOTAL OTHER EXPENSE		7,289,742		6,370,301		14,464,814		12,499,246

	INCOME BEFORE INCOME TAX EXPENSE		1,969,354		1,687,966		3,811,923		3,525,284
INCOME TAX EXPENSE			683,900		586,400		1,337,200		1,232,800

	NET INCOME	$	1,285,454	$	1,101,566	$	2,474,723	$	2,292,484

BASIC EARNINGS PER SHARE:		$	0.31	$	0.28	$	0.60	$	0.58
DILUTED EARNINGS PER SHARE:		$	0.30	$	0.27	$	0.58	$	0.56

(See notes to consolidated financial statements)

TIB FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(Unaudited)


											Accumulated
											Other
						Comprehensive		Retained			Comprehensive		Common		Additional Paid
			Total			Income		Earnings			Income (Loss)		Stock		in Capital

Balance at March 31, 2003			$	34,755,804				$	23,758,380		$	1,172,000	$	411,443	$	9,413,981
Comprehensive Income
	Net Income			1,285,454		$	1,285,454		1,285,454
	Other comprehensive income, net of tax expense of $204,000:
		Net market valuation adjustment on securities available for sale		339,000			339,000
		Less: reclassification adjustment for gains included in net income					—

	Other comprehensive income, net of tax						339,000					339,000

	Comprehensive income					$	1,624,454

Exercise of stock options				114,291										1,250		113,041
Private Placement of 280,653 common shares				4,344,063										28,065		4,315,998
Cash dividends declared, $.11 per share				(484,833	)				(484,833	)

Balance at June 30, 2003			$	40,353,779				$	24,559,001		$	1,511,000	$	440,758	$	13,843,020


									Accumulated
									Other
					Comprehensive		Retained		Comprehensive			Common		Additional Paid
			Total		Income		Earnings		Income (Loss)			Stock		in Capital

Balance at March 31, 2002			$	29,473,878			$	20,782,547	$	(137,000	)	$	397,690	$	8,430,641
Comprehensive Income
	Net Income			1,101,566	$	1,101,566		1,101,566
	Other comprehensive income, net of tax benefit of $240,200:
		Unrealized holding gain on securities

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents