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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

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| For                the quarterly period ended |   | Commission                File Number |
|-----------------------------------------------|--------|---------------------------------------|
| SEPTEMBER                30, 2006             |   | 000-21329                             |

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**TIB      FINANCIAL CORP.**

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| FLORIDA                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                               | 65-0655973                                          |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------|-----------------------------------------------------|
| (State                or other jurisdiction of incorporation or organization)                                                                                                                                                                                                                                                                                                                                                                                                                                 |                               | (I.R.S.                Employer Identification No.) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                               |                                                |
| 599                9th                STREET NORTH, SUITE 101, NAPLES, FLORIDA 34102-5624                                                                                                                                                                                                                                                                                                                                                                                                                     |
| (Address                of principal executive offices) (Zip Code)                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                               |                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | (239)                263-3344      |                                                |
| (Registrant’s                telephone number, including area code)                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                               |                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Not                Applicable      |                                                |
| (Former                name, former address and former fiscal year, if changed since last                report)                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                               |                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                               |                                                |
| Indicate                by check mark whether the registrant (1) has filed all reports required                to                be filed by Section 13 or 15(d) of the Securities Exchange Act of                1934                during the preceding 12 months (or for such shorter period that the                registrant was required to file such reports), and (2) has been subject                to                such filing requirements for the past 90 days. TYes                £No |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                               |                                                |
| Indicate                by check mark whether the registrant is a large accelerated filer,                an                accelerated filer, or a non-accelerated filer. See definition of                “accelerated filer and large accelerated filer” in Rule 12b-2 of the                Exchange Act (Check one):                                                                                                                                                                         |
| £                Large accelerated filer                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | T                Accelerated filer | £                Non-accelerated filer         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                               |                                                |
| Indicate                by check mark whether the registrant is a shell company (as defined                in                Rule 12b-2 of the Exchange Act). £Yes                TNo                                                                                                                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                               |                                                |
| Indicate                the number of shares outstanding of each of the issuer’s classes of common                stock, as of the latest practicable date:                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                               |                                                |
| Common                Stock, $0.10 Par Value                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                               | 11,715,744                                          |
| Class                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                               | Outstanding                as of October 31, 2006   |

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**TIB      FINANCIAL CORP.**

**INDEX**

|  **PART I. FINANCIAL                  INFORMATION**  |                          |
|----------------------------------------------------------------|-------------------------------|
|                                                           |  Item 1.                 |  Financial                Statements | 1 |
|                                                           |  Item 2.                 |  Management’s                Discussion and Analysis of Financial Condition and Results of                Operations | 16 |
|                                                           |  Item 3.                 |  Quantitative and                Qualitative Disclosures About Market Risk | 29 |
|                                                           |  Item 4.                 |  Controls and                Procedures | 29 |
|                                                           |                          |   |   |
|  **PART II. OTHER                INFORMATION**            |                          |
|                                                           |  Item                1a. |  Risk                Factors | 30 |
|                                                           |  Item 4.                 |  Submission of                Matters to a Vote of Security Holders | 30 |
|                                                           |  Item 5.                 |  Other                Information | 30 |
|                                                           |  Item 6.                 |  Exhibits | 30 |
|                                                           |                          |   |   |

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Table            of Contents

**PART      I. FINANCIAL INFORMATION**

**Item      1. Financial Statements**

| **TIB                FINANCIAL CORP.****CONSOLIDATED                BALANCE SHEETS***(Dollars                in thousands, except per share amounts)* |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                       |   |   | **September                30,****2006**  |   |   | **December                31,****2005** |   |
|                                                                                                                                                       |   |   | (Unaudited)  |   |   |   |   |
| **Asset**s                                                                                                                                            |   |   |   |   |   |   |   |
| Cash                and due from banks                                                                                                                |   | $ | 21,493 |   | $ | 24,347 |   |
| Federal                funds sold                                                                                                                     |   |   | - |   |   | 17,163 |   |
| Cash                and cash equivalents                                                                                                              |   |   | 21,493 |   |   | 41,510 |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |
| Investment                securities available for sale                                                                                               |   |   | 126,577 |   |   | 97,464 |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |
| Loans,                net of deferred loan costs and fees                                                                                             |   |   | 1,039,390 |   |   | 884,024 |   |
| Less:                Allowance for loan losses                                                                                                        |   |   | 8,790 |   |   | 7,546 |   |
| Loans,                net                                                                                                                             |   |   | 1,030,600 |   |   | 876,478 |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |
| Premises                and equipment, net                                                                                                            |   |   | 33,065 |   |   | 27,800 |   |
| Intangible                assets, net                                                                                                                 |   |   | 884 |   |   | 1,100 |   |
| Accrued                interest receivable and other assets                                                                                           |   |   | 44,861 |   |   | 31,718 |   |
| Total                Assets                                                                                                                           |   | $ | 1,257,480 |   | $ | 1,076,070 |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |
| **Liabilities                and Shareholders’ Equity**                                                                                         |   |   |   |   |   |   |   |
| **Liabilities**                                                                                                                                       |   |   |   |   |   |   |   |
| Deposits:                                                                                                                                             |   |   |   |   |   |   |   |
| Noninterest-bearing                demand                                                                                                             |   | $ | 155,902 |   | $ | 169,816 |   |
| Interest-bearing                                                                                                                                      |   |   | 816,164 |   |   | 750,608 |   |
| Total                deposits                                                                                                                         |   |   | 972,066 |   |   | 920,424 |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |
| Federal                Home Loan Bank (FHLB) advances                                                                                                 |   |   | 120,000 |   |   | 25,000 |   |
| Short-term                borrowings                                                                                                                  |   |   | 25,249 |   |   | 17,284 |   |
| Long-term                borrowings                                                                                                                   |   |   | 37,000 |   |   | 17,000 |   |
| Accrued                interest payable and other liabilities                                                                                         |   |   | 19,204 |   |   | 18,838 |   |
| Total                liabilities                                                                                                                      |   |   | 1,173,519 |   |   | 998,546 |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |
| **Shareholders’                equity**                                                                                                         |   |   |   |   |   |   |   |
| Preferred                stock - no par value: 5,000,000 shares authorized, 0 shares                issued                                            |   |   | - |   |   | - |   |
| Common                stock - $.10 par value: 40,000,000 shares authorized, 11,712,812                and                11,585,196 shares issued     |   |   | 1,171 |   |   | 1,158 |   |
| Additional                paid in capital                                                                                                             |   |   | 40,325 |   |   | 38,973 |   |
| Retained                earnings                                                                                                                      |   |   | 43,386 |   |   | 38,136 |   |
| Accumulated                other comprehensive loss                                                                                                   |   |   | (921 | ) |   | (743 | ) |
| Total                shareholders’ equity                                                                                                       |   |   | 83,961 |   |   | 77,524 |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |
| Total                Liabilities and Shareholders’ Equity                                                                                       |   | $ | 1,257,480 |   | $ | 1,076,070 |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |
| *See                accompanying notes to consolidated financial                statements*                                                           |

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Table          of Contents

| **TIB                FINANCIAL CORP.****CONSOLIDATED                STATEMENTS OF INCOME****(Unaudited)**  |
|-----------------------------------------------------------------------------------------------------------------|
|                                                                                                                 |   | **Three                Months Ended****September                30,**  |  | **Nine                Months Ended****September                30,** |
| *(Dollars                in thousands, except per share amounts)*** **                                     |   |   | **2006** |   |   | **2005** |   |   | **2006** |   |   | **2005** |   |
| **Interest                and dividend income**                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans,                including fees                                                                            |   | $ | 20,612 |   | $ | 14,221 |   | $ | 56,953 |   | $ | 38,465 |   |
| Investment                securities:                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                                                                         |   |   | 1,336 |   |   | 767 |   |   | 3,746 |   |   | 2,111 |   |
| Tax-exempt                                                                                                      |   |   | 174 |   |   | 160 |   |   | 517 |   |   | 481 |   |
| Interest-bearing                deposits in other banks                                                         |   |   | 6 |   |   | 2 |   |   | 17 |   |   | 8 |   |
| Federal                Home Loan Bank stock                                                                     |   |   | 87 |   |   | 23 |   |   | 177 |   |   | 81 |   |
| Federal                funds sold                                                                               |   |   | 78 |   |   | 330 |   |   | 584 |   |   | 928 |   |
| Total                interest and dividend income                                                               |   |   | 22,293 |   |   | 15,503 |   |   | 61,994 |   |   | 42,074 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Interest                expense**                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                                                        |   |   | 8,269 |   |   | 4,674 |   |   | 22,657 |   |   | 11,670 |   |
| Federal                Home Loan Bank advances                                                                  |   |   | 1,152 |   |   | 227 |   |   | 1,897 |   |   | 595 |   |
| Short-term                borrowings                                                                            |   |   | 232 |   |   | 109 |   |   | 515 |   |   | 292 |   |
| Long-term                borrowings                                                                             |   |   | 780 |   |   | 399 |   |   | 1,634 |   |   | 1,173 |   |
| Total                interest expense                                                                           |   |   | 10,433 |   |   | 5,409 |   |   | 26,703 |   |   | 13,730 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Net                interest income**                                                                          |   |   | 11,860 |   |   | 10,094 |   |   | 35,291 |   |   | 28,344 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision                for loan losses                                                                        |   |   | 670 |   |   | 448 |   |   | 2,206 |   |   | 1,764 |   |
| Net                interest income after provision for loan losses                                              |   |   | 11,190 |   |   | 9,646 |   |   | 33,085 |   |   | 26,580 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Non-interest                income**                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Service                charges on deposit accounts                                                              |   |   | 650 |   |   | 601 |   |   | 1,782 |   |   | 1,776 |   |
| Investment                securities gains, net                                                                 |   |   | - |   |   | 1 |   |   | - |   |   | 1 |   |
| Fees                on mortgage loans sold                                                                      |   |   | 499 |   |   | 461 |   |   | 1,281 |   |   | 1,535 |   |
| Other                income                                                                                     |   |   | 479 |   |   | 491 |   |   | 1,559 |   |   | 1,557 |   |
| Total                non-interest income                                                                        |   |   | 1,628 |   |   | 1,554 |   |   | 4,622 |   |   | 4,869 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Non-interest                expense**                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Salaries                and employee benefits                                                                   |   |   | 4,982 |   |   | 4,529 |   |   | 14,839 |   |   | 12,999 |   |
| Net                occupancy and equipment expense                                                              |   |   | 1,545 |   |   | 1,380 |   |   | 4,530 |   |   | 3,995 |   |
| Other                expense                                                                                    |   |   | 2,471 |   |   | 2,282 |   |   | 6,956 |   |   | 6,281 |   |
| Total                non-interest expense                                                                       |   |   | 8,998 |   |   | 8,191 |   |   | 26,325 |   |   | 23,275 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                before income tax expense                                                                 |   |   | 3,820 |   |   | 3,009 |   |   | 11,382 |   |   | 8,174 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                tax expense                                                                               |   |   | 1,383 |   |   | 1,060 |   |   | 4,253 |   |   | 2,880 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations                                                                |   |   | 2,437 |   |   | 1,949 |   |   | 7,129 |   |   | 5,294 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Discontinued                operations**                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                from merchant bankcard operations                                                         |   |   | 25 |   |   | 169 |   |   | 297 |   |   | 788 |   |
| Income                tax expense                                                                               |   |   | 10 |   |   | 64 |   |   | 115 |   |   | 297 |   |
| Income                from discontinued operations                                                              |   |   | 15 |   |   | 105 |   |   | 182 |   |   | 491 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Net                income**                                                                                   |   | $ | 2,452 |   | $ | 2,054 |   | $ | 7,311 |   | $ | 5,785 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Basic                earnings per common share**                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Continuing                operations                                                                            |   | $ | 0.                21 |   | $ | 0.                17 |   | $ | 0.                61 |   | $ | 0.                47 |   |
| Discontinued                operations                                                                          |   |   | 0.                00 |   |   | 0.                01 |   |   | 0.                02 |   |   | 0.                04 |   |
| Basic                earnings per share                                                                         |   | $ | 0.                21 |   | $ | 0.                18 |   | $ | 0.                63 |   | $ | 0.                51 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Diluted                earnings per common share**                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Continuing                operations                                                                            |   | $ | 0.                21 |   | $ | 0.                16 |   | $ | 0.                60 |   | $ | 0.                45 |   |
| Discontinued                operations                                                                          |   |   | 0.                00 |   |   | 0.                01 |   |   | 0.                02 |   |   | 0.                04 |   |
| Diluted                earnings per share                                                                       |   | $ | 0.                21 |   | $ | 0.                17 |   | $ | 0.                62 |   | $ | 0.                49 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| *See                accompanying notes to consolidated financial                statements*                     |

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Table          of Contents

**TIB      FINANCIAL CORP.**

**Consolidated      Statements of Changes in Shareholders’ Equity**

**(Unaudited)**

*(Dollars      in thousands, except per share amounts)*

|                                                                                                |   |   | **Shares**  |   |   | **Common                Stock** |   |   | **Additional                Paid in Capital** |   |   | **Retained                Earnings** |   |   | **Accumulated                Other Comprehensive Income (Loss)** |   |   | **Total                Shareholders’ Equity** |   |
|------------------------------------------------------------------------------------------------|--------|--------|------------------|--------|--------|---------------------------------|--------|--------|-----------------------------------------------|--------|--------|--------------------------------------|--------|--------|------------------------------------------------------------------|--------|--------|-----------------------------------------------------|--------|
| **Balance,                July 1, 2006**                                                       |   |   | 11,682,840       |   | $      | 1,168                           |   | $      | 39,873                                        |   | $      | 41,623                               |   | $      | (                2,138                                           | )      | $      | 80,526                                              |   |
| Comprehensive                income:                                                           |   |   |             |   |   |                            |   |   |                                          |   |   |                                 |   |   |                                                             |   |   |                                                |   |
| Net                income                                                                      |   |   |             |   |   |                            |   |   |                                          |   |   | 2,452                                |   |   |                                                             |   |   | 2,452                                               |   |
| Other                comprehensive income, net of tax expense of $766:                         |   |   |             |   |   |                            |   |   |                                          |   |   |                                 |   |   |                                                             |   |   |                                                |   |
| Net                market valuation adjustment on securities available for                sale |   |   |             |   |   |                            |   |   |                                          |   |   |                                 |   |   | 1,217                                                            |   |   |                                                |   |
| Other                comprehensive income, net of tax                                          |   |   |             |   |   |                            |   |   |                                          |   |   |                                 |   |   |                                                             |   |   | 1,217                                               |   |
| Comprehensive                income                                                            |   |   |             |   |   |                            |   |   |                                          |   |   |                                 |   |   |                                                             |   | $      | 3,669                                               |   |
| Stock-based                compensation                                                        |   |   |             |   |   |                            |   |   | 151                                           |   |   |                                 |   |   |                                                             |   |   | 151                                                 |   |
| Exercise                of stock options                                                       |   |   | 29,972           |   |   | 3                               |   |   | 205                                           |   |   |                                 |   |   |                                                             |   |   | 208                                                 |   |
| Income                tax benefit related to stock based compensation                          |   |   |             |   |   |                            |   |   | 96                                            |   |   |                                 |   |   |                                                             |   |   | 96                                                  |   |
| Cash                dividends declared, $.05875 per share                                      |   |   |             |   |   |                            |   |   |                                          |   |   | (689                                 | )      |   |                                                             |   |   | (689                                                | )      |
| **Balance,                September 30, 2006**                                                 |   |   | 11,712,812       |   | $      | 1,171                           |   | $      | 40,325                                        |   | $      | 43,386                               |   | $      | (                921                                             | )      | $      | 83,961                                              |   |
|                                                                                           |   |   |             |   |   |                            |   |   |                                          |   |   |                                 |   |   |                                                             |   |   |                                                |   |

|                                                                                           |   |   | **Shares**  |   |   | **Common                Stock** |   |   | **Additional                Paid in Capital** |   |   | **Retained                Earnings** |   |   | **Accumulated                Other Comprehensive Income (Loss)** |   |   | **Total                Shareholders’ Equity** |   |
|------------------------------------------------------------------------------------------------|--------|--------|------------------|--------|--------|---------------------------------|--------|--------|-----------------------------------------------|--------|--------|--------------------------------------|--------|--------|------------------------------------------------------------------|--------|--------|-----------------------------------------------------|--------|
| **Balance,                July 1, 2005**                                                       |   |   | 11,424,528       |   | $      | 1,142                           |   | $      | 38,144                                        |   | $      | 31,386                               |   | $      | 68                                                               |   | $      | 70,740                                              |   |
| Comprehensive                income:                                                           |   |   |             |   |   |                            |   |   |                                          |   |   |                                 |   |   |                                                             |   |   |                                                |   |
| Net                income                                                                      |   |   |             |   |   |                            |   |   |                                          |   |   | 2,054                                |   |   |                                                             |   |   | 2,054                                               |   |
| Other                comprehensive income, net of tax benefit of $273:                         |   |   |             |   |   |                            |   |   |                                          |   |   |                                 |   |   |                                                             |   |   |                                                |   |
| Net                market valuation adjustment on securities available for                sale |   |   |             |   |   |                            |   |   |                                          |   |   |                                 |   |   | (456                                                             | )      |   |                                                |   |
| Other                comprehensive income, net of tax                                          |   |   |             |   |   |                            |   |   |                                          |   |   |                                 |   |   |                                                             |   |   | (456                                                | )      |
| Comprehensive                income                                                            |   |   |             |   |   |                            |   |   |                                          |   |   |                                 |   |   |                                                             |   | $      | 1,598                                               |   |
| Restricted                stock grants                                                         |   |   | 70,000           |   |   | 7                               |   |   | (7                                            | )      |   |                                 |   |   |                                                             |   |   | -                                                   |   |
| Stock-based                compensation                                                        |   |   |             |   |   |                            |   |   | 39                                            |   |   |                                 |   |   |                                                             |   |   | 39                                                  |   |
| Exercise                of stock options                                                       |   |   | 28,964           |   |   | 3                               |   |   | 196                                           |   |   |                                 |   |   |                                                             |   |   | 199                                                 |   |
| Income                tax benefit from stock options exercised                                 |   |   |             |   |   |                            |   |   | 97                                            |   |   |                                 |   |   |                                                             |   |   | 97                                                  |   |
| Cash                dividends declared, $.0575 per share                                       |   |   |             |   |   |                            |   |   |                                          |   |   | (662                                 | )      |   |                                                             |   |   | (662                                                | )      |
| **Balance,                September 30, 2005**                                                 |   |   | 11,523,492       |   | $      | 1,152                           |   | $      | 38,469                                        |   | $      | 32,778                               |   | $      | (388                                                             | )      | $      | 72,011                                              |   |
|                                                                                           |   |   |             |   |   |                            |   |   |                                          |   |   |                                 |   |   |                                                             |   |   |                                                |   |
| *continued*                                                                                    |

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Table          of Contents

|                                                                                                  |   |   | **Shares**  |   |   | **Common                Stock** |   |   | **Additional                Paid in Capital** |   |   | **Retained                Earnings** |   |   | **Accumulated                Other Comprehensive Income (Loss)** |   |   | **Total                Shareholders’ Equity** |   |
|-------------------------------------------------------------------------------------------------------|--------|--------|------------------|--------|--------|---------------------------------|--------|--------|-----------------------------------------------|--------|--------|--------------------------------------|--------|--------|------------------------------------------------------------------|--------|--------|-----------------------------------------------------|--------|
| **Balance,                January 1, 2006**                                                           |   |   | 11,585,196       |   | $      | 1,158                           |   | $      | 38,973                                        |   | $      | 38,136                               |   | $      | (743                                                             | )      | $      | 77,524                                              |   |
| Comprehensive                income:                                                                  |   |   |             |   |   |                            |   |   |                                          |   |   |                                 |   |   |                                                             |   |   |                                                |   |
| Net                income                                                                             |   |   |             |   |   |                            |   |   |                                          |   |   | 7,311                                |   |   |                                                             |   |   | 7,311                                               |   |
| Other                comprehensive income, net of tax benefit of $130:                                |   |   |             |   |   |                            |   |   |                                          |   |   |                                 |   |   |                                                             |   |   |                                                |   |
| Net                market valuation adjustment on securities available for                sale        |   |   |             |   |   |                            |   |   |                                          |   |   |                                 |   |   | (178                                                             | )      |   |                                                |   |
| Other                comprehensive income, net of tax                                                 |   |   |             |   |   |                            |   |   |                                          |   |   |                                 |   |   |                                                             |   |   | (178                                                | )      |
| Comprehensive                income                                                                   |   |   |             |   |   |                            |   |   |                                          |   |   |                                 |   |   |                                                             |   | $      | 7,133                                               |   |
| Restricted                stock cancellations, net of 8,680 restricted stock                issuances |   |   | (1,320           | )      |   | -                               |   |   | -                                             |   |   |                                 |   |   |                                                             |   |   | -                                                   |   |
| Stock-based                compensation                                                               |   |   |             |   |   |                            |   |   | 421                                           |   |   |                                 |   |   |                                                             |   |   | 421                                                 |   |
| Exercise                of stock options                                                              |   |   | 128,936          |   |   | 13                              |   |   | 799                                           |   |   |                                 |   |   |                                                             |   |   | 812                                                 |   |
| Income                tax benefit related to stock based compensation                                 |   |   |             |   |   |                            |   |   | 132                                           |   |   |                                 |   |   |                                                             |   |   | 132                                                 |   |
| Cash                dividends declared, $.17625 per share                                             |   |   |             |   |   |                            |   |   |                                          |   |   | (2,061                               | )      |   |                                                             |   |   | (2,061                                              | )      |
| **Balance,                September 30, 2006**                                                        |   |   | 11,712,812       |   | $      | 1,171                           |   | $      | 40,325                                        |   | $      | 43,386                               |   | $      | (921                                                             | )      | $      | 83,961                                              |   |
|                                                                                                  |   |   |             |   |   |                            |   |   |                                          |   |   |                                 |   |   |                                                             |   |   |                                                |   |
|                                                                                                  |   |   |             |   |   |                            |   |   |                                          |   |   |                                 |   |   |                                                             |   |   |                                                |   |

|                                                                                           |   |   | **Shares**  |   |   | **Common                Stock** |   |   | **Additional                Paid in Capital** |   |   | **Retained                Earnings** |   |   | **Accumulated                Other Comprehensive Income (Loss)** |   |   | **Total                Shareholders’ Equity** |   |
|------------------------------------------------------------------------------------------------|--------|--------|------------------|--------|--------|---------------------------------|--------|--------|-----------------------------------------------|--------|--------|--------------------------------------|--------|--------|------------------------------------------------------------------|--------|--------|-----------------------------------------------------|--------|
| **Balance,                January 1, 2005**                                                    |   |   | 11,358,478       |   | $      | 1,136                           |   | $      | 37,716                                        |   | $      | 28,968                               |   | $      | 294                                                              |   | $      | 68,114                                              |   |
| Comprehensive                income:                                                           |   |   |             |   |   |                            |   |   |                                          |   |   |                                 |   |   |                                                             |   |   |                                                |   |
| Net                income                                                                      |   |   |             |   |   |                            |   |   |                                          |   |   | 5,785                                |   |   |                                                             |   |   | 5,785                                               |   |
| Other                comprehensive income, net of tax benefit of $409:                         |   |   |             |   |   |                            |   |   |                                          |   |   |                                 |   |   |                                                             |   |   |                                                |   |
| Net                market valuation adjustment on securities available for                sale |   |   |             |   |   |                            |   |   |                                          |   |   |                                 |   |   | (682                                                             | )      |   |                                                |   |
| Other                comprehensive income, net of tax                                          |   |   |             |   |   |                            |   |   |                                          |   |   |                                 |   |   |                                                             |   |   | (682                                                | )      |
| Comprehensive                income                                                            |   |   |             |   |   |                            |   |   |                                          |   |   |                                 |   |   |                                                             |   | $      | 5,103                                               |   |
| Restricted                stock grants                                                         |   |   | 70,000           |   |   | 7                               |   |   | (7                                            | )      |   |                                 |   |   |                                                             |   |   | -                                                   |   |
| Stock-based                compensation                                                        |   |   |             |   |   |                            |   |   | 39                                            |   |   |                                 |   |   |                                                             |   |   | 39                                                  |   |
| Exercise                of stock options                                                       |   |   | 95,014           |   |   | 9                               |   |   | 531                                           |   |   |                                 |   |   |                                                             |   |   | 540                                                 |   |
| Income                tax benefit from stock options exercised                                 |   |   |             |   |   |                            |   |   | 190                                           |   |   |                                 |   |   |                                                             |   |   | 190                                                 |   |
| Cash                dividends declared, $.1725 per share                                       |   |   |             |   |   |                            |   |   |                                          |   |   | (1,975                               | )      |   |                                                             |   |   | (1,975                                              | )      |
| **Balance,                September 30, 2005**                                                 |   |   | 11,523,492       |   | $      | 1,152                           |   | $      | 38,469                                        |   | $      | 32,778                               |   | $      | (388                                                             | )      | $      | 72,011                                              |   |
|                                                                                           |   |   |             |   |   |                            |   |   |                                          |   |   |                                 |   |   |                                                             |   |   |                                                |   |
| *See                accompanying notes to consolidated financial                statements*    |

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Table          of Contents

| **TIB                FINANCIAL CORP.****CONSOLIDATED                STATEMENTS OF CASH FLOWS****INCREASE                (DECREASE) IN CASH AND CASH EQUIVALENTS****(Unaudited)***(Dollars                in thousands)*** ** |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                   |   | **Nine                Months Ended September 30,**  |
|                                                                                                                                                                                                                              |   |   | **2006** |   |   | **2005** |   |
| **Cash                flows from operating activities:**                                                                                                                                                                          |   |   |   |   |   |   |   |
| Net                income                                                                                                                                                                                                         |   | $ | 7,311 |   | $ | 5,785 |   |
| Adjustments                to reconcile net income to net cash provided by operating                activities:                                                                                                                   |   |   |   |   |   |   |   |
| Depreciation                and amortization                                                                                                                                                                                      |   |   | 1,897 |   |   | 1,864 |   |
| Provision                for loan losses                                                                                                                                                                                          |   |   | 2,206 |   |   | 1,764 |   |
| Deferred                income tax benefit                                                                                                                                                                                        |   |   | (718 | ) |   | (561 | ) |
| Gain                on sale of merchant bankcard processing segment                                                                                                                                                               |   |   | (297 | ) |   | - |   |
| Investment                securities net gains                                                                                                                                                                                    |   |   | - |   |   | (1 | ) |
| Other                                                                                                                                                                                                                             |   |   | 288 |   |   | 84 |   |
| Mortgage                loans originated for sale                                                                                                                                                                                 |   |   | (83,781 | ) |   | (93,875 | ) |
| Proceeds                from sales of mortgage loans                                                                                                                                                                              |   |   | 78,794 |   |   | 96,495 |   |
| Fees                on mortgage loans sold                                                                                                                                                                                        |   |   | (1,281 | ) |   | (1,535 | ) |
| Increase                in accrued interest receivable and other assets                                                                                                                                                           |   |   | (1,149 | ) |   | (1,442 | ) |
| Increase                in accrued interest payable and other liabilities                                                                                                                                                         |   |   | 493 |   |   | 4,757 |   |
| Net                cash provided by operating activities                                                                                                                                                                          |   |   | 3,763 |   |   | 13,335 |   |
|                                                                                                                                                                                                                              |   |   |   |   |   |   |   |
| **Cash                flows from investing activities:**                                                                                                                                                                          |   |   |   |   |   |   |   |
| Purchases                of investment securities available for sale                                                                                                                                                              |   |   | (37,459 | ) |   | (10,000 | ) |
| Repayments                of principal and maturities of investment securities available for                sale                                                                                                                  |   |   | 8,056 |   |   | 614 |   |
| Net                (purchase) sale of FHLB stock                                                                                                                                                                                  |   |   | (4,768 | ) |   | 129 |   |
| Proceeds                from sales of loans                                                                                                                                                                                       |   |   | 7,439 |   |   | 60 |   |
| Loans                originated or acquired, net of principal repayments                                                                                                                                                          |   |   | (161,623 | ) |   | (181,024 | ) |
| Purchases                of premises and equipment                                                                                                                                                                                |   |   | (9,136 | ) |   | (2,208 | ) |
| Proceeds                from sale of premises, equipment and intangible assets                                                                                                                                                    |   |   | 218 |   |   | 630 |   |
| Net                cash used by investing activities                                                                                                                                                                              |   |   | (197,273 | ) |   | (191,799 | ) |
|                                                                                                                                                                                                                              |   |   |   |   |   |   |   |
| **Cash                flows from financing activities:**                                                                                                                                                                          |   |   |   |   |   |   |   |
| Net                increase in federal funds purchased and securities sold under agreements                to repurchase                                                                                                          |   |   | 7,965 |   |   | 1,670 |   |
| Net                increase (decrease) in FHLB advances                                                                                                                                                                           |   |   | 95,000 |   |   | (10,000 | ) |
| Net                proceeds from issuance of trust preferred securities                                                                                                                                                           |   |   | 19,995 |   |   | - |   |
| Repayment                of notes payable                                                                                                                                                                                         |   |   | - |   |   | (1,250 | ) |
| Net                increase (decrease) in demand, money market and savings accounts                                                                                                                                               |   |   | (2,797 | ) |   | 30,359 |   |
| Net                increase in time deposits                                                                                                                                                                                      |   |   | 54,439 |   |   | 195,127 |   |
| Proceeds                from exercise of stock options                                                                                                                                                                            |   |   | 812 |   |   | 540 |   |
| Income                tax benefit related to stock-based compensation                                                                                                                                                             |   |   | 132 |   |   | 190 |   |
| Cash                dividends paid                                                                                                                                                                                                |   |   | (2,053 | ) |   | (1,965 | ) |
| Net                cash provided by financing activities                                                                                                                                                                          |   |   | 173,493 |   |   | 214,671 |   |
|                                                                                                                                                                                                                              |   |   |   |   |   |   |   |
| **Net                increase (decrease) in cash and cash equivalents**                                                                                                                                                           |   |   | (20,017 | ) |   | 36,207 |   |
| Cash                and cash equivalents at beginning of period                                                                                                                                                                   |   |   | 41,510 |   |   | 42,938 |   |
| **Cash                and cash equivalents at end of period**                                                                                                                                                                     |   | $ | 21,493 |   | $ | 79,145 |   |
|                                                                                                                                                                                                                              |   |   |   |   |   |   |   |
| **Supplemental                disclosures of cash paid:**                                                                                                                                                                         |   |   |   |   |   |   |   |
| Interest                                                                                                                                                                                                                          |   | $ | 24,282 |   | $ | 12,466 |   |
| Income                taxes                                                                                                                                                                                                       |   |   | 8,980 |   |   | 3,530 |   |
|                                                                                                                                                                                                                              |   |   |   |   |   |   |   |
| **Supplemental                disclosures of non-cash transactions:**                                                                                                                                                             |   |   |   |   |   |   |   |
| Financing                of sale of premises and equipment to third parties                                                                                                                                                       |   | $ | 2,136 |   | $ | 1,100 |   |
| Mortgage                backed securities issued and retained subsequent to securitization                of                residential mortgages                                                                                 |   |   | - |   |   | 8,509 |   |
|                                                                                                                                                                                                                              |   |   |   |   |   |   |   |
| *See                accompanying notes to consolidated financial                statements*                                                                                                                                       |

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Table          of Contents

**TIB            FINANCIALCORP.**

*(Dollars            in thousands except for share and per share            amounts)*

**Note      1 - Basis of Presentation & Accounting Policies**

**Critical      Accounting Policies**

***Allowance      for Loan Losses***

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Table          of Contents

**TIB          FINANCIALCORP.**

*(Dollars          in thousands except for share and per share          amounts)*

***Earnings      Per Common Share***

***Recent      Accounting Pronouncements***

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Table            of Contents

**TIB            FINANCIALCORP.**

*(Dollars            in thousands except for share and per share            amounts)*

**Note      2 -Acquisitions, Divestitures and Discontinued Operations**

|                                                           |   | **Nine                Months Ended****September                30,** |
|-----------------------------------------------------------|--------|----------------------------------------------------------------------|
|                                                      |   |                                                                 | **2006** |   |   | **2005** |   |
| Other                income                               |   | $                                                                    | 297 |   | $ | 4,919 |   |
| Depreciation                and amortization              |   |                                                                 | - |   |   | 6 |   |
| Other                expense                              |   |                                                                 | - |   |   | 4,125 |   |
| Pretax                income from discontinued operations |   | $                                                                    | 297 |   | $ | 788 |   |

**Note      3 - Investment Securities**

|                                                                   |   | **September                30, 2006**  |
|-------------------------------------------------------------------|--------|---------------------------------------------|
|                                                              |   |                                        | **Amortized****Cost**  |   |   | **Unrealized****Gains** |   |   | **Unrealized****Losses** |   |   | **Estimated****Fair                Value** |   |
| U.S.                Treasury securities                           |   | $                                           | 5,086 |   | $ | - |   | $ | 147 |   | $ | 4,939 |   |
| U.S.                Government agencies and corporations          |   |                                        | 78,930 |   |   | 141 |   |   | 1,674 |   |   | 77,397 |   |
| States                and political subdivisions—tax exempt |   |                                        | 10,818 |   |   | 28 |   |   | 152 |   |   | 10,694 |   |
| States                and political subdivisions—taxable    |   |                                        | 2,578 |   |   | 9 |   |   | - |   |   | 2,587 |   |
| Mortgage-backed                securities                         |   |                                        | 17,668 |   |   | 11 |   |   | 89 |   |   | 17,590 |   |
| Marketable                equity securities                       |   |                                        | 3,000 |   |   | 371 |   |   | - |   |   | 3,371 |   |
| Collateralized                mortgage obligations                |   |                                        | 9,996 |   |   | 13 |   |   | 10 |   |   | 9,999 |   |
|                                                              |   | $                                           | 128,076 |   | $ | 573 |   | $ | 2,072 |   | $ | 126,577 |   |

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Table                of Contents

**TIB                FINANCIALCORP.**

*(Dollars                in thousands except for share and per share                amounts)*

|                                                                   |   | **December                31, 2005**  |
|-------------------------------------------------------------------|--------|--------------------------------------------|
|                                                              |   |                                       | **Amortized****Cost**  |   |   | **Unrealized****Gains** |   |   | **Unrealized****Losses** |   |   | **Estimated****Fair                Value** |   |
| U.S.                Treasury securities                           |   | $                                          | 5,182 |   | $ | 1 |   | $ | 145 |   | $ | 5,038 |   |
| U.S.                Government agencies and corporations          |   |                                       | 64,145 |   |   | 5 |   |   | 1,738 |   |   | 62,412 |   |
| States                and political subdivisions—tax exempt |   |                                       | 9,594 |   |   | 91 |   |   | 101 |   |   | 9,584 |   |
| States                and political subdivisions—taxable    |   |                                       | 2,655 |   |   | 8 |   |   | - |   |   | 2,663 |   |
| Mortgage-backed                securities                         |   |                                       | 10,083 |   |   | 193 |   |   | 24 |   |   | 10,252 |   |
| Marketable                equity securities                       |   |                                       | 3,000 |   |   | 439 |   |   | - |   |   | 3,439 |   |
| Collateralized                mortgage obligations                |   |                                       | 3,996 |   |   | 80 |   |   | - |   |   | 4,076 |   |
|                                                              |   | $                                          | 98,655 |   | $ | 817 |   | $ | 2,008 |   | $ | 97,464 |   |

**Note      4 - Loans**

|                                                  |   |   | **September                30,****2006** |   |   | **December                31,****2005** |   |
|--------------------------------------------------|--------|--------|------------------------------------------|--------|--------|-----------------------------------------|--------|
| Real                estate mortgage loans:       |   |   |                                     |   |   |                                    |   |
| Commercial                                       |   | $      | 535,077                                  |   | $      | 451,969                                 |   |
| Residential                                      |   |   | 81,262                                   |   |   | 76,003                                  |   |
| Farmland                                         |   |   | 24,201                                   |   |   | 4,660                                   |   |
| Construction                and vacant land      |   |   | 148,115                                  |   |   | 125,207                                 |   |
| Commercial                and agricultural loans |   |   | 85,666                                   |   |   | 80,055                                  |   |
| Indirect                auto dealer loans        |   |   | 136,409                                  |   |   | 118,018                                 |   |
| Home                equity loans                 |   |   | 17,264                                   |   |   | 17,232                                  |   |
| Other                consumer loans              |   |   | 9,738                                    |   |   | 9,228                                   |   |
| Total                loans                       |   |   | 1,037,732                                |   |   | 882,372                                 |   |
|                                             |   |   |                                     |   |   |                                    |   |
| Net                deferred loan costs           |   |   | 1,658                                    |   |   | 1,652                                   |   |
| Loans,                net of deferred loan costs |   | $      | 1,039,390                                |   | $      | 884,024                                 |   |

**Note      5 - Allowance for Loan Losses**

|                                                             |   | **Nine                Months Ended****September                30,** |
|-------------------------------------------------------------|--------|----------------------------------------------------------------------|
|                                                        |   |                                                                 | **2006** |   |   | **2005** |   |
| Balance,                January 1                           |   | $                                                                    | 7,546 |   | $ | 6,243 |   |
| Provision                for loan losses charged to expense |   |                                                                 | 2,206 |   |   | 1,764 |   |
| Loans                charged off                            |   |                                                                 | (1,072 | ) |   | (923 | ) |
| Recoveries                of loans previously charged off   |   |                                                                 | 110 |   |   | 69 |   |
| Balance,                September 30                        |   | $                                                                    | 8,790 |   | $ | 7,153 |   |

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Table                of Contents

**TIB                FINANCIALCORP.**

*(Dollars                in thousands except for share and per share                amounts)*

**Note      6 - Earnings Per Share and Common Stock**

|                                                           |   | **Three                Months Ended****September                30,**  |
|-----------------------------------------------------------|--------|-----------------------------------------------------------------------------|
|                                                      |   |                                                                        | **2006** |   |   | **2005** |   |
| Basic                                                     |   |                                                                        | 11,618,362 |   |   | 11,429,434 |   |
| Dilutive                effect of options outstanding     |   |                                                                        | 256,292 |   |   | 399,646 |   |
| Dilutive                effect of restricted stock awards |   |                                                                        | 14,858 |   |   | - |   |
| Diluted                                                   |   |                                                                        | 11,889,512 |   |   | 11,829,080 |   |

|                                                           |   | **Nine                Months Ended****September                30,** |
|-----------------------------------------------------------|--------|----------------------------------------------------------------------|
|                                                      |   |                                                                 | **2006** |   |   | **2005** |   |
| Basic                                                     |   |                                                                 | 11,590,149 |   |   | 11,407,814 |   |
| Dilutive                effect of options outstanding     |   |                                                                 | 262,162 |   |   | 373,430 |   |
| Dilutive                effect of restricted stock awards |   |                                                                 | 11,818 |   |   | - |   |
| Diluted                                                   |   |                                                                 | 11,864,129 |   |   | 11,781,244 |   |

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Table                of Contents

**TIB                FINANCIALCORP.**

*(Dollars                in thousands except for share and per share                amounts)*

**Note      7 - Stock-Based Compensation**

|                                                                                                                                    |   |   | **Three                Months Ended****September                30,****2005** |   |   | **Nine                Months Ended****September                30,****2005** |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------------|--------|
| Net                income, as reported                                                                                             |   | $      | 2,054                                                                         |   | $      | 5,785                                                                        |   |
| Stock-based                compensation expense determined under fair value based method, net                of                tax |   |   | 57                                                                            |   |   | 184                                                                          |   |
| Pro                forma net income                                                                                                |   | $      | 1,997                                                                         |   | $      | 5,601                                                                        |   |
|                                                                                                                               |   |   |                                                                          |   |   |                                                                         |   |
| Basic                earnings per share as reported                                                                                |   | $      | 0.18                                                                          |   | $      | 0.51                                                                         |   |
| Pro                forma basic earnings per share                                                                                  |   |   | 0.17                                                                          |   |   | 0.49                                                                         |   |
| Diluted                earnings per share as reported                                                                              |   |   | 0.17                                                                          |   |   | 0.49                                                                         |   |
| Pro                forma diluted earnings per share                                                                                |   |   | 0.17                                                                          |   |   | 0.48                                                                         |   |
|                                                                                                                               |   |   |                                                                          |   |   |                                                                         |   |

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Table                of Contents

**TIB                FINANCIALCORP.**

*(Dollars                in thousands except for share and per share                amounts)*

|                                                         |   | **Three                  Months Ended****September                  30,**  |          | **Nine                  Months Ended****September                  30,** |
|---------------------------------------------------------|--------|---------------------------------------------------------------------------------|----------|--------------------------------------------------------------------------|
|                                                    |   |                                                                            | **2006** |                                                                     |   | **2005** |   |   | **2006** |   |   | **2005** |   |
| Stock                  Options                          |   | $                                                                               | 82       |                                                                     | $ | - |   | $ | 233 |   | $ | - |   |
| Restricted                  Stock                       |   |                                                                            | 69       |                                                                     |   | 39 |   |   | 188 |   |   | 39 |   |
| Total                  stock-based compensation expense |   | $                                                                               | 151      |                                                                     | $ | 39 |   | $ | 421 |   | $ | 39 |   |
|                                                    |   |                                                                            |     |                                                                     |   |   |   |   |   |   |   |   |   |
| Salaries                  and employee benefits         |   | $                                                                               | 104      |                                                                     | $ | - |   | $ | 294 |   | $ | - |   |
| Other                  expense                          |   |                                                                            | 47       |                                                                     |   | 39 |   |   | 127 |   |   | 39 |   |
| Total                  stock-based compensation expense |   | $                                                                               | 151      |                                                                     | $ | 39 |   | $ | 421 |   | $ | 39 |   |

|                                                                            |   | **Nine                  Months Ended****September                  30,**  |
|----------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------|
|                                                                       |   |                                                                           | **2006** |   |   | **2005** |   |
| Dividend                  yield                                            |   |                                                                           | 1.55 | % |   | 1.95 | % |
| Risk-free                  interest rate                                   |   |                                                                           | 4.89 | % |   | 4.11 | % |
| Expected                  option life                                      |   |                                                                           | 6.5                  years |   |   | 9                  years |   |
| Volatility                                                                 |   |                                                                           | 31 | % |   | 23 | % |
| Weighted                  average grant-date fair value of options granted |   | $                                                                              | 5.23 |   | $ | 3.72 |   |
|                                                                       |   |                                                                           |   |   |   |   |   |

| ·   | The                dividend yield was estimated using historical dividends paid and                market                value information for the Company’s stock. An increase in dividend yield                will decrease stock compensation                expense. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The                risk-free interest rate was developed using the U.S. Treasury yield                curve                for periods equal to the expected life of the options on the grant                date.                An increase in the risk-free interest rate will increase stock                compensation expense. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The                expected option life for the current period grants was estimated                using the                average vesting period and the term of the option based on guidance                contained in SAB 107. Prior to 2006, this assumption was based on                the                typical vesting schedule and estimates of future exercise behavior                patterns. An increase in the option life will increase stock compensation                expense. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The                volatility was estimated using historical volatility for periods                approximating the expected option life. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------|

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Table                of Contents

**TIB                FINANCIALCORP.**

*(Dollars                in thousands except for share and per share                amounts)*

*Stock      Options*

|                                                |   | **2006** |                  | **2005** |
|-----------------------------------------------------|--------|----------|------------------|----------|
|                                                |   |     | **Shares**  |     |   | **Weighted                Average****Exercise                Price** |   |   | **Shares** |   |   | **Weighted                Average****Exercise                Price** |   |
| Balance,                January 1,                  |   |     | 777,970          |     | $ | 8.06 |   |   | 818,388 |   | $ | 6.83 |   |
| Granted                                             |   |     | 85,624           |     |   | 15.13 |   |   | 149,000 |   |   | 12.86 |   |
| Exercised                                           |   |     | (128,936         | )        |   | 6.29 |   |   | (95,014 | ) |   | 5.68 |   |
| Expired                or forfeited                 |   |     | (8,600           | )        |   | 6.19 |   |   | (52,000 | ) |   | 10.04 |   |
| Balance,                September 30,               |   |     | 726,058          |     | $ | 9.23 |   |   | 820,374 |   | $ | 7.85 |   |
|                                                |   |     |             |     |   |   |   |   |   |   |   |   |   |
| Options                exercisable at September 30, |   |     | 263,534          |     | $ | 7.55 |   |   | 344,174 |   | $ | 6.64 |   |

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Table                  of Contents

**TIB                  FINANCIALCORP.**

*(Dollars                  in thousands except for share and per share                  amounts)*

|                                        |   | **Outstanding                Options**  |            | **Options                Exercisable** |
|---------------------------------------------|--------|----------------------------------------------|------------|----------------------------------------|
| **Range                of Exercise Prices** |   |                                         | **Number** |                                   |   | **Weighted                Average****Remaining****Contractual                Life** |   |   | **Weighted                Average****Exercise                Price** |   |   | **Number** |   |   | **Weighted                Average****Exercise                Price** |   |
| $4.50                - $6.20                |   |                                         | 251,900    |                                   |   | 4.39 |   | $ | 5.94 |   |   | 87,100 |   | $ | 5.93 |   |
| 6.33                - 11.38                 |   |                                         | 243,334    |                                   |   | 4.31 |   |   | 8.36 |   |   | 144,034 |   |   | 7.42 |   |
| 11.40                - 16.20                |   |                                         | 230,824    |                                   |   | 8.79 |   |   | 13.74 |   |   | 32,400 |   |   | 12.46 |   |
| $4.50                - $16.20               |   |                                         | 726,058    |                                   |   | 5.76 |   | $ | 9.23 |   |   | 263,534 |   | $ | 7.55 |   |
|                                        |   |                                         |       |                                   |   |   |   |   |   |   |   |   |   |   |   |   |

*Restricted      Stock*

|                                  |   | **2006** |            | **2005** |
|---------------------------------------|--------|----------|------------|----------|
|                                  |   |     | **Shares** |     |   | **Weighted                Average****Grant-Date****Market                Value** |   |   | **Shares** |   |   | **Weighted                Average****Grant-Date****Market                Value** |   |
| Balance,                January 1,    |   |     | 82,000     |     | $ | 15.64 |   |   | - |   | $ | - |   |
| Granted                               |   |     | 8,680      |     |   | 15.50 |   |   | 70,000 |   |   | 15.58 |   |
| Vested                                |   |     | (12,000    | )        |   | 15.58 |   |   | - |   |   | - |   |
| Expired                or forfeited   |   |     | (10,000    | )        |   | 15.58 |   |   | - |   |   | - |   |
| Balance,                September 30, |   |     | 68,680     |     | $ | 15.63 |   |   | 70,000 |   | $ | 15.58 |   |

**Note      8 - Other Borrowings**

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Table                    of Contents

**TIB                    FINANCIALCORP.**

*(Dollars                    in thousands except for share and per share                    amounts)*

**Note      9 - Capital Adequacy**

|                                                    |   |   | **Well****Capitalized****Requirement**  |   |   | **Adequately****Capitalized****Requirement** |   |   | **September                30,****2006****Actual** |   |   | **December                31,****2005****Actual** |   |
|---------------------------------------------------------|--------|--------|----------------------------------------------|--------|--------|----------------------------------------------|--------|--------|----------------------------------------------------|--------|--------|---------------------------------------------------|--------|
| Tier                1 Capital (to Average Assets)       |   |   |                                         |   |   |                                         |   |   |                                               |   |   |                                              |   |
| Holding                company                          |   |   | N/A                                          |   |   | 3                4.0                    | %      |   | 9.0                                                | %      |   | 8.4                                               | %      |
| Bank                                                    |   |   | 3                5.0                    | %      |   | 3                4.0                    | %      |   | 9.7                                                | %      |   | 8.7                                               | %      |
|                                                    |   |   |                                         |   |   |                                         |   |   |                                               |   |   |                                              |   |
| Tier                1 Capital (to Risk Weighted Assets) |   |   |                                         |   |   |                                         |   |   |                                               |   |   |                                              |   |
| Holding                company                          |   |   | N/A                                          |   |   | 3                4.0                    | %      |   | 10.2                                               | %      |   | 9.6                                               | %      |
| Bank                                                    |   |   | 3                6.0                    | %      |   | 3                4.0                    | %      |   | 11.0                                               | %      |   | 9.9                                               | %      |
|                                                    |   |   |                                         |   |   |                                         |   |   |                                               |   |   |                                              |   |
| Total                Capital (to Risk Weighted Assets)  |   |   |                                         |   |   |                                         |   |   |                                               |   |   |                                              |   |
| Holding                company                          |   |   | N/A                                          |   |   | 3                8.0                    | %      |   | 11.9                                               | %      |   | 10.9                                              | %      |
| Bank                                                    |   |   | 3                10.0                   | %      |   | 3                8.0                    | %      |   | 11.9                                               | %      |   | 10.8                                              | %      |
|                                                    |   |   |                                         |   |   |                                         |   |   |                                               |   |   |                                              |   |

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Table          of Contents

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

**Forward-looking      Statements**

**Quarterly      Summary**

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Table          of Contents

**Three      Months Ended September 30, 2006 and 2005:**

***Results      of Operations***

***Net      Interest Income***

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Table          of Contents

***Provision      for Loan Losses***

*** ***

***Non-interest      Income***

***Non-interest      Expense***

***Provision      for Income Taxes***

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Table          of Contents

**Nine      Months Ended September 30, 2006 and 2005:**

***Results      of Operations***

***Net      Interest Income***

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Table          of Contents

|                                                                                 |   | **2006** |                         | **2005** |
|--------------------------------------------------------------------------------------|--------|----------|-------------------------|----------|
|  *(Dollars                in thousands)*                                        |   |     | **Average****Balances** |     |   | **Income/****Expense** |   |   | **Yields/****Rates** |   |   | **Average****Balances** |   |   | **Income/****Expense** |   |   | **Yields/****Rates** |   |
| Interest-earning                assets:                                              |   |     |                    |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                (1)(2)                                                          |   | $        | 966,898                 |     | $ | 56,955 |   |   | 7.88 | % | $ | 743,018 |   | $ | 38,468 |   |   | 6.92 | % |
| Investment                securities (2)                                             |   |     | 121,587                 |     |   | 4,526 |   |   | 4.98 | % |   | 83,021 |   |   | 2,829 |   |   | 4.56 | % |
| Interest-bearing                deposits in other banks                              |   |     | 455                     |     |   | 17 |   |   | 5.00 | % |   | 390 |   |   | 8 |   |   | 2.68 | % |
| Federal                Home Loan Bank stock                                          |   |     | 4,157                   |     |   | 177 |   |   | 5.72 | % |   | 2,706 |   |   | 81 |   |   | 4.00 | % |
| Federal                funds sold                                                    |   |     | 16,724                  |     |   | 584 |   |   | 4.67 | % |   | 41,906 |   |   | 928 |   |   | 2.96 | % |
| Total                interest-earning assets                                         |   |     | 1,109,821               |     |   | 62,259 |   |   | 7.50 | % |   | 871,041 |   |   | 42,314 |   |   | 6.49 | % |
|                                                                                 |   |     |                    |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-earning                assets:                                          |   |     |                    |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                and due from banks                                               |   |     | 22,918                  |     |   |   |   |   |   |   |   | 21,863 |   |   |   |   |   |   |   |
| Premises                and equipment, net                                           |   |     | 31,677                  |     |   |   |   |   |   |   |   | 26,925 |   |   |   |   |   |   |   |
| Allowance                for loan losses                                             |   |     | (8,139                  | )        |   |   |   |   |   |   |   | (6,744 | ) |   |   |   |   |   |   |
| Other                assets                                                          |   |     | 31,694                  |     |   |   |   |   |   |   |   | 30,782 |   |   |   |   |   |   |   |
| Total                non-interest-earning assets                                     |   |     | 78,150                  |     |   |   |   |   |   |   |   | 72,826 |   |   |   |   |   |   |   |
| Total                assets                                                          |   | $        | 1,187,971               |     |   |   |   |   |   |   | $ | 943,867 |   |   |   |   |   |   |   |
|                                                                                 |   |     |                    |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing                liabilities:                                         |   |     |                    |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing                deposits:                                            |   |     |                    |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOW                accounts                                                          |   | $        | 135,670                 |     | $ | 2,616 |   |   | 2.58 | % | $ | 90,598 |   | $ | 561 |   |   | 0.83 | % |
| Money                market                                                          |   |     | 167,918                 |     |   | 4,330 |   |   | 3.45 | % |   | 167,428 |   |   | 2,597 |   |   | 2.07 | % |
| Savings                deposits                                                      |   |     | 50,019                  |     |   | 260 |   |   | 0.69 | % |   | 48,175 |   |   | 178 |   |   | 0.49 | % |
| Time                deposits                                                         |   |     | 464,049                 |     |   | 15,451 |   |   | 4.45 | % |   | 328,179 |   |   | 8,334 |   |   | 3.39 | % |
| Total                interest-bearing deposits                                       |   |     | 817,656                 |     |   | 22,657 |   |   | 3.70 | % |   | 634,380 |   |   | 11,670 |   |   | 2.46 | % |
|                                                                                 |   |     |                    |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                interest-bearing liabilities:                                   |   |     |                    |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Short-term                borrowings and FHLB advances                               |   |     | 69,029                  |     |   | 2,412 |   |   | 4.67 | % |   | 39,688 |   |   | 887 |   |   | 2.98 | % |
| Long-term                borrowings                                                  |   |     | 24,256                  |     |   | 1,634 |   |   | 9.01 | % |   | 17,069 |   |   | 1,173 |   |   | 9.19 | % |
| Total                interest-bearing liabilities                                    |   |     | 910,941                 |     |   | 26,703 |   |   | 3.92 | % |   | 691,137 |   |   | 13,730 |   |   | 2.66 | % |
|                                                                                 |   |     |                    |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-bearing                liabilities and shareholders’ equity:      |   |     |                    |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand                deposits                                                       |   |     | 179,569                 |     |   |   |   |   |   |   |   | 171,108 |   |   |   |   |   |   |   |
| Other                liabilities                                                     |   |     | 17,189                  |     |   |   |   |   |   |   |   | 12,019 |   |   |   |   |   |   |   |
| Shareholders’                equity                                            |   |     | 80,272                  |     |   |   |   |   |   |   |   | 69,603 |   |   |   |   |   |   |   |
| Total                non-interest-bearing liabilities and shareholders’ equity |   |     | 277,030                 |     |   |   |   |   |   |   |   | 252,730 |   |   |   |   |   |   |   |
| Total                liabilities and shareholders’ equity                      |   | $        | 1,187,971               |     |   |   |   |   |   |   | $ | 943,867 |   |   |   |   |   |   |   |
|                                                                                 |   |     |                    |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                rate spread (tax equivalent basis)                           |   |     |                    |     |   |   |   |   | 3.58 | % |   |   |   |   |   |   |   | 3.83 | % |
| Net                interest income (tax equivalent basis)                            |   |     |                    |     | $ | 35,556 |   |   |   |   |   |   |   | $ | 28,584 |   |   |   |   |
| Net                interest margin (3) (tax equivalent basis)                        |   |     |                    |     |   |   |   |   | 4.28 | % |   |   |   |   |   |   |   | 4.39 | % |
|                                                                                 |   |     |                    |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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

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Table          of Contents

***Changes      in Net Interest Income***

|                                                         |   | **2006                Compared to 2005 (1)****Due                to Changes in**  |
|---------------------------------------------------------|--------|----------------------------------------------------------------------------------------|
| *(Dollars                in thousands)*                 |   |                                                                                   | **Average****Volume** |   |   | **Average****Rate** |   |   | **Net                Increase** |   |
| Interest                income                          |   |                                                                                   |   |   |   |   |   |   |   |   |
| Loans                (2)                                |   | $                                                                                      | 12,687 |   | $ | 5,800 |   | $ | 18,487 |   |
| Investment                securities (2)                |   |                                                                                   | 1,415 |   |   | 282 |   |   | 1,697 |   |
| Interest-bearing                deposits in other banks |   |                                                                                   | 2 |   |   | 7 |   |   | 9 |   |
| Federal                Home Loan Bank stock             |   |                                                                                   | 54 |   |   | 42 |   |   | 96 |   |
| Federal                funds sold                       |   |                                                                                   | (722 | ) |   | 378 |   |   | (344 | ) |
| Total                interest income                    |   |                                                                                   | 13,436 |   |   | 6,509 |   |   | 19,945 |   |
|                                                    |   |                                                                                   |   |   |   |   |   |   |   |   |
| Interest                expense                         |   |                                                                                   |   |   |   |   |   |   |   |   |
| NOW                accounts                             |   |                                                                                   | 391 |   |   | 1,664 |   |   | 2,055 |   |
| Money                market                             |   |                                                                                   | 8 |   |   | 1,725 |   |   | 1,733 |   |
| Savings                deposits                         |   |                                                                                   | 7 |   |   | 75 |   |   | 82 |   |
| Time                deposits                            |   |                                                                                   | 4,063 |   |   | 3,054 |   |   | 7,117 |   |
| Short-term                borrowings and FHLB advances  |   |                                                                                   | 865 |   |   | 660 |   |   | 1,525 |   |
| Long-term                borrowings                     |   |                                                                                   | 485 |   |   | (24 | ) |   | 461 |   |
| Total                interest expense                   |   |                                                                                   | 5,819 |   |   | 7,154 |   |   | 12,973 |   |
|                                                    |   |                                                                                   |   |   |   |   |   |   |   |   |
| Change                in net interest income            |   | $                                                                                      | 7,617 |   | $ | (645 | ) | $ | 6,972 |   |
|                                                    |   |                                                                                   |   |   |   |   |   |   |   |   |
| ________                                                |

|  (1)  | The change in interest due to both rate              and              volume has been allocated to the volume and rate components in proportion              to the relationship of the dollar amounts of the absolute change in              each.                         |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  (2)  |  Interest income includes the effects              of              a tax equivalent adjustment using applicable statutory tax rates in              adjusting tax exempt interest on tax exempt investment securities and              loans to a fully taxable basis. |

***Provision      for Loan Losses***

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Table          of Contents

***Non-interest      Income***

***Non-interest      Expense***

***Stock-Based      Compensation Expense***

***Provision      for Income Taxes***

| ·   | The                higher overall level of pre-tax income from continuing operations                resulting in a higher statutory                rate; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The                lower proportion of tax free interest income to pre-tax income results                in                the provision for income taxes approaching statutory rates;                and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The                effect of stock-based compensation expense, recognized beginning                January                1, 2006 subsequent to the adoption of SFAS 123R, resulting from incentive                stock options granted to employees which is not deductible for federal                and                state income tax purposes. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table          of Contents

***Balance      Sheet***

***Loan      Portfolio Composition***

|                                            |   |   | **Commercial****Real                Estate** |   |   | **Percentage****Composition** |   |
|-------------------------------------------------|--------|--------|----------------------------------------------|--------|--------|-------------------------------|--------|
| Mixed                Use Commercial/Residential |   | $      | 89,545                                       |   |   | 17                            | %      |
| 1-4                Family and Multi Family      |   |   | 78,241                                       |   |   | 15                            | %      |
| Hotels/Motels                                   |   |   | 77,842                                       |   |   | 14                            | %      |
| Guesthouses                                     |   |   | 76,033                                       |   |   | 14                            | %      |
| Office                Buildings                 |   |   | 69,059                                       |   |   | 13                            | %      |
| Retail                Buildings                 |   |   | 53,497                                       |   |   | 10                            | %      |
| Restaurants                                     |   |   | 31,221                                       |   |   | 6                             | %      |
| Marinas/Docks                                   |   |   | 26,383                                       |   |   | 5                             | %      |
| Warehouse                and Industrial         |   |   | 19,872                                       |   |   | 4                             | %      |
| Other                                           |   |   | 13,384                                       |   |   | 2                             | %      |
| Total                                           |   | $      | 535,077                                      |   |   | 100                           | %      |
|                                            |   |   |                                         |   |   |                          |   |

|                                                                                  |   |   | **Construction****and****Vacant                  Land** |   |   | **Percentage****Composition** |   |
|----------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------|--------|--------|-------------------------------|--------|
| Construction:                                                                    |   |   |                                                    |   |   |                          |   |
|   Residential                  - owner                  occupied       |   | $      | 24,097                                                  |   |   | 16                            | %      |
|   Residential                  -                  commercial developer |   |   | 33,514                                                  |   |   | 23                            | %      |
|   Commercial                  structure                                |   |   | 17,606                                                  |   |   | 12                            | %      |
|   Total                construction                                    |   |   | 75,217                                                  |   |   | 51                            | %      |
| Land:                                                                            |   |   |                                                    |   |   |                          |   |
|   Raw                  land                                            |   |   | 6,440                                                   |   |   | 4                             | %      |
|   Residential                  lots                                    |   |   | 20,189                                                  |   |   | 14                            | %      |
|   Land                  development                                    |   |   | 14,750                                                  |   |   | 10                            | %      |
|   Commercial                  lots                                     |   |   | 31,519                                                  |   |   | 21                            | %      |
|   Total                  land                                          |   |   | 72,898                                                  |   |   | 49                            | %      |
|                                                                             |   |   |                                                    |   |   |                          |   |
| Total                                                                            |   | $      | 148,115                                                 |   |   | 100                           | %      |
|                                                                             |   |   |                                                    |   |   |                          |   |

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Table          of Contents

***Non-performing      Assets***

| *(Dollars                in thousands)*                                       |   |   | **September                30,****2006** |   |   | **December                31,****2005** |   |
|-------------------------------------------------------------------------------|--------|--------|------------------------------------------|--------|--------|-----------------------------------------|--------|
| Total                nonaccrual loans                                         |   | $      | 1,701                                    |   | $      | 956                                     |   |
| Accruing                loans delinquent 90 days or more (a)                  |   |   | -                                        |   |   | -                                       |   |
| Total                non-performing loans                                     |   |   | 1,701                                    |   |   | 956                                     |   |
|                                                                          |   |   |                                     |   |   |                                    |   |
| Repossessed                personal property (indirect auto dealer loans)     |   |   | 1,502                                    |   |   | 962                                     |   |
| Other                real estate owned (b)                                    |   |   | -                                        |   |   | 190                                     |   |
| Other                assets (b)                                               |   |   | 2,821                                    |   |   | 2,815                                   |   |
| Total                non-performing assets                                    |   | $      | 6,024                                    |   | $      | 4,923                                   |   |
|                                                                          |   |   |                                     |   |   |                                    |   |
| Allowance                for loan losses                                      |   | $      | 8,790                                    |   | $      | 7,546                                   |   |
|                                                                          |   |   |                                     |   |   |                                    |   |
| Non-performing                assets as a percent of total assets             |   |   | 0.48                                     | %      |   | 0.46                                    | %      |
| Non-performing                loans as a percent of gross loans               |   |   | 0.16                                     | %      |   | 0.11                                    | %      |
| Allowance                for loan losses as a percent of non-performing loans |   |   | 517                                      | %      |   | 789                                     | %      |
| Net                charge-offs as a percent of average loans (c)              |   |   | 0.13                                     | %      |   | 0.14                                    | %      |
|  ________                                                                |   |   |                                     |   |   |                                    |   |

|  (a)                    | Non-performing loans exclude the $1.6 million                loan                discussed below that is guaranteed for both principal and interest                by the                USDA.                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|-----------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  (b)     |  In 1998, The Bank made a $10.0 million loan to                construct a lumber mill in northern Florida. Of this amount, $6.4                million                had been sold by the Bank to other lenders. The loan was partially                guaranteed as to principal and interest by the USDA. In addition                to                business real estate and equipment, the loan was collateralized by                the                business owner’s interest in a trust. Under provisions of the trust                agreement, beneficiaries cannot receive trust assets until November                2010.  |

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|  (c)   |  This                ratio is computed by dividing annualized net charge offs for the                nine                months ended September 30, 2006 and net charge offs for the twelve                months                ended December 31, 2005, by the average balance of loans outstanding                for                the nine months ended September 30, 2006 and by the average balance                of                loans outstanding for the year ended December 31, 2005,                respectively.  |
|-----------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

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**Capital      and Liquidity**

**Asset      and Liability Management**

----

Table          of Contents

| *(Dollars                in thousands)*                |   |   | **3                Months****or                Less** |   |   | **4                to 6****Months** |   |   | **7                to 12****Months** |   |   | **1                to 5****Years** |   |   | **Over                5****Years** |   |   | **Total** |   |
|--------------------------------------------------------|--------|--------|-------------------------------------------------------|--------|--------|-------------------------------------|--------|--------|--------------------------------------|--------|--------|------------------------------------|--------|--------|------------------------------------|--------|--------|-----------|--------|
| **Interest-earning                assets:**            |   |   |                                                  |   |   |                                |   |   |                                 |   |   |                               |   |   |                               |   |   |      |   |
| Loans                                                  |   | $      | 381,524                                               |   | $      | 34,320                              |   | $      | 69,888                               |   | $      | 435,503                            |   | $      | 116,497                            |   | $      | 1,037,732 |   |
| Investment                securities-taxable           |   |   | 10,331                                                |   |   | 711                                 |   |   | 16,321                               |   |   | 41,498                             |   |   | 43,651                             |   |   | 112,512   |   |
| Investment                securities-tax exempt        |   |   | -                                                     |   |   | 335                                 |   |   | 966                                  |   |   | 2,873                              |   |   | 6,520                              |   |   | 10,694    |   |
| Marketable                equity securities            |   |   | 3,371                                                 |   |   | -                                   |   |   | -                                    |   |   | -                                  |   |   | -                                  |   |   | 3,371     |   |
| FHLB                stock                              |   |   | 7,548                                                 |   |   | -                                   |   |   | -                                    |   |   | -                                  |   |   | -                                  |   |   | 7,548     |   |
| Interest-bearing                deposit in other banks |   |   | 253                                                   |   |   | -                                   |   |   | -                                    |   |   | -                                  |   |   | -                                  |   |   | 253       |   |
| Total                interest-earning assets           |   |   | 403,027                                               |   |   | 35,366                              |   |   | 87,175                               |   |   | 479,874                            |   |   | 166,668                            |   |   | 1,172,110 |   |
|                                                   |   |   |                                                  |   |   |                                |   |   |                                 |   |   |                               |   |   |                               |   |   |      |   |
| **Interest-bearing                liabilities:**       |   |   |                                                  |   |   |                                |   |   |                                 |   |   |                               |   |   |                               |   |   |      |   |
| NOW                accounts                            |   |   | 119,899                                               |   |   | -                                   |   |   | -                                    |   |   | -                                  |   |   | -                                  |   |   | 119,899   |   |
| Money                market                            |   |   | 162,713                                               |   |   | -                                   |   |   | -                                    |   |   | -                                  |   |   | -                                  |   |   | 162,713   |   |
| Savings                deposits                        |   |   | 47,309                                                |   |   | -                                   |   |   | -                                    |   |   | -                                  |   |   | -                                  |   |   | 47,309    |   |
| Time                deposits                           |   |   | 64,278                                                |   |   | 148,537                             |   |   | 184,467                              |   |   | 88,954                             |   |   | 7                                  |   |   | 486,243   |   |
| Notes                payable                           |   |   | -                                                     |   |   | -                                   |   |   | -                                    |   |   | -                                  |   |   | 4,000                              |   |   | 4,000     |   |
| Subordinated                debentures                 |   |   | 25,000                                                |   |   | -                                   |   |   | -                                    |   |   | -                                  |   |   | 8,000                              |   |   | 33,000    |   |
| Other                borrowings                        |   |   | 145,249                                               |   |   | -                                   |   |   | -                                    |   |   | -                                  |   |   | -                                  |   |   | 145,249   |   |
| Total                interest-bearing liabilities      |   |   | 564,448                                               |   |   | 148,537                             |   |   | 184,467                              |   |   | 88,954                             |   |   | 12,007                             |   |   | 998,413   |   |
|                                                   |   |   |                                                  |   |   |                                |   |   |                                 |   |   |                               |   |   |                               |   |   |      |   |
| Interest                sensitivity gap                |   | $      | (161,421                                              | )      | $      | (113,171                            | )      | $      | (97,292                              | )      | $      | 390,920                            |   | $      | 154,661                            |   | $      | 173,697   |   |
|                                                   |   |   |                                                  |   |   |                                |   |   |                                 |   |   |                               |   |   |                               |   |   |      |   |
| Cumulative                interest sensitivity gap     |   | $      | (161,421                                              | )      | $      | (274,592                            | )      | $      | (371,884                             | )      | $      | 19,036                             |   | $      | 173,697                            |   | $      | 173,697   |   |
|                                                   |   |   |                                                  |   |   |                                |   |   |                                 |   |   |                               |   |   |                               |   |   |      |   |
| Cumulative                sensitivity ratio            |   |   | (13.8                                                 | %)     |   | (23.4                               | %)     |   | (31.7                                | %)     |   | 1.6                                | %      |   | 14.8                               | %      |   | 14.8      | %      |
|                                                   |   |   |                                                  |   |   |                                |   |   |                                 |   |   |                               |   |   |                               |   |   |      |   |

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Table          of Contents

**Commitments**

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Table          of Contents

**Item      3. Quantitative and Qualitative Disclosures About Market      Risk**

**Item      4. Controls and Procedures**

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Table          of Contents

**PART      II. OTHER INFORMATION**

**Item      1a. Risk Factors**

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

**Item      5. Other Information**

**Item      6. Exhibits**

|   | Exhibit                10.1 | -      | Employment                Agreement between Stephen J. Gilhooly, TIB Financial Corp., and TIB                Bank                effective September 27, 2006 *                                                                                                              |
|--------|-----------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Exhibit                10.2 | -      | Employment                Agreement between Michael D. Carrigan, TIB Financial Corp., and TIB                Bank                effective March 1, 2004.                                                                                                                    |
|   | Exhibit                10.3 | -      | Employment                Agreement between Alma Shuckhart, TIB Financial Corp., and TIB Bank                effective March 1, 2004.                                                                                                                                        |
|   | Exhibit                31.1 | -      | Chief                Executive Officer’s certification required under Section 302 of                Sarbanes-Oxley Act of 2002                                                                                                                                         |
|   | Exhibit                31.2 | -      | Chief                Financial Officer’s certification required under Section 302 of                Sarbanes-Oxley Act of 2002                                                                                                                                         |
|   | Exhibit                32.1 | -      | Chief                Executive Officer’s certification required under Section 906 of                Sarbanes-Oxley Act of 2002                                                                                                                                         |
|   | Exhibit                32.2 |   | Chief                Financial Officer’s certification required under Section 906 of                Sarbanes-Oxley Act of 2002                                                                                                                                         |
|   |                        |   |                                                                                                                                                                                                                                                                         |
|   | *                           |   | Previously                filed by the Company as an Exhibit (with the same respective Exhibit                Number as indicated herein) to the Company’s September 25, 2006 8-K and                such document is incorporated herein by                reference. |

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Table          of Contents

**SIGNATURES**

|                                              |   | TIB                FINANCIAL CORP.                                                                                   |
|---------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------|
|   Date:                November 8, 2006 |   |   /s/                Edward V. Lett                                                                        |
|                                              |   | Edward                V. LettPresident                and Chief Executive Officer                                    |
|                                              |   |                                                                                                                 |
|   Date:                November 8, 2006 |   |   /s/                Stephen J. Gilhooly                                                                   |
|                                              |   | Stephen                J. GilhoolyExecutive                Vice President and Chief Financial                Officer |

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