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 SEPTEMBER 30, 2003		Commission File Number 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			4,412,778

Class			Outstanding as of November 3, 2003

TABLE OF CONTENTS


Part I. FINANCIAL INFORMATION
	Item 1. 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 5. OTHER INFORMATION
	Item 6. EXHIBITS AND REPORTS ON FORM 8-K
SIGNATURES
EX-31.1 Section 302 Certification of CEO
EX-31.2 Section 302 Certification of CFO
EX-32.1 Section 906 Certification of CEO
EX-32.2 Section 906 Certification of CFO
EX-99.1 Report of Independent Accountants

Part I. FINANCIAL INFORMATION

Item 1. Financial Statements

TIB FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS


			September 30, 2003		December 31, 2002

			(Unaudited)
ASSETS
Cash and due from banks			$	16,515,191	$	18,397,659
Federal funds sold				9,852,000		5,672,000
Investment securities available for sale				64,890,631		54,267,830
Loans, net of deferred loan costs and fees				512,076,093		442,527,934
Less: allowance for loan losses				4,854,919		4,272,499

	Loans, net			507,221,174		438,255,435
Premises and equipment, net				20,974,167		19,457,150
Goodwill				155,232		2,234,024
Intangible assets, net				1,760,047		1,978,918
Accrued interest receivable and other assets				24,529,837		26,885,630

	TOTAL ASSETS		$	645,898,279	$	567,148,646

LIABILITIES
Deposits:
	Noninterest-bearing demand		$	114,166,811	$	105,199,483
	Interest-bearing demand and money market			188,082,579		186,426,703
	Savings			38,083,078		31,440,801
	Time deposits of $100,000 or more			95,109,597		73,509,232
	Other time deposits			107,441,053		86,107,232

		Total Deposits		542,883,118		482,683,451
Federal Home Loan Bank advances				35,000,000		20,000,000
Short-term borrowings				3,072,256		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				6,728,953		8,130,159

	TOTAL LIABILITIES			605,934,327		533,642,569

STOCKHOLDERS’ EQUITY
Common stock — $.10 par value: 7,500,000 shares authorized, 4,408,078 and 4,035,625 shares issued				440,808		403,563
Additional paid in capital				13,849,087		8,965,816
Retained earnings				25,237,057		23,021,698
Accumulated other comprehensive income				437,000		1,115,000

		TOTAL STOCKHOLDERS’ EQUITY		39,963,952		33,506,077

	TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$	645,898,279	$	567,148,646

(See notes to consolidated financial statements)

TIB FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)


			Three months ended				Nine months ended
			September 30,				September 30,

			2003		2002		2003		2002

INTEREST INCOME
Loans, including fees			$	7,973,693	$	7,002,674	$	23,249,944	$	20,421,818
Investment securities:
		U.S. Treasury securities		1,909		40,160		5,708		122,119
		U.S. Government agencies and corporations		576,585		542,842		1,545,653		1,759,617
		States and political subdivisions, tax-exempt		91,930		65,705		236,154		198,657
		States and political subdivisions, taxable		59,554		106,498		184,350		282,759
		Other investments		—		—		—		46,447
Interest bearing deposits in other bank				797		1,026		1,743		4,094
Federal Home Loan Bank Stock				9,902		19,849		39,985		60,750
Federal funds sold				34,001		116,796		227,313		267,854

	TOTAL INTEREST INCOME			8,748,371		7,895,550		25,490,850		23,164,115

INTEREST EXPENSE
Interest-bearing demand and money market				275,212		559,213		1,061,250		1,530,117
Savings				35,631		59,167		133,512		170,266
Time deposits of $100,000 or more				814,924		688,476		2,373,504		2,028,955
Other time deposits				826,629		831,951		2,488,058		2,498,307
Long term debt – trust preferred securities				276,440		285,062		832,969		855,628
Federal Home Loan Bank advances				44,116		95,372		146,124		293,840
Notes payable				121,243		121,243		359,792		359,792
Short-term borrowings				8,842		16,445		29,577		28,971

	TOTAL INTEREST EXPENSE			2,403,037		2,656,929		7,424,786		7,765,876

	NET INTEREST INCOME			6,345,334		5,238,621		18,066,064		15,398,239
PROVISION FOR LOAN LOSSES				447,000		103,000		1,035,000		369,000

	NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES			5,898,334		5,135,621		17,031,064		15,029,239
NON-INTEREST INCOME
Service charges on deposit accounts				631,536		547,556		1,789,725		1,625,138
Investment securities gains, net				3,152		5,118		8,489		143,245
Merchant bankcard processing income				1,213,195		961,952		3,812,093		3,421,796
Gain on sale of government guaranteed loans				—		—		87,470		23,179
Fees on mortgage loans sold				589,398		404,985		1,800,038		1,078,363
Retail investment services				112,361		36,862		298,612		168,281
Gain on sale of investment in ERAS Joint Venture (Note 2)				—		—		202,393		—
Other income				347,489		345,323		1,064,500		1,037,993

	TOTAL NON-INTEREST INCOME			2,897,131		2,301,796		9,063,320		7,497,995
NON-INTEREST EXPENSE
Salaries and employee benefits				3,270,788		2,646,168		9,511,590		7,699,338
Net occupancy expense				1,088,344		945,390		3,196,877		2,738,840
Other expense				2,681,062		2,148,440		7,983,336		7,006,566

	TOTAL NON-INTEREST EXPENSE			7,040,194		5,739,998		20,691,803		17,444,744

	INCOME BEFORE INCOME TAX EXPENSE			1,755,271		1,697,419		5,402,581		5,082,490
INCOME TAX EXPENSE				614,800		529,130		1,890,100		1,709,230

	INCOME FROM CONTINUING OPERATIONS		$	1,140,471	$	1,168,289	$	3,512,481	$	3,373,260

TIB FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)


		Three months ended				Nine months ended
		September 30,				September 30,

		2003		2002		2003		2002

DISCONTINUED OPERATIONS
	Income from Keys Insurance Agency, Inc. operations		35,974		84,239		200,587		224,452
	Income Tax Expense		13,500		31,870		75,400		84,570

INCOME FROM DISCONTINUED OPERATIONS			22,474		52,369		125,187		139,882

NET INCOME		$	1,162,945	$	1,220,658	$	3,637,668	$	3,513,142

BASIC EARNINGS PER SHARE:
	Continuing Operations	$	0.26	$	0.29	$	0.84	$	0.85
	Discontinued Operations		0.00		0.01		0.03		0.03

	Basic earnings per share	$	0.26	$	0.30	$	0.87	$	0.88

DILUTED EARNINGS PER SHARE:
	Continuing Operations	$	0.25	$	0.28	$	0.80	$	0.82
	Discontinued Operations		0.00		0.01		0.03		0.03

	Diluted earnings per share	$	0.25	$	0.29	$	0.83	$	0.85

(See notes to consolidated financial statements)

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


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

Balance at June 30, 2003			$	40,353,779					$	24,559,001		$	1,511,000		$	440,758	$	13,843,020
Comprehensive Income
	Net Income			1,162,945		$	1,162,945			1,162,945
	Other comprehensive income, net of tax benefit of $647,000:
		Net market valuation adjustment on securities available for sale		(1,072,034	)		(1,072,034	)
		Less : reclassification adjustment for gains included in net income		(1,966	)		(1,966	)

	Other comprehensive income, net of tax						(1,074,000	)					(1,074,000	)

	Comprehensive income					$	88,945

Exercise of stock options				6,776												50		6,726
Private Placement of 280,653 common shares				(659	)													(659	)
Cash dividends declared, $.11 per share				(484,889	)					(484,889	)

Balance at September 30, 2003			$	39,963,952

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