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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 has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  £Yes   £No |
|                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                         |                                 |
| Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “accelerated filer”, “ large accelerated filer” and  “smaller reporting company” in Rule 12b-2 of the Exchange Act (Check one):                                                                                |
| £ Large accelerated filer                                                                                                                                                                                                                                                                                                                                                                                                             | £ Accelerated filer                                                                                                                     |                                 |
|                     T Non-accelerated filer                                                                                                                                                                                                                                                                                            |                   £ Smaller reporting company |                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                         |                                 |
| Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  £Yes    TNo                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                         |                                 |
| Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:                                                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                         |                                 |
| Common Stock, $0.10 Par Value                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                         | 14,887,922                           |
| Class                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                         | Outstanding as of July 31, 2010      |

|  PART I. FINANCIAL INFORMATION                                                                                                           |  3  |
|-----------------------------------------------------------------------------------------------------------------------------------------------|----------|
|                                                                                                                                          |     |
|      ITEM 1. FINANCIAL STATEMENTS                                                                                    |  3  |
|                                                                                                                                          |     |
|      ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS    |  22 |
|                                                                                                                                          |     |
|      ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                               |  41 |
|                                                                                                                                          |     |
|      ITEM 4. CONTROLS AND PROCEDURES                                                                                 |  42 |
|                                                                                                                                          |     |
|  PART II. OTHER INFORMATION                                                                                                              |  42 |
|                                                                                                                                          |     |
|      ITEM 1A. RISK FACTORS                                                                                           |  42 |
|                                                                                                                                          |     |
|      ITEM 4. OTHER INFORMATION                                                                                       | 44  |

| TIB FINANCIAL CORP.CONSOLIDATED BALANCE SHEETS(Unaudited)                        (Dollars in thousands, except per share amounts)  |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                            |   | June 30, 2010 |   |   | December 31, 2009 |   |
|                                                                                                                                                                                                                                                            |   |   |   |   |   |   |
| Assets                                                                                                                                                                                                                                                          |   |   |   |   |   |   |
| Cash and due from banks                                                                                                                                                                                                                                         |   | $ | 157,876 |   |   | $ | 167,402 |   |
|                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
| Investment securities available for sale                                                                                                                                                                                                                        |   |   | 282,621 |   |   |   | 250,339 |   |
|                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
| Loans, net of deferred loan costs and fees                                                                                                                                                                                                                      |   |   | 1,101,672 |   |   |   | 1,197,516 |   |
| Less: Allowance for loan losses                                                                                                                                                                                                                                 |   |   | 27,710 |   |   |   | 29,083 |   |
| Loans, net                                                                                                                                                                                                                                                      |   |   | 1,073,962 |   |   |   | 1,168,433 |   |
|                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
| Premises and equipment, net                                                                                                                                                                                                                                     |   |   | 51,480 |   |   |   | 40,822 |   |
| Goodwill                                                                                                                                                                                                                                                        |   |   | 622 |   |   |   | 622 |   |
| Intangible assets, net                                                                                                                                                                                                                                          |   |   | 5,888 |   |   |   | 6,667 |   |
| Other real estate owned                                                                                                                                                                                                                                         |   |   | 38,699 |   |   |   | 21,352 |   |
| Accrued interest receivable and other assets                                                                                                                                                                                                                    |   |   | 47,917 |   |   |   | 49,770 |   |
| Total Assets                                                                                                                                                                                                                                                    |   | $ | 1,659,065 |   |   | $ | 1,705,407 |   |
|                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
| Liabilities and Shareholders’ Equity                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
| Liabilities                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Deposits:                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |
| Noninterest-bearing demand                                                                                                                                                                                                                                      |   | $ | 178,159 |   |   | $ | 171,821 |   |
| Interest-bearing                                                                                                                                                                                                                                                |   |   | 1,163,572 |   |   |   | 1,197,563 |   |
| Total deposits                                                                                                                                                                                                                                                  |   |   | 1,341,731 |   |   |   | 1,369,384 |   |
|                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
| Federal Home Loan Bank (FHLB) advances                                                                                                                                                                                                                          |   |   | 125,000 |   |   |   | 125,000 |   |
| Short-term borrowings                                                                                                                                                                                                                                           |   |   | 73,894 |   |   |   | 80,475 |   |
| Long-term borrowings                                                                                                                                                                                                                                            |   |   | 63,000 |   |   |   | 63,000 |   |
| Accrued interest payable and other liabilities                                                                                                                                                                                                                  |   |   | 16,404 |   |   |   | 12,030 |   |
| Total liabilities                                                                                                                                                                                                                                               |   |   | 1,620,029 |   |   |   | 1,649,889 |   |
|                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
| Shareholders’ equity                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
| Preferred stock – $.10 par value: 5,000,000 shares authorized, 37,000 shares issued and outstanding, liquidation preference of $38,645 and $37,697, respectively                                                                                          |   |   | 34,110 |   |   |   | 33,730 |   |
| Common stock - $.10 par value: 750,000,000 and 100,000,000 shares authorized, 14,961,376 shares issued, 14,887,922 shares outstanding                                                                                                                           |   |   | 1,496 |   |   |   | 1,496 |   |
| Additional paid in capital                                                                                                                                                                                                                                      |   |   | 74,929 |   |   |   | 74,673 |   |
| Accumulated deficit                                                                                                                                                                                                                                             |   |   | (69,524 | ) |   |   | (49,994 | ) |
| Accumulated other comprehensive loss                                                                                                                                                                                                                            |   |   | (1,406 | ) |   |   | (3,818 | ) |
| Treasury stock, at cost, 73,454 shares                                                                                                                                                                                                                          |   |   | (569 | ) |   |   | (569 | ) |
| Total shareholders’ equity                                                                                                                                                                                                                                |   |   | 39,036 |   |   |   | 55,518 |   |
|                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
| Total Liabilities and Shareholders’ Equity                                                                                                                                                                                                                |   | $ | 1,659,065 |   |   | $ | 1,705,407 |   |
|                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
| See accompanying notes to consolidated financial statements                                                                                                                                                                                                     |   |

----

|                                                                                                     |   | Three Months EndedJune 30 |    |   | Six Months EndedJune 30 |   |
|----------------------------------------------------------------------------------------------------------|--------|---------------------------|---------|--------|-------------------------|--------|
|                                                                                                     |   | 2010                      |    |   | 2009                    |   |   | 2010 |   |   | 2009 |   |
| Interest and dividend income                                                                             |   |                      |    |   |                    |   |   |   |   |   |   |   |
| Loans, including fees                                                                                    |   | $                         | 14,636  |   |                    | $      | 17,352 |   |   | $ | 30,635 |   |   |   | 35,191 |   |
| Investment securities:                                                                                   |   |                      |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                                                                  |   |                      | 2,229   |   |                    |   | 3,410 |   |   |   | 4,373 |   |   |   | 6,314 |   |
| Tax-exempt                                                                                               |   |                      | 41      |   |                    |   | 74 |   |   |   | 108 |   |   |   | 149 |   |
| Interest-bearing deposits in other banks                                                                 |   |                      | 75      |   |                    |   | 20 |   |   |   | 149 |   |   |   | 40 |   |
| Federal Home Loan Bank stock                                                                             |   |                      | 7       |   |                    |   | - |   |   |   | 10 |   |   |   | (19 | ) |
| Federal funds sold and securities purchased under agreements to resell                                   |   |                      | -       |   |                    |   | 2 |   |   |   | - |   |   |   | 5 |   |
| Total interest and dividend income                                                                       |   |                      | 16,988  |   |                    |   | 20,858 |   |   |   | 35,275 |   |   |   | 41,680 |   |
|                                                                                                     |   |                      |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                                                                         |   |                      |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                                                 |   |                      | 4,509   |   |                    |   | 7,151 |   |   |   | 9,411 |   |   |   | 15,050 |   |
| Federal Home Loan Bank advances                                                                          |   |                      | 1,181   |   |                    |   | 1,279 |   |   |   | 2,395 |   |   |   | 2,685 |   |
| Short-term borrowings                                                                                    |   |                      | 25      |   |                    |   | 26 |   |   |   | 48 |   |   |   | 50 |   |
| Long-term borrowings                                                                                     |   |                      | 671     |   |                    |   | 708 |   |   |   | 1,325 |   |   |   | 1,444 |   |
| Total interest expense                                                                                   |   |                      | 6,386   |   |                    |   | 9,164 |   |   |   | 13,179 |   |   |   | 19,229 |   |
|                                                                                                     |   |                      |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                                                                                      |   |                      | 10,602  |   |                    |   | 11,694 |   |   |   | 22,096 |   |   |   | 22,451 |   |
|                                                                                                     |   |                      |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Provision for loan losses                                                                                |   |                      | 7,700   |   |                    |   | 5,763 |   |   |   | 12,625 |   |   |   | 11,072 |   |
| Net interest income after provision for loan losses                                                      |   |                      | 2,902   |   |                    |   | 5,931 |   |   |   | 9,471 |   |   |   | 11,379 |   |
|                                                                                                     |   |                      |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest income                                                                                      |   |                      |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Service charges on deposit accounts                                                                      |   |                      | 839     |   |                    |   | 1,202 |   |   |   | 1,754 |   |   |   | 2,168 |   |
| Fees on mortgage loans originated and sold                                                               |   |                      | 481     |   |                    |   | 318 |   |   |   | 764 |   |   |   | 433 |   |
| Investment advisory and trust fees                                                                       |   |                      | 313     |   |                    |   | 228 |   |   |   | 620 |   |   |   | 421 |   |
| Loss on sale of indirect auto loans                                                                      |   |                      | -       |   |                    |   | - |   |   |   | (346 | ) |   |   | - |   |
| Other income                                                                                             |   |                      | 868     |   |                    |   | 489 |   |   |   | 1,481 |   |   |   | 998 |   |
| Investment securities gains (losses), net                                                                |   |                      | 993     |   |                    |   | 835 |   |   |   | 2,635 |   |   |   | 1,454 |   |
| Other-than-temporary impairment losses on investments prior to April 1, 2009 adoption of ASC 320-10-65-1 |   |                      | -       |   |                    |   | - |   |   |   | - |   |   |   | (23 | ) |
| Other-than-temporary impairment losses on investments subsequent to April 1, 2009                        |   |                      |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Gross impairment losses                                                                                  |   |                      | -       |   |                    |   | (740 | ) |   |   | - |   |   |   | (740 | ) |
| Less: Impairments recognized in other comprehensive income                                               |   |                      | -       |   |                    |   | - |   |   |   | - |   |   |   | - |   |
| Net impairment losses recognized in earnings subsequent to April 1, 2009                                 |   |                      | -       |   |                    |   | (740 | ) |   |   | - |   |   |   | (740 | ) |
| Total non-interest income                                                                                |   |                      | 3,494   |   |                    |   | 2,332 |   |   |   | 6,908 |   |   |   | 4,711 |   |
|                                                                                                     |   |                      |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest expense                                                                                     |   |                      |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Salaries and employee benefits                                                                           |   |                      | 6,413   |   |                    |   | 7,068 |   |   |   | 13,249 |   |   |   | 14,448 |   |
| Net occupancy and equipment expense                                                                      |   |                      | 2,273   |   |                    |   | 2,438 |   |   |   | 4,557 |   |   |   | 4,590 |   |
| Foreclosed asset related expense                                                                         |   |                      | 5,149   |   |                    |   | 1,086 |   |   |   | 6,249 |   |   |   | 1,406 |   |
| Other expense                                                                                            |   |                      | 6,660   |   |                    |   | 5,566 |   |   |   | 11,474 |   |   |   | 9,081 |   |
| Total non-interest expense                                                                               |   |                      | 20,495  |   |                    |   | 16,158 |   |   |   | 35,529 |   |   |   | 29,525 |   |
|                                                                                                     |   |                      |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Loss before income taxes                                                                                 |   |                      | (14,099 | )      |                    |   | (7,895 | ) |   |   | (19,150 | ) |   |   | (13,435 | ) |
|                                                                                                     |   |                      |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Income tax benefit                                                                                       |   |                      | -       |   |                    |   | (3,008 | ) |   |   | - |   |   |   | (5,090 | ) |
|                                                                                                     |   |                      |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Net Loss                                                                                                 |   | $                         | (14,099 | )      |                    | $      | (4,887 | ) |   | $ | (19,150 | ) |   | $ | (8,345 | ) |
| Preferred dividends earned by preferred shareholders and discount accretion                              |   |                      | 669     |   |                    |   | 650 |   |   |   | 1,329 |   |   |   | 1,358 |   |
| Net loss allocated to common shareholders                                                                |   | $                         | (14,768 | )      |                    | $      | (5,537 | ) |   | $ | (20,479 | ) |   | $ | (9,703 | ) |
|                                                                                                     |   |                      |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted loss per common share                                                                  |   | $                         | (0.99   | )      |                    | $      | (0.37 | ) |   | $ | (1.38 | ) |   | $ | (0.66 | ) |
|                                                                                                     |   |                      |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                             |   |  PreferredShares |   |   |  PreferredStock |   |   | Common Shares |   |   | Common Stock |   |   | Additional Paid in Capital |   |   | Accumulated Deficit |   |   | Accumulated Other Comprehensive Loss |   |   | TreasuryStock |   |   | Total Shareholders’ Equity |   |
|------------------------------------------------------------------|--------|-----------------------|--------|--------|----------------------|--------|--------|---------------|--------|--------|--------------|--------|--------|----------------------------|--------|--------|---------------------|--------|--------|--------------------------------------|--------|--------|---------------|--------|--------|----------------------------------|--------|
| Balance, April 1, 2010                                           |   |                  | 37,000 |   |                 | $      | 33,919 |          |   |   | 14,887,922   |   |   | $                          | 1,496  |   |                | $      | 74,823 |                                 |   | $      | (55,234       | )      |   | $                                | (3,649 | ) |   | $ | (569 | ) |   | $ | 50,786 |   |
| Comprehensive loss:                                              |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |                |   |   |                                 |   |   |          |   |   |                             |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                         |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |                |   |   |                                 |   |   | (14,099       | )      |   |                             |   |   |   |   |   |   |   |   | (14,099 | ) |
| Other comprehensive income                                       |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |                |   |   |                                 |   |   |          |   |   |                             |   |   |   |   |   |   |   |   |   |   |
| Net market valuation adjustment on securities available for sale |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |                |   |   |                                 |   |   |          |   |   |                             | 3,236  |   |   |   |   |   |   |   |   |   |
| Less: reclassification adjustment for gains                      |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |                |   |   |                                 |   |   |          |   |   |                             | (993   | ) |   |   |   |   |   |   |   |   |
| Other comprehensive income:                                      |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |                |   |   |                                 |   |   |          |   |   |                             |   |   |   |   |   |   |   |   | 2,243 |   |
| Comprehensive loss                                               |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |                |   |   |                                 |   |   |          |   |   |                             |   |   |   |   |   |   |   |   | (11,856 | ) |
| Preferred stock   discount accretion                   |   |                  |   |   |                 |   | 191    |          |   |   |         |   |   |                       |   |   |                |   |   |                                 |   |   | (191          | )      |   |                             |   |   |   |   |   |   |   |   | - |   |
| Stock-based compensation                                         |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |                |   | 106    |                                 |   |   |          |   |   |                             |   |   |   |   |   |   |   |   | 106 |   |
| Balance, June 30, 2010                                           |   |                  | 37,000 |   |                 | $      | 34,110 |          |   |   | 14,887,922   |   |   | $                          | 1,496  |   |                | $      | 74,929 |                                 |   | $      | (69,524       | )      |   | $                                | (1,406 | ) |   | $ | (569 | ) |   | $ | 39,036 |   |
|                                                             |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |                |   |   |                                 |   |   |          |   |   |                             |   |   |   |   |   |   |   |   |   |   |

----

|                                                                   |   |  PreferredShares |   |   |  PreferredStock |   |   | Common Shares |   |   | Common Stock |   |   | Additional Paid in Capital |   |   | Retained Earnings |   |   | Accumulated Other Comprehensive Loss |   |   | TreasuryStock |   |   | Total Shareholders’ Equity |   |
|------------------------------------------------------------------------|--------|-----------------------|--------|--------|----------------------|--------|--------|---------------|--------|--------|--------------|--------|--------|----------------------------|--------|--------|-------------------|--------|--------|--------------------------------------|--------|--------|---------------|--------|--------|----------------------------------|--------|
| Balance, April 1, 2009                                                 |   |                  | 37,000 |   |                 | $      | 33,166 |          |   |   | 14,895,143   |   |   | $                          | 1,497  |   |              | $      | 73,768 |                                 |   | $      | 10,204        |   |   | $                                | (214   | ) |   | $ | (569 | ) |   | $ | 117,852 |   |
| Comprehensive loss:                                                    |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                 |   |   |          |   |   |                             |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                               |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                 |   |   | (4,887        | )      |   |                             |   |   |   |   |   |   |   |   | (4,887 | ) |
| Other comprehensive loss, net of tax:                                  |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                 |   |   |          |   |   |                             |   |   |   |   |   |   |   |   |   |   |
| Net market valuation adjustment on securities available for sale       |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                 |   |   |          |   |   |                             | (608   | ) |   |   |   |   |   |   |   |   |
| Less: reclassification adjustment for gains, net of tax expense of $36 |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                 |   |   |          |   |   |                             | (59    | ) |   |   |   |   |   |   |   |   |
| Other comprehensive loss, net of tax benefit of $403                   |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                 |   |   |          |   |   |                             |   |   |   |   |   |   |   |   | (667 | ) |
| Comprehensive loss                                                     |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                 |   |   |          |   |   |                             |   |   |   |   |   |   |   |   | (5,554 | ) |
| Preferred stock discount accretion                                     |   |                  |   |   |                 |   | 188    |          |   |   |         |   |   |                       |   |   |              |   |   |                                 |   |   | (188          | )      |   |                             |   |   |   |   |   |   |   |   | - |   |
| Stock-based compensation and related tax effect                        |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   | 133    |                                 |   |   |          |   |   |                             |   |   |   |   |   |   |   |   | 133 |   |
| Common stock dividends declared, 1%                                    |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   | 407    |                                 |   |   | (407          | )      |   |                             |   |   |   |   |   |   |   |   | - |   |
| Cash dividends declared, preferred stock                               |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                 |   |   | (463          | )      |   |                             |   |   |   |   |   |   |   |   | (463 | ) |
| Balance, June 30, 2009                                                 |   |                  | 37,000 |   |                 | $      | 33,354 |          |   |   | 14,895,143   |   |   | $                          | 1,497  |   |              | $      | 74,308 |                                 |   | $      | 4,259         |   |   | $                                | (881   | ) |   | $ | (569 | ) |   | $ | 111,968 |   |
|                                                                   |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                 |   |   |          |   |   |                             |   |   |   |   |   |   |   |   |   |   |

----

|                                                             |   |  PreferredShares |   |   |  PreferredStock |   |   | Common Shares |   |   | Common Stock |   |   | Additional Paid in Capital |   |   | Accumulated Deficit |   |   | Accumulated Other Comprehensive Loss |   |   | TreasuryStock |   |   | Total Shareholders’ Equity |   |
|------------------------------------------------------------------|--------|-----------------------|--------|--------|----------------------|--------|--------|---------------|--------|--------|--------------|--------|--------|----------------------------|--------|--------|---------------------|--------|--------|--------------------------------------|--------|--------|---------------|--------|--------|----------------------------------|--------|
| Balance, January 1, 2010                                         |   |                  | 37,000 |   |                 | $      | 33,730 |          |   |   | 14,887,922   |   |   | $                          | 1,496  |   |                | $      | 74,673 |                                 |   | $      | (49,994       | )      |   | $                                | (3,818 | ) |   | $ | (569 | ) |   | $ | 55,518 |   |
| Comprehensive loss:                                              |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |                |   |   |                                 |   |   |          |   |   |                             |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                         |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |                |   |   |                                 |   |   | (19,150       | )      |   |                             |   |   |   |   |   |   |   |   | (19,150 | ) |
| Other comprehensive income                                       |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |                |   |   |                                 |   |   |          |   |   |                             |   |   |   |   |   |   |   |   |   |   |
| Net market valuation adjustment on securities available for sale |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |                |   |   |                                 |   |   |          |   |   |                             | 5,047  |   |   |   |   |   |   |   |   |   |
| Less: reclassification adjustment for gains                      |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |                |   |   |                                 |   |   |          |   |   |                             | (2,635 | ) |   |   |   |   |   |   |   |   |
| Other comprehensive income:                                      |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |                |   |   |                                 |   |   |          |   |   |                             |   |   |   |   |   |   |   |   | 2,412 |   |
| Comprehensive loss                                               |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |                |   |   |                                 |   |   |          |   |   |                             |   |   |   |   |   |   |   |   | (16,738 | ) |
| Preferred stock discount accretion                               |   |                  |   |   |                 |   | 380    |          |   |   |         |   |   |                       |   |   |                |   |   |                                 |   |   | (380          | )      |   |                             |   |   |   |   |   |   |   |   | - |   |
| Stock-based compensation                                         |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |                |   | 256    |                                 |   |   |          |   |   |                             |   |   |   |   |   |   |   |   | 256 |   |
| Balance, June 30, 2010                                           |   |                  | 37,000 |   |                 | $      | 34,110 |          |   |   | 14,887,922   |   |   | $                          | 1,496  |   |                | $      | 74,929 |                                 |   | $      | (69,524       | )      |   | $                                | (1,406 | ) |   | $ | (569 | ) |   | $ | 39,036 |   |
|                                                             |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |                |   |   |                                 |   |   |          |   |   |                             |   |   |   |   |   |   |   |   |   |   |

----

|                                                                    |   |  PreferredShares |   |   |  PreferredStock |   |   | Common Shares |   |   | Common Stock |   |   | Additional Paid in Capital |   |   | Retained Earnings |   |   | Accumulated Other Comprehensive Loss |   |   | TreasuryStock |   |   | Total Shareholders’ Equity |   |
|-------------------------------------------------------------------------|--------|-----------------------|--------|--------|----------------------|--------|--------|---------------|--------|--------|--------------|--------|--------|----------------------------|--------|--------|-------------------|--------|--------|--------------------------------------|--------|--------|---------------|--------|--------|----------------------------------|--------|
| Balance, January 1, 2009                                                |   |                  | 37,000 |   |                 | $      | 32,920 |          |   |   | 14,895,143   |   |   | $                          | 1,497  |   |              | $      | 73,148 |                                 |   | $      | 14,737        |   |   | $                                | (619   | ) |   | $ | (569 | ) |   | $ | 121,114 |   |
| Comprehensive loss:                                                     |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                 |   |   |          |   |   |                             |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                 |   |   | (8,345        | )      |   |                             |   |   |   |   |   |   |   |   | (8,345 | ) |
| Other comprehensive loss, net of tax benefit:                           |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                 |   |   |          |   |   |                             |   |   |   |   |   |   |   |   |   |   |
| Net market valuation adjustment on securities available for sale        |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                 |   |   |          |   |   |                             | 169    |   |   |   |   |   |   |   |   |   |
| Less: reclassification adjustment for gains, net of tax expense of $260 |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                 |   |   |          |   |   |                             | (431   | ) |   |   |   |   |   |   |   |   |
| Other comprehensive loss, net of tax benefit of $158                    |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                 |   |   |          |   |   |                             |   |   |   |   |   |   |   |   | (262 | ) |
| Comprehensive loss                                                      |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                 |   |   |          |   |   |                             |   |   |   |   |   |   |   |   | (8,607 | ) |
| Issuance costs associated with preferred stock issued                   |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   | (48    | )                                    |   |   |          |   |   |                             |   |   |   |   |   |   |   |   | (48 | ) |
| Preferred stock discount accretion                                      |   |                  |   |   |                 |   | 434    |          |   |   |         |   |   |                       |   |   |              |   |   |                                 |   |   | (434          | )      |   |                             |   |   |   |   |   |   |   |   | - |   |
| Stock-based compensation and related tax effect                         |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   | 332    |                                 |   |   |          |   |   |                             |   |   |   |   |   |   |   |   | 332 |   |
| Common stock dividends declared, 1%                                     |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   | 876    |                                 |   |   | (876          | )      |   |                             |   |   |   |   |   |   |   |   | - |   |
| Cash dividends declared, preferred stock                                |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                 |   |   | (823          | )      |   |                             |   |   |   |   |   |   |   |   | (823 | ) |
| Balance, June 30, 2009                                                  |   |                  | 37,000 |   |                 | $      | 33,354 |          |   |   | 14,895,143   |   |   | $                          | 1,497  |   |              | $      | 74,308 |                                 |   | $      | 4,259         |   |   | $                                | (881   | ) |   | $ | (569 | ) |   | $ | 111,968 |   |
|                                                                    |   |                  |   |   |                 |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                 |   |   |          |   |   |                             |   |   |   |   |   |   |   |   |   |   |

----

| TIB FINANCIAL CORP.CONSOLIDATED STATEMENTS OF CASH FLOWSINCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS(Unaudited)(Dollars in thousands) |   |
|-------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                      |   | Six Months Ended June 30, |   |
|                                                                                                                                      |   | 2010 |   |   | 2009 |   |
| Cash flows from operating activities:                                                                                                     |   |   |   |   |   |   |
| Net loss                                                                                                                                  |   | $ | (19,150 | ) |   | $ | (8,345 | ) |
| Adjustments to reconcile net loss to net cash provided by operating activities:                                                           |   |   |   |   |   |   |   |   |
| Depreciation and amortization                                                                                                             |   |   | 2,267 |   |   |   | 2,216 |   |
| Provision for loan losses                                                                                                                 |   |   | 12,625 |   |   |   | 11,072 |   |
| Deferred income tax benefit (loss)                                                                                                        |   |   | - |   |   |   | (6,461 | ) |
| Investment securities net realized gains                                                                                                  |   |   | (2,635 | ) |   |   | (1,454 | ) |
| Net amortization of investment premium/discount                                                                                           |   |   | 1,588 |   |   |   | 847 |   |
| Write-down of investment securities                                                                                                       |   |   | - |   |   |   | 763 |   |
| Stock-based compensation                                                                                                                  |   |   | 256 |   |   |   | 370 |   |
| (Gain)/Loss on sales of OREO                                                                                                              |   |   | 111 |   |   |   | 182 |   |
| OREO valuation adjustments                                                                                                                |   |   | 4,776 |   |   |   | 801 |   |
| Loss on the sale of indirect auto loans                                                                                                   |   |   | 346 |   |   |   | - |   |
| Other                                                                                                                                     |   |   | 264 |   |   |   | 260 |   |
| Mortgage loans originated for sale                                                                                                        |   |   | (37,650 | ) |   |   | (23,297 | ) |
| Proceeds from sales of mortgage loans                                                                                                     |   |   | 36,264 |   |   |   | 21,706 |   |
| Fees on mortgage loans sold                                                                                                               |   |   | (764 | ) |   |   | (395 | ) |
| Change in accrued interest receivable and other assets                                                                                    |   |   | 3,819 |   |   |   | 647 |   |
| Change in accrued interest payable and other liabilities                                                                                  |   |   | 4,834 |   |   |   | 1,772 |   |
| Net cash provided by operating activities                                                                                                 |   |   | 6,951 |   |   |   | 684 |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |
| Cash flows from investing activities:                                                                                                     |   |   |   |   |   |   |   |   |
| Purchases of investment securities available for sale                                                                                     |   |   | (265,628 | ) |   |   | (497,814 | ) |
| Sales of investment securities available for sale                                                                                         |   |   | 188,601 |   |   |   | 290,916 |   |
| Repayments of principal and maturities of investment securities available for sale                                                        |   |   | 48,202 |   |   |   | 105,489 |   |
| Net cash received in acquisition of operations - Riverside Bank of the Gulf Coast                                                         |   |   | - |   |   |   | 271,398 |   |
| Net (purchase) sale of FHLB stock                                                                                                         |   |   | - |   |   |   | 1,277 |   |
| Principal repayments on loans, net of loans originated or acquired                                                                        |   |   | 29,752 |   |   |   | (22,490 | ) |
| Purchases of premises and equipment                                                                                                       |   |   | (12,350 | ) |   |   | (1,252 | ) |
| Proceeds from sales of loans                                                                                                              |   |   | 25,767 |   |   |   | - |   |
| Proceeds from sale of OREO                                                                                                                |   |   | 3,604 |   |   |   | 2,038 |   |
| Proceeds from disposal of equipment                                                                                                       |   |   | 41 |   |   |   | 18 |   |
| Net cash provided by investing activities                                                                                                 |   |   | 17,989 |   |   |   | 149,580 |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |
| Cash flows from financing activities:                                                                                                     |   |   |   |   |   |   |   |   |
| Net increase (decrease) in demand, money market and savings accounts                                                                      |   |   | (87,461 | ) |   |   | 85,803 |   |
| Net increase (decrease) in time deposits                                                                                                  |   |   | 96,853 |   |   |   | (52,486 | ) |
| Net change in brokered time deposits                                                                                                      |   |   | (37,277 | ) |   |   | (93,399 | ) |
| Net increase (decrease) in federal funds purchased and securities sold under agreements to repurchase                                     |   |   | (6,581 | ) |   |   | 11,755 |   |
| Repayment of long term FHLB advances                                                                                                      |   |   | - |   |   |   | (7,900 | ) |
| Net change in short term FHLB advances                                                                                                    |   |   | - |   |   |   | (70,000 | ) |
| Income tax effect related to stock-based compensation                                                                                     |   |   | - |   |   |   | (38 | ) |
| Net proceeds from issuance costs of preferred stock and common warrants                                                                   |   |   | - |   |   |   | (48 | ) |
| Cash dividends paid to preferred shareholders                                                                                             |   |   | - |   |   |   | (823 | ) |
| Net cash used in financing activities                                                                                                     |   |   | (34,466 | ) |   |   | (127,136 | ) |
|                                                                                                                                      |   |   |   |   |   |   |   |   |
| Net increase in cash and cash equivalents                                                                                                 |   |   | (9,526 | ) |   |   | 23,128 |   |
| Cash and cash equivalents at beginning of period                                                                                          |   |   | 167,402 |   |   |   | 73,734 |   |
| Cash and cash equivalents at end of period                                                                                                |   | $ | 157,876 |   |   | $ | 96,862 |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |
| Supplemental disclosures of cash paid:                                                                                                    |   |   |   |   |   |   |   |   |
| Interest                                                                                                                                  |   | $ | 10,999 |   |   | $ | 18,857 |   |
| Income taxes                                                                                                                              |   |   | - |   |   |   | - |   |
| Supplemental information:                                                                                                                 |   |   |   |   |   |   |   |   |
| Fair value of noncash assets acquired                                                                                                     |   | $ | - |   |   | $ | 49,193 |   |
| Fair value of liabilities assumed                                                                                                         |   |   | - |   |   |   | 320,594 |   |
| Transfer of loans to OREO                                                                                                                 |   |   | 25,702 |   |   |   | 8,780 |   |
| Transfer of OREO to Premises and Equipment                                                                                                |   |   | - |   |   |   | 2,941 |   |
| See accompanying notes to consolidated financial statements                                                                               |   |

----

----

----

----

|                                               |   | June 30, 2010  |    |
|----------------------------------------------------|--------|----------------|---------|
|                                               |   | Amortized Cost |    |   | Unrealized Gains |   |   | Unrealized Losses |   |   | Estimated Fair Value |   |
| U.S. Government agencies and corporations          |   | $              | 28,774  |   |   | $ | 64 |   |   | $ | - |   |   | $ | 28,838 |   |
| States and political subdivisions—tax exempt |   |           | 2,992   |   |   |   | 86 |   |   |   | - |   |   |   | 3,078 |   |
| States and political subdivisions—taxable    |   |           | 2,311   |   |   |   | - |   |   |   | 45 |   |   |   | 2,266 |   |
| Marketable equity securities                       |   |           | 12      |   |   |   | 164 |   |   |   | - |   |   |   | 176 |   |
| Mortgage-backed securities—residential       |   |           | 242,439 |   |   |   | 3,085 |   |   |   | 40 |   |   |   | 245,484 |   |
| Corporate bonds                                    |   |           | 2,880   |   |   |   | - |   |   |   | 859 |   |   |   | 2,021 |   |
| Collateralized debt obligation                     |   |           | 4,992   |   |   |   | - |   |   |   | 4,234 |   |   |   | 758 |   |
|                                               |   | $              | 284,400 |   |   | $ | 3,399 |   |   | $ | 5,178 |   |   | $ | 282,621 |   |

|                                               |   | December 31, 2009 |    |
|----------------------------------------------------|--------|-------------------|---------|
|                                               |   | Amortized Cost    |    |   | Unrealized Gains |   |   | Unrealized Losses |   |   | Estimated Fair Value |   |
| U.S. Government agencies and corporations          |   | $                 | 29,232  |   |   | $ | 24 |   |   | $ | 84 |   |   | $ | 29,172 |   |
| States and political subdivisions—tax exempt |   |              | 7,754   |   |   |   | 307 |   |   |   | - |   |   |   | 8,061 |   |
| States and political subdivisions—taxable    |   |              | 2,313   |   |   |   | - |   |   |   | 101 |   |   |   | 2,212 |   |
| Marketable equity securities                       |   |              | 12      |   |   |   | - |   |   |   | 4 |   |   |   | 8 |   |
| Mortgage-backed securities—residential       |   |              | 207,344 |   |   |   | 2,083 |   |   |   | 1,312 |   |   |   | 208,115 |   |
| Corporate bonds                                    |   |              | 2,878   |   |   |   | - |   |   |   | 866 |   |   |   | 2,012 |   |
| Collateralized debt obligation                     |   |              | 4,996   |   |   |   | - |   |   |   | 4,237 |   |   |   | 759 |   |
|                                               |   | $                 | 254,529 |   |   | $ | 2,414 |   |   | $ | 6,604 |   |   | $ | 250,339 |   |

|                                     |   |         June 30, 2010 |    |
|------------------------------------------|--------|----------------------------------------------------------|---------|
|                                     |   | Fair Value                                               |    |   | Amortized Cost |   |
| Due in one year or less                  |   | $                                                        | 276     |   |   | $ | 275 |   |
| Due after one year through five years    |   |                                                     | 22,538  |   |   |   | 22,476 |   |
| Due after five years through ten years   |   |                                                     | 1,681   |   |   |   | 1,637 |   |
| Due after ten years                      |   |                                                     | 12,466  |   |   |   | 17,561 |   |
| Marketable equity securities             |   |                                                     | 176     |   |   |   | 12 |   |
| Mortgage-backed securities - residential |   |                                                     | 245,484 |   |   |   | 242,439 |   |
|                                     |   | $                                                        | 282,621 |   |   | $ | 284,400 |   |
|                                     |   |                                                     |    |   |   |   |   |   |

----

|                                               |   | Less than 12 Months  |   |   | 12 Months or Longer |   |   | Total                |   |
|----------------------------------------------------|--------|----------------------|--------|--------|---------------------|--------|--------|----------------------|--------|
| June 30, 2010                                      |   | Estimated Fair Value |   |   | Unrealized Losses   |   |   | Estimated Fair Value |   |   | Unrealized Losses |   |   | Estimated Fair Value |   |   | Unrealized Losses |   |
| U.S. Government agencies and corporations          |   | $                    | -      |   |                | $      | -      |                 |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| States and political subdivisions—tax exempt |   |                 | -      |   |                |   | -      |                 |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| States and political subdivisions—taxable    |   |                 | -      |   |                |   | -      |                 |   |   | 2,266 |   |   |   | 45 |   |   |   | 2,266 |   |   |   | 45 |   |
| Mortgage-backed securities - residential           |   |                 | 21,917 |   |                |   | 40     |                 |   |   | - |   |   |   | - |   |   |   | 21,917 |   |   |   | 40 |   |
| Corporate bonds                                    |   |                 | -      |   |                |   | -      |                 |   |   | 2,021 |   |   |   | 859 |   |   |   | 2,021 |   |   |   | 859 |   |
| Collateralized debt obligation                     |   |                 | -      |   |                |   | -      |                 |   |   | 758 |   |   |   | 4,234 |   |   |   | 758 |   |   |   | 4,234 |   |
| Total temporarily impaired                         |   | $                    | 21,917 |   |                | $      | 40     |                 |   | $ | 5,045 |   |   | $ | 5,138 |   |   | $ | 26,962 |   |   | $ | 5,178 |   |
|                                               |   |                 |   |   |                |   |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                               |   | Less than 12 Months  |    |   | 12 Months or Longer |   |   | Total                |   |
|----------------------------------------------------|--------|----------------------|---------|--------|---------------------|--------|--------|----------------------|--------|
| December 31, 2009                                  |   | Estimated Fair Value |    |   | Unrealized Losses   |   |   | Estimated Fair Value |   |   | Unrealized Losses |   |   | Estimated Fair Value |   |   | Unrealized Losses |   |
| U.S. Government agencies and corporations          |   | $                    | 5,034   |   |                | $      | 84     |                 |   | $ | - |   |   | $ | - |   |   | $ | 5,034 |   |   | $ | 84 |   |
| States and political subdivisions—tax exempt |   |                 | -       |   |                |   | -      |                 |   |   | 275 |   |   |   | - |   |   |   | 275 |   |   |   | - |   |
| States and political subdivisions-taxable          |   |                 | -       |   |                |   | -      |                 |   |   | 2,212 |   |   |   | 101 |   |   |   | 2,212 |   |   |   | 101 |   |
| Marketable equity securities                       |   |                 | 8       |   |                |   | 4      |                 |   |   | - |   |   |   | - |   |   |   | 8 |   |   |   | 4 |   |
| Mortgage-backed securities - residential           |   |                 | 98,746  |   |                |   | 1,206  |                 |   |   | 10,542 |   |   |   | 106 |   |   |   | 109,288 |   |   |   | 1,312 |   |
| Corporate bonds                                    |   |                 | -       |   |                |   | -      |                 |   |   | 2,012 |   |   |   | 866 |   |   |   | 2,012 |   |   |   | 866 |   |
| Collateralized debt obligation                     |   |                 | -       |   |                |   | -      |                 |   |   | 759 |   |   |   | 4,237 |   |   |   | 759 |   |   |   | 4,237 |   |
| Total temporarily impaired                         |   | $                    | 103,788 |   |                | $      | 1,294  |                 |   | $ | 15,800 |   |   | $ | 5,310 |   |   | $ | 119,588 |   |   | $ | 6,604 |   |
|                                               |   |                 |    |   |                |   |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                       |   | Three Months Ended June 30, 2010 |   |   | Six Months Ended June 30, 2010 |   |
|--------------------------------------------|--------|----------------------------------|--------|--------|-------------------------------------|--------|
| Balance at beginning of period             |   | $                                | 9,996  |   |                                | $      | 9,996 |   |
| Additions/Subtractions                     |   |                             |   |   |                                |   |   |   |
| Credit losses recognized during the period |   |                             | -      |   |                                |   | - |   |
| Ending balance, June 30, 2010              |   | $                                | 9,996  |   |                                | $      | 9,996 |   |
|                                       |   |                             |   |   |                                |   |   |   |

----

|                              |   | June 30, 2010 |      |   | December 31,2009 |   |
|-----------------------------------|--------|--------------------|-----------|--------|------------------|--------|
| Real estate mortgage loans:       |   |               |      |   |             |   |
| Commercial                        |   | $                  | 649,679   |   |             | $      | 680,409 |   |
| Residential                       |   |               | 235,423   |   |             |   | 236,945 |   |
| Farmland                          |   |               | 13,571    |   |             |   | 13,866 |   |
| Construction and vacant land      |   |               | 60,698    |   |             |   | 97,424 |   |
| Commercial and agricultural loans |   |               | 68,696    |   |             |   | 69,246 |   |
| Indirect auto loans               |   |               | 25,918    |   |             |   | 50,137 |   |
| Home equity loans                 |   |               | 36,856    |   |             |   | 37,947 |   |
| Other consumer loans              |   |               | 9,759     |   |             |   | 10,190 |   |
| Total loans                       |   |               | 1,100,600 |   |             |   | 1,196,164 |   |
|                              |   |               |      |   |             |   |   |   |
| Net deferred loan costs           |   |               | 1,072     |   |             |   | 1,352 |   |
| Loans, net of deferred loan costs |   | $                  | 1,101,672 |   |             | $      | 1,197,516 |   |

|                                         |   | Three Months Ended June 30, |   |   | Six Month Ended June 30, |   |
|----------------------------------------------|--------|-----------------------------|--------|--------|--------------------------|--------|
|                                         |   | 2010                        |   |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
| Balance, beginning of period                 |   | $                           | 27,829 |   |                     | $      | 25,488 |   |   | $ | 29,083 |   |   | $ | 23,783 |   |
| Provision for loan losses charged to expense |   |                        | 7,700  |   |                     |   | 5,763 |   |   |   | 12,625 |   |   |   | 11,072 |   |
| Loans charged off                            |   |                        | (8,634 | )      |                     |   | (5,911 | ) |   |   | (14,987 | ) |   |   | (9,533 | ) |
| Recoveries of loans previously charged off   |   |                        | 815    |   |                     |   | 106 |   |   |   | 989 |   |   |   | 124 |   |
| Balance, June 30                             |   | $                           | 27,710 |   |                     | $      | 25,446 |   |   | $ | 27,710 |   |   | $ | 25,446 |   |

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

|                                   |   | As of June 30, 2010 |   |   | As of December 31, 2009 |   |
|----------------------------------------|--------|---------------------|--------|--------|-------------------------|--------|
| Collateral Type                        |   | Number ofLoans      |   |   | Outstanding Balance     |   |   | Number ofLoans |   |   | Outstanding Balance |   |
| Residential 1-4 family                 |   |                | 42     |   |                    | $      | 11,116 |   |   |   | 36 |   |   | $ | 9,250 |   |
| Home equity loans                      |   |                | 9      |   |                    |   | 1,377 |   |   |   | 8 |   |   |   | 1,488 |   |
| Commercial 1-4 family investment       |   |                | 12     |   |                    |   | 7,273 |   |   |   | 19 |   |   |   | 8,733 |   |
| Commercial and agricultural            |   |                | 9      |   |                    |   | 1,982 |   |   |   | 7 |   |   |   | 2,454 |   |
| Commercial real estate                 |   |                | 35     |   |                    |   | 39,733 |   |   |   | 29 |   |   |   | 24,392 |   |
| Land development                       |   |                | 16     |   |                    |   | 14,643 |   |   |   | 13 |   |   |   | 25,295 |   |
| Government guaranteed loans            |   |                | 1      |   |                    |   | 137 |   |   |   | 2 |   |   |   | 143 |   |
| Indirect auto, auto and consumer loans |   |                | 38     |   |                    |   | 371 |   |   |   | 97 |   |   |   | 1,078 |   |
|                                   |   |                |   |   |                    | $      | 76,632 |   |   |   |   |   |   | $ | 72,833 |   |

|                                              |   | June 30, 2010 |    |   | December 31, 2009 |   |
|---------------------------------------------------|--------|---------------|---------|--------|-------------------|--------|
| Loans with no allocated allowance for loan losses |   | $             | 23,415  |   |              | $      | 60,629 |   |
| Loans with allocated allowance for loan losses    |   |          | 88,354  |   |              |   | 87,823 |   |
| Total                                             |   | $             | 111,769 |   |              | $      | 148,452 |   |
|                                              |   |          |    |   |              |   |   |   |
| Amount of the allowance for loan losses allocated |   | $             | 7,358   |   |              | $      | 9,040 |   |

----

|                                           |   | Three Months EndedJune 30, |      |   | Six Months EndedJune 30, |   |
|------------------------------------------------|--------|----------------------------|-----------|--------|--------------------------|--------|
|                                           |   | 2010                       |      |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
| Anti-dilutive stock options                    |   |                       | 793,690   |   |                     |   | 681,907 |   |   |   | 804,529 |   |   |   | 690,884 |   |
| Anti-dilutive unvested restricted stock awards |   |                       | 38,108    |   |                     |   | 76,827 |   |   |   | 43,419 |   |   |   | 86,752 |   |
| Anti-dilutive warrants                         |   |                       | 2,380,213 |   |                     |   | 2,380,213 |   |   |   | 2,380,213 |   |   |   | 2,380,213 |   |

|                                     |   | Well Capitalized Requirement |        |   | Adequately Capitalized Requirement |   |       | June 30,2010Actual |   |   | December 31, 2009Actual |   |
|------------------------------------------|--------|------------------------------|-------------|--------|------------------------------------|--------|------------|--------------------|--------|--------|-------------------------|--------|
| Tier 1 Capital (to Average Assets)       |   |                         |        |   |                               |   |       |               |   |   |                    |   |
| Consolidated                             |   |                         | N/A         |   |                               |   | 3 4.0 | %                  |   |   | 2.7                     | %      |   |   | 4.1 | % |
| TIB Bank                                 |   |                         | 3 5.0  | %      |                               |   | 3 4.0 | %                  |   |   | 3.9                     | %      |   |   | 4.8 | % |
|                                     |   |                         |        |   |                               |   |       |               |   |   |                    |   |   |   |   |   |
| Tier 1 Capital (to Risk Weighted Assets) |   |                         |        |   |                               |   |       |               |   |   |                    |   |   |   |   |   |
| Consolidated                             |   |                         | N/A         |   |                               |   | 3 4.0 | %                  |   |   | 4.0                     | %      |   |   | 5.7 | % |
| TIB Bank                                 |   |                         | 3 6.0  | %      |                               |   | 3 4.0 | %                  |   |   | 5.9                     | %      |   |   | 6.8 | % |
|                                     |   |                         |        |   |                               |   |       |               |   |   |                    |   |   |   |   |   |
| Total Capital (to Risk Weighted Assets)  |   |                         |        |   |                               |   |       |               |   |   |                    |   |   |   |   |   |
| Consolidated                             |   |                         | N/A         |   |                               |   | 3 8.0 | %                  |   |   | 7.1                     | %      |   |   | 8.1 | % |
| TIB Bank                                 |   |                         | 3 10.0 | %      |                               |   | 3 8.0 | %                  |   |   | 7.1                     | %      |   |   | 8.1 | % |
|                                     |   |                         |        |   |                               |   |       |               |   |   |                    |   |   |   |   |   |

----

----

|                                               |   |          |    |   | Fair Value Measurements at June 30, 2010 Using                |   |
|----------------------------------------------------|--------|---------------|---------|--------|---------------------------------------------------------------|--------|
|                                               |   | June 30, 2010 |    |   | Quoted Prices in Active Markets for Identical Assets(Level 1) |   |   | Significant Other Observable Inputs (Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   |
| Assets:                                            |   |          |    |   |                                                          |   |   |   |   |   |   |   |
| U.S. Government agencies and corporations          |   | $             | 28,838  |   |                                                          | $      | - |   |   | $ | 28,838 |   |   | $ | - |   |
| States and political subdivisions—tax exempt |   |          | 3,078   |   |                                                          |   | - |   |   |   | 3,078 |   |   |   | - |   |
| States and political subdivisions—taxable    |   |          | 2,266   |   |                                                          |   | - |   |   |   | 2,266 |   |   |   | - |   |
| Marketable equity securities                       |   |          | 176     |   |                                                          |   | - |   |   |   | 176 |   |   |   | - |   |
| Mortgage-backed securities—residential       |   |          | 245,484 |   |                                                          |   | - |   |   |   | 245,484 |   |   |   | - |   |
| Corporate bonds                                    |   |          | 2,021   |   |                                                          |   | - |   |   |   | 2,021 |   |   |   | - |   |
| Collateralized debt obligations                    |   |          | 758     |   |                                                          |   | - |   |   |   | - |   |   |   | 758 |   |
| Available for sale securities                      |   | $             | 282,621 |   |                                                          | $      | - |   |   | $ | 281,863 |   |   | $ | 758 |   |
|                                               |   |          |    |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |

|                                               |   |              |    |   | Fair Value Measurements at December 31, 2009 Using            |   |
|----------------------------------------------------|--------|-------------------|---------|--------|---------------------------------------------------------------|--------|
|                                               |   | December 31, 2009 |    |   | Quoted Prices in Active Markets for Identical Assets(Level 1) |   |   | Significant Other Observable Inputs (Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   |
| Assets:                                            |   |              |    |   |                                                          |   |   |   |   |   |   |   |
| U.S. Government agencies and corporations          |   | $                 | 29,172  |   |                                                          | $      | - |   |   | $ | 29,172 |   |   | $ | - |   |
| States and political subdivisions—tax exempt |   |              | 8,061   |   |                                                          |   | - |   |   |   | 8,061 |   |   |   | - |   |
| States and political subdivisions—taxable    |   |              | 2,212   |   |                                                          |   | - |   |   |   | 2,212 |   |   |   | - |   |
| Marketable equity securities                       |   |              | 8       |   |                                                          |   | - |   |   |   | 8 |   |   |   | - |   |
| Mortgage-backed securities—residential       |   |              | 208,115 |   |                                                          |   | - |   |   |   | 208,115 |   |   |   | - |   |
| Corporate bonds                                    |   |              | 2,012   |   |                                                          |   | - |   |   |   | 2,012 |   |   |   | - |   |
| Collateralized debt obligations                    |   |              | 759     |   |                                                          |   | - |   |   |   | - |   |   |   | 759 |   |
| Available for sale securities                      |   | $                 | 250,339 |   |                                                          | $      | - |   |   | $ | 249,580 |   |   | $ | 759 |   |
|                                               |   |              |    |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |

|                                                         |   | Fair Value Measurements Using Significant Unobservable Inputs (Level 3)Collateralized Debt Obligations |   |
|--------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------|--------|
|                                                         |   | 2010                                                                                                   |   |   | 2009 |   |
| Beginning balance, April 1,                                  |   | $                                                                                                      | 769    |   |   | $ | 3,958 |   |
| Included in earnings – other than temporary impairment |   |                                                                                                   | -      |   |   |   | (740 | ) |
| Included in other comprehensive income                       |   |                                                                                                   | (11    | ) |   |   | (1,114 | ) |
| Transfer in to Level 3                                       |   |                                                                                                   | -      |   |   |   | - |   |
| Ending balance June 30,                                      |   | $                                                                                                      | 758    |   |   | $ | 2,104 |   |
|                                                         |   |                                                                                                   |   |   |   |   |   |   |

----

|                                                         |   | Fair Value Measurements Using Significant Unobservable Inputs (Level 3)Collateralized Debt Obligations |   |
|--------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------|--------|
|                                                         |   | 2010                                                                                                   |   |   | 2009 |   |
| Beginning balance, January 1,                                |   | $                                                                                                      | 759    |   |   | $ | 4,275 |   |
| Included in earnings – other than temporary impairment |   |                                                                                                   | -      |   |   |   | (763 | ) |
| Included in other comprehensive income                       |   |                                                                                                   | (1     | ) |   |   | (1,408 | ) |
| Transfer in to Level 3                                       |   |                                                                                                   | -      |   |   |   | - |   |
| Ending balance June 30,                                      |   | $                                                                                                      | 758    |   |   | $ | 2,104 |   |
|                                                         |   |                                                                                                   |   |   |   |   |   |   |

|                                                                      |   |          |   |   | Fair Value Measurements at June 30, 2010 Using                |   |
|---------------------------------------------------------------------------|--------|---------------|--------|--------|---------------------------------------------------------------|--------|
|                                                                      |   | June 30, 2010 |   |   | Quoted Prices in Active Markets for Identical Assets(Level 1) |   |   | Significant Other Observable Inputs(Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   |
| Assets:                                                                   |   |          |   |   |                                                          |   |   |   |   |   |   |   |
| Impaired loans with specific allocations of the allowance for loan losses |   | $             | 57,325 |   |                                                          | $      | - |   |   | $ | - |   |   | $ | 57,325 |   |
| Other real estate owned                                                   |   |          | 38,699 |   |                                                          |   | - |   |   |   | - |   |   |   | 38,699 |   |
| Other repossessed assets                                                  |   |          | 204    |   |                                                          |   | - |   |   |   | 204 |   |   |   | - |   |
|                                                                      |   |          |   |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |

|                                                                      |   |              |   |   | Fair Value Measurements at December 31, 2009 Using            |   |
|---------------------------------------------------------------------------|--------|-------------------|--------|--------|---------------------------------------------------------------|--------|
|                                                                      |   | December 31, 2009 |   |   | Quoted Prices in Active Markets for Identical Assets(Level 1) |   |   | Significant Other Observable Inputs(Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   |
| Assets:                                                                   |   |              |   |   |                                                          |   |   |   |   |   |   |   |
| Impaired loans with specific allocations of the allowance for loan losses |   | $                 | 52,122 |   |                                                          | $      | - |   |   | $ | - |   |   | $ | 52,122 |   |
| Other real estate owned                                                   |   |              | 21,352 |   |                                                          |   | - |   |   |   | - |   |   |   | 21,352 |   |
| Other repossessed assets                                                  |   |              | 326    |   |                                                          |   | - |   |   |   | 326 |   |   |   | - |   |
|                                                                      |   |              |   |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                             |   | June 30, 2010  |      |
|------------------------------------------------------------------|--------|----------------|-----------|
|                                                             |   | Carrying Value |      |   | Estimated Fair Value |   |
| Financial assets:                                                |   |           |      |   |   |   |
| Cash and cash equivalents                                        |   | $              | 157,876   |   |   | $ | 157,876 |   |
| Investment securities available for sale                         |   |           | 282,621   |   |   |   | 282,621 |   |
| Loans, net                                                       |   |           | 1,073,962 |   |   |   | 1,049,001 |   |
| Federal Home Loan Bank and Independent Bankers’ Bank stock |   |           | 10,735    |   |   | NM |   |
| Accrued interest receivable                                      |   |           | 5,104     |   |   |   | 5,104 |   |
|                                                             |   |           |      |   |   |   |   |   |
| Financial liabilities:                                           |   |           |      |   |   |   |   |   |
| Non-contractual deposits                                         |   | $              | 617,376   |   |   | $ | 617,376 |   |
| Contractual deposits                                             |   |           | 724,355   |   |   |   | 730,078 |   |
| Federal Home Loan Bank Advances                                  |   |           | 125,000   |   |   |   | 131,935 |   |
| Short-term borrowings                                            |   |           | 73,894    |   |   |   | 73,888 |   |
| Long-term repurchase agreements                                  |   |           | 30,000    |   |   |   | 30,276 |   |
| Subordinated debentures                                          |   |           | 33,000    |   |   |   | 12,162 |   |
| Accrued interest payable                                         |   |           | 7,637     |   |   |   | 7,637 |   |
|                                                             |   |           |      |   |   |   |   |   |

|                                                              |   | Three Months Ended June 30, |   |   | Six Months Ended June 30, |   |
|-------------------------------------------------------------------|--------|-----------------------------|--------|--------|---------------------------|--------|
|                                                              |   | 2010                        |   |   | 2009                      |   |   | 2010 |   |   | 2009 |   |
| Other real estate owned                                           |   |                        |   |   |                      |   |   |   |   |   |   |   |
|    Balance, beginning of period                    |   | $                           | 42,236 |   |                      | $      | 6,327 |   |   | $ | 22,147 |   |   | $ | 5,582 |   |
| Real estate acquired                                              |   |                        | 4,293  |   |                      |   | 7,727 |   |   |   | 25,702 |   |   |   | 8,646 |   |
| Properties sold                                                   |   |                        | (2,011 | )      |                      |   | (2,859 | ) |   |   | (4,026 | ) |   |   | (3,042 | ) |
|     Transfer to facilities used in operations |   |                        | -      |   |                      |   | (2,941 | ) |   |   | - |   |   |   | (2,941 | ) |
| Other                                                             |   |                        | (559   | )      |                      |   | 3 |   |   |   | 136 |   |   |   | 12 |   |
| Balance, June 30,                                                 |   | $                           | 43,959 |   |                      | $      | 8,257 |   |   | $ | 43,959 |   |   | $ | 8,257 |   |
|                                                              |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Valuation allowance                                               |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Balance, beginning of period                                      |   | $                           | (1,158 | )      |                      | $      | (1,295 | ) |   | $ | (795 | ) |   | $ | (1,259 | ) |
| Additions charged to expense                                      |   |                        | (4,264 | )      |                      |   | (690 | ) |   |   | (4,776 | ) |   |   | (801 | ) |
| Relieved due to sale of property                                  |   |                        | 162    |   |                      |   | 870 |   |   |   | 311 |   |   |   | 945 |   |
| Balance, June 30,                                                 |   | $                           | (5,260 | )      |                      | $      | (1,115 | ) |   | $ | (5,260 | ) |   | $ | (1,115 | ) |
|                                                              |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Expenses related to foreclosed assets during period               |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net loss (gain) on sales                                          |   | $                           | (13    | )      |                      | $      | 181 |   |   | $ | 111 |   |   | $ | 182 |   |
| Provision for unrealized losses                                   |   |                        | 4,264  |   |                      |   | 690 |   |   |   | 4,776 |   |   |   | 801 |   |
| Operating expenses                                                |   |                        | 898    |   |                      |   | 215 |   |   |   | 1,362 |   |   |   | 423 |   |
|                                                              |   | $                           | 5,149  |   |                      | $      | 1,086 |   |   | $ | 6,249 |   |   | $ | 1,406 |   |
|                                                              |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |

----

----

| ·   | We continue to focus on relationship-based lending and generated approximately $3.6 million of new commercial loans and originated $32 million of residential mortgages as well as approximately $7.5 million in consumer and indirect auto loans to prime borrowers during the quarter. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Naples Capital Advisors and TIB Bank’s trust department continued to establish new investment management and trust relationships, increasing the market value of assets under management by $49 million, or 41%, from June 30, 2009. Assets under management increased by $5 million, or 3%, during the quarter to $169 million as of June 30, 2010. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our credit risk exposure in the construction and development loan portfolio declined significantly as this portfolio segment declined 56% and 38% from $139.4 million and $97.4 million as of June 30, 2009 and December 31, 2009, respectively.  At June 30, 2010, this loan segment now represents $60.7 million and approximately 6% of our outstanding loans, down from approximately 11% of loans a year ago. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our special asset workout group was able to work with borrowers to achieve the pay off or pay down of approximately $6.4 million in nonaccrual loans, foreclose or negotiate deeds in lieu of foreclosure for approximately $4.3 million of nonaccrual loans and sell approximately $1.9 million of other real estate owned during the quarter. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The net interest margin of 2.74% during the quarter decreased 20 basis points and 4 basis points in comparison to 2.94% in the first quarter of 2010 and 2.78% in the second quarter of 2009, due primarily to $892,000 and $1.1 million decreases in net interest income, respectively. These decreases are largely attributable to the increase in nonperforming loans and other real estate owned and a change in asset mix resulting in a lower level of higher yielding loans.  We estimate that the nonperforming assets negatively impacted the margin by approximately 36 basis points during the second quarter of 2010.  Partially offsetting these factors were continued reductions of the cost of interest bearing liabilities.  We continue to maintain strong core funding sources and replace maturing higher priced time deposits with lower cost funding. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                                                                                                                                                                                                                                                                                                                                                                                |   | 2010            |      |   | 2009           |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------|-----------|--------|----------------|--------|
|  (Dollars in thousands)                                                                                                                                                                                                                                                                                                                                                                        |   | AverageBalances |      |   | Income/Expense |   |   | Yields/Rates |   |   | AverageBalances |   |   | Income/Expense |   |   | Yields/Rates |   |
| Interest-earning assets:                                                                                                                                                                                                                                                                                                                                                                            |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans (1)(2)                                                                                                                                                                                                                                                                                                                                                                                        |   | $               | 1,116,406 |   |           | $      | 14,656 |   |   |   | 5.27 | % |   | $ | 1,229,026 |   |   | $ | 17,355 |   |   |   | 5.66 | % |
| Investment securities (2)                                                                                                                                                                                                                                                                                                                                                                           |   |            | 310,715   |   |           |   | 2,292 |   |   |   | 2.96 | % |   |   | 382,478 |   |   |   | 3,495 |   |   |   | 3.67 | % |
| Money Market Mutual Funds                                                                                                                                                                                                                                                                                                                                                                           |   |            | -         |   |           |   | - |   |   |   | - |   |   |   | 36,991 |   |   |   | 27 |   |   |   | 0.29 | % |
| Interest-bearing deposits in other banks                                                                                                                                                                                                                                                                                                                                                            |   |            | 119,817   |   |           |   | 75 |   |   |   | 0.25 | % |   |   | 29,773 |   |   |   | 20 |   |   |   | 0.27 | % |
| Federal Home Loan Bank stock                                                                                                                                                                                                                                                                                                                                                                        |   |            | 10,447    |   |           |   | 7 |   |   |   | 0.27 | % |   |   | 10,482 |   |   |   | - |   |   |   | 0.00 | % |
| Federal funds sold and securities sold under agreements to resell                                                                                                                                                                                                                                                                                                                                   |   |            | -         |   |           |   | - |   |   |   | 0.00 | % |   |   | 2,407 |   |   |   | 2 |   |   |   | 0.33 | % |
| Total interest-earning assets                                                                                                                                                                                                                                                                                                                                                                       |   |            | 1,557,385 |   |           |   | 17,030 |   |   |   | 4.39 | % |   |   | 1,691,157 |   |   |   | 20,899 |   |   |   | 4.96 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-earning assets:                                                                                                                                                                                                                                                                                                                                                                        |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and due from banks                                                                                                                                                                                                                                                                                                                                                                             |   |            | 21,036    |   |           |   |   |   |   |   |   |   |   |   | 34,477 |   |   |   |   |   |   |   |   |   |
| Premises and equipment, net                                                                                                                                                                                                                                                                                                                                                                         |   |            | 50,972    |   |           |   |   |   |   |   |   |   |   |   | 38,215 |   |   |   |   |   |   |   |   |   |
| Allowance for loan losses                                                                                                                                                                                                                                                                                                                                                                           |   |            | (25,826   | )      |           |   |   |   |   |   |   |   |   |   | (24,459 | ) |   |   |   |   |   |   |   |   |
| Other assets                                                                                                                                                                                                                                                                                                                                                                                        |   |            | 82,919    |   |           |   |   |   |   |   |   |   |   |   | 69,138 |   |   |   |   |   |   |   |   |   |
| Total non-interest-earning assets                                                                                                                                                                                                                                                                                                                                                                   |   |            | 129,101   |   |           |   |   |   |   |   |   |   |   |   | 117,371 |   |   |   |   |   |   |   |   |   |
| Total assets                                                                                                                                                                                                                                                                                                                                                                                        |   | $               | 1,686,486 |   |           |   |   |   |   |   |   |   |   | $ | 1,808,528 |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                                                                                                                                                                                                                                                                                                                                                       |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing deposits:                                                                                                                                                                                                                                                                                                                                                                          |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOW accounts                                                                                                                                                                                                                                                                                                                                                                                        |   | $               | 210,200   |   |           | $      | 192 |   |   |   | 0.37 | % |   | $ | 190,457 |   |   | $ | 313 |   |   |   | 0.66 | % |
| Money market                                                                                                                                                                                                                                                                                                                                                                                        |   |            | 178,889   |   |           |   | 470 |   |   |   | 1.05 | % |   |   | 212,324 |   |   |   | 837 |   |   |   | 1.58 | % |
| Savings deposits                                                                                                                                                                                                                                                                                                                                                                                    |   |            | 75,833    |   |           |   | 137 |   |   |   | 0.72 | % |   |   | 121,709 |   |   |   | 551 |   |   |   | 1.82 | % |
| Time deposits                                                                                                                                                                                                                                                                                                                                                                                       |   |            | 714,003   |   |           |   | 3,710 |   |   |   | 2.08 | % |   |   | 707,212 |   |   |   | 5,450 |   |   |   | 3.09 | % |
| Total interest-bearing deposits                                                                                                                                                                                                                                                                                                                                                                     |   |            | 1,178,925 |   |           |   | 4,509 |   |   |   | 1.53 | % |   |   | 1,231,702 |   |   |   | 7,151 |   |   |   | 2.33 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other interest-bearing liabilities:                                                                                                                                                                                                                                                                                                                                                                 |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Short-term borrowings and FHLB advances                                                                                                                                                                                                                                                                                                                                                             |   |            | 193,268   |   |           |   | 1,206 |   |   |   | 2.50 | % |   |   | 196,501 |   |   |   | 1,305 |   |   |   | 2.66 | % |
| Long-term borrowings                                                                                                                                                                                                                                                                                                                                                                                |   |            | 63,000    |   |           |   | 671 |   |   |   | 4.27 | % |   |   | 63,000 |   |   |   | 708 |   |   |   | 4.51 | % |
| Total interest-bearing liabilities                                                                                                                                                                                                                                                                                                                                                                  |   |            | 1,435,193 |   |           |   | 6,386 |   |   |   | 1.78 | % |   |   | 1,491,203 |   |   |   | 9,164 |   |   |   | 2.46 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-bearing liabilities and shareholders’ equity:                                                                                                                                                                                                                                                                                                                                    |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand deposits                                                                                                                                                                                                                                                                                                                                                                                     |   |            | 187,898   |   |           |   |   |   |   |   |   |   |   |   | 183,329 |   |   |   |   |   |   |   |   |   |
| Other liabilities                                                                                                                                                                                                                                                                                                                                                                                   |   |            | 12,503    |   |           |   |   |   |   |   |   |   |   |   | 16,766 |   |   |   |   |   |   |   |   |   |
| Shareholders’ equity                                                                                                                                                                                                                                                                                                                                                                          |   |            | 50,892    |   |           |   |   |   |   |   |   |   |   |   | 117,230 |   |   |   |   |   |   |   |   |   |
| Total non-interest-bearing liabilities and shareholders’ equity                                                                                                                                                                                                                                                                                                                               |   |            | 251,293   |   |           |   |   |   |   |   |   |   |   |   | 317,325 |   |   |   |   |   |   |   |   |   |
| Total liabilities and shareholders’ equity                                                                                                                                                                                                                                                                                                                                                    |   | $               | 1,686,486 |   |           |   |   |   |   |   |   |   |   | $ | 1,808,528 |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate spread  (tax equivalent basis)                                                                                                                                                                                                                                                                                                                                              |   |            |      |   |           |   |   |   |   |   | 2.61 | % |   |   |   |   |   |   |   |   |   |   | 2.50 | % |
| Net interest income  (tax equivalent basis)                                                                                                                                                                                                                                                                                                                                               |   |            |      |   |           | $      | 10,644 |   |   |   |   |   |   |   |   |   |   | $ | 11,735 |   |   |   |   |   |
| Net interest margin (3) (tax equivalent basis)                                                                                                                                                                                                                                                                                                                                                      |   |            |      |   |           |   |   |   |   |   | 2.74 | % |   |   |   |   |   |   |   |   |   |   | 2.78 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| _______(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. |   |

----

|                                                                                                                                                                                                                  |   | 2010 Compared to 2009 (1)Due to Changes in |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|--------|
| (Dollars in thousands)                                                                                                                                                                                                |   | AverageVolume                              |   |   | AverageRate |   |   | Net Increase(Decrease) |   |
| Interest income                                                                                                                                                                                                       |   |                                       |   |   |   |   |   |   |   |
| Loans (2)                                                                                                                                                                                                             |   | $                                          | (1,527 | ) |   | $ | (1,172 | ) |   | $ | (2,699 | ) |
| Investment securities (2)                                                                                                                                                                                             |   |                                       | (593   | ) |   |   | (610 | ) |   |   | (1,203 | ) |
| Money Market Mutual Funds                                                                                                                                                                                             |   |                                       | (27    | ) |   |   | - |   |   |   | (27 | ) |
| Interest-bearing deposits in other banks                                                                                                                                                                              |   |                                       | 56     |   |   |   | (1 | ) |   |   | 55 |   |
| Federal Home Loan Bank stock                                                                                                                                                                                          |   |                                       | -      |   |   |   | 7 |   |   |   | 7 |   |
| Federal funds sold and securities purchased under agreements to resell                                                                                                                                                |   |                                       | (2     | ) |   |   | - |   |   |   | (2 | ) |
| Total interest income                                                                                                                                                                                                 |   |                                       | (2,093 | ) |   |   | (1,776 | ) |   |   | (3,869 | ) |
|                                                                                                                                                                                                                  |   |                                       |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                                                                                                                                                                                      |   |                                       |   |   |   |   |   |   |   |   |   |   |
| NOW accounts                                                                                                                                                                                                          |   |                                       | 30     |   |   |   | (151 | ) |   |   | (121 | ) |
| Money market                                                                                                                                                                                                          |   |                                       | (118   | ) |   |   | (249 | ) |   |   | (367 | ) |
| Savings deposits                                                                                                                                                                                                      |   |                                       | (160   | ) |   |   | (254 | ) |   |   | (414 | ) |
| Time deposits                                                                                                                                                                                                         |   |                                       | 52     |   |   |   | (1,792 | ) |   |   | (1,740 | ) |
| Short-term borrowings and FHLB advances                                                                                                                                                                               |   |                                       | (21    | ) |   |   | (78 | ) |   |   | (99 | ) |
| Long-term borrowings                                                                                                                                                                                                  |   |                                       | -      |   |   |   | (37 | ) |   |   | (37 | ) |
| Total interest expense                                                                                                                                                                                                |   |                                       | (217   | ) |   |   | (2,561 | ) |   |   | (2,778 | ) |
|                                                                                                                                                                                                                  |   |                                       |   |   |   |   |   |   |   |   |   |   |
| Change in net interest income                                                                                                                                                                                         |   | $                                          | (1,876 | ) |   | $ | 785 |   |   | $ | (1,091 | ) |
|                                                                                                                                                                                                                  |   |                                       |   |   |   |   |   |   |   |   |   |   |
| ________(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. |   |

----

| (Dollars in thousands)                         |   |     2010 |   |   |     2009 |   |
|------------------------------------------------|--------|-------------------------|--------|--------|-------------------------|--------|
| Service charges on deposit accounts            |   | $                       | 839    |   |                    | $      | 1,202 |   |
| Investment securities gains, net               |   |                    | 993    |   |                    |   | 95 |   |
| Fees on mortgage loans sold                    |   |                    | 481    |   |                    |   | 318 |   |
| Investment advisory fees                       |   |                    | 313    |   |                    |   | 228 |   |
| Debit card income                              |   |                    | 389    |   |                    |   | 213 |   |
| Earnings on bank owned life insurance policies |   |                    | 265    |   |                    |   | 130 |   |
| Other                                          |   |                    | 214    |   |                    |   | 146 |   |
| Total non-interest income                      |   | $                       | 3,494  |   |                    | $      | 2,332 |   |
|                                           |   |                    |   |   |                    |   |   |   |

----

| (Dollars in thousands)                         |   |           2010 |   |   |        2009 |   |
|------------------------------------------------|--------|-------------------------------------------------------------|--------|--------|-------------------------------------------|--------|
| Salary and employee benefits                   |   | $                                                           | 6,413  |   |                                      | $      | 7,068 |   |
| Net occupancy expense                          |   |                                                        | 2,273  |   |                                      |   | 2,438 |   |
| Foreclosed asset related expense               |   |                                                        | 5,149  |   |                                      |   | 1,086 |   |
| Legal, and other professional                  |   |                                                        | 777    |   |                                      |   | 860 |   |
| Computer services                              |   |                                                        | 647    |   |                                      |   | 663 |   |
| Collection costs                               |   |                                                        | (4     | )      |                                      |   | 118 |   |
| Postage, courier and armored car               |   |                                                        | 270    |   |                                      |   | 280 |   |
| Marketing and community relations              |   |                                                        | 276    |   |                                      |   | 241 |   |
| Operating supplies                             |   |                                                        | 130    |   |                                      |   | 194 |   |
| Directors’ fees                          |   |                                                        | 214    |   |                                      |   | 221 |   |
| Travel expenses                                |   |                                                        | 84     |   |                                      |   | 93 |   |
| FDIC and state assessments                     |   |                                                        | 1,453  |   |                                      |   | 951 |   |
| Special FDIC assessment                        |   |                                                        | -      |   |                                      |   | 800 |   |
| Amortization of intangibles                    |   |                                                        | 389    |   |                                      |   | 419 |   |
| Net gains on disposition of repossessed assets |   |                                                        | 7      |   |                                      |   | (36 | ) |
| Capital raise expenses                         |   |                                                        | 1,597  |   |                                      |   | - |   |
| Insurance, non-building                        |   |                                                        | 340    |   |                                      |   | 82 |   |
| Other operating expense                        |   |                                                        | 480    |   |                                      |   | 680 |   |
| Total non-interest expense                     |   | $                                                           | 20,495 |   |                                      | $      | 16,158 |   |
|                                           |   |                                                        |   |   |                                      |   |   |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                            |   | 2010            |      |   | 2009           |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------|-----------|--------|----------------|--------|
|  (Dollars in thousands)                                                                                                                                                                                                                                                                                                                                                                                    |   | AverageBalances |      |   | Income/Expense |   |   | Yields/Rates |   |   | AverageBalances |   |   | Income/Expense |   |   | Yields/Rates |   |
| Interest-earning assets:                                                                                                                                                                                                                                                                                                                                                                                        |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans (1)(2)                                                                                                                                                                                                                                                                                                                                                                                                    |   | $               | 1,147,456 |   |           | $      | 30,674 |   |   |   | 5.39 | % |   | $ | 1,227,339 |   |   | $ | 35,196 |   |   |   | 5.78 | % |
| Investment securities (2)                                                                                                                                                                                                                                                                                                                                                                                       |   |            | 297,279   |   |           |   | 4,537 |   |   |   | 3.08 | % |   |   | 335,415 |   |   |   | 6,409 |   |   |   | 3.85 | % |
| Money Market Mutual Funds                                                                                                                                                                                                                                                                                                                                                                                       |   |            | -         |   |           |   | - |   |   |   | - |   |   |   | 60,569 |   |   |   | 130 |   |   |   | 0.43 | % |
| Interest-bearing deposits in other banks                                                                                                                                                                                                                                                                                                                                                                        |   |            | 120,006   |   |           |   | 149 |   |   |   | 0.25 | % |   |   | 35,519 |   |   |   | 40 |   |   |   | 0.23 | % |
| Federal Home Loan Bank stock                                                                                                                                                                                                                                                                                                                                                                                    |   |            | 10,447    |   |           |   | 10 |   |   |   | 0.19 | % |   |   | 11,389 |   |   |   | (19 | ) |   |   | (0.34 | )% |
| Federal funds sold and securities sold under agreements to resell                                                                                                                                                                                                                                                                                                                                               |   |            | 7         |   |           |   | - |   |   |   | 0.00 | % |   |   | 4,985 |   |   |   | 5 |   |   |   | 0.20 | % |
| Total interest-earning assets                                                                                                                                                                                                                                                                                                                                                                                   |   |            | 1,575,195 |   |           |   | 35,370 |   |   |   | 4.53 | % |   |   | 1,675,216 |   |   |   | 41,761 |   |   |   | 5.03 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                            |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-earning assets:                                                                                                                                                                                                                                                                                                                                                                                    |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and due from banks                                                                                                                                                                                                                                                                                                                                                                                         |   |            | 22,821    |   |           |   |   |   |   |   |   |   |   |   | 33,049 |   |   |   |   |   |   |   |   |   |
| Premises and equipment, net                                                                                                                                                                                                                                                                                                                                                                                     |   |            | 45,918    |   |           |   |   |   |   |   |   |   |   |   | 38,210 |   |   |   |   |   |   |   |   |   |
| Allowance for loan losses                                                                                                                                                                                                                                                                                                                                                                                       |   |            | (26,651   | )      |           |   |   |   |   |   |   |   |   |   | (23,908 | ) |   |   |   |   |   |   |   |   |
| Other assets                                                                                                                                                                                                                                                                                                                                                                                                    |   |            | 76,087    |   |           |   |   |   |   |   |   |   |   |   | 73,056 |   |   |   |   |   |   |   |   |   |
| Total non-interest-earning assets                                                                                                                                                                                                                                                                                                                                                                               |   |            | 118,175   |   |           |   |   |   |   |   |   |   |   |   | 120,407 |   |   |   |   |   |   |   |   |   |
| Total assets                                                                                                                                                                                                                                                                                                                                                                                                    |   | $               | 1,693,370 |   |           |   |   |   |   |   |   |   |   | $ | 1,795,623 |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                            |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                                                                                                                                                                                                                                                                                                                                                                   |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing deposits:                                                                                                                                                                                                                                                                                                                                                                                      |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOW accounts                                                                                                                                                                                                                                                                                                                                                                                                    |   | $               | 210,356   |   |           | $      | 384 |   |   |   | 0.37 | % |   | $ | 179,061 |   |   | $ | 642 |   |   |   | 0.72 | % |
| Money market                                                                                                                                                                                                                                                                                                                                                                                                    |   |            | 191,023   |   |           |   | 998 |   |   |   | 1.05 | % |   |   | 184,316 |   |   |   | 1,499 |   |   |   | 1.64 | % |
| Savings deposits                                                                                                                                                                                                                                                                                                                                                                                                |   |            | 81,490    |   |           |   | 291 |   |   |   | 0.72 | % |   |   | 106,930 |   |   |   | 959 |   |   |   | 1.81 | % |
| Time deposits                                                                                                                                                                                                                                                                                                                                                                                                   |   |            | 701,993   |   |           |   | 7,738 |   |   |   | 2.22 | % |   |   | 728,735 |   |   |   | 11,950 |   |   |   | 3.31 | % |
| Total interest-bearing deposits                                                                                                                                                                                                                                                                                                                                                                                 |   |            | 1,184,862 |   |           |   | 9,411 |   |   |   | 1.60 | % |   |   | 1,199,042 |   |   |   | 15,050 |   |   |   | 2.53 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                            |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other interest-bearing liabilities:                                                                                                                                                                                                                                                                                                                                                                             |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Short-term borrowings and FHLB advances                                                                                                                                                                                                                                                                                                                                                                         |   |            | 193,679   |   |           |   | 2,443 |   |   |   | 2.54 | % |   |   | 224,045 |   |   |   | 2,735 |   |   |   | 2.46 | % |
| Long-term borrowings                                                                                                                                                                                                                                                                                                                                                                                            |   |            | 63,000    |   |           |   | 1,325 |   |   |   | 4.24 | % |   |   | 63,000 |   |   |   | 1,444 |   |   |   | 4.62 | % |
| Total interest-bearing liabilities                                                                                                                                                                                                                                                                                                                                                                              |   |            | 1,441,541 |   |           |   | 13,179 |   |   |   | 1.84 | % |   |   | 1,486,087 |   |   |   | 19,229 |   |   |   | 2.61 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                            |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-bearing liabilities and shareholders’ equity:                                                                                                                                                                                                                                                                                                                                                |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand deposits                                                                                                                                                                                                                                                                                                                                                                                                 |   |            | 186,535   |   |           |   |   |   |   |   |   |   |   |   | 169,824 |   |   |   |   |   |   |   |   |   |
| Other liabilities                                                                                                                                                                                                                                                                                                                                                                                               |   |            | 12,058    |   |           |   |   |   |   |   |   |   |   |   | 18,026 |   |   |   |   |   |   |   |   |   |
| Shareholders’ equity                                                                                                                                                                                                                                                                                                                                                                                      |   |            | 53,236    |   |           |   |   |   |   |   |   |   |   |   | 121,686 |   |   |   |   |   |   |   |   |   |
| Total non-interest-bearing liabilities and shareholders’ equity                                                                                                                                                                                                                                                                                                                                           |   |            | 251,829   |   |           |   |   |   |   |   |   |   |   |   | 309,536 |   |   |   |   |   |   |   |   |   |
| Total liabilities and shareholders’ equity                                                                                                                                                                                                                                                                                                                                                                |   | $               | 1,693,370 |   |           |   |   |   |   |   |   |   |   | $ | 1,795,623 |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                            |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate spread  (tax equivalent basis)                                                                                                                                                                                                                                                                                                                                                          |   |            |      |   |           |   |   |   |   |   | 2.69 | % |   |   |   |   |   |   |   |   |   |   | 2.42 | % |
| Net interest income  (tax equivalent basis)                                                                                                                                                                                                                                                                                                                                                           |   |            |      |   |           | $      | 22,191 |   |   |   |   |   |   |   |   |   |   | $ | 22,532 |   |   |   |   |   |
| Net interest margin (3) (tax equivalent basis)                                                                                                                                                                                                                                                                                                                                                                  |   |            |      |   |           |   |   |   |   |   | 2.84 | % |   |   |   |   |   |   |   |   |   |   | 2.71 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                            |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| _______(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. |   |

----

|                                                                                                                                                                                                                  |   | 2010 Compared to 2009 (1)Due to Changes in |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|--------|
| (Dollars in thousands)                                                                                                                                                                                                |   | AverageVolume                              |   |   | AverageRate |   |   | Net Increase(Decrease) |   |
| Interest income                                                                                                                                                                                                       |   |                                       |   |   |   |   |   |   |   |
| Loans (2)                                                                                                                                                                                                             |   | $                                          | (2,215 | ) |   | $ | (2,307 | ) |   | $ | (4,522 | ) |
| Investment securities (2)                                                                                                                                                                                             |   |                                       | (676   | ) |   |   | (1,196 | ) |   |   | (1,872 | ) |
| Money Market Mutual Funds                                                                                                                                                                                             |   |                                       | (130   | ) |   |   | - |   |   |   | (130 | ) |
| Interest-bearing deposits in other banks                                                                                                                                                                              |   |                                       | 104    |   |   |   | 5 |   |   |   | 109 |   |
| Federal Home Loan Bank stock                                                                                                                                                                                          |   |                                       | -      |   |   |   | 29 |   |   |   | 29 |   |
| Federal funds sold and securities purchased under agreements to resell                                                                                                                                                |   |                                       | (5     | ) |   |   | - |   |   |   | (5 | ) |
| Total interest income                                                                                                                                                                                                 |   |                                       | (2,922 | ) |   |   | (3,469 | ) |   |   | (6,391 | ) |
|                                                                                                                                                                                                                  |   |                                       |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                                                                                                                                                                                      |   |                                       |   |   |   |   |   |   |   |   |   |   |
| NOW accounts                                                                                                                                                                                                          |   |                                       | 98     |   |   |   | (356 | ) |   |   | (258 | ) |
| Money market                                                                                                                                                                                                          |   |                                       | 53     |   |   |   | (554 | ) |   |   | (501 | ) |
| Savings deposits                                                                                                                                                                                                      |   |                                       | (189   | ) |   |   | (479 | ) |   |   | (668 | ) |
| Time deposits                                                                                                                                                                                                         |   |                                       | (424   | ) |   |   | (3,788 | ) |   |   | (4,212 | ) |
| Short-term borrowings and FHLB advances                                                                                                                                                                               |   |                                       | (381   | ) |   |   | 89 |   |   |   | (292 | ) |
| Long-term borrowings                                                                                                                                                                                                  |   |                                       | -      |   |   |   | (119 | ) |   |   | (119 | ) |
| Total interest expense                                                                                                                                                                                                |   |                                       | (843   | ) |   |   | (5,207 | ) |   |   | (6,050 | ) |
|                                                                                                                                                                                                                  |   |                                       |   |   |   |   |   |   |   |   |   |   |
| Change in net interest income                                                                                                                                                                                         |   | $                                          | (2,079 | ) |   | $ | 1,738 |   |   | $ | (341 | ) |
|                                                                                                                                                                                                                  |   |                                       |   |   |   |   |   |   |   |   |   |   |
| ________(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. |   |

----

| (Dollars in thousands)                         |   | 2010   |   |   | 2009   |   |
|------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Service charges on deposit accounts            |   | $      | 1,754  |   |   | $      | 2,168 |   |
| Investment securities gains, net               |   |   | 2,635  |   |   |   | 691 |   |
| Fees on mortgage loans sold                    |   |   | 764    |   |   |   | 433 |   |
| Investment advisory fees                       |   |   | 620    |   |   |   | 421 |   |
| Loss on sale of indirect loans                 |   |   | (346   | )      |   |   | - |   |
| Debit card income                              |   |   | 733    |   |   |   | 398 |   |
| Earnings on bank owned life insurance policies |   |   | 365    |   |   |   | 261 |   |
| Other                                          |   |   | 383    |   |   |   | 339 |   |
| Total non-interest income                      |   | $      | 6,908  |   |   | $      | 4,711 |   |
|                                           |   |   |   |   |   |   |   |   |

----

|                                           |   |   |   |   | 2010                |   |   |                |   |   |   |   |   | 2009                |   |   |                |   |
|------------------------------------------------|--------|--------|--------|--------|---------------------|--------|--------|---------------------|--------|--------|--------|--------|--------|---------------------|--------|--------|---------------------|--------|
| (Dollars in thousands)                         |   | Total  |   |   | RiversideOperations |   |   | Excluding Riverside |   |   | Total  |   |   | RiversideOperations |   |   | Excluding Riverside |   |
| Salary and employee benefits                   |   | $      | 13,249 |   |                | $      | 959    |                |   | $      | 12,290 |   |   | $                   | 14,448 |   |                | $      | 946 |   |   | $ | 13,502 |   |
| Net occupancy expense                          |   |   | 4,557  |   |                |   | 710    |                |   |   | 3,847  |   |   |                | 4,590  |   |                |   | 696 |   |   |   | 3,894 |   |
| Foreclosed asset related expense               |   |   | 6,249  |   |                |   | -      |                |   |   | 6,249  |   |   |                | 1,406  |   |                |   | - |   |   |   | 1,406 |   |
| Legal, and other professional                  |   |   | 1,640  |   |                |   | 3      |                |   |   | 1,637  |   |   |                | 1,308  |   |                |   | 264 |   |   |   | 1,044 |   |
| Computer services                              |   |   | 1,369  |   |                |   | 344    |                |   |   | 1,025  |   |   |                | 1,288  |   |                |   | 213 |   |   |   | 1,075 |   |
| Collection costs                               |   |   | 39     |   |                |   | -      |                |   |   | 39     |   |   |                | 222    |   |                |   | - |   |   |   | 222 |   |
| Postage, courier and armored car               |   |   | 552    |   |                |   | 51     |                |   |   | 501    |   |   |                | 531    |   |                |   | 103 |   |   |   | 428 |   |
| Marketing and community relations              |   |   | 658    |   |                |   | 86     |                |   |   | 572    |   |   |                | 519    |   |                |   | 52 |   |   |   | 467 |   |
| Operating supplies                             |   |   | 275    |   |                |   | 44     |                |   |   | 231    |   |   |                | 336    |   |                |   | 92 |   |   |   | 244 |   |
| Directors’ fees                          |   |   | 409    |   |                |   | -      |                |   |   | 409    |   |   |                | 453    |   |                |   | - |   |   |   | 453 |   |
| Travel expenses                                |   |   | 166    |   |                |   | 2      |                |   |   | 164    |   |   |                | 176    |   |                |   | 5 |   |   |   | 171 |   |
| FDIC and state assessments                     |   |   | 2,315  |   |                |   | 444    |                |   |   | 1,871  |   |   |                | 1,522  |   |                |   | 241 |   |   |   | 1,281 |   |
| FDIC special assessment                        |   |   | -      |   |                |   | -      |                |   |   | -      |   |   |                | 800    |   |                |   | 169 |   |   |   | 631 |   |
| Amortization of intangibles                    |   |   | 779    |   |                |   | 509    |                |   |   | 270    |   |   |                | 652    |   |                |   | 382 |   |   |   | 270 |   |
| Net gains on disposition of repossessed assets |   |   | (46    | )      |                |   | -      |                |   |   | (46    | )      |   |                | (105   | )      |                |   | - |   |   |   | (105 | ) |
| Capital raise expense                          |   |   | 1,597  |   |                |   | -      |                |   |   | 1,597  |   |   |                | -      |   |                |   | - |   |   |   | - |   |
| Insurance, non-building                        |   |   | 652    |   |                |   | 1      |                |   |   | 651    |   |   |                | 163    |   |                |   | 1 |   |   |   | 162 |   |
| Other operating expense                        |   |   | 1,069  |   |                |   | 24     |                |   |   | 1,045  |   |   |                | 1,216  |   |                |   | 75 |   |   |   | 1,141 |   |
| Total non-interest expense                     |   | $      | 35,529 |   |                | $      | 3,177  |                |   | $      | 32,352 |   |   | $                   | 29,525 |   |                | $      | 3,239 |   |   | $ | 26,286 |   |
|                                           |   |   |   |   |                |   |   |                |   |   |   |   |   |                |   |   |                |   |   |   |   |   |   |   |

----

|                             |   | June 30, 2010               |    |   | December 31, 2009      |   |
|----------------------------------|--------|-----------------------------|---------|--------|------------------------|--------|
| (Dollars in thousands)           |   | Commercial Real Estate |    |   | Percentage Composition |   |   | Commercial Real Estate |   |   | Percentage Composition |   |
| Mixed Use Commercial/Residential |   | $                           | 101,425 |   |                   |   | 16 | % |   | $ | 102,901 |   |   |   | 15 | % |
| Office Buildings                 |   |                        | 100,719 |   |                   |   | 16 | % |   |   | 103,426 |   |   |   | 15 | % |
| Hotels/Motels                    |   |                        | 68,339  |   |                   |   | 10 | % |   |   | 78,992 |   |   |   | 12 | % |
| 1-4 Family and Multi Family      |   |                        | 66,344  |   |                   |   | 10 | % |   |   | 75,342 |   |   |   | 11 | % |
| Guesthouses                      |   |                        | 92,591  |   |                   |   | 14 | % |   |   | 94,663 |   |   |   | 14 | % |
| Retail Buildings                 |   |                        | 76,222  |   |                   |   | 12 | % |   |   | 78,852 |   |   |   | 12 | % |
| Restaurants                      |   |                        | 49,758  |   |                   |   | 8 | % |   |   | 50,395 |   |   |   | 7 | % |
| Marinas/Docks                    |   |                        | 20,182  |   |                   |   | 3 | % |   |   | 19,521 |   |   |   | 3 | % |
| Warehouse and Industrial         |   |                        | 28,208  |   |                   |   | 4 | % |   |   | 32,328 |   |   |   | 5 | % |
| Other                            |   |                        | 45,891  |   |                   |   | 7 | % |   |   | 43,989 |   |   |   | 6 | % |
| Total                            |   | $                           | 649,679 |   |                   |   | 100 | % |   | $ | 680,409 |   |   |   | 100 | % |
|                             |   |                        |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |

|                                     |   | June 30, 2010                |   |   | December 31, 2009      |   |
|------------------------------------------|--------|------------------------------|--------|--------|------------------------|--------|
|                                     |   | Construction and Vacant Land |   |   | Percentage Composition |   |   | Construction and Vacant Land |   |   | Percentage Composition |   |
| Construction:                            |   |                         |   |   |                   |   |   |   |   |   |   |   |
| Residential – owner occupied       |   | $                            | 2,991  |   |                   |   | 5 | % |   | $ | 6,024 |   |   |   | 6 | % |
| Residential – commercial developer |   |                         | 1,669  |   |                   |   | 3 | % |   |   | 6,574 |   |   |   | 7 | % |
| Commercial structure                     |   |                         | 4,488  |   |                   |   | 7 | % |   |   | 13,127 |   |   |   | 13 | % |
|                                     |   |                         | 9,148  |   |                   |   | 15 | % |   |   | 25,725 |   |   |   | 26 | % |
| Land:                                    |   |                         |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Raw land                                 |   |                         | 10,556 |   |                   |   | 17 | % |   |   | 20,684 |   |   |   | 21 | % |
| Residential lots                         |   |                         | 17,004 |   |                   |   | 28 | % |   |   | 12,773 |   |   |   | 13 | % |
| Land development                         |   |                         | 9,054  |   |                   |   | 15 | % |   |   | 16,877 |   |   |   | 17 | % |
| Commercial lots                          |   |                         | 14,936 |   |                   |   | 25 | % |   |   | 21,365 |   |   |   | 23 | % |
| Total land                               |   |                         | 51,550 |   |                   |   | 85 | % |   |   | 71,699 |   |   |   | 74 | % |
|                                     |   |                         |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                    |   | $                            | 60,698 |   |                   |   | 100 | % |   | $ | 97,424 |   |   |   | 100 | % |
|                                     |   |                         |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |

----

| (Dollars in thousands)                                                                                                 |   | June 30, 2010 |    |   | December 31, 2009 |   |
|------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------|--------|-------------------|--------|
| Total non-accrual loans                                                                                                |   | $             | 76,632  |   |              | $      | 72,833 |   |
| Accruing loans delinquent 90 days or more                                                                              |   |          | -       |   |              |   | - |   |
| Total non-performing loans                                                                                             |   |          | 76,632  |   |              |   | 72,833 |   |
|                                                                                                                   |   |          |    |   |              |   |   |   |
| Non-accrual investment securities                                                                                      |   |          | 758     |   |              |   | 759 |   |
| Repossessed personal property (primarily indirect auto loans)                                                          |   |          | 204     |   |              |   | 326 |   |
| Other real estate owned                                                                                                |   |          | 38,699  |   |              |   | 21,352 |   |
| Other assets (*)                                                                                                       |   |          | 2,097   |   |              |   | 2,090 |   |
| Total  non-performing assets                                                                                 |   | $             | 118,390 |   |              | $      | 97,360 |   |
|                                                                                                                   |   |          |    |   |              |   |   |   |
| Allowance for loan losses                                                                                              |   | $             | 27,710  |   |              | $      | 29,083 |   |
|                                                                                                                   |   |          |    |   |              |   |   |   |
| Loans in compliance with terms modified in troubled debt restructurings and not included in non-performing loans above |   | $             | 22,318  |   |              | $      | 35,906 |   |
|                                                                                                                   |   |          |    |   |              |   |   |   |
| Non-performing assets as a percent of total assets                                                                     |   |          | 7.14    | %      |              |   | 5.71 | % |
| Non-performing loans as a percent of gross loans                                                                       |   |          | 6.96    | %      |              |   | 6.08 | % |
| Allowance for loan losses as a percent of non-performing loans                                                         |   |          | 36.16   | %      |              |   | 39.93 | % |
| Annualized net charge-offs as a percent of average loans for the quarter ended                                         |   |          | 2.81    | %      |              |   | 6.40 | % |
|                                                                                                                   |   |          |    |   |              |   |   |   |

|   | (*) | In 1998, TIB Bank made a $10.0 million loan to construct a lumber mill in northern Florida. Of this amount, $6.4 million had been sold by the Bank to other lenders. The loan was 80% guaranteed as to principal and interest by the U.S. Department of Agriculture (USDA). In addition to business real estate and equipment, the loan was collateralized by the business owner’s interest in a trust. Under provisions of the trust agreement, beneficiaries cannot receive trust assets until November 2010. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (Dollars in thousands)                 |   | June 30, 2010   |   |   | December 31, 2009   |   |
|----------------------------------------|--------|-----------------|--------|--------|---------------------|--------|
| Collateral Description                 |   | Number of Loans |   |   | Outstanding Balance |   |   | Number of Loans |   |   | Outstanding Balance |   |
| Residential  1-4 family      |   |            | 42     |   |                | $      | 11,115 |   |   |   | 36 |   |   | $ | 9,250 |   |
| Home equity loans                      |   |            | 9      |   |                |   | 1,376 |   |   |   | 8 |   |   |   | 1,488 |   |
| Commercial 1-4 family investment       |   |            | 12     |   |                |   | 7,274 |   |   |   | 19 |   |   |   | 8,733 |   |
| Commercial and agricultural            |   |            | 9      |   |                |   | 1,982 |   |   |   | 7 |   |   |   | 2,454 |   |
| Commercial real estate                 |   |            | 35     |   |                |   | 39,734 |   |   |   | 29 |   |   |   | 24,392 |   |
| Residential land development           |   |            | 16     |   |                |   | 14,643 |   |   |   | 13 |   |   |   | 25,295 |   |
| Government guaranteed loans            |   |            | 1      |   |                |   | 137 |   |   |   | 2 |   |   |   | 143 |   |
| Indirect auto, auto and consumer loans |   |            | 38     |   |                |   | 371 |   |   |   | 97 |   |   |   | 1,078 |   |
|                                   |   |            |   |   |                | $      | 76,632 |   |   |   |   |   |   | $ | 72,833 |   |

| Nonaccrual Loan Activity (Other Than Indirect Auto and Consumer) |   |
|------------------------------------------------------------------|--------|
| (Dollars in thousands)                                           |   |
|                                                             |   |   |   |
| Nonaccrual loans at March 31, 2010                               |   | $ | 55,288 |   |
| Returned to accrual                                              |   |   | - |   |
| Net principal paid down on nonaccrual loans                      |   |   | (6,427 | ) |
| Charge-offs                                                      |   |   | (7,392 | ) |
| Loans  foreclosed – transferred to OREO          |   |   | (4,293 | ) |
| Loans placed on nonaccrual                                       |   |   | 39,085 |   |
| Nonaccrual loans at June 30, 2010                                |   | $ | 76,261 |   |
|                                                             |   |   |   |   |

----

| Significant Nonaccrual Loans (Other Than Indirect Auto and Consumer)                       |   |
|--------------------------------------------------------------------------------------------|--------|
| (Dollars in thousands)                                                                     |   |
| Collateral Description                                                                     |   | Original Loan Amount |   |   | Original Loan to Value (Based on Original Appraisal) |   |   | Current Loan Amount |   |   | Specific Allocation of Reserve in Allowance for Loan Losses at June 30, 2010 |   |   | Amount Charged Against Allowance for Loan Losses During the Quarter Ended June 30, 2010 |   |   | Impact on the Provision for Loan Losses During the Quarter Ended June 30, 2010 (1) |   |
| Arising in Second Quarter 2010                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Auto dealerships and commercial land in SW Florida                                         |   | $ | 12,938 |   |   |   | 59 | % |   | $ | 12,476 |   |   | $ | 241 |   |   | $ | - |   |   | $ | 241 |   |
| Owner-occupied commercial real estate in Key West Florida                                  |   |   | 11,772 |   |   |   | 75 | % |   |   | 11,583 |   |   |   | 836 |   |   |   | - |   |   |   | 836 |   |
| Two office buildings in SW Florida                                                         |   |   | 2,450 |   |   |   | 52 | % |   |   | 2,212 |   |   |   | 349 |   |   |   | 138 |   |   |   | 205 |   |
| 1-4 family residential in Florida Keys                                                     |   |   | 2,047 |   |   |   | 77 | % |   |   | 1,880 |   |   |   | 193 |   |   |   | 86 |   |   |   | 279 |   |
| Mobile home park in Florida Keys                                                           |   |   | 1,375 |   |   |   | 69 | % |   |   | 1,282 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Nursery land and residence in South Florida                                                |   |   | 1,425 |   |   |   | 83 | % |   |   | 944 |   |   |   | 420 |   |   |   | - |   |   |   | 420 |   |
| Mixed use – office/residential in Key West Florida                                   |   |   | 862 |   |   |   | 63 | % |   |   | 849 |   |   |   | 35 |   |   |   | - |   |   |   | 35 |   |
| Office condominiums in SW Florida                                                          |   |   | 848 |   |   |   | 74 | % |   |   | 720 |   |   |   | 58 |   |   |   | 106 |   |   |   | 150 |   |
| Office space in Florida Keys                                                               |   |   | 799 |   |   |   | 75 | % |   |   | 678 |   |   |   | 58 |   |   |   | 87 |   |   |   | 140 |   |
| Numerous smaller balance primarily 1-4 family residential and commercial real estate loans |   |   |   |   |   |   |   |   |   |   | 3,690 |   |   |   | 943 |   |   |   | 1,551 |   |   |   | 2,037 |   |
|                                                                                       |   |   |   |   |   | Total |   |   | $ | 36,314 |   |   | $ | 3,133 |   |   | $ | 1,968 |   |   | $ | 4,343 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nonaccrual Prior to Second Quarter 2010 Remaining on Nonaccrual at June 30, 2010           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial lots in SW Florida                                                              |   | $ | 3,840 |   |   |   | 54 | % |   | $ | 3,300 |   |   | $ | 415 |   |   | $ | 449 |   |   | $ | 152 |   |
| Commercial lots in SW Florida                                                              |   |   | 1,450 |   |   |   | 76 | % |   |   | 1,383 |   |   |   | 49 |   |   |   | - |   |   |   | - |   |
| Commercial 1-4 family residential                                                          |   |   | 1,288 |   |   |   | 75 | % |   |   | 1,228 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Commercial real estate SW Florida                                                          |   |   | 1,700 |   |   |   | 65 | % |   |   | 965 |   |   |   | 77 |   |   |   | 188 |   |   |   | - |   |
| Waterfront 1-4 family residential home                                                     |   |   | 1,050 |   |   |   | 32 | % |   |   | 1,023 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Commercial 1-4 family residential                                                          |   |   | 1,640 |   |   |   | 75 | % |   |   | 1,323 |   |   |   | 133 |   |   |   | - |   |   |   | 31 |   |
| Mixed use - developer                                                                      |   |   | 3.602 |   |   |   | 80 | % |   |   | 2,300 |   |   |   | 248 |   |   |   | - |   |   |   | 232 |   |
| Two restaurants SW Florida                                                                 |   |   | 5,099 |   |   |   | 57-70 | % |   |   | 4,000 |   |   |   | 627 |   |   |   | 914 |   |   |   | 229 |   |
| Office Building - developer                                                                |   |   | 1,346 |   |   |   | 53 | % |   |   | 1,250 |   |   |   | 158 |   |   |   | - |   |   |   | (19 | ) |
| Vacant land – residential development                                                |   |   | 4,750 |   |   |   | 42 | % |   |   | 4,795 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Commercial 1-4 family residential                                                          |   |   | 1,050 |   |   |   | 33 | % |   |   | 1,155 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Two commercial 1-4 family residential                                                      |   |   | 1,281 |   |   |   | 80 | % |   |   | 1,045 |   |   |   | 84 |   |   |   | - |   |   |   | - |   |
| Office building                                                                            |   |   | 1,118 |   |   |   | 66 | % |   |   | 1,095 |   |   |   | 215 |   |   |   | - |   |   |   | 202 |   |
| Numerous smaller balance primarily 1-4 family residential and commercial real estate loans |   |   |   |   |   |   |   |   |   |   | 15,085 |   |   |   | 1,172 |   |   |   | 490 |   |   |   | 661 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   | $ | 39,947 |   |   | $ | 3,178 |   |   | $ | 2,041 |   |   | $ | 1,488 |   |
|                                                                                       |   |   |   |   |   | Total |   |   | $ | 76,261 |   |   | $ | 6,311 |   |   | $ | 4,009 |   |   | $ | 5,831 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| (Dollars in thousands)                            |   | June 30, 2010 |    |   | December 31, 2009 |   |
|---------------------------------------------------|--------|---------------|---------|--------|-------------------|--------|
| Loans with no allocated allowance for loan losses |   | $             | 23,415  |   |              | $      | 60,629 |   |
| Loans with allocated allowance for loan losses    |   |          | 88,354  |   |              |   | 87,823 |   |
| Total                                             |   | $             | 111,769 |   |              | $      | 148,452 |   |
|                                              |   |          |    |   |              |   |   |   |
| Amount of the allowance for loan losses allocated |   | $             | 7,358   |   |              | $      | 9,040 |   |
|                                              |   |          |    |   |              |   |   |   |
| Amount of nonaccrual loans classified as impaired |   | $             | 76,261  |   |              | $      | 71,755 |   |
|                                              |   |          |    |   |              |   |   |   |

|                   |   | June 30, 2010              |    |
|------------------------|--------|----------------------------|---------|
| (Dollars in thousands) |   |  Total Impaired Loans |    |   | Impaired LoansWith Allocated Allowance |   |   | Amount of Allowance Allocated |   |   | Impaired Loans With No Allocated Allowance |   |
| Commercial             |   | $                          | 4,433   |   |   | $ | 2,227 |   |   | $ | 550 |   |   | $ | 2,206 |   |
| Commercial Real Estate |   |                       | 90,450  |   |   |   | 73,836 |   |   |   | 5,093 |   |   |   | 16,614 |   |
| Residential            |   |                       | 14,410  |   |   |   | 10,172 |   |   |   | 998 |   |   |   | 4,238 |   |
| Consumer               |   |                       | 100     |   |   |   | 100 |   |   |   | 100 |   |   |   | - |   |
| HELOC                  |   |                       | 2,376   |   |   |   | 2,019 |   |   |   | 617 |   |   |   | 357 |   |
| Total                  |   | $                          | 111,769 |   |   | $ | 88,354 |   |   | $ | 7,358 |   |   | $ | 23,415 |   |

|                   |   | December 31, 2009          |    |
|------------------------|--------|----------------------------|---------|
| (Dollars in thousands) |   |  Total Impaired Loans |    |   | Impaired Loans With Allocated Allowance |   |   | Amount of Allowance Allocated |   |   | Impaired Loans With No Allocated Allowance |   |
| Commercial             |   | $                          | 6,210   |   |   | $ | 4,847 |   |   | $ | 1,455 |   |   | $ | 1,363 |   |
| Commercial Real Estate |   |                       | 123,452 |   |   |   | 70,868 |   |   |   | 5,455 |   |   |   | 52,584 |   |
| Residential            |   |                       | 16,261  |   |   |   | 10,158 |   |   |   | 1,704 |   |   |   | 6,103 |   |
| Consumer               |   |                       | 699     |   |   |   | 699 |   |   |   | 274 |   |   |   | - |   |
| HELOC                  |   |                       | 1,830   |   |   |   | 1,251 |   |   |   | 152 |   |   |   | 579 |   |
| Total                  |   | $                          | 148,452 |   |   | $ | 87,823 |   |   | $ | 9,040 |   |   | $ | 60,629 |   |

----

| OREO Activity             |   |
|---------------------------|--------|
| (Dollars in thousands)    |   |
|                      |   |   |   |
| OREO as of March 31, 2010 |   | $ | 41,078 |   |
| Real estate acquired      |   |   | 4,293 |   |
| Valuation Adjustments     |   |   | (4,250 | ) |
| Properties sold           |   |   | (1,863 | ) |
| Other                     |   |   | (559 | ) |
| OREO as of June 30, 2010  |   | $ | 38,699 |   |
|                      |   |   |   |   |

| OREO Analysis as of June 30, 2010                              |   |
|----------------------------------------------------------------|--------|
| (Dollars in thousands)                                         |   |
| Property Description                                           |   | Original Loan Amount |   |   | Original LTV |   |   | Carrying Value atJune 30, 2010 |   |
| Acquired in Second Quarter of  2010                  |   |   |   |   |   |   |   |   |   |
| Commercial real estate (3 loans)                               |   |   |   |   |   |   |   | $ | 2,840 |   |
| Other 1-4 family residential (4 loans)                         |   |   |   |   |   |   |   |   | 1,373 |   |
|                                                           |   |   |   |   |   |   |   | $ | 4,213 |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |
| Acquired Prior to the Second Quarter of 2010                   |   |   |   |   |   |   |   |   |   |   |
| Seven undeveloped commercial lots                              |   | $ | 13,500 |   |   |   | 50 | % |   | $ | 8,245 |   |
| Luxury boutique hotel in Southwest Florida                     |   |   | 9,775 |   |   |   | 88 | % |   |   | 6,755 |   |
| Bayfront land in the Florida Keys                              |   |   | 5,622 |   |   |   | 54 | % |   |   | 5,592 |   |
| Vacant land in Southwest Florida                               |   |   | 5,826 |   |   |   | 60 | % |   |   | 4,412 |   |
| Five 1-4 family residential condominiums (new construction)    |   |   | 7,066 |  * |   |   | 72 | % |   |   | 3,841 |   |
| Luxury 1-4 family residential in Southwest Florida             |   |   | 2,493 |   |   |   | 67 | % |   |   | 1,610 |   |
| Four commercial 1-4 family residential loans Southwest Florida |   |   | 1,933 |   |   |   | 73-80 | % |   |   | 626 |   |
| Commercial real estate (3 loans)                               |   |   |   |   |   |   |   |   |   |   | 1,817 |   |
| Other land (4 Lots – 3 loans)                            |   |   |   |   |   |   |   |   |   |   | 931 |   |
| Other 1-4 family residential (2 loans)                         |   |   |   |   |   |   |   |   |   |   | 657 |   |
|                                                           |   |   |   |   |   |   |   |   |   | $ | 34,486 |   |
| Total OREO                                                     |   |   |   |   |   |   |   |   |   | $ | 38,699 |   |

----

----

----

| (Dollars in thousands)                   |   | 3 Monthsor Less |     |   | 4 to 6Months |   |     | 7 to 12Months |   |   | 1 to 5Years |   |   | Over 5Years |     |   | Total  |   |
|------------------------------------------|--------|-----------------|----------|--------|--------------|--------|----------|---------------|--------|--------|-------------|--------|--------|-------------|----------|--------|--------|--------|
| Interest-earning assets:                 |   |            |     |   |         |   |     |          |   |   |        |   |   |        |     |   |   |   |
| Loans                                    |   | $               | 354,647  |   |         | $      | 38,213   |          |   | $      | 128,981     |   |   | $           | 421,154  |   |   | $      | 157,605 |   |   | $ | 1,100,600 |   |
| Investment securities-taxable            |   |            | 36,057   |   |         |   | -        |          |   |   | -           |   |   |        | 1,355    |   |   |   | 241,955 |   |   |   | 279,367 |   |
| Investment securities-tax exempt         |   |            | -        |   |         |   | -        |          |   |   | 276         |   |   |        | 1,121    |   |   |   | 1,681 |   |   |   | 3,078 |   |
| Marketable equity securities             |   |            | 176      |   |         |   | -        |          |   |   | -           |   |   |        | -        |   |   |   | - |   |   |   | 176 |   |
| FHLB stock                               |   |            | 10,447   |   |         |   | -        |          |   |   | -           |   |   |        | -        |   |   |   | - |   |   |   | 10,447 |   |
| Interest-bearing deposits in other banks |   |            | 139,278  |   |         |   | -        |          |   |   | -           |   |   |        | -        |   |   |   | - |   |   |   | 139,278 |   |
| Total interest-earning assets            |   |            | 540,605  |   |         |   | 38,213   |          |   |   | 129,257     |   |   |        | 423,630  |   |   |   | 401,241 |   |   |   | 1,532,946 |   |
|                                     |   |            |     |   |         |   |     |          |   |   |        |   |   |        |     |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:            |   |            |     |   |         |   |     |          |   |   |        |   |   |        |     |   |   |   |   |   |   |   |   |   |
| NOW accounts                             |   |            | 194,663  |   |         |   | -        |          |   |   | -           |   |   |        | -        |   |   |   | - |   |   |   | 194,663 |   |
| Money market                             |   |            | 171,495  |   |         |   | -        |          |   |   | -           |   |   |        | -        |   |   |   | - |   |   |   | 171,495 |   |
| Savings deposits                         |   |            | 73,059   |   |         |   | -        |          |   |   | -           |   |   |        | -        |   |   |   | - |   |   |   | 73,059 |   |
| Time deposits                            |   |            | 107,438  |   |         |   | 118,028  |          |   |   | 353,222     |   |   |        | 145,624  |   |   |   | 43 |   |   |   | 724,355 |   |
| Subordinated debentures                  |   |            | 25,000   |   |         |   | -        |          |   |   | -           |   |   |        | -        |   |   |   | 8,000 |   |   |   | 33,000 |   |
| Other borrowings                         |   |            | 103,894  |   |         |   | -        |          |   |   | 10,000      |   |   |        | 115,000  |   |   |   | - |   |   |   | 228,894 |   |
| Total interest-bearing liabilities       |   |            | 675,549  |   |         |   | 118,028  |          |   |   | 363,222     |   |   |        | 260,624  |   |   |   | 8,043 |   |   |   | 1,425,466 |   |
|                                     |   |            |     |   |         |   |     |          |   |   |        |   |   |        |     |   |   |   |   |   |   |   |   |   |
| Interest sensitivity gap                 |   | $               | (134,944 | )      |         | $      | (79,815  | )             |   | $      | (233,965    | )      |   | $           | 163,006  |   |   | $      | 393,198 |   |   | $ | 107,480 |   |
|                                     |   |            |     |   |         |   |     |          |   |   |        |   |   |        |     |   |   |   |   |   |   |   |   |   |
| Cumulative interest sensitivity gap      |   | $               | (134,944 | )      |         | $      | (214,759 | )             |   | $      | (448,724    | )      |   | $           | (285,718 | )      |   | $      | 107,480 |   |   | $ | 107,480 |   |
|                                     |   |            |     |   |         |   |     |          |   |   |        |   |   |        |     |   |   |   |   |   |   |   |   |   |
| Cumulative sensitivity ratio             |   |            | (8.8     | %)     |         |   | (14.0    | %)            |   |   | (29.3       | %)     |   |        | (18.6    | %)     |   |   | 7.0 | % |   |   | 7.0 | % |
|                                     |   |            |     |   |         |   |     |          |   |   |        |   |   |        |     |   |   |   |   |   |   |   |   |   |

----

|                                                |   | June 30, 2010  |   |
|-----------------------------------------------------|--------|----------------|--------|
|                                                |   | Parallel Shift |   |   | Twist |   |
| Twelve Month Period                                 |   |           | +2     | % |   |   | +600%/300 | % |
|                                                |   |           |   |   |   |   |   |   |
| Percentage change in net interest  income |   |           | -0.5   | % |   |   | +4 | % |

----

----

| ·   | Certain retail deposits of the Bank shall not have decreased by more that 20% from the amount thereof as of March 31, 2010.  Such deposits were $702.2 million and $651.7 million as of March 31, 2010 and June 30, 2010, respectively; or a decline of approximately 7%. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Charge-offs shall not exceed $12,706,000 for any completed calendar quarter and shall not exceed an amount equal to $12,706,000 pro-rated by the number of days in the interim quarterly period for the interim quarterly period ending five calendar days prior to closing.  For the quarter ended June 30, 2010 net loan charge-offs were $7.8 million. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company shall enter into an agreement with the Treasury to redeem all shares of the Series A Preferred and all the Warrants issued to the Treasury on terms specified in the investment agreement.  The Company received a letter from the Treasury indicating that the Treasury would be willing to consent to the repurchase proposal made by the Company.  However, a written agreement has not yet been executed. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company must receive NASDAQ’s approval to issue the shares to be purchased under the agreement in reliance on the shareholder voting exemption provisions of the NASDAQ rules. The Company has requested and expects to receive the required approval from NASDAQ. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company must receive agreements as to payments of certain financing transaction fees. |
|--------------------|-------------------------------------------------------------------------------------------|

| ·   | NAFH must receive the requisite approvals and consents for the investment from governmental agencies. NAFH has filed applications seeking these approvals and consents. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 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 |
|   |         |   |                                                                                                   |

|                                         |   | TIB FINANCIAL CORP.                                                                                              |
|----------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------|
|   Date:  August 12, 2010 |   |     /s/ Thomas J. Longe                                                                      |
|                                         |   | Thomas J. LongeVice-Chairman, Chief Executive Officer and President                                              |
|                                         |   |                                                                                                             |
|   Date:  August 12, 2010 |   |     /s/ Stephen J. Gilhooly                                                                  |
|                                         |   | Stephen J. GilhoolyExecutive Vice President, Chief Financial Officer and Treasurer(Principal Accounting Officer) |