EXHIBIT 99.1
TIB FINANCIAL CORP ANNOUNCES
SECOND QUARTER 2003 EARNINGS
KEY LARGO, FLA. (JULY 28, 2003) -- TIB Financial Corp., (Nasdaq: TIBB)
holding company for TIB Bank of the Keys, today reported net income for the
second quarter of 2003 of $1,285,454 or $0.31 basic earnings per share, versus
net income of $1,101,566 or $0.28 basic earnings per share for the second
quarter of 2002. On a diluted basis, earnings per share was $0.30 for the
quarter compared to $0.27 for the same period in 2002.
Net income for the six months ended June 30, 2003 was $2,474,723 or
$0.60 basic earnings per share compared to net income of $2,292,484 or $0.58
basic earnings per share for the same period of 2002. On a diluted basis,
earnings per share was $0.58 for the six months ended June 30, 2003 compared to
$0.56 for the same period in 2002.
Net income for the second quarter of 2003 increased $183,000 over the
respective prior year period. During this time, net interest income increased
approximately $690,000, non-interest sources of income were up $640,000 from the
prior year level and other expenses increased by $920,000 over the prior year.
Net income for the first half of 2003 also increased $183,000 over the
respective prior year period. During this time, net interest income increased
approximately $1,561,000 driven primarily by loan growth from $441.7 million on
December 31, 2002 to $473.1 million at month end June 30, 2003. The Company's
net interest margin decreased slightly from 4.41% for the six months ended June
30, 2002 to 4.39% for the comparable period in 2003. Non-interest sources of
income were up $1,013,000 from the prior year level and other expenses increased
by $1,965,000 over the prior year.
Non-interest sources of income for the first half of 2003 included a
significant increase in fees on mortgage loans sold. These fees result from the
sale of fixed rate mortgages that we generate and then immediately sell in the
secondary market. The recent low mortgage rates have contributed to increased
volumes in our origination of these fixed rate loans. Also, in the second
quarter of 2003, we recognized a $202,000 gain on the sale of our remaining
interest in ERAS Joint Venture.
Non-interest expense has increased approximately 14% over the prior
year's quarter expense, and 16% on a year to date basis. A portion of this
increase is due to higher commission expense that resulted from increased
revenues from non-interest income sources, such as fees on mortgage loans sold.
In addition, the continuing expansion in the Southwest Florida market has caused
non-interest expense to increase. The Bank added two new locations there in the
second half of 2001 and one new location was added in the fourth quarter of
2002. The addition of these facilities and their continued growth has caused the
Bank to hire additional personnel and incur additional operating costs. Opening
new branch facilities is dilutive to earnings in the near term but is a factor
in achieving sustainable long-term growth. Further, additional staffing has been
required to handle the growing lending portfolios, increased customer activity,
and compliance with new government regulations.
As of June 30, 2003, TIB Financial Corp. had total assets of $633.2
million and total deposits of $552.8 million. This represents an 11.6% increase
in assets and a 14.5% increase in deposits from December 31, 2002. At December
31, 2002, total assets were $567.1 million and total deposits were $482.7
million.
"This quarter saw the Company continue to record solid
earnings while recognizing the costs associated with our de novo branching
strategy. The intrinsic value of the Company increases as the new facilities
mature toward profitability," said Edward V. Lett, President and CEO of TIB
Financial Corp.
TIB Bank of the Keys is a wholly owned subsidiary of TIB Financial
Corp., which is headquartered in Monroe County Florida. TIB Bank has been in
operation for 29 years and currently operates nine offices in the Florida Keys,
two offices in South Miami-Dade County, and three offices in Naples and Bonita
Springs. In addition to its retail and commercial product lines, TIB Bank also
provides investment services and government guaranteed lending, as well as
merchant bankcard services. A subsidiary of TIB Financial Corp., Keys Insurance
Agency, offers a full line of commercial and personal insurance products.
Copies of TIBB press releases, SEC filings, current price quotes, stock
charts and other valuable information for investors may be found on the
Company's website at tibbank.com. For further information, contact Edward V.
Lett, President and CEO at (305) 451-4660.
Except for historical information contained herein, this news release
contains comments or information that constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995,
which involve significant risks and uncertainties. Actual results may differ
materially from the results discussed in the forward-looking statements.
TIB Financial Corp. and Subsidiaries
Consolidated Statements of Income
Unaudited
(in thousands, except per share data)
For the Quarter Ended For the Six Months Ended
June 30, June 30,
2003 2002 2003 2002
------ ------ ------- -------
Interest income $8,452 $7,727 $16,742 $15,269
Interest expense 2,564 2,529 5,021 5,109
------ ------ ------- -------
Net interest income 5,888 5,198 11,721 10,160
Provision for loan losses 258 129 588 266
Other income:
Service charges on deposit accounts 586 545 1,158 1,078
Investment securities gains, net -- 64 5 138
Merchant bank card processing income 1,221 1,126 2,599 2,460
Commissions on sales by Keys Insurance Agency 541 535 978 935
Gain on sale of government guaranteed loans -- 23 87 23
Fees on mortgage loans sold 609 314 1,211 673
Retail investment services 99 42 186 131
Gain on sale of investment in ERAS Joint
Venture 202 -- 202 --
Other income 371 340 718 693
------ ------ ------- -------
Total other income 3,629 2,989 7,144 6,131
------ ------ ------- -------
Other expense:
Salaries & employee benefits 3,380 2,874 6,834 5,619
Net occupancy expense 1,142 962 2,224 1,925
Other expense 2,768 2,534 5,407 4,956
------ ------ ------- -------
Total other expense 7,290 6,370 14,465 12,500
------ ------ ------- -------
Income before income tax expense 1,969 1,688 3,812 3,525
Income tax expense 684 586 1,337 1,233
------ ------ ------- -------
Net income $1,285 $1,102 $ 2,475 $ 2,292
------ ------ ------- -------
Basic earnings per share $ 0.31 $ 0.28 $ 0.60 $ 0.58
Diluted earnings per share 0.30 0.27 0.58 0.56