##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

|                               |  |                       
|------------------------------ |  | ----------------------
|For the Quarterly Period Ended |  | Commission File Number
|JUNE 30, 2003                  |  | 000-21329             

TIB FINANCIAL CORP.




(Exact name of registrant as specified in its charter)


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

99451 OVERSEAS HIGHWAY, KEY LARGO, FLORIDA 33037-7808




(Address of principal executive offices) (Zip Code)


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

Not Applicable




(Former name, former address and former fiscal year,
if changed since last report)


Check whether the issuer (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 issuer was required to file such
reports), and (2) has been subject to such filing requirements for the past
90 days. Yes [X] or No  [  ]

Indicate by check mark whether the issuer is an accelerated filer (as defined
in Rule 12b-2 of the Act). Yes [  ] or No  [X]

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

|                              |  |  |                                  | 
|----------------------------- |  |  | -------------------------------- | 
|Common Stock, $0.10 Par Value |  |  | 4,408,078                        | 
|                              |  |  |                                  | 
|Class                         |  |  | Outstanding as of August 1, 2003 | 





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TABLE OF CONTENTS



|                                                     |                                                                                               |  |  |  |  |  |  | 
|---------------------------------------------------- | --------------------------------------------------------------------------------------------- |  |  |  |  |  |  | 
|Part I. FINANCIAL INFORMATION                       
|                                                     | Item 1. Financial Statements                                                                 
|CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|                                                     | Item 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|                                                     | Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK                            
|                                                     | Item 4. CONTROLS AND PROCEDURES                                                              
|Part II. OTHER INFORMATION                          
|                                                     | Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS                                  
|                                                     | Item 6. EXHIBITS AND REPORTS ON FORM 8-K                                                     
|SIGNATURES                                          
|EX-31.1 Section 302 CEO Certification               
|EX-31.2 Section 302 CFO Certification               
|Ex-32.1 Section 906 CEO Certification               
|Ex-32.2 Section 906 CFO Certification               
|Ex-99.1 Independent Auditors' Report                



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##### Table of Contents






Part I. FINANCIAL INFORMATION




Item 1. Financial Statements

TIB FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS

|                                                                                                  |                                            |                            |             |               |             |                   |             |             |             | 
|------------------------------------------------------------------------------------------------- | ------------------------------------------ | -------------------------- | ----------- | ------------- | ----------- | ----------------- | ----------- | ----------- | ----------- | 
|                                                                                                  |                                            |                            |             | June 30, 2003 |             | December 31, 2002
|                                                                                                  |                                            |                            |             |               |             |                  
|                                                                                                  |                                            |                            |             | (Unaudited)   |             |                   |             |            
|ASSETS                                                                                            |                                            |                            |             |               |             |                   |             |            
|Cash and due from banks                                                                           |                                            | $                          | 20,579,417  |               |             | $                 | 18,397,659  |            
|Federal funds sold                                                                                |                                            |                            | 45,884,000  |               |             |                   | 5,672,000   |            
|Investment securities available for sale                                                          |                                            |                            | 47,395,911  |               |             |                   | 54,267,830  |            
|Loans, net of deferred loan costs and fees                                                        |                                            |                            | 474,404,421 |               |             |                   | 442,527,934 |            
|Less: allowance for loan losses                                                                   |                                            |                            | 4,554,539   |               |             |                   | 4,272,499   |            
|                                                                                                  |                                            |                            |             |               |             |                   |             |            
|                                                                                                  | Loans, net                                 |                            |             | 469,849,882   |             |                   |             | 438,255,435 |            
|Premises and equipment, net                                                                       |                                            |                            | 21,031,358  |               |             |                   | 19,457,150  |            
|Goodwill                                                                                          |                                            |                            | 2,165,443   |               |             |                   | 2,234,024   |            
|Intangible assets, net                                                                            |                                            |                            | 1,832,982   |               |             |                   | 1,978,918   |            
|Accrued interest receivable and other assets                                                      |                                            |                            | 24,463,898  |               |             |                   | 26,885,630  |            
|                                                                                                  |                                            |                            |             |               |             |                   |             |            
|                                                                                                  | TOTAL ASSETS                               |                            | $           | 633,202,891   |             |                   | $           | 567,148,646 |            
|                                                                                                  |                                            |                            |             |               |             |                   |             |            
|LIABILITIES                                                                                       |                                            |                            |             |               |             |                   |             |            
|Deposits:                                                                                         |                                            |                            |             |               |             |                   |             |            
|                                                                                                  | Noninterest-bearing demand                 |                            | $           | 120,233,181   |             |                   | $           | 105,199,483 |            
|                                                                                                  | Interest-bearing demand and money market   |                            |             | 186,857,609   |             |                   |             | 186,426,703 |            
|                                                                                                  | Savings                                    |                            |             | 35,536,704    |             |                   |             | 31,440,801  |            
|                                                                                                  | Time deposits of $100,000 or more          |                            |             | 100,483,994   |             |                   |             | 73,509,232  |            
|                                                                                                  | Other time deposits                        |                            |             | 109,738,103   |             |                   |             | 86,107,232  |            
|                                                                                                  |                                            |                            |             |               |             |                   |             |            
|                                                                                                  |                                            | Total Deposits             |             |               | 552,849,591 |                   |             |             | 482,683,451 | 
|Federal Home Loan Bank advances                                                                   |                                            |                            | 10,000,000  |               |             |                   | 20,000,000  |            
|Short-term borrowings                                                                             |                                            |                            | 5,254,988   |               |             |                   | 4,578,959   |            
|Notes payable                                                                                     |                                            |                            | 5,250,000   |               |             |                   | 5,250,000   |            
|Trust preferred securities                                                                        |                                            |                            | 13,000,000  |               |             |                   | 13,000,000  |            
|Accrued interest payable and other liabilities                                                    |                                            |                            | 6,494,533   |               |             |                   | 8,130,159   |            
|                                                                                                  |                                            |                            |             |               |             |                   |             |            
|                                                                                                  | TOTAL LIABILITIES                          |                            |             | 592,849,112   |             |                   |             | 533,642,569 |            
|                                                                                                  |                                            |                            |             |               |             |                   |             |            
|STOCKHOLDERS EQUITY                                                                              |                                            |                            |             |               |             |                   |             |            
|Common stock - $.10 par value: 7,500,000 shares
authorized, 4,407,578 and 4,035,625 shares
issued |                                            |                            | 440,758     |               |             |                   | 403,563     |            
|Additional paid in capital                                                                        |                                            |                            | 13,843,020  |               |             |                   | 8,965,816   |            
|Retained earnings                                                                                 |                                            |                            | 24,559,001  |               |             |                   | 23,021,698  |            
|Accumulated other comprehensive income                                                            |                                            |                            | 1,511,000   |               |             |                   | 1,115,000   |            
|                                                                                                  |                                            |                            |             |               |             |                   |             |            
|                                                                                                  |                                            | TOTAL STOCKHOLDERS EQUITY |             |               | 40,353,779  |                   |             |             | 33,506,077  | 
|                                                                                                  |                                            |                            |             |               |             |                   |             |            
|                                                                                                  | TOTAL LIABILITIES AND STOCKHOLDERS
EQUITY |                            | $           | 633,202,891   |             |                   | $           | 567,148,646 |            
|                                                                                                  |                                            |                            |             |               |             |                   |             |            

(See notes to consolidated financial statements)

1





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TIB FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

|                                                          |  |                                                     |                                               |  |                    |         |                  |  |           |         |            |  |            |         |            |  |            |           | 
|--------------------------------------------------------- |  | --------------------------------------------------- | --------------------------------------------- |  | ------------------ | ------- | ---------------- |  | --------- | ------- | ---------- |  | ---------- | ------- | ---------- |  | ---------- | --------- | 
|                                                          |  |                                                     |                                               |  | Three months ended |         | Six months ended
|                                                          |  |                                                     |                                               |  | June 30,           |         | June 30,        
|                                                          |  |                                                     |                                               |  |                    |         |                 
|                                                          |  |                                                     |                                               |  | 2003               |         | 2002             |  | 2003      |         | 2002      
|                                                          |  |                                                     |                                               |  |                    |         |                  |  |           |         |           
|INTEREST INCOME                                           |  |                                                     |                                               |  |                    |         |                  |  |           |         |            |  |            |         |            | 
|Loans, including fees                                     |  | $                                                   | 7,697,976                                     |  |                    | $       | 6,781,175        |  |           | $       | 15,276,251 |  |            | $       | 13,419,144 | 
|Investment securities:                                    |  |                                                     |                                               |  |                    |         |                  |  |           |         |            |  |            |         |            | 
|                                                          |  |                                                     | U.S. Treasury securities                      |  |                    | 1,910   |                  |  |           | 41,176  |            |  |            | 3,799   |            |  |            | 81,959    | 
|                                                          |  |                                                     | U.S. Government agencies and
corporations     |  |                    | 442,108 |                  |  |           | 626,966 |            |  |            | 969,068 |            |  |            | 1,216,775 | 
|                                                          |  |                                                     | States and political subdivisions,
tax-exempt |  |                    | 82,898  |                  |  |           | 66,084  |            |  |            | 144,224 |            |  |            | 132,952   | 
|                                                          |  |                                                     | States and political subdivisions,
taxable    |  |                    | 61,819  |                  |  |           | 98,396  |            |  |            | 124,796 |            |  |            | 176,261   | 
|                                                          |  |                                                     | Other investments                             |  |                    |        |                  |  |           |        |            |  |            |        |            |  |            | 46,447    | 
|Interest bearing deposits in other bank                   |  |                                                     | 370                                           |  |                    |         | 1,354            |  |           |         | 946        |  |            |         | 3,068      | 
|Federal Home Loan Bank Stock                              |  |                                                     | 13,801                                        |  |                    |         | 19,909           |  |           |         | 30,083     |  |            |         | 40,901     | 
|Federal funds sold                                        |  |                                                     | 151,514                                       |  |                    |         | 92,142           |  |           |         | 193,312    |  |            |         | 151,058    | 
|                                                          |  |                                                     |                                               |  |                    |         |                  |  |           |         |            |  |            |         |            | 
|                                                          |  | TOTAL INTEREST INCOME                               |                                               |  | 8,452,396          |         |                  |  | 7,727,202 |         |            |  | 16,742,479 |         |            |  | 15,268,565 |          
|                                                          |  |                                                     |                                               |  |                    |         |                  |  |           |         |            |  |            |         |            | 
|INTEREST EXPENSE                                          |  |                                                     |                                               |  |                    |         |                  |  |           |         |            |  |            |         |            | 
|Interest-bearing demand and money market                  |  |                                                     | 382,560                                       |  |                    |         | 487,045          |  |           |         | 786,038    |  |            |         | 970,904    | 
|Savings                                                   |  |                                                     | 50,556                                        |  |                    |         | 58,312           |  |           |         | 97,881     |  |            |         | 111,099    | 
|Time deposits of $100,000 or more                         |  |                                                     | 822,982                                       |  |                    |         | 656,414          |  |           |         | 1,558,580  |  |            |         | 1,340,479  | 
|Other time deposits                                       |  |                                                     | 868,270                                       |  |                    |         | 815,376          |  |           |         | 1,661,429  |  |            |         | 1,666,356  | 
|Long term debt  trust preferred securities               |  |                                                     | 277,553                                       |  |                    |         | 285,049          |  |           |         | 556,529    |  |            |         | 570,566    | 
|Federal Home Loan Bank advances                           |  |                                                     | 33,061                                        |  |                    |         | 99,697           |  |           |         | 102,008    |  |            |         | 198,468    | 
|Notes payable                                             |  |                                                     | 119,931                                       |  |                    |         | 119,931          |  |           |         | 238,549    |  |            |         | 238,549    | 
|Short-term borrowings                                     |  |                                                     | 9,973                                         |  |                    |         | 7,647            |  |           |         | 20,735     |  |            |         | 12,526     | 
|                                                          |  |                                                     |                                               |  |                    |         |                  |  |           |         |            |  |            |         |            | 
|                                                          |  | TOTAL INTEREST EXPENSE                              |                                               |  | 2,564,886          |         |                  |  | 2,529,471 |         |            |  | 5,021,749  |         |            |  | 5,108,947  |          
|                                                          |  |                                                     |                                               |  |                    |         |                  |  |           |         |            |  |            |         |            | 
|                                                          |  | NET INTEREST INCOME                                 |                                               |  | 5,887,510          |         |                  |  | 5,197,731 |         |            |  | 11,720,730 |         |            |  | 10,159,618 |          
|PROVISION FOR LOAN LOSSES                                 |  |                                                     | 258,000                                       |  |                    |         | 129,000          |  |           |         | 588,000    |  |            |         | 266,000    | 
|                                                          |  |                                                     |                                               |  |                    |         |                  |  |           |         |            |  |            |         |            | 
|                                                          |  | NET INTEREST INCOME AFTER PROVISION FOR
LOAN LOSSES |                                               |  | 5,629,510          |         |                  |  | 5,068,731 |         |            |  | 11,132,730 |         |            |  | 9,893,618  |          
|OTHER INCOME                                              |  |                                                     |                                               |  |                    |         |                  |  |           |         |            |  |            |         |            | 
|Service charges on deposit accounts                       |  |                                                     | 585,574                                       |  |                    |         | 544,897          |  |           |         | 1,158,189  |  |            |         | 1,077,582  | 
|Investment securities gains, net                          |  |                                                     |                                              |  |                    |         | 63,843           |  |           |         | 5,337      |  |            |         | 138,127    | 
|Merchant bank card processing income                      |  |                                                     | 1,220,825                                     |  |                    |         | 1,126,508        |  |           |         | 2,598,898  |  |            |         | 2,459,844  | 
|Gain on sale of government guaranteed loans               |  |                                                     |                                              |  |                    |         | 23,179           |  |           |         | 87,470     |  |            |         | 23,179     | 
|Fees on mortgage loans sold                               |  |                                                     | 608,888                                       |  |                    |         | 313,767          |  |           |         | 1,210,640  |  |            |         | 673,378    | 
|Commissions on sales by Keys Insurance
Agency, Inc.       |  |                                                     | 541,398                                       |  |                    |         | 534,820          |  |           |         | 977,818    |  |            |         | 934,713    | 
|Retail investment services                                |  |                                                     | 99,293                                        |  |                    |         | 41,766           |  |           |         | 186,251    |  |            |         | 131,419    | 
|Gain on sale of investment in ERAS Joint
Venture (Note 2) |  |                                                     | 202,393                                       |  |                    |         |                 |  |           |         | 202,393    |  |            |         |           | 
|Other income                                              |  |                                                     | 371,215                                       |  |                    |         | 340,756          |  |           |         | 717,011    |  |            |         | 692,670    | 
|                                                          |  |                                                     |                                               |  |                    |         |                  |  |           |         |            |  |            |         |            | 
|                                                          |  | TOTAL OTHER INCOME                                  |                                               |  | 3,629,586          |         |                  |  | 2,989,536 |         |            |  | 7,144,007  |         |            |  | 6,130,912  |          
|OTHER EXPENSE                                             |  |                                                     |                                               |  |                    |         |                  |  |           |         |            |  |            |         |            | 
|Salaries and employee benefits                            |  |                                                     | 3,379,959                                     |  |                    |         | 2,874,436        |  |           |         | 6,833,580  |  |            |         | 5,618,765  | 
|Net occupancy expense                                     |  |                                                     | 1,141,742                                     |  |                    |         | 961,852          |  |           |         | 2,223,764  |  |            |         | 1,925,135  | 

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|                            |  |                                  |           |   |                    |   |                  |   |           |   |           |   |            |   |           |   |            |  | 
|--------------------------- |  | -------------------------------- | --------- | - | ------------------ | - | ---------------- | - | --------- | - | --------- | - | ---------- | - | --------- | - | ---------- |  | 
|                            |  |                                  |           |   | Three months ended |   | Six months ended
|                            |  |                                  |           |   | June 30,           |   | June 30,        
|                            |  |                                  |           |   |                    |   |                 
|                            |  |                                  |           |   | 2003               |   | 2002             |   | 2003      |   | 2002     
|                            |  |                                  |           |   |                    |   |                  |   |           |   |          
|Other expense               |  |                                  | 2,768,041 |   |                    |   | 2,534,013        |   |           |   | 5,407,470 |   |            |   | 4,955,346 |  
|                            |  |                                  |           |   |                    |   |                  |   |           |   |           |   |            |   |           |  
|                            |  | TOTAL OTHER EXPENSE              |           |   | 7,289,742          |   |                  |   | 6,370,301 |   |           |   | 14,464,814 |   |           |   | 12,499,246 | 
|                            |  |                                  |           |   |                    |   |                  |   |           |   |           |   |            |  
|                            |  | INCOME BEFORE INCOME TAX EXPENSE |           |   | 1,969,354          |   |                  |   | 1,687,966 |   |           |   | 3,811,923  |   |           |   | 3,525,284  | 
|INCOME TAX EXPENSE          |  |                                  | 683,900   |   |                    |   | 586,400          |   |           |   | 1,337,200 |   |            |   | 1,232,800 |  
|                            |  |                                  |           |   |                    |   |                  |   |           |   |           |   |            |   |           |  
|                            |  | NET INCOME                       |           | $ | 1,285,454          |   |                  | $ | 1,101,566 |   |           | $ | 2,474,723  |   |           | $ | 2,292,484  | 
|                            |  |                                  |           |   |                    |   |                  |   |           |   |           |   |            |   |           |  
|BASIC EARNINGS PER SHARE:   |  | $                                | 0.31      |   |                    | $ | 0.28             |   |           | $ | 0.60      |   |            | $ | 0.58      |  
|DILUTED EARNINGS PER SHARE: |  | $                                | 0.30      |   |                    | $ | 0.27             |   |           | $ | 0.58      |   |            | $ | 0.56      |  

(See notes to consolidated financial statements)

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TIB FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY
(Unaudited)

|                                           |                                                             |                                                                    |            |           |         |        |   |               |         |               |            |               |  |            |           |                 |  |   |         |  |  |   |            |  |  | 
|------------------------------------------ | ----------------------------------------------------------- | ------------------------------------------------------------------ | ---------- | --------- | ------- | ------ | - | ------------- | ------- | ------------- | ---------- | ------------- |  | ---------- | --------- | --------------- |  | - | ------- |  |  | - | ---------- |  |  | 
|                                           |                                                             |                                                                    |            |           |         |        |   |               |         |               |            |               |  |            |           | Accumulated     |  |   |         |  |  |   |            | 
|                                           |                                                             |                                                                    |            |           |         |        |   |               |         |               |            |               |  |            |           | Other           |  |   |         |  |  |   |            | 
|                                           |                                                             |                                                                    |            |           |         |        |   | Comprehensive |         | Retained      |            | Comprehensive |  | Common     |           | Additional Paid
|                                           |                                                             |                                                                    |            | Total     |         | Income |   | Earnings      |         | Income (Loss) |            | Stock         |  | in Capital
|                                           |                                                             |                                                                    |            |           |         |        |   |               |         |               |            |               |  |           
|Balance at March 31, 2003                  |                                                             | $                                                                  | 34,755,804 |           |         |        |   |               |         | $             | 23,758,380 |               |  | $          | 1,172,000 |                 |  | $ | 411,443 |  |  | $ | 9,413,981  | 
|Comprehensive Income                       |                                                             |                                                                    |            |           |         |        |   |               |         |               |            |               |  |            |           |                 |  |   |         |  |  |   |            | 
|                                           | Net Income                                                  |                                                                    |            | 1,285,454 |         |        | $ | 1,285,454     |         |               |            | 1,285,454     |  |            |           |                 |  |   |         |  |  |   |            |  | 
|                                           | Other comprehensive income, net of tax
expense of $204,000: |                                                                    |            |           |         |        |   |               |         |               |            |               |  |            |           |                 |  |   |         |  |  |   |            |  | 
|                                           |                                                             | Net market valuation adjustment on
securities available for sale   |            |           | 339,000 |        |   |               | 339,000 |               |            |               |  |            |           |                 |  |   |         |  |  |   |            |  |  | 
|                                           |                                                             | Less: reclassification adjustment
for gains included in net income |            |           |         |        |   |               |        |               |            |               |  |            |           |                 |  |   |         |  |  |   |            |  |  | 
|                                           |                                                             |                                                                    |            |           |         |        |   |               |         |               |            |               |  |            |           |                 |  |   |         |  |  |   |            | 
|                                           | Other comprehensive income, net of tax                      |                                                                    |            |           |         |        |   | 339,000       |         |               |            |               |  |            |           | 339,000         |  |   |         |  |  |   |            |  | 
|                                           |                                                             |                                                                    |            |           |         |        |   |               |         |               |            |               |  |            |           |                 |  |   |         |  |  |   |            | 
|                                           | Comprehensive income                                        |                                                                    |            |           |         |        | $ | 1,624,454     |         |               |            |               |  |            |           |                 |  |   |         |  |  |   |            |  | 
|                                           |                                                             |                                                                    |            |           |         |        |   |               |         |               |            |               |  |            |           |                 |  |   |         |  |  |   |            | 
|Exercise of stock options                  |                                                             |                                                                    | 114,291    |           |         |        |   |               |         |               |            |               |  |            |           |                 |  |   | 1,250   |  |  |   | 113,041    | 
|Private Placement of 280,653 common shares |                                                             |                                                                    | 4,344,063  |           |         |        |   |               |         |               |            |               |  |            |           |                 |  |   | 28,065  |  |  |   | 4,315,998  | 
|Cash dividends declared, $.11 per share    |                                                             |                                                                    | (484,833   | )         |         |        |   |               |         |               | (484,833   | )             |  |            |           |                 |  |   |         |  |  |   |            | 
|                                           |                                                             |                                                                    |            |           |         |        |   |               |         |               |            |               |  |            |           |                 |  |   |         |  |  |   |            | 
|Balance at June 30, 2003                   |                                                             | $                                                                  | 40,353,779 |           |         |        |   |               |         | $             | 24,559,001 |               |  | $          | 1,511,000 |                 |  | $ | 440,758 |  |  | $ | 13,843,020 | 
|                                           |                                                             |                                                                    |            |           |         |        |   |               |         |               |            |               |  |            |           |                 |  |   |         |  |  |   |            | 

|                                                |                                                             |                                                                                                                           |                                                                    |           |         |         |        |           |               |         |               |           |               |   |            |         |                 |   |         |  |  |   |           |  |  |  | 
|----------------------------------------------- | ----------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------ | --------- | ------- | ------- | ------ | --------- | ------------- | ------- | ------------- | --------- | ------------- | - | ---------- | ------- | --------------- | - | ------- |  |  | - | --------- |  |  |  | 
|                                                |                                                             |                                                                                                                           |                                                                    |           |         |         |        |           |               |         |               |           |               |   |            |         | Accumulated     |   |         |  |  |   |           |  | 
|                                                |                                                             |                                                                                                                           |                                                                    |           |         |         |        |           |               |         |               |           |               |   |            |         | Other           |   |         |  |  |   |           |  | 
|                                                |                                                             |                                                                                                                           |                                                                    |           |         |         |        |           | Comprehensive |         | Retained      |           | Comprehensive |   | Common     |         | Additional Paid
|                                                |                                                             |                                                                                                                           |                                                                    |           | Total   |         | Income |           | Earnings      |         | Income (Loss) |           | Stock         |   | in Capital
|                                                |                                                             |                                                                                                                           |                                                                    |           |         |         |        |           |               |         |               |           |               |   |           
|Balance at March 31, 2002                       |                                                             | $                                                                                                                         | 29,473,878                                                         |           |         |         |        |           |               | $       | 20,782,547    |           |               | $ | (137,000   | )       |                 | $ | 397,690 |  |  | $ | 8,430,641 | 
|Comprehensive Income                            |                                                             |                                                                                                                           |                                                                    |           |         |         |        |           |               |         |               |           |               |   |            |         |                 |   |         |  |  |   |           | 
|                                                | Net Income                                                  |                                                                                                                           |                                                                    | 1,101,566 |         |         | $      | 1,101,566 |               |         |               | 1,101,566 |               |   |            |         |                 |   |         |  |  |   |           |  | 
|                                                | Other comprehensive income, net of tax
benefit of $240,200: |                                                                                                                           |                                                                    |           |         |         |        |           |               |         |               |           |               |   |            |         |                 |   |         |  |  |   |           |  | 
|                                                |                                                             | Unrealized holding gain on securities
transferred into the available for
sale category from the held to
maturity category |                                                                    |           | 270,480 |         |        |           | 270,480       |         |               |           |               |   |            |         |                 |   |         |  |  |   |           |  |  | 
|                                                |                                                             | Net market valuation adjustment on
securities available for sale                                                          |                                                                    |           | 516,358 |         |        |           | 516,358       |         |               |           |               |   |            |         |                 |   |         |  |  |   |           |  |  | 
|                                                |                                                             |                                                                                                                           | Less: reclassification adjustment
for gains included in net income |           |         | (39,838 | )      |           |               | (39,838 | )             |           |               |   |            |         |                 |   |         |  |  |   |           |  |  |  | 
|                                                |                                                             |                                                                                                                           |                                                                    |           |         |         |        |           |               |         |               |           |               |   |            |         |                 |   |         |  |  |   |           | 
|                                                | Other comprehensive income, net of tax                      |                                                                                                                           |                                                                    |           |         |         |        | 747,000   |               |         |               |           |               |   |            | 747,000 |                 |   |         |  |  |   |           |  | 
|                                                |                                                             |                                                                                                                           |                                                                    |           |         |         |        |           |               |         |               |           |               |   |            |         |                 |   |         |  |  |   |           | 
|                                                | Comprehensive income                                        |                                                                                                                           |                                                                    |           |         |         | $      | 1,848,566 |               |         |               |           |               |   |            |         |                 |   |         |  |  |   |           |  | 
|                                                |                                                             |                                                                                                                           |                                                                    |           |         |         |        |           |               |         |               |           |               |   |            |         |                 |   |         |  |  |   |           | 
|Exercise of stock options                       |                                                             |                                                                                                                           | 131,244                                                            |           |         |         |        |           |               |         |               |           |               |   |            |         |                 |   | 1,690   |  |  |   | 129,554   | 
|Income tax benefit from stock options exercised |                                                             |                                                                                                                           | 3,025                                                              |           |         |         |        |           |               |         |               |           |               |   |            |         |                 |   |         |  |  |   | 3,025     | 
|Cash dividends declared, $.1075 per share       |                                                             |                                                                                                                           | (429,335                                                           | )         |         |         |        |           |               |         | (429,335      | )         |               |   |            |         |                 |   |         |  |  |   |           | 
|                                                |                                                             |                                                                                                                           |                                                                    |           |         |         |        |           |               |         |               |           |               |   |            |         |                 |   |         |  |  |   |           | 
|Balance at June 30, 2002                        |                                                             | $                                                                                                                         | 31,027,378                                                         |           |         |         |        |           |               | $       | 21,454,778    |           |               | $ | 610,000    |         |                 | $ | 399,380 |  |  | $ | 8,563,220 | 
|                                                |                                                             |                                                                                                                           |                                                                    |           |         |         |        |           |               |         |               |           |               |   |            |         |                 |   |         |  |  |   |           | 

(See notes to consolidated financial statements)





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##### Table of Contents



TIB FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY
(Unaudited)

|                                           |                                                             |                                                                    |            |       |         |        |           |               |         |               |            |               |  |         |           |             |  |   |         |  |  |            |            |  |  | 
|------------------------------------------ | ----------------------------------------------------------- | ------------------------------------------------------------------ | ---------- | ----- | ------- | ------ | --------- | ------------- | ------- | ------------- | ---------- | ------------- |  | ------- | --------- | ----------- |  | - | ------- |  |  | ---------- | ---------- |  |  | 
|                                           |                                                             |                                                                    |            |       |         |        |           |               |         |               |            |               |  |         |           | Accumulated |  |   |         |  |  |            |            | 
|                                           |                                                             |                                                                    |            |       |         |        |           |               |         |               |            |               |  |         |           | Other       |  |   |         |  |  | Additional
|                                           |                                                             |                                                                    |            |       |         |        |           | Comprehensive |         | Retained      |            | Comprehensive |  | Common  |           | Paid in    
|                                           |                                                             |                                                                    |            | Total |         | Income |           | Earnings      |         | Income (Loss) |            | Stock         |  | Capital
|                                           |                                                             |                                                                    |            |       |         |        |           |               |         |               |            |               |  |        
|Balance at December 31, 2002               |                                                             | $                                                                  | 33,506,077 |       |         |        |           |               |         | $             | 23,021,698 |               |  | $       | 1,115,000 |             |  | $ | 403,563 |  |  | $          | 8,965,816  | 
|Comprehensive Income                      
|                                           | Net Income                                                  |                                                                    | 2,474,723  |       |         | $      | 2,474,723 |               |         |               | 2,474,723  |               |  |         |           |             |  |   |         |  |  |            |            | 
|                                           | Other comprehensive income, net of tax
expense of $239,000: |                                                                    |            |       |         |        |           |               |         |               |            |               |  |         |           |             |  |   |         |  |  |            |            |  | 
|                                           |                                                             | Net market valuation adjustment on
securities available for sale   |            |       | 399,331 |        |           |               | 399,331 |               |            |               |  |         |           |             |  |   |         |  |  |            |            |  |  | 
|                                           |                                                             | Less: reclassification adjustment
for gains included in net income |            |       | (3,331  | )      |           |               | (3,331  | )             |            |               |  |         |           |             |  |   |         |  |  |            |            |  |  | 
|                                           |                                                             |                                                                    |            |       |         |        |           |               |         |               |            |               |  |         |           |             |  |   |         |  |  |            |            | 
|                                           | Other comprehensive income, net of tax                      |                                                                    |            |       |         |        |           | 396,000       |         |               |            |               |  |         |           | 396,000     |  |   |         |  |  |            |            |  |  | 
|                                           |                                                             |                                                                    |            |       |         |        |           |               |         |               |            |               |  |         |           |             |  |   |         |  |  |            |            | 
|                                           | Comprehensive income                                        |                                                                    |            |       |         |        | $         | 2,870,723     |         |               |            |               |  |         |           |             |  |   |         |  |  |            |            |  | 
|                                           |                                                             |                                                                    |            |       |         |        |           |               |         |               |            |               |  |         |           |             |  |   |         |  |  |            |            | 
|Exercise of stock options                  |                                                             |                                                                    | 570,336    |       |         |        |           |               |         |               |            |               |  |         |           |             |  |   | 9,130   |  |  |            | 561,206    | 
|Private Placement of 280,653 common shares |                                                             |                                                                    | 4,344,063  |       |         |        |           |               |         |               |            |               |  |         |           |             |  |   | 28,065  |  |  |            | 4,315,998  | 
|Cash dividends declared, $.22 per share    |                                                             |                                                                    | (937,420   | )     |         |        |           |               |         |               | (937,420   | )             |  |         |           |             |  |   |         |  |  |            |            | 
|                                           |                                                             |                                                                    |            |       |         |        |           |               |         |               |            |               |  |         |           |             |  |   |         |  |  |            |            | 
|Balance at June 30, 2003                   |                                                             | $                                                                  | 40,353,779 |       |         |        |           |               |         | $             | 24,559,001 |               |  | $       | 1,511,000 |             |  | $ | 440,758 |  |  | $          | 13,843,020 | 
|                                           |                                                             |                                                                    |            |       |         |        |           |               |         |               |            |               |  |         |           |             |  |   |         |  |  |            |            | 

|                                                |                                                             |                                                                                                                           |            |   |         |   |           |           |               |   |               |   |               |   |         |         |             |   |         |  |  |   |            |  |  |  | 
|----------------------------------------------- | ----------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------- | ---------- | - | ------- | - | --------- | --------- | ------------- | - | ------------- | - | ------------- | - | ------- | ------- | ----------- | - | ------- |  |  | - | ---------- |  |  |  | 
|                                                |                                                             |                                                                                                                           |            |   |         |   |           |           |               |   |               |   |               |   |         |         | Accumulated |   |         |  |  |   |            |  | 
|                                                |                                                             |                                                                                                                           |            |   |         |   |           |           |               |   |               |   |               |   |         |         | Other       |   |         |  |  |   | Additional
|                                                |                                                             |                                                                                                                           |            |   |         |   |           |           | Comprehensive |   | Retained      |   | Comprehensive |   | Common  |         | Paid in    
|                                                |                                                             |                                                                                                                           |            |   | Total   |   | Income    |           | Earnings      |   | Income (Loss) |   | Stock         |   | Capital
|                                                |                                                             |                                                                                                                           |            |   |         |   |           |           |               |   |               |   |               |   |        
|Balance at December 31, 2001                    |                                                             | $                                                                                                                         | 28,672,092 |   |         |   |           |           |               | $ | 20,019,145    |   |               | $ | 36,400  |         |             | $ | 394,610 |  |  | $ | 8,221,937  | 
|Comprehensive
Income                           
|                                                | Net Income                                                  |                                                                                                                           | 2,292,484  |   |         | $ | 2,292,484 |           |               |   | 2,292,484     |   |               |   |         |         |             |   |         |  |  |   |            | 
|                                                | Other comprehensive income, net of tax
benefit of $345,100: |                                                                                                                           |            |   |         |   |           |           |               |   |               |   |               |   |         |         |             |   |         |  |  |   |            |  | 
|                                                |                                                             | Unrealized holding gain on securities
transferred into the available for
sale category from the held to
maturity category |            |   | 270,480 |   |           |           | 270,480       |   |               |   |               |   |         |         |             |   |         |  |  |   |            |  |  | 
|                                                |                                                             | Net market valuation adjustment on
securities available for sale                                                          |            |   | 389,311 |   |           |           | 389,311       |   |               |   |               |   |         |         |             |   |         |  |  |   |            |  |  | 
|                                                |                                                             | Less: reclassification adjustment
for gains included in net income                                                        |            |   | (86,191 | ) |           |           | (86,191       | ) |               |   |               |   |         |         |             |   |         |  |  |   |            |  |  | 
|                                                |                                                             |                                                                                                                           |            |   |         |   |           |           |               |   |               |   |               |   |         |         |             |   |         |  |  |   |            | 
|                                                | Other comprehensive income, net of tax                      |                                                                                                                           |            |   |         |   |           | 573,600   |               |   |               |   |               |   |         | 573,600 |             |   |         |  |  |   |            |  | 
|                                                |                                                             |                                                                                                                           |            |   |         |   |           |           |               |   |               |   |               |   |         |         |             |   |         |  |  |   |            | 
|                                                | Comprehensive income                                        |                                                                                                                           |            |   |         |   | $         | 2,866,084 |               |   |               |   |               |   |         |         |             |   |         |  |  |   |            |  | 
|                                                |                                                             |                                                                                                                           |            |   |         |   |           |           |               |   |               |   |               |   |         |         |             |   |         |  |  |   |            | 
|Exercise of stock options                       |                                                             |                                                                                                                           | 343,028    |   |         |   |           |           |               |   |               |   |               |   |         |         |             |   | 4,770   |  |  |   | 338,258    | 
|Income tax benefit from stock options exercised |                                                             |                                                                                                                           | 3,025      |   |         |   |           |           |               |   |               |   |               |   |         |         |             |   |         |  |  |   | 3,025      | 
|Cash dividends declared, $.215 per share        |                                                             |                                                                                                                           | (856,851   | ) |         |   |           |           |               |   | (856,851      | ) |               |   |         |         |             |   |         |  |  |   |            | 
|                                                |                                                             |                                                                                                                           |            |   |         |   |           |           |               |   |               |   |               |   |         |         |             |   |         |  |  |   |            | 
|Balance at June 30, 2002                        |                                                             | $                                                                                                                         | 31,027,378 |   |         |   |           |           |               | $ | 21,454,778    |   |               | $ | 610,000 |         |             | $ | 399,380 |  |  | $ | 8,563,220  | 
|                                                |                                                             |                                                                                                                           |            |   |         |   |           |           |               |   |               |   |               |   |         |         |             |   |         |  |  |   |            | 

(See notes to consolidated financial statements)

4



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##### Table of Contents



TIB FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(Unaudited)

|                                                                                           |                                                            |   |                                |             |      |   |             |             |   |  |  |  | 
|------------------------------------------------------------------------------------------ | ---------------------------------------------------------- | - | ------------------------------ | ----------- | ---- | - | ----------- | ----------- | - |  |  |  | 
|                                                                                           |                                                            |   | For the six month period ended
|                                                                                           |                                                            |   | June 30,                      
|                                                                                           |                                                            |   |                               
|                                                                                           |                                                            |   | 2003                           |             | 2002 |   |             |             |  
|                                                                                           |                                                            |   |                                |             |      |   |             |             |  
|CASH FLOWS FROM OPERATING ACTIVITIES                                                       |                                                            |   |                                |             |      |   |             |            
|Net Income                                                                                 |                                                            | $ | 2,474,723                      |             |      | $ | 2,292,484   |            
|Adjustments to reconcile net income to net cash provided by operating activities:          |                                                            |   |                                |             |      |   |             |            
|                                                                                           | Net amortization of investments                            |   |                                | 31,594      |      |   |             | 44,394      |  
|                                                                                           | Amortization of intangible assets                          |   |                                | 145,936     |      |   |             | 147,369     |  
|                                                                                           | Depreciation of premises and equipment                     |   |                                | 862,091     |      |   |             | 753,870     |  
|                                                                                           | Provision for loan losses                                  |   |                                | 588,000     |      |   |             | 266,000     |  
|                                                                                           | Deferred income tax provision (benefit)                    |   |                                | (213,073    | )    |   |             | (108,952    | )
|                                                                                           | Deferred net loan fees/costs                               |   |                                | (501,610    | )    |   |             | (77,344     | )
|                                                                                           | Investment securities gains, net                           |   |                                | (5,337      | )    |   |             | (138,127    | )
|                                                                                           | Net (gain) loss on sale/disposal of premises and equipment |   |                                | (923        | )    |   |             | 545         |  
|                                                                                           | Gain on sale of investment in ERAS JV                      |   |                                | (202,393    | )    |   |             |            |  
|                                                                                           | Gain on sales of government guaranteed loans, net          |   |                                | (87,470     | )    |   |             | (23,179     | )
|                                                                                           | Loss on sale of servicing rights                           |   |                                |            |      |   |             | 2,532       |  
|                                                                                           | Mortgage loans originated for sale                         |   |                                | (59,191,527 | )    |   |             | (29,583,519 | )
|                                                                                           | Proceeds from sale of mortgage loans                       |   |                                | 60,402,167  |      |   |             | 30,256,897  |  
|                                                                                           | Fees on mortgage loans sold                                |   |                                | (1,210,640  | )    |   |             | (673,378    | )
|                                                                                           | Decrease in accrued interest receivable and other assets   |   |                                | 2,139,012   |      |   |             | 1,880,232   |  
|                                                                                           | Decrease in accrued interest payable and other liabilities |   |                                | (1,676,541  | )    |   |             | (23,722     | )
|                                                                                           |                                                            |   |                                |             |      |   |             |            
|                                                                                           | NET CASH PROVIDED BY OPERATING ACTIVITIES                  |   |                                | 3,554,009   |      |   |             | 5,016,102   |  
|                                                                                           |                                                            |   |                                |             |      |   |             |            
|CASH FLOWS FROM INVESTING ACTIVITIES                                                       |                                                            |   |                                |             |      |   |             |            
|Purchases of investment securities available for sale                                      |                                                            |   | (4,390,774                     | )           |      |   | (19,194,484 | )          
|Repayments of principal and maturities of investment securities available for sale         |                                                            |   | 12,072,536                     |             |      |   | 3,749,705   |            
|Sales of investment securities available for sale                                          |                                                            |   |                               |             |      |   | 12,025,792  |            
|Proceeds from sales of government guaranteed loans                                         |                                                            |   | 2,241,119                      |             |      |   |            |            
|Loans originated or acquired, net of principal repayments                                  |                                                            |   | (33,834,486                    | )           |      |   | (22,012,027 | )          
|Net proceeds received from servicing rights sale                                           |                                                            |   |                               |             |      |   | 33,079      |            
|Proceeds from sale of investment in ERAS JV                                                |                                                            |   | 326,667                        |             |      |   |            |            
|Purchases of premises and equipment                                                        |                                                            |   | (2,437,413                     | )           |      |   | (999,233    | )          
|Sales of premises and equipment                                                            |                                                            |   | 2,037                          |             |      |   | 11,756      |            
|                                                                                           |                                                            |   |                                |             |      |   |             |            
|                                                                                           | NET CASH USED IN INVESTING ACTIVITIES                      |   |                                | (26,020,314 | )    |   |             | (26,385,412 | )
|                                                                                           |                                                            |   |                                |             |      |   |             |            
|CASH FLOWS FROM FINANCING ACTIVITIES                                                       |                                                            |   |                                |             |      |   |             |            
|Net increase in federal funds purchased and securities sold under agreements to
repurchase |                                                            |   | 676,029                        |             |      |   | 2,250,600   |            
|Net decrease in FHLB advances                                                              |                                                            |   | (10,000,000                    | )           |      |   | (5,000,000  | )          
|Net increase in demand, money market and savings accounts                                  |                                                            |   | 19,560,507                     |             |      |   | 27,075,981  |            
|Net increase in time deposits                                                              |                                                            |   | 50,605,633                     |             |      |   | 18,100,348  |            
|Proceeds from exercise of stock options                                                    |                                                            |   | 570,336                        |             |      |   | 343,028     |            
|Proceeds from private placement of common stock                                            |                                                            |   | 4,344,063                      |             |      |   |            |            
|Cash dividends paid                                                                        |                                                            |   | (896,505                       | )           |      |   | (851,723    | )          
|                                                                                           |                                                            |   |                                |             |      |   |             |            
|                                                                                           | NET CASH PROVIDED BY FINANCING ACTIVITIES                  |   |                                | 64,860,063  |      |   |             | 41,918,234  |  
|                                                                                           |                                                            |   |                                |             |      |   |             |            
|NET INCREASE IN CASH AND CASH EQUIVALENTS                                                  |                                                            |   | 42,393,758                     |             |      |   | 20,548,924  |            
|CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                           |                                                            |   | 24,069,659                     |             |      |   | 21,269,909  |            
|                                                                                           |                                                            |   |                                |             |      |   |             |            
|CASH AND CASH EQUIVALENTS AT END OF PERIOD                                                 |                                                            | $ | 66,463,417                     |             |      | $ | 41,818,833  |            
|                                                                                           |                                                            |   |                                |             |      |   |             |            
|SUPPLEMENTAL DISCLOSURES OF CASH FLOWS:                                                    |                                                            |   |                                |             |      |   |             |            
|Cash paid for:                                                                             |                                                            |   |                                |             |      |   |             |            
|                                                                                           | Interest                                                   |   | $                              | 5,662,160   |      |   | $           | 6,024,655   |  
|                                                                                           | Income taxes                                               |   |                                | 1,775,000   |      |   |             | 1,441,000   |  

(See notes to consolidated financial statements)

5



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##### Table of Contents



TIB FINANCIAL CORP.




CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2003
(Unaudited)


NOTE 1  BASIS OF PRESENTATION & ACCOUNTING POLICIES

TIB Financial Corp. is a financial holding company headquartered in Key Largo,
Florida. TIB Financial Corp. owns and operates TIB Bank of the Keys, which has
a total of fourteen branches in Florida that are located in Monroe, Miami-Dade,
Collier and Lee counties.

The accompanying unaudited consolidated financial statements for TIB Financial
Corp. (the Company) have been prepared in accordance with accounting
principles generally accepted in the United States of America for interim
financial information and Regulation S-X. Accordingly, they do not include all
of the information and footnotes required by accounting principles generally
accepted in the United States of America for complete financial statement
presentation. For further information and an additional description of the
Companys accounting policies, refer to the Companys annual report for the
year ended December 31, 2002.

The consolidated statements include the accounts of TIB Financial Corp. and its
wholly-owned subsidiaries, TIB Bank of the Keys, TIB Software and Services,
Inc., TIBFL Statutory Trust I, TIBFL Statutory Trust II, and Keys Insurance
Agency, Inc. and the Banks two subsidiaries, TIB Government Loan Specialists,
Inc. and TIB Investment Center Inc., collectively known as the Company. All
significant intercompany accounts and transactions have been eliminated in
consolidation. In the opinion of management, all adjustments (consisting of
normal recurring accruals) considered necessary for a fair presentation have
been included. Certain amounts previously reported on have been reclassified
to conform to the current period presentation.

As used in this document, the terms we, us, our, TIB Financial, and
Company mean TIB Financial Corp. and its subsidiaries (unless the context
indicates another meaning), and the term Bank means TIB Bank of the Keys and
its subsidiaries (unless the context indicates another meaning).

RECENT ACCOUNTING PRONOUNCEMENTS

The Financial Accounting Standards Board recently issued two new accounting
standards, Statement 149, Amendment of Statement 133 on Derivative Instruments
and Hedging Activities, and Statement 150, Accounting for Certain Financial
Instruments with Characteristics of both Liabilities and Equity, both of
which generally become effective in the quarter beginning July 1, 2003.
Management has determined that adoption of these new statements will not have a
material impact on its financial statements.

CRITICAL ACCOUNTING POLICIES

The accounting and reporting policies of the Company are in accordance with
accounting principles generally accepted within the United States of America
and conform to general practices within the banking industry. Accounting and
reporting policies for the allowance for loan losses are deemed critical since
they involve the use of estimates and require significant management judgments.
Application of assumptions different than those used by management could
result in material changes in the Companys financial position or results of
operations. Additional information with regard to the Companys methodology
and reporting of the allowance for loan losses is included in the 2002 Annual
Report and 10-K, Note 5 below and the Non-Performing Assets section of the
Managements Discussion and Analysis of Financial Condition and Results of
Operations.

NOTE 2  ACQUISITIONS AND DIVESTITURES

On October 31, 2000, the Company purchased Keys Insurance Agency of Monroe
County, Inc. from a Company director. Keys Insurance Agency, Inc. (the new
name subsequent to the purchase) has three offices in the Florida Keys and one
office in Naples. Keys Insurance Agency, Inc. offers a full line of commercial
and residential hazard insurance coverage as well as life and health insurance
and annuities. Total consideration paid at closing for the agency was
$1,870,000. This was comprised of $220,000 in the Companys common stock and
$1,650,000 in cash paid at closing. Under the purchase agreement, annual cash
payments of $110,000 are to be made following each of the first three
anniversaries of the closing date, subject to the agency achieving certain
earning thresholds. Any of this additional consideration that is paid at the
end of each contingency period, will at that time be recorded as goodwill and
increase the total recorded purchase price of the agency. No amount was
required to be paid in 2001 or 2002.

6



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On September 25, 2001, Keys Insurance Agency, Inc. purchased BonData Group
Limited, Inc., a Ft. Myers, Florida based insurance agency specializing in
surety bond underwriting and placement. Total consideration paid at closing
for the agency was $273,000. This was comprised of approximately $68,000 in
the Companys common stock and approximately $205,000 in cash. Under the
purchase agreement, annual cash payments of $24,000 are to be made following
each of the first two anniversaries of the closing date, subject to the agency
achieving certain earning thresholds. Any of this additional consideration
that is paid at the end of each contingency period, will at that time be
recorded as goodwill and increase the total recorded purchase price of the
agency. No amount was required to be paid in 2002.

On May 29, 2003, TIB Software & Services sold its remaining interest in ERAS
Joint Venture for $326,667. The Company recognized a pretax gain of
approximately $202,000 on the transaction.

NOTE 3  INVESTMENT SECURITIES

The amortized cost and estimated fair value of investment securities available
for sale at June 30, 2003 and December 31, 2002 are presented below:

|                                             |  |               |            |            |  |            |           |            |  |   |        |  |  |   |            | 
|-------------------------------------------- |  | ------------- | ---------- | ---------- |  | ---------- | --------- | ---------- |  | - | ------ |  |  | - | ---------- | 
|                                             |  | June 30, 2003
|                                             |  |              
|                                             |  | Amortized     |            | Unrealized |  | Unrealized |           | Estimated 
|                                             |  | Cost          |            | Gains      |  | Losses     |           | Fair Value
|                                             |  |               |            |            |  |            |           |           
|U.S. Treasury securities                     |  | $             | 210,859    |            |  | $          | 14,203    |            |  | $ |       |  |  | $ | 225,062    | 
|U.S. Government agencies and corporations    |  |               | 21,461,078 |            |  |            | 833,951   |            |  |   |       |  |  |   | 22,295,029 | 
|States and political
subdivisions-tax-exempt |  |               | 8,278,204  |            |  |            | 500,176   |            |  |   | 20,290 |  |  |   | 8,758,090  | 
|States and political subdivisions-taxable    |  |               | 3,958,536  |            |  |            | 156,744   |            |  |   |       |  |  |   | 4,115,280  | 
|Mortgage-backed securities                   |  |               | 11,065,235 |            |  |            | 937,215   |            |  |   |       |  |  |   | 12,002,450 | 
|                                             |  |               |            |            |  |            |           |            |  |   |        |  |  |   |            | 
|                                             |  | $             | 44,973,912 |            |  | $          | 2,442,289 |            |  | $ | 20,290 |  |  | $ | 47,395,911 | 
|                                             |  |               |            |            |  |            |           |            |  |   |        |  |  |   |            | 

|                                             |  |                   |            |            |  |            |           |            |  |   |       |  |  |   |            | 
|-------------------------------------------- |  | ----------------- | ---------- | ---------- |  | ---------- | --------- | ---------- |  | - | ----- |  |  | - | ---------- | 
|                                             |  | December 31, 2002
|                                             |  |                  
|                                             |  | Amortized         |            | Unrealized |  | Unrealized |           | Estimated 
|                                             |  | Cost              |            | Gains      |  | Losses     |           | Fair Value
|                                             |  |                   |            |            |  |            |           |           
|U.S. Treasury securities                     |  | $                 | 212,412    |            |  | $          | 10,978    |            |  | $ |      |  |  | $ | 223,390    | 
|U.S. Government agencies and corporations    |  |                   | 28,333,379 |            |  |            | 883,621   |            |  |   |      |  |  |   | 29,217,000 | 
|States and political
subdivisions-tax-exempt |  |                   | 5,171,944  |            |  |            | 382,444   |            |  |   |      |  |  |   | 5,554,388  | 
|States and political subdivisions-taxable    |  |                   | 4,380,149  |            |  |            | 88,347    |            |  |   | 8,521 |  |  |   | 4,459,975  | 
|Mortgage-backed securities                   |  |                   | 14,382,946 |            |  |            | 430,131   |            |  |   |      |  |  |   | 14,813,077 | 
|                                             |  |                   |            |            |  |            |           |            |  |   |       |  |  |   |            | 
|                                             |  | $                 | 52,480,830 |            |  | $          | 1,795,521 |            |  | $ | 8,521 |  |  | $ | 54,267,830 | 
|                                             |  |                   |            |            |  |            |           |            |  |   |       |  |  |   |            | 

NOTE 4  LOANS

Major classifications of loans are as follows:

|                                  |                                   |  |               |             |                   |  |            |             | 
|--------------------------------- | --------------------------------- |  | ------------- | ----------- | ----------------- |  | ---------- | ----------- | 
|                                  |                                   |  | June 30, 2003 |             | December 31, 2002
|                                  |                                   |  |               |             |                  
|Real estate mortgage loans:       |                                   |  |               |             |                   |  |            |            
|                                  | Commercial                        |  | $             | 283,346,832 |                   |  | $          | 265,112,947 | 
|                                  | Residential                       |  |               | 62,441,884  |                   |  |            | 68,389,247  | 
|                                  | Farmland                          |  |               | 1,434,263   |                   |  |            | 442,707     | 
|                                  | Construction                      |  |               | 13,006,908  |                   |  |            | 14,892,626  | 
|Commercial and agricultural loans |                                   |  | 48,791,182    |             |                   |  | 49,212,393 |            
|Consumer loans                    |                                   |  | 9,486,886     |             |                   |  | 9,364,144  |            
|Indirect auto dealer loans        |                                   |  | 39,213,964    |             |                   |  | 16,854,612 |            
|Home equity loans                 |                                   |  | 15,397,172    |             |                   |  | 17,475,539 |            
|                                  |                                   |  |               |             |                   |  |            |            
|                                  | Total loans                       |  |               | 473,119,091 |                   |  |            | 441,744,215 | 
|Net deferred loan costs           |                                   |  | 1,285,330     |             |                   |  | 783,719    |            
|                                  |                                   |  |               |             |                   |  |            |            
|                                  | Loans, net of deferred loan costs |  | $             | 474,404,421 |                   |  | $          | 442,527,934 | 
|                                  |                                   |  |               |             |                   |  |            |            

NOTE 5  ALLOWANCE FOR LOAN LOSSES

Activity in the allowance for loan losses for the six months ended June 30,
2003 and June 30, 2002 follows:

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|                                           |  |      |           |      |  |   |           |  
|------------------------------------------ |  | ---- | --------- | ---- |  | - | --------- | -
|                                           |  | 2003 |           | 2002
|                                           |  |      |           |     
|Balance, January 1                         |  | $    | 4,272,499 |      |  | $ | 3,674,842 |  
|Provision charged to expense               |  |      | 588,000   |      |  |   | 266,000   |  
|Loans charged off                          |  |      | (319,980  | )    |  |   | (213,970  | )
|Recoveries of loans previously charged off |  |      | 14,020    |      |  |   | 13,691    |  
|                                           |  |      |           |      |  |   |           |  
|Balance, June 30                           |  | $    | 4,554,539 |      |  | $ | 3,740,563 |  
|                                           |  |      |           |      |  |   |           |  

NOTE 6  GOODWILL AND INTANGIBLE ASSETS

In accordance with SFAS 142, the following information is presented on the
Companys goodwill and intangible assets:

|                            |       |                |           |              |  |          |           |           |  |   |           |           | 
|--------------------------- | ----- | -------------- | --------- | ------------ |  | -------- | --------- | --------- |  | - | --------- | --------- | 
|Amortized Intangible Assets |       | Gross Carrying |           | Accumulated  |  | Net Book
|at June 30, 2003:           |       | Amount         |           | Amortization |  | Value   
|                            |       |                |           |              |  |         
|Core Deposit Intangible     |       | $              | 2,941,234 |              |  | $        | 1,142,576 |           |  | $ | 1,798,658 |          
|Servicing Rights            |       |                | 88,917    |              |  |          | 54,593    |           |  |   | 34,324    |          
|                            |       |                |           |              |  |          |           |           |  |   |           |          
|                            | Total |                | $         | 3,030,151    |  |          | $         | 1,197,169 |  |   | $         | 1,832,982 | 
|                            |       |                |           |              |  |          |           |           |  |   |           |          

Intangible amortization expense totaled $145,936 for the six months ended June
30, 2003.

The changes in the carrying amount of goodwill for the six months ended June
30, 2003, are as follows:

|                                                                                          |  |                 |         |              |  |               |           |        |  |   |         |   |  |   |           |  
|----------------------------------------------------------------------------------------- |  | --------------- | ------- | ------------ |  | ------------- | --------- | ------ |  | - | ------- | - |  | - | --------- | -
|                                                                                          |  | Government      |         |              |  |               |           |        |  |   |         |   |  |  
|                                                                                          |  | Guaranteed Loan |         |              |  |               |           |        |  |   |         |   |  |  
|                                                                                          |  | Sales and       |         | Insurance    |  | Investment in |           |        |  |  
|                                                                                          |  | Servicing       |         | Agency Sales |  | ERAS JV (a)   |           | Totals
|                                                                                          |  |                 |         |              |  |               |           |       
|Balance as of January 1, 2003                                                             |  | $               | 155,232 |              |  | $             | 2,010,211 |        |  | $ | 68,581  |   |  | $ | 2,234,024 |  
|Write off of goodwill
associated with sale of
remaining interest of
Investment in ERAS JV |  |                 |        |              |  |               |          |        |  |   | (68,581 | ) |  |   | (68,581   | )
|                                                                                          |  |                 |         |              |  |               |           |        |  |   |         |   |  |   |           |  
|Balance as of June 30, 2003                                                               |  | $               | 155,232 |              |  | $             | 2,010,211 |        |  | $ |        |   |  | $ | 2,165,443 |  
|                                                                                          |  |                 |         |              |  |               |           |        |  |   |         |   |  |   |           |  



| | (a) |  | Investment in ERAS JV is reported as Parent and Other in the
segment reporting table in Note 10.
| | --- |  | --------------------------------------------------------------------------------------------------

NOTE 7  EARNINGS PER SHARE AND COMMON STOCK

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

|                                          |  |                                   |  |              |           |               |  |                  |           |  |  |   |       |  
|----------------------------------------- |  | --------------------------------- |  | ------------ | --------- | ------------- |  | ---------------- | --------- |  |  | - | ----- | -
|                                          |  |                                   |  | Net Earnings |           | Common Shares |  | Per Share Amount
|                                          |  |                                   |  |              |           |               |  |                 
|For the three months ended June 30, 2003: |  |                                   |  |              |           |               |  |                  |           |  |  |  
|                                          |  | Basic earnings per common share   |  | $            | 1,285,454 |               |  |                  | 4,152,481 |  |  | $ | 0.31  |  
|                                          |  | Effect of dilutive stock options  |  |              |          |               |  |                  | 159,875   |  |  |   | (0.01 | )
|                                          |  |                                   |  |              |           |               |  |                  |           |  |  |  
|                                          |  | Diluted earnings per common share |  | $            | 1,285,454 |               |  |                  | 4,312,356 |  |  | $ | 0.30  |  
|                                          |  |                                   |  |              |           |               |  |                  |           |  |  |  
|For the three months ended June 30, 2002: |  |                                   |  |              |           |               |  |                  |           |  |  |  
|                                          |  | Basic earnings per common share   |  | $            | 1,101,566 |               |  |                  | 3,981,945 |  |  | $ | 0.28  |  
|                                          |  | Effect of dilutive stock options  |  |              |          |               |  |                  | 165,142   |  |  |   | (0.01 | )
|                                          |  |                                   |  |              |           |               |  |                  |           |  |  |   |       |  
|                                          |  | Diluted earnings per common share |  | $            | 1,101,566 |               |  |                  | 4,147,087 |  |  | $ | 0.27  |  
|                                          |  |                                   |  |              |           |               |  |                  |           |  |  |  



| |  | For the three months ended June 30, 2003 and 2002, 1,923 and 16,352 shares
under option, respectively, were excluded from the diluted earning per
share calculation as their effect was anti-dilutive.
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|                                        |                                  |                                   |   |              |           |               |  |                  |           |  |   |       |      | 
|--------------------------------------- | -------------------------------- | --------------------------------- | - | ------------ | --------- | ------------- |  | ---------------- | --------- |  | - | ----- | ---- | 
|                                        |                                  |                                   |   | Net Earnings |           | Common Shares |  | Per Share Amount
|                                        |                                  |                                   |   |              |           |               |  |                 
|For the six months ended June 30, 2003: |                                  |                                   |   |              |           |               |  |                  |           |  |   |      
|                                        | Basic earnings per common share  |                                   | $ | 2,474,723    |           |               |  | 4,101,616        |           |  | $ | 0.60  |     
|                                        | Effect of dilutive stock options |                                   |   |             |           |               |  | 169,084          |           |  |   | (0.02 | )   
|                                        |                                  |                                   |   |              |           |               |  |                  |           |  |   |      
|                                        |                                  | Diluted earnings per common share |   | $            | 2,474,723 |               |  |                  | 4,270,700 |  |   | $     | 0.58 | 
|                                        |                                  |                                   |   |              |           |               |  |                  |           |  |   |      
|For the six months ended June 30, 2002: |                                  |                                   |   |              |           |               |  |                  |           |  |   |      
|                                        | Basic earnings per common share  |                                   | $ | 2,292,484    |           |               |  | 3,967,169        |           |  | $ | 0.58  |     
|                                        | Effect of dilutive stock options |                                   |   |             |           |               |  | 155,913          |           |  |   | (0.02 | )   
|                                        |                                  |                                   |   |              |           |               |  |                  |           |  |   |       |     
|                                        |                                  | Diluted earnings per common share |   | $            | 2,292,484 |               |  |                  | 4,123,082 |  |   | $     | 0.56 | 
|                                        |                                  |                                   |   |              |           |               |  |                  |           |  |   |      



| |  | For the six months ended June 30, 2003 and 2002, 967 and 152,656 shares
under option, respectively, were excluded from the diluted earning per
share calculation as their effect was anti-dilutive.
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

NOTE 8  STOCK BASED COMPENSATION

Under the Banks 1994 Incentive Stock Option and Nonstatutory Stock Option Plan
(the Plan) as amended and restated as of August 31, 1996, the Company may
grant stock options to persons who are now or who during the term of the Plan
become directors, officers, or key executives as defined by the Plan. Stock
options granted under the Plan may either be incentive stock options or
nonqualified stock options for federal income tax purposes. The Companys
Board of Directors may grant nonqualified stock options to any director, and
incentive stock options or nonqualified stock options to any officer, key
executive, administrative, or other employee including an employee who is a
director of the Company. Subject to the provisions of the Plan, the maximum
number of shares of Company common stock that may be optioned or sold is
978,000 shares. Such shares may be treasury, or authorized but unissued,
shares of common stock of the Company. If options granted under the Plan
expire or terminate for any reason without having been exercised in full, the
shares not purchased shall again be available for option for the purposes of
the Plan.

Total options granted, exercised, and cancelled/expired during the six months
ended June 30, 2003, were 24,500, 91,300, and 3,800, respectively. As of June
30, 2003, 496,605 options for shares were outstanding.

As permitted by Statement of Financial Accounting Standards No. 123,
Accounting for Stock-Based Compensation (Statement No. 123), the Company
accounts for its stock option plan under the recognition and measurement
principles of Accounting Principles Board Opinion No. 25, Accounting for Stock
Issued to Employees (APB 25), and its related interpretations. Because all
options granted under the Companys plan had an exercise price equal to the
market value of the underlying common stock on the date of grant, no
stock-based compensation cost is reflected in net income under the Companys
application of APB 25. Additionally, the Company did not issue any options to
non-employees who were not directors for the six months ended June 30, 2003 and
2002.

The following tables present the effect on net income and net income per share
if the Company had recognized compensation expense under the fair value
recognition provisions of Statement No. 123:

|                                                                                                           |                       |      |           |      |  |   |           |      | 
|---------------------------------------------------------------------------------------------------------- | --------------------- | ---- | --------- | ---- |  | - | --------- | ---- | 
|FOR THE THREE MONTHS ENDED JUNE 30,                                                                        |                       | 2003 |           | 2002
|                                                                                                           |                       |      |           |     
|Net income, as reported                                                                                    |                       | $    | 1,285,454 |      |  | $ | 1,101,566 |     
|Less: Stock-based employee and director
compensation expense determined under fair
value basis, net of tax |                       |      | 44,435    |      |  |   | 49,423    |     
|                                                                                                           |                       |      |           |      |  |   |           |     
|Pro forma net income                                                                                       |                       | $    | 1,241,019 |      |  | $ | 1,052,143 |     
|                                                                                                           |                       |      |           |      |  |   |           |     
|Earnings per share:                                                                                        |                       |      |           |      |  |   |           |     
|                                                                                                           | Basic  as reported   |      | $         | 0.31 |  |   | $         | 0.28 | 
|                                                                                                           | Basic  pro forma     |      |           | 0.30 |  |   |           | 0.26 | 
|                                                                                                           | Diluted  as reported |      |           | 0.30 |  |   |           | 0.27 | 
|                                                                                                           | Diluted  pro forma   |      |           | 0.29 |  |   |           | 0.25 | 

|                                                                                                           |  |      |           |      |  |   |           |  | 
|---------------------------------------------------------------------------------------------------------- |  | ---- | --------- | ---- |  | - | --------- |  | 
|FOR THE SIX MONTHS ENDED JUNE 30,                                                                          |  | 2003 |           | 2002
|                                                                                                           |  |      |           |     
|Net income, as reported                                                                                    |  | $    | 2,474,723 |      |  | $ | 2,292,484 | 
|Less: Stock-based employee and director
compensation expense determined under fair
value basis, net of tax |  |      | 67,940    |      |  |   | 63,486    | 
|                                                                                                           |  |      |           |      |  |   |           | 
|Pro forma net income                                                                                       |  | $    | 2,406,783 |      |  | $ | 2,228,998 | 
|                                                                                                           |  |      |           |      |  |   |           | 
|Earnings per share:                                                                                        |  |      |           |      |  |   |           | 

9



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|                                  |                       |      |   |      |  |  |   |      | 
|--------------------------------- | --------------------- | ---- | - | ---- |  |  | - | ---- | 
|FOR THE SIX MONTHS ENDED JUNE 30, |                       | 2003 |   | 2002
|                                  |                       |      |   |     
|                                  | Basic  as reported   |      | $ | 0.60 |  |  | $ | 0.58 | 
|                                  | Basic  pro forma     |      |   | 0.59 |  |  |   | 0.56 | 
|                                  | Diluted  as reported |      |   | 0.58 |  |  |   | 0.56 | 
|                                  | Diluted  pro forma   |      |   | 0.56 |  |  |   | 0.54 | 

The fair value of each option is estimated as of the date of grant using the
Black-Scholes Option Pricing Model and the following weighted average
assumptions for options granted in the six months ended June 30:

|                                                           |  |         |      |         |  |   |      |  
|---------------------------------------------------------- |  | ------- | ---- | ------- |  | - | ---- | -
|                                                           |  | 2003    |      | 2002   
|                                                           |  |         |      |        
|Dividend yield                                             |  |         | 2.8  | %       |  |   | 3.2  | %
|Risk-free interest rate                                    |  |         | 4.0  | %       |  |   | 5.2  | %
|Expected lives                                             |  | 9 years |      | 9 years
|Volatility                                                 |  |         | .29  |         |  |   | .29  |  
|Weighted average fair value of options granted during year |  | $       | 5.03 |         |  | $ | 3.67 |  

NOTE 9 - CAPITAL ADEQUACY

Federal banking regulators have established certain capital adequacy standards
required to be maintained by banks and bank holding companies. The minimum
requirements established in the regulations are set forth in the table below,
along with the actual ratios at June 30, 2003 and December 31, 2002:

|                                         |              |  |             |      |             |  |               |  |                   |      |   |  |  |      |   |  | 
|---------------------------------------- | ------------ |  | ----------- | ---- | ----------- |  | ------------- |  | ----------------- | ---- | - |  |  | ---- | - |  | 
|                                         |              |  | Well        |      | Adequately  |  |               |  |                   |      |   |  | 
|                                         |              |  | Capitalized |      | Capitalized |  | June 30, 2003 |  | December 31, 2002
|                                         |              |  | Requirement |      | Requirement |  | Actual        |  | Actual           
|                                         |              |  |             |      |             |  |               |  |                  
|Tier 1 Capital (to Average Assets)       |              |  |             |      |             |  |               |  |                   |      |   |  |  |      |   | 
|                                         | Consolidated |  |             | 35%  |             |  | 34%           |  |                   | 7.5  | % |  |  | 7.1  | %
|                                         | Bank         |  |             | 35%  |             |  | 34%           |  |                   | 8.4  | % |  |  | 8.3  | %
|Tier 1 Capital (to Risk Weighted Assets) |              |  |             |      |             |  |               |  |                   |      |   |  |  |      |   | 
|                                         | Consolidated |  |             | 36%  |             |  | 34%           |  |                   | 9.1  | % |  |  | 8.3  | %
|                                         | Bank         |  |             | 36%  |             |  | 34%           |  |                   | 10.1 | % |  |  | 9.8  | %
|Total Capital (to Risk Weighted Assets)  |              |  |             |      |             |  |               |  |                   |      |   |  |  |      |   | 
|                                         | Consolidated |  |             | 310% |             |  | 38%           |  |                   | 11.2 | % |  |  | 10.9 | %
|                                         | Bank         |  |             | 310% |             |  | 38%           |  |                   | 11.1 | % |  |  | 10.8 | %

Management believes, as of June 30, 2003, that the Company and the Bank met all
capital requirements to which they are subject. The Company has included in
Tier 1 Capital a portion of the trust preferred securities that were issued in
September 2000 and July 2001.

In June 2003, the Company completed a private placement of 280,653 shares of
its common stock to residents of Monroe County, Southwest Florida and
Homestead/Florida City. The shares also were purchased by three members of the
Companys Board of Directors and an executive officer. The private placement
raised approximately $4.3 million in capital at a sales price of $15.64 per
share which was priced at 95% of the average closing bid price for the shares
during the five consecutive trading days ending on the fifth business day prior
to the commencement of the offering.

NOTE 10 - SEGMENT REPORTING

TIB Financial Corp. has three reportable segments: community banking, merchant
bankcard processing, and insurance sales. The community banking segments
business is to attract deposits from the public and to use such deposits to
make real estate, business and consumer loans in its primary service area. The
merchant bankcard processing segment processes credit card
transactions for local merchants. The insurance agency offers a full line of
commercial and residential coverage as well as life, health and annuities.

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

10



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##### Table of Contents



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

|                              |  |           |           |            |  |          |           |           |  |        |         |  |  |   |          |   |  |   |           | 
|----------------------------- |  | --------- | --------- | ---------- |  | -------- | --------- | --------- |  | ------ | ------- |  |  | - | -------- | - |  | - | --------- | 
|                              |  |           |           |            |  | Merchant |           | Insurance |  | Parent |         |  |  |  
|Three months ended            |  | Community |           | Bankcard   |  | Agency   |           | And       |  |        |         | 
|June 30, 2003                 |  | Banking   |           | Processing |  | Sales    |           | Other     |  | Totals
|                              |  |           |           |            |  |          |           |           |  |       
|Interest income               |  | $         | 8,452,396 |            |  | $        |          |           |  | $      |        |  |  | $ |         |   |  | $ | 8,452,396 | 
|Interest expense              |  |           | 2,167,402 |            |  |          |          |           |  |        |        |  |  |   | 397,484  |   |  |   | 2,564,886 | 
|                              |  |           |           |            |  |          |           |           |  |        |         |  |  |   |          |   |  |   |           | 
|Net interest income           |  |           | 6,284,994 |            |  |          |          |           |  |        |        |  |  |   | (397,484 | ) |  |   | 5,887,510 | 
|Other income                  |  |           | 1,565,677 |            |  |          | 1,220,825 |           |  |        | 541,398 |  |  |   | 301,686  |   |  |   | 3,629,586 | 
|Depreciation and
amortization |  |           | 485,104   |            |  |          | 12,110    |           |  |        | 13,822  |  |  |   | 1,132    |   |  |   | 512,168   | 
|Other expense                 |  |           | 5,425,290 |            |  |          | 975,416   |           |  |        | 406,828 |  |  |   | 228,040  |   |  |   | 7,035,574 | 
|                              |  |           |           |            |  |          |           |           |  |        |         |  |  |   |          |   |  |   |           | 
|Pretax segment profit (loss)  |  | $         | 1,940,277 |            |  | $        | 233,299   |           |  | $      | 120,748 |  |  | $ | (324,970 | ) |  | $ | 1,969,354 | 
|                              |  |           |           |            |  |          |           |           |  |        |         |  |  |   |          |   |  |   |           | 

|                              |  |           |           |            |  |          |           |           |  |        |         |  |  |   |          |   |  |   |           | 
|----------------------------- |  | --------- | --------- | ---------- |  | -------- | --------- | --------- |  | ------ | ------- |  |  | - | -------- | - |  | - | --------- | 
|                              |  |           |           |            |  | Merchant |           | Insurance |  | Parent |         |  |  |  
|Three months ended            |  | Community |           | Bankcard   |  | Agency   |           | and       |  |        |         | 
|June 30, 2002                 |  | Banking   |           | Processing |  | Sales    |           | Other     |  | Totals
|                              |  |           |           |            |  |          |           |           |  |       
|Interest income               |  | $         | 7,718,306 |            |  | $        |          |           |  | $      |        |  |  | $ | 8,896    |   |  | $ | 7,727,202 | 
|Interest expense              |  |           | 2,123,819 |            |  |          |          |           |  |        |        |  |  |   | 405,652  |   |  |   | 2,529,471 | 
|                              |  |           |           |            |  |          |           |           |  |        |         |  |  |   |          |   |  |   |           | 
|Net interest income           |  |           | 5,594,487 |            |  |          |          |           |  |        |        |  |  |   | (396,756 | ) |  |   | 5,197,731 | 
|Other income                  |  |           | 1,286,442 |            |  |          | 1,126,508 |           |  |        | 534,820 |  |  |   | 41,766   |   |  |   | 2,989,536 | 
|Depreciation and amortization |  |           | 418,731   |            |  |          | 11,058    |           |  |        | 14,145  |  |  |   | 1,250    |   |  |   | 445,184   | 
|Other expense                 |  |           | 4,545,197 |            |  |          | 909,819   |           |  |        | 418,025 |  |  |   | 181,076  |   |  |   | 6,054,117 | 
|                              |  |           |           |            |  |          |           |           |  |        |         |  |  |   |          |   |  |   |           | 
|Pretax segment profit (loss)  |  | $         | 1,917,001 |            |  | $        | 205,631   |           |  | $      | 102,650 |  |  | $ | (537,316 | ) |  | $ | 1,687,966 | 
|                              |  |           |           |            |  |          |           |           |  |        |         |  |  |   |          |   |  |   |           | 

|                              |  |           |             |            |  |          |           |           |  |        |           |  |  |   |          |   |  |   |             | 
|----------------------------- |  | --------- | ----------- | ---------- |  | -------- | --------- | --------- |  | ------ | --------- |  |  | - | -------- | - |  | - | ----------- | 
|                              |  |           |             |            |  | Merchant |           | Insurance |  | Parent |           |  |  |  
|Six months ended              |  | Community |             | Bankcard   |  | Agency   |           | and       |  |        |           | 
|June 30, 2003                 |  | Banking   |             | Processing |  | Sales    |           | Other     |  | Totals
|                              |  |           |             |            |  |          |           |           |  |       
|Interest income               |  | $         | 16,742,479  |            |  | $        |          |           |  | $      |          |  |  | $ |         |   |  | $ | 16,742,479  | 
|Interest expense              |  |           | 4,226,671   |            |  |          |          |           |  |        |          |  |  |   | 795,078  |   |  |   | 5,021,749   | 
|                              |  |           |             |            |  |          |           |           |  |        |           |  |  |   |          |   |  |   |             | 
|Net interest income           |  |           | 12,515,808  |            |  |          |          |           |  |        |          |  |  |   | (795,078 | ) |  |   | 11,720,730  | 
|Other income                  |  |           | 3,178,647   |            |  |          | 2,598,898 |           |  |        | 977,818   |  |  |   | 388,644  |   |  |   | 7,144,007   | 
|Depreciation and amortization |  |           | 954,936     |            |  |          | 23,356    |           |  |        | 27,383    |  |  |   | 2,352    |   |  |   | 1,008,027   | 
|Other expense                 |  |           | 10,783,206  |            |  |          | 2,103,653 |           |  |        | 785,822   |  |  |   | 372,106  |   |  |   | 14,044,787  | 
|                              |  |           |             |            |  |          |           |           |  |        |           |  |  |   |          |   |  |   |             | 
|Pretax segment profit (loss)  |  | $         | 3,956,313   |            |  | $        | 471,889   |           |  | $      | 164,613   |  |  | $ | (780,892 | ) |  | $ | 3,811,923   | 
|                              |  |           |             |            |  |          |           |           |  |        |           |  |  |   |          |   |  |   |             | 
|Segment Assets                |  | $         | 630,439,774 |            |  | $        | 55,245    |           |  | $      | 2,257,957 |  |  | $ | 449,915  |   |  | $ | 633,202,891 | 

|                              |  |           |             |            |  |          |           |           |  |        |           |  |  |   |          |   |  |   |             | 
|----------------------------- |  | --------- | ----------- | ---------- |  | -------- | --------- | --------- |  | ------ | --------- |  |  | - | -------- | - |  | - | ----------- | 
|                              |  |           |             |            |  | Merchant |           | Insurance |  | Parent |           |  |  |  
|Six months ended              |  | Community |             | Bankcard   |  | Agency   |           | and       |  |        |           | 
|June 30, 2002                 |  | Banking   |             | Processing |  | Sales    |           | Other     |  | Totals
|                              |  |           |             |            |  |          |           |           |  |       
|Interest income               |  | $         | 15,250,870  |            |  | $        |          |           |  | $      |          |  |  | $ | 17,695   |   |  | $ | 15,268,565  | 
|Interest expense              |  |           | 4,298,487   |            |  |          |          |           |  |        |          |  |  |   | 810,460  |   |  |   | 5,108,947   | 
|                              |  |           |             |            |  |          |           |           |  |        |           |  |  |   |          |   |  |   |             | 
|Net interest income           |  |           | 10,952,383  |            |  |          |          |           |  |        |          |  |  |   | (792,765 | ) |  |   | 10,159,618  | 
|Other income                  |  |           | 2,604,936   |            |  |          | 2,459,844 |           |  |        | 934,713   |  |  |   | 131,419  |   |  |   | 6,130,912   | 
|Depreciation and amortization |  |           | 850,202     |            |  |          | 21,558    |           |  |        | 26,926    |  |  |   | 2,553    |   |  |   | 901,239     | 
|Other expense                 |  |           | 8,799,644   |            |  |          | 1,992,483 |           |  |        | 767,574   |  |  |   | 304,306  |   |  |   | 11,864,007  | 
|                              |  |           |             |            |  |          |           |           |  |        |           |  |  |   |          |   |  |   |             | 
|Pretax segment profit (loss)  |  | $         | 3,907,473   |            |  | $        | 445,803   |           |  | $      | 140,213   |  |  | $ | (968,205 | ) |  | $ | 3,525,284   | 
|                              |  |           |             |            |  |          |           |           |  |        |           |  |  |   |          |   |  |   |             | 
|Segment Assets                |  | $         | 535,275,847 |            |  | $        | 88,233    |           |  | $      | 2,384,191 |  |  | $ | 981,930  |   |  | $ | 538,730,201 | 

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The Company discontinued separate reporting of its government guaranteed loan
sales and servicing segment in 2003. This segment is now included as part of
the Community Banking segment above.




Item 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

FORWARD-LOOKING STATEMENTS

Certain of the matters discussed under the caption Managements Discussion and
Analysis of Financial Condition and Results of Operations and elsewhere in
this Form 10-Q may constitute forward-looking statements within the meaning
of the Private Securities Litigation Reform Act and as such may involve known
and unknown risk, uncertainties and other factors which may cause the actual
results, performance or achievements of TIB Financial Corp. to be materially
different from future results described in such forward-looking statements.
Actual results may differ materially from the results anticipated in these
forward-looking statements due to a variety of factors, including, without
limitation: the effects of future economic conditions; governmental monetary
and fiscal policies, as well as legislative and regulatory changes; the risks
of changes in interest rates on the level and composition of deposits, loan
demand, and the values of loan collateral, and interest rate risks; the effects
of competition from other commercial banks, thrifts, consumer finance
companies, and other financial institutions operating in the Companys market
area and elsewhere. All forward-looking statements attributable to the Company
are expressly qualified in their entirety by these cautionary statements. The
Company disclaims any intent or obligation to update these forward-looking
statements, whether as a result of new information, future events or otherwise.

The following discussion addresses the factors that have affected the financial
condition and results of operations of TIB Financial Corp. (the Company) as
reflected in the unaudited consolidated statement of condition as of June 30,
2003, and statement of income for the three and six months ended June 30, 2003.
Operating results for the six months ended June 30, 2003 are not necessarily
indicative of trends or results to be expected for the year ended December 31,
2003.

THREE MONTHS ENDED JUNE 30, 2003 AND 2002

RESULTS OF OPERATIONS

The Companys net income of $1,285,454 for the second quarter of 2003, was a
$183,888 or 16.7% increase compared to $1,101,566 for the same period last
year.
Basic and diluted earnings per share for the second quarter of 2003 were $0.31
and $0.30 respectively as compared to $0.28 and $0.27 per share in the previous
years quarter.

NET INTEREST INCOME

Net interest income represents the amount by which interest income on
interest-earning assets exceeds interest incurred on interest-bearing
liabilities. Net interest income is the largest component of the Companys
income, and is affected by the interest rate environment, and the volume and
the composition of interest-earning assets and interest-bearing liabilities.
Interest earning assets for the Company include loans, federal funds sold,
interest bearing deposits in other banks, and investment securities. The
Companys interest-bearing liabilities include its deposits, federal funds
purchased, notes payable related to Company shares repurchased, trust preferred
securities, advances from the Federal Home Loan Bank, and other short term
borrowings.

Net interest income was $5,887,510 for the three months ended June 30, 2003,
compared to $5,197,731 for the same period in 2002. The 13.3% increase was
mainly attributable to increased volumes in the loan portfolio which is our
highest yielding
asset class, and these funds came primarily from the deposit growth of the
Bank. Partially offsetting this was a relative increase in time deposits, our
highest cost deposit category as a percentage share of total deposits.

PROVISION FOR LOAN LOSSES

The provision for loan losses represents the charge to income necessary to
adjust the allowance for loan losses to an amount that represents managements
assessment of the estimated probable credit losses inherent in the Companys
loan portfolio which have been incurred at each balance sheet date.

The provision for loan losses increased $129,000 or 100.0% to $258,000 in the
second quarter of 2003 compared to $129,000 in the second quarter of 2002. The
higher provision for loan losses in 2003 was attributable to growth in the loan
portfolio which this year included significant amounts of indirect automobile
loans compared to very few in the prior year. Net charge-offs were $72,858
during the three months ended June 30, 2003, compared to $204,753 for the same
period in 2002. Management will continue to monitor the credit quality of the
lending portfolio and will recognize additional provisions in the future as
necessary, in the opinion of management, to maintain the allowance for loan
losses at an appropriate level.

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NON-INTEREST INCOME

Non-interest income for the second quarter of 2003 was $3,629,586. This
represents a $640,050 or 21.4% increase over the prior year quarter which
totaled $2,989,536. The increase in non-interest income is attributable to an
increase of $40,677 in service charges on deposit accounts; an increase of
$94,317 in merchant bank card processing income; a $295,121 increase in fees on
mortgage loans sold; a $6,578 increase in commissions on sales by Keys
Insurance Agency; a $57,527 increase in retail investment services; a $30,459 increase
in other income; a $202,393 increase in gain on sale of investment in ERAS
Joint Venture; offset by a $63,843 decrease in net investment security gains
and a $23,179 decrease in gain on sale of government guaranteed loans.

The increases in merchant bank card processing income, fees on mortgage loans
sold, retail investment services, and commissions on sales by Keys
Insurance Agency
are primarily a result of volume increases. On May 29, 2003, we sold our
remaining interest in ERAS Joint Venture for $326,667. We recognized a pretax
gain of approximately $202,000 on this transaction. The net gain from the
sale of investment securities will vary based upon the sales and calls of the
individual securities in the investment portfolio. In 2002, the gain was
primarily the result of the sale of two agency securities in the second quarter
of 2002 that netted a gain of approximately $64,000. Gain on sale of
government guaranteed loans result from a relatively small number of
transactions and, therefore, the revenue recognition from these transactions
can vary considerably depending on the number of loans sold and the dollar
amount of the transactions. There was one loan sold in the second quarter of
2002, and none sold during the second quarter of 2003.

NON-INTEREST EXPENSE

Non-interest expense for the second quarter of 2003 was $7,289,742. This
represents a $919,441 or 14.4% increase over the prior year quarter which
totaled $6,370,301. The increase in non-interest expense is attributable to
salaries and employee benefits increasing $505,523, net occupancy expense
increasing $179,890, and other expense increasing $234,028. A portion of these
increases are a result of the continuing expansion in the Southwest Florida
market. The Bank added two new locations there in the second half of 2001 and
one new location was added in the fourth quarter of 2002. The addition of
these facilities and their continued growth has caused the Bank to hire
additional personnel and incur additional operating costs. Further, additional
staffing has been required for the origination and servicing of indirect loans
and to meet the compliance requirements under the Patriot Act and other new
government regulations. We also had increased commission expense over the
prior year, due to increased revenues from fees on mortgage loans sold and
retail investment services.

INCOME TAXES

The change in income tax expense is primarily attributable to the growth in
income before income taxes. The provision for income taxes totaled $683,900,
for an effective tax rate of 34.7%, for the three months ended June 30, 2003,
and $586,400, for an effective tax rate of 34.7%, for the three months ended
June 30, 2002.

SIX MONTHS ENDED JUNE 30, 2003 AND 2002

RESULTS OF OPERATIONS

The Companys net income of $2,474,723 for the first six months of 2003, was a
$182,239 or 7.9% increase compared to $2,292,484 for the same period last year.
Basic and diluted earnings per share for the first six months of 2003 were
$0.60 and $0.58 respectively as compared to $0.58 and $0.56 per share in the
previous years six month period.

Performance of banks is often measured by various ratio analyses. Two widely
recognized indicators are return on average equity and return on average
assets. Annualized return on average equity for the six months ended June 30,
2003 was 14.10% on average equity of $35,095,000, compared to 15.40% on average
equity of $29,767,000 for the same period in 2002.
Annualized return on average assets of $601,854,000 for the six months ended
June 30, 2003 was 0.82%, compared to 0.88% on average assets of $518,946,000
for the same period in 2002.

NET INTEREST INCOME

Net interest income represents the amount by which interest income on
interest-earning assets exceeds interest incurred on interest-bearing
liabilities. Net interest income is the largest component of the Companys
income, and is affected by the interest rate environment, and the volume and
the composition of interest-earning assets and interest-bearing liabilities.
Interest earning assets for the Company include loans, federal funds sold,
interest bearing deposits in other banks, and investment securities. The
Companys interest-bearing liabilities include its deposits, federal funds
purchased, notes payable related to Company shares repurchased, trust preferred
securities, advances from the Federal Home Loan Bank, and other short term
borrowings.

Net interest income increased $1,561,112, or 15.4%, to $11.7 million, in the
six months ended June 30, 2003 as compared to the same period last year. The
prime rate as published in the Wall Street Journal began 2002 at 4.75%, by
November 2002 it had declined to 4.25% and in June 2003 it declined to 4.00%.
Many of the Banks loans are indexed to this floating rate. The

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##### Table of Contents



lower level
of prime rate in the first six months of 2003 compared to the comparative
period in 2002 did result in a lower average yield in the loan portfolio,
however, increased volumes more than compensated for this allowing for the
reported increase in interest income. In addition to this increase in interest
income, the Company has been able to reprice maturing high-rate certificates of
deposit and other funding sources resulting in a reduction in interest expense
compared to the prior year.

In furtherance of our efforts to generate higher relative yielding assets, the
Bank began a program to acquire indirect automobile loans. After significant
study, we began in April 2002 to put together a department that we feel could
safely acquire and service this type of product. We predominately buy loans
from auto dealers in southwest Florida which are for the purchase of new or
late model used cars. We serve customers over a broad range of
creditworthiness and the required terms and rates are reflective of those risk
profiles. By the end of 2002, we were buying approximately $4 million per
month of indirect automobile paper and as of June 30, 2003, we had
approximately $39.2 million of indirect loans outstanding.

The average yield on interest earning assets for the first six months of 2003
was 6.25% which was a decrease of 36 basis points compared to the 6.61% yield
earned during the first six months of 2002. The average cost of interest
bearing deposits declined 34 basis points from 2.36% during the first six
months of 2002 to 2.02% for the comparable period in 2003, and the rate of all
interest bearing liabilities decreased 38 basis points, from 2.65% in 2002 to
2.27% in 2003. The Companys net interest margin decreased to 4.39% in the
first six months of 2003 compared to 4.41% in the first six months of 2002.

The following table presents average balances of the Company, the
taxable-equivalent interest earned, and the rate paid thereon during the six
months ended June 30, 2003 and June 30, 2002.

|                                                           |                                         |                            |                                          |         |         |         |         |          |        |         |         |       |         |      |         |        |         |         |        |     |       |        |      |      |      |      |  
|---------------------------------------------------------- | --------------------------------------- | -------------------------- | ---------------------------------------- | ------- | ------- | ------- | ------- | -------- | ------ | ------- | ------- | ----- | ------- | ---- | ------- | ------ | ------- | ------- | ------ | --- | ----- | ------ | ---- | ---- | ---- | ---- | -
|                                                           |                                         |                            |                                          |         | 2003    |         | 2002   
|                                                           |                                         |                            |                                          |         |         |         |        
|                                                           |                                         |                            |                                          |         | AVERAGE |         | INCOME/ |          | YIELDS |         | AVERAGE |       | INCOME/ |      | YIELDS 
|(Dollars in thousands)                                     |                                         | BALANCES                   |                                          | EXPENSE |         | RATES   |         | BALANCES |        | EXPENSE |         | RATES
|                                                           |                                         |                            |                                          |         |         |         |         |          |        |         |         |      
|                                                           | Interest-earning assets:                |                            |                                          |         |         |         |         |          |        |         |         |       |         |      |         |        |         |         |        |     |       |        |      |      |     
|                                                           |                                         |                            | Loans (1)(2)                             |         | $       | 457,724 |         |          | $      | 15,279  |         |       |         | 6.73 | %       |        | $       | 390,325 |        |     | $     | 13,432 |      |      |      | 6.94 | %
|                                                           |                                         |                            | Investment securities - taxable          |         |         | 44,164  |         |          |        | 1,098   |         |       |         | 5.01 | %       |        |         | 52,167  |        |     |       | 1,521  |      |      |      | 5.88 | %
|                                                           |                                         |                            | Investment securities - tax exempt (2)   |         |         | 6,480   |         |          |        | 219     |         |       |         | 6.80 | %       |        |         | 5,558   |        |     |       | 202    |      |      |      | 7.31 | %
|                                                           |                                         |                            | Interest bearing deposits in other banks |         |         | 199     |         |          |        | 1       |         |       |         | 0.96 | %       |        |         | 348     |        |     |       | 3      |      |      |      | 1.78 | %
|                                                           |                                         |                            | Federal Home Loan Bank stock             |         |         | 1,424   |         |          |        | 30      |         |       |         | 4.26 | %       |        |         | 1,500   |        |     |       | 41     |      |      |      | 5.50 | %
|                                                           |                                         |                            | Federal funds sold                       |         |         | 32,413  |         |          |        | 193     |         |       |         | 1.20 | %       |        |         | 18,108  |        |     |       | 151    |      |      |      | 1.68 | %
|                                                           |                                         |                            |                                          |         |         |         |         |          |        |         |         |       |         |      |         |        |         |         |        |     |       |        |      |     
|Total interest-earning assets                              |                                         |                            | 542,404                                  |         |         |         | 16,820  |          |        |         | 6.25    | %     |         |      | 468,006 |        |         |         | 15,350 |     |       |        | 6.61 | %   
|                                                           |                                         |                            |                                          |         |         |         |         |          |        |         |         |       |         |      |         |        |         |         |        |     |       |        |      |     
|Non-interest-earning assets:                               |                                         |                            |                                          |         |         |         |         |          |        |         |         |       |         |      |         |        |         |         |        |     |       |        |      |     
|                                                           | Cash and due from banks                 |                            |                                          | 15,600  |         |         |         |          |        |         |         |       |         |      |         | 13,768 |         |         |        |     |       |        |      |      |     
|                                                           | Investment in ERAS                      |                            |                                          | 104     |         |         |         |          |        |         |         |       |         |      |         | 255    |         |         |        |     |       |        |      |      |     
|                                                           | Premises and equipment, net             |                            |                                          | 18,850  |         |         |         |          |        |         |         |       |         |      |         | 17,492 |         |         |        |     |       |        |      |      |     
|                                                           | Allowances for loan losses              |                            |                                          | (4,503  | )       |         |         |          |        |         |         |       |         |      |         | (3,900 | )       |         |        |     |       |        |      |      |     
|                                                           | Other assets                            |                            |                                          | 29,399  |         |         |         |          |        |         |         |       |         |      |         | 23,325 |         |         |        |     |       |        |      |      |     
|                                                           |                                         |                            |                                          |         |         |         |         |          |        |         |         |       |         |      |         |        |         |         |        |     |       |        |      |     
|Total non-interest earning assets                          |                                         |                            | 59,450                                   |         |         |         |         |          |        |         |         |       |         |      | 50,940  |        |         |         |        |     |       |        |      |     
|                                                           |                                         |                            |                                          |         |         |         |         |          |        |         |         |       |         |      |         |        |         |         |        |     |       |        |      |     
|Total assets                                               |                                         | $                          | 601,854                                  |         |         |         |         |          |        |         |         |       |         | $    | 518,946 |        |         |         |        |     |       |        |      |     
|                                                           |                                         |                            |                                          |         |         |         |         |          |        |         |         |       |         |      |         |        |         |         |        |     |       |        |      |     
|                                                           | Interest-bearing liabilities:           |                            |                                          |         |         |         |         |          |        |         |         |       |         |      |         |        |         |         |        |     |       |        |      |      |     
|                                                           |                                         | Interest bearing deposits: |                                          |         |         |         |         |          |        |         |         |       |         |      |         |        |         |         |        |     |       |        |      |      |      |     
|                                                           |                                         | NOW accounts               |                                          | $       | 56,269  |         |         |          | 124    |         |         |       | 0.45    | %    |         | $      | 51,118  |         |        |     | 146   |        |      |      | 0.58 | %   
|                                                           |                                         | Money market               |                                          |         | 130,053 |         |         |          | 662    |         |         |       | 1.03    | %    |         |        | 127,917 |         |        |     | 825   |        |      |      | 1.30 | %   
|                                                           |                                         | Savings deposits           |                                          |         | 33,472  |         |         |          | 98     |         |         |       | 0.59    | %    |         |        | 29,144  |         |        |     | 111   |        |      |      | 0.77 | %   
|                                                           |                                         | Other time deposits        |                                          |         | 190,863 |         |         |          | 3,220  |         |         |       | 3.40    | %    |         |        | 141,060 |         |        |     | 3,007 |        |      |      | 4.30 | %   
|                                                           |                                         |                            |                                          |         |         |         |         |          |        |         |         |       |         |      |         |        |         |         |        |     |       |        |      |     
|Total interest-bearing deposits                            |                                         |                            | 410,657                                  |         |         |         | 4,104   |          |        |         | 2.02    | %     |         |      | 349,239 |        |         |         | 4,089  |     |       |        | 2.36 | %   
|                                                           | Other interest-bearing liabilities:     |                            |                                          |         |         |         |         |          |        |         |         |       |         |      |         |        |         |         |        |     |       |        |      |      |     
|                                                           | Notes payable                           |                            |                                          | 5,250   |         |         |         | 238      |        |         |         | 9.16  | %       |      |         | 5,250  |         |         |        | 238 |       |        |      | 9.16 | %   
|                                                           | Short-term borrowings and FHLB advances |                            |                                          | 18,091  |         |         |         | 123      |        |         |         | 1.37  | %       |      |         | 21,726 |         |         |        | 211 |       |        |      | 1.96 | %   
|                                                           | Trust preferred securities              |                            |                                          | 13,000  |         |         |         | 557      |        |         |         | 8.63  | %       |      |         | 13,000 |         |         |        | 571 |       |        |      | 8.85 | %   
|                                                           |                                         |                            |                                          |         |         |         |         |          |        |         |         |       |         |      |         |        |         |         |        |     |       |        |      |     
|Total interest-bearing liabilities                         |                                         |                            | 446,998                                  |         |         |         | 5,022   |          |        |         | 2.27    | %     |         |      | 389,215 |        |         |         | 5,109  |     |       |        | 2.65 | %   
|                                                           |                                         |                            |                                          |         |         |         |         |          |        |         |         |       |         |      |         |        |         |         |        |     |       |        |      |     
|Non-interest bearing liabilities and
stockholders equity: |                                         |                            |                                          |         |         |         |         |          |        |         |         |       |         |      |         |        |         |         |        |     |       |        |      |     
|                                                           | Demand deposits                         |                            |                                          | 112,560 |         |         |         |          |        |         |         |       |         |      |         | 94,605 |         |         |        |     |       |        |      |      |     
|                                                           | Other liabilities                       |                            |                                          | 7,201   |         |         |         |          |        |         |         |       |         |      |         | 5,359  |         |         |        |     |       |        |      |      |     

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##### Table of Contents



|                                                                |                      |          |         |         |         |       |         |          |        |         |         |       |         |   |         |        |  |   |        |  |  |  |      |   |  |  | 
|--------------------------------------------------------------- | -------------------- | -------- | ------- | ------- | ------- | ----- | ------- | -------- | ------ | ------- | ------- | ----- | ------- | - | ------- | ------ |  | - | ------ |  |  |  | ---- | - |  |  | 
|                                                                |                      |          |         |         | 2003    |       | 2002   
|                                                                |                      |          |         |         |         |       |        
|                                                                |                      |          |         |         | AVERAGE |       | INCOME/ |          | YIELDS |         | AVERAGE |       | INCOME/ |   | YIELDS 
|(Dollars in thousands)                                          |                      | BALANCES |         | EXPENSE |         | RATES |         | BALANCES |        | EXPENSE |         | RATES
|                                                                |                      |          |         |         |         |       |         |          |        |         |         |      
|                                                                | Stockholders equity |          |         | 35,095  |         |       |         |          |        |         |         |       |         |   |         | 29,767 |  |   |        |  |  |  |      |   | 
|                                                                |                      |          |         |         |         |       |         |          |        |         |         |       |         |   |         |        |  |   |        |  |  |  |      |  
|Total non-interest bearing liabilities and
stockholders equity |                      |          | 154,856 |         |         |       |         |          |        |         |         |       |         |   | 129,731 |        |  |   |        |  |  |  |      |  
|                                                                |                      |          |         |         |         |       |         |          |        |         |         |       |         |   |         |        |  |   |        |  |  |  |      |  
|Total liabilities and stockholders equity                      |                      | $        | 601,854 |         |         |       |         |          |        |         |         |       |         | $ | 518,946 |        |  |   |        |  |  |  |      |  
|                                                                |                      |          |         |         |         |       |         |          |        |         |         |       |         |   |         |        |  |   |        |  |  |  |      |  
|Interest rate spread (tax equivalent basis)                     |                      |          |         |         |         |       |         |          |        |         | 3.98    | %     |         |   |         |        |  |   |        |  |  |  | 3.96 | %
|                                                                |                      |          |         |         |         |       |         |          |        |         |         |       |         |   |         |        |  |   |        |  |  |  |      |  
|Net interest income (tax equivalent basis)                      |                      |          |         |         |         | $     | 11,798  |          |        |         |         |       |         |   |         |        |  | $ | 10,241 |  |  |  |      |  
|                                                                |                      |          |         |         |         |       |         |          |        |         |         |       |         |   |         |        |  |   |        |  |  |  |      |  
|Net interest margin (3) (tax equivalent basis)                  |                      |          |         |         |         |       |         |          |        |         | 4.39    | %     |         |   |         |        |  |   |        |  |  |  | 4.41 | %
|                                                                |                      |          |         |         |         |       |         |          |        |         |         |       |         |   |         |        |  |   |        |  |  |  |      |  



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

The table below details the components of the changes in net interest income.
For each major category of interest-earning assets and interest-bearing
liabilities, information is provided with respect to changes due to average
volumes, changes due to rates, with the changes in both volumes and rates
allocated to these two categories based on the proportionate absolute changes
in each category.

|                                         |                        |         |                           |         |  |            |        |        |   |   |       |       |  
|---------------------------------------- | ---------------------- | ------- | ------------------------- | ------- |  | ---------- | ------ | ------ | - | - | ----- | ----- | -
|                                         |                        |         | 2003 compared to 2002 (1)
|                                         |                        |         | Due to changes in        
|                                         |                        |         |                          
|                                         |                        |         |                           |         |  |            |        |        |   |   | Net  
|(In
thousands)                           |                        | Average |                           | Average |  | Increase  
|INTEREST INCOME                          |                        | Volume  |                           | Rate    |  | (Decrease)
|                                         |                        |         |                           |         |  |           
|Loans (2)                                |                        | $       | 2,967                     |         |  | $          | (1,120 | )      |   | $ | 1,847 |      
|Investment Securities (2)                |                        |         | (164                      | )       |  |            | (242   | )      |   |   | (406  | )    
|Interest bearing deposits in other banks |                        |         | (1                        | )       |  |            | (1     | )      |   |   | (2    | )    
|Federal Home Loan Bank Stock             |                        |         | (2                        | )       |  |            | (9     | )      |   |   | (11   | )    
|Federal Funds sold                       |                        |         | 159                       |         |  |            | (117   | )      |   |   | 42    |      
|                                         |                        |         |                           |         |  |            |        |        |   |   |       |      
|                                         | Total interest income  |         |                           | 2,959   |  |            |        | (1,489 | ) |   |       | 1,470 |  
|                                         |                        |         |                           |         |  |            |        |        |   |   |       |      
|INTEREST EXPENSE                         |                        |         |                           |         |  |            |        |        |   |   |       |      
|NOW Accounts                             |                        |         | 34                        |         |  |            | (56    | )      |   |   | (22   | )    
|Money Market                             |                        |         | 40                        |         |  |            | (203   | )      |   |   | (163  | )    
|Savings deposits                         |                        |         | 35                        |         |  |            | (48    | )      |   |   | (13   | )    
|Other time deposits                      |                        |         | 1,728                     |         |  |            | (1,515 | )      |   |   | 213   |      
|Notes payable                            |                        |         |                          |         |  |            |       |        |   |   |      |      
|Trust preferred securities               |                        |         |                          |         |  |            | (14    | )      |   |   | (14   | )    
|Short-term borrowings and FHLB advances  |                        |         | (31                       | )       |  |            | (57    | )      |   |   | (88   | )    
|                                         |                        |         |                           |         |  |            |        |        |   |   |       |      
|                                         | Total interest expense |         |                           | 1,806   |  |            |        | (1,893 | ) |   |       | (87   | )
|                                         |                        |         |                           |         |  |            |        |        |   |   |       |      
|Change in net interest income            |                        | $       | 1,153                     |         |  | $          | 404    |        |   | $ | 1,557 |      
|                                         |                        |         |                           |         |  |            |        |        |   |   |       |      



|(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
a federal tax rate of 34% in adjusting tax exempt interest on tax exempt
investment securities and loans to a fully taxable basis.

PROVISION FOR LOAN LOSSES

The provision for loan losses represents the charge to income necessary to
adjust the allowance for loan losses to an amount that represents managements
assessment of the estimated probable credit losses inherent in TIB Financial
Corps loan portfolio which have been incurred at each balance sheet date.

The provision for loan losses increased $322,000 or 121.1% to $588,000 in the
first six months of 2003 compared to $266,000 in the comparable prior year
period. The higher provision for loan losses in 2003 was attributable to
growth in the loan portfolio and higher net charge-offs. Net charge-offs were
$305,960 during the six months ended June 30, 2003, compared to $200,279 for
the same period in 2002. Management will continue to monitor the credit
quality of the lending portfolio and will

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##### Table of Contents



recognize additional provisions in
the future as necessary, in the opinion of management, to maintain the
allowance for loan losses at an appropriate level.

NON-INTEREST INCOME

Non-interest income for the first six months of 2003 was $7,144,007. This
represents a $1,013,095 or 16.5% increase over the prior year period which
totaled $6,130,912. The increase in non-interest income is attributable to an
increase of $80,607 in service charges on deposit accounts; an increase of
$139,054 in merchant bank card processing income; a $64,291 increase in gain on
sale of government guaranteed loans; a $537,262 increase in fees on mortgage
loans sold; a $43,105 increase in commissions on sales by Keys
Insurance Agency; a
$54,832 increase in retail investment services; a $202,393 increase in gain on
sale of investment in ERAS Joint Venture; a $24,341 increase in other income;
offset by a $132,790 decrease in net investment security gains.

The increases in merchant bank card processing income, fees on mortgage loans
sold, retail investment services, and commissions on sales by Keys
Insurance Agency
are primarily a result of volume increases. On May 29, 2003, we sold our
remaining interest in ERAS Joint Venture for $326,667. We recognized a pretax
gain of approximately $202,000 on this transaction. The net gain from the sale
of investment securities will vary based upon the sales and calls of the
individual securities in the investment portfolio. In 2002, the gain was
primarily the result of the sale of two corporate securities which netted a
gain of approximately $65,000 in the first quarter of 2002 and the sale of two
agency securities in the second quarter of 2002 that netted a gain of
approximately $64,000. The amount in 2003 relates to the gain on certain
calls of investment securities in the first quarter. Gain on sale of
government guaranteed loans result from a relatively small number of
transactions and, therefore, the revenue recognition from these transactions
can vary considerably depending on the number of loans sold and the dollar
amount of the transactions. There was one loan sold in the first half of 2002
and one loan sold in the first half of 2003.

NON-INTEREST EXPENSE

Non-interest expense for the first six months of 2003 was $14,464,814. This
represents a $1,965,568 or 15.7% increase over the prior year period which
totaled $12,499,246. The increase in non-interest expense is attributable to
salaries and employee benefits increasing $1,214,815, net occupancy expense
increasing $298,629, and other expense increasing $452,124. A portion of these
increases are a result of the continuing expansion in the Southwest Florida
market. The Bank added two new locations there in the second half of 2001 and
one new location was added in the fourth quarter of 2002. The addition of
these facilities and their continued growth has caused the Bank to hire
additional personnel and incur additional operating costs. Opening new branch
facilities is dilutive to earnings in the near term but is a factor in
achieving sustainable long-term growth. Further, additional staffing has been
required to handle the growing lending portfolios, increased customer activity
and compliance with new government regulations, such as the Patriot Act. This
includes additional staffing for the origination and servicing of indirect
loans which began in the second quarter of 2002. Another reason for the
salaries and employee benefits increase is the higher commission expense that
resulted from increased revenues from non-interest income sources, such as fees
on mortgage loans sold, commissions on sales by Keys Insurance Agency, retail
investment services, and gain on sale of government guaranteed loans.

INCOME TAXES

The change in income tax expense is primarily attributable to the growth in
income before income taxes. The provision for income taxes totaled $1,337,200,
for an effective tax rate of 35.1%, for the six months ended June 30, 2003, and
$1,232,800, for an effective tax rate of 35.0%, for the six months ended June
30, 2002.

BALANCE SHEET

Total assets at June 30, 2003 were $633,202,891, up 11.6% from total assets of
$567,148,646 at December 31, 2002. Loans net of deferred loan costs increased
$31,876,487 to $474,404,421 for the first six months of 2003 from year end
2002. Also, in the same period, federal funds sold increased $40,212,000, and
investment securities decreased $6,871,919.

Asset growth was primarily funded by an increase in deposits of $70,166,140, or
14.5%. At June 30, 2003, the Company had $5,254,988 in short-term borrowings
compared to $4,578,959 at December 31, 2002. Short-term borrowings consist of
securities sold under agreements to repurchase and Treasury tax deposits.
Advances from the Federal Home Loan Bank totaled $10 million at June 30, 2003
as compared to $20 million at December 31, 2002.

Shareholders equity totaled $40,353,779 at June 30, 2003, increasing
$6,847,702 from December 31, 2002. In June 2003, the Company completed a
private placement of 280,653 shares of its common stock to individuals who
qualify as accredited investors under the federal and state securities laws.
Residents of Monroe County, Southwest Florida and Homestead/Florida City
purchased shares, along with three members of the Companys Board of Directors
and an executive officer. The private placement raised approximately $4.3
million in capital at a sales price of $15.64 per share which was priced at 95%
of the average closing bid price for the shares during the five consecutive
trading days ending on the fifth business day prior to the

16



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##### Table of Contents



commencement of the
offering. The shares of common stock in this offering were not registered
under the Securities Act of 1933, or any state securities laws pursuant to the
private offering exemptions under Section 4(2) of the Securities Act of 1933
and other state securities laws. The common stock may not be resold or
otherwise transferred unless subsequently registered under the 1933 Act and
other applicable state securities law, or pursuant to an exemption from
applicable state and federal registration requirements.

Book value per share increased to $9.16 at June 30, 2003 from $8.30 at December
31, 2002. The Company paid a quarterly dividend of $0.11 per share in the
first and second quarter of 2003 and $0.1075 per share in the first and second
quarter of 2002.

NON-PERFORMING ASSETS

Non-performing assets include non-accrual loans, accruing loans contractually
past due 90 days or more, restructured loans and other real estate. Loans are
placed on non-accrual status when management has concerns relating to the
ability to collect the loan principal and interest and generally when such
loans are 90 days or more past due. A loan is considered impaired if it is in
a nonaccruing status. Non-performing assets for the periods ended June 30,
2003 and December 31, 2002 were as follows:

|                                                       |  |               |           |                   |  |   |           |  
|------------------------------------------------------ |  | ------------- | --------- | ----------------- |  | - | --------- | -
|                                                       |  | June 30, 2003 |           | December 31, 2002
|                                                       |  |               |           |                  
|Loans on nonaccrual                                    |  | $             | 651,511   |                   |  | $ | 545,523   |  
|Loans 90 days past due (a)                             |  |               |          |                   |  |   |          |  
|Other real estate owned (b)                            |  |               | 411,164   |                   |  |   | 550,000   |  
|Other assets (b)                                       |  |               | 2,488,180 |                   |  |   | 2,519,022 |  
|                                                       |  |               |           |                   |  |   |           |  
|Total non-performing assets                            |  | $             | 3,550,855 |                   |  | $ | 3,614,545 |  
|                                                       |  |               |           |                   |  |   |           |  
|Percentage of non-performing assets
to total loans (c) |  |               | 0.75      | %                 |  |   | 0.81      | %



| |  | (a) Loans 90 days past due exclude loans on nonaccrual that are reported
separately.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  | (b) The Bank has made a loan originally totaling $10,000,000 to
construct a lumber mill in northern Florida. Of this amount, $6,400,000 had
been sold by the Bank to other lenders. The loan was partially guaranteed as
to principal and interest by the U.S. Department of Agriculture (USDA). In
addition to business real estate and equipment, the loan 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. At
December 31, 2000, the loan was past due greater than 90 days but was still
maintained as an accruing loan because of the USDA guarantee and collateral
value. During 2001, upon completion of foreclosure on the underlying
collateral, the non-guaranteed portion of this loan and interest accrued
through the foreclosure date was reclassified into other real estate
($550,000) and other assets (approximately $1,886,000) based on the fair
value of the underlying-collateral. The portion of this loan guaranteed by
the USDA was approximately $1.6 million at June 30, 2003 and December 31,
2002, and is accruing interest. Accrued interest on this loan totals
approximately $548,000 and $505,000 at June 30, 2003 and December 31, 2002,
respectively.
|
| |  | The Bank has been pursuing a sale of the property and equipment and has
incurred various expenditures. The Bank has capitalized those liquidation
costs and protective advances which it expects will be fully reimbursed by
the USDA. Other real estate recorded on the Banks books totaled $411,164
and $550,000 at June 30, 2003 and December 31, 2002, respectively. The non
guaranteed principal and interest ($1,961,000 at June 30, 2003 and December
31, 2002) and the capitalized liquidation costs and protective advance costs
totaling approximately $527,000 and $558,000 at June 30, 2003 and December
31, 2002, respectively are included as other assets in the table above.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|
| |  | The Bank has sold certain pieces of equipment associated with the lumber mill
property. Proceeds from these sales were used to reduce the other real
estate amount and liquidation cost amounts recorded on the Banks books. In
the second quarter of 2003, the Bank wrote down the carrying amount of the
other real estate by $94,000 based upon anticipated proceeds from the sale of
the property and remaining equipment.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|
| |  | Florida law requires a bank to liquidate or charge off repossessed real
property within five years, and repossessed personal property within six
months. The Bank was awarded title to the real property on June 12, 2001,
and an adjudicated interest
in the owners trust proceeds. The time constraints imposed by Florida law
required that the personal property be disposed of or charged off by December
2001. The Bank applied to the State of Florida for an extension to carry the
personal property on the Banks books and was granted an extension to carry
the personal property on its books until June 11, 2003. Since the property
had not been liquidated as of June 11th, the Bank charged-off the non
guaranteed principal and interest totaling $1,961,000 at June 30, 2003, for
regulatory purposes. Since we believe this amount is ultimately realizable,
we did not write off this amount for financial statement purposes under
generally acceptable accounting principles.                                                                                                                                                                                                                                                                                                           

17



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##### Table of Contents





| |  | (c) For the purpose of this computation, total loans include other real
estate owned and other assets.
| |  | ------------------------------------------------------------------------------------------------------

The allowance for loan losses amounted to $4,554,539 and $4,272,499 at June 30,
2003 and December 31, 2002, respectively.

The Companys formalized process for assessing the adequacy of the allowance
for loan losses and the resultant need, if any, for periodic provisions to the
allowance charged to income, includes both individual loan analyses and loan
pool analyses. Individual loan analyses are periodically performed on loan
relationships of a significant size, or when otherwise deemed necessary, and
primarily encompass commercial real estate and other commercial loans. The
result is that commercial real estate loans and commercial loans are divided
into the following risk categories: Pass, Special Mention and Substandard or
worse. When appropriate a specific reserve will be established for individual
loans. Otherwise, the Company allocates an allowance for each risk category.
The allocations are based on factors including economic conditions (local,
national and global), strength of the Companys management, recent trends in
loan loss history, and concentrations of credit.

Home equity loans, residential loans and consumer loans generally are not
analyzed individually. These loans are grouped into pools and assigned risk
categories based on their current payment status and managements assessment of
risk inherent in the various types of loans. As above, when appropriate, a
specific reserve will be established for individual loans. Otherwise, the
Company allocates an allowance for each loan classification. The allocations
are based on the same factors mentioned above.

Based on an analysis performed by management at June 30, 2003, the allowance
for loan losses is considered to be adequate to cover loan losses in the
portfolio as of that date. However, because of the inherent uncertainty of the
assumptions we use in our loan analyses, management cannot assure that loan
losses in future periods will not exceed the allowance for loan losses or that
additional allocations to the allowance will not be required.

LIQUIDITY

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

In addition to maintaining a stable core deposit base, TIB Financial Corps
banking subsidiary maintains adequate liquidity primarily through the use of
investment securities and unused borrowing capacity. The Bank has invested in
Federal Home Loan Bank stock for the purpose of establishing credit lines with
the Federal Home Loan Bank. The credit availability to the Bank is equal to 14
percent of the Banks total assets as reported on the most recent quarterly
financial information submitted to the regulators. The credit availability
approximated $88.1 million at June 30, 2003, under which $10 million was
outstanding. Any advances are secured by the Banks one-to-four family
residential mortgage loans.

The Bank has an unsecured overnight federal funds purchased accommodation up to
a maximum of $7.5 million from its principal correspondent bank. The Bank also
has securities sold under agreements to repurchase with commercial account
holders whereby the Bank sweeps the customers accounts on a daily basis and
pays interest on these amounts. These agreements are collateralized by
investment securities chosen by the Bank.

ASSET AND LIABILITY MANAGEMENT

Closely related to liquidity management is the management of interest-earning
assets and interest-bearing liabilities. The Company manages its rate
sensitivity position to avoid wide swings in net interest margins and to
minimize risk due to changes in interest rates.

The Companys interest rate sensitivity position at June 30, 2003 is presented
in the table below:

|                                 |  |          |         |        |  |         |        |        |  |        |        |       |  |   |         |  |  |   |        |  |  |   |         | 
|-------------------------------- |  | -------- | ------- | ------ |  | ------- | ------ | ------ |  | ------ | ------ | ----- |  | - | ------- |  |  | - | ------ |  |  | - | ------- | 
|                                 |  | 3 months |         | 4 to 6 |  | 7 to 12 |        | 1 to 5 |  | Over 5 |        |       |  |  
|(Dollars in thousands)           |  | or less  |         | Months |  | Months  |        | years  |  | Years  |        | Total
|                                 |  |          |         |        |  |         |        |        |  |        |        |      
|Interest-earning assets:         |  |          |         |        |  |         |        |        |  |        |        |       |  |   |         |  |  |   |        |  |  |   |         | 
|Loans                            |  | $        | 205,703 |        |  | $       | 25,917 |        |  | $      | 34,198 |       |  | $ | 143,072 |  |  | $ | 64,229 |  |  | $ | 473,119 | 
|Investment securities-taxable    |  |          | 2,323   |        |  |         | 10,191 |        |  |        |       |       |  |   | 11,058  |  |  |   | 15,066 |  |  |   | 38,638  | 
|Investment securities-tax exempt |  |          | 126     |        |  |         | 237    |        |  |        |       |       |  |   | 2,021   |  |  |   | 6,374  |  |  |   | 8,758   | 
|Federal Home Loan Bank stock     |  |          | 1,159   |        |  |         |       |        |  |        |       |       |  |   |        |  |  |   |       |  |  |   | 1,159   | 
|Federal funds sold               |  |          | 45,884  |        |  |         |       |        |  |        |       |       |  |   |        |  |  |   |       |  |  |   | 45,884  | 

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|                                       |  |          |         |        |  |         |        |        |  |        |         |       |  |   |         |   |  |   |         |   |  |   |         |  
|-------------------------------------- |  | -------- | ------- | ------ |  | ------- | ------ | ------ |  | ------ | ------- | ----- |  | - | ------- | - |  | - | ------- | - |  | - | ------- | -
|                                       |  | 3 months |         | 4 to 6 |  | 7 to 12 |        | 1 to 5 |  | Over 5 |         |       |  |  
|(Dollars in thousands)                 |  | or less  |         | Months |  | Months  |        | years  |  | Years  |         | Total
|                                       |  |          |         |        |  |         |        |        |  |        |         |      
|Interest bearing deposit in other
bank |  |          | 459     |        |  |         |       |        |  |        |        |       |  |   |        |   |  |   |        |   |  |   | 459     |  
|                                       |  |          |         |        |  |         |        |        |  |        |         |       |  |   |         |   |  |   |         |   |  |   |         |  
|Total interest-bearing assets          |  |          | 255,654 |        |  |         | 36,345 |        |  |        | 34,198  |       |  |   | 156,151 |   |  |   | 85,669  |   |  |   | 568,017 |  
|                                       |  |          |         |        |  |         |        |        |  |        |         |       |  |   |         |   |  |   |         |   |  |   |         |  
|Interest-bearing liabilities:          |  |          |         |        |  |         |        |        |  |        |         |       |  |   |         |   |  |   |         |   |  |   |         |  
|NOW accounts                           |  |          | 60,752  |        |  |         |       |        |  |        |        |       |  |   |        |   |  |   |        |   |  |   | 60,752  |  
|Money Market                           |  |          | 126,106 |        |  |         |       |        |  |        |        |       |  |   |        |   |  |   |        |   |  |   | 126,106 |  
|Savings Deposits                       |  |          | 35,537  |        |  |         |       |        |  |        |        |       |  |   |        |   |  |   |        |   |  |   | 35,537  |  
|Other time deposits                    |  |          | 32,396  |        |  |         | 24,491 |        |  |        | 45,432  |       |  |   | 107,890 |   |  |   | 13      |   |  |   | 210,222 |  
|Notes payable                          |  |          |        |        |  |         |       |        |  |        |        |       |  |   |        |   |  |   | 5,250   |   |  |   | 5,250   |  
|Trust preferred securities             |  |          | 5,000   |        |  |         |       |        |  |        |        |       |  |   |        |   |  |   | 8,000   |   |  |   | 13,000  |  
|Other borrowings                       |  |          | 15,255  |        |  |         |       |        |  |        |        |       |  |   |        |   |  |   |        |   |  |   | 15,255  |  
|                                       |  |          |         |        |  |         |        |        |  |        |         |       |  |   |         |   |  |   |         |   |  |   |         |  
|Total interest-bearing liabilities     |  |          | 275,046 |        |  |         | 24,491 |        |  |        | 45,432  |       |  |   | 107,890 |   |  |   | 13,263  |   |  |   | 466,122 |  
|                                       |  |          |         |        |  |         |        |        |  |        |         |       |  |   |         |   |  |   |         |   |  |   |         |  
|Interest sensitivity gap               |  | $        | (19,392 | )      |  | $       | 11,854 |        |  | $      | (11,234 | )     |  | $ | 48,261  |   |  | $ | 72,406  |   |  | $ | 101,895 |  
|                                       |  |          |         |        |  |         |        |        |  |        |         |       |  |   |         |   |  |   |         |   |  |   |         |  
|Cumulative interest sensitivity gap    |  | $        | (19,392 | )      |  | $       | (7,538 | )      |  | $      | (18,772 | )     |  | $ | 29,489  |   |  | $ | 101,895 |   |  | $ | 101,895 |  
|                                       |  |          |         |        |  |         |        |        |  |        |         |       |  |   |         |   |  |   |         |   |  |   |         |  
|Cumulative sensitivity ratio           |  |          | (3.4    | )%     |  |         | (1.3   | )%     |  |        | (3.3    | )%    |  |   | 5.2     | % |  |   | 17.9    | % |  |   | 17.9    | %
|                                       |  |          |         |        |  |         |        |        |  |        |         |       |  |   |         |   |  |   |         |   |  |   |         |  

The Company is cumulatively liability sensitive thru the one year time period,
and asset sensitive in the over one year timeframes above. Certain liabilities
such as NOW and passbook savings accounts, while technically subject to
immediate repricing in response to changing market rates, historically do not
reprice as quickly nor to the extent as other interest sensitive accounts.
Accordingly, if market interest rates should decrease, it is anticipated that
the net interest margin would decrease. Because of non-interest bearing
liabilities, total interest-earning assets are substantially greater than the
total interest-bearing liabilities and therefore it is anticipated that over
time the effects on net interest income from changes in asset yield will be
greater than the change in expense from liability cost. Therefore, if rates
increase it is anticipated that the net interest margin would over time
increase and this is particularly true over longer time horizons since the
Company has more total assets subject to rate changes than total liabilities
that are rate sensitive.

Even in the near term, the $18.7 million one year cumulative negative
sensitivity gap exaggerates the probable effects on earnings in a rising rate
environment for two reasons. First, the liabilities subject to repricing are
predominately not indexed to any specific market rate and therefore offer the
Company the opportunity to delay or diminish any rate repricings. Further, in
this current rate environment, the Bank has been originating loans with
interest rate floors. The effect of this has been to decrease the volatility
of net interest margin and decrease asset sensitivity due to the fact that
these loans behave similar to fixed rate loans in periods over a significant
range of interest rate changes.

Interest-earning assets and other time deposits are presented based on their
contractual terms. It is anticipated that run off in any deposit category will
be approximately offset by new deposit generation. Since the Company has
experienced steady growth in deposits, no net run off in any deposit category
is assumed in the interest rate sensitivity table. It is the Companys policy
to maintain its cumulative one year gap ratio in the 20% to +10% range. At
June 30, 2003, the Company was within this range with a one year cumulative
sensitivity ratio of (3.3)%.

See also Item 3, Quantitative and Qualitative Disclosures About Market Risk.

COMMITMENTS

The Bank is party to financial instruments with off-balance-sheet risk in the
normal course of business to meet the financing needs of its customers. These
financial instruments include commitments to extend credit and standby letters
of credit. These instruments involve, to varying degrees, elements of credit
and interest rate risk in excess of the amount recognized in the consolidated
balance sheets.

The Banks exposure to credit loss in the event of nonperformance by the
customer on the financial instrument for commitments to extend credit and
standby letters of credit is represented by the contractual amounts of those
instruments. The
Bank uses the same credit policies in making commitments and conditional
obligations as it does for on-balance-sheet instruments.

Commitments to extend credit are agreements to lend to a customer as long as
there is no violation of any condition established in the contract. Commitments
generally have fixed expiration dates or other termination clauses and may
require the payment

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of a fee. At June 30, 2003, total commitments to extend
credit were approximately $67.3 million in unfunded loan commitments.

Standby letters of credit are conditional commitments issued by the Bank to
guarantee the performance of a customer to a third party. The credit risk
involved in issuing letters of credit is essentially the same as that involved
in extending loan facilities to customers. Since most of the letters of credit
are expected to expire without being drawn upon, they do not necessarily
represent future cash requirements. At June 30, 2003, commitments under standby
letters of credit aggregated approximately $1.4 million.

The Bank evaluates each customers creditworthiness on a case-by-case basis.
The amount of collateral obtained, if deemed necessary by the Bank upon
extension of credit, is based on managements credit evaluation of the
borrower. Collateral held varies but may include accounts receivable,
inventory, property, plant and equipment, residential real estate and
income-producing commercial properties on those commitments for which
collateral is deemed necessary.

The Company believes the likelihood of the unfunded loan commitments and
unfunded letters of credit either needing to be totally funded or funded at the
same time is low. However, should significant funding requirements occur, we
have available borrowing capacity from various sources as discussed in the
Liquidity section above.




Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

Market risk is the risk that a financial institutions earnings and capital,
or its ability to meet its business objectives, will be adversely affected by
movements in market rates or prices such as interest rates, foreign exchange
rates, equity rates, equity prices, credit spreads and/or commodity prices.
The Company has assessed its market risk as predominately interest rate risk.

The following interest rate sensitivity analysis information as of June 30,
2003 was developed using simulation analysis of the Companys sensitivity to
changes in net interest income under varying assumptions for changes in market
interest rates. Specifically, the model derives expected interest income and
interest expense resulting from an immediate and parallel shift in the yield
curve in the amounts shown.

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

This analysis intentionally exaggerates interest sensitivity. For the sake of
simplicity and comparability, an immediate change in rates is assumed.
However, any significant change in actual market rates would probably be phased
in over an extended period of time. This phase in would reduce the net
interest income effects for any absolute change in rates. Also, the Company
has been originating adjustable rate commercial loans with interest rate floors
that are currently at rates higher than the index and margin on the loans would
indicate. An example would be a loan at Prime plus 1% but with a 7.0% floor.
The Company currently has in excess of $151 million of these types of loans
where the loan rates are at the floors. The effects of this are twofold.
First, this has benefited our margins currently since we have assets earning
yields higher than would be the case absent the floor rates. Second, in a
declining rate environment and in a limited rising rate environment those
adjustable rate loans act like fixed rate loans. This limits the Companys
loss of interest income when rates decline but does constrain income gains in a
rising rate market. In general, having this significant amount of loans at
their floors reduces the Companys overall rate sensitivity.

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

|                                                 |  |                         |        |                |  |                         |        |        |  |       |        |  |  |   |        |   |  |   |        |  
|------------------------------------------------ |  | ----------------------- | ------ | -------------- |  | ----------------------- | ------ | ------ |  | ----- | ------ |  |  | - | ------ | - |  | - | ------ | -
|                                                 |  | Interest Rates Decrease |        | Interest Rates |  | Interest Rates Increase
|(Dollars in thousands)                           |  | 200 BP                  |        | 100 BP         |  | Remain Constant         |        | 100 BP |  | 200BP
|                                                 |  |                         |        |                |  |                         |        |        |  |      
|2003 Interest Income                             |  | $                       | 31,969 |                |  | $                       | 34,006 |        |  | $     | 36,192 |  |  | $ | 38,238 |   |  | $ | 40,624 |  
|2003 Interest Expense                            |  |                         | 6,651  |                |  |                         | 7,929  |        |  |       | 9,615  |  |  |   | 12,049 |   |  |   | 14,483 |  
|                                                 |  |                         |        |                |  |                         |        |        |  |       |        |  |  |   |        |   |  |   |        |  
|Net Interest Income                              |  |                         | 25,318 |                |  |                         | 26,077 |        |  |       | 26,577 |  |  |   | 26,189 |   |  |   | 26,141 |  
|                                                 |  |                         |        |                |  |                         |        |        |  |       |        |  |  |   |        |   |  |   |        |  
|Change in net income
after tax vs
constant rates |  | $                       | (786   | )              |  | $                       | (312   | )      |  |       |        |  |  | $ | (242   | ) |  | $ | (272   | )

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Item 4. CONTROLS AND PROCEDURES

Evaluation of disclosure controls and procedures

The Company maintains controls and procedures designed to ensure that
information required to be disclosed in the reports that the Company files or
submits under the Securities Exchange Act of 1934 is recorded, processed,
summarized and reported within the time periods specified in the rules and
forms of the Securities and Exchange Commission. Based upon their evaluation of
those controls and procedures performed within 90 days of the filing date of
this report, the Chief Executive Officer and Chief Financial Officer of the
Company concluded that the Companys disclosure controls and procedures were
adequate. No significant deficiencies or material weaknesses in the design or
operation of internal controls which could adversely affect the Companys
ability to record, process, summarize, and report financial data have been
identified.

Changes in internal controls

The Company made no significant changes in its internal controls or in other
factors that could significantly affect these controls subsequent to the date
of the evaluation of those controls by the Chief Executive Officer and Chief
Financial Officer; including any corrective actions with regard to significant
deficiencies and material weaknesses. As we continue to expand our indirect
lending program, management has continued to improve and strengthen its
controls surrounding this area.

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##### Table of Contents






Part II. OTHER INFORMATION




Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS



| |  |  | At the Annual Meeting of Shareholders of TIB Financial Corp. held May 27,
2003, ballot totals for the reelection of Directors were as follows:
| |  |  | ----------------------------------------------------------------------------------------------------------------------------------------------

|                         |  |     |           |          |  |  |       | 
|------------------------ |  | --- | --------- | -------- |  |  | ----- | 
|DIRECTORS                |  | FOR |           | WITHHELD
|                         |  |     |           |         
|Gretchen K. Holland      |  |     | 3,583,293 |          |  |  | 4,471 | 
|John G. Parks, Jr.       |  |     | 3,584,685 |          |  |  | 3,079 | 
|Marvin F. Schindler      |  |     | 3,584,685 |          |  |  | 3,079 | 
|Otis T. Wallace          |  |     | 3,584,685 |          |  |  | 3,079 | 
|Millard J. Younkers, Jr. |  |     | 3,584,685 |          |  |  | 3,079 | 



| |  |  | Total shares voted were 3,587,764 which represent 87.2% of the outstanding
shares.                                                                                                                                                                                                                                          
| |  |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  |  | The directors continuing in office following the meeting were: Edward V.
Lett, Derek D. Martin-Vegue, Joseph H. Roth, Jr., Robert A. Zolten, M.D.,
Thomas J. Longe, Gretchen K. Holland, Marvin F. Schindler, Millard J.
Younkers, Jr., Armando J. Henriquez, John G. Parks, Jr., Otis T. Wallace,
and James R. Lawson, III.
|
| |  |  | Following the Annual Meeting, the Board of Directors appointed Dr. Paul O.
Jones, Jr. to serve on the Companys Board of Directors.                                                                                                                                                                                         

Item 5. OTHER INFORMATION



|
|
|




Item 6. EXHIBITS AND REPORTS ON FORM 8-K



| | (a) |  | Exhibits
| | --- |  | --------
|

| |  |  | Exhibit 31.1  Chief
Executive Officers certification required under Section 302 of
Sarbanes-Oxley Act of 2002
| |  |  | ---------------------------------------------------------------------------------------------------------------
|
| |  |  | Exhibit 31.2  Chief
Financial Officers certification required
under Section 302 of Sarbanes-Oxley Act of 2002
|
| |  |  | Exhibit 32.1  Chief
Executive Officers certification required
under Section 906 of Sarbanes-Oxley Act of 2002
|
| |  |  | Exhibit 32.2  Chief
Financial Officer's certification required
under Section 906 of Sarbanes-Oxley Act of 2002
|
| |  |  | Exhibit 99.1  Report of
Independent Certified Public Accountants                                              
|

| | (b) |  | Reports on Form 8-K
| | --- |  | -------------------
|

| |  |  | On April 28, 2003, the Company issued a press release announcing
certain financial results and additional information related to its
first quarter earnings.                                                                                                               
| |  |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  |  | On May 29, 2003, the Company issued a press release announcing the
sale of its remaining ownership interest in ERAS Joint Venture LLP.                                                                                                                                     
|
| |  |  | On June 10, 2003, the Company reported that it had terminated the
services of BDO Seidman, LLP as independent auditors and at the same
time selected the accounting firm of Crowe Chizek and Company, LLC
as independent auditors for the Company for the 2003 fiscal year.
|
| |  |  | On June 16, 2003, the Company filed a copy of BDO Seidman, LLPs
letter to the SEC regarding change in auditors.                                                                                                                                                           
|
| |  |  | On June 20, 2003, the Company amended its June 10, 2003, 8K filing
to indicate that the Companys Board of Directors had dismissed BDO
Seidman, LLP as independent auditors for the Company.                                                                               
|
| |  |  | On June 20, 2003, the Company issued a press release announcing that
it had sold 280,653 shares of Common Stock on a private placement
basis pursuant to applicable exemptions under the federal and state
securities laws.                                                
|
| |  |  | On July 28, 2003, the Company issued a press release announcing
certain financial results and additional information related to its
second quarter earnings.                                                                                                               

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SIGNATURES

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

|                    |  |                                                     
|------------------- |  | ----------------------------------------------------
|                    |  | TIB FINANCIAL CORP.                                 
|                    |  | /s/Edward V. Lett                                   
|                    |  |                                                     
|Date:August 8, 2003 |  | Edward V. Lett                                      
|                    |  | President and Chief Executive Officer               
|                    |  |                                                     
|                    |  | /s/David P. Johnson                                 
|                    |  |                                                     
|                    |  | David P. Johnson                                    
|                    |  | Executive Vice President and Chief Financial Officer

23