SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

|                                                      |  |                               
|----------------------------------------------------- |  | ------------------------------
|For the Quarterly Period Ended
         JUNE 30, 2001 |  | Commission File Number
0-29132

TIB FINANCIAL CORP.

---

(Exact name of registrant as specified in its charter)


|                                |  |                    
|------------------------------- |  | -------------------
|FLORIDA                         |  | 65-0655973         
|                               
|(State or other jurisdiction of |  | (I.R.S. Employer   
|incorporation or organization)  |  | Identification No.)

99451 OVERSEAS HIGHWAY, KEY LARGO, FLORIDA 33037-7808
(Address of principal executive offices) (Zip Code)

Registrants telephone number, including area code:          305-451-4660

Not Applicable
(Former name, former address and former fiscal year,
if changed since last report)

Indicate by 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 90 days.

|          |  |          
|--------- |  | ---------
|YES   [X] |  | NO   [  ]

Indicate the number of shares outstanding of each of the issuers classes of common equity, as of the latest practicable date:

|                              |  |  |                                  |  | 
|----------------------------- |  |  | -------------------------------- |  | 
|Common Stock, $0.10 Par Value |  |  | 3,928,160                        | 
|                              |  |  |                                  | 
|Class                         |  |  | Outstanding as of August 1, 2001 | 





---



Part I.    FINANCIAL INFORMATION

Item 1. Financial Statements

TIB FINANCIAL CORP.

CONSOLIDATED BALANCE SHEETS


|                                                                                                          |                                            |                            |             |               |             |                   |             |             |             | 
|--------------------------------------------------------------------------------------------------------- | ------------------------------------------ | -------------------------- | ----------- | ------------- | ----------- | ----------------- | ----------- | ----------- | ----------- | 
|                                                                                                          |                                            |                            |             | June 30, 2001 |             | December 31, 2000
|                                                                                                          |                                            |                            |             |               |             |                  
|                                                                                                          |                                            |                            |             | (Unaudited)   |             |                   |             |            
|ASSETS                                                                                                    |                                            |                            |             |               |             |                   |             |            
|                                                                                                         
|                                                                                                         
|                                                                                                         
|                                                                                                         
|Cash and due from banks                                                                                   |                                            | $                          | 13,256,787  |               |             | $                 | 13,789,577  |            
|                                                                                                         
|                                                                                                         
|                                                                                                         
|                                                                                                         
|Interest bearing deposits in other bank                                                                   |                                            |                            | 25,925      |               |             |                   | 66,917      |            
|                                                                                                         
|                                                                                                         
|                                                                                                         
|                                                                                                         
|Federal funds sold                                                                                        |                                            |                            | 29,270,000  |               |             |                   | 9,709,000   |            
|                                                                                                         
|                                                                                                         
|                                                                                                         
|                                                                                                         
|Investment securities held to maturity                                                                    |                                            |                            | 24,573,177  |               |             |                   | 34,454,133  |            
|                                                                                                         
|                                                                                                         
|                                                                                                         
|                                                                                                         
|Investment securities available for sale                                                                  |                                            |                            | 39,381,697  |               |             |                   | 34,753,767  |            
|                                                                                                         
|                                                                                                         
|                                                                                                         
|                                                                                                         
|Investment in ERAS Joint Venture                                                                          |                                            |                            | 904,295     |               |             |                   | 1,001,060   |            
|                                                                                                         
|                                                                                                         
|                                                                                                         
|                                                                                                         
|                                                                                                         
|Loans, net of deferred loan fees                                                                          |                                            |                            | 344,061,852 |               |             |                   | 315,085,375 |            
|                                                                                                         
|                                                                                                         
|                                                                                                         
|                                                                                                         
|Less: allowance for loan losses                                                                           |                                            |                            | 3,169,474   |               |             |                   | 3,267,873   |            
|                                                                                                          |                                            |                            |             |               |             |                   |             |            
|                                                                                                          | Loans, net                                 |                            |             | 340,892,378   |             |                   |             | 311,817,502 |            
|                                                                                                         
|                                                                                                         
|                                                                                                         
|                                                                                                         
|                                                                                                         
|Premises and equipment, net                                                                               |                                            |                            | 17,509,985  |               |             |                   | 14,884,968  |            
|                                                                                                         
|                                                                                                         
|                                                                                                         
|                                                                                                         
|Intangible assets, net                                                                                    |                                            |                            | 4,804,956   |               |             |                   | 5,043,031   |            
|                                                                                                         
|                                                                                                         
|                                                                                                         
|                                                                                                         
|Other assets                                                                                              |                                            |                            | 13,496,965  |               |             |                   | 13,800,190  |            
|                                                                                                          |                                            |                            |             |               |             |                   |             |            
|                                                                                                          | TOTAL ASSETS                               |                            | $           | 484,116,165   |             |                   | $           | 439,320,145 |            
|                                                                                                          |                                            |                            |             |               |             |                   |             |            
|LIABILITIES                                                                                               |                                            |                            |             |               |             |                   |             |            
|                                                                                                         
|                                                                                                         
|                                                                                                         
|                                                                                                         
|Deposits:                                                                                                 |                                            |                            |             |               |             |                   |             |            
|                                                                                                         
|                                                                                                         
|                                                                                                         
|                                                                                                         
|                                                                                                          | Noninterest-bearing demand                 |                            | $           | 86,106,684    |             |                   | $           | 76,159,071  |            
|                                                                                                         
|                                                                                                         
|                                                                                                         
|                                                                                                         
|                                                                                                          | Interest-bearing demand and money market   |                            |             | 179,380,766   |             |                   |             | 146,486,257 |            
|                                                                                                         
|                                                                                                         
|                                                                                                         
|                                                                                                         
|                                                                                                          | Savings                                    |                            |             | 24,372,533    |             |                   |             | 23,241,720  |            
|                                                                                                         
|                                                                                                         
|                                                                                                         
|                                                                                                         
|                                                                                                          | Time deposits of $100,000 or more          |                            |             | 61,382,168    |             |                   |             | 58,934,127  |            
|                                                                                                         
|                                                                                                         
|                                                                                                         
|                                                                                                         
|                                                                                                          | Other time deposits                        |                            |             | 83,199,241    |             |                   |             | 87,605,612  |            
|                                                                                                          |                                            |                            |             |               |             |                   |             |            
|                                                                                                          |                                            | Total Deposits             |             |               | 434,441,392 |                   |             |             | 392,426,787 | 
|                                                                                                         
|                                                                                                         
|                                                                                                         
|                                                                                                         
|Short-term borrowings                                                                                     |                                            |                            | 1,694,536   |               |             |                   | 1,041,799   |            
|                                                                                                         
|                                                                                                         
|                                                                                                         
|                                                                                                         
|Notes payable                                                                                             |                                            |                            | 5,250,000   |               |             |                   | 5,250,000   |            
|                                                                                                         
|                                                                                                         
|                                                                                                         
|                                                                                                         
|Trust preferred securities                                                                                |                                            |                            | 8,000,000   |               |             |                   | 8,000,000   |            
|                                                                                                         
|                                                                                                         
|                                                                                                         
|                                                                                                         
|Other liabilities                                                                                         |                                            |                            | 7,385,264   |               |             |                   | 6,364,905   |            
|                                                                                                          |                                            |                            |             |               |             |                   |             |            
|                                                                                                          | TOTAL LIABILITIES                          |                            |             | 456,771,192   |             |                   |             | 413,083,491 |            
|                                                                                                          |                                            |                            |             |               |             |                   |             |            
|STOCKHOLDERS EQUITY                                                                                      |                                            |                            |             |               |             |                   |             |            
|                                                                                                         
|                                                                                                         
|                                                                                                         
|                                                                                                         
|Common stock  $.10 par value: 7,500,000 shares
authorized, 3,928,160 and 3,902,410 shares
issued         |                                            |                            | 392,816     |               |             |                   | 390,241     |            
|                                                                                                         
|                                                                                                         
|                                                                                                         
|                                                                                                         
|Additional paid in capital                                                                                |                                            |                            | 8,063,355   |               |             |                   | 7,886,047   |            
|                                                                                                         
|                                                                                                         
|                                                                                                         
|                                                                                                         
|Retained earnings                                                                                         |                                            |                            | 18,711,802  |               |             |                   | 17,815,366  |            
|                                                                                                         
|                                                                                                         
|                                                                                                         
|                                                                                                         
|Accumulated other comprehensive income 
unrealized gain on investment securities
available for sale, net |                                            |                            | 177,000     |               |             |                   | 145,000     |            
|                                                                                                          |                                            |                            |             |               |             |                   |             |            
|                                                                                                          |                                            | TOTAL STOCKHOLDERS EQUITY |             |               | 27,344,973  |                   |             |             | 26,236,654  | 
|                                                                                                          |                                            |                            |             |               |             |                   |             |            
|                                                                                                          | TOTAL LIABILITIES AND STOCKHOLDERS
EQUITY |                            | $           | 484,116,165   |             |                   | $           | 439,320,145 |            
|                                                                                                          |                                            |                            |             |               |             |                   |             |            

(See notes to consolidated financial statements)

1



---



TIB FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF INCOME


(Unaudited)


|                                                                                             |                                               |                                                     |           |                    |           |                  |           |         |           |      |            |           |            |   |            |           |            | 
|-------------------------------------------------------------------------------------------- | --------------------------------------------- | --------------------------------------------------- | --------- | ------------------ | --------- | ---------------- | --------- | ------- | --------- | ---- | ---------- | --------- | ---------- | - | ---------- | --------- | ---------- | 
|                                                                                             |                                               |                                                     |           | Three months ended |           | Six months ended
|                                                                                             |                                               |                                                     |           | June 30,           |           | June 30,        
|                                                                                             |                                               |                                                     |           |                    |           |                 
|                                                                                             |                                               |                                                     |           | 2001               |           | 2000             |           | 2001    |           | 2000
|                                                                                             |                                               |                                                     |           |                    |           |                  |           |         |           |     
|INTEREST INCOME                                                                              |                                               |                                                     |           |                    |           |                  |           |         |           |      |            |           |            |   |            |          
|                                                                                            
|                                                                                            
|                                                                                            
|                                                                                            
|Loans, including fees                                                                        |                                               | $                                                   | 7,318,304 |                    |           | $                | 6,913,232 |         |           | $    | 14,708,426 |           |            | $ | 13,417,335 |          
|                                                                                            
|                                                                                            
|                                                                                            
|                                                                                            
|Investment securities:                                                                       |                                               |                                                     |           |                    |           |                  |           |         |           |      |            |           |            |   |            |          
|                                                                                            
|                                                                                            
|                                                                                            
|                                                                                            
|                                                                                             | U.S. Treasury securities                      |                                                     |           | 39,379             |           |                  |           | 236,428 |           |      |            | 79,158    |            |   |            | 496,252   |           
|                                                                                            
|                                                                                            
|                                                                                            
|                                                                                            
|                                                                                             | U.S. Government agencies and corporations     |                                                     |           | 733,629            |           |                  |           | 531,077 |           |      |            | 1,603,644 |            |   |            | 1,064,405 |           
|                                                                                            
|                                                                                            
|                                                                                            
|                                                                                            
|                                                                                             | States and political subdivisions, tax-exempt |                                                     |           | 68,413             |           |                  |           | 83,010  |           |      |            | 137,129   |            |   |            | 173,830   |           
|                                                                                            
|                                                                                            
|                                                                                            
|                                                                                            
|                                                                                             | States and political subdivisions, taxable    |                                                     |           | 85,280             |           |                  |           |        |           |      |            | 114,918   |            |   |            |          |           
|                                                                                            
|                                                                                            
|                                                                                            
|                                                                                            
|                                                                                             | Other investments                             |                                                     |           | 76,089             |           |                  |           | 20,437  |           |      |            | 100,544   |            |   |            | 40,986    |           
|                                                                                            
|                                                                                            
|                                                                                            
|                                                                                            
|Interest bearing deposits in other bank                                                      |                                               |                                                     | 527       |                    |           |                  | 2,100     |         |           |      | 1,685      |           |            |   | 2,470      |          
|                                                                                            
|                                                                                            
|                                                                                            
|                                                                                            
|Federal funds sold                                                                           |                                               |                                                     | 380,313   |                    |           |                  | 116,622   |         |           |      | 743,746    |           |            |   | 208,529    |          
|                                                                                             |                                               |                                                     |           |                    |           |                  |           |         |           |      |            |           |            |   |            |          
|                                                                                             |                                               | TOTAL INTEREST INCOME                               |           |                    | 8,701,934 |                  |           |         | 7,902,906 |      |            |           | 17,489,250 |   |            |           | 15,403,807 | 
|                                                                                             |                                               |                                                     |           |                    |           |                  |           |         |           |      |            |           |            |   |            |          
|INTEREST EXPENSE                                                                             |                                               |                                                     |           |                    |           |                  |           |         |           |      |            |           |            |   |            |          
|                                                                                            
|                                                                                            
|                                                                                            
|                                                                                            
|Interest-bearing demand and money market                                                     |                                               |                                                     | 1,488,451 |                    |           |                  | 1,601,244 |         |           |      | 3,184,954  |           |            |   | 3,017,495  |          
|                                                                                            
|                                                                                            
|                                                                                            
|                                                                                            
|Savings                                                                                      |                                               |                                                     | 123,853   |                    |           |                  | 134,333   |         |           |      | 252,923    |           |            |   | 272,414    |          
|                                                                                            
|                                                                                            
|                                                                                            
|                                                                                            
|Time deposits of $100,000 or more                                                            |                                               |                                                     | 993,774   |                    |           |                  | 631,731   |         |           |      | 2,002,313  |           |            |   | 1,280,853  |          
|                                                                                            
|                                                                                            
|                                                                                            
|                                                                                            
|Other time deposits                                                                          |                                               |                                                     | 1,247,429 |                    |           |                  | 905,077   |         |           |      | 2,581,787  |           |            |   | 1,739,741  |          
|                                                                                            
|                                                                                            
|                                                                                            
|                                                                                            
|Long term debt  trust preferred securities                                                  |                                               |                                                     | 214,302   |                    |           |                  |          |         |           |      | 428,604    |           |            |   |           |          
|                                                                                            
|                                                                                            
|                                                                                            
|                                                                                            
|Notes payable                                                                                |                                               |                                                     | 173,014   |                    |           |                  |          |         |           |      | 344,132    |           |            |   |           |          
|                                                                                            
|                                                                                            
|                                                                                            
|                                                                                            
|Short-term borrowings                                                                        |                                               |                                                     | 11,773    |                    |           |                  | 79,592    |         |           |      | 28,617     |           |            |   | 149,647    |          
|                                                                                             |                                               |                                                     |           |                    |           |                  |           |         |           |      |            |           |            |   |            |          
|                                                                                             |                                               | TOTAL INTEREST EXPENSE                              |           |                    | 4,252,596 |                  |           |         | 3,351,977 |      |            |           | 8,823,330  |   |            |           | 6,460,150  | 
|                                                                                             |                                               |                                                     |           |                    |           |                  |           |         |           |      |            |           |            |   |            |          
|                                                                                             |                                               | NET INTEREST INCOME                                 |           |                    | 4,449,338 |                  |           |         | 4,550,929 |      |            |           | 8,665,920  |   |            |           | 8,943,657  | 
|                                                                                             |                                               |                                                     |           |                    |           |                  |           |         |           |      |            |           |            |   |            |          
|PROVISION FOR LOAN LOSSES                                                                    |                                               |                                                     | 135,000   |                    |           |                  | 135,000   |         |           |      | 270,000    |           |            |   | 270,000    |          
|                                                                                             |                                               |                                                     |           |                    |           |                  |           |         |           |      |            |           |            |   |            |          
|                                                                                             |                                               | NET INTEREST INCOME AFTER PROVISION FOR
LOAN LOSSES |           |                    | 4,314,338 |                  |           |         | 4,415,929 |      |            |           | 8,395,920  |   |            |           | 8,673,657  | 
|                                                                                            
|                                                                                            
|                                                                                            
|                                                                                            
|OTHER INCOME                                                                                 |                                               |                                                     |           |                    |           |                  |           |         |           |      |            |           |            |   |            |          
|                                                                                            
|                                                                                            
|                                                                                            
|                                                                                            
|Service charges on deposit accounts                                                          |                                               |                                                     | 532,985   |                    |           |                  | 484,462   |         |           |      | 1,124,787  |           |            |   | 981,862    |          
|                                                                                            
|                                                                                            
|                                                                                            
|                                                                                            
|Investment securities gains, net                                                             |                                               |                                                     |          |                    |           |                  |          |         |           |      | 1,866      |           |            |   |           |          
|                                                                                            
|                                                                                            
|                                                                                            
|                                                                                            
|Merchant bankcard processing income                                                          |                                               |                                                     | 1,085,982 |                    |           |                  | 980,337   |         |           |      | 2,333,277  |           |            |   | 2,074,620  |          
|                                                                                            
|                                                                                            
|                                                                                            
|                                                                                            
|Gain on sale of government guaranteed loans                                                  |                                               |                                                     | 34,557    |                    |           |                  | 186,573   |         |           |      | 34,557     |           |            |   | 192,209    |          
|                                                                                            
|                                                                                            
|                                                                                            
|                                                                                            
|Fees on mortgage loans sold at origination                                                   |                                               |                                                     | 305,151   |                    |           |                  | 98,987    |         |           |      | 517,573    |           |            |   | 160,813    |          
|                                                                                            
|                                                                                            
|                                                                                            
|                                                                                            
|Commissions on sales by Keys Insurance Agency, Inc.                                          |                                               |                                                     | 402,132   |                    |           |                  |          |         |           |      | 721,330    |           |            |   |           |          
|                                                                                            
|                                                                                            
|                                                                                            
|                                                                                            
|Retail investment services                                                                   |                                               |                                                     | 35,162    |                    |           |                  | 78,143    |         |           |      | 74,204     |           |            |   | 146,662    |          
|                                                                                            
|                                                                                            
|                                                                                            
|                                                                                            
|Equity in (loss) income, net of goodwill
amortization, from investment in ERAS Joint Venture |                                               |                                                     | (52,839   | )                  |           |                  | (7,463    | )       |           |      | (96,765    | )         |            |   | 25,070     |          
|                                                                                            
|                                                                                            
|                                                                                            
|                                                                                            
|Other income                                                                                 |                                               |                                                     | 304,979   |                    |           |                  | 203,250   |         |           |      | 562,472    |           |            |   | 374,554    |          
|                                                                                             |                                               |                                                     |           |                    |           |                  |           |         |           |      |            |           |            |   |            |          
|                                                                                             |                                               | TOTAL OTHER INCOME                                  |           |                    | 2,648,109 |                  |           |         | 2,024,289 |      |            |           | 5,273,301  |   |            |           | 3,955,790  | 
|                                                                                             |                                               |                                                     |           |                    |           |                  |           |         |           |      |            |           |            |   |            |          
|OTHER EXPENSE                                                                                |                                               |                                                     |           |                    |           |                  |           |         |           |      |            |           |            |   |            |          
|                                                                                            
|                                                                                            
|                                                                                            
|                                                                                            
|Salaries and employee benefits                                                               |                                               |                                                     | 2,470,902 |                    |           |                  | 1,911,511 |         |           |      | 4,836,961  |           |            |   | 3,823,427  |          
|                                                                                            
|                                                                                            
|                                                                                            
|                                                                                            
|Net occupancy expense                                                                        |                                               |                                                     | 846,033   |                    |           |                  | 701,105   |         |           |      | 1,615,170  |           |            |   | 1,356,854  |          
|                                                                                            
|                                                                                            
|                                                                                            
|                                                                                            
|Other expense                                                                                |                                               |                                                     | 2,242,956 |                    |           |                  | 1,975,590 |         |           |      | 4,546,329  |           |            |   | 3,922,843  |          
|                                                                                             |                                               |                                                     |           |                    |           |                  |           |         |           |      |            |           |            |   |            |          
|                                                                                             |                                               | TOTAL OTHER EXPENSE                                 |           |                    | 5,559,891 |                  |           |         | 4,588,206 |      |            |           | 10,998,460 |   |            |           | 9,103,124  | 
|                                                                                             |                                               |                                                     |           |                    |           |                  |           |         |           |      |            |           |            |   |            |          
|                                                                                             |                                               | INCOME BEFORE INCOME TAX EXPENSE                    |           |                    | 1,402,556 |                  |           |         | 1,852,012 |      |            |           | 2,670,761  |   |            |           | 3,526,323  | 
|                                                                                            
|                                                                                            
|                                                                                            
|                                                                                            
|INCOME TAX EXPENSE                                                                           |                                               |                                                     | 490,500   |                    |           |                  | 677,600   |         |           |      | 931,500    |           |            |   | 1,302,000  |          
|                                                                                             |                                               |                                                     |           |                    |           |                  |           |         |           |      |            |           |            |   |            |          
|                                                                                             |                                               | NET INCOME                                          |           | $                  | 912,056   |                  |           | $       | 1,174,412 |      |            | $         | 1,739,261  |   |            | $         | 2,224,323  | 
|                                                                                             |                                               |                                                     |           |                    |           |                  |           |         |           |      |            |           |            |   |            |          
|BASIC EARNINGS PER SHARE:                                                                    |                                               | $                                                   | 0.23      |                    |           | $                | 0.27      |         |           | $    | 0.44       |           |            | $ | 0.51       |          
|                                                                                            
|                                                                                            
|                                                                                            
|                                                                                            
|DILUTED EARNINGS PER SHARE:                                                                  |                                               | $                                                   | 0.22      |                    |           | $                | 0.26      |         |           | $    | 0.43       |           |            | $ | 0.49       |          

(See notes to consolidated financial statements)

2



---



TIB FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY


(Unaudited)


|                                                |                                                            |                                                                        |            |           |        |        |   |               |        |          |            |               |  |               |   |         |  |         |         |             |        |   |         |  |  |            |           |  |  | 
|----------------------------------------------- | ---------------------------------------------------------- | ---------------------------------------------------------------------- | ---------- | --------- | ------ | ------ | - | ------------- | ------ | -------- | ---------- | ------------- |  | ------------- | - | ------- |  | ------- | ------- | ----------- | ------ | - | ------- |  |  | ---------- | --------- |  |  | 
|                                                |                                                            |                                                                        |            |           |        |        |   |               |        |          |            |               |  |               |   |         |  |         |         | Accumulated |        |   |         |  |  |            |           | 
|                                                |                                                            |                                                                        |            |           |        |        |   |               |        |          |            |               |  |               |   |         |  |         |         | Other       |        |   |         |  |  | Additional
|                                                |                                                            |                                                                        |            |           |        |        |   | Comprehensive |        | Retained |            | Treasury      |  | Comprehensive |   | Common  |  | Paid in
|                                                |                                                            |                                                                        |            | Total     |        | Income |   | Earnings      |        | Stock    |            | Income (Loss) |  | Stock         |   | Capital
|                                                |                                                            |                                                                        |            |           |        |        |   |               |        |          |            |               |  |               |   |        
|Balance at December 31, 2000                    |                                                            | $                                                                      | 26,236,654 |           |        |        |   |               |        | $        | 17,815,366 |               |  |               |  |         |  | $       | 145,000 |             |        | $ | 390,241 |  |  | $          | 7,886,047 | 
|                                               
|                                               
|                                               
|                                               
|Comprehensive Income                            |                                                            |                                                                        |            |           |        |        |   |               |        |          |            |               |  |               |   |         |  |         |         |             |        |   |         |  |  |            |           | 
|                                               
|                                               
|                                               
|                                               
|                                                | Net Income                                                 |                                                                        |            | 1,739,261 |        |        | $ | 1,739,261     |        |          |            | 1,739,261     |  |               |   |         |  |         |         |             |        |   |         |  |  |            |           |  | 
|                                               
|                                               
|                                               
|                                               
|                                                | Other comprehensive income, net of
tax expense of $18,000: |                                                                        |            |           |        |        |   |               |        |          |            |               |  |               |   |         |  |         |         |             |        |   |         |  |  |            |           |  | 
|                                               
|                                               
|                                               
|                                               
|                                                |                                                            | Change in unrealized gain
(loss) on securities
available for sale, net |            |           | 32,000 |        |   |               | 32,000 |          |            |               |  |               |   |         |  |         |         |             | 32,000 |   |         |  |  |            |           |  |  | 
|                                                |                                                            |                                                                        |            |           |        |        |   |               |        |          |            |               |  |               |   |         |  |         |         |             |        |   |         |  |  |            |           | 
|                                                | Comprehensive income                                       |                                                                        |            |           |        |        | $ | 1,771,261     |        |          |            |               |  |               |   |         |  |         |         |             |        |   |         |  |  |            |           |  | 
|                                                |                                                            |                                                                        |            |           |        |        |   |               |        |          |            |               |  |               |   |         |  |         |         |             |        |   |         |  |  |            |           | 
|Exercise of stock options                       |                                                            |                                                                        | 154,075    |           |        |        |   |               |        |          |            |               |  |               |   |         |  |         |         |             |        |   | 2,575   |  |  |            | 151,500   | 
|                                               
|                                               
|                                               
|                                               
|Income tax benefit from stock options
exercised |                                                            |                                                                        | 25,808     |           |        |        |   |               |        |          |            |               |  |               |   |         |  |         |         |             |        |   |         |  |  |            | 25,808    | 
|                                               
|                                               
|                                               
|                                               
|Cash dividends declared, $.215 per
share        |                                                            |                                                                        | (842,825   | )         |        |        |   |               |        |          | (842,825   | )             |  |               |   |         |  |         |         |             |        |   |         |  |  |            |           | 
|                                                |                                                            |                                                                        |            |           |        |        |   |               |        |          |            |               |  |               |   |         |  |         |         |             |        |   |         |  |  |            |           | 
|Balance at June 30, 2001                        |                                                            | $                                                                      | 27,344,973 |           |        |        |   |               |        | $        | 18,711,802 |               |  |               |  |         |  | $       | 177,000 |             |        | $ | 392,816 |  |  | $          | 8,063,355 | 
|                                                |                                                            |                                                                        |            |           |        |        |   |               |        |          |            |               |  |               |   |         |  |         |         |             |        |   |         |  |  |            |           | 

|                                                |                                                           |                                                                        |            |           |        |        |   |               |        |          |            |               |  |               |            |         |  |         |          |             |        |   |         |   |  |            |           |  |  | 
|----------------------------------------------- | --------------------------------------------------------- | ---------------------------------------------------------------------- | ---------- | --------- | ------ | ------ | - | ------------- | ------ | -------- | ---------- | ------------- |  | ------------- | ---------- | ------- |  | ------- | -------- | ----------- | ------ | - | ------- | - |  | ---------- | --------- |  |  | 
|                                                |                                                           |                                                                        |            |           |        |        |   |               |        |          |            |               |  |               |            |         |  |         |          | Accumulated |        |   |         |   |  |            |           | 
|                                                |                                                           |                                                                        |            |           |        |        |   |               |        |          |            |               |  |               |            |         |  |         |          | Other       |        |   |         |   |  | Additional
|                                                |                                                           |                                                                        |            |           |        |        |   | Comprehensive |        | Retained |            | Treasury      |  | Comprehensive |            | Common  |  | Paid in
|                                                |                                                           |                                                                        |            | Total     |        | Income |   | Earnings      |        | Stock    |            | Income (Loss) |  | Stock         |            | Capital
|                                                |                                                           |                                                                        |            |           |        |        |   |               |        |          |            |               |  |               |            |        
|Balance at December 31, 1999                    |                                                           | $                                                                      | 28,302,158 |           |        |        |   |               |        | $        | 21,634,649 |               |  | $             | (1,051,472 | )       |  | $       | (285,000 | )           |        | $ | 449,014 |   |  | $          | 7,554,967 | 
|                                               
|                                               
|                                               
|                                               
|Comprehensive Income                            |                                                           |                                                                        |            |           |        |        |   |               |        |          |            |               |  |               |            |         |  |         |          |             |        |   |         |   |  |            |           | 
|                                               
|                                               
|                                               
|                                               
|                                                | Net Income                                                |                                                                        |            | 2,224,323 |        |        | $ | 2,224,323     |        |          |            | 2,224,323     |  |               |            |         |  |         |          |             |        |   |         |   |  |            |           |  | 
|                                               
|                                               
|                                               
|                                               
|                                                | Other comprehensive income, net of
tax expense of $7,000: |                                                                        |            |           |        |        |   |               |        |          |            |               |  |               |            |         |  |         |          |             |        |   |         |   |  |            |           |  | 
|                                               
|                                               
|                                               
|                                               
|                                                |                                                           | Change in unrealized gain
(loss) on securities
available for sale, net |            |           | 11,000 |        |   |               | 11,000 |          |            |               |  |               |            |         |  |         |          |             | 11,000 |   |         |   |  |            |           |  |  | 
|                                                |                                                           |                                                                        |            |           |        |        |   |               |        |          |            |               |  |               |            |         |  |         |          |             |        |   |         |   |  |            |           | 
|                                                | Comprehensive income                                      |                                                                        |            |           |        |        | $ | 2,235,323     |        |          |            |               |  |               |            |         |  |         |          |             |        |   |         |   |  |            |           |  | 
|                                                |                                                           |                                                                        |            |           |        |        |   |               |        |          |            |               |  |               |            |         |  |         |          |             |        |   |         |   |  |            |           | 
|Exercise of stock options                       |                                                           |                                                                        | 93,138     |           |        |        |   |               |        |          |            |               |  |               |            |         |  |         |          |             |        |   | 1,581   |   |  |            | 91,557    | 
|                                               
|                                               
|                                               
|                                               
|Income tax benefit from stock options
exercised |                                                           |                                                                        | 21,669     |           |        |        |   |               |        |          |            |               |  |               |            |         |  |         |          |             |        |   |         |   |  |            | 21,669    | 
|                                               
|                                               
|                                               
|                                               
|Purchase of treasury stock                      |                                                           |                                                                        | (51,590    | )         |        |        |   |               |        |          |            |               |  |               | (51,590    | )       |  |         |          |             |        |   |         |   |  |            |           | 
|                                               
|                                               
|                                               
|                                               
|Retirement of treasury stock                    |                                                           |                                                                        |            |           |        |        |   |               |        |          | (1,093,062 | )             |  |               | 1,103,062  |         |  |         |          |             |        |   | (10,000 | ) |  |            |           | 
|                                               
|                                               
|                                               
|                                               
|Cash dividends declared, $.21 per share         |                                                           |                                                                        | (924,009   | )         |        |        |   |               |        |          | (924,009   | )             |  |               |            |         |  |         |          |             |        |   |         |   |  |            |           | 
|                                                |                                                           |                                                                        |            |           |        |        |   |               |        |          |            |               |  |               |            |         |  |         |          |             |        |   |         |   |  |            |           | 
|Balance at June 30, 2000                        |                                                           | $                                                                      | 29,676,689 |           |        |        |   |               |        | $        | 21,841,901 |               |  | $             |           |         |  | $       | (274,000 | )           |        | $ | 440,595 |   |  | $          | 7,668,193 | 
|                                                |                                                           |                                                                        |            |           |        |        |   |               |        |          |            |               |  |               |            |         |  |         |          |             |        |   |         |   |  |            |           | 

3



---



TIB FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS


INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(Unaudited)


|                                                                                           |              |                                                                                   |             |                                |             |      |             |           |             |  
|------------------------------------------------------------------------------------------ | ------------ | --------------------------------------------------------------------------------- | ----------- | ------------------------------ | ----------- | ---- | ----------- | --------- | ----------- | -
|                                                                                           |              |                                                                                   |             | For the six month period ended
|                                                                                           |              |                                                                                   |             | June 30,                      
|                                                                                           |              |                                                                                   |             | 2001                           |             | 2000
|                                                                                           |              |                                                                                   |             |                                |             |     
|CASH FLOWS FROM OPERATING ACTIVITIES                                                       |              |                                                                                   |             |                                |             |      |             |          
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                          
|Net Income                                                                                 |              | $                                                                                 | 1,739,261   |                                |             | $    | 2,224,323   |          
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                          
|Adjustments to reconcile net income to net cash provided by operating
activities:          |              |                                                                                   |             |                                |             |      |             |          
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                           |              | Net amortization of investments                                                   |             |                                | 19,582      |      |             |           | 98,048      |  
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                           |              | Amortization of intangible assets                                                 |             |                                | 238,075     |      |             |           | 88,720      |  
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                           |              | Depreciation of premises and equipment                                            |             |                                | 666,873     |      |             |           | 611,487     |  
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                           |              | Provision for loan losses                                                         |             |                                | 270,000     |      |             |           | 270,000     |  
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                           |              | Deferred income tax provision (benefit)                                           |             |                                | (18,617     | )    |             |           | (6,138      | )
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                           |              | Deferred net loan fees                                                            |             |                                | (192,007    | )    |             |           | (115,048    | )
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                           |              | Investment securities gains, net                                                  |             |                                | (1,866      | )    |             |           |            |  
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                           |              | Loss on sale/disposal of premises and equipment                                   |             |                                | 8,158       |      |             |           | 16,850      |  
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                           |              | Gain on sales of government guaranteed loans, net                                 |             |                                | (34,557     | )    |             |           | (192,209    | )
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                           |              | Decrease (increase) in other assets                                               |             |                                | 613,842     |      |             |           | (1,533,450  | )
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                           |              | Increase in other liabilities                                                     |             |                                | 1,043,463   |      |             |           | 338,051     |  
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                           |              | Equity in (income) loss, net of goodwill
amortization, from investment in ERAS JV |             |                                | 96,765      |      |             |           | (25,070     | )
|                                                                                           |              |                                                                                   |             |                                |             |      |             |          
|                                                                                           |              | NET CASH PROVIDED BY OPERATING ACTIVITIES                                         |             |                                | 4,448,972   |      |             |           | 1,775,564   |  
|                                                                                           |              |                                                                                   |             |                                |             |      |             |          
|CASH FLOWS FROM INVESTING ACTIVITIES                                                       |              |                                                                                   |             |                                |             |      |             |          
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                          
|Purchases of investment securities held to maturity                                        |              |                                                                                   | (117,500    | )                              |             |      |            |          
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                          
|Purchases of investment securities available for sale                                      |              |                                                                                   | (7,303,758  | )                              |             |      |            |          
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                          
|Repayments of principal and maturities of investment securities
available for sale         |              |                                                                                   | 2,706,568   |                                |             |      | 953,954     |          
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                          
|Maturities of investment securities held to maturity                                       |              |                                                                                   | 10,000,000  |                                |             |      | 4,000,000   |          
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                          
|Proceeds from sales of government guaranteed loans                                         |              |                                                                                   |            |                                |             |      | 9,631,596   |          
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                          
|Loans originated or acquired, net of principal repayments                                  |              |                                                                                   | (29,118,312 | )                              |             |      | (26,945,825 | )        
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                          
|Purchases of premises and equipment                                                        |              |                                                                                   | (3,307,833  | )                              |             |      | (506,151    | )        
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                          
|Purchase of insurance policy                                                               |              |                                                                                   | (310,000    | )                              |             |      |            |          
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                          
|Sales of premises and equipment                                                            |              |                                                                                   | 7,785       |                                |             |      | 22,670      |          
|                                                                                           |              |                                                                                   |             |                                |             |      |             |          
|                                                                                           |              | NET CASH USED IN INVESTING ACTIVITIES                                             |             |                                | (27,443,050 | )    |             |           | (12,843,756 | )
|                                                                                           |              |                                                                                   |             |                                |             |      |             |          
|CASH FLOWS FROM FINANCING ACTIVITIES                                                       |              |                                                                                   |             |                                |             |      |             |          
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                          
|Net increase in federal funds purchased and securities sold under
agreements to repurchase |              |                                                                                   | 652,737     |                                |             |      | 540,549     |          
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                          
|Net increase in demand, money market and savings accounts                                  |              |                                                                                   | 43,972,935  |                                |             |      | 12,207,268  |          
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                          
|Net increase (decrease) in time deposits                                                   |              |                                                                                   | (1,958,330  | )                              |             |      | 3,465,816   |          
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                          
|Repayment of short term borrowings                                                         |              |                                                                                   |            |                                |             |      | (18,659,625 | )        
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                          
|Advances on short term borrowings                                                          |              |                                                                                   |            |                                |             |      | 15,000,000  |          
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                          
|Proceeds from exercise of stock options                                                    |              |                                                                                   | 154,075     |                                |             |      | 93,138      |          
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                          
|Treasury stock repurchased                                                                 |              |                                                                                   |            |                                |             |      | (51,590     | )        
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                          
|Cash dividends paid                                                                        |              |                                                                                   | (840,121    | )                              |             |      | (922,874    | )        
|                                                                                           |              |                                                                                   |             |                                |             |      |             |          
|                                                                                           |              | NET CASH PROVIDED BY FINANCING ACTIVITIES                                         |             |                                | 41,981,296  |      |             |           | 11,672,682  |  
|                                                                                           |              |                                                                                   |             |                                |             |      |             |          
|NET INCREASE IN CASH AND CASH EQUIVALENTS                                                  |              |                                                                                   | 18,987,218  |                                |             |      | 604,490     |          
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                          
|CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD                                           |              |                                                                                   | 23,565,494  |                                |             |      | 22,164,372  |          
|                                                                                           |              |                                                                                   |             |                                |             |      |             |          
|CASH AND CASH EQUIVALENTS AT
END OF PERIOD                                                 |              | $                                                                                 | 42,552,712  |                                |             | $    | 22,768,862  |          
|                                                                                           |              |                                                                                   |             |                                |             |      |             |          
|SUPPLEMENTAL DISCLOSURES OF CASH FLOWS:                                                    |              |                                                                                   |             |                                |             |      |             |          
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                          
|Cash paid for:                                                                             |              |                                                                                   |             |                                |             |      |             |          
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                           | Interest     |                                                                                   | $           | 8,640,225                      |             |      | $           | 6,391,658 |            
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                           | Income taxes |                                                                                   |             | 1,290,000                      |             |      |             | 1,215,000 |            

(See notes to consolidated financial statements)

4



---



TIB FINANCIAL CORP.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


JUNE 30, 2001


(Unaudited)


NOTE 1  BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements for TIB Financial
Corp. (the Company) have been prepared in accordance with accounting
principles generally accepted in the United States of America for interim
financial information and Regulation S-X. Accordingly, they do not include all
of the information and footnotes required by accounting principles generally
accepted in the United States of America for complete financial statement
presentation. In the opinion of management, all adjustments (consisting of
normal recurring accruals) considered necessary for a fair presentation have
been included. Operating results for the six months ended June 30, 2001 are
not necessarily indicative of trends or results to be expected for the year
ended December 31, 2001. For further information, refer to the Companys
consolidated financial statements and footnotes thereto for the year ended
December 31, 2000.

The consolidated statements include the accounts of TIB Financial Corp. and its
wholly-owned subsidiaries, TIB Bank of the Keys, TIB Software and Services,
Inc., TIBFL Statutory Trust I and Keys Insurance Agency, Inc. and the Banks
two subsidiaries, TIB Government Loan Specialists, Inc. and TIB Investment &
Insurance Center Inc., collectively known as the Company. All significant
intercompany accounts and transactions have been eliminated in consolidation.

Certain amounts previously reported on have been reclassified to conform with
current period presentation.

NOTE 2  INVESTMENT SECURITIES

Securities available-for-sale are securities which management believes may be
sold prior to maturity for liquidity or other reasons and are reported at fair
value, with unrealized gains and losses, net of related income taxes, reported
as a separate component of stockholders equity. Securities held-to-maturity
are those securities for which management has both the ability and intent to
hold to maturity and are carried at amortized cost.

The amortized cost and estimated fair value of investment securities
held-to-maturity at June 30, 2001 and December 31, 2000 are presented below:

|                                          |  |               |            |            |  |            |         |       |  |   |        |  |  |   |            | 
|----------------------------------------- |  | ------------- | ---------- | ---------- |  | ---------- | ------- | ----- |  | - | ------ |  |  | - | ---------- | 
|                                          |  | June 30, 2001
|                                          |  |              
|                                          |  | Amortized     |            | Unrealized |  | Unrealized |         | Fair 
|                                          |  | Cost          |            | Gains      |  | Losses     |         | Value
|                                          |  |               |            |            |  |            |         |      
|U.S. Treasury securities                  |  | $             | 100,309    |            |  | $          | 2,191   |       |  | $ |       |  |  | $ | 102,500    | 
|                                         
|                                         
|                                         
|                                         
|U.S. Government
agencies and
corporations |  |               | 23,166,108 |            |  |            | 119,941 |       |  |   | 94,173 |  |  |   | 23,191,876 | 
|                                         
|                                         
|                                         
|                                         
|Other investments                         |  |               | 1,306,760  |            |  |            |        |       |  |   |       |  |  |   | 1,306,760  | 
|                                          |  |               |            |            |  |            |         |       |  |   |        |  |  |   |            | 
|                                          |  | $             | 24,573,177 |            |  | $          | 122,132 |       |  | $ | 94,173 |  |  | $ | 24,601,136 | 
|                                          |  |               |            |            |  |            |         |       |  |   |        |  |  |   |            | 

|                                          |  |                   |            |            |  |            |     |       |  |   |         |  |  |   |            | 
|----------------------------------------- |  | ----------------- | ---------- | ---------- |  | ---------- | --- | ----- |  | - | ------- |  |  | - | ---------- | 
|                                          |  | December 31, 2000
|                                          |  |                  
|                                          |  | Amortized         |            | Unrealized |  | Unrealized |     | Fair 
|                                          |  | Cost              |            | Gains      |  | Losses     |     | Value
|                                          |  |                   |            |            |  |            |     |      
|U.S. Treasury securities                  |  | $                 | 100,422    |            |  | $          | 562 |       |  | $ |        |  |  | $ | 100,984    | 
|                                         
|                                         
|                                         
|                                         
|U.S. Government
agencies and
corporations |  |                   | 33,164,451 |            |  |            |    |       |  |   | 661,317 |  |  |   | 32,503,134 | 
|                                         
|                                         
|                                         
|                                         
|Other investments                         |  |                   | 1,189,260  |            |  |            |    |       |  |   |        |  |  |   | 1,189,260  | 
|                                          |  |                   |            |            |  |            |     |       |  |   |         |  |  |   |            | 
|                                          |  | $                 | 34,454,133 |            |  | $          | 562 |       |  | $ | 661,317 |  |  | $ | 33,793,378 | 
|                                          |  |                   |            |            |  |            |     |       |  |   |         |  |  |   |            | 

The amortized cost and estimated fair value of investment securities available
for sale at June 30, 2001 and December 31, 2000 are presented below:

5



---



|                                             |  |               |            |            |  |            |         |       |  |   |         |  |  |   |            | 
|-------------------------------------------- |  | ------------- | ---------- | ---------- |  | ---------- | ------- | ----- |  | - | ------- |  |  | - | ---------- | 
|                                             |  | June 30, 2001
|                                             |  |              
|                                             |  | Amortized     |            | Unrealized |  | Unrealized |         | Fair 
|                                             |  | Cost          |            | Gains      |  | Losses     |         | Value
|                                             |  |               |            |            |  |            |         |      
|U.S. Treasury securities                     |  | $             | 3,028,625  |            |  | $          | 48,265  |       |  | $ |        |  |  | $ | 3,076,890  | 
|                                            
|                                            
|                                            
|                                            
|U.S. Government agencies and corporations    |  |               | 106,052    |            |  |            |        |       |  |   | 1,083   |  |  |   | 104,969    | 
|                                            
|                                            
|                                            
|                                            
|States and political
subdivisions-tax-exempt |  |               | 5,738,074  |            |  |            | 149,331 |       |  |   |        |  |  |   | 5,887,405  | 
|                                            
|                                            
|                                            
|                                            
|States and political subdivisions-taxable    |  |               | 5,537,567  |            |  |            | 49,483  |       |  |   | 371,858 |  |  |   | 5,215,192  | 
|                                            
|                                            
|                                            
|                                            
|Mortgage-backed securities                   |  |               | 21,507,698 |            |  |            | 569,143 |       |  |   |        |  |  |   | 22,076,841 | 
|                                            
|                                            
|                                            
|                                            
|Corporate bonds                              |  |               | 3,180,681  |            |  |            |         |       |  |   | 160,281 |  |  |   | 3,020,400  | 
|                                             |  |               |            |            |  |            |         |       |  |   |         |  |  |   |            | 
|                                             |  | $             | 39,098,697 |            |  | $          | 816,222 |       |  | $ | 533,222 |  |  | $ | 39,381,697 | 
|                                             |  |               |            |            |  |            |         |       |  |   |         |  |  |   |            | 

|                                             |  |                   |            |            |  |            |         |       |  |   |        |  |  |   |            | 
|-------------------------------------------- |  | ----------------- | ---------- | ---------- |  | ---------- | ------- | ----- |  | - | ------ |  |  | - | ---------- | 
|                                             |  | December 31, 2000
|                                             |  |                  
|                                             |  | Amortized         |            | Unrealized |  | Unrealized |         | Fair 
|                                             |  | Cost              |            | Gains      |  | Losses     |         | Value
|                                             |  |                   |            |            |  |            |         |      
|U.S. Treasury securities                     |  | $                 | 3,039,611  |            |  | $          |        |       |  | $ | 5,381  |  |  | $ | 3,034,230  | 
|                                            
|                                            
|                                            
|                                            
|States and political
subdivisions-tax-exempt |  |                   | 5,737,356  |            |  |            | 90,369  |       |  |   |       |  |  |   | 5,827,725  | 
|                                            
|                                            
|                                            
|                                            
|States and political subdivisions-taxable    |  |                   | 1,563,790  |            |  |            | 26,441  |       |  |   | 62,935 |  |  |   | 1,527,296  | 
|                                            
|                                            
|                                            
|                                            
|Mortgage-backed securities                   |  |                   | 24,180,010 |            |  |            | 185,553 |       |  |   | 1,047  |  |  |   | 24,364,516 | 
|                                             |  |                   |            |            |  |            |         |       |  |   |        |  |  |   |            | 
|                                             |  | $                 | 34,520,767 |            |  | $          | 302,363 |       |  | $ | 69,363 |  |  | $ | 34,753,767 | 
|                                             |  |                   |            |            |  |            |         |       |  |   |        |  |  |   |            | 

Other investments consist of stock in the Independent Bankers Bank of Florida
and the Federal Home Loan Bank of Atlanta.

NOTE 3  LOANS

Loans are reported at the gross amount outstanding, reduced by net deferred
loan fees and an allowance for loan losses. Interest income on loans is
recognized over the terms of the loans based on the unpaid daily principal
amount outstanding. If the collectibility of interest appears doubtful, the
accrual thereof is discontinued. Loan origination fees, net of direct loan
origination costs, are deferred and recognized as income over the life of the
related loan on a level-yield basis. Gains on sales of government guaranteed
loans are recognized as income when the sale occurs.

Major classifications of loans are as follows:

|                            |                                  |  |               |             |                   |  |            |             | 
|--------------------------- | -------------------------------- |  | ------------- | ----------- | ----------------- |  | ---------- | ----------- | 
|                            |                                  |  | June 30, 2001 |             | December 31, 2000
|                            |                                  |  |               |             |                  
|Real estate mortgage loans: |                                  |  |               |             |                   |  |            |            
|                           
|                           
|                           
|                           
|                            | Commercial                       |  | $             | 194,099,665 |                   |  | $          | 170,284,808 | 
|                           
|                           
|                           
|                           
|                            | Residential                      |  |               | 82,008,704  |                   |  |            | 76,980,301  | 
|                           
|                           
|                           
|                           
|                            | Construction                     |  |               | 5,041,572   |                   |  |            | 7,618,849   | 
|                           
|                           
|                           
|                           
|Commercial loans            |                                  |  | 41,101,222    |             |                   |  | 38,762,547 |            
|                           
|                           
|                           
|                           
|Consumer loans              |                                  |  | 9,452,038     |             |                   |  | 9,114,774  |            
|                           
|                           
|                           
|                           
|Home equity loans           |                                  |  | 12,655,681    |             |                   |  | 12,813,132 |            
|                            |                                  |  |               |             |                   |  |            |            
|                            | Total loans                      |  |               | 344,358,882 |                   |  |            | 315,574,411 | 
|                           
|                           
|                           
|                           
|Net deferred loan fees      |                                  |  | 297,030       |             |                   |  | 489,036    |            
|                            |                                  |  |               |             |                   |  |            |             | 
|                            | Loans, net of deferred loan fees |  | $             | 344,061,852 |                   |  | $          | 315,085,375 | 
|                            |                                  |  |               |             |                   |  |            |            

NOTE 4  ALLOWANCE FOR LOAN LOSSES

The financial statements include an allowance for estimated losses on loans
based upon managements evaluation of specific loans and inherent losses in the
loan portfolio. The allowance for loan losses is established through a
provision for loan losses charged to expense. Managements judgment in
determining the adequacy of the

6



---



allowance is based on evaluations of the collectibility of loans and takes into
consideration such factors as changes in the nature and volume of the loan
portfolio, current economic conditions that may affect the borrowers ability
to pay, overall portfolio quality and review of specific problem loans.
Periodic revisions are made to the allowance when circumstances which
necessitate such revisions become known. Recognized losses are charged to the
allowance for loan losses, while subsequent recoveries are added to the
allowance.

Activity in the allowance for loan losses for the six months ended June 30,
2001 and June 30, 2000 follows:

|                                           |  |      |           |      |  |   |           |  
|------------------------------------------ |  | ---- | --------- | ---- |  | - | --------- | -
|                                           |  | 2001 |           | 2000
|                                           |  |      |           |     
|Balance, January 1                         |  | $    | 3,267,873 |      |  | $ | 2,996,532 |  
|                                          
|                                          
|                                          
|                                          
|Provision charged to expense               |  |      | 270,000   |      |  |   | 270,000   |  
|                                          
|                                          
|                                          
|                                          
|Loans charged off                          |  |      | (375,547  | )    |  |   | (8,792    | )
|                                          
|                                          
|                                          
|                                          
|Recoveries of loans previously charged off |  |      | 7,148     |      |  |   |          |  
|                                           |  |      |           |      |  |   |           |  
|Balance, June 30                           |  | $    | 3,169,474 |      |  | $ | 3,257,740 |  
|                                           |  |      |           |      |  |   |           |  

NOTE 5  EARNINGS PER SHARE AND COMMON STOCK

Basic earnings per share have been computed based on the weighted average
number of common equivalent shares outstanding during the period. Stock
options are considered to be common stock equivalents for purposes of
calculating diluted earnings per share.

The reconciliation of basic earnings per share to diluted earnings per share is
as follows:

|                                          |                                  |                                   |   |              |           |               |  |                  |           |  |   |      |     | 
|----------------------------------------- | -------------------------------- | --------------------------------- | - | ------------ | --------- | ------------- |  | ---------------- | --------- |  | - | ---- | --- | 
|                                          |                                  |                                   |   | Net Earnings |           | Common Shares |  | Per Share Amount
|                                          |                                  |                                   |   |              |           |               |  |                 
|For the six months ended June 30, 2001:   |                                  |                                   |   |              |           |               |  |                  |           |  |   |     
|                                         
|                                         
|                                         
|                                         
|                                          | Basic earnings per common share  |                                   | $ | 1,739,261    |           |               |  | 3,910,790        |           |  | $ | .44  |    
|                                         
|                                         
|                                         
|                                         
|                                          | Effect of dilutive stock options |                                   |   |             |           |               |  | 180,084          |           |  |   | (.01 | )  
|                                          |                                  |                                   |   |              |           |               |  |                  |           |  |   |     
|                                          |                                  | Diluted earnings per common share |   | $            | 1,739,261 |               |  |                  | 4,090,874 |  |   | $    | .43 | 
|                                          |                                  |                                   |   |              |           |               |  |                  |           |  |   |     
|For the six months ended June 30, 2000:   |                                  |                                   |   |              |           |               |  |                  |           |  |   |     
|                                         
|                                         
|                                         
|                                         
|                                          | Basic earnings per common share  |                                   | $ | 2,224,323    |           |               |  | 4,395,058        |           |  | $ | .51  |    
|                                         
|                                         
|                                         
|                                         
|                                          | Effect of dilutive stock options |                                   |   |             |           |               |  | 128,772          |           |  |   | (.02 | )  
|                                          |                                  |                                   |   |              |           |               |  |                  |           |  |   |      |    
|                                          |                                  | Diluted earnings per common share |   | $            | 2,224,323 |               |  |                  | 4,523,830 |  |   | $    | .49 | 
|                                          |                                  |                                   |   |              |           |               |  |                  |           |  |   |     
|For the three months ended June 30, 2001: |                                  |                                   |   |              |           |               |  |                  |           |  |   |     
|                                         
|                                         
|                                         
|                                         
|                                          | Basic earnings per common share  |                                   | $ | 912,056      |           |               |  | 3,915,870        |           |  | $ | .23  |    
|                                         
|                                         
|                                         
|                                         
|                                          | Effect of dilutive stock options |                                   |   |             |           |               |  | 205,796          |           |  |   | (.01 | )  
|                                          |                                  |                                   |   |              |           |               |  |                  |           |  |   |     
|                                          |                                  | Diluted earnings per common share |   | $            | 912,056   |               |  |                  | 4,121,666 |  |   | $    | .22 | 
|                                          |                                  |                                   |   |              |           |               |  |                  |           |  |   |     
|For the three months ended June 30, 2000: |                                  |                                   |   |              |           |               |  |                  |           |  |   |     
|                                         
|                                         
|                                         
|                                         
|                                          | Basic earnings per common share  |                                   | $ | 1,174,412    |           |               |  | 4,398,030        |           |  | $ | .27  |    
|                                         
|                                         
|                                         
|                                         
|                                          | Effect of dilutive stock options |                                   |   |             |           |               |  | 124,091          |           |  |   | (.01 | )  
|                                          |                                  |                                   |   |              |           |               |  |                  |           |  |   |      |    
|                                          |                                  | Diluted earnings per common share |   | $            | 1,174,412 |               |  |                  | 4,522,121 |  |   | $    | .26 | 
|                                          |                                  |                                   |   |              |           |               |  |                  |           |  |   |     

NOTE 6  STOCK BASED COMPENSATION

Under the Banks 1994 Incentive Stock Option and Nonstatutory Stock Option Plan
(the Plan), the Company may grant stock options to persons who are now or who
during the term of the Plan become directors, officers, or key executives as
defined by the Plan. Stock options granted under the Plan may either be
incentive stock options or nonqualified stock options for federal income tax
purposes. The Companys Board of Directors may

7



---



grant nonqualified stock options to any director, and incentive stock options
or nonqualified stock options to any officer, key executive, administrative, or
other employee including an employee who is a director of the Company. Subject
to the provisions of the Plan, the maximum number of shares of Company common
stock that may be optioned or sold is 978,000 shares. Such shares may be
treasury, or authorized but unissued, shares of common stock of the Company.
If options granted under the Plan expire or terminate for any reason without
having been exercised in full, the shares not purchased shall again be
available for option for the purposes of the Plan.

Total options granted, exercised, and expired during the six months ended June
30, 2001 were 56,002, 25,750 and 3,100, respectively. As of June 30, 2001,
631,702 options for shares were outstanding.

NOTE 7  NEW ACCOUNTING PRONOUNCEMENTS

In June 1998, the Financial Accounting Standards Board issued SFAS 133,
Accounting for Derivative Instruments and Hedging Activities. SFAS 133
requires companies to recognize all derivatives contracts as either assets or
liabilities in the balance sheet and to measure them at fair value. If certain
conditions are met, a derivative may be specifically designated as a hedge, the
objective of which is to match the timing of gain or loss recognition on the
hedging derivative with the recognition of (i) the changes in the fair value of
the hedged asset or liability that are attributable to the hedged risk or (ii)
the earnings effect of the hedged forecasted transaction. For a derivative not
designated as a hedging instrument, the gain or loss is recognized in income in
the period of change. SFAS 133 is effective for all fiscal quarters of fiscal
years beginning after June 15, 2000 (as amended by SFAS 137 and 138), however,
early adoption was allowed. Historically, the Company has not entered into
derivatives contracts either to hedge existing risks or for speculative
purposes. The Company adopted the new standard as of July 1, 1998. The effect
on the financial statements at July 1, 1998 which resulted from the transfer of
approximately $11.9 million in investment securities from the held to maturity
category to the available for sale category was an increase in other
comprehensive income market valuation reserve of approximately $176,000.

In October 2000, the FASB issued SFAS No. 140, Accounting for Transfers and
Servicing of Financial Assets and Extinguishments of Liabilities, a
replacement of SFAS No. 125. The new statement revises accounting criteria for
securitizations, other financial asset transfers, and collateral and introduces
new disclosures, but otherwise carries forward most of SFAS No. 125s
provisions without amendment. The statement is effective for reporting periods
beginning after March 31, 2001, and the disclosure provisions are effective for
fiscal years ending after December 15, 2000. The adoption of SFAS 140 has not
had a significant impact on the Companys consolidated financial statements.

In July 2001, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standard (SFAS) No. 141, Business Combinations and SFAS
No.142, Goodwill and Other Intangible Assets. SFAS No. 141 addresses the
initial recognition and measurement of goodwill and other intangible assets
acquired in a business combination and SFAS No. 142 addresses the initial
recognition and measurement of intangible assets acquired outside of a business
combination whether acquired individually or with a group of other assets.
These standards require all future business combinations to be accounted for
using the purchase method of accounting. Goodwill will no longer be amortized
but instead will be subject to impairment tests at least annually. The Company
is required to adopt SFAS No. 141 and 142 on a prospective basis as of January
1, 2002, however, certain provisions of these new Standards may also apply to
any acquisitions concluded subsequent to June 30, 2001. As a result of
implementing these new Standards, it is expected that the amortization of
goodwill will cease as of December 31, 2001. It is expected that the
elimination of goodwill amortization will result in a $0.03 increase in diluted
earnings per share in 2002.

NOTE 8  SEGMENT REPORTING

TIB Financial Corp. has four reportable segments: community banking, merchant
bankcard processing, insurance sales, and government guaranteed loan sales and
servicing. The community banking segments business is to

8



---



attract deposits from the public and to use such deposits to make real estate,
business and consumer loans in its primary service area. The merchant bankcard
processing segment processes credit card transactions for local merchants. The
insurance agency offers a full line of commercial and residential coverage as
well as life, health and annuities. The government guaranteed loan segment
originates and sells the government guaranteed portion of loans that qualify
for government guaranteed loan programs, such as those offered by the Small
Business Administration and the U.S. Department of Agricultural Rural
Development Business and Industry Program.

Segment information is presented in accordance with SFAS 131, Disclosures about
Segments of an Enterprise and Related Information. This standard is based on a
management approach, which requires segmentation based upon the companys
internal organization and disclosure of operating results based upon internal
accounting methods.

The results of the Companys segments are as follows:

|                                                                                  |  |           |             |            |  |               |           |            |  |           |         |        |  |   |           |   |  |   |            |     |  |   |             |  
|--------------------------------------------------------------------------------- |  | --------- | ----------- | ---------- |  | ------------- | --------- | ---------- |  | --------- | ------- | ------ |  | - | --------- | - |  | - | ---------- | --- |  | - | ----------- | -
|                                                                                  |  |           |             |            |  |               |           | Government |  |           |         |        |  |   |           |   |  |  
|                                                                                  |  |           |             |            |  | Merchant      |           | Guaranteed |  | Insurance |         |        |  |   |           |   |  |  
|Six months ended                                                                  |  | Community |             | Bankcard   |  | Loans Sales   |           | Agency     |  | All       |         |        |  |  
|June 30, 2001                                                                     |  | Banking   |             | Processing |  | and Servicing |           | Sales      |  | Other     |         | Totals
|                                                                                  |  |           |             |            |  |               |           |            |  |           |         |       
|Interest income                                                                   |  | $         | 17,455,634  |            |  | $             |          |            |  | $         |        |        |  | $ |          |   |  | $ | 33,616     |     |  | $ | 17,489,250  |  
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Interest expense                                                                  |  |           | 8,048,046   |            |  |               |          |            |  |           |        |        |  |   |          |   |  |   | 775,284    | (a) |  |   | 8,823,330   |  
|                                                                                  |  |           |             |            |  |               |           |            |  |           |         |        |  |   |           |   |  |   |            |     |  |   |             |  
|Net interest income                                                               |  |           | 9,407,588   |            |  |               |          |            |  |           |        |        |  |   |          |   |  |   | (741,668   | )   |  |   | 8,665,920   |  
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Other income                                                                      |  |           | 2,221,633   |            |  |               | 2,333,277 |            |  |           | 93,826  |        |  |   | 721,330   |   |  |   |           |     |  |   | 5,370,066   |  
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Equity in income (loss),
net of goodwill
amortization, from
investment in ERAS JV |  |           |            |            |  |               |          |            |  |           |        |        |  |   |          |   |  |   | (96,765    | )   |  |   | (96,765     | )
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Depreciation and
amortization                                                     |  |           | 616,460     |            |  |               | 21,087    |            |  |           | 7,926   |        |  |   | 19,027    |   |  |   | 2,373      |     |  |   | 666,873     |  
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Other expense                                                                     |  |           | 7,564,834   |            |  |               | 1,936,218 |            |  |           | 143,000 |        |  |   | 739,906   |   |  |   | 217,629    |     |  |   | 10,601,587  |  
|                                                                                  |  |           |             |            |  |               |           |            |  |           |         |        |  |   |           |   |  |   |            |     |  |   |             |  
|Pretax segment profit (loss)                                                      |  | $         | 3,447,927   |            |  | $             | 375,972   |            |  | $         | (57,100 | )      |  | $ | (37,603   | ) |  | $ | (1,058,435 | )   |  | $ | 2,670,761   |  
|                                                                                  |  |           |             |            |  |               |           |            |  |           |         |        |  |   |           |   |  |   |            |     |  |   |             |  
|Segment assets                                                                    |  | $         | 479,618,015 |            |  | $             | 87,707    |            |  | $         | 181,770 |        |  | $ | 2,383,026 |   |  | $ | 1,845,647  |     |  | $ | 484,116,165 |  
|                                                                                  |  |           |             |            |  |               |           |            |  |           |         |        |  |   |           |   |  |   |            |     |  |   |             |  

9



---



|                                                                                  |  |           |             |            |  |               |           |            |  |           |         |        |  |   |   |  |  |   |           |   |  |   |             | 
|--------------------------------------------------------------------------------- |  | --------- | ----------- | ---------- |  | ------------- | --------- | ---------- |  | --------- | ------- | ------ |  | - | - |  |  | - | --------- | - |  | - | ----------- | 
|                                                                                  |  |           |             |            |  |               |           | Government |  |           |         |        |  |   |   |  |  |  
|                                                                                  |  |           |             |            |  | Merchant      |           | Guaranteed |  | Insurance |         |        |  |   |   |  |  |  
|Six months ended                                                                  |  | Community |             | Bankcard   |  | Loans Sales   |           | Agency     |  | All       |         |        |  |  
|June 30, 2000                                                                     |  | Banking   |             | Processing |  | and Servicing |           | Sales      |  | Other     |         | Totals
|                                                                                  |  |           |             |            |  |               |           |            |  |           |         |       
|Interest income                                                                   |  | $         | 15,356,656  |            |  | $             |          |            |  | $         |        |        |  | $ |  |  |  | $ | 47,151    |   |  | $ | 15,403,807  | 
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Interest expense                                                                  |  |           | 6,448,650   |            |  |               |          |            |  |           |        |        |  |   |  |  |  |   | 11,500    |   |  |   | 6,460,150   | 
|                                                                                  |  |           |             |            |  |               |           |            |  |           |         |        |  |   |   |  |  |   |           |   |  |   |             | 
|Net interest income                                                               |  |           | 8,908,006   |            |  |               |          |            |  |           |        |        |  |   |  |  |  |   | 35,651    |   |  |   | 8,943,657   | 
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Other income                                                                      |  |           | 1,462,529   |            |  |               | 2,074,620 |            |  |           | 246,909 |        |  |   |  |  |  |   | 146,662   |   |  |   | 3,930,720   | 
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Equity in income (loss),
net of goodwill
amortization, from
investment in ERAS JV |  |           |            |            |  |               |          |            |  |           |        |        |  |   |  |  |  |   | 25,070    |   |  |   | 25,070      | 
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Depreciation and
amortization                                                     |  |           | 574,765     |            |  |               | 26,970    |            |  |           | 7,828   |        |  |   |  |  |  |   | 1,925     |   |  |   | 611,488     | 
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Other expense                                                                     |  |           | 6,654,577   |            |  |               | 1,696,985 |            |  |           | 135,983 |        |  |   |  |  |  |   | 274,091   |   |  |   | 8,761,636   | 
|                                                                                  |  |           |             |            |  |               |           |            |  |           |         |        |  |   |   |  |  |   |           |   |  |   |             | 
|Pretax segment profit (loss)                                                      |  | $         | 3,141,193   |            |  | $             | 350,665   |            |  | $         | 103,098 |        |  |   |  |  |  | $ | (68,633   | ) |  | $ | 3,526,323   | 
|                                                                                  |  |           |             |            |  |               |           |            |  |           |         |        |  |   |   |  |  |   |           |   |  |   |             | 
|Segment assets                                                                    |  | $         | 405,039,443 |            |  | $             | 121,965   |            |  | $         | 208,252 |        |  |   |  |  |  | $ | 1,005,727 |   |  | $ | 406,375,387 | 
|                                                                                  |  |           |             |            |  |               |           |            |  |           |         |        |  |   |   |  |  |   |           |   |  |   |             | 

|                                                                                  |  |           |           |            |  |               |           |            |  |           |         |        |  |   |         |   |  |   |          |   |  |   |           |  
|--------------------------------------------------------------------------------- |  | --------- | --------- | ---------- |  | ------------- | --------- | ---------- |  | --------- | ------- | ------ |  | - | ------- | - |  | - | -------- | - |  | - | --------- | -
|                                                                                  |  |           |           |            |  |               |           | Government |  |           |         |        |  |   |         |   |  |  
|                                                                                  |  |           |           |            |  | Merchant      |           | Guaranteed |  | Insurance |         |        |  |   |         |   |  |  
|Three months ended                                                                |  | Community |           | Bankcard   |  | Loans Sales   |           | Agency     |  | All       |         |        |  |  
|June 30, 2001                                                                     |  | Banking   |           | Processing |  | and Servicing |           | Sales      |  | Other     |         | Totals
|                                                                                  |  |           |           |            |  |               |           |            |  |           |         |       
|Interest income                                                                   |  | $         | 8,685,200 |            |  | $             |          |            |  | $         |        |        |  | $ |        |   |  | $ | 16,734   |   |  | $ | 8,701,934 |  
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Interest expense                                                                  |  |           | 3,864,608 |            |  |               |          |            |  |           |        |        |  |   |        |   |  |   | 387,988  |   |  |   | 4,252,596 |  
|                                                                                  |  |           |           |            |  |               |           |            |  |           |         |        |  |   |         |   |  |   |          |   |  |   |           |  
|Net interest income                                                               |  |           | 4,820,592 |            |  |               |          |            |  |           |        |        |  |   |        |   |  |   | (371,254 | ) |  |   | 4,449,338 |  
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Other income                                                                      |  |           | 1,151,263 |            |  |               | 1,085,982 |            |  |           | 61,571  |        |  |   | 402,132 |   |  |   |         |   |  |   | 2,700,948 |  
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Equity in income (loss),
net of goodwill
amortization, from
investment in ERAS JV |  |           |          |            |  |               |          |            |  |           |        |        |  |   |        |   |  |   | (52,839  | ) |  |   | (52,839   | )
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Depreciation and
amortization                                                     |  |           | 314,993   |            |  |               | 10,606    |            |  |           | 4,041   |        |  |   | 11,548  |   |  |   | 1,186    |   |  |   | 342,374   |  
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Other expense                                                                     |  |           | 3,854,781 |            |  |               | 910,508   |            |  |           | 75,246  |        |  |   | 390,816 |   |  |   | 121,166  |   |  |   | 5,352,517 |  
|                                                                                  |  |           |           |            |  |               |           |            |  |           |         |        |  |   |         |   |  |   |          |   |  |   |           |  
|Pretax segment profit (loss)                                                      |  | $         | 1,802,081 |            |  | $             | 164,868   |            |  | $         | (17,716 | )      |  | $ | (232    | ) |  | $ | (546,445 | ) |  | $ | 1,402,556 |  
|                                                                                  |  |           |           |            |  |               |           |            |  |           |         |        |  |   |         |   |  |   |          |   |  |   |           |  

10



---



|                                                                                  |  |           |           |            |  |               |         |            |  |           |         |        |  |   |   |  |  |   |         |   |  |   |           |  
|--------------------------------------------------------------------------------- |  | --------- | --------- | ---------- |  | ------------- | ------- | ---------- |  | --------- | ------- | ------ |  | - | - |  |  | - | ------- | - |  | - | --------- | -
|                                                                                  |  |           |           |            |  |               |         | Government |  |           |         |        |  |   |   |  |  |  
|                                                                                  |  |           |           |            |  | Merchant      |         | Guaranteed |  | Insurance |         |        |  |   |   |  |  |  
|Three months ended                                                                |  | Community |           | Bankcard   |  | Loans Sales   |         | Agency     |  | All       |         |        |  |  
|June 30, 2000                                                                     |  | Banking   |           | Processing |  | and Servicing |         | Sales      |  | Other     |         | Totals
|                                                                                  |  |           |           |            |  |               |         |            |  |           |         |       
|Interest income                                                                   |  | $         | 7,879,331 |            |  | $             |        |            |  | $         |        |        |  | $ |  |  |  | $ | 23,575  |   |  | $ | 7,902,906 |  
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Interest expense                                                                  |  |           | 3,350,774 |            |  |               |        |            |  |           |        |        |  |   |  |  |  |   | 1,203   |   |  |   | 3,351,977 |  
|                                                                                  |  |           |           |            |  |               |         |            |  |           |         |        |  |   |   |  |  |   |         |   |  |   |           |  
|Net interest income                                                               |  |           | 4,528,557 |            |  |               |        |            |  |           |        |        |  |   |  |  |  |   | 22,372  |   |  |   | 4,550,929 |  
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Other income                                                                      |  |           | 757,604   |            |  |               | 980,337 |            |  |           | 215,668 |        |  |   |  |  |  |   | 78,143  |   |  |   | 2,031,752 |  
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Equity in income (loss),
net of goodwill
amortization, from
investment in ERAS JV |  |           |          |            |  |               |        |            |  |           |        |        |  |   |  |  |  |   | (7,463  | ) |  |   | (7,463    | )
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Depreciation and
amortization                                                     |  |           | 286,667   |            |  |               | 13,485  |            |  |           | 3,914   |        |  |   |  |  |  |   | 1,013   |   |  |   | 305,079   |  
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Other expense                                                                     |  |           | 3,351,074 |            |  |               | 818,740 |            |  |           | 81,699  |        |  |   |  |  |  |   | 166,614 |   |  |   | 4,418,127 |  
|                                                                                  |  |           |           |            |  |               |         |            |  |           |         |        |  |   |   |  |  |   |         |   |  |   |           |  
|Pretax segment profit (loss)                                                      |  | $         | 1,648,420 |            |  | $             | 148,112 |            |  | $         | 130,055 |        |  | $ |  |  |  | $ | (74,575 | ) |  | $ | 1,852,012 |  
|                                                                                  |  |           |           |            |  |               |         |            |  |           |         |        |  |   |   |  |  |   |         |   |  |   |           |  

(a)  Interest expense primarily relates to $428,604 related to trust preferred
securities and $344,132 related to notes payable associated with majority
shareholder stock buyback, both of which qualify as capital.

NOTE 9. SUBSEQUENT EVENTS

In July 2001, the Company participated in a pooled offering of trust preferred
securities in the amount of $5 million. The Company formed TIBFL Statutory
Trust II (the Trust), a wholly-owned statutory trust subsidiary, for the
purpose of issuing the trust preferred securities. The trust used the proceeds
from the issuance of the trust preferred securities to acquire junior
subordinated notes of the Company. The trust preferred securities essentially
mirror the debt securities, carrying a cumulative preferred dividend at a
variable rate equal to the interest rate on the debt securities (three month
LIBOR plus 358 basis points). The initial rate in effect at the time of
issuance was 7.29% and is subject to change quarterly. The debt securities and
the trust preferred securities each have 30-year lives. The trust preferred
securities and the debt securities are callable by the Company or the Trust, at
their respective option after five years, and at varying premiums and sooner in
specific events, subject to prior approval by the Federal Reserve Board, if
then required. For federal regulatory purposes, the Company plans to treat the
trust preferred securities as Tier 1 capital up to the maximum amount allowed,
and the remainder as Tier 2 capital.

In July 2001, the bank opened its first banking facility in Southwest Florida
in Naples. This facility will primarily be used for business banking and
commercial and government lending functions. This facility is leased under an
operating lease.

Subject to receipt of regulatory approval, the Bank plans to open its Southwest Florida area branch headquarters
in downtown Naples in 2002. The land for this facility was purchased in the first
quarter of 2001 at a cost of $2.3 million and is included in premises and
equipment. Estimated costs to complete the project are $768,000.

MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion addresses the factors that have affected the financial
condition and results of operations of TIB Financial Corp. (the Company) as
reflected in the unaudited consolidated statement of condition as of June 30,
2001, and statement of income for the three and six months ended June 30, 2001.

The Companys net income of $912,056 for the second quarter of 2001 was a 22.3%
decrease compared to $1,174,412 for the same period last year. The decrease in
net income is attributed to a decrease of $101,591 or 2.2%, in net interest
income; an increase of $623,820, or 30.8%, in other income; an increase in
other expense of $971,685, or 21.2%; and a decrease in income tax expense of
$187,100 or 27.6%.

Net income for the six months ended June 30, 2001 was $1,739,261 down 21.8%
from $2,224,323 for the comparable period in 2000.

Basic and diluted earnings per share for the second quarter of 2001 were $0.23
and $0.22 respectively as compared to $0.27 and $0.26 per share in the previous
years quarter. Basic and diluted earnings per share for the six months ended
June 30, 2001 were $0.44 and $0.43 respectively, compared to $0.51 and $0.49
for the corresponding period ended June 30, 2000. The percentage decrease in
diluted earnings per share is less than the percentage decrease in net income
due to the stock repurchase effected on July 1, 2000. For the first six months
of 2001, interest expense of $344,132 was incurred on the note payable related
to the July 1st buy back of approximately 10% of the Companys outstanding
stock from the Companys largest shareholder. The net effect of this
transaction was to decrease net income by $215,000 in the first six months of
2001 versus the first six months of 2000. However, the effect of this
transaction did not reduce earnings per share due to the smaller number of
shares outstanding.

An additional $428,604 of interest expense incurred in the first six months of
2001 relates to the trust preferred securities issued in the third quarter of
2000. The trust preferred securities issuance supplied capital for growth and
acquisitions. It is the Companys intention to grow its traditional banking
business in its existing markets and also new markets and to acquire and
promote new products and services.

Other items occurring in the first six months of 2001 that were absent in the
year ago period were costs related to two branches purchased in South
Miami-Dade County in December of 2000 and expenses to prepare for upcoming de
novo branching in Southwest Florida and operating expenses for Keys
Insurance Agency purchased on October 31, 2000. The Company also recorded a $96,765 loss
from its investment in the ERAS Joint Venture. This loss is due in part to
expansion activities in the Tampa area which occurred in the first half of
2001.

11



---



Book value per share increased to $6.96 at June 30, 2001 from $6.72 at December
31, 2000. The Company paid a quarterly dividend of $0.1075 per share in both
the first quarter and second quarter of 2001, as compared to $0.105 per share
in both the first and second quarter of 2000.

Performance of banks is often measured by various ratio analyses. Two widely
recognized indicators are return on average equity and return on average
assets. Annualized return on average equity for the six months ended June 30,
2001 was 12.9% on average equity of $26,926,000, compared to 15.3% on average
equity of $29,027,000 for the same period in 2000. Annualized return on
average assets of $470,038,000 for the six months ended June 30, 2001 was
0.74%, compared to 1.12% on average assets of $396,392,000 for the same period
in 2000.

Net interest income is one measurement of how management has balanced the
Companys interest rate sensitive assets and liabilities. The Companys net
interest income is its principal source of income. Interest earning assets for
the Company include loans, federal funds sold, and investment securities. The
Companys interest-bearing liabilities include its deposits, federal funds
purchased, notes payable related to Company shares repurchased, trust preferred
securities, and other short-term borrowings. Net interest income decreased
$277,737 or 3.1% to $8.7 million, in the six months ended June 30, 2001 as
compared to the same period last year. $772,736 of this decrease was a result
of interest expense related to the $8 million in trust preferred securities and
the $5.25 million in notes payable, both of which were issued in the third
quarter of 2000, and this decrease was partially offset by an increase in
interest income resulting from a higher level of earning assets. Interest
from loans increased approximately $1,291,000 to $14.7 million for the first
six months of 2001 compared to the prior year period. Interest income from
investment securities and federal funds sold increased approximately $795,000.
These interest income increases were further offset by an increase in deposit
interest expense and short term borrowing interest expense approximating
$1,590,000.

The Companys net interest margin decreased to 4.16% in the first six months of
2001 compared to 4.99% in the first six months of 2000. The following table
sets forth information with respect to the average balances, interest income
and average yield by major categories of assets; the average balances, interest
expense and average rate by major categories of liabilities; the average
balances of noninterest-earning assets, noninterest-bearing liabilities and
stockholders equity; and net interest income, interest rate spread, and net
interest margin for the six months ended June 30, 2001 and June 30, 2000.

|                                  |                             |                    |                                          |         |         |         |         |          |        |         |         |       |         |      |         |        |       |         |        |  |     |        |      |   |      |      |  
|--------------------------------- | --------------------------- | ------------------ | ---------------------------------------- | ------- | ------- | ------- | ------- | -------- | ------ | ------- | ------- | ----- | ------- | ---- | ------- | ------ | ----- | ------- | ------ |  | --- | ------ | ---- | - | ---- | ---- | -
|                                  |                             |                    |                                          |         |         |         |         |          | 2001   |         |         |       |         |      |         |        |       |         | 2000  
|                                  |                             |                    |                                          |         |         |         |         |          |        |         |         |       |         |      |         |        |       |         |       
|                                  |                             |                    |                                          |         | AVERAGE |         | INCOME/ |          | YIELDS |         | AVERAGE |       | INCOME/ |      | YIELDS 
|(Dollars in thousands)            |                             | BALANCES           |                                          | EXPENSE |         | RATES   |         | BALANCES |        | EXPENSE |         | RATES |        
|                                  |                             |                    |                                          |         |         |         |         |          |        |         |         |       |        
|                                  | Interest-earning assets:    |                    |                                          |         |         |         |         |          |        |         |         |       |         |      |         |        |       |         |        |  |     |        |      |   |     
|                                 
|                                 
|                                 
|                                 
|                                  |                             |                    | Loans (1)                                |         | $       | 327,767 |         |          |        | 14,708  |         |       |         | 9.05 | %       |        | $     | 297,807 |        |  |     | 13,417 |      |   |      | 9.06 | %
|                                 
|                                 
|                                 
|                                 
|                                  |                             |                    | Investment securities  taxable          |         |         | 59,315  |         |          |        | 1,898   |         |       |         | 6.45 | %       |        |       | 52,421  |        |  |     | 1,602  |      |   |      | 6.14 | %
|                                 
|                                 
|                                 
|                                 
|                                  |                             |                    | Investment securities  tax exempt (2)   |         |         | 5,738   |         |          |        | 208     |         |       |         | 7.30 | %       |        |       | 6,728   |        |  |     | 263    |      |   |      | 7.87 | %
|                                 
|                                 
|                                 
|                                 
|                                  |                             |                    | Interest bearing deposits in other banks |         |         | 54      |         |          |        | 2       |         |       |         | 6.28 | %       |        |       | 71      |        |  |     | 2      |      |   |      | 7.00 | %
|                                 
|                                 
|                                 
|                                 
|                                  |                             | Federal funds sold |                                          |         | 30,955  |         |         |          | 744    |         |         |       | 4.85    | %    |         |        | 7,012 |         |        |  | 209 |        |      |   | 5.98 | %   
|                                  |                             |                    |                                          |         |         |         |         |          |        |         |         |       |         |      |         |        |       |         |        |  |     |        |      |  
|Total interest-earning assets     |                             |                    | 423,829                                  |         |         |         | 17,560  |          |        |         | 8.35    | %     |         |      | 364,039 |        |       |         | 15,493 |  |     |        | 8.56 | %
|                                  |                             |                    |                                          |         |         |         |         |          |        |         |         |       |         |      |         |        |       |         |        |  |     |        |      |  
|Non-interest-earning assets:      |                             |                    |                                          |         |         |         |         |          |        |         |         |       |         |      |         |        |       |         |        |  |     |        |      |  
|                                 
|                                 
|                                 
|                                 
|                                  | Cash and due from banks     |                    |                                          | 12,522  |         |         |         |          |        |         |         |       |         |      |         | 13,473 |       |         |        |  |     |        |      |   |     
|                                 
|                                 
|                                 
|                                 
|                                  | Investment in ERAS          |                    |                                          | 965     |         |         |         |          |        |         |         |       |         |      |         | 985    |       |         |        |  |     |        |      |   |     
|                                 
|                                 
|                                 
|                                 
|                                  | Premises and equipment, net |                    |                                          | 16,110  |         |         |         |          |        |         |         |       |         |      |         | 14,200 |       |         |        |  |     |        |      |   |     
|                                 
|                                 
|                                 
|                                 
|                                  | Allowances for loan losses  |                    |                                          | (3,226  | )       |         |         |          |        |         |         |       |         |      |         | (3,114 | )     |         |        |  |     |        |      |   |     
|                                 
|                                 
|                                 
|                                 
|                                  | Other assets                |                    |                                          | 19,838  |         |         |         |          |        |         |         |       |         |      |         | 6,809  |       |         |        |  |     |        |      |   |     
|                                  |                             |                    |                                          |         |         |         |         |          |        |         |         |       |         |      |         |        |       |         |        |  |     |        |      |  
|Total non-interest earning assets |                             |                    | 46,209                                   |         |         |         |         |          |        |         |         |       |         |      | 32,353  |        |       |         |        |  |     |        |      |  
|                                  |                             |                    |                                          |         |         |         |         |          |        |         |         |       |         |      |         |        |       |         |        |  |     |        |      |  
|Total assets                      |                             | $                  | 470,038                                  |         |         |         |         |          |        |         |         |       |         | $    | 396,392 |        |       |         |        |  |     |        |      |  
|                                  |                             |                    |                                          |         |         |         |         |          |        |         |         |       |         |      |         |        |       |         |        |  |     |        |      |  

12



---



|                                                                |                                     |                            |         |         |         |       |         |          |        |         |         |       |         |   |         |        |         |   |       |     |       |  |      |      |      |   | 
|--------------------------------------------------------------- | ----------------------------------- | -------------------------- | ------- | ------- | ------- | ----- | ------- | -------- | ------ | ------- | ------- | ----- | ------- | - | ------- | ------ | ------- | - | ----- | --- | ----- |  | ---- | ---- | ---- | - | 
|                                                                |                                     |                            |         |         |         |       |         |          | 2001   |         |         |       |         |   |         |        |         |   | 2000 
|                                                                |                                     |                            |         |         |         |       |         |          |        |         |         |       |         |   |         |        |         |   |      
|                                                                |                                     |                            |         |         | AVERAGE |       | INCOME/ |          | YIELDS |         | AVERAGE |       | INCOME/ |   | YIELDS 
|(Dollars in thousands)                                          |                                     | BALANCES                   |         | EXPENSE |         | RATES |         | BALANCES |        | EXPENSE |         | RATES |        
|                                                                |                                     |                            |         |         |         |       |         |          |        |         |         |       |        
|                                                                | Interest-bearing liabilities:       |                            |         |         |         |       |         |          |        |         |         |       |         |   |         |        |         |   |       |     |       |  |      |      |     
|                                                               
|                                                               
|                                                               
|                                                               
|                                                                |                                     | Interest bearing deposits: |         |         |         |       |         |          |        |         |         |       |         |   |         |        |         |   |       |     |       |  |      |      |      |  
|                                                               
|                                                               
|                                                               
|                                                               
|                                                                |                                     | NOW accounts               |         | $       | 41,539  |       |         |          | 291    |         |         |       | 1.41    | % |         | $      | 35,873  |   |       |     | 249   |  |      |      | 1.39 | %
|                                                               
|                                                               
|                                                               
|                                                               
|                                                                |                                     | Money market               |         |         | 123,959 |       |         |          | 2,894  |         |         |       | 4.71    | % |         |        | 112,263 |   |       |     | 2,769 |  |      |      | 4.96 | %
|                                                               
|                                                               
|                                                               
|                                                               
|                                                                |                                     | Savings deposits           |         |         | 23,849  |       |         |          | 253    |         |         |       | 2.14    | % |         |        | 23,645  |   |       |     | 272   |  |      |      | 2.32 | %
|                                                               
|                                                               
|                                                               
|                                                               
|                                                                |                                     | Other time deposits        |         |         | 149,564 |       |         |          | 4,584  |         |         |       | 6.18    | % |         |        | 106,941 |   |       |     | 3,021 |  |      |      | 5.68 | %
|                                                                |                                     |                            |         |         |         |       |         |          |        |         |         |       |         |   |         |        |         |   |       |     |       |  |      |     
|Total interest-bearing deposits                                 |                                     |                            | 338,911 |         |         |       | 8,022   |          |        |         | 4.77    | %     |         |   | 278,722 |        |         |   | 6,311 |     |       |  | 4.55 | %   
|                                                               
|                                                               
|                                                               
|                                                               
|                                                                | Other interest-bearing liabilities: |                            |         |         |         |       |         |          |        |         |         |       |         |   |         |        |         |   |       |     |       |  |      |      |     
|                                                               
|                                                               
|                                                               
|                                                               
|                                                                | Notes payable                       |                            |         | 5,250   |         |       |         | 344      |        |         |         | 13.22 | %       |   |         |       |         |   |       |    |       |  |      |     |     
|                                                               
|                                                               
|                                                               
|                                                               
|                                                                | Short-term borrowings               |                            |         | 1,106   |         |       |         | 29       |        |         |         | 5.22  | %       |   |         | 4,688  |         |   |       | 149 |       |  |      | 6.42 | %   
|                                                               
|                                                               
|                                                               
|                                                               
|                                                                | Trust preferred securities          |                            |         | 8,000   |         |       |         | 428      |        |         |         | 10.80 | %       |   |         |       |         |   |       |    |       |  |      |     |     
|                                                                |                                     |                            |         |         |         |       |         |          |        |         |         |       |         |   |         |        |         |   |       |     |       |  |      |     
|Total interest-bearing liabilities                              |                                     |                            | 353,267 |         |         |       | 8,823   |          |        |         | 5.04    | %     |         |   | 283,410 |        |         |   | 6,460 |     |       |  | 4.58 | %   
|                                                                |                                     |                            |         |         |         |       |         |          |        |         |         |       |         |   |         |        |         |   |       |     |       |  |      |     
|Non-interest bearing liabilities and
stockholders equity:      |                                     |                            |         |         |         |       |         |          |        |         |         |       |         |   |         |        |         |   |       |     |       |  |      |     
|                                                               
|                                                               
|                                                               
|                                                               
|                                                                | Demand deposits                     |                            |         | 82,836  |         |       |         |          |        |         |         |       |         |   |         | 79,762 |         |   |       |     |       |  |      |      |     
|                                                               
|                                                               
|                                                               
|                                                               
|                                                                | Other liabilities                   |                            |         | 7,009   |         |       |         |          |        |         |         |       |         |   |         | 4,193  |         |   |       |     |       |  |      |      |     
|                                                               
|                                                               
|                                                               
|                                                               
|                                                                | Stockholders equity                |                            |         | 26,926  |         |       |         |          |        |         |         |       |         |   |         | 29,027 |         |   |       |     |       |  |      |      |     
|                                                                |                                     |                            |         |         |         |       |         |          |        |         |         |       |         |   |         |        |         |   |       |     |       |  |      |     
|Total non-interest bearing liabilities and
stockholders equity |                                     |                            | 116,771 |         |         |       |         |          |        |         |         |       |         |   | 112,982 |        |         |   |       |     |       |  |      |     
|                                                                |                                     |                            |         |         |         |       |         |          |        |         |         |       |         |   |         |        |         |   |       |     |       |  |      |     
|Total liabilities and stockholders equity                      |                                     | $                          | 470,038 |         |         |       |         |          |        |         |         |       |         | $ | 396,392 |        |         |   |       |     |       |  |      |     
|                                                                |                                     |                            |         |         |         |       |         |          |        |         |         |       |         |   |         |        |         |   |       |     |       |  |      |     
|Interest rate spread                                            |                                     |                            |         |         |         |       |         |          |        |         | 3.31    | %     |         |   |         |        |         |   |       |     |       |  | 3.98 | %   
|                                                                |                                     |                            |         |         |         |       |         |          |        |         |         |       |         |   |         |        |         |   |       |     |       |  |      |     
|Net interest income                                             |                                     |                            |         |         |         | $     | 8,737   |          |        |         |         |       |         |   |         |        |         | $ | 9,033 |     |       |  |      |     
|                                                                |                                     |                            |         |         |         |       |         |          |        |         |         |       |         |   |         |        |         |   |       |     |       |  |      |     
|Net interest margin (3)                                         |                                     |                            |         |         |         |       |         |          |        |         | 4.16    | %     |         |   |         |        |         |   |       |     |       |  | 4.99 | %   
|                                                                |                                     |                            |         |         |         |       |         |          |        |         |         |       |         |   |         |        |         |   |       |     |       |  |      |     



|(1) |  | Average loans include non-performing loans.                                                                                                                                                                
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|   
|   
|   
|(2) |  | Interest income and rates include the effects of a tax equivalent
adjustment using a Federal tax rate of 34% in adjusting tax exempt
interest on tax exempt investment securities to a fully taxable basis.
|   
|   
|   
|   
|(3) |  | Net interest margin is net interest income divided by average total
interest-earning assets.                                                                                                               

The decrease in net interest margin from June 30, 2000 to June 30, 2001 is the
result of several factors. The decrease is partially attributable to the
interest cost from the notes given in exchange for the stock repurchase and the
issuance of trust preferred securities, which is partially offset by
an increase in interest income resulting from a higher level of
earning assets. Both of these transactions occurred
during the third quarter of 2000 and resulted in an increase in the overall
rate for interest-bearing liabilities in 2001. In addition, the Company had
increased liquidity during the first six months of 2001 as compared to the
prior year primarily as a result of the overall volatility in the stock market
during 2001. This resulted in the increase in federal funds sold from $7.0
million to $30.1 million. Federal funds are the Companys lowest rate earning
asset, and the increase in the volume of federal funds combined with the
decrease in rate earned on these assets and the cost of these funds,
contributed to the decrease in the net interest margin. In addition, the
average balance of time deposits increased to $150 million during the first six
months of 2001, as compared to $107 million during the comparable prior year
period. Rates on these time deposit liabilities also increased from 5.68% to
6.18%, reflecting the Companys stance in being aggressive in their rates in
an attempt to increase market share.

Based on managements evaluation of specific loans and inherent losses within
the loan portfolio, the provision for loan losses was $270,000 in both the six
months of 2001 and 2000. Gross charged off loans for the first six months of
2001 were $375,547 with recoveries of $7,148, resulting in an annualized net
charge-off rate of 0.218% of total loans. This compares to net charge offs
during the same period last year of $8,792. Approximately $337,000 of the
current year charge-off relates to one specific loan. The amount charged off
relates to the balance remaining on this loan after application of the sale
proceeds from liquidation of the production equipment belonging to a
manufacturing company in Sarasota, Florida.

At June 30, 2001, the Company had aggregate non-accrual loans of $1,552,506
compared to $502,774 at December 31, 2000. This increase is attributable to
the addition of 8 loans to the non-accrual category, which total approximately
$1.1 million. Management does not anticipate that the Company will incur any
significant

13



---



loss with respect to these loans based upon a recent analysis of the assets
pledged as collateral for these loans and guarantees.

Loans past due 90 days or more and still accruing totaled $2,031,119 and
$2,013,790 at June 30, 2001 and December 31, 2000, respectively. The 90 day
past due amount is entirely attributable to the non-guaranteed portion of one
individual loan to construct a lumber mill in Northern Florida. The loan was
partially guaranteed as to principal and interest by the U.S. Department of
Agriculture (USDA). In addition to business real estate and equipment, the
loan is collateralized by the business owners interest in a trust. Under
provisions of the trust agreement, beneficiaries cannot receive trust assets
until November 2010. At June 30, 2001, the loan was past due greater than 90
days but is still maintained as an accruing loan because of the USDA guarantee.
Management believes the value of all assets pledged as collateral for this
loan exceeds the unpaid amount. The loan is in the process of foreclosure, and
no loss is anticipated. The ratio of non-performing loans (including loans 90
days or more past due and still accruing) to total outstanding loans was 1.04%
at June 30, 2001 compared to 0.80% at December 31, 2000.

Other income increased $1,317,511 to $5,273,301 for the six month period ended
June 30, 2001 from $3,955,790 in the comparable period last year. The increase
in non interest income is attributable to an increase of $258,657 in merchant
bankcard processing income; a $142,925 increase in service charges on deposit
accounts; a $1,866 increase in net investment security gains; a $721,330
increase in commissions on sales by Keys Insurance Agency (from $0 in the same
six month period of 2000); a $187,918 increase in other income; a $356,760
increase in fees on mortgage loans sold at origination; offset by a decrease of
$157,652 in gains on sale of government guaranteed loans; a $72,458 decrease in
retail investment services; and a $121,835 decrease in equity in income (loss),
net of goodwill amortization, from the investment in ERAS JV.

Other expense increased $1,895,336 or 20.8% to $10,998,460, in the first six
months of 2001 as compared to the prior year period. The major areas of
increased expenses relate to interchange fees and processing costs for merchant
bankcard transactions which increased approximately $239,000 over the prior
year period. These costs are volume driven and are more than offset by higher
revenues reported in Other Income. Keys Insurance Agency was added as a new
subsidiary to the Company in the fourth quarter of 2000, and increased the
Companys operating expenses by approximately $759,000 in the first six months
of 2001. Additional operating expenses of approximately $387,000 were also incurred in 2001 as a result of the
two new branches added in Homestead in the fourth quarter of 2000.
Expenses to prepare for upcoming de novo branching in Southwest
Florida totaled approximately $165,000 in 2001. Salary expense, not
counting these new areas, increased approximately $320,000 in 2001
due to volume related staffing needs and normal pay increases.

Total assets at June 30, 2001 were $484,116,165, up from total assets of
$439,320,145 at December 31, 2000. Loans net of deferred loan fees increased
$28,976,477 to $344,061,852 for the first six months of 2001 from year end
2000. Also, in the same period, federal funds sold increased $19,561,000, and
investment securities decreased $5,253,026.

At June 30, 2001, the Company had $1,694,536 in short-term borrowings compared
to $1,041,799 at December 31, 2000. Short-term borrowings consist of
securities sold under agreements to repurchase and Treasury tax deposits.

The Company entered into an agreement with the Companys largest shareholder
effective July 1, 2000, to purchase 525,000 shares of the Companys common
stock in exchange for four subordinated debt instruments of the Company
totaling $5,250,000. The interest rate on the notes is 13%, with interest
payments required quarterly. The principal balance is payable in full on
October 1, 2010, the maturity date of the notes. The notes can be prepaid by
the Company at par any time after July 1, 2003. The debt issued by the
Company qualifies as Tier 2 capital at the holding company level under
applicable regulatory capital guidelines.

On September 7, 2000, the Company participated in a pooled offering of trust
preferred securities in the amount of $8 million. The Company formed TIBFL
Statutory Trust I (the Trust), a wholly-owned statutory trust subsidiary, for
the purpose of issuing the trust preferred securities. The trust used the
proceeds from the issuance of the trust preferred securities to acquire junior
subordinated notes of the Company. The trust preferred securities essentially
mirror the debt securities, carrying a cumulative preferred dividend at a fixed
rate equal to the 10.6% interest rate on the debt securities. The debt
securities and the trust preferred securities each have 30-

14



---



year lives. The trust preferred securities and the debt securities are
callable by the Company or the Trust, at their respective option after ten
years, and at varying premiums and sooner in specific events, subject to prior
approval by the Federal Reserve Board, if then required. The Company has
treated the trust preferred securities as Tier 1 capital for federal regulatory
purposes.

The Company received notification from the Federal Reserve Bank that the
Companys election to become a financial holding company was approved effective
August 31, 2000. As a financial holding company, TIB may engage in activities
that are financial in nature or incidental to a financial activity.

On October 31, 2000, the Company purchased Keys Insurance Agency of Monroe
County, Inc. Keys Insurance Agency has three offices in the Keys and offers a
full line of commercial and residential coverage as well as life, health and
annuities. The purchase price for the agency was $2,200,000. This was
comprised of $220,000 in the Companys common stock, $1,650,000 in cash, and
$330,000 in cash to be paid over a three year period subject to the agencys
ability to achieve certain earning thresholds.

CAPITAL ADEQUACY

Federal banking regulators have established certain capital adequacy standards
required to be maintained by banks and bank holding companies. The minimum
requirements established in the regulations are set forth in the table below,
along with the actual ratios at June 30, 2001 and December 31, 2000:

|                                         |              |  |             |     |             |  |               |   |                   |  |  |      |   |  |  |      |  
|---------------------------------------- | ------------ |  | ----------- | --- | ----------- |  | ------------- | - | ----------------- |  |  | ---- | - |  |  | ---- | -
|                                         |              |  | Well        |     | Adequately  |  |               |   |                   |  |  |      |  
|                                         |              |  | Capitalized |     | Capitalized |  | June 30, 2001 |   | December 31, 2000
|                                         |              |  | Requirement |     | Requirement |  | Actual        |   | Actual           
|                                         |              |  |             |     |             |  |               |   |                  
|Tier 1 Capital (to Average Assets)       |              |  |             |     |             |  |               |   |                   |  |  |      |   |  |  |     
|                                        
|                                        
|                                        
|                                        
|                                         | Consolidated |  |             | >5  | %           |  |               | 4 | %                 |  |  | 6.4  | % |  |  | 7.1  | %
|                                        
|                                        
|                                        
|                                        
|                                         | Bank         |  |             | >5  | %           |  |               | 4 | %                 |  |  | 7.3  | % |  |  | 8.2  | %
|                                        
|                                        
|                                        
|                                        
|Tier 1 Capital (to Risk Weighted Assets) |              |  |             |     |             |  |               |   |                   |  |  |      |   |  |  |     
|                                        
|                                        
|                                        
|                                        
|                                         | Consolidated |  |             | >6  | %           |  |               | 4 | %                 |  |  | 8.5  | % |  |  | 9.0  | %
|                                        
|                                        
|                                        
|                                        
|                                         | Bank         |  |             | >6  | %           |  |               | 4 | %                 |  |  | 9.6  | % |  |  | 10.4 | %
|                                        
|                                        
|                                        
|                                        
|Total Capital (to Risk Weighted Assets)  |              |  |             |     |             |  |               |   |                   |  |  |      |   |  |  |     
|                                        
|                                        
|                                        
|                                        
|                                         | Consolidated |  |             | >10 | %           |  |               | 8 | %                 |  |  | 10.8 | % |  |  | 11.7 | %
|                                        
|                                        
|                                        
|                                        
|                                         | Bank         |  |             | >10 | %           |  |               | 8 | %                 |  |  | 10.5 | % |  |  | 11.4 | %

Management believes, as of June 30, 2001, that the Company and the Bank met all
capital requirements to which they are subject. As discussed previously in the
Managements Discussion and Analysis section, the Company has included in Tier
1 Capital $8 million in trust preferred securities that were issued in
September 2000.

LIQUIDITY

The goal of liquidity management is to ensure the availability of an adequate
level of funds to meet the loan demand and deposit withdrawal needs of the
Companys customers. The Company manages the levels, types and maturities of
earning assets in relation to the sources available to fund current and future
needs to ensure that adequate funding will be available at all times.

The Bank has invested in Federal Home Loan Bank stock for the purpose of
establishing credit lines with the Federal Home Loan Bank. The credit
availability to the Bank is equal to 14 percent of the Banks total assets as
reported on the most recent quarterly financial information submitted to the
regulators. The credit availability approximated $67.2 million at June 30,
2001. Any advances are secured by the Banks one-to-four family residential
mortgage loans.

15



---



The Bank has an unsecured line of credit for federal funds purchased from its
principal correspondent bank totaling $7,500,000. Securities sold under
agreements to repurchase (wholesale) represent a wholesale agreement with a
correspondent bank which is collateralized by a U.S. Treasury note. The Bank
also has several securities sold under repurchase agreements (retail) with
commercial account holders whereby the Bank sweeps the customers accounts on a
daily basis and pays interest on these amounts. These agreements are
collateralized by investment securities chosen by the Bank.

RATE SENSITIVITY

The Companys interest rate sensitivity position at June 30, 2001 is presented
in the table below.

|                                       |  |          |         |        |  |         |         |        |  |        |         |       |  |   |        |   |  |   |         |   |  |   |         |  
|-------------------------------------- |  | -------- | ------- | ------ |  | ------- | ------- | ------ |  | ------ | ------- | ----- |  | - | ------ | - |  | - | ------- | - |  | - | ------- | -
|                                       |  | 3 months |         | 4 to 6 |  | 7 to 12 |         | 1 to 5 |  | Over 5 |         |       |  |  
|(Dollars in thousands)                 |  | or less  |         | Months |  | Months  |         | years  |  | Years  |         | Total
|                                       |  |          |         |        |  |         |         |        |  |        |         |      
|Interest-earning assets:               |  |          |         |        |  |         |         |        |  |        |         |       |  |   |        |   |  |   |         |   |  |   |         |  
|                                      
|                                      
|                                      
|                                      
|Loans                                  |  | $        | 140,164 |        |  | $       | 30,657  |        |  | $      | 31,789  |       |  | $ | 71,665 |   |  | $ | 70,084  |   |  | $ | 344,359 |  
|                                      
|                                      
|                                      
|                                      
|Investment securities-taxable          |  |          | 4,670   |        |  |         | 1,883   |        |  |        | 5,936   |       |  |   | 12,765 |   |  |   | 32,814  |   |  |   | 58,068  |  
|                                      
|                                      
|                                      
|                                      
|Investment securities-tax exempt       |  |          |        |        |  |         |        |        |  |        |        |       |  |   | 711    |   |  |   | 5,176   |   |  |   | 5,887   |  
|                                      
|                                      
|                                      
|                                      
|Federal funds sold                     |  |          | 29,270  |        |  |         |        |        |  |        |        |       |  |   |       |   |  |   |        |   |  |   | 29,270  |  
|                                      
|                                      
|                                      
|                                      
|Interest bearing deposit in other
bank |  |          | 26      |        |  |         |        |        |  |        |        |       |  |   |       |   |  |   |        |   |  |   | 26      |  
|                                      
|                                      
|                                      
|                                      
|Note receivable                        |  |          |        |        |  |         | 233     |        |  |        |        |       |  |   | 264    |   |  |   |        |   |  |   | 497     |  
|                                       |  |          |         |        |  |         |         |        |  |        |         |       |  |   |        |   |  |   |         |   |  |   |         |  
|Total interest-bearing assets          |  |          | 174,130 |        |  |         | 32,773  |        |  |        | 37,725  |       |  |   | 85,405 |   |  |   | 108,074 |   |  |   | 438,107 |  
|                                       |  |          |         |        |  |         |         |        |  |        |         |       |  |   |        |   |  |   |         |   |  |   |         |  
|Interest-bearing liabilities:          |  |          |         |        |  |         |         |        |  |        |         |       |  |   |        |   |  |   |         |   |  |   |         |  
|                                      
|                                      
|                                      
|                                      
|NOW accounts (A)                       |  |          | 17,286  |        |  |         |        |        |  |        |        |       |  |   |       |   |  |   | 25,929  |   |  |   | 43,215  |  
|                                      
|                                      
|                                      
|                                      
|Money Market                           |  |          | 136,166 |        |  |         |        |        |  |        |        |       |  |   |       |   |  |   |        |   |  |   | 136,166 |  
|                                      
|                                      
|                                      
|                                      
|Savings Deposits (B)                   |  |          |        |        |  |         |        |        |  |        | 24,373  |       |  |   |       |   |  |   |        |   |  |   | 24,373  |  
|                                      
|                                      
|                                      
|                                      
|Other time deposits                    |  |          | 40,455  |        |  |         | 22,154  |        |  |        | 49,568  |       |  |   | 32,394 |   |  |   | 10      |   |  |   | 144,581 |  
|                                      
|                                      
|                                      
|                                      
|Notes payable                          |  |          |        |        |  |         |        |        |  |        |        |       |  |   |       |   |  |   | 5,250   |   |  |   | 5,250   |  
|                                      
|                                      
|                                      
|                                      
|Trust preferred securities             |  |          |        |        |  |         |        |        |  |        |        |       |  |   |       |   |  |   | 8,000   |   |  |   | 8,000   |  
|                                      
|                                      
|                                      
|                                      
|Other borrowings                       |  |          | 1,695   |        |  |         |        |        |  |        |        |       |  |   |       |   |  |   |        |   |  |   | 1,695   |  
|                                       |  |          |         |        |  |         |         |        |  |        |         |       |  |   |        |   |  |   |         |   |  |   |         |  
|Total interest-bearing liabilities     |  |          | 195,602 |        |  |         | 22,154  |        |  |        | 73,941  |       |  |   | 32,394 |   |  |   | 39,189  |   |  |   | 363,280 |  
|                                       |  |          |         |        |  |         |         |        |  |        |         |       |  |   |        |   |  |   |         |   |  |   |         |  
|Interest sensitivity gap               |  | $        | (21,472 | )      |  | $       | 10,619  |        |  | $      | (36,216 | )     |  | $ | 53,011 |   |  | $ | 68,885  |   |  | $ | 74,827  |  
|                                       |  |          |         |        |  |         |         |        |  |        |         |       |  |   |        |   |  |   |         |   |  |   |         |  
|Cumulative interest sensitivity gap    |  | $        | (21,472 | )      |  | $       | (10,853 | )      |  | $      | (47,069 | )     |  | $ | 5,942  |   |  | $ | 74,827  |   |  | $ | 74,827  |  
|                                       |  |          |         |        |  |         |         |        |  |        |         |       |  |   |        |   |  |   |         |   |  |   |         |  
|Cumulative sensitivity ratio           |  |          | (4.9    | )%     |  |         | (2.5    | )%     |  |        | (10.7   | )%    |  |   | 1.4    | % |  |   | 17.1    | % |  |   | 17.1    | %
|                                       |  |          |         |        |  |         |         |        |  |        |         |       |  |   |        |   |  |   |         |   |  |   |         |  



|(A) |  | 40% of outstanding balance considered repricable immediately and 60%
repricable in the furthest time period.
|--- |  | ------------------------------------------------------------------------------------------------------------
|   
|   
|   
|   
|(B) |  | Savings Deposits considered repricable in the one year time horizon.                                        

The Company is cumulatively asset sensitive in the 1 to 5 year time frame and
cumulatively liability sensitive in each of the 3 month or less, 4 to 6 months,
and 7 to 12 month timeframes. Certain liabilities such as NOW and passbook
savings accounts, while technically subject to immediate repricing in response
to changing market rates, historically do not reprice as quickly nor to the
extent as other interest sensitive accounts. Therefore, to include the entire
balance of these liability accounts in the earliest repricing period would be
unrealistic. To compensate for the fact that changes in general market
interest rates will not be fully reflected in changes in NOW rates, only 40% of
NOW balances is included as immediately rate sensitive based on the Companys
own and industry repricing experience. Also, passbook savings will not reprice
as quickly as market rates and therefore the repricing of savings deposits is
included in the 7 to 12 month repricing period, based on the

16



---



Companys repricing experience. Because of non-interest bearing liabilities,
total interest-earning assets are substantially greater than the total
interest-bearing liabilities and therefore over time the effects on net
interest income from changes in asset yield will be greater than the change in
expense from liability cost. Accordingly, if market interest rates should
decrease, the net interest margin would decrease. Conversely, if rates
increase the net interest margin would over time increase.

Even in the near term, the $47.1 million one year cumulative negative
sensitivity gap exaggerates the probable effects on earnings in a rising rate
environment for two reasons. First, the liabilities subject to repricing are
predominately not indexed to any specific market rate and therefore offer the
Company the opportunity to delay or diminish any rate repricings. Second, a
static gap model does not factor the effects of growing volumes which would
likely include greater additional rate sensitive assets than rate sensitive
liabilities.

Interest-earning assets and other time deposits are presented based on their
contractual terms. It is anticipated that run off in any deposit category will
be approximately offset by new deposit generation. Since the Company has
experienced steady growth in deposits, no net run off in any deposit category
is assumed in the interest rate sensitivity table. It is the Companys policy
to maintain its cumulative one year gap ratio in the 20% to +10% range. At
June 30, 2001, the Company was within this range with a one year cumulative
sensitivity ratio of 10.7%.

QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

All financial institutions have financial instruments which are subject to
market risk comprised of interest rate risk, foreign currency exchange rate
risk, commodity price risk and other relevant market risks, such as equity
price risks. The Company has assessed its market risk as predominately
interest rate risk.

The following interest rate sensitivity analysis information as of June 30,
2001 was developed using simulation analysis of the Companys sensitivity to
changes in net interest income under varying assumptions for changes in market
interest rates. Specifically, the model derives expected interest income and
interest expense resulting from an immediate and parallel shift in the yield
curve in the amounts shown.

These rate changes are matched with known repricing intervals and assumptions
for new growth net of expected prepayments. The assumptions are based
primarily on experience in the Companys market under varying rate environments.
The imbedded options that the Companys loan customers possess to refinance are
considered for purposes of this analysis and cause the larger decreases in
income in a declining rate scenario versus the income increases in the same
size rising rate scenario.

This analysis intentionally exaggerates interest sensitivity. For the sake of
simplicity and comparability, an immediate change in rates is assumed.
However, any significant change in actual market rates would probably be phased
in over an extended period of time. This phase in would reduce the net
interest income effects for any absolute change in rates.

The Company attempts to retain interest rate neutrality by generating mostly
adjustable rate loans and managing the securities and Fed Funds positions to
offset the repricing characteristics of the deposit liabilities.

|                                          |  |                         |        |                |  |                         |        |        |  |        |        |  |  |  |        |  |  |  |        | 
|----------------------------------------- |  | ----------------------- | ------ | -------------- |  | ----------------------- | ------ | ------ |  | ------ | ------ |  |  |  | ------ |  |  |  | ------ | 
|                                          |  | Interest Rates Decrease |        | Interest Rates |  | Interest Rates Increase
|(Dollars in thousands)                    |  | 200 BP                  |        | 100 BP         |  | Remain Constant         |        | 100 BP |  | 200 BP
|                                          |  |                         |        |                |  |                         |        |        |  |       
|2001 Interest Income                      |  |                         | 30,438 |                |  |                         | 32,548 |        |  |        | 34,658 |  |  |  | 36,593 |  |  |  | 38,527 | 
|                                         
|                                         
|                                         
|                                         
|2001 Interest Expense                     |  |                         | 10,985 |                |  |                         | 12,863 |        |  |        | 14,740 |  |  |  | 16,618 |  |  |  | 18,496 | 
|                                          |  |                         |        |                |  |                         |        |        |  |        |        |  |  |  |        |  |  |  |        | 
|Net Interest Income                       |  |                         | 19,453 |                |  |                         | 19,685 |        |  |        | 19,918 |  |  |  | 19,975 |  |  |  | 20,031 | 
|                                          |  |                         |        |                |  |                         |        |        |  |        |        |  |  |  |        |  |  |  |        | 
|Change in net income after tax vs. budget |  |                         | (290   | )              |  |                         | (145   | )      |  |        |        |  |  |  | 35     |  |  |  | 71     | 

17



---



|         |                  
|-------- | -----------------
|        
|        
|Part II. | OTHER INFORMATION
|        

|        |                                                    
|------- | ---------------------------------------------------
|ITEM 4. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | On May 22, 2001, at the annual meeting of Company shareholders, the
shareholders reelected the following directors: B. G. Carter, Armando
J. Henriquez, James R. Lawson, III and also approved the engagement of
BDO Seidman, LLP as independent certified public accountants for the
Company. The directors continuing in office following the meeting were
: B. G. Carter, Armando J. Henriquez, Gretchen K. Holland, James R.
Lawson, III, Edward V. Lett, Scott A. Marr, Derek D. Martin-Vegue,
Joseph H. Roth, Jr., Marvin F. Schindler, and Millard J. Younkers, Jr.
|

|        |                                 
|------- | --------------------------------
|ITEM 6. | EXHIBITS AND REPORTS ON FORM 8-K



| |                                                                                
| | -------------------------------------------------------------------------------
| | (a)   Exhibit 99  Report of Independent Certified Public
Accountants          
|
| | (b)   No reports on Form 8-K were filed during the quarter ended
June 30, 2001.

SIGNATURES

In accordance with the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

|      |  |                 |  |                                                   | 
|----- |  | --------------- |  | ------------------------------------------------- | 
|     
|     
|      |  |                 |  | TIB FINANCIAL CORP.                              
|     
|     
|      |  |                 |  | /s/ Edward V.
Lett                               
|      |  |                 |  |                                                  
|Date: |  | August 13, 2001 |  | Edward V. Lett                                   
|      |  |                 |  | President and Chief Executive Officer            
|     
|     
|     
|     
|      |  |                 |  | /s/ David P. Johnson                             
|      |  |                 |  |                                                  
|      |  |                 |  | David P. Johnson                                 
|      |  |                 |  | Senior Vice President and Chief Financial Officer

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