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| FLORIDA                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                         | 65-0655973                           |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization)                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                         | (I.R.S. Employer Identification No.) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                         |                                 |
| 599 9th STREET NORTH, SUITE 101, NAPLES, FLORIDA 34102-5624                                                                                                                                                                                                                                                                                                                                                                               |
| (Address of principal executive offices) (Zip Code)                                                                                                                                                                                                                                                                                                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                         |                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                      | (239) 263-3344                                                                                                                               |                                 |
| (Registrant’s telephone number, including area code)                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                         |                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                      | Not Applicable                                                                                                                               |                                 |
| (Former name, former address and former fiscal year, if changed since last report)                                                                                                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                         |                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                         |                                 |
| Indicate by check mark whether the registrant (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 registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90days.  TYes   £No                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant wasrequired to submit and post such files).  £Yes   £No |
|                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                         |                                 |
| Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “accelerated filer”, “ large accelerated filer” and  “smaller reporting company” in Rule 12b-2 of the Exchange Act (Checkone):                                                                                |
| £ Large accelerated filer                                                                                                                                                                                                                                                                                                                                                                                                            | £ Accelerated filer                                                                                                                     |                                 |
|                     T Non-accelerated filer                                                                                                                                                                                                                                                                                           |                   £ Smaller reporting company |                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                         |                                 |
| Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  £Yes    TNo                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                         |                                 |
| Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:                                                                                                                                                                                                                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                         |                                 |
| Common Stock, $0.10 Par Value                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                         | 14,747,870                           |
| Class                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                         | Outstanding as of July 31, 2009      |

----

INDEX

| PART I.  FINANCIAL INFORMATION           |           |
|---------------------------------------------------------|----------------|
|                                                    | ITEM 1.   | FINANCIAL STATEMENTS  | 3 |
|                                                    | ITEM 2.   | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS  | 20 |
|                                                    | ITEM 3.   | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK  | 36 |
|                                                    | ITEM 4.   | CONTROLS AND PROCEDURES  | 36 |
|                                                    |           |   |   |
|  PART II.  OTHER INFORMATION   |           |
|                                                    | ITEM 1A.  | RISK FACTORS  | 37 |
|                                                    | ITEM 4A.  | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS | 46 |
|                                                    | ITEM 5.   | OTHER INFORMATION  | 46 |
|                                                    | ITEM 6.        | EXHIBITS | 46 |
|                                                    |           |   |   |

Table of Contents

----

Item 1.  Financial Statements

| TIB FINANCIAL CORP.CONSOLIDATED BALANCE SHEETS(Dollars in thousands, except per share data)                                                  |   |
|----------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                         |   | June 30, 2009 |   |   | December 31, 2008 |   |
|                                                                                                                                         |   | (Unaudited) |   |   |   |   |
| Assets                                                                                                                                       |   |   |   |   |   |   |
| Cash and due from banks                                                                                                                      |   | $ | 82,178 |   |   | $ | 69,607 |   |
| Federal funds sold and securities purchased under agreements to resell                                                                       |   |   | 14,684 |   |   |   | 4,127 |   |
| Cash and cash equivalents                                                                                                                    |   |   | 96,862 |   |   |   | 73,734 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |
| Investment securities available for sale                                                                                                     |   |   | 358,452 |   |   |   | 225,770 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |
| Loans, net of deferred loan costs and fees                                                                                                   |   |   | 1,239,711 |   |   |   | 1,224,975 |   |
| Less: Allowance for loan losses                                                                                                              |   |   | 25,446 |   |   |   | 23,783 |   |
| Loans, net                                                                                                                                   |   |   | 1,214,265 |   |   |   | 1,201,192 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |
| Premises and equipment, net                                                                                                                  |   |   | 40,999 |   |   |   | 38,326 |   |
| Goodwill                                                                                                                                     |   |   | 6,361 |   |   |   | 5,160 |   |
| Intangible assets, net                                                                                                                       |   |   | 7,445 |   |   |   | 3,010 |   |
| Accrued interest receivable and other assets                                                                                                 |   |   | 72,697 |   |   |   | 62,922 |   |
| Total Assets                                                                                                                                 |   | $ | 1,797,081 |   |   | $ | 1,610,114 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |
| Liabilities and Shareholders’ Equity                                                                                                   |   |   |   |   |   |   |   |   |
| Liabilities                                                                                                                                  |   |   |   |   |   |   |   |   |
| Deposits:                                                                                                                                    |   |   |   |   |   |   |   |   |
| Noninterest-bearing demand                                                                                                                   |   | $ | 182,236 |   |   | $ | 128,384 |   |
| Interest-bearing                                                                                                                             |   |   | 1,212,582 |   |   |   | 1,007,284 |   |
| Total deposits                                                                                                                               |   |   | 1,394,818 |   |   |   | 1,135,668 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |
| Federal Home Loan Bank (FHLB) advances                                                                                                       |   |   | 125,000 |   |   |   | 202,900 |   |
| Short-term borrowings                                                                                                                        |   |   | 84,114 |   |   |   | 71,423 |   |
| Long-term borrowings                                                                                                                         |   |   | 63,000 |   |   |   | 63,000 |   |
| Accrued interest payable and other liabilities                                                                                               |   |   | 18,181 |   |   |   | 16,009 |   |
| Total liabilities                                                                                                                            |   |   | 1,685,113 |   |   |   | 1,489,000 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |
| Shareholders’ equity                                                                                                                   |   |   |   |   |   |   |   |   |
| Preferred stock – $.10 par value: 5,000,000 shares authorized, 37,000 shares issued and outstanding, liquidation preference of $37,000 |   |   | 33,354 |   |   |   | 32,920 |   |
| Common stock - $.10 par value: 40,000,000 shares authorized, 14,820,597 shares issued,  14,747,870 shares outstanding              |   |   | 1,482 |   |   |   | 1,482 |   |
| Additional paid in capital                                                                                                                   |   |   | 74,323 |   |   |   | 73,163 |   |
| Retained earnings                                                                                                                            |   |   | 4,259 |   |   |   | 14,737 |   |
| Accumulated other comprehensive loss                                                                                                         |   |   | (881 | ) |   |   | (619 | ) |
| Treasury stock, at cost, 72,727 shares                                                                                                       |   |   | (569 | ) |   |   | (569 | ) |
| Total shareholders’ equity                                                                                                             |   |   | 111,968 |   |   |   | 121,114 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |
| Total Liabilities and Shareholders’ Equity                                                                                             |   | $ | 1,797,081 |   |   | $ | 1,610,114 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |
| See accompanying notes to consolidated financial statements                                                                                  |   |

Table of Contents

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|                                                                   |   | Three months endedJune 30, |   |   | Six months endedJune 30, |   |
|------------------------------------------------------------------------|--------|----------------------------|--------|--------|--------------------------|--------|
|                                                                   |   | 2009                       |   |   | 2008                     |   |   | 2009 |   |   | 2008 |   |
| Interest and dividend income                                           |   |                       |   |   |                     |   |   |   |   |   |   |   |
| Loans, including fees                                                  |   | $                          | 17,352 |   |                     | $      | 19,278 |   |   | $ | 35,191 |   |   | $ | 39,428 |   |
| Investment securities:                                                 |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                                |   |                       | 3,410  |   |                     |   | 1,928 |   |   |   | 6,314 |   |   |   | 3,706 |   |
| Tax-exempt                                                             |   |                       | 74     |   |                     |   | 101 |   |   |   | 149 |   |   |   | 213 |   |
| Interest-bearing deposits in other banks                               |   |                       | 20     |   |                     |   | 33 |   |   |   | 40 |   |   |   | 44 |   |
| Federal Home Loan Bank stock                                           |   |                       | 0      |   |                     |   | 125 |   |   |   | (19 | ) |   |   | 252 |   |
| Federal funds sold and securities purchased under agreements to resell |   |                       | 2      |   |                     |   | 312 |   |   |   | 5 |   |   |   | 1,056 |   |
| Total interest and dividend income                                     |   |                       | 20,858 |   |                     |   | 21,777 |   |   |   | 41,680 |   |   |   | 44,699 |   |
|                                                                   |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                                       |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                               |   |                       | 7,151  |   |                     |   | 7,882 |   |   |   | 15,050 |   |   |   | 17,008 |   |
| Federal Home Loan Bank advances                                        |   |                       | 1,279  |   |                     |   | 1,315 |   |   |   | 2,685 |   |   |   | 2,798 |   |
| Short-term borrowings                                                  |   |                       | 26     |   |                     |   | 352 |   |   |   | 50 |   |   |   | 904 |   |
| Long-term borrowings                                                   |   |                       | 708    |   |                     |   | 819 |   |   |   | 1,444 |   |   |   | 1,724 |   |
| Total interest expense                                                 |   |                       | 9,164  |   |                     |   | 10,368 |   |   |   | 19,229 |   |   |   | 22,434 |   |
|                                                                   |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                                                    |   |                       | 11,694 |   |                     |   | 11,409 |   |   |   | 22,451 |   |   |   | 22,265 |   |
|                                                                   |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Provision for loan losses                                              |   |                       | 5,763  |   |                     |   | 5,716 |   |   |   | 11,072 |   |   |   | 8,370 |   |
| Net interest income after provision for loan losses                    |   |                       | 5,931  |   |                     |   | 5,693 |   |   |   | 11,379 |   |   |   | 13,895 |   |
|                                                                   |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest income                                                    |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Service charges on deposit accounts                                    |   |                       | 1,202  |   |                     |   | 719 |   |   |   | 2,168 |   |   |   | 1,441 |   |
| Investment securities gains (losses), net                              |   |                       | 95     |   |                     |   | (1,912 | ) |   |   | 691 |   |   |   | (1,002 | ) |
| Fees on mortgage loans originated and sold                             |   |                       | 318    |   |                     |   | 213 |   |   |   | 433 |   |   |   | 445 |   |
| Investment advisory and trust fees                                     |   |                       | 228    |   |                     |   | 136 |   |   |   | 421 |   |   |   | 261 |   |
| Other income                                                           |   |                       | 489    |   |                     |   | 475 |   |   |   | 998 |   |   |   | 947 |   |
| Total non-interest income                                              |   |                       | 2,332  |   |                     |   | (369 | ) |   |   | 4,711 |   |   |   | 2,092 |   |
|                                                                   |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest expense                                                   |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Salaries and employee benefits                                         |   |                       | 7,068  |   |                     |   | 6,358 |   |   |   | 14,448 |   |   |   | 12,411 |   |
| Net occupancy and equipment expense                                    |   |                       | 2,438  |   |                     |   | 2,186 |   |   |   | 4,590 |   |   |   | 4,200 |   |
| Other expense                                                          |   |                       | 6,652  |   |                     |   | 3,320 |   |   |   | 10,487 |   |   |   | 8,279 |   |
| Total non-interest expense                                             |   |                       | 16,158 |   |                     |   | 11,864 |   |   |   | 29,525 |   |   |   | 24,890 |   |
|                                                                   |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Loss before income taxes                                               |   |                       | (7,895 | )      |                     |   | (6,540 | ) |   |   | (13,435 | ) |   |   | (8,903 | ) |
|                                                                   |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Income tax benefit                                                     |   |                       | (3,008 | )      |                     |   | (2,506 | ) |   |   | (5,090 | ) |   |   | (3,424 | ) |
|                                                                   |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Net Loss                                                               |   | $                          | (4,887 | )      |                     | $      | (4,034 | ) |   | $ | (8,345 | ) |   | $ | (5,479 | ) |
| Income earned by preferred shareholders                                |   |                       | 650    |   |                     |   | - |   |   |   | 1,358 |   |   |   | - |   |
| Net loss allocated to common shareholders                              |   | $                          | (5,537 | )      |                     | $      | (4,034 | ) |   | $ | (9,703 | ) |   | $ | (5,479 | ) |
|                                                                   |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted loss per common share                                |   | $                          | (0.38  | )      |                     | $      | (0.28 | ) |   | $ | (0.66 | ) |   | $ | (0.39 | ) |
|                                                                   |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |

Table of Contents

----

|                                                             |   |  PreferredShares |   |   |  PreferredStock |   |   | Common Shares |   |   | Common Stock |   |   | Additional Paid in Capital |   |   | Retained Earnings |   |   | Accumulated Other Comprehensive Income (Loss) |   |   | TreasuryStock |   |   | Total Shareholders’ Equity |   |
|------------------------------------------------------------------|--------|-----------------------|--------|--------|----------------------|--------|--------|---------------|--------|--------|--------------|--------|--------|----------------------------|--------|--------|-------------------|--------|--------|-----------------------------------------------|--------|--------|---------------|--------|--------|----------------------------------|--------|
| Balance, April 1, 2009                                           |   |                  | 37,000 |   |                 | $      | 33,166 |          |   |   | 14,747,870   |   |   | $                          | 1,482  |   |              | $      | 73,783 |                                          |   | $      | 10,204        |   |   | $                                | (214   | ) |   | $ | (569 | ) |   | $ | 117,852 |   |
| Comprehensive loss:                                              |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   |          |   |   |                             |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                         |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   | (4,887        | )      |   |                             |   |   |   |   |   |   |   |   | (4,887 | ) |
| Other comprehensive loss, net of tax                             |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   |          |   |   |                             |   |   |   |   |   |   |   |   |   |   |
| Net market valuation adjustment on securities available for sale |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   |          |   |   |                             | (608   | ) |   |   |   |   |   |   |   |   |
| Less: reclassification adjustment for gains, net of tax of $36   |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   |          |   |   |                             | (59    | ) |   |   |   |   |   |   |   |   |
| Other comprehensive loss, net of tax benefit of $403:            |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   |          |   |   |                             |   |   |   |   |   |   |   |   | (667 | ) |
| Comprehensive loss                                               |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   |          |   |   |                             |   |   |   |   |   |   |   |   | (5,554 | ) |
| Preferred stock discount accretion                               |   |                  |   |   |                 |   | 188    |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   | (188          | )      |   |                             |   |   |   |   |   |   |   |   | - |   |
| Stock-based compensation and related tax effect                  |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   | 133    |                                          |   |   |          |   |   |                             |   |   |   |   |   |   |   |   | 133 |   |
| Common stock dividend declared                                   |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   | 407    |                                          |   |   | (407          | )      |   |                             |   |   |   |   |   |   |   |   | - |   |
| Cash dividends declared, preferred stock                         |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   | (463          | )      |   |                             |   |   |   |   |   |   |   |   | (463 | ) |
| Balance, June 30, 2009                                           |   |                  | 37,000 |   |                 | $      | 33,354 |          |   |   | 14,747,870   |   |   | $                          | 1,482  |   |              | $      | 74,323 |                                          |   | $      | 4,259         |   |   | $                                | (881   | ) |   | $ | (569 | ) |   | $ | 111,968 |   |
|                                                             |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   |          |   |   |                             |   |   |   |   |   |   |   |   |   |   |

|                                                             |   |  PreferredShares |   |  PreferredStock |   | Common Shares |   |   | Common Stock |   |   | Additional Paid in Capital |   |   | Retained Earnings |   |   | Accumulated Other Comprehensive Income (Loss) |   |   | TreasuryStock |   |   | Total Shareholders’ Equity |   |
|------------------------------------------------------------------|--------|-----------------------|--------|----------------------|--------|---------------|--------|--------|--------------|--------|--------|----------------------------|--------|--------|-------------------|--------|--------|-----------------------------------------------|--------|--------|---------------|--------|--------|----------------------------------|--------|
| Balance, April 1, 2008                                           |   |                  | -      |                 | $      | -             |   |   | 14,716,250   |   |   | $                          | 1,479  |   |              | $      | 66,154 |                                          |   | $      | 36,690        |   |   | $                                | (311   | ) |   | $ | (569 | ) |   | $ | 103,443 |   |
| Comprehensive loss:                                              |   |                  |   |                 |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   |          |   |   |                             |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                         |   |                  |   |                 |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   | (4,034        | )      |   |                             |   |   |   |   |   |   |   |   | (4,034 | ) |
| Other comprehensive loss, net of tax                             |   |                  |   |                 |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   |          |   |   |                             |   |   |   |   |   |   |   |   |   |   |
| Net market valuation adjustment on securities available for sale |   |                  |   |                 |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   |          |   |   |                             | (1,595 | ) |   |   |   |   |   |   |   |   |
| Add: reclassification adjustment for losses, net of tax of $719  |   |                  |   |                 |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   |          |   |   |                             | 1,193  |   |   |   |   |   |   |   |   |   |
| Other comprehensive loss, net of tax benefit of $248:            |   |                  |   |                 |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   |          |   |   |                             |   |   |   |   |   |   |   |   | (402 | ) |
| Comprehensive loss                                               |   |                  |   |                 |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   |          |   |   |                             |   |   |   |   |   |   |   |   | (4,436 | ) |
| Restricted stock grants, net of 1,133 cancellations              |   |                  |   |                 |   |          |   |   | 27,242       |   |   |                       | 3      |   |              |   | (3     | )                                             |   |   |          |   |   |                             |   |   |   |   |   |   |   |   | - |   |
| Private placement of common shares                               |   |                  |   |                 |   |          |   |   |         |   |   |                       |   |   |              |   | (11    | )                                             |   |   |          |   |   |                             |   |   |   |   |   |   |   |   | (11 | ) |
| Stock-based compensation and related tax effect                  |   |                  |   |                 |   |          |   |   |         |   |   |                       |   |   |              |   | 153    |                                          |   |   |          |   |   |                             |   |   |   |   |   |   |   |   | 153 |   |
| Common stock dividend declared                                   |   |                  |   |                 |   |          |   |   |         |   |   |                       |   |   |              |   | 834    |                                          |   |   | (834          | )      |   |                             |   |   |   |   |   |   |   |   | - |   |
| Balance, June 30, 2008                                           |   |                  | -      |                 | $      | -             |   |   | 14,743,492   |   |   | $                          | 1,482  |   |              | $      | 67,127 |                                          |   | $      | 31,822        |   |   | $                                | (713   | ) |   | $ | (569 | ) |   | $ | 99,149 |   |
|                                                             |   |                  |   |                 |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   |          |   |   |                             |   |   |   |   |   |   |   |   |   |   |

Table of Contents

----

|                                                             |   |  PreferredShares |   |   |  PreferredStock |   |   | Common Shares |   |   | Common Stock |   |   | Additional Paid in Capital |   |   | Retained Earnings |   |   | Accumulated Other Comprehensive Income (Loss) |   |   | TreasuryStock |   |   | Total Shareholders’ Equity |   |
|------------------------------------------------------------------|--------|-----------------------|--------|--------|----------------------|--------|--------|---------------|--------|--------|--------------|--------|--------|----------------------------|--------|--------|-------------------|--------|--------|-----------------------------------------------|--------|--------|---------------|--------|--------|----------------------------------|--------|
| Balance, January 1, 2009                                         |   |                  | 37,000 |   |                 | $      | 32,920 |          |   |   | 14,747,870   |   |   | $                          | 1,482  |   |              | $      | 73,163 |                                          |   | $      | 14,737        |   |   | $                                | (619   | ) |   | $ | (569 | ) |   | $ | 121,114 |   |
| Comprehensive loss:                                              |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   |          |   |   |                             |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                         |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   | (8,345        | )      |   |                             |   |   |   |   |   |   |   |   | (8,345 | ) |
| Other comprehensive loss, net of tax                             |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   |          |   |   |                             |   |   |   |   |   |   |   |   |   |   |
| Net market valuation adjustment on securities available for sale |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   |          |   |   |                             | 169    |   |   |   |   |   |   |   |   |   |
| Less: reclassification adjustment for gains, net of tax of $260  |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   |          |   |   |                             | (431   | ) |   |   |   |   |   |   |   |   |
| Other comprehensive loss, net of tax benefit of $158:            |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   |          |   |   |                             |   |   |   |   |   |   |   |   | (262 | ) |
| Comprehensive loss                                               |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   |          |   |   |                             |   |   |   |   |   |   |   |   | (8,607 | ) |
| Issuance costs associated with preferred stock issued            |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   | (48    | )                                             |   |   |          |   |   |                             |   |   |   |   |   |   |   |   | (48 | ) |
| Preferred stock discount accretion                               |   |                  |   |   |                 |   | 434    |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   | (434          | )      |   |                             |   |   |   |   |   |   |   |   | - |   |
| Stock-based compensation and related tax effect                  |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   | 332    |                                          |   |   |          |   |   |                             |   |   |   |   |   |   |   |   | 332 |   |
| Common stock dividends declared                                  |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   | 876    |                                          |   |   | (876          | )      |   |                             |   |   |   |   |   |   |   |   | - |   |
| Cash dividends declared, preferred stock                         |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   | (823          | )      |   |                             |   |   |   |   |   |   |   |   | (823 | ) |
| Balance, June 30, 2009                                           |   |                  | 37,000 |   |                 | $      | 33,354 |          |   |   | 14,747,870   |   |   | $                          | 1,482  |   |              | $      | 74,323 |                                          |   | $      | 4,259         |   |   | $                                | (881   | ) |   | $ | (569 | ) |   | $ | 111,968 |   |
|                                                             |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   |          |   |   |                             |   |   |   |   |   |   |   |   |   |   |

|                                                                                |   |  PreferredShares |   |   |  PreferredStock |   | Common Shares |   |   | Common Stock |   |   | Additional Paid in Capital |   |   | Retained Earnings |   |   | Accumulated Other Comprehensive Income (Loss) |   |   | TreasuryStock |   |   | Total Shareholders’ Equity |   |
|-------------------------------------------------------------------------------------|--------|-----------------------|--------|--------|----------------------|--------|---------------|--------|--------|--------------|--------|--------|----------------------------|--------|--------|-------------------|--------|--------|-----------------------------------------------|--------|--------|---------------|--------|--------|----------------------------------|--------|
| Balance, January 1, 2008                                                            |   |                  | -      |   |                 | $      | -             |   |   | 13,434,240   |   |   | $                          | 1,351  |   |              | $      | 56,067 |                                          |   | $      | 39,151        |   |   | $                                | 240    |   |   | $ | (569 | ) |   | $ | 96,240 |   |
| Cumulative-effect adjustment for split-dollar life insurance postretirement benefit |   |                  |   |   |                 |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   | (141          | )      |   |                             |   |   |   |   |   |   |   |   | (141 | ) |
| Comprehensive loss:                                                                 |   |                  |   |   |                 |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   |          |   |   |                             |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                            |   |                  |   |   |                 |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   | (5,479        | )      |   |                             |   |   |   |   |   |   |   |   | (5,479 | ) |
| Other comprehensive loss, net of tax                                                |   |                  |   |   |                 |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   |          |   |   |                             |   |   |   |   |   |   |   |   |   |   |
| Net market valuation adjustment on securities available for sale                    |   |                  |   |   |                 |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   |          |   |   |                             | (1,578 | ) |   |   |   |   |   |   |   |   |
| Add: reclassification adjustment for losses, net of tax of $377                     |   |                  |   |   |                 |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   |          |   |   |                             | 625    |   |   |   |   |   |   |   |   |   |
| Other comprehensive loss, net of tax benefit of $597:                               |   |                  |   |   |                 |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   |          |   |   |                             |   |   |   |   |   |   |   |   | (953 | ) |
| Comprehensive loss                                                                  |   |                  |   |   |                 |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   |          |   |   |                             |   |   |   |   |   |   |   |   | (6,432 | ) |
| Restricted stock grants, net of 1,461 cancellations                                 |   |                  |   |   |                 |   |          |   |   | 32,486       |   |   |                       | 3      |   |              |   | (3     | )                                             |   |   |          |   |   |                             |   |   |   |   |   |   |   |   | - |   |
| Private placement of common shares                                                  |   |                  |   |   |                 |   |          |   |   | 1,261,212    |   |   |                       | 126    |   |              |   | 9,810  |                                          |   |   |          |   |   |                             |   |   |   |   |   |   |   |   | 9,936 |   |
| Exercise of stock options                                                           |   |                  |   |   |                 |   |          |   |   | 15,554       |   |   |                       | 2      |   |              |   | 96     |                                          |   |   |          |   |   |                             |   |   |   |   |   |   |   |   | 98 |   |
| Stock-based compensation and related tax effect                                     |   |                  |   |   |                 |   |          |   |   |         |   |   |                       |   |   |              |   | 323    |                                          |   |   |          |   |   |                             |   |   |   |   |   |   |   |   | 323 |   |
| Common stock dividends declared                                                     |   |                  |   |   |                 |   |          |   |   |         |   |   |                       |   |   |              |   | 834    |                                          |   |   | (834          | )      |   |                             |   |   |   |   |   |   |   |   | - |   |
| Cash dividends declared, $.0595 per share                                           |   |                  |   |   |                 |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   | (875          | )      |   |                             |   |   |   |   |   |   |   |   | (875 | ) |
| Balance, June 30, 2008                                                              |   |                  | -      |   |                 | $      | -             |   |   | 14,743,492   |   |   | $                          | 1,482  |   |              | $      | 67,127 |                                          |   | $      | 31,822        |   |   | $                                | (713   | ) |   | $ | (569 | ) |   | $ | 99,149 |   |
|                                                                                |   |                  |   |   |                 |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   |          |   |   |                             |   |   |   |   |   |   |   |   |   |   |

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| TIB FINANCIAL CORP.CONSOLIDATED STATEMENTS OF CASH FLOWSINCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS(Unaudited)(Dollars in thousands) |   |
|-------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                      |   | Six Months Ended June 30, |   |
|                                                                                                                                      |   | 2009 |   |   | 2008 |   |
| Cash flows from operating activities:                                                                                                     |   |   |   |   |   |   |
| Net loss                                                                                                                                  |   | $ | (8,345 | ) |   | $ | (5,479 | ) |
| Adjustments to reconcile net loss to net cash provided by operating activities:                                                           |   |   |   |   |   |   |   |   |
| Depreciation and amortization                                                                                                             |   |   | 2,216 |   |   |   | 1,982 |   |
| Provision for loan losses                                                                                                                 |   |   | 11,072 |   |   |   | 8,370 |   |
| Deferred income tax benefit                                                                                                               |   |   | (6,461 | ) |   |   | (2,870 | ) |
| Investment securities net realized gains                                                                                                  |   |   | (1,454 | ) |   |   | (910 | ) |
| Net amortization of investment premium/discount                                                                                           |   |   | 847 |   |   |   | (36 | ) |
| Write-down of investment securities                                                                                                       |   |   | 763 |   |   |   | 1,912 |   |
| Stock-based compensation                                                                                                                  |   |   | 370 |   |   |   | 345 |   |
| Loss on sales of OREO                                                                                                                     |   |   | 178 |   |   |   | - |   |
| Other                                                                                                                                     |   |   | 260 |   |   |   | (147 | ) |
| Mortgage loans originated for sale                                                                                                        |   |   | (23,297 | ) |   |   | (26,267 | ) |
| Proceeds from sales of mortgage loans                                                                                                     |   |   | 21,706 |   |   |   | 29,850 |   |
| Fees on mortgage loans sold                                                                                                               |   |   | (395 | ) |   |   | (441 | ) |
| Change in accrued interest receivable and other assets                                                                                    |   |   | 1,452 |   |   |   | (3,025 | ) |
| Change in accrued interest payable and other liabilities                                                                                  |   |   | 1,772 |   |   |   | 3,216 |   |
| Net cash provided by operating activities                                                                                                 |   |   | 684 |   |   |   | 6,500 |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |
| Cash flows from investing activities:                                                                                                     |   |   |   |   |   |   |   |   |
| Purchases of investment securities available for sale                                                                                     |   |   | (497,814 | ) |   |   | (70,451 | ) |
| Sales of investment securities available for sale                                                                                         |   |   | 290,916 |   |   |   | 25,016 |   |
| Repayments of principal and maturities of investment securities available for sale                                                        |   |   | 105,489 |   |   |   | 25,405 |   |
| Acquisition of Naples Capital Advisors business                                                                                           |   |   | - |   |   |   | (1,365 | ) |
| Net cash received in assumption of operations - Riverside Bank of the Gulf Coast                                                          |   |   | 271,398 |   |   |   | - |   |
| Net (purchase) sale of FHLB stock                                                                                                         |   |   | 1,277 |   |   |   | (1,269 | ) |
| Loans originated or acquired, net of principal repayments                                                                                 |   |   | (22,490 | ) |   |   | (75,935 | ) |
| Purchases of premises and equipment                                                                                                       |   |   | (1,252 | ) |   |   | (661 | ) |
| Proceeds from sale of OREO                                                                                                                |   |   | 2,038 |   |   |   | - |   |
| Proceeds from disposal of premises, equipment and intangible assets                                                                       |   |   | 18 |   |   |   | 14 |   |
| Net cash provided by (used in) investing activities                                                                                       |   |   | 149,580 |   |   |   | (99,246 | ) |
|                                                                                                                                      |   |   |   |   |   |   |   |   |
| Cash flows from financing activities:                                                                                                     |   |   |   |   |   |   |   |   |
| Net increase in demand, money market and savings accounts                                                                                 |   |   | 85,803 |   |   |   | 21,583 |   |
| Net increase (decrease) in time deposits                                                                                                  |   |   | (52,486 | ) |   |   | 17,373 |   |
| Net change in Brokered time deposits                                                                                                      |   |   | (93,399 | ) |   |   | 49,276 |   |
| Net increase (decrease) in federal funds purchased and securities sold under agreements to repurchase                                     |   |   | 11,755 |   |   |   | 2,454 |   |
| Increase in long term FHLB advances                                                                                                       |   |   | - |   |   |   | 57,900 |   |
| Repayment of long term FHLB advances                                                                                                      |   |   | (7,900 | ) |   |   | (75,000 | ) |
| Net change in short term FHLB advances                                                                                                    |   |   | (70,000 | ) |   |   | 45,000 |   |
| Proceeds from exercise of stock options                                                                                                   |   |   | - |   |   |   | 98 |   |
| Income tax effect related to stock-based compensation                                                                                     |   |   | (38 | ) |   |   | (22 | ) |
| Proceeds from private stock offering                                                                                                      |   |   | - |   |   |   | 9,936 |   |
| Net issuance costs of preferred stock and common warrants                                                                                 |   |   | (48 | ) |   |   | - |   |
| Cash dividends paid to common shareholders                                                                                                |   |   | - |   |   |   | (1,674 | ) |
| Cash dividends paid to preferred shareholders                                                                                             |   |   | (823 | ) |   |   | - |   |
| Net cash provided by (used in) financing activities                                                                                       |   |   | (127,136 | ) |   |   | 126,924 |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |
| Net increase in cash and cash equivalents                                                                                                 |   |   | 23,128 |   |   |   | 34,178 |   |
| Cash and cash equivalents at beginning of period                                                                                          |   |   | 73,734 |   |   |   | 71,059 |   |
| Cash and cash equivalents at end of period                                                                                                |   | $ | 96,862 |   |   | $ | 105,237 |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |
| Supplemental disclosures of cash paid:                                                                                                    |   |   |   |   |   |   |   |   |
| Interest                                                                                                                                  |   | $ | 18,857 |   |   | $ | 22,176 |   |
| Income taxes                                                                                                                              |   |   | - |   |   |   | 125 |   |
| Supplemental information:                                                                                                                 |   |   |   |   |   |   |   |   |
| Fair value of noncash assets acquired                                                                                                     |   | $ | 49,193 |   |   | $ | - |   |
| Fair value of liabilities assumed                                                                                                         |   |   | 320,594 |   |   |   | - |   |
|     Transfer of loans to OREO                                                                                              |   |   | 8,780  |   |   |   | - |   |
| Transfer of OREO to Premises and Equipment                                                                                                |   |   |  2,942 |   |   |   | - |   |
| See accompanying notes to consolidated financial statements                                                                               |   |

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|                                                |   | June 30, 2009  |    |
|-----------------------------------------------------|--------|----------------|---------|
|                                                |   | Amortized Cost |    |   | Unrealized Gains |   |   | Unrealized Losses |   |   | Estimated Fair Value |   |
| U.S. Government agencies and corporations           |   | $              | 61,016  |   |   | $ | 96 |   |   | $ | 79 |   |   | $ | 61,033 |   |
| States and political subdivisions—tax exempt  |   |           | 7,753   |   |   |   | 168 |   |   |   | 1 |   |   |   | 7,920 |   |
| States and political subdivisions—taxable     |   |           | 2,360   |   |   |   | - |   |   |   | 91 |   |   |   | 2,269 |   |
| Marketable equity securities                        |   |           | 12      |   |   |   | 7 |   |   |   | - |   |   |   | 19 |   |
| Mortgage-backed securities -  residential |   |           | 275,266 |   |   |   | 3,418 |   |   |   | 474 |   |   |   | 278,210 |   |
| Money market mutual funds                           |   |           | 5,582   |   |   |   | - |   |   |   | - |   |   |   | 5,582 |   |
| Corporate bonds                                     |   |           | 2,874   |   |   |   | - |   |   |   | 1,559 |   |   |   | 1,315 |   |
| Collateralized debt obligations                     |   |           | 5,000   |   |   |   | - |   |   |   | 2,896 |   |   |   | 2,104 |   |
|                                                |   | $              | 359,863 |   |   | $ | 3,689 |   |   | $ | 5,100 |   |   | $ | 358,452 |   |
|                                                |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                |   | December 31, 2008 |    |
|-----------------------------------------------------|--------|-------------------|---------|
|                                                |   | Amortized Cost    |    |   | Unrealized Gains |   |   | Unrealized Losses |   |   | Estimated Fair Value |   |
| U.S. Government agencies and corporations           |   | $                 | 50,892  |   |   | $ | 776 |   |   | $ | - |   |   | $ | 51,668 |   |
| States and political subdivisions—tax exempt  |   |              | 7,751   |   |   |   | 59 |   |   |   | 21 |   |   |   | 7,789 |   |
| States and political subdivisions—taxable     |   |              | 2,407   |   |   |   | - |   |   |   | 70 |   |   |   | 2,337 |   |
| Marketable equity securities                        |   |              | 12      |   |   |   | - |   |   |   | - |   |   |   | 12 |   |
| Mortgage-backed securities -  residential |   |              | 157,066 |   |   |   | 1,332 |   |   |   | 421 |   |   |   | 157,977 |   |
| Corporate bonds                                     |   |              | 2,870   |   |   |   | - |   |   |   | 1,158 |   |   |   | 1,712 |   |
| Collateralized debt obligations                     |   |              | 5,763   |   |   |   | - |   |   |   | 1,488 |   |   |   | 4,275 |   |
|                                                |   | $                 | 226,761 |   |   | $ | 2,167 |   |   | $ | 3,158 |   |   | $ | 225,770 |   |
|                                                |   |              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |

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|                                     |   | June 30, 2009 |    |
|------------------------------------------|--------|---------------|---------|
|                                     |   | Fair Value    |    |   | Amortized Cost |   |
| Due in one year or less                  |   | $             | 5,729   |   |   | $ | 5,727 |   |
| Due after one year through five years    |   |          | 64,786  |   |   |   | 64,655 |   |
| Due after five years through ten years   |   |          | 4,066   |   |   |   | 4,014 |   |
| Due after ten years                      |   |          | 5,643   |   |   |   | 10,189 |   |
| Marketable equity securities             |   |          | 18      |   |   |   | 12 |   |
| Mortgage-backed securities - residential |   |          | 278,210 |   |   |   | 275,266 |   |
|                                     |   | $             | 358,452 |   |   |   | 359,863 |   |
|                                     |   |          |    |   |   |   |   |   |

|                                               |   | Less than 12 Months  |   |   | 12 Months or Longer |   |   | Total                |   |
|----------------------------------------------------|--------|----------------------|--------|--------|---------------------|--------|--------|----------------------|--------|
| June 30, 2009                                      |   | Estimated Fair Value |   |   | Unrealized Losses   |   |   | Estimated Fair Value |   |   | Unrealized Losses |   |   | Estimated Fair Value |   |   | Unrealized Losses |   |
| U.S. Government agencies and corporations          |   | $                    | 6,931  |   |                | $      | 79     |                 |   | $ | - |   |   | $ | - |   |   | $ | 6,931 |   |   | $ | 79 |   |
| States and political subdivisions—tax exempt |   |                 | -      |   |                |   | -      |                 |   |   | 274 |   |   |   | 1 |   |   |   | 274 |   |   |   | 1 |   |
| States and political subdivisions—taxable    |   |                 | 2,224  |   |                |   | 91     |                 |   |   | - |   |   |   | - |   |   |   | 2,224 |   |   |   | 91 |   |
| Mortgage-backed securities - residential           |   |                 | 41,109 |   |                |   | 223    |                 |   |   | 13,645 |   |   |   | 251 |   |   |   | 54,754 |   |   |   | 474 |   |
| Corporate bonds                                    |   |                 | -      |   |                |   | -      |                 |   |   | 1,315 |   |   |   | 1,559 |   |   |   | 1,315 |   |   |   | 1,559 |   |
| Collateralized debt obligation                     |   |                 | -      |   |                |   | -      |                 |   |   | 2,104 |   |   |   | 2,896 |   |   |   | 2,104 |   |   |   | 2,896 |   |
| Total temporarily impaired                         |   | $                    | 50,264 |   |                | $      | 393    |                 |   | $ | 17,338 |   |   | $ | 4,707 |   |   | $ | 67,602 |   |   | $ | 5,100 |   |
|                                               |   |                 |   |   |                |   |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                               |   | Less than 12 Months  |   |   | 12 Months or Longer |   |   | Total                |   |
|----------------------------------------------------|--------|----------------------|--------|--------|---------------------|--------|--------|----------------------|--------|
| December 31, 2008                                  |   | Estimated Fair Value |   |   | Unrealized Losses   |   |   | Estimated Fair Value |   |   | Unrealized Losses |   |   | Estimated Fair Value |   |   | Unrealized Losses |   |
| U.S. Government agencies and corporations          |   | $                    | -      |   |                | $      | -      |                 |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| States and political subdivisions—tax exempt |   |                 | 2,413  |   |                |   | 20     |                 |   |   | 274 |   |   |   | 1 |   |   |   | 2,687 |   |   |   | 21 |   |
| States and political subdivisions-taxable          |   |                 | 2,247  |   |                |   | 70     |                 |   |   | - |   |   |   | - |   |   |   | 2,247 |   |   |   | 70 |   |
| Mortgage-backed securities - residential           |   |                 | 14,045 |   |                |   | 83     |                 |   |   | 17,015 |   |   |   | 338 |   |   |   | 31,060 |   |   |   | 421 |   |
| Corporate bonds                                    |   |                 | -      |   |                |   | -      |                 |   |   | 1,712 |   |   |   | 1,158 |   |   |   | 1,712 |   |   |   | 1,158 |   |
| Collateralized debt obligations                    |   |                 | -      |   |                |   | -      |                 |   |   | 3,512 |   |   |   | 1,488 |   |   |   | 3,512 |   |   |   | 1,488 |   |
| Total temporarily impaired                         |   | $                    | 18,705 |   |                | $      | 173    |                 |   | $ | 22,513 |   |   | $ | 2,985 |   |   | $ | 41,218 |   |   | $ | 3,158 |   |
|                                               |   |                 |   |   |                |   |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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|                                        |   | Three Months Ended June 30, 2009 |   |
|---------------------------------------------|--------|----------------------------------|--------|
| Beginning balance, April 1, 2009            |   | $                                | 9,256  |   |
| Additions/Subtractions                      |   |                             |   |   |
| Credit losses recognized during the quarter |   |                             | 740    |   |
| Ending balance, June 30, 2009               |   | $                                | 9,996  |   |
|                                        |   |                             |   |   |

|                              |   | June 30, 2009 |      |   | December 31,2008 |   |
|-----------------------------------|--------|--------------------|-----------|--------|------------------|--------|
| Real estate mortgage loans:       |   |               |      |   |             |   |
| Commercial                        |   | $                  | 683,763   |   |             | $      | 658,516 |   |
| Residential                       |   |               | 222,260   |   |             |   | 205,062 |   |
| Farmland                          |   |               | 13,497    |   |             |   | 13,441 |   |
| Construction and vacant land      |   |               | 139,425   |   |             |   | 147,309 |   |
| Commercial and agricultural loans |   |               | 67,214    |   |             |   | 71,352 |   |
| Indirect auto loans               |   |               | 63,243    |   |             |   | 82,028 |   |
| Home equity loans                 |   |               | 38,100    |   |             |   | 34,062 |   |
| Other consumer loans              |   |               | 10,854    |   |             |   | 11,549 |   |
| Total loans                       |   |               | 1,238,356 |   |             |   | 1,223,319 |   |
|                              |   |               |      |   |             |   |   |   |
| Net deferred loan costs           |   |               | 1,355     |   |             |   | 1,656 |   |
| Loans, net of deferred loan costs |   | $                  | 1,239,711 |   |             | $      | 1,224,975 |   |

|                                         |   | Six Months EndedJune 30, |   |
|----------------------------------------------|--------|--------------------------|--------|
|                                         |   | 2009                     |   |   | 2008 |   |
| Balance, January 1                           |   | $                        | 23,783 |   |   | $ | 14,973 |   |
| Provision for loan losses charged to expense |   |                     | 11,072 |   |   |   | 8,370 |   |
| Loans charged off                            |   |                     | (9,533 | ) |   |   | (6,751 | ) |
| Recoveries of loans previously charged off   |   |                     | 124    |   |   |   | 35 |   |
| Balance, June 30                             |   | $                        | 25,446 |   |   | $ | 16,627 |   |
|                                         |   |                     |   |   |   |   |   |   |

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|   | Nonaccrual loans were as follows: |
|--------|-----------------------------------|

|                                   |   | As of June 30, 2009 |   |   | As of March 31, 2009 |   |   | As of December 31, 2008 |   |
|----------------------------------------|--------|---------------------|--------|--------|----------------------|--------|--------|-------------------------|--------|
| Loan Type                              |   | Number ofLoans      |   |   | Outstanding Balance  |   |   | Number ofLoans          |   |   | Outstanding Balance |   |   | Number ofLoans |   |   | Outstanding Balance |   |
| Residential 1-4 family                 |   |                | 24     |   |                 | $      | 5,138  |                    |   |   | 15 |   |   | $ | 3,815 |   |   |   | 18 |   |   | $ | 4,014 |   |
| Commercial 1-4 family investment       |   |                | 9      |   |                 |   | 8,705  |                    |   |   | 10 |   |   |   | 7,892 |   |   |   | 9 |   |   |   | 7,943 |   |
| Commercial and agricultural            |   |                | 6      |   |                 |   | 596    |                    |   |   | 8 |   |   |   | 659 |   |   |   | 2 |   |   |   | 64 |   |
| Commercial real estate                 |   |                | 21     |   |                 |   | 11,322 |                    |   |   | 20 |   |   |   | 13,719 |   |   |   | 18 |   |   |   | 13,133 |   |
| Land development                       |   |                | 11     |   |                 |   | 34,583 |                    |   |   | 6 |   |   |   | 17,707 |   |   |   | 4 |   |   |   | 12,584 |   |
| Government guaranteed loans            |   |                | 3      |   |                 |   | 145    |                    |   |   | 3 |   |   |   | 143 |   |   |   | 3 |   |   |   | 143 |   |
| Indirect auto, auto and consumer loans |   |                | 121    |   |                 |   | 1,320  |                    |   |   | 162 |   |   |   | 1,712 |   |   |   | 155 |   |   |   | 1,895 |   |
|                                   |   |                |   |   |                 | $      | 61,809 |                    |   |   |   |   |   | $ | 45,647 |   |   |   |   |   |   | $ | 39,776 |   |
|                                   |   |                |   |   |                 |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                              |   | June 30, 2009 |    |   | March 31, 2009 |   |   | December 31, 2008 |   |
|---------------------------------------------------|--------|---------------|---------|--------|----------------|--------|--------|-------------------|--------|
| Loans with no allocated allowance for loan losses |   | $             | 37,112  |   |           | $      | 27,289 |              |   | $ | 8,344 |   |
| Loans with allocated allowance for loan losses    |   |          | 66,493  |   |           |   | 60,783 |              |   |   | 53,765 |   |
| Total                                             |   | $             | 103,605 |   |           | $      | 88,072 |              |   | $ | 62,109 |   |
|                                              |   |          |    |   |           |   |   |              |   |   |   |   |
| Amount of the allowance for loan losses allocated |   | $             | 8,484   |   |           | $      | 7,947  |              |   | $ | 6,116 |   |
|                                              |   |          |    |   |           |   |   |              |   |   |   |   |

|                                                |   | Three Months EndedJune 30, |       |   | Six Months EndedJune 30, |   |
|-----------------------------------------------------|--------|----------------------------|------------|--------|--------------------------|--------|
|                                                |   | 2009                       |       |   | 2008                     |   |   | 2009 |   |   | 2008 |   |
| Basic                                               |   |                       | 14,669,107 |   |                     |   | 14,631,184 |   |   |   | 14,661,879 |   |   |   | 14,157,535 |   |
| Dilutive effect of options outstanding              |   |                       | -          |   |                     |   | - |   |   |   | - |   |   |   | - |   |
| Dilutive effect of unvested restricted stock awards |   |                       | -          |   |                     |   | - |   |   |   | - |   |   |   | - |   |
| Dilutive effect of warrants                         |   |                       | -          |   |                     |   | - |   |   |   | - |   |   |   | - |   |
| Diluted                                             |   |                       | 14,669,107 |   |                     |   | 14,631,184 |   |   |   | 14,661,879 |   |   |   | 14,157,535 |   |

|                                           |   | Three Months EndedJune 30, |      |   | Six Months EndedJune 30, |   |
|------------------------------------------------|--------|----------------------------|-----------|--------|--------------------------|--------|
|                                           |   | 2009                       |      |   | 2008                     |   |   | 2009 |   |   | 2008 |   |
| Anti-dilutive stock options                    |   |                       | 675,155   |   |                     |   | 619,152 |   |   |   | 684,044 |   |   |   | 579,771 |   |
| Anti-dilutive unvested restricted stock awards |   |                       | 76,066    |   |                     |   | 84,584 |   |   |   | 85,893 |   |   |   | 80,263 |   |
| Anti-dilutive warrants                         |   |                       | 2,356,647 |   |                     |   | 1,261,212 |   |   |   | 2,356,647 |   |   |   | 796,920 |   |

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|                                     |   | Well Capitalized Requirement  |              | Adequately Capitalized Requirement  |   | June 30,2009Actual  |             | December 31, 2008Actual  |
|------------------------------------------|--------|------------------------------------|-------------------|------------------------------------------|--------|--------------------------|------------------|-------------------------------|
| Tier 1 Capital (to Average Assets)       |   |                               |              |                                     |   |                     |             |                          |   |   |   |   |
| Consolidated                             |   |                               | N/A               |                                     |   |                     | ≥ 4.0 | %                             |   |   | 6.4 | % |   |   | 8.9 | % |
| TIB Bank                                 |   |                               | ≥ 5.0  | %                                        |   |                     | ≥ 4.0 | %                             |   |   | 6.5 | % |   |   | 7.3 | % |
| The Bank of Venice                       |   |                               | ≥ 5.0  | %                                        |   |                     | ≥ 4.0 | %                             |   |   | 6.5 | % |   |   | 8.1 | % |
|                                     |   |                               |              |                                     |   |                     |             |                          |   |   |   |   |   |   |   |   |
| Tier 1 Capital (to Risk Weighted Assets) |   |                               |              |                                     |   |                     |             |                          |   |   |   |   |   |   |   |   |
| Consolidated                             |   |                               | N/A               |                                     |   |                     | ≥ 4.0 | %                             |   |   | 8.9 | % |   |   | 11.3 | % |
| TIB Bank                                 |   |                               | ≥ 6.0       | %                                        |   |                     | ≥ 4.0 | %                             |   |   | 8.8 | % |   |   | 9.3 | % |
| The Bank of Venice                       |   |                               | ≥ 6.0  | %                                        |   |                     | ≥ 4.0 | %                             |   |   | 10.5 | % |   |   | 11.2 | % |
|                                     |   |                               |              |                                     |   |                     |             |                          |   |   |   |   |   |   |   |   |
| Total Capital (to Risk Weighted Assets)  |   |                               |              |                                     |   |                     |             |                          |   |   |   |   |   |   |   |   |
| Consolidated                             |   |                               | N/A               |                                     |   |                     | ≥ 8.0 | %                             |   |   | 10.1 | % |   |   | 12.6 | % |
| TIB Bank                                 |   |                               | ≥ 10.0 | %                                        |   |                     | ≥ 8.0 | %                             |   |   | 10.0 | % |   |   | 10.5 | % |
| The Bank of Venice                       |   |                               | ≥ 10.0 | %                                        |   |                     | ≥ 8.0 | %                             |   |   | 11.7 | % |   |   | 12.4 | % |
|                                     |   |                               |              |                                     |   |                     |             |                          |   |   |   |   |   |   |   |   |

| Cash and cash equivalents                                       |   | $      | 271,398 |   |
|-----------------------------------------------------------------|--------|--------|---------|--------|
| Securities available for sale                                   |   |   | 31,850  |   |
| Loans                                                           |   |   | 10,737  |   |
| Intangible assets                                               |   |   | 5,087   |   |
| Goodwill                                                        |   |   | 1,201   |   |
| Other                                                           |   |   | 321     |   |
| Total assets acquired                                           |   | $      | 320,594 |   |
|                                                            |   |   |    |   |
| Deposits (including deposit premium on certificates of deposit) |   |   | 319,232 |   |
| Other liabilities                                               |   |   | 1,362   |   |
| Total liabilities assumed                                       |   | $      | 320,594 |   |
|                                                            |   |   |    |   |

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|                                               |   | Fair Value Measurements at June 30, 2009 Using |    |
|----------------------------------------------------|--------|------------------------------------------------|---------|
|                                               |   | June 30, 2009                                  |    |   | Quoted Prices in Active Markets for Identical Assets(Level 1) |   |   | Significant Other Observable Inputs (Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   |
| Assets:                                            |   |                                           |    |   |   |   |   |   |   |   |   |   |
| U.S. Government agencies and corporations          |   | $                                              | 61,033  |   |   | $ | - |   |   | $ | 61,033 |   |   | $ | - |   |
| States and political subdivisions—tax exempt |   |                                           | 7,920   |   |   |   | - |   |   |   | 7,920 |   |   |   | - |   |
| States and political subdivisions—taxable    |   |                                           | 2,269   |   |   |   | - |   |   |   | 2,269 |   |   |   | - |   |
| Marketable equity securities                       |   |                                           | 19      |   |   |   | - |   |   |   | 19 |   |   |   | - |   |
| Mortgage-backed securities - residential           |   |                                           | 278,210 |   |   |   | - |   |   |   | 278,210 |   |   |   | - |   |
| Money Market Mutual Funds                          |   |                                           | 5,582   |   |   |   | 5,582 |   |   |   | - |   |   |   | - |   |
| Corporate bonds                                    |   |                                           | 1,315   |   |   |   | - |   |   |   | 1,315 |   |   |   | - |   |
| Collateralized debt obligations                    |   |                                           | 2,104   |   |   |   | - |   |   |   | - |   |   | $ | 2,104 |   |
| Available for sale securities                      |   | $                                              | 358,452 |   |   | $ | 5,582 |   |   | $ | 350,766 |   |   | $ | 2,104 |   |
|                                               |   |                                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |

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|                                               |   | Fair Value Measurements at December 31, 2008 Using |    |
|----------------------------------------------------|--------|----------------------------------------------------|---------|
|                                               |   | December 31, 2008                                  |    |   | Quoted Prices in Active Markets for Identical Assets(Level 1) |   |   | Significant Other Observable Inputs (Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   |
| Assets:                                            |   |                                               |    |   |   |   |   |   |   |   |   |   |
| U.S. Government agencies and corporations          |   | $                                                  | 51,668  |   |   | $ | - |   |   | $ | 51,668 |   |   | $ | - |   |
| States and political subdivisions—tax exempt |   |                                               | 7,789   |   |   |   | - |   |   |   | 7,789 |   |   |   | - |   |
| States and political subdivisions—taxable    |   |                                               | 2,337   |   |   |   | - |   |   |   | 2,337 |   |   |   | - |   |
| Marketable equity securities                       |   |                                               | 12      |   |   |   | - |   |   |   | 12 |   |   |   | - |   |
| Mortgage-backed securities - residential           |   |                                               | 157,977 |   |   |   | - |   |   |   | 157,977 |   |   |   | - |   |
| Corporate bonds                                    |   |                                               | 1,712   |   |   |   | - |   |   |   | 1,712 |   |   |   | - |   |
| Collateralized debt obligations                    |   |                                               | 4,275   |   |   |   | - |   |   |   | - |   |   |   | 4,275 |   |
| Available for sale securities                      |   | $                                                  | 225,770 |   |   | $ | - |   |   | $ | 221,495 |   |   | $ | 4,275 |   |
|                                               |   |                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                         |   | Fair Value Measurements Using Significant Unobservable Inputs (Level 3)Collateralized Debt Obligations |   |
|--------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------|--------|
|                                                         |   | 2009                                                                                                   |   |   | 2008 |   |
| Beginning balance, April 1,                                  |   | $                                                                                                      | 3,958  |   |   | $ | 5,657 |   |
| Included in earnings – other than temporary impairment |   |                                                                                                   | (740   | ) |   |   | (956 | ) |
| Included in other comprehensive income                       |   |                                                                                                   | (1,114 | ) |   |   | 454 |   |
| Transfer in to Level 3                                       |   |                                                                                                   | -      |   |   |   | 4,718 |   |
| Ending balance June 30,                                      |   | $                                                                                                      | 2,104  |   |   | $ | 9,873 |   |
|                                                         |   |                                                                                                   |   |   |   |   |   |   |

|                                                         |   | Fair Value Measurements Using Significant Unobservable Inputs (Level 3)Collateralized Debt Obligations |   |
|--------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------|--------|
|                                                         |   | 2009                                                                                                   |   |   | 2008 |   |
| Beginning balance, January 1,                                |   | $                                                                                                      | 4,275  |   |   | $ | 6,111 |   |
| Included in earnings – other than temporary impairment |   |                                                                                                   | (763   | ) |   |   | (956 | ) |
| Included in other comprehensive income                       |   |                                                                                                   | (1,408 | ) |   |   | - |   |
| Transfer in to Level 3                                       |   |                                                                                                   | -      |   |   |   | 4,718 |   |
| Ending balance June 30,                                      |   | $                                                                                                      | 2,104  |   |   | $ | 9,873 |   |
|                                                         |   |                                                                                                   |   |   |   |   |   |   |

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|                                               |   | Fair Value Measurements at June 30, 2009 Using |    |
|----------------------------------------------------|--------|------------------------------------------------|---------|
|                                               |   | June 30, 2009                                  |    |   | Quoted Prices in Active Markets for Identical Assets(Level 1) |   |   | Significant Other Observable Inputs (Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   |
| Assets:                                            |   |                                           |    |   |   |   |   |   |   |   |   |   |
| U.S. Government agencies and corporations          |   | $                                              | 61,033  |   |   | $ | - |   |   | $ | 61,033 |   |   | $ | - |   |
| States and political subdivisions—tax exempt |   |                                           | 7,920   |   |   |   | - |   |   |   | 7,920 |   |   |   | - |   |
| States and political subdivisions—taxable    |   |                                           | 2,269   |   |   |   | - |   |   |   | 2,269 |   |   |   | - |   |
| Marketable equity securities                       |   |                                           | 19      |   |   |   | - |   |   |   | 19 |   |   |   | - |   |
| Mortgage-backed securities - residential           |   |                                           | 278,210 |   |   |   | - |   |   |   | 278,210 |   |   |   | - |   |
| Money Market Mutual Funds                          |   |                                           | 5,582   |   |   |   | 5,582 |   |   |   | - |   |   |   | - |   |
| Corporate bonds                                    |   |                                           | 1,315   |   |   |   | - |   |   |   | 1,315 |   |   |   | - |   |
| Collateralized debt obligations                    |   |                                           | 2,104   |   |   |   | - |   |   |   | - |   |   | $ | 2,104 |   |
| Available for sale securities                      |   | $                                              | 358,452 |   |   | $ | 5,582 |   |   | $ | 350,766 |   |   | $ | 2,104 |   |
|                                               |   |                                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                               |   | Fair Value Measurements at December 31, 2008 Using |    |
|----------------------------------------------------|--------|----------------------------------------------------|---------|
|                                               |   | December 31, 2008                                  |    |   | Quoted Prices in Active Markets for Identical Assets(Level 1) |   |   | Significant Other Observable Inputs (Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   |
| Assets:                                            |   |                                               |    |   |   |   |   |   |   |   |   |   |
| U.S. Government agencies and corporations          |   | $                                                  | 51,668  |   |   | $ | - |   |   | $ | 51,668 |   |   | $ | - |   |
| States and political subdivisions—tax exempt |   |                                               | 7,789   |   |   |   | - |   |   |   | 7,789 |   |   |   | - |   |
| States and political subdivisions—taxable    |   |                                               | 2,337   |   |   |   | - |   |   |   | 2,337 |   |   |   | - |   |
| Marketable equity securities                       |   |                                               | 12      |   |   |   | - |   |   |   | 12 |   |   |   | - |   |
| Mortgage-backed securities - residential           |   |                                               | 157,977 |   |   |   | - |   |   |   | 157,977 |   |   |   | - |   |
| Corporate bonds                                    |   |                                               | 1,712   |   |   |   | - |   |   |   | 1,712 |   |   |   | - |   |
| Collateralized debt obligations                    |   |                                               | 4,275   |   |   |   | - |   |   |   | - |   |   |   | 4,275 |   |
| Available for sale securities                      |   | $                                                  | 225,770 |   |   | $ | - |   |   | $ | 221,495 |   |   | $ | 4,275 |   |
|                                               |   |                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                             |   | June 30, 2009  |      |
|------------------------------------------------------------------|--------|----------------|-----------|
|                                                             |   | Carrying Value |      |   | Estimated Fair Value |   |
| Financial assets:                                                |   |           |      |   |   |   |
| Cash and cash equivalents                                        |   | $              | 96,862    |   |   | $ | 96,862 |   |
| Investment securities available for sale                         |   |           | 358,452   |   |   |   | 358,452 |   |
| Loans, net                                                       |   |           | 1,214,265 |   |   |   | 1,088,245 |   |
| Federal Home Loan Bank and Independent Bankers’ Bank stock |   |           | 10,735    |   |   | NM |   |
| Accrued interest receivable                                      |   |           | 6,668     |   |   |   | 6,668 |   |
|                                                             |   |           |      |   |   |   |   |   |
| Financial liabilities:                                           |   |           |      |   |   |   |   |   |
| Non-contractual deposits                                         |   |           | 708,224   |   |   |   | 708,224 |   |
| Contractual deposits                                             |   |           | 686,594   |   |   |   | 693,157 |   |
| Federal Home Loan Bank Advances                                  |   |           | 125,000   |   |   |   | 132,527 |   |
| Short-term borrowings                                            |   |           | 84,114    |   |   |   | 84,108 |   |
| Long-term repurchase agreements                                  |   |           | 30,000    |   |   |   | 30,887 |   |
| Subordinated debentures                                          |   |           | 33,000    |   |   |   | 14,138 |   |
| Accrued interest payable                                         |   |           | 8,383     |   |   |   | 8,383 |   |
|                                                             |   |           |      |   |   |   |   |   |

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Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations

| ·   | The net interest margin increased 13 basis points to 2.78% during the quarter in comparison to 2.65% in the first quarter. The increase is due primarily to the investment strategy related to the acquired Riverside deposits and the continued reduction of the interest cost of our deposits and other funding.  The net interest margin continues tobe adversely impacted by the level of non-accrual loans and nonperforming assets, which reduced the margin by approximately 18 basis points.  We continue to maintain a higher level of money market and other short-term investments in light of the continuing economic stress and elevated volatility of financial markets, which also reduced the margin. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We continue to focus on relationship based lending and generated approximately $29 million of commercial loans and originated $42 million of residential mortgages. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Under challenging and volatile financial market conditions, Naples Capital Advisors and TIB Bank’s trust department continued to establish new investment management and trust relationships increasing the market value of assets under management to $120 million as of quarter end while TIB private bankers generated net growth of deposits during thequarter of $8 million resulting in total deposits of $56 million. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | With respect to the Riverside transaction, during the second quarter, we closed one small branch office, continued to reduce the operation expenses of the acquired offices and have retained approximately 92% of the core deposits assumed while maintaining the attractive mix and reducing the interest cost of the deposit base.  The planned relocationof one office and the completion of the conversion of the information systems is expected to result in additional cost savings beginning in the third quarter. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our indirect auto loan portfolio declined $8.6 million during the quarter to $63.2 million, or 5% of total loans. Non-performing loans in this business segment decreased to $1.3 million in comparison to $1.7 million at March 31, 2009 and charge-offs during the quarter declined to $1.8 million compared to $2.2 million in the first quarter. Additionally,total delinquency of indirect auto loans declined to 6% at quarter end down from 7% from the first quarter and 9% at December 31, 2008. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

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| Indirect Loan Portfolio Statistics                      |   |
|---------------------------------------------------------|--------|
|                                                    |   | As of or For the Quarter Ended |   |
| (Dollars in thousands)                                  |   | Jun 2009 |   |   | Mar 2009 |   |   | Dec 2008 |   |   | Sept 2008 |   |   | June 2008 |   |
| 30-89 days delinquent                                   |   | $ | 2,820 |   |   | $ | 3,245 |   |   | $ | 5,542 |   |   | $ | 3,782 |   |   | $ | 2,193 |   |
| Non accrual                                             |   | $ | 1,275 |   |   | $ | 1,677 |   |   | $ | 1,878 |   |   | $ | 1,317 |   |   | $ | 1,220 |   |
| Total delinquencies                                     |   |   | 6.47 | % |   |   | 6.85 | % |   |   | 9.05 | % |   |   | 5.56 | % |   |   | 3.44 | % |
| Net charge offs for the quarter                         |   | $ | 1,842 |   |   | $ | 2,213 |   |   | $ | 2,300 |   |   | $ | 2,707 |   |   | $ | 3,951 |   |
| Net (gain)/loss on disposition of vehicles              |   | $ | (37 | ) |   | $ | (79 | ) |   | $ | 40 |   |   | $ | 149 |   |   | $ | (55 | ) |
| Number of vehicles sold during the quarter              |   |   | 233 |   |   |   | 267 |   |   |   | 638 |   |   |   | 314 |   |   |   | 271 |   |
| External collection costs recognized during the quarter |   | $ | 118 |   |   | $ | 104 |   |   | $ | 464 |   |   | $ | 331 |   |   | $ | 306 |   |

| (Dollars in thousands)                         |   | 2009   |   |   | 2008   |   |
|------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Service charges on deposit accounts            |   | $      | 1,202  |   |   | $      | 719 |   |
| Investment securities gains, net               |   |   | 95     |   |   |   | (1,912 | ) |
| Fees on mortgage loans sold                    |   |   | 318    |   |   |   | 213 |   |
| Investment advisory fees                       |   |   | 228    |   |   |   | 136 |   |
| Debit card income                              |   |   | 213    |   |   |   | 196 |   |
| Earnings on bank owned life insurance policies |   |   | 130    |   |   |   | 123 |   |
| Other                                          |   |   | 146    |   |   |   | 156 |   |
| Total non-interest income                      |   | $      | 2,332  |   |   | $      | (369 | ) |
|                                           |   |   |   |   |   |   |   |   |

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|                                           |   |   |   |   | 2009                |   |   |                |   |   | 2008   |   |
|------------------------------------------------|--------|--------|--------|--------|---------------------|--------|--------|---------------------|--------|--------|--------|--------|
| (Dollars in thousands)                         |   | Total  |   |   | RiversideOperations |   |   | Excluding Riverside |   |   |   |   |
| Salary and employee benefits                   |   | $      | 7,068  |   |                | $      | 631    |                |   | $      | 6,437  |   |   | $ | 6,358 |   |
| Net occupancy expense                          |   |   | 2,438  |   |                |   | 483    |                |   |   | 1,955  |   |   |   | 2,186 |   |
| Legal, and other professional                  |   |   | 860    |   |                |   | 258    |                |   |   | 602    |   |   |   | 431 |   |
| Computer services                              |   |   | 663    |   |                |   | 125    |                |   |   | 538    |   |   |   | 572 |   |
| Collection costs                               |   |   | 118    |   |                |   | -      |                |   |   | 118    |   |   |   | 306 |   |
| Postage, courier and armored car               |   |   | 280    |   |                |   | 69     |                |   |   | 211    |   |   |   | 222 |   |
| Marketing and community relations              |   |   | 241    |   |                |   | 14     |                |   |   | 227    |   |   |   | 238 |   |
| Operating supplies                             |   |   | 194    |   |                |   | 69     |                |   |   | 125    |   |   |   | 145 |   |
| Directors’ fees                          |   |   | 221    |   |                |   | -      |                |   |   | 221    |   |   |   | 210 |   |
| Travel expenses                                |   |   | 93     |   |                |   | 3      |                |   |   | 90     |   |   |   | 105 |   |
| FDIC and state assessments                     |   |   | 1,751  |   |                |   | 354    |                |   |   | 1,397  |   |   |   | 286 |   |
| Amortization of intangibles                    |   |   | 419    |   |                |   | 284    |                |   |   | 135    |   |   |   | 137 |   |
| Net gains on disposition of repossessed assets |   |   | (36    | )      |                |   | -      |                |   |   | (36    | )      |   |   | (50 | ) |
| OREO write downs and expenses                  |   |   | 1,086  |   |                |   | -      |                |   |   | 1,086  |   |   |   | 71 |   |
| Other operating expense                        |   |   | 762    |   |                |   | 46     |                |   |   | 716    |   |   |   | 647 |   |
| Total non-interest expense                     |   | $      | 16,158 |   |                | $      | 2,336  |                |   | $      | 13,822 |   |   | $ | 11,864 |   |
|                                           |   |   |   |   |                |   |   |                |   |   |   |   |   |   |   |   |

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|                                                                                                                                                                                                                                                                                                                                                                                                |   | 2009            |      |   | 2008           |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------|-----------|--------|----------------|--------|
|  (Dollars in thousands)                                                                                                                                                                                                                                                                                                                                                                        |   | AverageBalances |      |   | Income/Expense |   |   | Yields/Rates |   |   | AverageBalances |   |   | Income/Expense |   |   | Yields/Rates |   |
| Interest-earning assets:                                                                                                                                                                                                                                                                                                                                                                            |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans (1)(2)                                                                                                                                                                                                                                                                                                                                                                                        |   | $               | 1,227,339 |   |           | $      | 35,196 |   |   |   | 5.78 | % |   | $ | 1,152,901 |   |   | $ | 39,429 |   |   |   | 6.88 | % |
| Investment securities (2)                                                                                                                                                                                                                                                                                                                                                                           |   |            | 335,415   |   |           |   | 6,409 |   |   |   | 3.85 | % |   |   | 167,020 |   |   |   | 4,013 |   |   |   | 4.83 | % |
| Money Market Mutual Funds                                                                                                                                                                                                                                                                                                                                                                           |   |            | 60,569    |   |           |   | 130 |   |   |   | 0.43 | % |   |   | - |   |   |   | - |   |   |   | - |   |
| Interest-bearing deposits in other banks                                                                                                                                                                                                                                                                                                                                                            |   |            | 35,519    |   |           |   | 40 |   |   |   | 0.23 | % |   |   | 3,149 |   |   |   | 44 |   |   |   | 2.81 | % |
| Federal Home Loan Bank stock                                                                                                                                                                                                                                                                                                                                                                        |   |            | 11,389    |   |           |   | (19 | ) |   |   | -0.34 | % |   |   | 8,615 |   |   |   | 252 |   |   |   | 5.88 | % |
| Federal funds sold and securities sold under agreements to resell                                                                                                                                                                                                                                                                                                                                   |   |            | 4,985     |   |           |   | 5 |   |   |   | 0.20 | % |   |   | 76,931 |   |   |   | 1,056 |   |   |   | 2.76 | % |
| Total interest-earning assets                                                                                                                                                                                                                                                                                                                                                                       |   |            | 1,675,216 |   |           |   | 41,761 |   |   |   | 5.03 | % |   |   | 1,408,616 |   |   |   | 44,794 |   |   |   | 6.39 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-earning assets:                                                                                                                                                                                                                                                                                                                                                                        |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and due from banks                                                                                                                                                                                                                                                                                                                                                                             |   |            | 33,049    |   |           |   |   |   |   |   |   |   |   |   | 19,623 |   |   |   |   |   |   |   |   |   |
| Premises and equipment, net                                                                                                                                                                                                                                                                                                                                                                         |   |            | 38,210    |   |           |   |   |   |   |   |   |   |   |   | 37,941 |   |   |   |   |   |   |   |   |   |
| Allowance for loan losses                                                                                                                                                                                                                                                                                                                                                                           |   |            | (23,908   | )      |           |   |   |   |   |   |   |   |   |   | (15,177 | ) |   |   |   |   |   |   |   |   |
| Other assets                                                                                                                                                                                                                                                                                                                                                                                        |   |            | 73,056    |   |           |   |   |   |   |   |   |   |   |   | 53,134 |   |   |   |   |   |   |   |   |   |
| Total non-interest-earning assets                                                                                                                                                                                                                                                                                                                                                                   |   |            | 120,407   |   |           |   |   |   |   |   |   |   |   |   | 95,521 |   |   |   |   |   |   |   |   |   |
| Total assets                                                                                                                                                                                                                                                                                                                                                                                        |   | $               | 1,795,623 |   |           |   |   |   |   |   |   |   |   | $ | 1,504,137 |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                                                                                                                                                                                                                                                                                                                                                       |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing deposits:                                                                                                                                                                                                                                                                                                                                                                          |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOW accounts                                                                                                                                                                                                                                                                                                                                                                                        |   | $               | 179,061   |   |           | $      | 642 |   |   |   | 0.72 | % |   | $ | 186,601 |   |   | $ | 1,889 |   |   |   | 2.04 | % |
| Money market                                                                                                                                                                                                                                                                                                                                                                                        |   |            | 184,316   |   |           |   | 1,499 |   |   |   | 1.64 | % |   |   | 174,912 |   |   |   | 2,375 |   |   |   | 2.73 | % |
| Savings deposits                                                                                                                                                                                                                                                                                                                                                                                    |   |            | 106,930   |   |           |   | 959 |   |   |   | 1.81 | % |   |   | 50,930 |   |   |   | 312 |   |   |   | 1.23 | % |
| Time deposits                                                                                                                                                                                                                                                                                                                                                                                       |   |            | 728,735   |   |           |   | 11,950 |   |   |   | 3.31 | % |   |   | 538,023 |   |   |   | 12,432 |   |   |   | 4.65 | % |
| Total interest-bearing deposits                                                                                                                                                                                                                                                                                                                                                                     |   |            | 1,199,042 |   |           |   | 15,050 |   |   |   | 2.53 | % |   |   | 950,466 |   |   |   | 17,008 |   |   |   | 3.60 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other interest-bearing liabilities:                                                                                                                                                                                                                                                                                                                                                                 |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Short-term borrowings and FHLB advances                                                                                                                                                                                                                                                                                                                                                             |   |            | 224,045   |   |           |   | 2,735 |   |   |   | 2.46 | % |   |   | 213,984 |   |   |   | 3,702 |   |   |   | 3.48 | % |
| Long-term borrowings                                                                                                                                                                                                                                                                                                                                                                                |   |            | 63,000    |   |           |   | 1,444 |   |   |   | 4.62 | % |   |   | 63,000 |   |   |   | 1,724 |   |   |   | 5.50 | % |
| Total interest-bearing liabilities                                                                                                                                                                                                                                                                                                                                                                  |   |            | 1,486,087 |   |           |   | 19,229 |   |   |   | 2.61 | % |   |   | 1,227,450 |   |   |   | 22,434 |   |   |   | 3.68 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-bearing liabilities and shareholders’ equity:                                                                                                                                                                                                                                                                                                                                    |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand deposits                                                                                                                                                                                                                                                                                                                                                                                     |   |            | 169,824   |   |           |   |   |   |   |   |   |   |   |   | 155,978 |   |   |   |   |   |   |   |   |   |
| Other liabilities                                                                                                                                                                                                                                                                                                                                                                                   |   |            | 18,026    |   |           |   |   |   |   |   |   |   |   |   | 19,480 |   |   |   |   |   |   |   |   |   |
| Shareholders’ equity                                                                                                                                                                                                                                                                                                                                                                          |   |            | 121,686   |   |           |   |   |   |   |   |   |   |   |   | 101,229 |   |   |   |   |   |   |   |   |   |
| Total non-interest-bearing liabilities and shareholders’ equity                                                                                                                                                                                                                                                                                                                               |   |            | 309,536   |   |           |   |   |   |   |   |   |   |   |   | 276,687 |   |   |   |   |   |   |   |   |   |
| Total liabilities and shareholders’ equity                                                                                                                                                                                                                                                                                                                                                    |   | $               | 1,795,623 |   |           |   |   |   |   |   |   |   |   | $ | 1,504,137 |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate spread  (tax equivalent basis)                                                                                                                                                                                                                                                                                                                                              |   |            |      |   |           |   |   |   |   |   | 2.42 | % |   |   |   |   |   |   |   |   |   |   | 2.71 | % |
| Net interest income  (tax equivalent basis)                                                                                                                                                                                                                                                                                                                                               |   |            |      |   |           | $      | 22,532 |   |   |   |   |   |   |   |   |   |   | $ | 22,360 |   |   |   |   |   |
| Net interest margin (3) (tax equivalent basis)                                                                                                                                                                                                                                                                                                                                                      |   |            |      |   |           |   |   |   |   |   | 2.71 | % |   |   |   |   |   |   |   |   |   |   | 3.19 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| _______(1) Average loans include non-performing loans.(2) Interest income and rates include the effects of a tax equivalent adjustment using applicable statutory tax rates in adjusting tax exempt interest on tax exempt investment securities and loans to a fully taxable basis.(3) Net interest margin is net interest income divided by average total interest-earning assets. |   |

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|                                                                                                                                                                                                                  |   | 2009 Compared to 2008 (1)Due to Changes in |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|--------|
| (Dollars in thousands)                                                                                                                                                                                                |   | AverageVolume                              |   |   | AverageRate |   |   | Net Increase(Decrease) |   |
| Interest income                                                                                                                                                                                                       |   |                                       |   |   |   |   |   |   |   |
| Loans (2)                                                                                                                                                                                                             |   | $                                          | 2,428  |   |   | $ | (6,661 | ) |   | $ | (4,233 | ) |
| Investment securities (2)                                                                                                                                                                                             |   |                                       | 3,357  |   |   |   | (961 | ) |   |   | 2,396 |   |
| Money Market Mutual Funds                                                                                                                                                                                             |   |                                       | 130    |   |   |   | - |   |   |   | 130 |   |
| Interest-bearing deposits in other banks                                                                                                                                                                              |   |                                       | 71     |   |   |   | (75 | ) |   |   | (4 | ) |
| Federal Home Loan Bank stock                                                                                                                                                                                          |   |                                       | 61     |   |   |   | (332 | ) |   |   | (271 | ) |
| Federal funds sold and securities purchased under agreements to resell                                                                                                                                                |   |                                       | (528   | ) |   |   | (523 | ) |   |   | (1,051 | ) |
| Total interest income                                                                                                                                                                                                 |   |                                       | 5,519  |   |   |   | (8,552 | ) |   |   | (3,033 | ) |
|                                                                                                                                                                                                                  |   |                                       |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                                                                                                                                                                                      |   |                                       |   |   |   |   |   |   |   |   |   |   |
| NOW accounts                                                                                                                                                                                                          |   |                                       | (73    | ) |   |   | (1,174 | ) |   |   | (1,247 | ) |
| Money market                                                                                                                                                                                                          |   |                                       | 122    |   |   |   | (998 | ) |   |   | (876 | ) |
| Savings deposits                                                                                                                                                                                                      |   |                                       | 455    |   |   |   | 192 |   |   |   | 647 |   |
| Time deposits                                                                                                                                                                                                         |   |                                       | 3,703  |   |   |   | (4,185 | ) |   |   | (482 | ) |
| Short-term borrowings and FHLB advances                                                                                                                                                                               |   |                                       | 167    |   |   |   | (1,134 | ) |   |   | (967 | ) |
| Long-term borrowings                                                                                                                                                                                                  |   |                                       | -      |   |   |   | (280 | ) |   |   | (280 | ) |
| Total interest expense                                                                                                                                                                                                |   |                                       | 4,374  |   |   |   | (7,579 | ) |   |   | (3,205 | ) |
|                                                                                                                                                                                                                  |   |                                       |   |   |   |   |   |   |   |   |   |   |
| Change in net interest income                                                                                                                                                                                         |   | $                                          | 1,145  |   |   | $ | (973 | ) |   | $ | 172 |   |
|                                                                                                                                                                                                                  |   |                                       |   |   |   |   |   |   |   |   |   |   |
| ________(1) The change in interest due to both rate and volume has been allocated to the volume and rate components in proportion to the relationship of the dollar amounts of the absolute change in each.           |   |
| (2) Interest income includes the effects of a tax equivalent adjustment using applicable statutory tax rates in adjusting tax exempt interest on tax exempt investment securities and loans to a fully taxable basis. |   |

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| (Dollars in thousands)                         |   | 2009   |   |   | 2008   |   |
|------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Service charges on deposit accounts            |   | $      | 2,168  |   |   | $      | 1,441 |   |
| Investment securities gains, net               |   |   | 691    |   |   |   | (1,002 | ) |
| Fees on mortgage loans sold                    |   |   | 433    |   |   |   | 445 |   |
| Investment advisory fees and trust fees        |   |   | 421    |   |   |   | 261 |   |
| Debit card income                              |   |   | 398    |   |   |   | 382 |   |
| Earnings on bank owned life insurance policies |   |   | 261    |   |   |   | 248 |   |
| Other                                          |   |   | 339    |   |   |   | 317 |   |
| Total non-interest income                      |   | $      | 4,711  |   |   | $      | 2,092 |   |
|                                           |   |   |   |   |   |   |   |   |

|                                                 |   |   |   |   | 2009                |   |   |                |   |   | 2008   |   |
|------------------------------------------------------|--------|--------|--------|--------|---------------------|--------|--------|---------------------|--------|--------|--------|--------|
|  (Dollars in thousands)                         |   | Total  |   |   | RiversideOperations |   |   | Excluding Riverside |   |   |   |   |
| Salary and employee benefits                         |   | $      | 14,448 |   |                | $      | 946    |                |   | $      | 13,502 |   |   | $ | 12,411 |   |
| Net occupancy expense                                |   |   | 4,590  |   |                |   | 696    |                |   |   | 3,894  |   |   |   | 4,200 |   |
| Legal, and other professional                        |   |   | 1,308  |   |                |   | 264    |                |   |   | 1,044  |   |   |   | 985 |   |
| Computer services                                    |   |   | 1,288  |   |                |   | 213    |                |   |   | 1,075  |   |   |   | 1,162 |   |
| Collection costs                                     |   |   | 222    |   |                |   | -      |                |   |   | 222    |   |   |   | 546 |   |
| Postage, courier and armored car                     |   |   | 531    |   |                |   | 103    |                |   |   | 428    |   |   |   | 451 |   |
| Marketing and community relations                    |   |   | 519    |   |                |   | 52     |                |   |   | 467    |   |   |   | 600 |   |
| Operating supplies                                   |   |   | 336    |   |                |   | 92     |                |   |   | 244    |   |   |   | 283 |   |
| Directors’ fees                                |   |   | 453    |   |                |   | -      |                |   |   | 453    |   |   |   | 406 |   |
| Travel expenses                                      |   |   | 176    |   |                |   | 5      |                |   |   | 171    |   |   |   | 166 |   |
| FDIC and state assessments                           |   |   | 2,322  |   |                |   | 410    |                |   |   | 1,912  |   |   |   | 575 |   |
| Amortization of intangibles                          |   |   | 652    |   |                |   | 382    |                |   |   | 270    |   |   |   | 342 |   |
| Net (gain) loss on disposition of repossessed assets |   |   | (105   | )      |                |   | -      |                |   |   | (105   | )      |   |   | 1,170 |   |
| OREO write downs and expenses                        |   |   | 1,406  |   |                |   | -      |                |   |   | 1,406  |   |   |   | 384 |   |
| Other operating expense                              |   |   | 1,379  |   |                |   | 76     |                |   |   | 1,303  |   |   |   | 1,209 |   |
| Total non-interest expense                           |   | $      | 29,525 |   |                | $      | 3,239  |                |   | $      | 26,286 |   |   | $ | 24,890 |   |
|                                                 |   |   |   |   |                |   |   |                |   |   |   |   |   |   |   |   |

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|                             |   | June 30, 2009          |    |   | December 31, 2008      |   |
|----------------------------------|--------|------------------------|---------|--------|------------------------|--------|
| (Dollars in thousands)           |   | Commercial Real Estate |    |   | Percentage Composition |   |   | Commercial Real Estate |   |   | Percentage Composition |   |
| Mixed Use Commercial/Residential |   | $                      | 128,335 |   |                   |   | 19 | % |   | $ | 108,165 |   |   |   | 16 | % |
| Office Buildings                 |   |                   | 106,462 |   |                   |   | 16 | % |   |   | 105,159 |   |   |   | 16 | % |
| Hotels/Motels                    |   |                   | 98,905  |   |                   |   | 14 | % |   |   | 90,091 |   |   |   | 14 | % |
| 1-4 Family and Multi Family      |   |                   | 76,557  |   |                   |   | 11 | % |   |   | 88,512 |   |   |   | 14 | % |
| Guesthouses                      |   |                   | 84,597  |   |                   |   | 12 | % |   |   | 84,993 |   |   |   | 13 | % |
| Retail Buildings                 |   |                   | 79,039  |   |                   |   | 12 | % |   |   | 71,184 |   |   |   | 11 | % |
| Restaurants                      |   |                   | 49,438  |   |                   |   | 7 | % |   |   | 47,680 |   |   |   | 7 | % |
| Marinas/Docks                    |   |                   | 19,980  |   |                   |   | 3 | % |   |   | 20,130 |   |   |   | 3 | % |
| Warehouse and Industrial         |   |                   | 26,911  |   |                   |   | 4 | % |   |   | 29,031 |   |   |   | 4 | % |
| Other                            |   |                   | 13,539  |   |                   |   | 2 | % |   |   | 13,571 |   |   |   | 2 | % |
| Total                            |   | $                      | 683,763 |   |                   |   | 100 | % |   | $ | 658,516 |   |   |   | 100 | % |
|                             |   |                   |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |

|                                     |   | June 30, 2009                |    |   | December 31, 2008      |   |
|------------------------------------------|--------|------------------------------|---------|--------|------------------------|--------|
|                                     |   | Construction and Vacant Land |    |   | Percentage Composition |   |   | Construction and Vacant Land |   |   | Percentage Composition |   |
| Construction:                            |   |                         |    |   |                   |   |   |   |   |   |   |   |
| Residential – owner occupied       |   | $                            | 9,844   |   |                   |   | 7 | % |   | $ | 11,866 |   |   |   | 8 | % |
| Residential – commercial developer |   |                         | 22,983  |   |                   |   | 16 | % |   |   | 21,052 |   |   |   | 14 | % |
| Commercial structure                     |   |                         | 11,935  |   |                   |   | 9 | % |   |   | 18,629 |   |   |   | 13 | % |
|                                     |   |                         | 44,762  |   |                   |   | 32 | % |   |   | 51,547 |   |   |   | 35 | % |
| Land:                                    |   |                         |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Raw land                                 |   |                         | 25,847  |   |                   |   | 18 | % |   |   | 25,890 |   |   |   | 18 | % |
| Residential lots                         |   |                         | 13,999  |   |                   |   | 10 | % |   |   | 13,041 |   |   |   | 9 | % |
| Land development                         |   |                         | 19,150  |   |                   |   | 14 | % |   |   | 19,975 |   |   |   | 13 | % |
| Commercial lots                          |   |                         | 35,667  |   |                   |   | 26 | % |   |   | 36,856 |   |   |   | 25 | % |
| Total land                               |   |                         | 94,663  |   |                   |   | 68 | % |   |   | 95,762 |   |   |   | 65 | % |
|                                     |   |                         |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                    |   | $                            | 139,425 |   |                   |   | 100 | % |   | $ | 147,309 |   |   |   | 100 | % |
|                                     |   |                         |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |

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| (Dollars in thousands)                                                   |   | June 30, 2009 |   |   | December 31, 2008 |   |
|--------------------------------------------------------------------------|--------|---------------|--------|--------|-------------------|--------|
| Total non-accrual loans (a)                                              |   | $             | 61,809 |   |              | $      | 39,776 |   |
| Accruing loans delinquent 90 days or more                                |   |          | -      |   |              |   | - |   |
| Total non-performing loans                                               |   |          | 61,809 |   |              |   | 39,776 |   |
|                                                                     |   |          |   |   |              |   |   |   |
| Non-accrual investment securities                                        |   |          | 2,104  |   |              |   | 763 |   |
| Repossessed personal property (primarily indirect auto loans)            |   |          | 431    |   |              |   | 601 |   |
| Other real estate owned                                                  |   |          | 7,142  |   |              |   | 4,323 |   |
| Other assets (b)                                                         |   |          | 2,083  |   |              |   | 2,076 |   |
| Total  non-performing assets                                   |   | $             | 73,569 |   |              | $      | 47,539 |   |
|                                                                     |   |          |   |   |              |   |   |   |
| Allowance for loan losses                                                |   | $             | 25,446 |   |              | $      | 23,783 |   |
|                                                                     |   |          |   |   |              |   |   |   |
| Non-performing assets as a percent of total assets                       |   |          | 4.09   | %      |              |   | 2.95 | % |
| Non-performing loans as a percent of total loans                         |   |          | 4.99   | %      |              |   | 3.25 | % |
| Allowance for loan losses as a percent of non-performing loans           |   |          | 41.17  | %      |              |   | 59.79 | % |
| Annualized net charge-offs for the quarter as a percent of average loans |   |          | 1.89   | %      |              |   | 3.02 | % |
|                                                                     |   |          |   |   |              |   |   |   |

| (a)   | Non-accrual loans as of June 30, 2009 and December 31, 2008 and are as follows: |
|-----------------|---------------------------------------------------------------------------------|

| (Dollars in thousands)           |   |    June 30, 2009 |   |   | December 31, 2008   |   |
|----------------------------------|--------|----------------------------|--------|--------|---------------------|--------|
| Collateral Description           |   | Number of Loans            |   |   | Outstanding Balance |   |   | Number of Loans |   |   | Outstanding Balance |   |
| Residential                      |   |                       | 24     |   |                | $      | 5,138 |   |   |   | 18 |   |   | $ | 4,014 |   |
| Commercial 1-4 family investment |   |                       | 9      |   |                |   | 8,705 |   |   |   | 9 |   |   |   | 7,943 |   |
| Commercial and agricultural      |   |                       | 6      |   |                |   | 596 |   |   |   | 2 |   |   |   | 64 |   |
| Commercial real estate           |   |                       | 25     |   |                |   | 11,322 |   |   |   | 18 |   |   |   | 13,133 |   |
| Land development                 |   |                       | 11     |   |                |   | 34,583 |   |   |   | 4 |   |   |   | 12,584 |   |
| Government guaranteed loans      |   |                       | 3      |   |                |   | 145 |   |   |   | 3 |   |   |   | 143 |   |
| Indirect auto and consumer loans |   |                       | 121    |   |                |   | 1,320 |   |   |   | 155 |   |   |   | 1,895 |   |
|                             |   |                       |   |   |                | $      | 61,809 |   |   |   |   |   |   | $ | 39,776 |   |
|                             |   |                       |   |   |                |   |   |   |   |   |   |   |   |   |   |   |

| (b)   | 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 thebusiness owner’s interest in a trust. Under provisions of the trust agreement, beneficiaries cannot receive trust assets until November 2010. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Nonaccrual Loan Activity (Other Than Indirect Auto and Consumer)(Dollars in thousands) |   |
|----------------------------------------------------------------------------------------|--------|
|                                                                                   |   |   |   |
| Nonaccrual loans at March 31, 2009                                                     |   | $ | 43,935 |   |
| Returned to accrual                                                                    |   |   | (218 | ) |
| Net principal paid down on nonaccrual loans                                            |   |   | (490 | ) |
| Charge-offs                                                                            |   |   | (3,964 | ) |
| Loans  foreclosed                                                            |   |   | (7,852 | ) |
| Loans placed on nonaccrual                                                             |   |   | 29,078 |   |
| Nonaccrual loans at June 30, 2009                                                      |   | $ | 60,489 |   |
|                                                                                   |   |   |   |   |

| OREO Activity(Dollars in thousands)      |   |
|------------------------------------------|--------|
|                                     |   |   |   |
| OREO as of March 31, 2009                |   | $ | 5,032 |   |
| Real estate acquired                     |   |   | 7,852 |   |
| Write-down of value                      |   |   | (871 | ) |
| Transfer to facilities used in operation |   |   | (2,941 | ) |
| Property sold                            |   |   | (1,930 | ) |
| OREO as of June 30, 2009                 |   | $ | 7,142 |   |
|                                     |   |   |   |   |

| (Dollars in thousands)                            |   | June 30, 2009 |    |   | December 31, 2008 |   |
|---------------------------------------------------|--------|---------------|---------|--------|-------------------|--------|
| Loans with no allocated allowance for loan losses |   | $             | 37,112  |   |              | $      | 8,344 |   |
| Loans with allocated allowance for loan losses    |   |          | 66,493  |   |              |   | 53,765 |   |
| Total                                             |   | $             | 103,605 |   |              | $      | 62,109 |   |
|                                              |   |          |    |   |              |   |   |   |
| Amount of the allowance for loan losses allocated |   | $             | 8,484   |   |              | $      | 6,116 |   |
|                                              |   |          |    |   |              |   |   |   |

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| (Dollars in thousands)                                                 |   | 3 Monthsor Less |     |   | 4 to 6Months |   |     | 7 to 12Months |   |   | 1 to 5Years |   |   | Over 5Years |     |   | Total  |   |
|------------------------------------------------------------------------|--------|-----------------|----------|--------|--------------|--------|----------|---------------|--------|--------|-------------|--------|--------|-------------|----------|--------|--------|--------|
| Interest-earning assets:                                               |   |            |     |   |         |   |     |          |   |   |        |   |   |        |     |   |   |   |
| Loans                                                                  |   | $               | 375,185  |   |         | $      | 39,309   |          |   | $      | 117,185     |   |   | $           | 550,940  |   |   | $      | 155,737 |   |   | $ | 1,238,356 |   |
| Investment securities-taxable                                          |   |            | 25,050   |   |         |   | 23,640   |          |   |   | 11,145      |   |   |        | 44,512   |   |   |   | 240,585 |   |   |   | 344,932 |   |
| Investment securities-tax exempt                                       |   |            | -        |   |         |   | -        |          |   |   | -           |   |   |        | 4,139    |   |   |   | 3,781 |   |   |   | 7,920 |   |
| Marketable equity securities                                           |   |            | 18       |   |         |   | -        |          |   |   | -           |   |   |        | -        |   |   |   | - |   |   |   | 18 |   |
| Money Market Mutual Funds                                              |   |            | 5,582    |   |         |   | -        |          |   |   | -           |   |   |        | -        |   |   |   | - |   |   |   | 5,582 |   |
| FHLB stock                                                             |   |            | 10,447   |   |         |   | -        |          |   |   | -           |   |   |        | -        |   |   |   | - |   |   |   | 10,447 |   |
| Federal funds sold and securities purchased under agreements to resell |   |            | 14,684   |   |         |   | -        |          |   |   | -           |   |   |        | -        |   |   |   | - |   |   |   | 14,684 |   |
| Interest-bearing deposits in other banks                               |   |            | 59,125   |   |         |   | -        |          |   |   | -           |   |   |        | -        |   |   |   | - |   |   |   | 59,125 |   |
| Total interest-earning assets                                          |   |            | 490,091  |   |         |   | 62,949   |          |   |   | 128,330     |   |   |        | 599,591  |   |   |   | 400,103 |   |   |   | 1,681,064 |   |
|                                                                   |   |            |     |   |         |   |     |          |   |   |        |   |   |        |     |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                          |   |            |     |   |         |   |     |          |   |   |        |   |   |        |     |   |   |   |   |   |   |   |   |   |
| NOW accounts                                                           |   |            | 180,952  |   |         |   | -        |          |   |   | -           |   |   |        | -        |   |   |   | - |   |   |   | 180,952 |   |
| Money market                                                           |   |            | 217,534  |   |         |   | -        |          |   |   | -           |   |   |        | -        |   |   |   | - |   |   |   | 217,534 |   |
| Savings deposits                                                       |   |            | 127,502  |   |         |   | -        |          |   |   | -           |   |   |        | -        |   |   |   | - |   |   |   | 127,502 |   |
| Time deposits                                                          |   |            | 202,483  |   |         |   | 191,836  |          |   |   | 183,451     |   |   |        | 108,824  |   |   |   | - |   |   |   | 686,594 |   |
| Subordinated debentures                                                |   |            | 25,000   |   |         |   | -        |          |   |   | -           |   |   |        | -        |   |   |   | 8,000 |   |   |   | 33,000 |   |
| Other borrowings                                                       |   |            | 114,114  |   |         |   | -        |          |   |   | 10,000      |   |   |        | 115,000  |   |   |   | - |   |   |   | 239,114 |   |
| Total interest-bearing liabilities                                     |   |            | 867,585  |   |         |   | 191,836  |          |   |   | 193,451     |   |   |        | 223,824  |   |   |   | 8,000 |   |   |   | 1,484,696 |   |
|                                                                   |   |            |     |   |         |   |     |          |   |   |        |   |   |        |     |   |   |   |   |   |   |   |   |   |
| Interest sensitivity gap                                               |   | $               | (377,494 | )      |         | $      | (128,887 | )             |   | $      | (65,121     | )      |   | $           | 375,767  |   |   | $      | 392,103 |   |   | $ | 196,368 |   |
|                                                                   |   |            |     |   |         |   |     |          |   |   |        |   |   |        |     |   |   |   |   |   |   |   |   |   |
| Cumulative interest sensitivity gap                                    |   | $               | (377,494 | )      |         | $      | (506,381 | )             |   | $      | (571,502    | )      |   | $           | (195,735 | )      |   | $      | 196,368 |   |   | $ | 196,368 |   |
|                                                                   |   |            |     |   |         |   |     |          |   |   |        |   |   |        |     |   |   |   |   |   |   |   |   |   |
| Cumulative sensitivity ratio                                           |   |            | (22.5    | %)     |         |   | (30.1    | %)            |   |   | (34.0       | %)     |   |        | (11.6    | %)     |   |   | 11.7 | % |   |   | 11.7 | % |
|                                                                   |   |            |     |   |         |   |     |          |   |   |        |   |   |        |     |   |   |   |   |   |   |   |   |   |

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Item 3.  Quantitative and Qualitative Disclosures About Market Risk

|                                     | June 30, 2009  |   | March 31, 2009 |
|------------------------------------------|----------------|--------|----------------|
|                                     | Parallel Shift |   | Twist          |   | Parallel Shift |   | Twist |
| Twelve Month Period                      | - 2%           | +2%    |           | +0.5% |   | -2% | +2% |   | +0.5% |
|                                     |           |   |           |   |   |   |   |   |   |
| Percentage change in net interest income | +2%            | -7%    |           | <+1% |   | +5% | -3% |   | +1% |

Item 4.  Controls and Procedures

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Item 1a. Risk Factors

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| • | total reported loans for construction, land development, and other land of 100% or more of a bank’s total capital; or |
|---------|-----------------------------------------------------------------------------------------------------------------------------|

| • | total reported loans secured by multifamily and nonfarm nonresidential properties and loans for construction, land development, and other land of 300% or more of a bank’s total capital. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| • | ensuring that incentive compensation for senior executives does not encourage unnecessary and excessive risks that threaten the value of the financial institution; |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | required clawbacks of any bonus or incentive compensation paid to a senior executive based on statements of earnings, gains or other criteria that are later proven to be materially inaccurate; |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | prohibitions on making golden parachute payments to senior executives; and |
|---------|----------------------------------------------------------------------------|

| • | an agreement not to deduct for tax purposes executive compensation in excess of $500,000 for each senior executive. |
|---------|---------------------------------------------------------------------------------------------------------------------|

| • | a prohibition on making any golden parachute payment to a senior executive officer or any of our next five most highly compensated employees; |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| • | a prohibition on any compensation plan that would encourage manipulation of our reported earnings to enhance the compensation of any of our employees; and |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | a prohibition on the payment or accrual of any bonus, retention award, or incentive compensation to our five highest paid executives except for long-term restricted stock with a value not greater than one-third of the total amount of annual compensation of the employee receiving the stock. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | • | conditions in the regional and national credit, mortgage and housing markets, the markets for securities relating to mortgages or housing, and developments with respect to financial institutions generally; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | changes in global financial markets and global economies and general market conditions, such as interest or foreign exchange rates, stock, commodity or real estate valuations or volatility; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   |   | • | any authorization or issuance of shares ranking senior to the Series A Preferred Stock; |
|--------|--------|---------|-----------------------------------------------------------------------------------------|

|   |   | • | any amendment to the rights of the Series A Preferred Stock so as to adversely affect the rights, preferences, privileges or voting power of the Series A Preferred Stock; or |
|--------|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | • | consummation of any merger, share exchange or similar transaction unless the shares of Series A Preferred Stock remain outstanding, or if we are not the surviving entity in such transaction, are converted into or exchanged for preference securities of the surviving entity and the shares of Series A Preferred Stock remaining outstanding or such preference securities have such rights, preferences, privileges and votingpower as are not materially less favorable to the holders than the rights, preferences, privileges and voting power of the shares of Series A Preferred Stock. Holders of Series A Preferred Stock could block the foregoing transaction, even where considered desirable by, or in the best interests of, holders of our common stock. |
|--------|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Item 4. Submission of Matters to a Vote of Security Holders

| Directors               |   | For    |       |   | Against |   |      | Abstain |   |
|-------------------------|--------|--------|------------|--------|---------|--------|-----------|---------|--------|
| Bradley A. Boaz         |   |   | 10,745,005 |   |    |   | 762,974   |    |   |   | - |   |
| Richard C. Bricker, Jr. |   |   | 10,696,937 |   |    |   | 811,043   |    |   |   | - |   |
| Howard B. Gutman        |   |   | 10,745,025 |   |    |   | 762,954   |    |   |   | - |   |
| Paul O. Jones, Jr.      |   |   | 10,755,413 |   |    |   | 752,567   |    |   |   | - |   |
| Thomas J. Longe         |   |   | 10,238,884 |   |    |   | 1,269,096 |    |   |   |   |   |

| Approve (Non-Binding Proposal)              |   | For    |       |   | Against |   |    | Abstain |   |
|---------------------------------------------|--------|--------|------------|--------|---------|--------|---------|---------|--------|
| Total shares voted for non-binding proposal |   |   | 10,357,830 |   |    |   | 953,252 |    |   |   | 228,187 |   |

Item 5.  Other Information

Item 6.  Exhibits

|   | Exhibit 31.1 | -      | Chief Executive Officer’s certification required under Section 302 of Sarbanes-Oxley Act of 2002 |
|--------|--------------|--------|--------------------------------------------------------------------------------------------------------|
|   | Exhibit 31.2 | -      | Chief Financial Officer’s certification required under Section 302 of Sarbanes-Oxley Act of 2002 |
|   | Exhibit 32.1 | -      | Chief Executive Officer’s certification required under Section 906 of Sarbanes-Oxley Act of 2002 |
|   | Exhibit 32.2 | -      | Chief Financial Officer’s certification required under Section 906 of Sarbanes-Oxley Act of 2002 |
|   |         |   |                                                                                                   |

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|                                        |   | TIB FINANCIAL CORP.                                                                |
|---------------------------------------------|--------|------------------------------------------------------------------------------------|
|   Date:  August 7, 2009 |   |     /s/ Thomas J. Longe                                        |
|                                        |   | Thomas J. LongeChief Executive Officer and President                               |
|                                        |   |                                                                               |
|   Date:  August 7, 2009 |   |     /s/ Stephen J. Gilhooly                                    |
|                                        |   | Stephen J. GilhoolyExecutive Vice President, Chief Financial Officer and Treasurer |