For the fiscal year ended December 31, | Commission file number 000-21329 |
Florida | ||
(State of Incorporation) | 65-0655973 (I.R.S. Employer Identification No.) | |
599 9th Street North Suite 101 Naples, Florida (Address of Principal Executive Offices) | 34102 (Zip Code) | |
Securities Registered pursuant to Section 12(b) | ||
Securities Registered pursuant to Section 12(g) of the Act: None | ||
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. ¨ Yes or þ No | ||
Check if the issuer is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. ¨ | ||
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. þ Yes or ¨ No | ||
Check if there is no disclosure of delinquent filers pursuant to Item 405 of Regulation S-K contained in this form, and will not be contained, to the best of issuer’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. þ | ||
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. | ||
Large accelerated filer ¨ | Accelerated filer þ | Non-accelerated filer ¨ |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ¨ Yes or þ No | ||
The aggregate market value of the voting stock held by non-affiliates of the registrant as of June 30, 2007 was approximately $164,753,000 based on the $12.85 per share closing price on June 29, 2007. | ||
The number of shares outstanding of issuer’s class of common stock at February 29, 2008 was 12,787,649 shares of common stock. | ||
Documents Incorporated By Reference: Portions of the Proxy Statement for the 2008 Annual Meeting of Shareholders to be filed with the Securities and Exchange Commission within 120 days of the Registrant’s 2007 fiscal year end are incorporated by reference into Parts II and III of this report. |
PART I | Page | |
ITEM 1 | 1 | |
ITEM 1A | 12 | |
ITEM 1B | 19 | |
ITEM 2 | 20 | |
ITEM 3 | 21 | |
ITEM 4 | 21 | |
PART II | ||
ITEM 5 | 21 | |
ITEM 6 | 23 | |
ITEM 7 | 25 | |
ITEM 7A | 50 | |
ITEM 8 | 51 | |
ITEM 9 | 93 | |
ITEM 9A | 93 | |
ITEM 9B | 94 | |
PART III | ||
ITEM 10 | 95 | |
ITEM 11 | 95 | |
ITEM 12 | 95 | |
ITEM 13 | 95 | |
ITEM 14 | 95 | |
PART IV | ||
ITEM 15 | 96 | |
· | Provide customers with access to our local executives who make key credit and account decisions; |
· | Pursue commercial lending opportunities with small to mid-sized businesses which we believe are underserved by our larger competitors; |
· | Continue originating indirect auto dealer loans to diversify our sources of loans and revenue and enhance our net interest margin and generate attractive risk adjusted returns; |
· | Cross-sell our products and services to our existing customers to leverage our relationships and enhance profitability; and |
· | Adhere to safe and sound credit standards to maintain the continued quality of assets as we implement our growth strategy. |
(Dollars in thousands) | Total Loans December 31, 2007 | % of Total Loans | Total Loans December 31, 2006 | % of Total Loans | % Increase (Decrease) from December 31, 2006 to 2007 | |||||||||||||||
Real estate mortgage loans: | ||||||||||||||||||||
Commercial | $ | 612,084 | 54 | % | $ | 546,276 | 51 | % | 12 | % | ||||||||||
Residential | 112,138 | 10 | % | 82,243 | 8 | % | 36 | % | ||||||||||||
Farmland | 11,361 | 1 | % | 24,210 | 2 | % | (53 | %) | ||||||||||||
Construction and vacant land | 168,595 | 15 | % | 157,672 | 15 | % | 7 | % | ||||||||||||
Commercial and agricultural loans | 72,076 | 6 | % | 84,905 | 8 | % | (15 | %) | ||||||||||||
Indirect auto dealer loans | 117,439 | 11 | % | 141,552 | 13 | % | (17 | %) | ||||||||||||
Home equity loans | 21,820 | 2 | % | 17,199 | 2 | % | 27 | % | ||||||||||||
Other consumer loans | 12,154 | 1 | % | 9,795 | 1 | % | 24 | % | ||||||||||||
Total | $ | 1,127,667 | 100.0 | % | $ | 1,063,852 | 100.0 | % | 6 | % | ||||||||||
· | Business with a limited number of dealers - The dealerships we do business with are characterized by being very sound financially and trade predominately in vehicles which retain market value reasonably well over time. We continually monitor dealers for compliance with our lending guidelines. We endeavor to be one of the main buyers of loans from every dealer we do business with which allows us to have a cooperative relationship with that dealer. |
· | Thorough underwriting of applicants - We evaluate credit scores and other pertinent information such as the stability of the applicant's job, home ownership, and the nature of any credit issues which may give us a better indication of creditworthiness than just the credit score. |
· | Effective collections - We get to customers quickly and more often as payment issues arise. We begin contacting the customer once their payment is 10 days past due. After an account is 15 days past due, it is referred to a collection company for resolution including field contacts as necessary. |
· | The creation of an independent accounting oversight board to oversee the audit of public companies and auditors who perform such audits; |
· | Auditor independence provisions which restrict non-audit services that independent accountants may provide to their audit clients; |
· | Additional corporate governance and responsibility measures which (a) require the chief executive officer and chief financial officer to certify financial statements and to forfeit salary and bonuses in certain situations, and (b) protect whistleblowers and informants; |
· | Expansion of the authority and responsibilities of the company’s audit, nominating and compensation committees; |
· | Mandatory disclosure by analysts of potential conflicts of interest; and |
· | Enhanced penalties for fraud and other violations. |
· | the time and costs associated with identifying and evaluating potential acquisitions and merger partners; |
· | the estimates and judgments used to evaluate credit, operations, management and market risks with respect to the target institution may not be accurate; |
· | the time and costs of evaluating new markets, hiring experienced local management and opening new offices, and the time lags between these activities and the generation of sufficient assets and deposits to support the costs of the expansion; |
· | our ability to finance an acquisition and possible dilution to our existing shareholders; |
· | the diversion of our management’s attention to the negotiation of a transaction, and the integration of the operations and personnel of the combining businesses; |
· | entry into new markets where we lack experience; |
· | the introduction of new products and services into our business; |
· | the incurrence and possible impairment of goodwill associated with an acquisition and possible adverse short-term effects on our results of operations; and |
· | the risk of loss of key employees and customers. |
Address | Location | Purpose | Owned/ Leased |
30400 Overseas Highway | Big Pine Key | Branch | Owned |
8100 Health Center Boulevard | Bonita Springs | Branch and Office Space | Leased |
12205 Metro Parkway | Fort Myers | Branch | Owned |
12195 Metro Parkway | Fort Myers | Indirect lending | Leased |
600 North Homestead Boulevard | Homestead | Branch | Owned |
777 North Krome Avenue | Homestead | Branch | Owned |
632 Washington Avenue | Homestead | Office Space | Leased |
28 N.E. 18 Street | Homestead | Office Space | Owned |
80900 Overseas Highway | Islamorada | Branch and Office Space | Owned |
99451 Overseas Highway | Key Largo | Branch and Office Space | Owned |
103330 Overseas Highway | Key Largo | Branch | Owned |
330 Whitehead Street | Key West | Branch | Owned |
3618 North Roosevelt Boulevard | Key West | Branch | Owned |
2348 Overseas Highway | Marathon | Branch | Owned |
11401 Overseas Highway | Marathon Shores | Branch | Owned |
6435 Naples Boulevard | Naples | TIB Bank HQ, Branch & Office Space | Owned |
3940 Prospect Avenue – Suite 104 & 105 | Naples | Branch and Office Space | Leased |
1720 J & C Boulevard – Suite 1 | Naples | Office Space | Leased |
599 9th Street North – Suite 100 & 101 | Naples | Corporate HQ & Branch | Owned |
599 9th Street North – Suite 201 | Naples | Office space | Owned |
1125 US Highway 27 South | Sebring | Branch | Leased |
91980 Overseas Highway | Tavernier | Branch | Owned |
240 Nokomis Avenue South | Venice | Bank of Venice HQ & Branch | Owned |
1790 East Venice Avenue, Suite 101 | Venice | Branch | Leased |
3479 Precision Drive, Suite 118 | Venice | Branch | Leased |
2007 | 2006 | |||||||||||||||
(Quarter Ended) | High | Low | High | Low | ||||||||||||
March 31 | $ | 18.21 | $ | 14.67 | $ | 16.18 | $ | 14.75 | ||||||||
June 30 | 15.00 | 12.77 | 16.25 | 14.44 | ||||||||||||
September 30 | 13.34 | 10.38 | 16.20 | 15.64 | ||||||||||||
December 31 | 11.17 | 6.73 | 18.44 | 15.84 | ||||||||||||
Issuer Purchases of Equity Securities | ||||||||||||||||
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs | ||||||||||||
400,000 | ||||||||||||||||
November 1 – 30, 2007 | 50,700 | $ | 8.06 | 50,700 | 349,300 | |||||||||||
December 1 – 31, 2007 | 18,500 | 8.68 | 18,500 | 330,800 | ||||||||||||
Total | 69,200 | $ | 8.23 | 69,200 | 330,800 | |||||||||||
Period Ending | ||||||||||||||||||||||||
Index | 12/31/02 | 12/31/03 | 12/31/04 | 12/31/05 | 12/31/06 | 12/31/07 | ||||||||||||||||||
TIB Financial Corp. | 100.00 | 153.23 | 168.19 | 215.44 | 239.08 | 118.95 | ||||||||||||||||||
NASDAQ Composite | 100.00 | 150.01 | 162.89 | 165.13 | 180.85 | 198.60 | ||||||||||||||||||
SNL Southeast Bank Index | 100.00 | 125.58 | 148.92 | 152.44 | 178.75 | 134.65 |
(Dollars in thousands) | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||
Total assets | $ | 1,444,739 | $ | 1,319,093 | $ | 1,076,070 | $ | 829,325 | $ | 669,298 | ||||||||||
Investment securities | 160,357 | 131,199 | 97,464 | 77,807 | 52,557 | |||||||||||||||
Total loans | 1,127,667 | 1,063,852 | 882,372 | 653,521 | 538,598 | |||||||||||||||
Allowance for loan losses | 14,973 | 9,581 | 7,546 | 6,243 | 5,216 | |||||||||||||||
Deposits | 1,049,958 | 1,029,457 | 920,424 | 687,859 | 553,813 | |||||||||||||||
Shareholders’ equity | 96,240 | 85,862 | 77,524 | 68,114 | 41,246 | |||||||||||||||
(Dollars in thousands) | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||
Interest and dividend income | $ | 94,741 | $ | 85,234 | $ | 59,434 | $ | 40,916 | $ | 34,606 | ||||||||||
Interest expense | 48,721 | 38,171 | 20,304 | 10,730 | 9,839 | |||||||||||||||
Net interest income | 46,020 | 47,063 | 39,130 | 30,186 | 24,767 | |||||||||||||||
Provision for loan losses | 9,657 | 3,491 | 2,413 | 2,455 | 1,586 | |||||||||||||||
Net interest income after provision for loan losses | 36,363 | 43,572 | 36,717 | 27,731 | 23,181 | |||||||||||||||
Non-interest income * | 1,362 | 6,275 | 6,258 | 6,306 | 7,084 | |||||||||||||||
Non-interest expense | (41,921 | ) | (35,833 | ) | (31,856 | ) | (27,057 | ) | (23,541 | ) | ||||||||||
Income tax (expense) benefit | 1,775 | (5,021 | ) | (3,927 | ) | (2,337 | ) | (2,324 | ) | |||||||||||
Income (loss) from continuing operations | (2,421 | ) | 8,993 | 7,192 | 4,643 | 4,400 | ||||||||||||||
Income from discontinued operations, net of taxes | - | 254 | 4,632 | 555 | 702 | |||||||||||||||
Net income (loss) | $ | (2,421 | ) | $ | 9,247 | $ | 11,824 | $ | 5,198 | $ | 5,102 | |||||||||
* | Non-interest income during 2007 includes a charge of $5.7 million related to the other than temporary impairment of investment securities as discussed in more detail in the "Investment Portfolio” section of management’s discussion and analysis. |
2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
Book value per share at year end * | $ | 7.53 | $ | 7.33 | $ | 6.69 | $ | 6.00 | $ | 4.65 | ||||||||||
Basic earnings (loss) per share from continuing operations | $ | (0.20 | ) | $ | 0.78 | $ | 0.63 | $ | 0.44 | $ | 0.52 | |||||||||
Basic earnings per share from discontinued operations | - | 0.02 | 0.41 | 0.05 | 0.08 | |||||||||||||||
Basic earnings (loss) per share | $ | (0.20 | ) | $ | 0.80 | $ | 1.04 | $ | 0.49 | $ | 0.60 | |||||||||
Diluted earnings (loss) per share from continuing operations | $ | (0.20 | ) | $ | 0.76 | $ | 0.61 | $ | 0.42 | $ | 0.50 | |||||||||
Diluted earnings per share from discontinued operations | - | 0.02 | 0.39 | 0.05 | 0.08 | |||||||||||||||
Diluted earnings (loss) per share | $ | (0.20 | ) | $ | 0.78 | $ | 1.00 | $ | 0.47 | $ | 0.58 | |||||||||
Basic weighted average common equivalent shares outstanding | 12,299,093 | 11,609,394 | 11,423,948 | 10,619,720 | 8,514,448 | |||||||||||||||
Diluted weighted average common equivalent shares outstanding | 12,299,093 | 11,889,606 | 11,800,892 | 10,959,392 | 8,871,722 | |||||||||||||||
Dividends declared per share | $ | 0.2425 | $ | 0.2363 | $ | 0.2313 | $ | 0.2263 | $ | 0.2213 | ||||||||||
* | Calculation includes unvested shares of restricted stock. |
2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
Return (loss) on average assets** | (0.18 | )% | 0.74 | % | 0.74 | % | 0.63 | % | 0.71 | % | ||||||||||
Return (loss) on average equity** | (2.52 | )% | 11.05 | % | 10.19 | % | 7.83 | % | 11.69 | % | ||||||||||
Average equity/average assets | 6.99 | % | 6.72 | % | 7.26 | % | 8.01 | % | 6.05 | % | ||||||||||
Net interest margin | 3.60 | % | 4.18 | % | 4.38 | % | 4.51 | % | 4.43 | % | ||||||||||
Dividend payout ratio *** | (123.19 | )% | 30.50 | % | 36.74 | % | 51.76 | % | 42.82 | % | ||||||||||
Allowance for loan losses/total loans | 1.33 | % | 0.90 | % | 0.86 | % | 0.96 | % | 0.97 | % | ||||||||||
Non-performing assets/total assets | 1.88 | % | 0.69 | % | 0.46 | % | 0.60 | % | 0.55 | % | ||||||||||
Non-performing loans/total loans | 1.43 | % | 0.40 | % | 0.11 | % | 0.11 | % | 0.07 | % | ||||||||||
Allowance for loan losses/non-performing loans | 93.08 | % | 226.88 | % | 789.33 | % | 886.79 | % | 1,336.33 | % | ||||||||||
Non-interest expense/tax equivalent net interest income and non-interest income from continuing operations | 87.86 | % | 66.75 | % | 69.69 | % | 73.48 | % | 73.44 | % | ||||||||||
** | The computation of return on average assets and return on average equity is based on net income from continuing operations. |
*** | The computation of the dividend payout ratio is based on net income (loss) from continuing operations. |
2007 | 2006 | 2005 | ||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Average Balances | Income/ Expense | Yields/ Rates | Average Balances | Income/ Expense | Yields/ Rates | Average Balances | Income/ Expense | Yields/ Rates | |||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||||||
Loans (a)(b) | $ | 1,088,751 | $ | 84,775 | 7.79 | % | $ | 989,617 | $ | 78,382 | 7.92 | % | $ | 772,363 | $ | 54,492 | 7.06 | % | ||||||||||||||||||
Investment securities (b) | 146,376 | 7,633 | 5.21 | % | 123,651 | 6,149 | 4.97 | % | 86,325 | 3,938 | 4.56 | % | ||||||||||||||||||||||||
Interest bearing deposits in other banks | 383 | 19 | 4.96 | % | 448 | 22 | 4.94 | % | 359 | 10 | 2.90 | % | ||||||||||||||||||||||||
FHLB stock | 8,408 | 503 | 5.98 | % | 4,935 | 285 | 5.78 | % | 2,725 | 113 | 4.15 | % | ||||||||||||||||||||||||
Federal funds sold | 42,187 | 2,144 | 5.08 | % | 15,465 | 739 | 4.78 | % | 38,374 | 1,202 | 3.13 | % | ||||||||||||||||||||||||
Total interest-earning assets | 1,286,105 | 95,074 | 7.39 | % | 1,134,116 | 85,577 | 7.55 | % | 900,146 | 59,755 | 6.64 | % | ||||||||||||||||||||||||
Non-interest earning assets: | ||||||||||||||||||||||||||||||||||||
Cash and due from banks | 20,394 | 22,402 | 21,680 | |||||||||||||||||||||||||||||||||
Premises and equipment, net | 36,609 | 32,205 | 27,007 | |||||||||||||||||||||||||||||||||
Allowances for loan losses | (10,174 | ) | (8,325 | ) | (6,887 | ) | ||||||||||||||||||||||||||||||
Other assets | 41,167 | 32,037 | 30,626 | |||||||||||||||||||||||||||||||||
Total non-interest earning assets | 87,996 | 78,319 | 72,426 | |||||||||||||||||||||||||||||||||
Total Assets | $ | 1,374,101 | $ | 1,212,435 | $ | 972,572 | ||||||||||||||||||||||||||||||
LIABILITIES & SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||||||||
Interest bearing liabilities: | ||||||||||||||||||||||||||||||||||||
Interest bearing deposits: | ||||||||||||||||||||||||||||||||||||
NOW accounts | $ | 151,745 | 4,967 | 3.27 | % | $ | 131,386 | 3,500 | 2.66 | % | $ | 92,754 | 919 | 0.99 | % | |||||||||||||||||||||
Money market | 186,996 | 7,753 | 4.15 | % | 166,501 | 5,959 | 3.58 | % | 165,266 | 3,686 | 2.23 | % | ||||||||||||||||||||||||
Savings deposits | 55,360 | 968 | 1.75 | % | 48,897 | 346 | 0.71 | % | 47,774 | 243 | 0.51 | % | ||||||||||||||||||||||||
Time deposits | 486,658 | 24,172 | 4.97 | % | 477,204 | 21,852 | 4.58 | % | 357,824 | 12,595 | 3.52 | % | ||||||||||||||||||||||||
Total interest-bearing deposits | 880,759 | 37,860 | 4.30 | % | 823,988 | 31,657 | 3.84 | % | 663,618 | 17,443 | 2.63 | % | ||||||||||||||||||||||||
Short-term borrowings and FHLB advances | 174,583 | 7,861 | 4.50 | % | 86,883 | 4,102 | 4.72 | % | 39,465 | 1,282 | 3.25 | % | ||||||||||||||||||||||||
Long-term borrowings | 39,860 | 3,000 | 7.53 | % | 27,442 | 2,412 | 8.79 | % | 17,052 | 1,579 | 9.26 | % | ||||||||||||||||||||||||
Total interest bearing liabilities | 1,095,202 | 48,721 | 4.45 | % | 938,313 | 38,171 | 4.07 | % | 720,135 | 20,304 | 2.82 | % | ||||||||||||||||||||||||
Non-interest bearing liabilities and shareholders’ equity: | ||||||||||||||||||||||||||||||||||||
Demand deposits | 163,478 | 174,798 | 169,426 | |||||||||||||||||||||||||||||||||
Other liabilities | 19,338 | 17,903 | 12,443 | |||||||||||||||||||||||||||||||||
Shareholders’ equity | 96,083 | 81,421 | 70,568 | |||||||||||||||||||||||||||||||||
Total non-interest bearing liabilities and shareholders’ equity | 278,899 | 274,122 | 252,437 | |||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 1,374,101 | $ | 1,212,435 | $ | 972,572 | ||||||||||||||||||||||||||||||
Interest rate spread | 2.94 | % | 3.48 | % | 3.82 | % | ||||||||||||||||||||||||||||||
Net interest income | $ | 46,353 | $ | 47,406 | $ | 39,451 | ||||||||||||||||||||||||||||||
Net interest margin (c) | 3.60 | % | 4.18 | % | 4.38 | % | ||||||||||||||||||||||||||||||
(a) | Average loans include non-performing loans. Interest on loans includes loan fees of $706 in 2007, $632 in 2006, and $468 in 2005. |
(b) | Interest income and rates include the effects of a tax equivalent adjustment using applicable Federal tax rates in adjusting tax exempt interest on tax exempt investment securities and loans to a fully taxable basis. |
(c) | Net interest margin is net interest income divided by average total interest-earning assets. |
2007 compared to 2006 Due to changes in | 2006 compared to 2005 Due to changes in | |||||||||||||||||||||||
(Dollars in thousands) | Average Volume | Average Rate | Net Increase (Decrease) | Average Volume | Average Rate | Net Increase (Decrease) | ||||||||||||||||||
Interest income | ||||||||||||||||||||||||
Loans (a) | $ | 7,738 | $ | (1,345 | ) | $ | 6,393 | $ | 16,637 | $ | 7,253 | $ | 23,890 | |||||||||||
Investment securities (a) | 1,174 | 310 | 1,484 | 1,830 | 381 | 2,211 | ||||||||||||||||||
Interest-bearing deposits in other banks | (3 | ) | - | (3 | ) | 3 | 9 | 12 | ||||||||||||||||
FHLB stock | 207 | 11 | 218 | 116 | 56 | 172 | ||||||||||||||||||
Federal funds sold | 1,355 | 50 | 1,405 | (918 | ) | 455 | (463 | ) | ||||||||||||||||
Total interest income | 10,471 | (974 | ) | 9,497 | 17,668 | 8,154 | 25,822 | |||||||||||||||||
Interest expense | ||||||||||||||||||||||||
NOW accounts | 592 | 875 | 1,467 | 511 | 2,070 | 2,581 | ||||||||||||||||||
Money market | 784 | 1,010 | 1,794 | 28 | 2,245 | 2,273 | ||||||||||||||||||
Savings deposits | 51 | 571 | 622 | 6 | 97 | 103 | ||||||||||||||||||
Time deposits | 440 | 1,880 | 2,320 | 4,867 | 4,390 | 9,257 | ||||||||||||||||||
Short-term borrowings and FHLB advances | 3,957 | (198 | ) | 3,759 | 2,047 | 773 | 2,820 | |||||||||||||||||
Long-term borrowings | 972 | (384 | ) | 588 | 917 | (84 | ) | 833 | ||||||||||||||||
Total interest expense | 6,796 | 3,754 | 10,550 | 8,376 | 9,491 | 17,867 | ||||||||||||||||||
Change in net interest income | $ | 3,675 | $ | (4,728 | ) | $ | (1,053 | ) | $ | 9,292 | $ | (1,337 | ) | $ | 7,955 | |||||||||
(Dollars in thousands) | 2007 | 2006 | 2005 | |||||||||
Fees on mortgage loans sold | $ | 1,446 | $ | 1,599 | $ | 1,880 | ||||||
Service charges on deposit accounts | 2,692 | 2,457 | 2,360 | |||||||||
Investment securities gains (losses), net | (5,660 | ) | - | 1 | ||||||||
Debit card income | 733 | 711 | 572 | |||||||||
Earnings on bank owned life insurance policies | 445 | 400 | 416 | |||||||||
Gain on sale of assets | 957 | 138 | 267 | |||||||||
Other | 749 | 970 | 762 | |||||||||
Total non-interest income | $ | 1,362 | $ | 6,275 | $ | 6,258 | ||||||
(Dollars in thousands) | 2007 | 2006 | 2005 | |||||||||
Salary and employee benefits | $ | 22,550 | $ | 20,205 | $ | 17,724 | ||||||
Net occupancy expense | 7,979 | 6,120 | 5,502 | |||||||||
Accounting, legal, and other professional | 2,144 | 1,710 | 1,444 | |||||||||
Computer services | 2,172 | 1,955 | 1,650 | |||||||||
Postage, courier and armored car | 837 | 845 | 719 | |||||||||
Marketing and community relations | 1,151 | 983 | 731 | |||||||||
Operating supplies | 581 | 581 | 589 | |||||||||
Directors’ fees | 568 | 518 | 468 | |||||||||
Indirect loan production expense | 12 | 276 | 379 | |||||||||
Provision for unfunded commitments | (98 | ) | (101 | ) | 316 | |||||||
Travel expenses | 396 | 387 | 299 | |||||||||
FDIC and state assessments | 629 | 298 | 253 | |||||||||
Amortization of intangibles | 440 | 288 | 291 | |||||||||
Repossessed asset expenses | 986 | 312 | 128 | |||||||||
Operational charge-offs | 74 | 124 | 69 | |||||||||
Other operating expenses | 1,500 | 1,332 | 1,294 | |||||||||
Total non-interest expenses | $ | 41,921 | $ | 35,833 | $ | 31,856 | ||||||
(Dollars in thousands) | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||
Real estate mortgage loans: | ||||||||||||||||||||
Commercial | $ | 612,084 | $ | 546,276 | $ | 451,969 | $ | 351,346 | $ | 297,221 | ||||||||||
Residential | 112,138 | 82,243 | 76,003 | 67,204 | 60,104 | |||||||||||||||
Farmland | 11,361 | 24,210 | 4,660 | 4,971 | 2,317 | |||||||||||||||
Construction and vacant land | 168,595 | 157,672 | 125,207 | 49,815 | 32,089 | |||||||||||||||
Commercial and agricultural loans | 72,076 | 84,905 | 80,055 | 64,622 | 63,624 | |||||||||||||||
Indirect auto dealer loans | 117,439 | 141,552 | 118,018 | 91,890 | 59,437 | |||||||||||||||
Home equity loans | 21,820 | 17,199 | 17,232 | 13,856 | 12,574 | |||||||||||||||
Other consumer loans | 12,154 | 9,795 | 9,228 | 9,817 | 11,232 | |||||||||||||||
Subtotal | 1,127,667 | 1,063,852 | 882,372 | 653,521 | 538,598 | |||||||||||||||
Less: deferred loan costs (fees) | 1,489 | 1,616 | 1,652 | 2,157 | 1,815 | |||||||||||||||
Less: allowance for loan losses | (14,973 | ) | (9,581 | ) | (7,546 | ) | (6,243 | ) | (5,216 | ) | ||||||||||
Net loans | $ | 1,114,183 | $ | 1,055,887 | $ | 876,478 | $ | 649,435 | $ | 535,197 | ||||||||||
2007 | 2006 | |||||||||||||||
(Dollars in thousands) | Commercial Real Estate | Percentage Composition | Commercial Real Estate | Percentage Composition | ||||||||||||
Mixed Use Commercial/Residential | $ | 103,937 | 17 | % | $ | 92,220 | 17 | % | ||||||||
1-4 Family and Multi Family | 76,339 | 13 | % | 75,154 | 14 | % | ||||||||||
Hotels/Motels | 86,909 | 14 | % | 77,055 | 14 | % | ||||||||||
Guesthouses | 81,817 | 13 | % | 76,990 | 14 | % | ||||||||||
Office Buildings | 97,633 | 16 | % | 74,380 | 14 | % | ||||||||||
Retail Buildings | 64,819 | 11 | % | 57,930 | 10 | % | ||||||||||
Restaurants | 37,186 | 6 | % | 31,802 | 6 | % | ||||||||||
Marinas/Docks | 20,364 | 3 | % | 26,312 | 5 | % | ||||||||||
Warehouse and Industrial | 29,958 | 5 | % | 21,206 | 4 | % | ||||||||||
Other | 13,122 | 2 | % | 13,227 | 2 | % | ||||||||||
Total | $ | 612,084 | 100 | % | $ | 546,276 | 100 | % | ||||||||
2007 | 2006 | |||||||||||||||
(Dollars in thousands) | Construction and Vacant Land | Percentage Composition | Construction and Vacant Land | Percentage Composition | ||||||||||||
Construction: | ||||||||||||||||
Residential – owner occupied | $ | 20,620 | 12 | % | $ | 23,892 | 15 | % | ||||||||
Residential – commercial developer | 36,107 | 21 | % | 42,664 | 27 | % | ||||||||||
Commercial structure | 14,367 | 9 | % | 24,035 | 15 | % | ||||||||||
Total construction | 71,094 | 42 | % | 90,591 | 57 | % | ||||||||||
Land: | ||||||||||||||||
Raw land | 15,890 | 9 | % | 6,580 | 4 | % | ||||||||||
Residential lots | 16,775 | 10 | % | 19,759 | 13 | % | ||||||||||
Land development | 29,818 | 18 | % | 9,578 | 6 | % | ||||||||||
Commercial lots | 35,018 | 21 | % | 31,164 | 20 | % | ||||||||||
Total land | 97,501 | 58 | % | 67,081 | 43 | % | ||||||||||
Total | $ | 168,595 | 100 | % | $ | 157,672 | 100 | % | ||||||||
Loans maturing | ||||||||||||||||
(Dollars in thousands) | Within 1 Year | 1 to 5 Years | After 5 Years | Total | ||||||||||||
Real estate mortgage loans: | ||||||||||||||||
Commercial | $ | 72,530 | $ | 95,315 | $ | 444,239 | $ | 612,084 | ||||||||
Residential | 3,221 | 1,761 | 107,156 | 112,138 | ||||||||||||
Farmland | 1,021 | 1,831 | 8,509 | 11,361 | ||||||||||||
Construction and vacant land (a) | 79,180 | 60,431 | 28,984 | 168,595 | ||||||||||||
Commercial and agricultural loans | 33,840 | 24,579 | 13,657 | 72,076 | ||||||||||||
Indirect auto dealer loans | 3,557 | 97,109 | 16,773 | 117,439 | ||||||||||||
Home equity loans | 1,851 | 6,610 | 13,359 | 21,820 | ||||||||||||
Other consumer loans | 2,428 | 7,117 | 2,609 | 12,154 | ||||||||||||
Total loans | $ | 197,628 | $ | 294,753 | $ | 635,286 | $ | 1,127,667 | ||||||||
Loans maturing | ||||||||||||||||
(Dollars in thousands) | Within 1 Year | 1 to 5 Years | After 5 Years | Total | ||||||||||||
Loans with: | ||||||||||||||||
Predetermined interest rates | $ | 44,706 | $ | 191,381 | $ | 55,886 | $ | 291,973 | ||||||||
Floating or adjustable rates | 152,922 | 103,372 | 579,400 | 835,694 | ||||||||||||
Total loans | $ | 197,628 | $ | 294,753 | $ | 635,286 | $ | 1,127,667 | ||||||||
(Dollars in thousands) | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||
Balance at beginning of year | $ | 9,581 | $ | 7,546 | $ | 6,243 | $ | 5,216 | $ | 4,272 | ||||||||||
Charge-offs: | ||||||||||||||||||||
Real estate mortgage loans: | ||||||||||||||||||||
Commercial | 118 | - | - | - | - | |||||||||||||||
Residential | 63 | - | - | - | - | |||||||||||||||
Farmland | - | - | - | - | - | |||||||||||||||
Construction and vacant land | 1,251 | - | - | - | - | |||||||||||||||
Commercial and agricultural loans | 278 | 12 | 107 | 92 | 183 | |||||||||||||||
Indirect auto dealer loans | 3,110 | 1,557 | 1,045 | 1,313 | 370 | |||||||||||||||
Home equity loans | 331 | - | - | - | 53 | |||||||||||||||
Other consumer loans | 51 | 4 | 67 | 82 | 61 | |||||||||||||||
Total charge-offs | 5,202 | 1,573 | 1,219 | 1,487 | 667 | |||||||||||||||
Recoveries: | ||||||||||||||||||||
Real estate mortgage loans: | ||||||||||||||||||||
Commercial | - | - | - | - | 6 | |||||||||||||||
Residential | - | - | - | - | - | |||||||||||||||
Farmland | - | - | - | - | - | |||||||||||||||
Construction and vacant land | - | - | - | - | - | |||||||||||||||
Commercial and agricultural loans | - | 20 | 6 | 38 | 1 | |||||||||||||||
Indirect auto dealer loans | 262 | 55 | 65 | 3 | 8 | |||||||||||||||
Home equity loans | 2 | 2 | 8 | 2 | 1 | |||||||||||||||
Other consumer loans | 6 | 40 | 30 | 16 | 9 | |||||||||||||||
Total recoveries | 270 | 117 | 109 | 59 | 25 | |||||||||||||||
Net charged off | 4,932 | 1,456 | 1,110 | 1,428 | 642 | |||||||||||||||
Provision for loan losses | 9,657 | 3,491 | 2,413 | 2,455 | 1,586 | |||||||||||||||
Acquisition of The Bank of Venice | 667 | - | - | - | - | |||||||||||||||
Allowance for loan losses at end of year | $ | 14,973 | $ | 9,581 | $ | 7,546 | $ | 6,243 | $ | 5,216 | ||||||||||
Ratio of net charge-offs to average net loans outstanding | 0.45 | % | 0.15 | % | 0.14 | % | 0.24 | % | 0.13 | % | ||||||||||
2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Allowance | % of Total Loans | Allowance | % of Total Loans | Allowance | % of Total Loans | Allowance | % of Total Loans | Allowance | % of Total Loans | ||||||||||||||||||||||||||||||
Real estate mortgage loans: | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 5,250 | 54 | % | $ | 3,764 | 51 | % | $ | 2,971 | 51 | % | $ | 2,513 | 54 | % | $ | 2,608 | 55 | % | ||||||||||||||||||||
Residential | 381 | 10 | % | 191 | 8 | % | 168 | 9 | % | 144 | 10 | % | 151 | 11 | % | |||||||||||||||||||||||||
Farmland | 84 | 1 | % | 161 | 2 | % | 30 | 1 | % | 34 | 1 | % | 20 | 1 | % | |||||||||||||||||||||||||
Construction and vacant land | 1,218 | 15 | % | 922 | 15 | % | 743 | 14 | % | 312 | 8 | % | 217 | 6 | % | |||||||||||||||||||||||||
Commercial and agricultural loans | 1,547 | 6 | % | 1,002 | 8 | % | 912 | 9 | % | 737 | 10 | % | 901 | 12 | % | |||||||||||||||||||||||||
Indirect auto dealer loans | 5,072 | 11 | % | 3,352 | 13 | % | 2,523 | 13 | % | 2,312 | 14 | % | 1,095 | 11 | % | |||||||||||||||||||||||||
Home equity loans | 213 | 2 | % | 87 | 2 | % | 85 | 2 | % | 67 | 2 | % | 78 | 2 | % | |||||||||||||||||||||||||
Other consumer loans | 113 | 1 | % | 102 | 1 | % | 114 | 1 | % | 124 | 1 | % | 146 | 2 | % | |||||||||||||||||||||||||
Unallocated | 1,095 | - | - | - | - | |||||||||||||||||||||||||||||||||||
$ | 14,973 | 100 | % | $ | 9,581 | 100 | % | $ | 7,546 | 100 | % | $ | 6,243 | 100 | % | $ | 5,216 | 100 | % | |||||||||||||||||||||
(Dollars in thousands) | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||
Total non-accrual loans (a) | $ | 16,086 | $ | 4,223 | $ | 956 | $ | 704 | $ | 390 | ||||||||||
Accruing loans delinquent 90 days or more (a) | - | - | - | - | - | |||||||||||||||
Total non-performing loans | 16,086 | 4,223 | 956 | 704 | 390 | |||||||||||||||
Non-accrual investment security(b) | 3,154 | - | - | - | - | |||||||||||||||
Repossessed personal property (primarily indirect auto dealer loans) | 3,136 | 1,958 | 962 | 688 | 598 | |||||||||||||||
Other real estate owned | 1,846 | - | 190 | 882 | 193 | |||||||||||||||
Other assets (c) | 2,915 | 2,861 | 2,815 | 2,665 | 2,472 | |||||||||||||||
Total non-performing assets | $ | 27,137 | $ | 9,042 | $ | 4,923 | $ | 4,939 | $ | 3,653 | ||||||||||
Allowance for loan losses | $ | 14,973 | $ | 9,581 | $ | 7,546 | $ | 6,243 | $ | 5,216 | ||||||||||
Non-performing assets as a percent of total assets | 1.88 | % | 0.69 | % | 0.46 | % | 0.60 | % | 0.55 | % | ||||||||||
Non-performing loans as a percent of total loans | 1.43 | % | 0.40 | % | 0.11 | % | 0.11 | % | 0.07 | % | ||||||||||
Allowance for loan losses as a percent of non-performing loans (a) | 93.08 | % | 226.88 | % | 789.33 | % | 886.79 | % | 1,336.33 | % | ||||||||||
(a) | Non-performing loans from 2003 through 2005 exclude the $1.6 million loan discussed below that is guaranteed for both principal and interest by the USDA. In December 2006, the Bank stopped accruing interest on this loan pursuant to a ruling made by the USDA. Accordingly, the loan is included in total non-accrual loans as of December 31, 2006 and 2007. Other non-accrual loans at December 31, 2003 through December 31, 2006 are primarily indirect auto dealer loans. Non-accrual loans as of December 31, 2007 and 2006 are as follows: |
December 31, 2007 | December 31, 2006 | |||||||||||||||
Collateral Description | Number of Loans | Outstanding Balance | Number of Loans | Outstanding Balance | ||||||||||||
Residential 1-4 family | 13 | $ | 4,442 | 2 | $ | 150 | ||||||||||
Commercial and agricultural | 4 | 293 | 1 | 142 | ||||||||||||
Commercial real estate | 4 | 2,619 | 1 | 396 | ||||||||||||
Residential land development | 1 | 2,686 | - | - | ||||||||||||
Participations in residential loan pools | 9 | 1,246 | - | - | ||||||||||||
Government guaranteed loan | 1 | 1,641 | 1 | 1,641 | ||||||||||||
Indirect auto-dealer loans | 238 | 3,159 | 156 | 1,894 | ||||||||||||
$ | 16,086 | $ | 4,223 | |||||||||||||
(b) | In December 2007, the Company placed a collateralized debt security secured primarily by homebuilders, REITs, real estate companies and commercial mortgage backed securities on non-accrual. This security had an original cost of $6.0 million and was rated A at purchase. Additionally, management deemed the decline in market value of this security other than temporary and recorded a realized loss of $2.8 million in writing the security down to its December 31, 2007 fair value of $3.2 million. For additional details on this and other investment securities, see the section of management’s discussion and analysis that follows entitled “Investment Portfolio”. |
(c) | In 1998, TIB Bank made a $10.0 million loan to construct a lumber mill in northern Florida. Of this amount, $6.4 million had been sold by the Bank to other lenders. The loan was 80% guaranteed as to principal and interest by the U.S. Department of Agriculture (USDA). In addition to business real estate and equipment, the loan was collateralized by the business owner’s interest in a trust. Under provisions of the trust agreement, beneficiaries cannot receive trust assets until November 2010. |
(Dollars in thousands) | 2007 | 2006 | 2005 | |||||||||
Provided by operating activities | $ | 3,770 | $ | 11,607 | $ | 19,998 | ||||||
Used by investing activities | (40,328 | ) | (229,815 | ) | (246,077 | ) | ||||||
Provided by financing activities | 52,065 | 232,250 | 224,651 | |||||||||
Net increase (decrease) in cash and cash equivalents | $ | 15,507 | $ | 14,042 | $ | (1,428 | ) | |||||
(Dollars in thousands) | 3 Months or Less | 4 to 6 Months | 7 to 12 Months | 1 to 5 Years | Over 5 Years | Total | ||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans | $ | 337,276 | $ | 44,677 | $ | 81,806 | $ | 540,507 | $ | 123,401 | $ | 1,127,667 | ||||||||||||
Investment securities-taxable | 35,969 | 9,997 | 7,284 | 18,383 | 77,916 | 149,549 | ||||||||||||||||||
Investment securities-tax exempt | 1,486 | 683 | 201 | 968 | 6,246 | 9,584 | ||||||||||||||||||
Marketable equity securities | 1,224 | - | - | - | - | 1,224 | ||||||||||||||||||
FHLB stock | 8,881 | - | - | - | - | 8,881 | ||||||||||||||||||
Federal funds sold and securities purchased under agreements to resell | 48,744 | - | - | - | - | 48,744 | ||||||||||||||||||
Interest-bearing deposit in other banks | 146 | - | - | - | - | 146 | ||||||||||||||||||
Total interest-bearing assets | 433,726 | 55,357 | 89,291 | 559,858 | 207,563 | 1,345,795 | ||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
NOW accounts | 161,878 | - | - | - | - | 161,878 | ||||||||||||||||||
Money market | 176,900 | - | - | - | - | 176,900 | ||||||||||||||||||
Savings deposits | 55,045 | - | - | - | - | 55,045 | ||||||||||||||||||
Time deposits | 138,116 | 131,831 | 152,922 | 89,885 | - | 512,754 | ||||||||||||||||||
Subordinated debentures | 25,000 | - | - | - | 8,000 | 33,000 | ||||||||||||||||||
Other borrowings | 102,922 | - | 30,000 | 115,000 | - | 247,922 | ||||||||||||||||||
Total interest-bearing liabilities | 659,861 | 131,831 | 182,922 | 204,885 | 8,000 | 1,187,499 | ||||||||||||||||||
Interest sensitivity gap | $ | (226,135 | ) | $ | (76,474 | ) | $ | (93,631 | ) | $ | 354,973 | $ | 199,563 | $ | 158,296 | |||||||||
Cumulative interest sensitivity gap | $ | (226,135 | ) | $ | (302,609 | ) | $ | (396,240 | ) | $ | (41,267 | ) | $ | 158,296 | $ | 158,296 | ||||||||
Cumulative sensitivity ratio | (16.8 | %) | (22.5 | %) | (29.4 | %) | (3.1 | %) | 11.8 | % | 11.8 | % | ||||||||||||
(Dollars in thousands) | Within 1 Year | After 1 Year Within 5 Years | After 5 Years Within 10 Years | After 10 Years | Other Securities | |||||||||||||||||||||||||||||||
Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | ||||||||||||||||||||||||||||
Securities Available for Sale: | ||||||||||||||||||||||||||||||||||||
U.S. Gov’t agencies and corporations | $ | 8,525 | 3.09 | % | $ | 25,236 | 4.73 | % | $ | 27,958 | 5.12 | % | $ | 11,942 | 5.57 | % | $ | - | ||||||||||||||||||
States and political subdivisions – tax exempt (a) | 1,548 | 5.31 | % | 1,461 | 6.68 | % | 4,708 | 5.25 | % | 1,867 | 5.66 | % | - | |||||||||||||||||||||||
States and political subdivisions – taxable | - | - | 176 | 7.29 | % | - | - | 2,299 | 6.10 | % | - | |||||||||||||||||||||||||
Marketable equity securities (a) | - | - | - | - | - | - | - | - | 1,224 | |||||||||||||||||||||||||||
Mortgage-backed securities | - | - | - | - | - | - | - | - | 60,160 | |||||||||||||||||||||||||||
Corporate bonds | - | - | - | - | - | - | 2,765 | 6.13 | % | - | ||||||||||||||||||||||||||
Collateralized debt obligations | - | - | - | - | - | - | 10,488 | 5.06 | % | - | ||||||||||||||||||||||||||
Total | $ | 10,073 | 3.43 | % | $ | 26,873 | 4.86 | % | $ | 32,666 | 5.14 | % | $ | 29,361 | 5.48 | % | $ | 61,384 | ||||||||||||||||||
(Dollars in thousands) | Yield | Totals | ||||||
Securities Available for Sale: | ||||||||
U.S. Government agencies and corporations | 4.82 | % | 73,661 | |||||
States and political subdivisions – tax exempt (a) | 5.56 | % | 9,584 | |||||
States and political subdivisions – taxable | 6.18 | % | 2,475 | |||||
Marketable equity securities (a) (b) | 14.34 | % | 1,224 | |||||
Mortgage-backed securities | 5.39 | % | 60,160 | |||||
Corporate bonds | 6.13 | % | 2,765 | |||||
Collateralized debt obligations | 5.06 | % | 10,488 | |||||
Total | 5.21 | % | $ | 160,357 | ||||
(a) | Weighted average yields on tax exempt obligations and marketable equity securities have been computed by grossing up actual tax exempt income |
(b) | Weighted average yield on marketable equity securities was computed using the actual 2007 income grossed up to an 85% taxable equivalent basis. We expect the future yield and relative proportion of tax exempt income to be significantly lower during 2008 and beyond. |
(Dollars in thousands) | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||
U.S. Government agencies and corporations | $ | 72,482 | $ | 1,245 | $ | 66 | $ | 73,661 | ||||||||
States and political subdivisions-tax exempt | 9,629 | 6 | 51 | 9,584 | ||||||||||||
States and political subdivisions-taxable | 2,495 | 1 | 21 | 2,475 | ||||||||||||
Marketable equity securities | 1,224 | - | - | 1,224 | ||||||||||||
Mortgage-backed securities | 60,161 | 295 | 296 | 60,160 | ||||||||||||
Corporate bonds | 2,865 | - | 100 | 2,765 | ||||||||||||
Collateralized debt obligations | 11,110 | - | 622 | 10,488 | ||||||||||||
$ | 159,966 | $ | 1,547 | $ | 1,156 | $ | 160,357 | |||||||||
(Dollars in thousands) | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||
U.S. Treasury Securities | $ | 5,087 | $ | - | $ | 125 | $ | 4,962 | ||||||||
U.S. Government agencies and corporations | 84,014 | 278 | 1,294 | 82,998 | ||||||||||||
States and political subdivisions-tax exempt | 10,818 | 22 | 98 | 10,742 | ||||||||||||
States and political subdivisions-taxable | 2,578 | 12 | - | 2,590 | ||||||||||||
Marketable equity securities | 3,000 | 484 | - | 3,484 | ||||||||||||
Mortgage-backed securities | 16,428 | 94 | 8 | 16,514 | ||||||||||||
Collateralized debt obligations | 9,996 | - | 87 | 9,909 | ||||||||||||
$ | 131,921 | $ | 890 | $ | 1,612 | $ | 131,199 | |||||||||
(Dollars in thousands) | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||
U.S. Treasury Securities | $ | 5,182 | $ | 1 | $ | 145 | $ | 5,038 | ||||||||
U.S. Government agencies and corporations | 64,145 | 5 | 1,738 | 62,412 | ||||||||||||
States and political subdivisions-tax exempt | 9,594 | 91 | 101 | 9,584 | ||||||||||||
States and political subdivisions-taxable | 2,655 | 8 | - | 2,663 | ||||||||||||
Marketable equity securities | 3,000 | 439 | - | 3,439 | ||||||||||||
Mortgage-backed securities | 10,083 | 193 | 24 | 10,252 | ||||||||||||
Collateralized debt obligations | 3,996 | 80 | - | 4,076 | ||||||||||||
$ | 98,655 | $ | 817 | $ | 2,008 | $ | 97,464 | |||||||||
2007 | 2006 | 2005 | ||||||||||||||||||||||
(Dollars in thousands) | Average Amount | Average Rate | Average Amount | Average Rate | Average Amount | Average Rate | ||||||||||||||||||
Non-interest bearing deposits | $ | 163,478 | $ | 174,798 | $ | 169,426 | ||||||||||||||||||
Interest-bearing deposits | ||||||||||||||||||||||||
NOW Accounts | 151,745 | 3.27 | % | 131,386 | 2.66 | % | 92,754 | 0.99 | % | |||||||||||||||
Money market | 186,996 | 4.15 | % | 166,501 | 3.58 | % | 165,266 | 2.23 | % | |||||||||||||||
Savings deposit | 55,360 | 1.75 | % | 48,897 | 0.71 | % | 47,774 | 0.51 | % | |||||||||||||||
Time deposits | 486,658 | 4.97 | % | 477,204 | 4.58 | % | 357,824 | 3.52 | % | |||||||||||||||
Total | $ | 1,044,237 | 3.63 | % | $ | 998,786 | 3.17 | % | $ | 833,044 | 2.09 | % | ||||||||||||
(Dollars in thousands) | Deposits $100 and Greater | Deposits Less than $100 | Total | |||||||||
Months to maturity: | ||||||||||||
3 or less | $ | 61,678 | $ | 62,306 | $ | 123,984 | ||||||
4 to 6 | 60,479 | 71,475 | 131,954 | |||||||||
7 through 12 | 60,911 | 92,754 | 153,665 | |||||||||
Over 12 | 57,785 | 45,366 | 103,151 | |||||||||
Total | $ | 240,853 | $ | 271,901 | $ | 512,754 | ||||||
Amount of Commitment Expiration Per Period | ||||||||||||||||||||
(Dollars in thousands) | Total Amounts Committed | One Year or Less | Over One Year Through Three Years | Over Three Years Through Five Years | Over Five Years | |||||||||||||||
Off-balance sheet arrangements | ||||||||||||||||||||
Commitments to extend credit | $ | 259,413 | $ | 111,513 | $ | 59,488 | $ | 20,857 | $ | 67,555 | ||||||||||
Standby letters of credit | 2,948 | 2,745 | 203 | - | - | |||||||||||||||
Total | $ | 262,361 | $ | 114,258 | $ | 59,691 | $ | 20,857 | $ | 67,555 | ||||||||||
Contractual obligations | ||||||||||||||||||||
Time deposits | $ | 512,754 | $ | 409,603 | $ | 92,091 | $ | 11,060 | $ | - | ||||||||||
Operating lease obligations | 6,397 | 1,273 | 1,661 | 1,180 | 2,283 | |||||||||||||||
Purchase obligations | 12,693 | 2,271 | 4,903 | 5,519 | - | |||||||||||||||
Long-term debt | 63,000 | - | 30,000 | - | 33,000 | |||||||||||||||
Other long-term liabilities reflected on the balance sheet under GAAP | 6,676 | 40 | 161 | 323 | 6,152 | |||||||||||||||
Total | $ | 601,520 | $ | 413,187 | $ | 128,816 | $ | 18,082 | $ | 41,435 | ||||||||||
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/s/ Crowe Chizek and Company LLC | ||||
Crowe Chizek and Company LLC | ||||
Fort Lauderdale, Florida | ||||
March 17, 2008 |
Consolidated Balance Sheets
December 31, | 2004 | 2003 | ||||||||||||||
Assets | ||||||||||||||||
(Dollars in thousands, except per share amounts) | 2007 | 2006 | ||||||||||||||
Assets | ||||||||||||||||
Cash and due from banks | $ | 27,410 | $ | 17,197 | $ | 22,315 | $ | 25,223 | ||||||||
Federal funds sold | 15,528 | 16,484 | ||||||||||||||
Federal funds sold and securities purchased under agreements to resell | 48,744 | 30,329 | ||||||||||||||
Cash and cash equivalents | 42,938 | 33,681 | 71,059 | 55,552 | ||||||||||||
Investment securities available for sale | 77,807 | 52,557 | 160,357 | 131,199 | ||||||||||||
Loans, net of deferred loan costs and fees | 655,678 | 540,413 | 1,129,156 | 1,065,468 | ||||||||||||
Less: Allowance for loan losses | 6,243 | 5,216 | 14,973 | 9,581 | ||||||||||||
Loans, net | 649,435 | 535,197 | 1,114,183 | 1,055,887 | ||||||||||||
Premises and equipment, net | 27,559 | 21,073 | 38,284 | 34,102 | ||||||||||||
Goodwill | 155 | 155 | 4,686 | 106 | ||||||||||||
Intangible assets, net | 1,392 | 1,687 | 2,772 | 813 | ||||||||||||
Accrued interest receivable and other assets | 30,039 | 24,948 | 53,398 | 41,434 | ||||||||||||
Total Assets | $ | 829,325 | $ | 669,298 | ||||||||||||
Total assets | $ | 1,444,739 | $ | 1,319,093 | ||||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||||
Liabilities | ||||||||||||||||
Deposits: | ||||||||||||||||
Noninterest-bearing demand | $ | 152,035 | $ | 121,728 | $ | 143,381 | $ | 159,380 | ||||||||
Interest-bearing | 535,824 | 432,085 | 906,577 | 870,077 | ||||||||||||
Total deposits | 687,859 | 553,813 | 1,049,958 | 1,029,457 | ||||||||||||
Federal Home Loan Bank (FHLB) advances | 35,000 | 45,000 | 140,000 | 125,000 | ||||||||||||
Short-term borrowings | 12,157 | 4,041 | 77,922 | 22,250 | ||||||||||||
Long-term borrowings | 18,250 | 18,250 | 63,000 | 37,000 | ||||||||||||
Accrued interest payable and other liabilities | 7,945 | 6,948 | 17,619 | 19,524 | ||||||||||||
Total liabilities | 761,211 | 628,052 | 1,348,499 | 1,233,231 | ||||||||||||
Shareholders’ equity | ||||||||||||||||
Preferred stock – no par value: 5,000,000 and 0 shares authorized, 0 and 0 shares issued | — | — | ||||||||||||||
Common stock – $.10 par value: 20,000,000 and 7,500,000 shares authorized, 5,679,239 and 4,431,328 shares issued | 568 | 443 | ||||||||||||||
Commitments and Contingencies (Notes 1, 6 and 16) | ||||||||||||||||
Shareholders’ Equity | ||||||||||||||||
Preferred stock – no par value: 5,000,000 shares authorized, 0 shares issued | - | - | ||||||||||||||
Common stock - $.10 par value: 40,000,000 shares authorized, 12,852,361 and 11,720,527 shares issued, 12,783,161 and 11,720,527 outstanding | 1,285 | 1,172 | ||||||||||||||
Additional paid in capital | 38,284 | 14,255 | 56,133 | 40,514 | ||||||||||||
Retained earnings | 28,968 | 26,203 | 39,151 | 44,620 | ||||||||||||
Accumulated other comprehensive income | 294 | 345 | ||||||||||||||
Accumulated other comprehensive income (loss) | 240 | (444 | ) | |||||||||||||
Treasury stock, at cost, 69,200 and 0 shares | (569 | ) | - | |||||||||||||
Total shareholders’ equity | 68,114 | 41,246 | 96,240 | 85,862 | ||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 829,325 | $ | 669,298 | $ | 1,444,739 | $ | 1,319,093 | ||||||||
See accompanying notes to consolidated financial statements | See accompanying notes to consolidated financial statements |
See accompanying notes to consolidated financial statements.
Consolidated Statements of IncomeOperations
Years ended December 31, | 2004 | 2003 | 2002 | |||||||||||||||||||||
(Dollars in thousands, except per share amounts) | 2007 | 2006 | 2005 | |||||||||||||||||||||
Interest and dividend income | ||||||||||||||||||||||||
Loans, including fees | $ | 37,720 | $ | 31,664 | $ | 27,783 | $ | 84,773 | $ | 78,379 | $ | 54,488 | ||||||||||||
Investment securities: | ||||||||||||||||||||||||
U.S. Treasury securities | 124 | 7 | 124 | 152 | 170 | 171 | ||||||||||||||||||
U.S. Government agencies and corporations | 2,023 | 2,003 | 2,309 | 5,404 | 4,207 | 2,607 | ||||||||||||||||||
States and political subdivisions, tax-exempt | 406 | 329 | 260 | 396 | 422 | 377 | ||||||||||||||||||
States and political subdivisions, taxable | 197 | 240 | 381 | 157 | 163 | 169 | ||||||||||||||||||
Other investments | 251 | 59 | 46 | 1,193 | 847 | 297 | ||||||||||||||||||
Interest-bearing deposits in other banks | 11 | 3 | 5 | 19 | 22 | 10 | ||||||||||||||||||
Federal Home Loan Bank stock | 57 | 59 | 78 | 503 | 285 | 113 | ||||||||||||||||||
Federal funds sold | 127 | 242 | 330 | 2,144 | 739 | 1,202 | ||||||||||||||||||
Total interest and dividend income | 40,916 | 34,606 | 31,316 | 94,741 | 85,234 | 59,434 | ||||||||||||||||||
Interest expense | ||||||||||||||||||||||||
Interest-bearing demand and money market | 1,519 | 1,321 | 2,057 | 12,721 | 9,459 | 4,605 | ||||||||||||||||||
Savings | 174 | 170 | 223 | 968 | 346 | 243 | ||||||||||||||||||
Time deposits of $100,000 or more | 3,507 | 3,165 | 2,721 | |||||||||||||||||||||
Time deposits of $100 or more | 12,622 | 11,713 | 6,505 | |||||||||||||||||||||
Other time deposits | 3,371 | 3,279 | 3,282 | 11,549 | 10,139 | 6,090 | ||||||||||||||||||
Long-term debt-subordinated debentures | 1,119 | 1,109 | 1,140 | |||||||||||||||||||||
Long-term debt - subordinated debentures | 2,708 | 2,045 | 1,212 | |||||||||||||||||||||
Federal Home Loan Bank advances | 475 | 276 | 383 | 6,197 | 3,415 | 857 | ||||||||||||||||||
Short-term borrowings | 83 | 38 | 42 | 1,664 | 687 | 425 | ||||||||||||||||||
Notes payable | 482 | 481 | 481 | |||||||||||||||||||||
Long-term borrowings | 292 | 367 | 367 | |||||||||||||||||||||
Total interest expense | 10,730 | 9,839 | 10,329 | 48,721 | 38,171 | 20,304 | ||||||||||||||||||
Net interest income | 30,186 | 24,767 | 20,987 | 46,020 | 47,063 | 39,130 | ||||||||||||||||||
Provision for loan losses | 2,455 | 1,586 | 791 | 9,657 | 3,491 | 2,413 | ||||||||||||||||||
Net interest income after provision for loan losses | 27,731 | 23,181 | 20,196 | 36,363 | 43,572 | 36,717 | ||||||||||||||||||
Non-interest income | ||||||||||||||||||||||||
Service charges on deposit accounts | 2,547 | 2,452 | 2,240 | 2,692 | 2,457 | 2,360 | ||||||||||||||||||
Investment securities gains, net | 106 | 289 | 218 | |||||||||||||||||||||
Merchant bankcard processing income | 5,757 | 4,953 | 4,387 | |||||||||||||||||||||
Dividend income from ERAS Joint Venture | — | — | 33 | |||||||||||||||||||||
Gain on sale of investment in ERAS Joint Venture | — | 202 | 211 | |||||||||||||||||||||
Gain on sale of government guaranteed loans | — | 117 | 28 | |||||||||||||||||||||
Investment securities gains (losses), net | (5,660 | ) | - | 1 | ||||||||||||||||||||
Fees on mortgage loans sold | 1,852 | 2,201 | 1,583 | 1,446 | 1,599 | 1,880 | ||||||||||||||||||
Retail investment services | 333 | 420 | 206 | |||||||||||||||||||||
Other income | 1,468 | 1,403 | 1,522 | 2,884 | 2,219 | 2,017 | ||||||||||||||||||
Total non-interest income | 12,063 | 12,037 | 10,428 | 1,362 | 6,275 | 6,258 | ||||||||||||||||||
Non-interest expense | ||||||||||||||||||||||||
Salaries and employee benefits | 14,686 | 12,878 | 10,602 | 22,550 | 20,205 | 17,724 | ||||||||||||||||||
Net occupancy and equipment expense | 4,964 | 4,326 | 3,680 | 7,979 | 6,120 | 5,502 | ||||||||||||||||||
Other expense | 12,274 | 10,365 | 9,350 | 11,392 | 9,508 | 8,630 | ||||||||||||||||||
Total non-interest expense | 31,924 | 27,569 | 23,632 | 41,921 | 35,833 | 31,856 | ||||||||||||||||||
Income before income tax expense | 7,870 | 7,649 | 6,992 | |||||||||||||||||||||
Income tax expense | 2,672 | 2,672 | 2,386 | |||||||||||||||||||||
Income (loss) from continuing operations before income taxes | (4,196 | ) | 14,014 | 11,119 | ||||||||||||||||||||
Income from continuing operations | 5,198 | 4,977 | 4,606 | |||||||||||||||||||||
Income tax expense (benefit) | (1,775 | ) | 5,021 | 3,927 | ||||||||||||||||||||
Income (loss) from continuing operations | (2,421 | ) | 8,993 | 7,192 | ||||||||||||||||||||
Years ended December 31, | 2004 | 2003 | 2002 | |||||||||||||||||||||
(Dollars in thousands, except per share amounts) | 2007 | 2006 | 2005 | |||||||||||||||||||||
Discontinued operations | ||||||||||||||||||||||||
Income from Keys Insurance Agency, Inc. operations | — | 200 | 206 | |||||||||||||||||||||
Income from merchant bankcard operations | - | 414 | 7,630 | |||||||||||||||||||||
Income tax expense | — | 75 | 77 | - | 160 | 2,998 | ||||||||||||||||||
Income from discontinued operations | — | 125 | 129 | - | 254 | 4,632 | ||||||||||||||||||
Net income (loss) | $ | (2,421 | ) | $ | 9,247 | $ | 11,824 | |||||||||||||||||
Net income | $ | 5,198 | $ | 5,102 | $ | 4,735 | ||||||||||||||||||
Basic earnings per common share | ||||||||||||||||||||||||
Basic earnings (loss) per common share | ||||||||||||||||||||||||
Continuing operations | $ | 0.98 | $ | 1.17 | $ | 1.15 | $ | (0.20 | ) | $ | 0.78 | $ | 0.63 | |||||||||||
Discontinued operations | — | .03 | .04 | - | 0.02 | 0.41 | ||||||||||||||||||
Basic earnings (loss) per share | $ | (0.20 | ) | $ | 0.80 | $ | 1.04 | |||||||||||||||||
Basic earnings per share | $ | 0.98 | $ | 1.20 | $ | 1.19 | ||||||||||||||||||
Diluted earnings per common share | ||||||||||||||||||||||||
Diluted earnings (loss) per common share | ||||||||||||||||||||||||
Continuing operations | $ | 0.95 | $ | 1.12 | $ | 1.11 | $ | (0.20 | ) | $ | 0.76 | $ | 0.61 | |||||||||||
Discontinued operations | — | .03 | .03 | - | 0.02 | 0.39 | ||||||||||||||||||
Diluted earnings (loss) per share | $ | (0.20 | ) | $ | 0.78 | $ | 1.00 | |||||||||||||||||
Diluted earnings per share | $ | 0.95 | $ | 1.15 | $ | 1.14 | ||||||||||||||||||
See accompanying notes to consolidated financial statements | See accompanying notes to consolidated financial statements |
See accompanying notes to consolidated financial statements.
Consolidated Statements of Changes in Shareholders’ EquitydollarsDollars in thousands, except per share amounts) Accumulated Additional Other Total Common Paid in Retained Comprehensive Shareholders’ Shares Stock Capital Earnings Income Equity 3,946,100 $ 395 $ 8,222 $ 20,019 $ 36 $ 28,672 Comprehensive income: Net income 4,735 4,735 Other comprehensive income, net of tax expense of $650: Unrealized holding gain on securities transferred into the available for sale category from the held to maturity category 271 Net market valuation adjustment on securities available for sale 944 Less: reclassification adjustment for gains included in net income (136 ) Other comprehensive income, net of tax 1,079 Comprehensive income $ 5,814 Exercise of stock options 89,525 8 584 592 Income tax benefit from stock options exercised 160 160 Cash dividends declared, $.4325 per share (1,732 ) (1,732 ) 4,035,625 $ 403 $ 8,966 $ 23,022 $ 1,115 $ 33,506 Comprehensive income: Net income 5,102 5,102 Other comprehensive income, net of tax benefit of $464: Net market valuation adjustment on securities available for sale (590 ) Less: reclassification adjustment for gains included in net income (180 ) Other comprehensive income, net of tax (770 ) Comprehensive income $ 4,332 Exercise of stock options 115,050 12 723 735 Income tax benefit from stock options exercised 251 251 Private placement of common shares 280,653 28 4,315 4,343 Cash dividends declared, $.4425 per share (1,921 ) (1,921 ) 4,431,328 $ 443 $ 14,255 $ 26,203 $ 345 $ 41,246
Shares | Common Stock | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Shareholders’ Equity | ||||||||||||||||||||||
Balance, January 1, 2005 | 11,358,478 | $ | 1,136 | $ | 37,716 | $ | 28,968 | $ | 294 | $ | - | $ | 68,114 | |||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||
Net income | 11,824 | 11,824 | ||||||||||||||||||||||||||
Other comprehensive income, net of tax benefit of $624: | ||||||||||||||||||||||||||||
Net market valuation adjustment on securities available for sale | (1,037 | ) | ||||||||||||||||||||||||||
Other comprehensive loss, net of tax | (1,037 | ) | ||||||||||||||||||||||||||
Comprehensive income | $ | 10,787 | ||||||||||||||||||||||||||
Restricted stock grants | 82,000 | 8 | (8 | ) | - | |||||||||||||||||||||||
Stock-based compensation | 98 | 98 | ||||||||||||||||||||||||||
Exercise of stock options | 144,718 | 14 | 824 | 838 | ||||||||||||||||||||||||
Income tax benefit from stock options exercised | 343 | 343 | ||||||||||||||||||||||||||
Cash dividends declared, $.23125 per share | (2,656 | ) | (2,656 | ) | ||||||||||||||||||||||||
Balance, December 31, 2005 | 11,585,196 | $ | 1,158 | $ | 38,973 | $ | 38,136 | $ | (743 | ) | $ | - | $ | 77,524 | ||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||
Net income | 9,247 | 9,247 | ||||||||||||||||||||||||||
Other comprehensive income, net of tax expense of $170: | ||||||||||||||||||||||||||||
Net market valuation adjustment on securities available for sale | 299 | |||||||||||||||||||||||||||
Other comprehensive income, net of tax | 299 | |||||||||||||||||||||||||||
Comprehensive income | $ | 9,546 | ||||||||||||||||||||||||||
Restricted stock grants, net of 10,000 restricted stock cancellations | 345 | |||||||||||||||||||||||||||
Stock-based compensation | 564 | 564 | ||||||||||||||||||||||||||
Registration statement costs | (5 | ) | (5 | ) | ||||||||||||||||||||||||
Exercise of stock options | 134,986 | 14 | 832 | 846 | ||||||||||||||||||||||||
Income tax benefit related to stock-based compensation | 150 | 150 | ||||||||||||||||||||||||||
Cash dividends declared, $.23625 per share | (2,763 | ) | (2,763 | ) | ||||||||||||||||||||||||
Balance, December 31, 2006 | 11,720,527 | $ | 1,172 | $ | 40,514 | $ | 44,620 | $ | (444 | ) | $ | - | $ | 85,862 |
Accumulated | ||||||||||||||||||||||||
Additional | Other | Total | ||||||||||||||||||||||
Common | Paid in | Retained | Comprehensive | Shareholders’ | ||||||||||||||||||||
Shares | Stock | Capital | Earnings | Income | Equity | |||||||||||||||||||
Balance,December 31, 2003 | 4,431,328 | $ | 443 | $ | 14,255 | $ | 26,203 | $ | 345 | $ | 41,246 | |||||||||||||
Comprehensive income: | ||||||||||||||||||||||||
Net income | 5,198 | 5,198 | ||||||||||||||||||||||
Other comprehensive income, net of tax benefit of $32: | ||||||||||||||||||||||||
Net market valuation adjustment on securities available for sale | 15 | |||||||||||||||||||||||
Less: reclassification adjustment for gains included in net income | (66 | ) | ||||||||||||||||||||||
Other comprehensive income, net of tax | (51 | ) | ||||||||||||||||||||||
Comprehensive income | $ | 5,147 | ||||||||||||||||||||||
Public offering of common shares | 1,150,000 | 115 | 23,115 | 23,230 | ||||||||||||||||||||
Exercise of stock options | 97,911 | 10 | 668 | 678 | ||||||||||||||||||||
Income tax benefit from stock options exercised | 246 | 246 | ||||||||||||||||||||||
Cash dividends declared, $.4525 per share | (2,433 | ) | (2,433 | ) | ||||||||||||||||||||
Balance,December 31, 2004 | 5,679,239 | $ | 568 | $ | 38,284 | $ | 28,968 | $ | 294 | $ | 68,114 | |||||||||||||
See accompanying notes to consolidated financial statements.
Shares | Common Stock | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Shareholders’ Equity | ||||||||||||||||||||||
Balance, December 31, 2006 | 11,720,527 | $ | 1,172 | $ | 40,514 | $ | 44,620 | $ | (444 | ) | $ | - | $ | 85,862 | ||||||||||||||
Comprehensive loss: | ||||||||||||||||||||||||||||
Net loss | (2,421 | ) | (2,421 | ) | ||||||||||||||||||||||||
Other comprehensive income, net of tax expense of $429: | ||||||||||||||||||||||||||||
Net market valuation adjustment on securities available for sale | (2,846 | ) | ||||||||||||||||||||||||||
Add: reclassification adjustment for losses included in net loss net of tax of $2,130 | 3,530 | |||||||||||||||||||||||||||
Other comprehensive income, net of tax | 684 | |||||||||||||||||||||||||||
Comprehensive loss | $ | (1,737 | ) | |||||||||||||||||||||||||
Restricted stock grants | 36,659 | 4 | (4 | ) | - | |||||||||||||||||||||||
Stock-based compensation | 648 | 648 | ||||||||||||||||||||||||||
The Bank of Venice acquisition | 944,400 | 94 | 13,861 | 13,955 | ||||||||||||||||||||||||
Exercise of stock options | 150,775 | 15 | 1,093 | 1,108 | ||||||||||||||||||||||||
Income tax benefit related to stock-based compensation | 21 | 21 | ||||||||||||||||||||||||||
Purchase of treasury stock | (69,200 | ) | (569 | ) | (569 | ) | ||||||||||||||||||||||
Cash dividends declared, $.2425 per share | (3,048 | ) | (3,048 | ) | ||||||||||||||||||||||||
Balance, December 31, 2007 | 12,783,161 | $ | 1,285 | $ | 56,133 | $ | 39,151 | $ | 240 | $ | (569 | ) | $ | 96,240 | ||||||||||||||
See accompanying notes to consolidated financial statements |
Consolidated Statements of Cash Flows Years ended December 31, 2004 2003 2002 Net income $ 5,198 $ 5,102 $ 4,735 Adjustments to reconcile net income to net cash provided by operating activities: Net amortization of investments 62 59 100 Amortization of intangible assets 295 292 297 Depreciation of premises and equipment 1,950 1,756 1,528 Loss on sale of servicing rights — — 3 Loss on sale of assets of Keys Insurance Agency, Inc. — 15 — Gain on sale of investment in ERAS Joint Venture — (202 ) (211 ) Provision for loan losses 2,455 1,586 791 Provision for losses on unfunded loan commitments 47 39 25 Deferred income tax benefit (90 ) (852 ) (249 ) Deferred net loan costs and fees (342 ) (1,031 ) (941 ) Investment securities net gains (106 ) (289 ) (218 ) Gain on sales/disposition of premises and equipment, net (2 ) (2 ) (8 ) Gains on sales of government guaranteed loans, net — (117 ) (28 ) Gain on sale of Investment Center intangible (50 ) — — Mortgage loans originated for sale (108,543 ) (111,011 ) (83,233 ) Proceeds from sales of mortgage loans 108,543 119,345 85,096 Fees on mortgage loans sold (1,852 ) (2,201 ) (1,583 ) Increase in accrued interest receivable and other assets (1,756 ) (1,690 ) (3,309 ) Increase (decrease) in accrued interest payable and other liabilities 992 (1,225 ) 2,533 Net cash provided by operating activities 6,801 9,574 5,328 Purchases of investment securities available for sale (38,368 ) (27,846 ) (24,404 ) Sales of investment securities available for sale 9,281 4,000 14,343 Repayments of principal and maturities of investment securities available for sale 3,797 24,553 9,994 Net (purchase) sale of FHLB stock (660 ) (890 ) 140 Proceeds from sales of government guaranteed loans 569 2,241 542 Proceeds from sale of Investment Center intangible 50 — — Proceeds from sale of investment in ERAS JV — 327 340 Proceeds from sale of assets of Keys Insurance Agency, Inc. — 184 — Payment on note receivable from sale of option — — 300 Net proceeds received from servicing rights sales — — 33 Loans originated or acquired, net of principal repayments (115,910 ) (97,599 ) (63,348 ) Purchase of life insurance policies (700 ) (250 ) (1,795 ) Purchases of premises and equipment (9,495 ) (3,492 ) (3,375 ) Sales of premises and equipment 100 5 31 Net cash used by investing activities (151,336 ) (98,767 ) (67,199 )
-Continued-
Years Ended December 31, | ||||||||||||
2007 | 2006 | 2005 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net (loss) income | $ | (2,421 | ) | $ | 9,247 | $ | 11,824 | |||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 3,328 | 2,642 | 2,511 | |||||||||
Provision for loan losses | 9,657 | 3,491 | 2,413 | |||||||||
Deferred income tax benefit | (4,472 | ) | (1,168 | ) | (944 | ) | ||||||
Investment securities net realized (gains) losses | 5,660 | - | (1 | ) | ||||||||
Gain on sale of merchant bankcard processing segment | - | (414 | ) | (6,697 | ) | |||||||
Stock based compensation | 646 | 564 | 98 | |||||||||
Other | (834 | ) | 162 | (496 | ) | |||||||
Mortgage loans originated for sale | (90,818 | ) | (105,248 | ) | (114,257 | ) | ||||||
Proceeds from sales of mortgage loans | 91,218 | 105,412 | 119,321 | |||||||||
Fees on mortgage loans sold | (1,434 | ) | (1,599 | ) | (1,880 | ) | ||||||
Increase in accrued interest receivable and other assets | (5,022 | ) | (2,491 | ) | (2,672 | ) | ||||||
(Increase) decrease in accrued interest payable and other liabilities | (1,738 | ) | 1,009 | 10,778 | ||||||||
Net cash provided by operating activities | 3,770 | 11,607 | 19,998 | |||||||||
Cash flows from investing activities: | ||||||||||||
Purchases of investment securities available for sale | (71,669 | ) | (42,532 | ) | (13,995 | ) | ||||||
Sales of investment securities available for sale | 5,491 | - | - | |||||||||
Repayments of principal and maturities of investment securities available for sale | 34,863 | 9,296 | 1,103 | |||||||||
Cash equivalents acquired from The Bank of Venice acquisition | 10,176 | - | - | |||||||||
Cash paid for The Bank of Venice | (888 | ) | - | - | ||||||||
Net (purchase) sale of FHLB stock | (673 | ) | (4,993 | ) | 129 | |||||||
Proceeds from sales of loans | 624 | 7,439 | - | |||||||||
Proceeds from sale of merchant bankcard processing segment | - | - | 7,250 | |||||||||
Loans originated or acquired, net of principal repayments | (14,809 | ) | (188,238 | ) | (237,371 | ) | ||||||
Purchases of premises and equipment | (5,265 | ) | (12,425 | ) | (3,928 | ) | ||||||
Proceeds from disposal of premises, equipment and intangible assets | 1,822 | 1,638 | 735 | |||||||||
Net cash used by investing activities | (40,328 | ) | (229,815 | ) | (246,077 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Net increase in federal funds purchased and securities sold under agreements to repurchase | 55,672 | 4,966 | 5,127 | |||||||||
Net increase (decrease) in FHLB advances | 10,000 | 100,000 | (10,000 | ) | ||||||||
Proceeds from long term repurchase agreements | 30,000 | - | - | |||||||||
Repayment of notes payable | (4,000 | ) | - | (1,250 | ) | |||||||
Net increase in demand, money market and savings accounts | 9,614 | 12,838 | 51,943 | |||||||||
Net (decrease) increase in time deposits | (46,828 | ) | 96,195 | 180,622 | ||||||||
Proceeds from exercise of stock options | 1,108 | 846 | 838 | |||||||||
Proceeds from issuance of trust preferred securities | - | 19,995 | - | |||||||||
Income tax benefits related to stock-based compensation | 21 | 150 | - | |||||||||
Repurchase of company common stock | (569 | ) | - | - | ||||||||
Cash dividends paid | (2,953 | ) | (2,740 | ) | (2,629 | ) | ||||||
Net cash provided by financing activities | 52,065 | 232,250 | 224,651 | |||||||||
Net increase (decrease) in cash and cash equivalents | 15,507 | 14,042 | (1,428 | ) | ||||||||
Cash and cash equivalents at beginning of year | 55,552 | 41,510 | 42,938 | |||||||||
Cash and cash equivalents at end of year | $ | 71,059 | $ | 55,552 | $ | 41,510 |
Years ended December 31, | 2004 | 2003 | 2002 | |||||||||
Cash flows from financing activities | ||||||||||||
Net increase (decrease) in federal funds purchased and securities sold under agreements to repurchase | 8,116 | (538 | ) | 3,845 | ||||||||
Net increase (decrease) in FHLB short-term advances | (5,000 | ) | 15,000 | (5,000 | ) | |||||||
Proceeds from FHLB long-term advances | 25,000 | 30,000 | — | |||||||||
Repayments of FHLB long-term advances | (30,000 | ) | (20,000 | ) | — | |||||||
Net increase in demand, money market and savings accounts | 87,894 | 25,716 | 39,081 | |||||||||
Net increase in time deposits | 46,152 | 45,414 | 27,866 | |||||||||
Proceeds from exercise of stock options | 678 | 735 | 592 | |||||||||
Proceeds from public offering of common stock | 23,230 | — | — | |||||||||
Proceeds from private placement of common stock | — | 4,343 | — | |||||||||
Cash dividends paid | (2,278 | ) | (1,866 | ) | (1,713 | ) | ||||||
Net cash provided by financing activities | 153,792 | 98,804 | 64,671 | |||||||||
Net increase in cash and cash equivalents | 9,257 | 9,611 | 2,800 | |||||||||
Cash and cash equivalents at beginning of year | 33,681 | 24,070 | 21,270 | |||||||||
Cash and cash equivalents at end of year | $ | 42,938 | $ | 33,681 | $ | 24,070 | ||||||
Supplemental disclosures of cash paid: | ||||||||||||
Interest | $ | 10,542 | $ | 9,211 | $ | 10,790 | ||||||
Income taxes | 1,945 | 3,775 | 2,741 |
See accompanying notes to consolidated financial statements.
Years Ended December 31, | ||||||||||||
2007 | 2006 | 2005 | ||||||||||
Supplemental disclosures of cash paid: | ||||||||||||
Interest | $ | 50,678 | $ | 33,983 | $ | 17,387 | ||||||
Income taxes | 4,193 | 10,330 | 3,530 | |||||||||
Supplemental disclosures of non-cash transactions: | ||||||||||||
Mortgage backed securities issued and retained subsequent to securitization of residential mortgages | $ | - | $ | - | $ | 8,509 | ||||||
Financing of sale of premises and equipment to third parties | - | 2,136 | 1,100 | |||||||||
Fair value of noncash assets acquired | 68,458 | - | - | |||||||||
Fair value of liabilities assumed | 63,882 | - | - | |||||||||
Fair value of common stock and stock options issued | 13,992 | - | - | |||||||||
See accompanying notes to consolidated financial statements |
TIB Bank is
The Banks offer a wide range of commercial and retail banking and financial services to businesses and individuals. Account services include checking, interest-bearing checking, money market, savings, certificates of deposit and individual retirement accounts. The Banks offer all types of commercial loans, including: owner-operated commercial real estate; acquisition, development and construction; income-producing properties; working capital; inventory and receivable facilities; and equipment loans. Consumer loan products include residential real estate, installment loans, home equity, home equity lines, and indirect auto dealer loans.
transactions and short term borrowings.
cost and are included in other assets on the balance sheets.
TIB Financial Corp.
Notesinterest income is reported as interest income from loans. Subsequent to Consolidated Financial Statements(in thousands except sharethe transaction, if the securities are retained by the Banks, they are reported as mortgage-backed securities and per share amounts)
interest income is reported as interest income from securities issued by U.S. Government agencies and corporations.
TIB Bank has not historically experienced losses resulting from the recourse provisions described above. Accordingly, management believes that no such provision or allowance is necessary as of December 31, 2007 or 2006.
TIB Financial Corp. and Subsidiaries
Notes to Consolidated Financial Statements(in thousands except share and per share amounts)
Goodwill and Other
Goodwill results from business acquisitions and represents the excess of the purchase price over the fair value of acquired tangible
Other intangible assets include amounts for servicing rights on government guaranteed loans and core deposit base premiums and customer relationship intangibles arising from branch acquisitions and are initially measured at fair value. Servicing rights are being amortized over the expected life of the related loan. The deposit base premiumsintangibles are being amortized using the straight–linestraight-line method over an estimated life oflives ranging from 10 to 15 years.
Long-term
sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement, if applicable. Prior to the adoption of EITF 06-5, the Company recorded owned life insurance at its cash surrender value.
TIB Financial Corp. and Subsidiaries
options and restricted shares computed using the treasury stock method.Notes to Consolidated Financial Statements(in thousands except share and per share amounts)options. 2004 2003 2002 Weighted average number of common shares outstanding: Basic 5,309,860 4,257,224 3,992,775 Dilutive effect of options outstanding 169,836 178,637 152,080 Diluted 5,479,696 4,435,861 4,144,855
2007 | 2006 | 2005 | ||||||||||
Weighted average number of common shares outstanding: | ||||||||||||
Basic | 12,299,093 | 11,609,394 | 11,423,948 | |||||||||
Dilutive effect of options outstanding | - | 266,010 | 376,944 | |||||||||
Dilutive effect of restricted shares | - | 14,202 | - | |||||||||
Diluted | 12,299,093 | 11,889,606 | 11,800,892 | |||||||||
Employee
2004 | 2003 | 2002 | ||||||||||
Net income, as reported | $ | 5,198 | $ | 5,102 | $ | 4,735 | ||||||
Stock-based compensation expense determined under fair value based method, net of tax | 215 | 173 | 157 | |||||||||
Pro forma net income | 4,983 | $ | 4,929 | $ | 4,578 | |||||||
Basic earnings per share as reported | $ | 0.98 | $ | 1.20 | $ | 1.19 | ||||||
Pro forma basic earnings per share | 0.94 | 1.16 | 1.15 | |||||||||
Diluted earnings per share as reported | 0.95 | 1.15 | 1.14 | |||||||||
Pro forma diluted earnings per share | 0.91 | 1.11 | 1.10 |
The fair value of each option is estimated as ofStock Based Compensation, for the date of grant using the Black-Scholes Option Pricing Model and the following weighted average assumptions for options granted in the years endedyear ending December 31, :2005.
2004 | 2003 | 2002 | ||||||||||
Dividend yield | 2.3 | % | 2.7 | % | 3.2 | % | ||||||
Risk-free interest rate | 4.0% to 4.1% | 4.0% to 4.2% | 4.4% to 5.4% | |||||||||
Expected option life | 9 years | 9 years | 9.2 years | |||||||||
Volatility | .33 | .31 | .29 | |||||||||
Weighted average fair value of options granted during year | $ | 8.16 | $ | 5.83 | $ | 3.69 |
TIB Financial Corp. and Subsidiaries
Notes to Consolidated Financial Statements 2005 Net income, as reported $ 11,824 Stock-based compensation expense determined under fair value based method, net of tax 268 Pro forma net income $ 11,556 Basic earnings per share as reported $ 1.04 Pro forma basic earnings per share 1.02 Diluted earnings per share as reported 1.00 Pro forma diluted earnings per share 0.99
Internal
per share amounts)
During 2004,
operations or liquidity.
realized income tax benefit from dividends on those awards should be included in the pool of excess tax benefits available to absorb tax deficiencies on share-based payment awards (as described in paragraphs 62 and 63 of Statement 123(R)). This issue is effective for fiscal years beginning after December 15, 2007. Adoption on January 1, 2008, as required, did not have a material effect on the Company’s financial condition, results of operations or liquidity.
In March 2004, the SEC issued Staff Accounting Bulletin No. 105, “Application of Accounting Principles to Loan Commitments” (SAB 105). This bulletin was issued to inform registrants of the SEC’s view that the fair value of the recorded loan commitments, which are required to follow derivative accounting under FAS No. 133, “Accounting for Derivative Instruments and Hedging Activities,” should not consider the expected future cash flows related to the associated servicing of the future loan. The provisions of SAB 105 must be applied to loan commitments accounted for as derivatives that are entered into after March 31, 2004. The adoption of this Staff Accounting Bulletin did not have a material impact on the financial condition, the results of operations, or liquidity of the Company.
liquidity.
In 1998, the Parent Company’s subsidiary, TIB Software and Services, Inc., acquired a 30 percent interest in ERAS Joint Venture (the “Venture”), a general partnership, in exchange for consideration of $791. The Venture’s primary business is item processing and the design, development, installation and maintenance of accounting software for financial institutions. Goodwill associated with the transaction totaled $638 and was being amortized over a period of ten years through December 31, 2001, at which time the amortization was discontinued. Through December 31, 2001, the investment in the Venture was accounted for using the equity method. Discontinued Operations
ERAS Joint Venture is the Bank’s item processor. Payments of approximately $577, $579 and $483 were made by the Bank to the Venture in 2004, 2003, and 2002, respectively. Of the amount paid in 2003, approximately $249 was paid to the Venture through the sale date of May 29, 2003.
TIB Financial Corp. and Subsidiaries
Notes to Consolidated Financial Statements(in thousands except share and per share amounts)
On October 31, 2000, the Company purchased Keys Insurance Agency of Monroe County, Inc. which was 100% owned by a company director. Keys Insurance Agency, Inc. (the new name subsequent to the purchase) had three offices in the Florida Keys and brokered a full line of commercial and residential hazard insurance coverages as well as life and health insurance and annuities. The purchase price for the net assets of the agency was $1,870 which consisted primarily of intangible assets. The consideration consisted of $220 of Company common stock (21,463 shares) and $1,650 in cash (paid at closing). Under the purchase agreement, annual cash payments of $110 were to be made following each of the first three anniversaries of the closing date, subject to the agency achieving certain earnings thresholds. Any of this additional consideration that was paid at the end of each contingency period would at that time be recorded as goodwill and increase the total recorded purchase price of the agency. No amount was required to be paid in 2002 or 2003. This acquisition was recorded using the purchase method of accounting.
On September 25, 2001, Keys Insurance Agency, Inc. purchased BonData Group Limited, Inc. a Ft Myers, Florida based insurance agency specializing in surety bond underwriting and placement. Total consideration paid at closing for the agency was $273. This was comprised of approximately $68 in the Company’s common stock (5,640 shares) and approximately $205 in cash. Under the purchase agreement, annual cash payments of $24 were to be made following each of the first two anniversaries of the closing date, subject to the agency achieving certain earnings thresholds. Any of this additional consideration that was paid at the end of each contingency period, would at that time be recorded as goodwill and increase the total recorded purchase price of the agency. No amount was required to be paid in 2002 or 2003. This acquisition was recorded using the purchase method of accounting.
On August 15, 2003,30, 2005, the Company closed the sale of Keys Insurance Agency,its merchant bankcard processing business segment to NOVA Information Systems, Inc., a wholly owned subsidiary of (“NOVA”). NOVA paid $7,250 in cash at the closing resulting in the Company to Derek Martin-Vegue and his partner. Mr. Martin-Vegue isrecognizing a former directorgain of $6,697 on the Company and TIB Bank.transaction. The transaction was structured as a sale of the agencysegment assets. The buyer paid $2,205 in cash at the closing. Of the cash payment at closing, proceeds of $2,021 were pursuant to a loan from TIB Bank (a subsidiary of the Company) to the buyer. The Company recognized a loss of $15 on the transaction. Therefore,Accordingly, the results of operations of Keys Insurance Agency, Inc.the Company’s merchant bankcard processing business segment are included in the Consolidated Statements of Income as “discontinued operations” (Note 20). In March 2004,connection with the sale, the Company filed Articlesentered into a Marketing and Sales Alliance Agreement and a Non-Competition Agreement. The Marketing and Sales Alliance Agreement provides for the exclusive referral by the Bank to NOVA of Dissolution dissolving Keys Insurance Agency, Inc.
On December 15, 2004,Bank customers seeking merchant card processing services, and on-going, active promotion of NOVA’s services to Bank customers. The Marketing and Sales Alliance Agreement has an initial term of ten years, and may be extended by the parties. The Non-Competition Agreement prohibits the Company closedfrom competing with NOVA to provide merchant card processing services, and prohibits the Bank from soliciting for such services (other than to be provided by NOVA) any merchants that had a merchant services relationship with the Bank at the time of the sale, and any merchants subsequently referred to NOVA. The Non-Competition Agreement is effective for so long as the Marketing and Sales Alliance Agreement is in effect. The non-solicitation covenant extends for two years following termination of the Marketing and Sales Alliance Agreement.
Years ended December 31, | 2007 | 2006 | 2005 | |||||||||
Other income | $ | - | $ | 414 | $ | 12,865 | ||||||
Depreciation and amortization | - | - | (8 | ) | ||||||||
Other expense | - | - | (5,227 | ) | ||||||||
Pretax income from discontinued operations | $ | - | $ | 414 | $ | 7,630 | ||||||
Cash and cash equivalents | $ | 10,176 | ||
Securities available for sale | 2,292 | |||
Federal Home Loan Bank Stock and other equity securities | 496 | |||
Loans, net | 55,373 | |||
Fixed assets | 2,714 | |||
Goodwill | 4,580 | |||
Core deposit intangible | 2,150 | |||
Customer relationship intangible | 250 | |||
Other | 605 | |||
Total assets acquired | 78,636 | |||
Deposits | 57,715 | |||
FHLB advances | 5,000 | |||
Other liabilities | 1,167 | |||
Total liabilities assumed | 63,882 | |||
Total consideration paid for The Bank of Venice | $ | 14,754 | ||
per share amounts)
TIB Financial Corp. and Subsidiaries
Notes to Consolidated Financial Statements(in thousands except share and per share amounts)
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||
December 31, 2004 | Cost | Gains | Losses | Fair Value | ||||||||||||
U.S. Treasury securities | $ | 5,178 | $ | 5 | $ | 29 | $ | 5,154 | ||||||||
U.S. Government agencies and corporations | 54,228 | 104 | 869 | 53,463 | ||||||||||||
States and political subdivisions- tax exempt | 9,596 | 246 | 26 | 9,816 | ||||||||||||
States and political subdivision - taxable | 2,862 | 17 | 23 | 2,856 | ||||||||||||
Marketable equity securities | 3,000 | 987 | — | 3,987 | ||||||||||||
Mortgage-backed securities | 2,473 | 58 | — | 2,531 | ||||||||||||
$ | 77,337 | $ | 1,417 | $ | 947 | $ | 77,807 | |||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||
December 31, 2003 | Cost | Gains | Losses | Fair Value | ||||||||||||
U.S. Treasury securities | $ | 209 | $ | 9 | $ | — | $ | 218 | ||||||||
U.S. Government agencies and corporations | 31,357 | 425 | 663 | 31,119 | ||||||||||||
States and political subdivisions- tax exempt | 8,838 | 378 | 59 | 9,157 | ||||||||||||
States and political subdivision - taxable | 3,559 | 42 | 101 | 3,500 | ||||||||||||
Marketable equity securities | 3,000 | 395 | — | 3,395 | ||||||||||||
Mortgage-backed securities | 5,041 | 128 | 1 | 5,168 | ||||||||||||
$ | 52,004 | $ | 1,377 | $ | 824 | $ | 52,557 | |||||||||
December 31, 2007 | Amortized Cost | Unrealized Gains | Unrealized Losses | Estimated Fair Value | ||||||||||||
U.S. Government agencies and corporations | $ | 72,482 | $ | 1,245 | $ | 66 | $ | 73,661 | ||||||||
States and political subdivisions—tax exempt | 9,629 | 6 | 51 | 9,584 | ||||||||||||
States and political subdivision—taxable | 2,495 | 1 | 21 | 2,475 | ||||||||||||
Marketable equity securities | 1,224 | - | - | 1,224 | ||||||||||||
Mortgage-backed securities | 60,161 | 295 | 296 | 60,160 | ||||||||||||
Corporate bonds | 2,865 | - | 100 | 2,765 | ||||||||||||
Collateralized debt obligations | 11,110 | - | 622 | 10,488 | ||||||||||||
$ | 159,966 | $ | 1,547 | $ | 1,156 | $ | 160,357 | |||||||||
December 31, 2006 | Amortized Cost | Unrealized Gains | Unrealized Losses | Estimated Fair Value | ||||||||||||
U.S. Treasury securities | $ | 5,087 | $ | - | $ | 125 | $ | 4,962 | ||||||||
U.S. Government agencies and corporations | 84,014 | 278 | 1,294 | 82,998 | ||||||||||||
States and political subdivisions—tax exempt | 10,818 | 22 | 98 | 10,742 | ||||||||||||
States and political subdivision—taxable | 2,578 | 12 | - | 2,590 | ||||||||||||
Marketable equity securities | 3,000 | 484 | - | 3,484 | ||||||||||||
Mortgage-backed securities | 16,428 | 94 | 8 | 16,514 | ||||||||||||
Collateralized debt obligations | 9,996 | - | 87 | 9,909 | ||||||||||||
$ | 131,921 | $ | 890 | $ | 1,612 | $ | 131,199 | |||||||||
December 31, 2004 | Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||
Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | |||||||||||||||||||
Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | |||||||||||||||||||
U.S. Treasury securities | $ | 5,046 | $ | 29 | $ | — | $ | — | $ | 5,046 | $ | 29 | ||||||||||||
U.S. Government agencies and corporations | 24,858 | 201 | 20,379 | 668 | 45,237 | 869 | ||||||||||||||||||
States and political subdivisions – tax exempt | 2,421 | 22 | 230 | 4 | 2,651 | 26 | ||||||||||||||||||
States and political subdivision - taxable | 2,312 | 19 | 131 | 4 | 2,443 | 23 | ||||||||||||||||||
Total temporarily impaired | $ | 34,637 | $ | 271 | $ | 20,740 | $ | 676 | $ | 55,377 | $ | 947 | ||||||||||||
December 31, 2003 | Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||
Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | |||||||||||||||||||
Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | |||||||||||||||||||
U.S. Government agencies and corporations | $ | 20,396 | $ | 663 | $ | — | $ | — | $ | 20,396 | $ | 663 | ||||||||||||
States and political subdivisions - tax exempt | 3,055 | 59 | — | — | 3,055 | 59 | ||||||||||||||||||
States and political subdivision - taxable | 3,000 | 101 | — | — | 3,000 | 101 | ||||||||||||||||||
Mortgage-backed securities | 132 | 1 | — | — | 132 | 1 | ||||||||||||||||||
Total temporarily impaired | $ | 26,583 | $ | 824 | $ | — | $ | — | $ | 26,583 | $ | 824 | ||||||||||||
Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||
December 31, 2007 | Estimated Fair Value | Unrealized Losses | Estimated Fair Value | Unrealized Losses | Estimated Fair Value | Unrealized Losses | ||||||||||||||||||
U.S. Government agencies and corporations | $ | - | $ | - | $ | 13,577 | $ | 66 | $ | 13,577 | $ | 66 | ||||||||||||
States and political subdivisions—tax exempt | 2,814 | 9 | 5,753 | 42 | 8,567 | 51 | ||||||||||||||||||
States and political subdivisions—taxable | 2,299 | 21 | - | - | 2,299 | 21 | ||||||||||||||||||
Mortgage-backed securities | 30,254 | 295 | 1,072 | 1 | 31,326 | 296 | ||||||||||||||||||
Corporate bonds | 2,765 | 100 | - | - | 2,765 | 100 | ||||||||||||||||||
Collateralized debt obligations | 4,378 | 622 | - | - | 4,378 | 622 | ||||||||||||||||||
Total temporarily impaired | $ | 42,510 | $ | 1,047 | $ | 20,402 | $ | 109 | $ | 62,912 | $ | 1,156 | ||||||||||||
Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||
December 31, 2006 | Estimated Fair Value | Unrealized Losses | Estimated Fair Value | Unrealized Losses | Estimated Fair Value | Unrealized Losses | ||||||||||||||||||
U.S. Treasury securities | $ | 101 | $ | - | $ | 4,861 | $ | 125 | $ | 4,962 | $ | 125 | ||||||||||||
U.S. Government agencies and corporations | - | - | 60,539 | 1,294 | 60,539 | 1,294 | ||||||||||||||||||
States and political subdivisions—tax exempt | 3,996 | 25 | 3,823 | 73 | 7,819 | 98 | ||||||||||||||||||
Mortgage-backed securities | - | - | 1,084 | 8 | 1,084 | 8 | ||||||||||||||||||
Collateralized debt obligations | 9,909 | 87 | - | - | 9,909 | 87 | ||||||||||||||||||
Total temporarily impaired | $ | 14,006 | $ | 112 | $ | 70,307 | $ | 1,500 | $ | 84,313 | $ | 1,612 | ||||||||||||
TIB Financial Corp. and Subsidiaries
Notes to Consolidated Financial Statements(in thousands except share and per share amounts)
Investment Securities | ||||||||||||
Available for Sale | ||||||||||||
Amortized | Estimated | |||||||||||
December 31, 2004 | Cost | Fair Value | ||||||||||
December 31, 2007 | ||||||||||||
Due in one year or less | $ | — | $ | — | $ | 10,073 | ||||||
Due after one year through five years | 41,010 | 40,807 | 26,873 | |||||||||
Due after five years through ten years | 26,184 | 25,860 | 32,666 | |||||||||
Due after ten years | 4,670 | 4,622 | 29,361 | |||||||||
Marketable equity securities | 3,000 | 3,987 | 1,224 | |||||||||
Mortgage-backed securities | 2,473 | 2,531 | 60,160 | |||||||||
$ | 160,357 | |||||||||||
$ | 77,337 | $ | 77,807 | |||||||||
2008.
2004 | 2003 | 2002 | ||||||||||
Proceeds | $ | 9,281 | $ | 4,000 | $ | 14,343 | ||||||
Gross gains | 146 | 280 | 200 | |||||||||
Gross losses | (43 | ) | — | — |
2007 | 2006 | 2005 | ||||||||||
Proceeds | $ | 5,491 | $ | - | $ | - | ||||||
Gross gains | 1 | - | - | |||||||||
Gross losses | - | - | - | |||||||||
Subsidiaries
December 31, | 2004 | 2003 | ||||||
Real estate mortgage loans: | ||||||||
Commercial | $ | 351,346 | $ | 297,221 | ||||
Residential | 67,204 | 60,104 | ||||||
Farmland | 4,971 | 2,317 | ||||||
Construction and vacant land | 49,815 | 32,089 | ||||||
Commercial and agricultural loans | 64,622 | 63,624 | ||||||
Indirect auto dealer loans | 91,890 | 59,437 | ||||||
Home equity loans | 13,856 | 12,574 | ||||||
Other consumer loans | 9,817 | 11,232 | ||||||
Total loans | 653,521 | 538,598 | ||||||
Net deferred loan costs | 2,157 | 1,815 | ||||||
Loans, net of deferred loan costs | $ | 655,678 | $ | 540,413 | ||||
TIB Financial Corp. and Subsidiaries
Notes to Consolidated Financial StatementsDecember 31, 2007 2006 Real estate mortgage loans: Commercial $ 612,084 $ 546,276 Residential 112,138 82,243 Farmland 11,361 24,210 Construction and vacant land 168,595 157,672 Commercial and agricultural loans 72,076 84,905 Indirect auto dealer loans 117,439 141,552 Home equity loans 21,820 17,199 Other consumer loans 12,154 9,795 Total loans 1,127,667 1,063,852 Net deferred loan costs 1,489 1,616 Loans, net of deferred loan costs $ 1,129,156 $ 1,065,468
Highlands counties of Florida.
During 2001, upon completion of foreclosure on the underlying collateral, the non-guaranteed portion of this loan and interest accrued through the foreclosure date was reclassified into other real estate ($550) and other assets (approximately $1,886) based on the fair value of the underlying-collateral.
The Bank is
The Bank sold certain pieces of equipment associated with the lumber mill property. Proceeds from the sales were used to reduce the other real estate amount and liquidation cost amounts recorded on the Bank’s books. In 2003, the Bank wrote down the carrying amount of the other real estate by $262 based upon anticipated proceeds from the sale of the property and remaining equipment.
Years ended December 31, | 2004 | 2003 | 2002 | |||||||||
Balance, beginning of year | $ | 5,216 | $ | 4,272 | $ | 3,675 | ||||||
Provision for loan losses charged to expense | 2,455 | 1,586 | 791 | |||||||||
Loans charged off | (1,487 | ) | (667 | ) | (302 | ) | ||||||
Recoveries of loans previously charged off | 59 | 25 | 108 | |||||||||
Balance, end of year | $ | 6,243 | $ | 5,216 | $ | 4,272 | ||||||
Years ended December 31, | 2007 | 2006 | 2005 | |||||||||
Balance, beginning of year | $ | 9,581 | $ | 7,546 | $ | 6,243 | ||||||
Acquisition of The Bank of Venice | 667 | - | - | |||||||||
Provision for loan losses charged to expense | 9,657 | 3,491 | 2,413 | |||||||||
Loans charged off | (5,202 | ) | (1,573 | ) | (1,219 | ) | ||||||
Recoveries of loans previously charged off | 270 | 117 | 109 | |||||||||
Balance, end of year | $ | 14,973 | $ | 9,581 | $ | 7,546 | ||||||
Years ended December 31, | 2007 | 2006 | ||||||
Year end loans with no specifically allocated allowance for loan losses | $ | 4,448 | $ | 519 | ||||
Year end loans with allocated allowance for loan losses | 3,748 | 142 | ||||||
Total | $ | 8,196 | $ | 661 | ||||
Amount of the allowance for loan losses allocated | $ | 1,401 | $ | 45 | ||||
2007 | 2006 | 2005 | ||||||||||
Average of impaired loans during the year | $ | 4,464 | $ | 363 | $ | 599 | ||||||
Interest income recognized during impairment | 40 | 21 | 41 | |||||||||
Cash basis interest income recognized | 27 | 6 | - | |||||||||
Impaired loans are as follows:
Years ended December 31, | 2004 | 2003 | ||||||
Year end loans with no allocated allowance for loan losses | $ | 2,018 | $ | 2,737 | ||||
Year end loans with allocated allowance for loan losses | — | — | ||||||
Total | $ | 2,018 | $ | 2,737 | ||||
Amount of the allowance for loan losses allocated | $ | — | $ | — | ||||
2004 | 2003 | 2002 | ||||||||||
Average of impaired loans during the year | $ | 1,005 | $ | 1,088 | $ | 416 | ||||||
Interest income recognized during impairment | 64 | 72 | 6 | |||||||||
Cash basis interest income recognized | — | — | 3 | |||||||||
Years ended December 31, | 2004 | 2003 | ||||||
Nonaccrual loans | $ | 704 | $ | 390 | ||||
Loans past due over 90 days still on accrual (a) | — | — | ||||||
Years ended December 31, | 2007 | 2006 | ||||||
Nonaccrual loans (a) | $ | 16,086 | $ | 4,223 | ||||
Loans past due over 90 days still on accrual (a) | - | - | ||||||
(a) Non-performing loans at December 31, 2004 In February 2008, a $13.5 million commercial land and 2003, excludesdevelopment loan matured and was placed on nonaccrual because the $1,600 loan discussed previously that is guaranteed for both principal and interest byborrowers were unable to service the USDA.
debt.
(a) | Non-performing loans includes the $1,600 loan discussed previously which is guaranteed for both principal and interest by a U.S. government agency. We discontinued accruing interest on this loan during December 2006 pursuant to a ruling made by the agency. |
Estimated Useful | ||||||||||||
December 31, | 2004 | 2003 | Life | |||||||||
Land | $ | 9,668 | $ | 5,999 | ||||||||
Buildings and leasehold improvements | 17,227 | 15,216 | 4 to 40 years | |||||||||
Furniture, fixtures and equipment | 13,354 | 11,127 | 1 to 40 years | |||||||||
Construction in progress | 151 | 691 | ||||||||||
40,400 | 33,033 | |||||||||||
Less accumulated depreciation | (12,841 | ) | (11,960 | ) | ||||||||
Premises and equipment, net | $ | 27,559 | $ | 21,073 | ||||||||
TIB Financial Corp.December 31, 2007 2006 Estimated Useful Life Land $ 11,197 $ 10,712 Buildings and leasehold improvements 23,962 16,591 1 to 40 years Furniture, fixtures and equipment 14,050 14,261 1 to 40 years Construction in progress 3,498 7,723 52,707 49,287 Less accumulated depreciation (14,423 ) (15,185 ) Premises and equipment, net $ 38,284 $ 34,102
Notes to Consolidated Financial Statements(in thousands except share2005, was approximately $2,887, $2,354, and per share amounts)
$2,219, respectively.
Years ending December 31, | ||||
2005 | $ | 591 | ||
2006 | 542 | |||
2007 | 499 | |||
2008 | 448 | |||
2009 | 312 | |||
Thereafter | 660 | |||
$ | 3,052 | |||
Years Ending December 31, | ||||
2008 | $ | 1,273 | ||
2009 | 862 | |||
2010 | 799 | |||
2011 | 755 | |||
2012 | 425 | |||
Thereafter | 2,283 | |||
$ | 6,397 | |||
2004 | 2003 | |||||||
Beginning of the year | $ | 155 | $ | 2,234 | ||||
Goodwill associated with sale of remaining interest of Investment in ERAS JV | — | (69 | ) | |||||
Goodwill associated with sale of Keys Insurance Agency, Inc. | — | (2,010 | ) | |||||
Balance at end of year | $ | 155 | $ | 155 | ||||
Amortized intangible
2007 | 2006 | |||||||
Beginning of the year | $ | 106 | $ | 106 | ||||
Goodwill associated with the acquisition of The Bank of Venice | 4,580 | - | ||||||
Balance at end of year | $ | 4,686 | $ | 106 | ||||
2004 | 2003 | |||||||||||||||||||||||
Gross | Gross | |||||||||||||||||||||||
Carrying | Accumulated | Net Book | Carrying | Accumulated | Net Book | |||||||||||||||||||
Amount | Amortization | Value | Amount | Amortization | Value | |||||||||||||||||||
Core deposit intangible | $ | 2,941 | $ | 1,569 | $ | 1,372 | $ | 2,941 | $ | 1,284 | $ | 1,657 | ||||||||||||
Excess servicing fees | 89 | 69 | 20 | 89 | 59 | 30 | ||||||||||||||||||
Total | $ | 3,030 | $ | 1,638 | $ | 1,392 | $ | 3,030 | $ | 1,343 | $ | 1,687 | ||||||||||||
2007 | 2006 | |||||||||||||||||||||||
December 31, | Gross Carrying Amount | Accumulated Amortization | Net Book Value | Gross Carrying Amount | Accumulated Amortization | Net Book Value | ||||||||||||||||||
Core deposit intangible | $ | 5,091 | $ | 2,564 | $ | 2,527 | $ | 2,941 | $ | 2,136 | $ | 805 | ||||||||||||
Customer relationship intangible | 250 | 11 | 239 | - | - | - | ||||||||||||||||||
Other | 26 | 20 | 6 | 36 | 28 | 8 | ||||||||||||||||||
Total | $ | 5,367 | $ | 2,595 | $ | 2,772 | $ | 2,977 | $ | 2,164 | $ | 813 | ||||||||||||
TIB Financial Corp. and Subsidiaries
Notes to Consolidated Financial Statements(in thousands except share and per share amounts)
Years ending December 31, | ||||
2005 | $ | 290 | ||
2006 | 290 | |||
2007 | 286 | |||
2008 | 249 | |||
2009 | 141 |
Years Ending December 31, | ||||
2008 | 481 | |||
2009 | 372 | |||
2010 | 366 | |||
2011 | 233 | |||
2012 | 233 | |||
Years ending December 31, | ||||
2005 | $ | 168,385 | ||
2006 | 48,402 | |||
2007 | 10,324 | |||
2008 | 17,669 | |||
2009 | 6,397 | |||
Thereafter | 5 | |||
$ | 251,182 | |||
Years Ending December 31, | ||||
2008 | $ | 409,603 | ||
2009 | 81,602 | |||
2010 | 10,489 | |||
2011 | 8,898 | |||
2012 | 2,162 | |||
$ | 512,754 | |||
Amount | Issuance Date | Maturity Date | Repricing Frequency | Rate at December 31, 2007 | |||||||
$ | 50,000 | February 2007 | February 2010 (a) | Fixed | 4.65 | % | |||||
50,000 | December 2006 | December 2011 (a) | Fixed | 4.18 | % | ||||||
25,000 | August 2006 | February 2008 | Quarterly | 5.01 | % | ||||||
10,000 | September 2007 | September 2012 (a) | Fixed | 4.05 | % | ||||||
5,000 | March 2007 | March 2012 (a) | Fixed | 4.29 | % | ||||||
maturity date.
Years ended December 31, | 2004 | 2003 | ||||||||||||||
Year Ended December 31, | 2007 | 2006 | ||||||||||||||
Federal funds purchased: | ||||||||||||||||
Balance: | ||||||||||||||||
Average daily outstanding | $ | 460 | $ | 142 | $ | 190 | $ | 915 | ||||||||
Year-end outstanding | — | — | 157 | - | ||||||||||||
Maximum month-end outstanding | 4,519 | — | 11,024 | 13,042 | ||||||||||||
Rate: | ||||||||||||||||
Weighted average for year | 2.2 | % | 1.7 | % | 5.7 | % | 5.9 | % | ||||||||
Weighted average interest rate at December 31 | n/a | n/a | 5.3 | % | n/a | |||||||||||
Securities sold under agreements to repurchase: | ||||||||||||||||
Balance: | ||||||||||||||||
Average daily outstanding | $ | 5,142 | $ | 3,064 | $ | 41,074 | $ | 20,506 | ||||||||
Year-end outstanding | 9,947 | 2,943 | 75,861 | 20,352 | ||||||||||||
Maximum month-end outstanding | 9,947 | 4,579 | 75,861 | 31,451 | ||||||||||||
Rate: | ||||||||||||||||
Weighted average for year | 1.3 | % | 1.0 | % | 4.2 | % | 4.7 | % | ||||||||
Weighted average interest rate at December 31 | 2.1 | % | 0.8 | % | 3.9 | % | 4.4 | % | ||||||||
Treasury, tax and loan note option: | ||||||||||||||||
Balance: | ||||||||||||||||
Average daily outstanding | $ | 647 | $ | 633 | $ | 1,127 | $ | 1,051 | ||||||||
Year-end outstanding | 2,210 | 1,098 | 1,904 | 1,898 | ||||||||||||
Maximum month-end outstanding | 2,210 | 1,700 | 1,904 | 1,898 | ||||||||||||
Rate: | ||||||||||||||||
Weighted average for year | 1.1 | % | 0.9 | % | 4.6 | % | 4.4 | % | ||||||||
Weighted average interest rate at December 31 | 1.9 | % | 0.7 | % | 3.6 | % | 5.0 | % | ||||||||
Advances from the Federal Home Loan Bank-Short Term: | ||||||||||||||||
Balance: | ||||||||||||||||
Average daily outstanding | $ | 9,090 | $ | 4,647 | $ | 1,068 | $ | 19,274 | ||||||||
Year-end outstanding | 10,000 | 15,000 | - | - | ||||||||||||
Maximum month-end outstanding | 25,000 | 15,000 | $ | 10,000 | $ | 50,000 | ||||||||||
Rate: | ||||||||||||||||
Weighted average for year | 1.8 | % | 1.3 | % | 5.2 | % | 5.5 | % | ||||||||
Weighted average interest rate at December 31 | 2.4 | % | 1.2 | % | n/a | n/a | ||||||||||
Advances from the Federal Home Loan Bank-Long Term: | ||||||||||||||||
Balance: | ||||||||||||||||
Average daily outstanding | $ | 20,246 | $ | 16,959 | $ | 131,123 | $ | 45,137 | ||||||||
Year-end outstanding | 25,000 | 30,000 | 140,000 | 125,000 | ||||||||||||
Maximum month-end outstanding | 25,000 | 30,000 | 140,000 | 125,000 | ||||||||||||
Rate: | ||||||||||||||||
Weighted average for year | 1.6 | % | 1.3 | % | 4.7 | % | 5.2 | % | ||||||||
Weighted average interest rate at December 31 | 2.4 | % | 1.2 | % | 4.5 | % | 4.9 | % | ||||||||
The
2005 as the Company elected not to renew the line upon maturity.
Amount | Terminable Date | Maturity Date | Rate at December 31, 2007 | ||||||
$ | 20,000 | September 2008 | September 2010 | 4.18 | % | ||||
10,000 | December 2008 | December 2010 | 3.46 | % | |||||
On January 1, 2007, the remaining $4,000 was repaid at par.
per share amounts)
Fixed Rate | Floating Rate | Total | ||||||||||
Due in 2008 | $ | - | $ | - | $ | - | ||||||
Due in 2009 | - | - | - | |||||||||
Due in 2010 | 30,000 | - | 30,000 | |||||||||
Due in 2011 | - | - | - | |||||||||
Thereafter | 8,000 | 25,000 | 33,000 | |||||||||
Total long-term debt | $ | 38,000 | $ | 25,000 | $ | 63,000 | ||||||
Contractual Maturities
At December 31, 2004, the contractual maturities of long-term debt were as follows:
Fixed Rate | Floating Rate | Total | ||||||||||
Due in 2005 | $ | — | $ | — | $ | — | ||||||
Due in 2006 | — | — | — | |||||||||
Due in 2007 | — | — | — | |||||||||
Due in 2008 | — | — | — | |||||||||
Due in 2009 | — | — | — | |||||||||
Thereafter | 13,250 | 5,000 | 18,250 | |||||||||
Total long-term debt | $ | 13,250 | $ | 5,000 | $ | 18,250 |
Years ended December 31, | 2004 | 2003 | 2002 | |||||||||
Current income tax provision: | ||||||||||||
Federal | $ | 2,331 | $ | 3,049 | $ | 2,290 | ||||||
State | 431 | 550 | 422 | |||||||||
2,762 | 3,599 | 2,712 | ||||||||||
Deferred tax benefit: | ||||||||||||
Federal | (76 | ) | (722 | ) | (210 | ) | ||||||
State | (14 | ) | (130 | ) | (39 | ) | ||||||
(90 | ) | (852 | ) | (249 | ) | |||||||
Total | $ | 2,672 | $ | 2,747 | $ | 2,463 | ||||||
Years ended December 31, | 2007 | 2006 | 2005 | |||||||||
Current income tax provision: | ||||||||||||
Federal | $ | 2,798 | $ | 5,386 | $ | 3,985 | ||||||
State | 436 | 803 | 886 | |||||||||
3,234 | 6,189 | 4,871 | ||||||||||
Deferred tax benefit: | ||||||||||||
Federal | (4,334 | ) | (1,018 | ) | (805 | ) | ||||||
State | (675 | ) | (150 | ) | (139 | ) | ||||||
(5,009 | ) | (1,168 | ) | (944 | ) | |||||||
Total | $ | (1,775 | ) | $ | 5,021 | $ | 3,927 | |||||
Years ended December 31, | 2004 | 2003 | 2002 | |||||||||
Pretax income | $ | 7,870 | $ | 7,849 | $ | 7,198 | ||||||
Income taxes computed at Federal statutory tax rate | $ | 2,676 | $ | 2,669 | $ | 2,448 | ||||||
Effect of: | ||||||||||||
Tax-exempt income, net | (340 | ) | (275 | ) | (213 | ) | ||||||
State income taxes, net | 275 | 277 | 253 | |||||||||
Other, net | 61 | 76 | (25 | ) | ||||||||
Total | $ | 2,672 | $ | 2,747 | $ | 2,463 | ||||||
Years ended December 31, | 2007 | 2006 | 2005 | |||||||||
Pretax income from continuing operations | $ | (4,196 | ) | $ | 14,014 | $ | 11,119 | |||||
Income taxes computed at Federal statutory tax rate | $ | (1,427 | ) | $ | 4,815 | $ | 3,780 | |||||
Effect of: | ||||||||||||
Tax-exempt income, net | (322 | ) | (330 | ) | (324 | ) | ||||||
State income taxes, net | (156 | ) | 423 | 390 | ||||||||
Stock based compensation expense, net | 92 | 80 | - | |||||||||
Other, net | 38 | 33 | 81 | |||||||||
Total | $ | (1,775 | ) | $ | 5,021 | $ | 3,927 | |||||
December 31, | 2004 | 2003 | ||||||
Allowance for loan losses | $ | 2,475 | $ | 1,959 | ||||
Core deposit intangible | 212 | 179 | ||||||
Deferred compensation | 555 | 339 | ||||||
Other | 116 | 109 | ||||||
Total gross deferred tax assets | 3,358 | 2,586 | ||||||
Accumulated depreciation | (871 | ) | (594 | ) | ||||
Deferred loan costs | (401 | ) | — | |||||
Goodwill | (17 | ) | (11 | ) | ||||
Gain on building swap | (68 | ) | (70 | ) | ||||
Net unrealized gains on securities available for sale | (177 | ) | (208 | ) | ||||
Total gross deferred tax liabilities | (1,534 | ) | (883 | ) | ||||
Net deferred tax asset | $ | 1,824 | $ | 1,703 | ||||
Years ended December 31, | 2007 | 2006 | ||||||
Allowance for loan losses | $ | 5,910 | $ | 3,848 | ||||
Recognized impairment losses on available for sale securities | 2,184 | - | ||||||
Core deposit intangibles | 318 | 285 | ||||||
Deferred compensation | 1,836 | 1,126 | ||||||
Non-accrual interest income | 386 | 63 | ||||||
Net unrealized losses on securities available for sale | - | 278 | ||||||
Other | 468 | 49 | ||||||
Total gross deferred tax assets | 11,102 | 5,649 | ||||||
Accumulated depreciation | (934 | ) | (637 | ) | ||||
Deferred loan costs | (746 | ) | (621 | ) | ||||
Core deposit and other non-deductible acquisition related intangibles | (822 | ) | (10 | ) | ||||
Net unrealized gains on securities available for sale | (151 | ) | - | |||||
Other | (69 | ) | (65 | ) | ||||
Total gross deferred tax liabilities | (2,722 | ) | (1,333 | ) | ||||
Net deferred tax asset | $ | 8,380 | $ | 4,316 | ||||
TIB Financial Corp. and Subsidiaries
Notes to Consolidated Financial Statements(in thousands except share and per share amounts)
Beginning balance, January 1, 2004 | $ | 2,020 | ||
New loans | 596 | |||
Effect of changes in related parties | (14 | ) | ||
Repayments | (697 | ) | ||
Ending balance, December 31, 2004 | $ | 1,905 | ||
Beginning balance, January 1, 2007 | $ | 760 | ||
New loans | 701 | |||
Repayments | (782 | ) | ||
Ending balance, December 31, 2007 | $ | 679 | ||
In order for the Bank to
Well Capitalized | Adequately Capitalized | |||||||||||||||||||||||
December 31, 2004 | Requirement | Requirement | Actual | |||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
Tier 1 Capital (to Average Assets) | ||||||||||||||||||||||||
Consolidated | N/A | N/A | ³$31,270 | ³ 4.0 | % | $ | 78,048 | 10.0 | % | |||||||||||||||
Bank | 39,069 | ³ 5.0 | % | 31,255 | ³ 4.0 | % | 81,780 | 10.5 | % | |||||||||||||||
Tier 1 Capital (to Risk Weighted Assets) | ||||||||||||||||||||||||
Consolidated | N/A | N/A | ³$28,583 | ³ 4.0 | % | $ | 78,048 | 10.9 | % | |||||||||||||||
Bank | 42,857 | ³ 6.0 | % | 28,571 | ³ 4.0 | % | 81,780 | 11.4 | % | |||||||||||||||
Total Capital (to Risk Weighted Assets) | ||||||||||||||||||||||||
Consolidated | N/A | N/A | ³$57,166 | ³ 8.0 | % | $ | 89,772 | 12.6 | % | |||||||||||||||
Bank | 71,428 | ³10.0 | % | 57,143 | ³ 8.0 | % | 88,254 | 12.4 | % |
Well Capitalized | Adequately Capitalized | |||||||||||||||||||||||
December 31, 2003 | Requirement | Requirement | Actual | |||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
Tier 1 Capital (to Average Assets) | ||||||||||||||||||||||||
Consolidated | N/A | N/A | ³$26,006 | ³ 4.0 | % | $ | 50,807 | 7.8 | % | |||||||||||||||
Bank | 32,483 | ³ 5.0 | % | 25,986 | ³ 4.0 | % | 55,472 | 8.5 | % | |||||||||||||||
Tier 1 Capital (to Risk Weighted Assets) | ||||||||||||||||||||||||
Consolidated | N/A | N/A | ³$23,148 | ³ 4.0 | % | $ | 50,807 | 8.8 | % | |||||||||||||||
Bank | 34,676 | ³ 6.0 | % | 23,117 | ³ 4.0 | % | 55,472 | 9.6 | % | |||||||||||||||
Total Capital (to Risk Weighted Assets) | ||||||||||||||||||||||||
Consolidated | N/A | N/A | ³$46,296 | ³ 8.0 | % | $ | 61,456 | 10.6 | % | |||||||||||||||
Bank | 57,793 | ³10.0 | % | 46,235 | ³ 8.0 | % | 60,871 | 10.5 | % |
December 31, 2007 | Well Capitalized Requirement | Adequately Capitalized Requirement | Actual | |||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
Tier 1 Capital (to Average Assets) | ||||||||||||||||||||||||
Consolidated | N/A | N/A | $ | ≥ 56,173 | ≥ 4.0 | % | $ | 118,303 | 8.4 | % | ||||||||||||||
TIB Bank | $ | ≥ 66,804 | ≥ 5.0 | % | ≥ 53,443 | ≥ 4.0 | % | 104,258 | 7.8 | % | ||||||||||||||
The Bank of Venice | ≥ 3,330 | ≥ 5.0 | % | ≥ 2,664 | ≥ 4.0 | % | 7,906 | 11.9 | % | |||||||||||||||
Tier 1 Capital ( to Risk Weighted Assets) | ||||||||||||||||||||||||
Consolidated | N/A | N/A | $ | ≥ 47,482 | ≥ 4.0 | % | $ | 118,303 | 10.0 | % | ||||||||||||||
TIB Bank | $ | ≥ 68,180 | ≥ 6.0 | % | ≥ 45,453 | ≥ 4.0 | % | 104,258 | 9.2 | % | ||||||||||||||
The Bank of Venice | ≥ 3,069 | ≥ 6.0 | % | ≥ 2,046 | ≥ 4.0 | % | 7,906 | 15.5 | % | |||||||||||||||
Total Capital (to Risk Weighted Assets) | ||||||||||||||||||||||||
Consolidated | N/A | N/A | $ | ≥ 94,965 | ≥ 8.0 | % | $ | 134,565 | 11.3 | % | ||||||||||||||
TIB Bank | $ | ≥ 113,633 | ≥ 10.0 | % | ≥ 90,906 | ≥ 8.0 | % | 118,468 | 10.4 | % | ||||||||||||||
The Bank of Venice | ≥ 5,116 | ≥ 10.0 | % | ≥ 4,092 | ≥ 8.0 | % | 8,546 | 16.7 | % | |||||||||||||||
December 31, 2006 | Well Capitalized Requirement | Adequately Capitalized Requirement | Actual | |||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
Tier 1 Capital (to Average Assets) | ||||||||||||||||||||||||
Consolidated | N/A | N/A | $ | ≥ 51,336 | ≥ 4.0 | % | $ | 112,368 | 8.8 | % | ||||||||||||||
TIB Bank | $ | ≥ 64,078 | ≥ 5.0 | % | ≥ 51,262 | ≥ 4.0 | % | 115,689 | 9.0 | % | ||||||||||||||
Tier 1 Capital ( to Risk Weighted Assets) | ||||||||||||||||||||||||
Consolidated | N/A | N/A | $ | ≥ 44,366 | ≥ 4.0 | % | $ | 112,368 | 10.1 | % | ||||||||||||||
TIB Bank | $ | ≥ 66,519 | ≥ 6.0 | % | ≥ 44,346 | ≥ 4.0 | % | 115,689 | 10.4 | % | ||||||||||||||
Total Capital (to Risk Weighted Assets) | ||||||||||||||||||||||||
Consolidated | N/A | N/A | $ | ≥ 88,733 | ≥ 8.0 | % | $ | 131,074 | 11.8 | % | ||||||||||||||
TIB Bank | $ | ≥ 110,864 | ≥ 10.0 | % | ≥ 88,692 | ≥ 8.0 | % | 125,715 | 11.3 | % | ||||||||||||||
June 2006 to the extent allowable.
On April 15, 2004, we closed the sale of 1,000,000 shares of our common stock at a price of $22.00 per share before commissions and expenses. The shares were sold on a firm commitment basis through Advest, Inc. Advest, Inc. also purchased an additional 150,000 shares from the Company on May 6, 2004, at $22.00 per share before commissions and expenses. The net proceeds of the offering, totaling $23,230 after $2,070 in offering costs, provided additional capital necessary to support continued loan and deposit growth.
TIB Financial Corp. and Subsidiaries
Notes to Consolidated Financial Statements(in thousands except share and per share amounts)
Note 15 – Stock Options
approval. As of December 31, 2004,2007, The Bank of Venice has no retained earnings available for dividends to the Company.
Plan as long as no dividends have been paid to the holder in accordance with the provisions of the grant agreement.
2007 | 2006 | 2005 | ||||||||||
Stock Options | $ | 284 | $ | 305 | $ | - | ||||||
Restricted Stock | 364 | 259 | 98 | |||||||||
Total stock-based compensation expense | $ | 648 | $ | 564 | $ | 98 | ||||||
Salaries and employee benefits | $ | 417 | $ | 390 | $ | 5 | ||||||
Other expense | 231 | 174 | 93 | |||||||||
Total stock-based compensation expense | $ | 648 | $ | 564 | $ | 98 | ||||||
2007 | 2006 | 2005 | ||||||||||
Dividend yield | 1.63 | % | 1.55 | % | 1.93 | % | ||||||
Risk-free interest rate | 4.18 | % | 4.89 | % | 4.13 | % | ||||||
Expected option life | 4.6 years | 6.5 years | 9 years | |||||||||
Volatility | 21 | % | 31 | % | 23 | % | ||||||
Weighted average grant-date fair value of options granted | $ | 4.05 | $ | 5.23 | $ | 3.75 | ||||||
· | The dividend yield was estimated using historical dividends paid and market value information for the Company’s stock. An increase in dividend yield will decrease stock compensation expense. |
· | The risk-free interest rate was developed using the U.S. Treasury yield curve for periods equal to the expected life of the options on the grant date. An increase in the risk-free interest rate will increase stock compensation expense. |
· | The expected option life for the current period grants was estimated using the vesting period, the term of the option and estimates of future exercise behavior patterns. Prior to 2006, this assumption was based on the typical vesting schedule and estimates of future exercise behavior patterns. An increase in the option life will increase stock compensation expense. |
· | The volatility was estimated using historical volatility for periods approximating the expected option life. An increase in the volatility will increase stock compensation expense. |
Stock options vest over varying service periods which range from vesting immediately to up to nine years.
Exercise Price | Weighted Average | |||||||||||||||||||
Shares | Range | Exercise Price | ||||||||||||||||||
Balance,December 31, 2001 | 585,402 | $ | 5.49 | — | $ | 14.50 | $ | 8.96 | ||||||||||||
Granted | 164,000 | 11.21 | — | 14.12 | 12.54 | |||||||||||||||
Exercised | (89,525 | ) | 5.49 | — | 13.50 | 6.63 | ||||||||||||||
Expired or Forfeited | (92,672 | ) | 5.49 | — | 13.55 | 10.62 | ||||||||||||||
Balance,December 31, 2002 | 567,205 | 5.49 | — | 14.50 | 10.09 | |||||||||||||||
Granted | 44,500 | 16.35 | — | 19.40 | 17.93 | |||||||||||||||
Exercised | (115,050 | ) | 5.49 | — | 14.12 | 6.39 | ||||||||||||||
Expired or Forfeited | (19,150 | ) | 5.49 | — | 16.35 | 11.46 | ||||||||||||||
Balance,December 31, 2003 | 477,505 | 5.49 | — | 19.40 | 11.66 | |||||||||||||||
Granted | 37,500 | 22.74 | — | 22.79 | 22.76 | |||||||||||||||
Exercised | (97,911 | ) | 5.49 | — | 14.12 | 6.92 | ||||||||||||||
Expired or Forfeited | (7,900 | ) | 11.25 | — | 22.74 | 19.47 | ||||||||||||||
Balance,December 31, 2004 | 409,194 | $ | 8.33 | — | $ | 22.79 | $ | 13.66 | ||||||||||||
Shares | Weighted Average Exercise Price | |||||||
Balance, January 1, 2005 | 803,188 | $ | 6.81 | |||||
Granted | 159,000 | 12.97 | ||||||
Exercised | (144,718 | ) | 5.79 | |||||
Expired or forfeited | (39,500 | ) | 10.66 | |||||
Balance, December 31, 2005 | 777,970 | $ | 8.06 | |||||
Granted | 85,624 | 15.13 | ||||||
Exercised | (134,986 | ) | 6.27 | |||||
Expired or forfeited | (21,100 | ) | 10.72 | |||||
Balance, December 31, 2006 | 707,508 | $ | 9.18 | |||||
Granted | 150,163 | 9.33 | ||||||
Exercised | (150,775 | ) | 7.35 | |||||
Expired or forfeited | (30,455 | ) | 11.90 | |||||
Balance, December 31, 2007 | 676,441 | 9.50 | ||||||
Options exercisable at December 31, | 2007 | 2006 | ||||||||||||||
Shares | Weighted Average Exercise Price | Shares | Weighted Average Exercise Price | |||||||||||||
294,694 | $ | 8.78 | 271,384 | $ | 7.62 | |||||||||||
Outstanding Options | Options Exercisable | |||||||||||||||||||
Weighted | ||||||||||||||||||||
Average | Weighted | Weighted | ||||||||||||||||||
Range of | Remaining | Average | Average | |||||||||||||||||
Exercise | Contractual | Exercise | Exercise | |||||||||||||||||
Price | Number | Life | Price | Number | Price | |||||||||||||||
$8.33 – $10.50 | 66,800 | 3.75 | $ | 9.64 | 34,900 | $ | 9.42 | |||||||||||||
11.00 – 11.75 | 29,150 | 4.05 | 11.35 | 11,050 | 11.39 | |||||||||||||||
12.40 – 12.40 | 105,800 | 6.48 | 12.40 | 23,600 | 12.40 | |||||||||||||||
12.65 – 13.45 | 17,500 | 5.03 | 13.24 | 14,000 | 13.32 | |||||||||||||||
13.50 – 13.50 | 74,000 | 2.73 | 13.50 | 49,900 | 13.50 | |||||||||||||||
13.55 – 14.50 | 40,944 | 5.71 | 13.82 | 34,744 | 13.76 | |||||||||||||||
16.35 – 19.40 | 42,500 | 8.57 | 18.00 | 8,750 | 18.10 | |||||||||||||||
22.74 – 22.74 | 7,500 | 9.15 | 22.74 | — | — | |||||||||||||||
22.76 – 22.76 | 20,000 | 9.11 | 22.76 | — | — | |||||||||||||||
22.79 – 22.79 | 5,000 | 9.07 | 22.79 | 5,000 | 22.79 | |||||||||||||||
$8.33 – $22.79 | 409,194 | 5.47 | $ | 13.66 | 181,944 | $ | 12.96 | |||||||||||||
Outstanding Options | Options Exercisable | |||||||||||||||||||||
Range of Exercise Prices | Number | Weighted Average Remaining Contractual Life | Weighted Average Exercise Price | Number | Weighted Average Exercise Price | |||||||||||||||||
$ | 5.06 – $6.75 | 228,475 | 2.83 | $ | 6.08 | 115,775 | $ | 6.13 | ||||||||||||||
6.78 – 11.38 | 256,948 | 6.84 | 9.44 | 128,648 | 9.42 | |||||||||||||||||
11.40 – 15.82 | 191,018 | 7.09 | 13.68 | 50,271 | 13.24 | |||||||||||||||||
$ | 5.06 – $15.82 | 676,441 | 5.55 | $ | 9.50 | 294,694 | $ | 8.78 | ||||||||||||||
2007 | 2006 | 2005 | ||||||||||||||||||||||
Shares | Weighted Average Grant-Date Fair Value | Shares | Weighted Average Grant-Date Fair Value | Shares | Weighted Average Grant-Date Fair Value | |||||||||||||||||||
Balance, January 1, | 66,877 | $ | 15.68 | 82,000 | $ | 15.64 | - | $ | - | |||||||||||||||
Granted | 36,855 | 12.74 | 10,345 | 15.83 | 82,000 | 15.64 | ||||||||||||||||||
Vested | (18,061 | ) | 15.68 | (15,468 | ) | 15.67 | - | - | ||||||||||||||||
Expired or forfeited | (196 | ) | 14.21 | (10,000 | ) | 15.58 | - | - | ||||||||||||||||
Balance, December 31, | 85,475 | $ | 14.41 | 66,877 | $ | 15.68 | 82,000 | $ | 15.64 | |||||||||||||||
2004 | 2003 | |||||||||||||||||||||
Fixed | Variable | Fixed | Variable | |||||||||||||||||||
Rate | Rate | Rate | Rate | |||||||||||||||||||
Commitments to make loans | $ | 7,866 | $ | 26,567 | $ | 15,190 | $ | 4,593 | ||||||||||||||
Unfunded commitments under lines of credit | 700 | 71,800 | 1,250 | 51,569 |
2007 | 2006 | |||||||||||||||
Fixed Rate | Variable Rate | Fixed Rate | Variable Rate | |||||||||||||
Commitments to make loans | $ | 6,384 | $ | 4,180 | $ | 7,906 | $ | 15,032 | ||||||||
Unfunded commitments under lines of credit | 9,446 | 116,068 | 896 | 151,398 | ||||||||||||
At
TIB Financial Corp. and Subsidiaries
Notes to Consolidated Financial Statements(in thousands except share and per share amounts)
Years ended December 31, | 2004 | 2003 | 2002 | |||||||||
Merchant bankcard processing expenses | $ | 3,869 | $ | 3,153 | $ | 2,780 | ||||||
Other merchant charges | 568 | 503 | 461 | |||||||||
Operating supplies | 553 | 495 | 428 | |||||||||
Computer services | 1,773 | 1,533 | 1,627 | |||||||||
Legal and professional fees | 1,223 | 845 | 749 | |||||||||
Marketing and community relations | 866 | 851 | 865 | |||||||||
Postage, courier, and armored car | 620 | 700 | 590 |
Years Ended December 31, | 2007 | 2006 | 2005 | |||||||||
Computer services | $ | 2,172 | $ | 1,955 | $ | 1,650 | ||||||
Legal and professional fees | 2,145 | 1,710 | 1,444 | |||||||||
Marketing and community relations | 1,151 | 983 | 731 | |||||||||
Postage, courier, and armored car | 837 | 845 | 722 | |||||||||
Repossessed asset expenses | 986 | 312 | 128 | |||||||||
2004 | 2003 | |||||||||||||||
Carrying | Estimated | Carrying | Estimated | |||||||||||||
Value | Fair Value | Value | Fair Value | |||||||||||||
Financial assets: | ||||||||||||||||
Cash and cash equivalents | $ | 42,938 | 42,938 | $ | 33,681 | $ | 33,681 | |||||||||
Investment securities available for sale | 77,807 | 77,807 | 52,557 | 52,557 | ||||||||||||
Loans, net | 649,435 | 650,119 | 535,197 | 537,099 | ||||||||||||
Federal Home Loan Bank and Independent Bankers’ Bank stock | 3,035 | 3,035 | 2,376 | 2,376 | ||||||||||||
Accrued interest receivable | 4,086 | 4,086 | 3,373 | 3,373 | ||||||||||||
Financial liabilities: | ||||||||||||||||
Noncontractual deposits | 436,677 | 436,677 | 348,783 | 348,783 | ||||||||||||
Contractual deposits | 251,182 | 251,159 | 205,030 | 209,085 | ||||||||||||
Federal Home Loan Bank Advances | 35,000 | 35,000 | 45,000 | 45,000 | ||||||||||||
Short-term borrowings | 12,157 | 12,157 | 4,041 | 4,041 | ||||||||||||
Notes payable | 5,250 | 5,388 | 5,250 | 5,546 | ||||||||||||
Subordinated debentures | 13,000 | 13,489 | 13,000 | 13,296 | ||||||||||||
Accrued interest payable | 3,692 | 3,692 | 3,504 | 3,504 |
2007 | 2006 | |||||||||||||||
Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | |||||||||||||
Financial assets: | ||||||||||||||||
Cash and cash equivalents | $ | 71,059 | $ | 71,059 | $ | 55,552 | $ | 55,552 | ||||||||
Investment securities available for sale | 160,357 | 160,357 | 131,199 | 131,199 | ||||||||||||
Loans, net | 1,114,183 | 1,126,691 | 1,055,887 | 1,060,474 | ||||||||||||
Federal Home Loan Bank and Independent Bankers’ Bank stock | 9,068 | 9,068 | 7,899 | 7,899 | ||||||||||||
Accrued interest receivable | 7,761 | 7,761 | 8,319 | 8,319 | ||||||||||||
Financial liabilities: | ||||||||||||||||
Non-contractual deposits | 537,204 | 537,204 | 501,458 | 501,458 | ||||||||||||
Contractual deposits | 512,754 | 515,715 | 527,999 | 525,905 | ||||||||||||
Federal Home Loan Bank Advances | 140,000 | 142,438 | 125,000 | 124,730 | ||||||||||||
Short-term borrowings | 77,922 | 77,900 | 22,250 | 22,250 | ||||||||||||
Long-term repurchase agreements | 30,000 | 30,401 | - | - | ||||||||||||
Notes payable | - | - | 4,000 | 4,000 | ||||||||||||
Subordinated debentures | 33,000 | 33,646 | 33,000 | 33,449 | ||||||||||||
Accrued interest payable | 9,012 | 9,012 | 10,798 | 10,798 | ||||||||||||
19—Condensed Financial Information of TIB Financial Corp. has two reportable segments in their continuing operations: community banking and merchant bankcard processing. The community banking segment’s business is to attract deposits from the public and to use such deposits to make real estate, business and consumer loans in its primary service area. The merchant bankcard processing segment processes credit card transactions for local merchants.
December 31, | 2007 | 2006 | ||||||
Assets: | ||||||||
Cash on deposit with subsidiary | $ | 1,092 | $ | 6,323 | ||||
Dividends receivable from subsidiaries | 7,595 | 21 | ||||||
Investment in bank subsidiaries | 121,684 | 117,504 | ||||||
Investment in other subsidiaries | 1,022 | 1,022 | ||||||
Other assets | 576 | 664 | ||||||
Total Assets | $ | 131,969 | $ | 125,534 | ||||
Liabilities and Shareholders’ Equity: | ||||||||
Dividends payable | $ | 799 | $ | 703 | ||||
Interest payable | 679 | 778 | ||||||
Notes payable | 34,022 | 38,022 | ||||||
Other liabilities | 229 | 169 | ||||||
Shareholders’ equity | 96,240 | 85,862 | ||||||
Total Liabilities and Shareholders’ Equity | $ | 131,969 | $ | 125,534 | ||||
Year Ended December 31, | 2007 | 2006 | 2005 | |||||||||
Operating income: | ||||||||||||
Dividends from bank subsidiaries | $ | 11,340 | $ | 7,630 | $ | 2,946 | ||||||
Dividends from other subsidiaries | 83 | 63 | 37 | |||||||||
Total operating income | 11,423 | 7,693 | 2,983 | |||||||||
Operating expense: | ||||||||||||
Interest expense | 2,798 | 2,475 | 1,616 | |||||||||
Other expense | 1,298 | 975 | 600 | |||||||||
Total operating expense | 4,096 | 3,450 | 2,216 | |||||||||
Income before income tax benefit and equity in undistributed earnings of subsidiaries | 7,327 | 4,243 | 767 | |||||||||
Income tax benefit | 1,509 | 1,281 | 884 | |||||||||
Income before equity in undistributed earnings of subsidiaries | 8,836 | 5,524 | 1,651 | |||||||||
Equity in undistributed earnings (losses) of bank subsidiaries | (11,257 | ) | 3,723 | 10,173 | ||||||||
Net income (loss) | $ | (2,421 | ) | $ | 9,247 | $ | 11,824 | |||||
Year ended | Community | Merchant | Parent and | |||||||||||||
December 31, 2002 | Banking | Bankcard | Other | Total | ||||||||||||
Interest and dividend income | $ | 31,287 | $ | — | $ | 29 | $ | 31,316 | ||||||||
Interest expense | (8,706 | ) | — | (1,623 | ) | (10,329 | ) | |||||||||
Net interest and dividend income (expense) | 22,581 | — | (1,594 | ) | 20,987 | |||||||||||
Other income | 5,594 | 4,387 | 447 | 10,428 | ||||||||||||
Depreciation and amortization | (1,718 | ) | (44 | ) | (5 | ) | (1,767 | ) | ||||||||
Other expense | (18,486 | ) | (3,577 | ) | (593 | ) | (22,656 | ) | ||||||||
Pretax segment profit (loss) | $ | 7,971 | $ | 766 | $ | (1,745 | ) | $ | 6,992 | |||||||
Segment assets | $ | 564,221 | $ | 66 | $ | 583 | $ | 564,870 | ||||||||
The Company discontinued separate reporting
Note 20 – Discontinued Operations
On August 15, 2003, the Company closed the saleCash Flows
Year Ended December 31, | 2007 | 2006 | 2005 | |||||||||
Cash flows from operating activities: | ||||||||||||
Net income (loss) | $ | (2,421 | ) | $ | 9,247 | $ | 11,824 | |||||
Equity in undistributed (earnings) losses of bank subsidiaries | 11,257 | (3,723 | ) | (10,173 | ) | |||||||
Stock-based compensation expense | 231 | 174 | 98 | |||||||||
Increase (decrease) in net income tax obligation | 157 | 377 | (81 | ) | ||||||||
Increase in other assets | (7,416 | ) | (238 | ) | (36 | ) | ||||||
Increase (decrease) in other liabilities | (175 | ) | 419 | (10 | ) | |||||||
Net cash provided by operating activities | 1,633 | 6,256 | 1,622 | |||||||||
Cash flows from investing activities: | ||||||||||||
Investment in bank subsidiaries | (888 | ) | (19,500 | ) | - | |||||||
Investment in other subsidiaries | - | (619 | ) | - | ||||||||
Net cash used in investing activities | (888 | ) | (20,119 | ) | - | |||||||
Cash flows from financing activities: | ||||||||||||
Repayment of note payable | (4,000 | ) | - | (1,250 | ) | |||||||
Proceeds from exercise of stock options | 1,108 | 846 | 838 | |||||||||
Income tax benefits related to stock based compensation | 21 | 150 | - | |||||||||
Proceeds from bank subsidiary for equity awards | 417 | 390 | - | |||||||||
Payment to repurchase stock | (569 | ) | - | - | ||||||||
Proceeds from issuance of long-term debt | - | 20,619 | - | |||||||||
Cash dividends paid | (2,953 | ) | (2,741 | ) | (2,629 | ) | ||||||
Net cash provided (used) by financing activities | (5,976 | ) | 19,264 | (3,041 | ) | |||||||
Net increase (decrease) in cash | (5,231 | ) | 5,401 | (1,419 | ) | |||||||
Cash, beginning of year | 6,323 | 922 | 2,341 | |||||||||
Cash, end of year | $ | 1,092 | $ | 6,323 | $ | 922 | ||||||
Years ended December 31: | 2004 | 2003 | 2002 | |||||||||
Other income | $ | — | $ | 1,255 | $ | 1,801 | ||||||
Depreciation and amortization | — | (35 | ) | (57 | ) | |||||||
Other expense | — | (1,020 | ) | (1,538 | ) | |||||||
Pretax income from discontinued operations | $ | — | $ | 200 | $ | 206 | ||||||
TIB Financial Corp. and Subsidiaries
Condensed Balance Sheets(Parent Only)
December 31, | 2004 | 2003 | ||||||
Assets | ||||||||
Cash on deposit with subsidiary | $ | 2,341 | $ | 758 | ||||
Dividends and other receivables from subsidiaries | 10 | 10 | ||||||
Investment in bank subsidiary | 84,845 | 58,910 | ||||||
Investment in TIBFL Statutory Trust I | 248 | 248 | ||||||
Investment in TIBFL Statutory Trust II | 155 | 155 | ||||||
Income tax receivable | — | 338 | ||||||
Other assets | 407 | 424 | ||||||
Total Assets | $ | 88,006 | $ | 60,843 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Liabilities | ||||||||
Dividends payable | $ | 653 | $ | 498 | ||||
Interest payable | 449 | 440 | ||||||
Notes payable | 18,653 | 18,653 | ||||||
Other liabilities | 137 | 6 | ||||||
Total liabilities | 19,892 | 19,597 | ||||||
Shareholders’ equity | ||||||||
Common stock | 568 | 443 | ||||||
Surplus | 38,284 | 14,255 | ||||||
Retained earnings | 28,968 | 26,203 | ||||||
Accumulated other comprehensive income | 294 | 345 | ||||||
Total shareholders’ equity | 68,114 | 41,246 | ||||||
Total Liabilities and Shareholders’ Equity | $ | 88,006 | $ | 60,843 | ||||
TIB Financial Corp. and Subsidiaries
Notes to Consolidated Financial Statements(in thousands except share and per share amounts)
21. Condensed Financial Information of TIB Financial Corp. (continued)
Condensed Statements of Income(Parent Only)
Years ended December 31, | 2004 | 2003 | 2002 | |||||||||
Operating income | ||||||||||||
Dividend from bank subsidiary | $ | 3,708 | $ | 832 | $ | 782 | ||||||
Dividend from TIBFL Statutory Trust I | 26 | 26 | 26 | |||||||||
Dividend from TIBFL Statutory Trust II | 8 | 8 | 8 | |||||||||
Dividend from TIB Software & Services, Inc. | — | 126 | 157 | |||||||||
Interest income on note receivable | — | — | 29 | |||||||||
Other income | 6 | — | — | |||||||||
Total operating income | 3,748 | 992 | 1,002 | |||||||||
Operating expense | ||||||||||||
Interest expense | 1,636 | 1,624 | 1,658 | |||||||||
Other expense | 553 | 345 | 305 | |||||||||
Total operating expense | 2,189 | 1,969 | 1,963 | |||||||||
Income (loss) before income tax benefit and equity in undistributed earnings (losses) of subsidiaries | 1,559 | (977 | ) | (961 | ) | |||||||
Income tax benefit | 808 | 728 | 708 | |||||||||
Income (loss) before equity in undistributed earnings (losses) of subsidiaries | 2,367 | (249 | ) | (253 | ) | |||||||
Equity in undistributed earnings of bank subsidiary | 2,831 | 5,226 | 4,865 | |||||||||
Equity in undistributed losses of TIB Software & Services, Inc. | — | — | (6 | ) | ||||||||
Income from continuing operations | 5,198 | 4,977 | 4,606 | |||||||||
Discontinued operations: | ||||||||||||
Dividend from Keys Insurance Agency, Inc. | — | 125 | — | |||||||||
Equity in undistributed earnings of Keys Insurance Agency, Inc. | — | — | 129 | |||||||||
Income from discontinued operations | — | 125 | 129 | |||||||||
Net income | $ | 5,198 | $ | 5,102 | $ | 4,735 | ||||||
TIB Financial Corp. and Subsidiaries
Notes to Consolidated Financial Statements(in thousands except share and per share amounts)
Condensed Statements of Cash Flows(Parent Only)
Years ended December 31, | 2004 | 2003 | 2002 | |||||||||
Cash flows from operating activities | ||||||||||||
Net income | $ | 5,198 | $ | 5,102 | $ | 4,735 | ||||||
Equity in undistributed earnings of bank subsidiary | (2,831 | ) | (5,226 | ) | (4,865 | ) | ||||||
Equity in undistributed losses of TIB Software & Services, Inc. | — | — | 6 | |||||||||
Equity in undistributed (earnings) loss of Keys Insurance Agency, Inc. | — | — | (129 | ) | ||||||||
Amortization of intangibles and other assets | 17 | 17 | 37 | |||||||||
Increase in other assets | — | (4 | ) | (29 | ) | |||||||
Decrease in due to subsidiaries | — | (3 | ) | (147 | ) | |||||||
Increase (decrease) in interest payable | 9 | (5 | ) | (58 | ) | |||||||
Increase in other liabilities | 6 | 3 | 3 | |||||||||
Deferred income taxes | — | — | (89 | ) | ||||||||
Increase (decrease) in net income tax obligation | 709 | (3 | ) | (65 | ) | |||||||
Net cash provided (used) by operating activities | 3,108 | (119 | ) | (601 | ) | |||||||
Cash flows from investing activities | ||||||||||||
Investment in bank subsidiary | (23,155 | ) | (5,500 | ) | — | |||||||
Payment on note receivable from sale of option | — | — | 300 | |||||||||
Return of capital from Keys Insurance Agency, Inc. | — | 2,301 | — | |||||||||
Return of capital from TIB Software & Services, Inc. | — | 129 | 130 | |||||||||
Net cash provided (used) in investing activities | (23,155 | ) | (3,070 | ) | 430 | |||||||
Cash flows from financing activities | ||||||||||||
Proceeds from exercise of stock options | 678 | 735 | 592 | |||||||||
Proceeds from stock issuance | 23,230 | 4,343 | — | |||||||||
Cash dividends paid | (2,278 | ) | (1,866 | ) | (1,713 | ) | ||||||
Net cash provided (used) by financing activities | 21,630 | 3,212 | (1,121 | ) | ||||||||
Net increase (decrease) in cash | 1,583 | 23 | (1,292 | ) | ||||||||
Cash, beginning of year | 758 | 735 | 2,027 | |||||||||
Cash, end of year | $ | 2,341 | $ | 758 | $ | 735 | ||||||
TIB Financial Corp. and Subsidiaries
Notes to Consolidated Financial Statements(in thousands except share and per share amounts)
Note 22 – 20—Quarterly Financial Data (Unaudited)
2004 | 2003 | |||||||||||||||||||||||||||||||
Fourth | Third | Second | First | Fourth | Third | Second | First | |||||||||||||||||||||||||
Condensed income statements: | ||||||||||||||||||||||||||||||||
Interest income | $ | 11,351 | $ | 10,528 | $ | 9,819 | $ | 9,218 | $ | 9,116 | $ | 8,748 | $ | 8,452 | $ | 8,290 | ||||||||||||||||
Net interest income | 8,216 | 7,781 | 7,361 | 6,828 | 6,701 | 6,345 | 5,888 | 5,833 | ||||||||||||||||||||||||
Income from continuing operations | 1,331 | 1,337 | 1,257 | 1,273 | 1,464 | 1,141 | 1,210 | 1,162 | ||||||||||||||||||||||||
Net income | $ | 1,331 | $ | 1,337 | $ | 1,257 | $ | 1,273 | $ | 1,464 | $ | 1,163 | $ | 1,286 | $ | 1,189 | ||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||||||||
Income from continuing operations - Basic | $ | 0.23 | $ | 0.24 | $ | 0.23 | $ | 0.29 | $ | 0.33 | $ | 0.26 | $ | 0.29 | $ | 0.29 | ||||||||||||||||
Income from continuing operations - Diluted | $ | 0.23 | $ | 0.23 | $ | 0.22 | $ | 0.27 | $ | 0.32 | $ | 0.25 | $ | 0.28 | $ | 0.27 |
Due
2007 | 2006 | |||||||||||||||||||||||||||||||
Fourth | Third | Second | First | Fourth | Third | Second | First | |||||||||||||||||||||||||
Condensed income statements: | ||||||||||||||||||||||||||||||||
Interest income | $ | 23,863 | $ | 23,549 | $ | 23,950 | $ | 23,379 | $ | 23,240 | $ | 22,293 | $ | 20,822 | $ | 18,879 | ||||||||||||||||
Net interest income | 11,350 | 11,286 | 11,882 | 11,502 | 11,772 | 11,860 | 11,949 | 11,482 | ||||||||||||||||||||||||
Income (loss) from continuing operations | (6,498 | ) | 494 | 1,712 | 1,871 | 1,864 | 2,437 | 2,329 | 2,363 | |||||||||||||||||||||||
Net income (loss) | (6,498 | ) | 494 | 1,712 | 1,871 | 1,936 | 2,452 | 2,496 | 2,363 | |||||||||||||||||||||||
Earnings (loss) per share: | ||||||||||||||||||||||||||||||||
Income (loss) from continuing operations – Basic | $ | (0.51 | ) | $ | 0.04 | $ | 0.14 | $ | 0.16 | $ | 0.16 | $ | 0.21 | $ | 0.20 | $ | 0.20 | |||||||||||||||
Income (loss) from continuing operations – Diluted | $ | (0.51 | ) | $ | 0.04 | $ | 0.14 | $ | 0.16 | 0.16 | 0.21 | 0.20 | 0.20 | |||||||||||||||||||
Date: March 17, 2008 | ||
/s/ Edward V. Lett | ||
Edward V. Lett President and Chief Executive Officer | ||
/s/ Stephen J. Gilhooly | ||
Stephen J. Gilhooly Executive Vice President and Chief Financial Officer |
3.1 | Restated Articles of Incorporation (a) | |
3.2 | Amendment to Articles of Incorporation (b) | |
3.3 | Bylaws (c) | |
3.4 | Amendment to TIB Financial Corp. Bylaws | |
4.1 | Specimen Stock Certificate (d) | |
10.1 | Employment Agreement between Edward V. Lett, TIB Financial Corp. and TIB Bank effective March 1, 2004 (e), (f) | |
10.2 | 401(K) Savings and Employee Stock Ownership Plan (d), (e) | |
10.3 | Employee Incentive Stock Option Plan (d), (e) | |
10.4 | Employment Agreement between Millard J. Younkers, Jr., TIB Financial Corp. and TIB Bank effective March 1, 2004 (e), (f) | |
10.5 | Employment Agreement between David P. Johnson, TIB Financial Corp. and TIB Bank effective March 1, 2004 (e), (f) | |
10.6 | Employment Agreement between Michael D. Carrigan, TIB Financial Corp. and TIB Bank effective March 1, 2004 (e), (g) | |
10.7 | Employment Agreement between Alma Shuckhart, TIB Financial Corp., and TIB Bank effective March 1, 2004. (e), (g) | |
10.8 | Employment Agreement between Stephen J. Gilhooly, TIB Financial Corp., and TIB Bank effective September 27, 2006 (e), (h) | |
10.9 | Form of Director Deferred Fee Agreement (e), (i) | |
10.10 | Form of Salary Continuation Agreement (e), (i) | |
10.11 | Form of Executive Officer Split Dollar Agreement (e), (i) | |
10.12 | Form of Director Deferred Fee Agreement – First Amendment (e), (f) | |
10.13 | Form of Executive Officer Split Dollar Agreement – First Amendment (e), (f) | |
10.14 | Form of Salary Continuation Agreement – First Amendment (e), (j) | |
10.15 | Form of Restricted Stock Agreement (k) | |
10.16 | Form of Restricted Stock Agreement Addendum (k) | |
10.17 | Form of Salary Continuation Agreement – Second Amendment (e), (m) | |
10.18 | Marketing and Sales Alliance Agreement (k) | |
10.19 | Non-Competition Agreement (k) |
Exhibit Numbers (continued) | |||
10.20 | Form of Salary Continuation Agreement - Michael Carrigan and Steve Gilhooly (e), (n) | ||
10.21 | Stock Purchase Agreement between Naples Capital Advisors, Inc., John M. Suddeth, Jr. and Michael H. Morris, and TIB Financial Corp. (o) | ||
10.22 | Amendment to the Employment Agreement for Alma Shuckhart (e), (t) | ||
10.23 | Employment Agreement between David F. Voigt, TIB Financial Corp., and The Bank of Venice (e), (q) | ||
10.24 | Revised Audit Committee Charter dated April 24, 2007 (t) | ||
10.25 | Revised Corporate Governance and Nomination Committee Charter dated January 23, 2007 (r) | ||
10.26 | Revised Corporate Governance Guidelines dated January 23, 2007 (r) | ||
10.27 | Second Amendment to the Employment Agreement for Alma Shuckhart (e), (p) | ||
10.28 | Form of Stock Purchase Agreement (s) | ||
10.29 | Form of Registration Rights Agreement (s) | ||
10.30 | Form of Relationship Agreement (s) | ||
10.31 | Form of Common Stock Warrant (s) | ||
14.1 | Board of Directors Ethics Code (k) | ||
14.2 | Senior Financial Officer Ethics Code (k) | ||
21.1 | Subsidiaries of the Registrant | ||
23.1 | Consent of Independent Registered Public Accounting Firm | ||
31.1 | Chief Executive Officer’s certification required under Section 302 of Sarbanes-Oxley Act of | ||
2002 | |||
31.2 | Chief Financial Officer’s certification required under Section 302 of Sarbanes-Oxley Act of | ||
2002 | |||
32.1 | Chief Executive Officer’s | ||
2002 | |||
32.2 | Chief Financial Officer’s | ||
99.1 | Statement of Policy with respect to Related Person Transactions (m) |
(a) | Incorporated by reference to Appendix A in the Company’s Definitive Proxy Statement filed on April 8, 2004. | |
(b) | Item 3.2 was previously filed by the Company as an Exhibit to the Form 8-K filed by the Company on September 28, 2006 and is incorporated herein by reference. | |
(c) | Previously filed by the Company as an Exhibit to the Company's Registration Statement (Registration No. 333-113489) and such document is incorporated herein by reference. | |
(d) | Previously filed by the Company as an Exhibit (with the same respective Exhibit Number as indicated herein) to the Company's Registration Statement (Registration No. 333-03499) and such document is incorporated herein by reference. |
(e) | Represents a management contract or a compensation plan or arrangement required to be filed as an exhibit. | |
(f) | Items 10.1, 10.4, 10.5, 10.12 and 10.13 were previously filed by the Company as Exhibits to the Company’s December 31, 2003 10-K and such documents are incorporated herein by reference. | |
(g) | Items 10.6 and 10.7 were previously filed by the Company as an Exhibit to the Form 10-Q filed by the Company on November 8, 2006 and are incorporated herein by reference. | |
(h) | Item 10.8 was previously filed by the Company as an Exhibit to the Form 8-K filed by the Company on September 27, 2006 and is incorporated herein by reference. | |
(i) | Items 10.9 through 10.11 were previously filed by the Company as Exhibits to the Company’s December 31, 2001 10-K and such documents are incorporated herein by reference. | |
(j) | Item 10.14 was previously filed by the Company as an Exhibit to the Company’s December 31, 2004 10-K and is incorporated herein by reference. | |
(k) | Items 10.15, 10.16, 10.18, 10.19, 14.1 and 14.2 were previously filed by the Company as Exhibits to the Company’s December 31, 2005 10-K and such documents are incorporated herein by reference. | |
(l) | Item 10.20 was previously filed by the Company as an Exhibit to the Form 8-K filed by the Company on November 14, 2006 and is incorporated herein by reference. | |
(m) | Items 10.17 and 99.1 were previously filed by the Company as Exhibits (with the same respective exhibit number as indicated herein) to the Company's December 31, 2006 Form 10-K and such documents are incorporated herein by reference. | |
(n) | Item 10.20 was previously filed by the Company as an Exhibit to the Form 8-K filed by the Company on February 7, 2008 and is incorporated herein by reference. | |
(o) | Item 10.21 was previously filed by the Company as an Exhibit to the Form 8-K filed by the Company on December 13, 2007 and is incorporated herein by reference. | |
(p) | Item 10.27 was previously filed by the Company as an Exhibit to the Form 10-Q filed by the Company on November 9, 2007 and is incorporated herein by reference. | |
(q) | Item 10.23 was previously filed by the Company as an Exhibit to the Form 8-K filed by the Company on May 2, 2007 and is incorporated herein by reference. | |
(r) | Items 10.25 and 10.26 were previously filed by the Company as Exhibits to the Form 8-K filed by the Company on January 25, 2007 and such documents are incorporated herein by reference. | |
(s) | Items 10.28 through 10.31 were previously filed by the Company as Exhibits to the Form 8-K filed by the Company on March 11, 2008 and such documents are hereby incorporated by reference. | |
(t) | Item 10.22 was previously filed by the Company as an Exhibit to the Form 8-K filed by the Company on October 1, 2007 and is incorporated herein by reference. | |
(u) | Item 10.24 was previously filed by the Company as an Exhibit to the Form 8-K filed by the Company on April 26, 2007 and is incorporated herein by reference. |
TIB FINANCIAL CORP. | |||||||
By: | /s/ Edward V. Lett | ||||||
Edward V. Lett | |||||||
President, Chief Executive Officer and Director | |||||||
Signature | Title | |
/s/ Edward V. Lett | President | |
Edward V. Lett | ||
/s/ Richard C. Bricker, Jr. | Director | |
Richard C. Bricker, Jr. | ||
/s/ Paul O. Jones, Jr. | Director | |
Paul O. Jones, Jr., M.D. | ||
/s/ Thomas J. Longe | Director | |
Thomas J. Longe |
/s/ John G. Parks, Jr. | Director | |
John G. Parks, Jr. | ||
/s/ Marvin F. Schindler | Director | |
Marvin F. Schindler | ||
/s/ Otis T. Wallace | Director | |
Otis T. Wallace | ||
/s/ David F. Voigt | Director | |
David F. Voigt | ||
/s/ | Chief Financial and Accounting Officer | |
Stephen J. Gilhooly | ||