----

----

----

----

| FLORIDA                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                              | 65-0655973                                |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------|
| (State      or other jurisdiction of incorporation or organization)                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                              | (I.R.S.      Employer Identification No.) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                              |                                      |
| 599      9th      STREET NORTH, SUITE 101, NAPLES, FLORIDA 34102-5624                                                                                                                                                                                                                                                                                                                                                                                                    |
| (Address      of principal executive offices) (Zip Code)                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                              |                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | (239)      263-3344                                                                                                                               |                                      |
| (Registrant’s      telephone number, including area code)                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                              |                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Not      Applicable                                                                                                                               |                                      |
| (Former      name, former address and former fiscal year, if changed since last      report)                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                              |                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                              |                                      |
| Indicate      by check mark whether the registrant (1) has filed all reports required to      be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934      during the preceding 12 months (or for such shorter period that the      registrant was required to file such reports), and (2) has been subject to      such filing requirements for the past 90 days.  TYes   £No                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Indicate      by check mark whether the registrant has submitted electronically and      posted on its corporate Web site, if any, every Interactive Data File      required to be submitted and posted pursuant to Rule 405 of Regulation S-T      (§232.405 of this chapter) during the preceding 12 months (or for such      shorter period that the registrant was required to submit and post such      files).  £Yes   £No |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                              |                                      |
| Indicate      by check mark whether the registrant is a large accelerated filer, an      accelerated filer, a non-accelerated filer, or a smaller reporting      company. See definitions of “accelerated filer”, “ large accelerated      filer” and  “smaller reporting company” in Rule 12b-2 of the      Exchange Act (Check one):                                                                                     |
| £ Large      accelerated filer                                                                                                                                                                                                                                                                                                                                                                                                                                      | T      Accelerated filer                                                                                                                          |                                      |
|                     £      Non-accelerated filer                                                                                                                                                                                                                                                                                                                |                   £ Smaller      reporting company |                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                              |                                      |
| Indicate      by check mark whether the registrant is a shell company (as defined in      Rule 12b-2 of the Exchange Act).  £Yes    TNo                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                              |                                      |
| Indicate      the number of shares outstanding of each of the issuer’s classes of common      stock, as of the latest practicable date:                                                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                              |                                      |
| Common      Stock, $0.10 Par Value                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                              | 14,602,069                                |
| Class                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                              | Outstanding      as of April 30, 2009     |

----

Table of Contents

INDEX

| PART I.  FINANCIAL      INFORMATION           |           |
|--------------------------------------------------------------|----------------|
|                                                         | ITEM 1.   | FINANCIAL STATEMENTS  | 3 |
|                                                         | ITEM 2.   | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION      AND RESULTS OF OPERATIONS  | 14 |
|                                                         | ITEM 3.   | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET      RISK  | 25 |
|                                                         | ITEM 4.   | CONTROLS AND PROCEDURES  | 26 |
|                                                         |           |   |   |
|  PART II.  OTHER      INFORMATION   |           |
|                                                         | ITEM 1A.  | RISK FACTORS  | 27 |
|                                                         | ITEM 5.   | OTHER INFORMATION  | 27 |
|                                                         | ITEM 6.        | EXHIBITS | 27 |
|                                                         |           |   |   |

----

Table of Contents

Item 1.

| TIB      FINANCIAL CORP.CONSOLIDATED      BALANCE SHEETS(Dollars      in thousands, except per share data)                                             |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                   |   | March      31, 2009 |   |   | December      31, 2008 |   |
|                                                                                                                                                   |   | (Unaudited) |   |   |   |   |
| Assets                                                                                                                                                 |   |   |   |   |   |   |
| Cash      and due from banks                                                                                                                           |   | $ | 37,714 |   |   | $ | 69,607 |   |
| Federal      funds sold and securities purchased under agreements to    resell                                                                         |   |   | 17,653 |   |   |   | 4,127 |   |
| Cash      and cash equivalents                                                                                                                         |   |   | 55,367 |   |   |   | 73,734 |   |
|                                                                                                                                                   |   |   |   |   |   |   |   |   |
| Investment      securities available for sale                                                                                                          |   |   | 466,977 |   |   |   | 225,770 |   |
|                                                                                                                                                   |   |   |   |   |   |   |   |   |
| Loans,      net of deferred loan costs and fees                                                                                                        |   |   | 1,220,073 |   |   |   | 1,224,975 |   |
| Less:      Allowance for loan losses                                                                                                                   |   |   | 25,488 |   |   |   | 23,783 |   |
| Loans,      net                                                                                                                                        |   |   | 1,194,585 |   |   |   | 1,201,192 |   |
|                                                                                                                                                   |   |   |   |   |   |   |   |   |
| Premises      and equipment, net                                                                                                                       |   |   | 38,027 |   |   |   | 38,326 |   |
| Goodwill                                                                                                                                               |   |   | 5,160 |   |   |   | 5,160 |   |
| Intangible      assets, net                                                                                                                            |   |   | 9,065 |   |   |   | 3,010 |   |
| Accrued      interest receivable and other assets                                                                                                      |   |   | 67,345 |   |   |   | 62,922 |   |
| Total      Assets                                                                                                                                      |   | $ | 1,836,526 |   |   | $ | 1,610,114 |   |
|                                                                                                                                                   |   |   |   |   |   |   |   |   |
| Liabilities      and Shareholders’ Equity                                                                                                        |   |   |   |   |   |   |   |   |
| Liabilities                                                                                                                                            |   |   |   |   |   |   |   |   |
| Deposits:                                                                                                                                              |   |   |   |   |   |   |   |   |
| Noninterest-bearing      demand                                                                                                                        |   | $ | 183,095 |   |   | $ | 128,384 |   |
| Interest-bearing                                                                                                                                       |   |   | 1,253,365 |   |   |   | 1,007,284 |   |
| Total      deposits                                                                                                                                    |   |   | 1,436,460 |   |   |   | 1,135,668 |   |
|                                                                                                                                                   |   |   |   |   |   |   |   |   |
| Federal      Home Loan Bank (FHLB) advances                                                                                                            |   |   | 132,900 |   |   |   | 202,900 |   |
| Short-term      borrowings                                                                                                                             |   |   | 70,126 |   |   |   | 71,423 |   |
| Long-term      borrowings                                                                                                                              |   |   | 63,000 |   |   |   | 63,000 |   |
| Accrued      interest payable and other liabilities                                                                                                    |   |   | 16,188 |   |   |   | 16,009 |   |
| Total      liabilities                                                                                                                                 |   |   | 1,718,674 |   |   |   | 1,489,000 |   |
|                                                                                                                                                   |   |   |   |   |   |   |   |   |
| Shareholders’      equity                                                                                                                        |   |   |   |   |   |   |   |   |
| Preferred      stock – $.10 par value: 5,000,000 shares authorized, 37,000 shares issued      and outstanding, liquidation preference of $37,000 |   |   | 33,166 |   |   |   | 32,920 |   |
| Common      stock - $.10 par value: 40,000,000 shares authorized, 14,674,076 shares      issued, 14,602,069 shares outstanding                         |   |   | 1,467 |   |   |   | 1,467 |   |
| Additional      paid in capital                                                                                                                        |   |   | 73,798 |   |   |   | 73,178 |   |
| Retained      earnings                                                                                                                                 |   |   | 10,204 |   |   |   | 14,737 |   |
| Accumulated      other comprehensive loss                                                                                                              |   |   | (214 | ) |   |   | (619 | ) |
| Treasury      stock, at cost, 72,007 shares                                                                                                            |   |   | (569 | ) |   |   | (569 | ) |
| Total      shareholders’ equity                                                                                                                  |   |   | 117,852 |   |   |   | 121,114 |   |
|                                                                                                                                                   |   |   |   |   |   |   |   |   |
| Total      Liabilities and Shareholders’ Equity                                                                                                  |   | $ | 1,836,526 |   |   | $ | 1,610,114 |   |
|                                                                                                                                                   |   |   |   |   |   |   |   |   |
| See      accompanying notes to consolidated financial statements                                                                                       |   |

----

Table of Contents

|                                                                           |   | Three      months endedMarch      31 |   |
|--------------------------------------------------------------------------------|--------|--------------------------------------|--------|
|                                                                           |   | 2009                                 |   |   | 2008 |   |
| Interest      and dividend income                                              |   |                                 |   |   |   |   |
| Loans,      including fees                                                     |   | $                                    | 17,839 |   |   | $ | 20,150 |   |
| Investment      securities:                                                    |   |                                 |   |   |   |   |   |   |
| Taxable                                                                        |   |                                 | 2,904  |   |   |   | 1,778 |   |
| Tax-exempt                                                                     |   |                                 | 75     |   |   |   | 112 |   |
| Interest-bearing      deposits in other banks                                  |   |                                 | 20     |   |   |   | 11 |   |
| Federal      Home Loan Bank stock                                              |   |                                 | (19    | ) |   |   | 127 |   |
| Federal      funds sold and securities purchased under agreements to    resell |   |                                 | 3      |   |   |   | 744 |   |
| Total      interest and dividend income                                        |   |                                 | 20,822 |   |   |   | 22,922 |   |
|                                                                           |   |                                 |   |   |   |   |   |   |
| Interest      expense                                                          |   |                                 |   |   |   |   |   |   |
| Deposits                                                                       |   |                                 | 7,899  |   |   |   | 9,126 |   |
| Federal      Home Loan Bank advances                                           |   |                                 | 1,406  |   |   |   | 1,483 |   |
| Short-term      borrowings                                                     |   |                                 | 24     |   |   |   | 552 |   |
| Long-term      borrowings                                                      |   |                                 | 736    |   |   |   | 905 |   |
| Total      interest expense                                                    |   |                                 | 10,065 |   |   |   | 12,066 |   |
|                                                                           |   |                                 |   |   |   |   |   |   |
| Net      interest income                                                       |   |                                 | 10,757 |   |   |   | 10,856 |   |
|                                                                           |   |                                 |   |   |   |   |   |   |
| Provision      for loan losses                                                 |   |                                 | 5,309  |   |   |   | 2,654 |   |
| Net      interest income after provision for loan losses                       |   |                                 | 5,448  |   |   |   | 8,202 |   |
|                                                                           |   |                                 |   |   |   |   |   |   |
| Non-interest      income                                                       |   |                                 |   |   |   |   |   |   |
| Service      charges on deposit accounts                                       |   |                                 | 966    |   |   |   | 722 |   |
| Investment      securities gains, net                                          |   |                                 | 596    |   |   |   | 910 |   |
| Fees      on mortgage loans originated and sold                                |   |                                 | 115    |   |   |   | 232 |   |
| Investment      advisory fees                                                  |   |                                 | 193    |   |   |   | 125 |   |
| Other      income                                                              |   |                                 | 509    |   |   |   | 472 |   |
| Total      non-interest income                                                 |   |                                 | 2,379  |   |   |   | 2,461 |   |
|                                                                           |   |                                 |   |   |   |   |   |   |
| Non-interest      expense                                                      |   |                                 |   |   |   |   |   |   |
| Salaries      and employee benefits                                            |   |                                 | 7,380  |   |   |   | 6,053 |   |
| Net      occupancy and equipment expense                                       |   |                                 | 2,152  |   |   |   | 2,014 |   |
| Other      expense                                                             |   |                                 | 3,835  |   |   |   | 4,959 |   |
| Total      non-interest expense                                                |   |                                 | 13,367 |   |   |   | 13,026 |   |
|                                                                           |   |                                 |   |   |   |   |   |   |
| Loss      before income taxes                                                  |   |                                 | (5,540 | ) |   |   | (2,363 | ) |
|                                                                           |   |                                 |   |   |   |   |   |   |
| Income      tax benefit                                                        |   |                                 | (2,082 | ) |   |   | (918 | ) |
|                                                                           |   |                                 |   |   |   |   |   |   |
| Net      Loss                                                                  |   | $                                    | (3,458 | ) |   | $ | (1,445 | ) |
| Income      earned by preferred shareholders                                   |   |                                 | 708    |   |   |   | - |   |
| Net      loss allocated to common shareholders                                 |   | $                                    | (4,166 | ) |   | $ | (1,445 | ) |
|                                                                           |   |                                 |   |   |   |   |   |   |
| Basic      and diluted loss per common share                                   |   | $                                    | (0.29  | ) |   | $ | (0.11 | ) |
|                                                                           |   |                                 |   |   |   |   |   |   |

----

Table of Contents

|                                                                              |   |  PreferredShares |   |   |  PreferredStock |   |   | Common      Shares |   |   | Common      Stock |   |   | Additional      Paid in Capital |   |   | Retained      Earnings |   |   | Accumulated      Other Comprehensive Income (Loss) |   |   | TreasuryStock |   |   | Total      Shareholders’ Equity |   |
|-----------------------------------------------------------------------------------|--------|-----------------------|--------|--------|----------------------|--------|--------|--------------------|--------|--------|-------------------|--------|--------|---------------------------------|--------|--------|------------------------|--------|--------|----------------------------------------------------|--------|--------|---------------|--------|--------|---------------------------------------|--------|
| Balance,      January 1, 2009                                                     |   |                  | 37,000 |   |                 | $      | 32,920 |               |   |   | 14,602,069        |   |   | $                               | 1,467  |   |                   | $      | 73,178 |                                               |   | $      | 14,737        |   |   | $                                     | (619   | ) |   | $ | (569 | ) |   | $ | 121,114 |   |
| Comprehensive      loss:                                                          |   |                  |   |   |                 |   |   |               |   |   |              |   |   |                            |   |   |                   |   |   |                                               |   |   |          |   |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Net      loss                                                                     |   |                  |   |   |                 |   |   |               |   |   |              |   |   |                            |   |   |                   |   |   |                                               |   |   | (3,458        | )      |   |                                  |   |   |   |   |   |   |   |   | (3,458 | ) |
| Other      comprehensive income, net of tax expense of $245:                      |   |                  |   |   |                 |   |   |               |   |   |              |   |   |                            |   |   |                   |   |   |                                               |   |   |          |   |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Net      market valuation adjustment on securities available for    sale          |   |                  |   |   |                 |   |   |               |   |   |              |   |   |                            |   |   |                   |   |   |                                               |   |   |          |   |   |                                  | 777    |   |   |   |   |   |   |   |   |   |
| Less:      reclassification adjustment for gains, net of tax expense of      $224 |   |                  |   |   |                 |   |   |               |   |   |              |   |   |                            |   |   |                   |   |   |                                               |   |   |          |   |   |                                  | (372   | ) |   |   |   |   |   |   |   |   |
| Other      comprehensive income, net of tax                                       |   |                  |   |   |                 |   |   |               |   |   |              |   |   |                            |   |   |                   |   |   |                                               |   |   |          |   |   |                                  |   |   |   |   |   |   |   |   | 405 |   |
| Comprehensive      loss                                                           |   |                  |   |   |                 |   |   |               |   |   |              |   |   |                            |   |   |                   |   |   |                                               |   |   |          |   |   |                                  |   |   |   |   |   |   |   |   | (3,053 | ) |
| Is      Issuance costs associated with preferred stock issued                     |   |                  |   |   |                 |   |   |               |   |   |              |   |   |                            |   |   |                   |   | (48    | )                                                  |   |   |          |   |   |                                  |   |   |   |   |   |   |   |   | (48 | ) |
| Preferred      stock discount accretion                                           |   |                  |   |   |                 |   | 246    |               |   |   |              |   |   |                            |   |   |                   |   |   |                                               |   |   | (246          | )      |   |                                  |   |   |   |   |   |   |   |   | - |   |
| Stock-based      compensation and related tax effect                              |   |                  |   |   |                 |   |   |               |   |   |              |   |   |                            |   |   |                   |   | 199    |                                               |   |   |          |   |   |                                  |   |   |   |   |   |   |   |   | 199 |   |
| Common      Stock dividends declared, 1%                                          |   |                  |   |   |                 |   |   |               |   |   |              |   |   |                            |   |   |                   |   | 469    |                                               |   |   | (469          | )      |   |                                  |   |   |   |   |   |   |   |   | - |   |
| Cash      dividends declared, preferred stock                                     |   |                  |   |   |                 |   |   |               |   |   |              |   |   |                            |   |   |                   |   |   |                                               |   |   | (360          | )      |   |                                  |   |   |   |   |   |   |   |   | (360 | ) |
| Balance,      March 31, 2009                                                      |   |                  | 37,000 |   |                 | $      | 33,166 |               |   |   | 14,602,069        |   |   | $                               | 1,467  |   |                   | $      | 73,798 |                                               |   | $      | 10,204        |   |   | $                                     | (214   | ) |   | $ | (569 | ) |   | $ | 117,852 |   |
|                                                                              |   |                  |   |   |                 |   |   |               |   |   |              |   |   |                            |   |   |                   |   |   |                                               |   |   |          |   |   |                                  |   |   |   |   |   |   |   |   |   |   |

|                                                                                          |   |  PreferredShares |   |   |  PreferredStock |   |   | Common      Shares |   |   | Common      Stock |   |   | Additional      Paid in Capital |   |   | Retained      Earnings |   |   | Accumulated      Other Comprehensive Income (Loss) |   |   | TreasuryStock |   |   | Total      Shareholders’ Equity |   |
|-----------------------------------------------------------------------------------------------|--------|-----------------------|--------|--------|----------------------|--------|--------|--------------------|--------|--------|-------------------|--------|--------|---------------------------------|--------|--------|------------------------|--------|--------|----------------------------------------------------|--------|--------|---------------|--------|--------|---------------------------------------|--------|
| Balance,      January 1, 2008                                                                 |   |                  | -      |   |                 | $      | -      |               |   |   | 13,301,445        |   |   | $                               | 1,337  |   |                   | $      | 56,081 |                                               |   | $      | 39,151        |   |   | $                                     | 240    |   |   | $ | (569 | ) |   | $ | 96,240 |   |
| Cumulative-effect      adjustment for split-dollar life insurance postretirement      benefit |   |                  |   |   |                 |   |   |               |   |   |              |   |   |                            |   |   |                   |   |   |                                               |   |   | (141          | )      |   |                                  |   |   |   |   |   |   |   |   | (141 | ) |
| Comprehensive      loss:                                                                      |   |                  |   |   |                 |   |   |               |   |   |              |   |   |                            |   |   |                   |   |   |                                               |   |   |          |   |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Net      loss                                                                                 |   |                  |   |   |                 |   |   |               |   |   |              |   |   |                            |   |   |                   |   |   |                                               |   |   | (1,445        | )      |   |                                  |   |   |   |   |   |   |   |   | (1,445 | ) |
| Other      comprehensive loss, net of tax benefit of $346:                                    |   |                  |   |   |                 |   |   |               |   |   |              |   |   |                            |   |   |                   |   |   |                                               |   |   |          |   |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Net      market valuation adjustment on securities available for    sale                      |   |                  |   |   |                 |   |   |               |   |   |              |   |   |                            |   |   |                   |   |   |                                               |   |   |          |   |   |                                  | 16     |   |   |   |   |   |   |   |   |   |
| Less:      reclassification adjustment for gains, net of tax of $343                          |   |                  |   |   |                 |   |   |               |   |   |              |   |   |                            |   |   |                   |   |   |                                               |   |   |          |   |   |                                  | (567   | ) |   |   |   |   |   |   |   |   |
| Other      comprehensive loss, net of tax                                                     |   |                  |   |   |                 |   |   |               |   |   |              |   |   |                            |   |   |                   |   |   |                                               |   |   |          |   |   |                                  |   |   |   |   |   |   |   |   | (551 | ) |
| Comprehensive      loss                                                                       |   |                  |   |   |                 |   |   |               |   |   |              |   |   |                            |   |   |                   |   |   |                                               |   |   |          |   |   |                                  |   |   |   |   |   |   |   |   | (1,996 | ) |
| Restricted      stock grants, net of 324 cancellations                                        |   |                  |   |   |                 |   |   |               |   |   | 5,190             |   |   |                            | 1      |   |                   |   | (1     | )                                                  |   |   |          |   |   |                                  |   |   |   |   |   |   |   |   | - |   |
| Private      placement of common shares                                                       |   |                  |   |   |                 |   |   |               |   |   | 1,248,725         |   |   |                            | 125    |   |                   |   | 9,821  |                                               |   |   |          |   |   |                                  |   |   |   |   |   |   |   |   | 9,946 |   |
| Exercise      of stock options                                                                |   |                  |   |   |                 |   |   |               |   |   | 15,401            |   |   |                            | 1      |   |                   |   | 97     |                                               |   |   |          |   |   |                                  |   |   |   |   |   |   |   |   | 98 |   |
| Stock-based      compensation and related tax effect                                          |   |                  |   |   |                 |   |   |               |   |   |              |   |   |                            |   |   |                   |   | 171    |                                               |   |   |          |   |   |                                  |   |   |   |   |   |   |   |   | 171 |   |
| Cash      dividends declared, $0.601 per common share                                         |   |                  |   |   |                 |   |   |               |   |   |              |   |   |                            |   |   |                   |   |   |                                               |   |   | (875          | )      |   |                                  |   |   |   |   |   |   |   |   | (875 | ) |
| Balance,      March 31, 2008                                                                  |   |                  | -      |   |                 | $      | -      |               |   |   | 14,570,761        |   |   | $                               | 1,464  |   |                   | $      | 66,169 |                                               |   | $      | 36,690        |   |   | $                                     | (311   | ) |   | $ | (569 | ) |   | $ | 103,443 |   |
|                                                                                          |   |                  |   |   |                 |   |   |               |   |   |              |   |   |                            |   |   |                   |   |   |                                               |   |   |          |   |   |                                  |   |   |   |   |   |   |   |   |   |   |

----

Table of Contents

| TIB      FINANCIAL CORP.CONSOLIDATED      STATEMENTS OF CASH FLOWSINCREASE      (DECREASE) IN CASH AND CASH EQUIVALENTS(Unaudited)(Dollars in      thousands) |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                          |   | Three      Months Ended March 31, |   |
|                                                                                                                                                          |   | 2009 |   |   | 2008 |   |
| Cash      flows from operating activities:                                                                                                                    |   |   |   |   |   |   |
| Net      income (loss)                                                                                                                                        |   | $ | (3,458 | ) |   | $ | (1,445 | ) |
| Adjustments      to reconcile net income (loss) to net cash provided by operating      activities:                                                            |   |   |   |   |   |   |   |   |
| Depreciation      and amortization                                                                                                                            |   |   | 999 |   |   |   | 982 |   |
| Provision      for loan losses                                                                                                                                |   |   | 5,309 |   |   |   | 2,654 |   |
| Deferred      income tax benefit                                                                                                                              |   |   | (3,129 | ) |   |   | (1,083 | ) |
| Investment      securities net realized gains                                                                                                                 |   |   | (596 | ) |   |   | (910 | ) |
| Stock-based      compensation                                                                                                                                 |   |   | 204 |   |   |   | 173 |   |
|          Gains on sales of OREO                                                                                                                |   |   | (3 | ) |   |   | - |   |
| Other                                                                                                                                                         |   |   | 390 |   |   |   | (48 | ) |
| Mortgage      loans originated for sale                                                                                                                       |   |   | (6,017 | ) |   |   | (15,660 | ) |
| Proceeds      from sales of mortgage loans                                                                                                               |   |   | 4,538 |   |   |   | 16,288 |   |
| Fees      on mortgage loans sold                                                                                                                              |   |   | (98 | ) |   |   | (230 | ) |
| (Increase)      decrease in accrued interest receivable and other assets                                                                                      |   |   | 1,146 |   |   |   | (1,112 | ) |
| Increase      (decrease) in accrued interest payable and other    liabilities                                                                                 |   |   | (159 | ) |   |   | 2,527 |   |
| Net      cash provided by (used in) operating activities                                                                                                      |   |   | (874 | ) |   |   | 2,136 |   |
|                                                                                                                                                          |   |   |   |   |   |   |   |   |
| Cash      flows from investing activities:                                                                                                                    |   |   |   |   |   |   |   |   |
| Purchases      of investment securities available for sale                                                                                                    |   |   | (446,418 | ) |   |   | (42,097 | ) |
| Sales      of investment securities available for sale                                                                                                        |   |   | 191,695 |   |   |   | 25,016 |   |
| Repayments      of principal and maturities of investment securities available for      sale                                                                  |   |   | 47,629 |   |   |   | 11,384 |   |
| Acquisition      of Naples Capital Advisors business                                                                                                          |   |   | - |   |   |   | (1,355 | ) |
| Net      cash received in assumption of operations of Riverside Bank of the Gulf      Coast                                                                   |   |   | 280,436 |   |   |   | - |   |
| Net      (purchase) sale of FHLB stock                                                                                                                        |   |   | (298 | ) |   |   | 982 |   |
| Loans      originated or acquired, net of principal repayments                                                                                                |   |   | 1,294 |   |   |   | (12,587 | ) |
| Purchases      of premises and equipment                                                                                                                      |   |   | (455 | ) |   |   | (395 | ) |
| Proceeds      from sale of OREO                                                                                                                               |   |   | 111 |   |   |   | - |   |
| Proceeds      from disposal of premises, equipment and intangible assets                                                                                      |   |   | - |   |   |   | 14 |   |
| Net      cash provided by (used in) investing activities                                                                                                      |   |   | 73,994 |   |   |   | (19,038 | ) |
|                                                                                                                                                          |   |   |   |   |   |   |   |   |
| Cash      flows from financing activities:                                                                                                                    |   |   |   |   |   |   |   |   |
| Net      increase (decrease) in demand, money market and savings      accounts                                                                                |   |   | 54,683 |   |   |   | 39,318 |   |
| Net      increase (decrease) in time deposits                                                                                                                 |   |   | (73,524 | ) |   |   | 31,675 |   |
| Net      increase (decrease) in federal funds purchased and securities sold under      agreements to repurchase                                               |   |   | (2,233 | ) |   |   | 9,019 |   |
| Increase      in long term FHLB advances                                                                                                                      |   |   | - |   |   |   | 2,900 |   |
| Repayment      of long term FHLB advances                                                                                                                     |   |   | - |   |   |   | (25,000 | ) |
| Repayment      of short term FHLB advances                                                                                                                    |   |   | (70,000 | ) |   |   | - |   |
| Proceeds      from exercise of stock options                                                                                                                  |   |   | - |   |   |   | 98 |   |
| Income      tax effect related to stock-based compensation                                                                                                    |   |   | (5 | ) |   |   | (2 | ) |
| Proceeds      from private stock offering                                                                                                                     |   |   | - |   |   |   | 9,946 |   |
| Net      issuance costs of preferred stock and common warrants                                                                                                |   |   | (48 | ) |   |   | - |   |
| Cash      dividends paid to common shareholders                                                                                                               |   |   | - |   |   |   | (799 | ) |
| Cash      dividends paid to preferred shareholders                                                                                                            |   |   | (360 | ) |   |   | - |   |
| Net      cash provided by (used in) financing activities                                                                                                      |   |   | (91,487 | ) |   |   | 67,155 |   |
|                                                                                                                                                          |   |   |   |   |   |   |   |   |
| Net      increase (decrease) in cash and cash equivalents                                                                                                     |   |   | (18,367 | ) |   |   | 50,253 |   |
| Cash      and cash equivalents at beginning of period                                                                                                         |   |   | 73,734 |   |   |   | 71,059 |   |
| Cash      and cash equivalents at end of period                                                                                                               |   | $ | 55,367 |   |   | $ | 121,312 |   |
|                                                                                                                                                          |   |   |   |   |   |   |   |   |
| Supplemental      disclosures of cash paid:                                                                                                                   |   |   |   |   |   |   |   |   |
| Interest                                                                                                                                                      |   | $ | 9,536 |   |   | $ | 11,420 |   |
| Income      taxes                                                                                                                                             |   |   | - |   |   |   | 125 |   |
| Supplemental      information:                                                                                                                                |   |   |   |   |   |   |   |   |
| Fair      value of noncash assets acquired                                                                                                                    |   | $ | 39,413 |   |   | $ | 1,416 |   |
| Fair      value of liabilities assumed                                                                                                                        |   |   | 320,594 |   |   |   | 40 |   |
|                                                                                                                                                          |   |   |   |   |   |   |   |   |
| See      accompanying notes to consolidated financial statements                                                                                              |   |

----

Table of Contents

----

Table of Contents

----

Table of Contents

|                                                    |   | March      31, 2009 |    |
|---------------------------------------------------------|--------|---------------------|---------|
|                                                    |   | Amortized      Cost |    |   | Unrealized      Gains |   |   | Unrealized      Losses |   |   | Estimated      Fair Value |   |
| U.S.      Government agencies and corporations          |   | $                   | 72,898  |   |   | $ | 193 |   |   | $ | 147 |   |   | $ | 72,944 |   |
| States      and political subdivisions—tax exempt |   |                | 7,752   |   |   |   | 201 |   |   |   | 1 |   |   |   | 7,952 |   |
| States      and political subdivisions—taxable    |   |                | 2,361   |   |   |   | - |   |   |   | 186 |   |   |   | 2,175 |   |
| Marketable      equity securities                       |   |                | 12      |   |   |   | 7 |   |   |   | - |   |   |   | 19 |   |
| Mortgage-backed      securities                         |   |                | 305,583 |   |   |   | 3,281 |   |   |   | 680 |   |   |   | 308,184 |   |
| Money      Market Mutual Funds                          |   |                | 70,101  |   |   |   | - |   |   |   | - |   |   |   | 70,101 |   |
| Corporate      bonds                                    |   |                | 2,871   |   |   |   | - |   |   |   | 1,227 |   |   |   | 1,644 |   |
| Collateralized      debt obligations                    |   |                | 5,741   |   |   |   | - |   |   |   | 1,783 |   |   |   | 3,958 |   |
|                                                    |   | $                   | 467,319 |   |   | $ | 3,682 |   |   | $ | 4,024 |   |   | $ | 466,977 |   |
|                                                    |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |

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

----

Table of Contents

|                                   |   | March      31, 2009 |      |   | December      31,2008 |   |
|----------------------------------------|--------|--------------------------|-----------|--------|-----------------------|--------|
| Real      estate mortgage loans:       |   |                     |      |   |                  |   |
| Commercial                             |   | $                        | 666,780   |   |                  | $      | 658,516 |   |
| Residential                            |   |                     | 213,037   |   |                  |   | 205,062 |   |
| Farmland                               |   |                     | 13,438    |   |                  |   | 13,441 |   |
| Construction      and vacant land      |   |                     | 142,175   |   |                  |   | 147,309 |   |
| Commercial      and agricultural loans |   |                     | 65,723    |   |                  |   | 71,352 |   |
| Indirect      auto loans               |   |                     | 71,868    |   |                  |   | 82,028 |   |
| Home      equity loans                 |   |                     | 34,325    |   |                  |   | 34,062 |   |
| Other      consumer loans              |   |                     | 11,245    |   |                  |   | 11,549 |   |
| Total      loans                       |   |                     | 1,218,591 |   |                  |   | 1,223,319 |   |
|                                   |   |                     |      |   |                  |   |   |   |
| Net      deferred loan costs           |   |                     | 1,482     |   |                  |   | 1,656 |   |
| Loans,      net of deferred loan costs |   | $                        | 1,220,073 |   |                  | $      | 1,224,975 |   |
|                                   |   |                     |      |   |                  |   |   |   |

|                                              |   | Three      Months EndedMarch      31, |   |
|---------------------------------------------------|--------|---------------------------------------|--------|
|                                              |   | 2009                                  |   |   | 2008 |   |
| Balance,      January 1                           |   | $                                     | 23,783 |   |   | $ | 14,973 |   |
| Provision      for loan losses charged to expense |   |                                  | 5,309  |   |   |   | 2,654 |   |
| Loans      charged off                            |   |                                  | (3,622 | ) |   |   | (1,784 | ) |
| Recoveries      of loans previously charged off   |   |                                  | 18     |   |   |   | 13 |   |
| Balance,      March 31                            |   | $                                     | 25,488 |   |   |   | 15,856 |   |
|                                              |   |                                  |   |   |   |   |   |   |

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

|                                               |   | As      of March 31, 2009 |   |   | As      of December 31, 2008 |   |
|----------------------------------------------------|--------|---------------------------|--------|--------|------------------------------|--------|
| Loan      Type                                     |   | Number      ofLoans       |   |   | Outstanding      Balance     |   |   | Number      ofLoans |   |   | Outstanding      Balance |   |
| Residential      1-4 family                        |   |                      | 15     |   |                         | $      | 3,815 |   |   |   | 18 |   |   | $ | 4,014 |   |
| Commercial      1-4 family                         |   |                      | 10     |   |                         |   | 7,892 |   |   |   | 9 |   |   |   | 7,943 |   |
| Commercial      and agricultural                   |   |                      | 8      |   |                         |   | 659 |   |   |   | 2 |   |   |   | 64 |   |
| Commercial      real estate                        |   |                      | 20     |   |                         |   | 13,719 |   |   |   | 18 |   |   |   | 13,133 |   |
| Commercial      land development                   |   |                      | 6      |   |                         |   | 17,707 |   |   |   | 4 |   |   |   | 12,584 |   |
| Government      guaranteed loan                    |   |                      | 3      |   |                         |   | 143 |   |   |   | 3 |   |   |   | 143 |   |
| Indirect      auto, direct auto and consumer loans |   |                      | 162    |   |                         |   | 1,712 |   |   |   | 155 |   |   |   | 1,895 |   |
|                                               |   |                      |   |   |                         | $      | 45,647 |   |   |   |   |   |   | $ | 39,776 |   |
|                                               |   |                      |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |

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

----

Table of Contents

|                                                     |   | Three      Months EndedMarch      31, |
|----------------------------------------------------------|--------|---------------------------------------|
|                                                     |   | 2009                                  |   | 2008 |
| Basic                                                    |   | 14,509,694                            |   | 13,548,402 |
| Dilutive      effect of options outstanding              |   | -                                     |   | - |
| Dilutive      effect of unvested restricted stock awards |   | -                                     |   | - |
| Dilutive      effect of warrants                         |   | -                                     |   | - |
| Diluted                                                  |   | 14,509,694                            |   | 13,548,402 |

|                                                |   | Three      Months EndedMarch      31, |
|-----------------------------------------------------|--------|---------------------------------------|
|                                                |   | 2009                                  |   | 2008 |
| Anti-dilutive      stock options                    |   | 686,161                               |   | 690,584 |
| Anti-dilutive      unvested restricted stock awards |   | 92,358                                |   | 88,485 |
| Anti-dilutive      warrants                         |   | 2,333,314                             |   | 329,335 |

|                                          |   | Well      Capitalized      Requirement |                 |   | Adequately      Capitalized Requirement |   |             | March      31,2009Actual |   |   | December      31, 2008Actual |   |
|-----------------------------------------------|--------|----------------------------------------|----------------------|--------|-----------------------------------------|--------|------------------|--------------------------|--------|--------|------------------------------|--------|
| Tier      1 Capital (to Average Assets)       |   |                                   |                 |   |                                    |   |             |                     |   |   |                         |   |
| Consolidated                                  |   |                                   | N/A                  |   |                                    |   | ≥      4.0 | %                        |   |   | 6.9                          | %      |   |   | 8.9 | % |
| TIB      Bank                                 |   |                                   |  ≥    5.0 | %      |                                    |   | ≥      4.0 | %                        |   |   | 6.8                          | %      |   |   | 7.3 | % |
| The      Bank of Venice                       |   |                                   | ≥5.0           | %      |                                    |   | ≥      4.0 | %                        |   |   | 6.8                          | %      |   |   | 8.1 | % |
|                                          |   |                                   |                 |   |                                    |   |             |                     |   |   |                         |   |   |   |   |   |
| Tier      1 Capital (to Risk Weighted Assets) |   |                                   |                 |   |                                    |   |             |                     |   |   |                         |   |   |   |   |   |
| Consolidated                                  |   |                                   | N/A                  |   |                                    |   | ≥      4.0 | %                        |   |   | 9.1                          | %      |   |   | 11.3 | % |
| TIB      Bank                                 |   |                                   | ≥      6.0     | %      |                                    |   | ≥      4.0 | %                        |   |   | 8.9                          | %      |   |   | 9.3 | % |
| The      Bank of Venice                       |   |                                   | ≥      6.0     | %      |                                    |   | ≥      4.0 | %                        |   |   | 10.2                         | %      |   |   | 11.2 | % |
|                                          |   |                                   |                 |   |                                    |   |             |                     |   |   |                         |   |   |   |   |   |
| Total      Capital (to Risk Weighted Assets)  |   |                                   |                 |   |                                    |   |             |                     |   |   |                         |   |   |   |   |   |
| Consolidated                                  |   |                                   | N/A                  |   |                                    |   | ≥      8.0 | %                        |   |   | 10.4                         | %      |   |   | 12.6 | % |
| TIB      Bank                                 |   |                                   | ≥      10.0    | %      |                                    |   | ≥      8.0 | %                        |   |   | 10.2                         | %      |   |   | 10.5 | % |
| The      Bank of Venice                       |   |                                   | ≥      10.0    | %      |                                    |   | ≥      8.0 | %                        |   |   | 11.5                         | %      |   |   | 12.4 | % |
|                                          |   |                                   |                 |   |                                    |   |             |                     |   |   |                         |   |   |   |   |   |

----

Table of Contents

| Cash      and cash equivalents                                       |   | $      | 281,181 |   |
|----------------------------------------------------------------------|--------|--------|---------|--------|
| Securities      available for sale                                   |   |   | 31,850  |   |
| Loans                                                                |   |   | 1,004   |   |
| Intangible      assets                                               |   |   | 6,285   |   |
| Other                                                                |   |   | 274     |   |
| Total      assets acquired                                           |   | $      | 320,594 |   |
|                                                                 |   |   |    |   |
| Deposits      (including deposit premium on certificates of deposit) |   |   | 319,232 |   |
| Other      liabilities                                               |   |   | 1,362   |   |
| Total      liabilities assumed                                       |   | $      | 320,594 |   |
|                                                                 |   |   |    |   |

----

Table of Contents

|                               |   | Fair      Value Measurements at March 31, 2009 Using |    |
|------------------------------------|--------|------------------------------------------------------|---------|
|                               |   | March      31, 2009                                  |    |   | Quoted      Prices in Active Markets for Identical Assets(Level      1) |   |   | Significant      Other Observable Inputs (Level 2) |   |   | Significant      Unobservable Inputs(Level      3) |   |
| Assets:                            |   |                                                 |    |   |   |   |   |   |   |   |   |   |
| Available      for sale securities |   | $                                                    | 466,977 |   |   | $ | 70,101 |   |   | $ | 392,918 |   |   | $ | 3,958 |   |
|                               |   |                                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                               |   | Fair      Value Measurements at December 31, 2008 Using |    |
|------------------------------------|--------|---------------------------------------------------------|---------|
|                               |   | December      31, 2008                                  |    |   | Quoted      Prices in Active Markets for Identical Assets(Level      1) |   |   | Significant      Other Observable Inputs (Level 2) |   |   | Significant      Unobservable Inputs(Level      3) |   |
| Assets:                            |   |                                                    |    |   |   |   |   |   |   |   |   |   |
| Available      for sale securities |   | $                                                       | 225,770 |   |   | $ | - |   |   | $ | 221,495 |   |   | $ | 4,275 |   |
|                               |   |                                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                              |   | Fair Value Measurements Using      Significant Unobservable Inputs (Level 3)Collateralized Debt      Obligations |   |
|-------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------|--------|
|                                                              |   | 2009                                                                                                             |   |   | 2008 |   |
| Beginning      balance, January 1,                                |   | $                                                                                                                | 4,275  |   |   | $ | 6,111 |   |
| Included      in earnings – other than temporary impairment |   |                                                                                                             | (23    | ) |   |   | - |   |
| Included      in other comprehensive income                       |   |                                                                                                             | (294   | ) |   |   | (454 | ) |
| Ending      balance March 31,                                     |   | $                                                                                                                | 3,958  |   |   | $ | 5,657 |   |
|                                                              |   |                                                                                                             |   |   |   |   |   |   |

|                                                                                |   | Fair      Value Measurements at March 31, 2009 Using |   |
|-------------------------------------------------------------------------------------|--------|------------------------------------------------------|--------|
|                                                                                |   | March      31, 2009                                  |   |   | Quoted      Prices in Active Markets for Identical Assets(Level      1) |   |   | Significant      Other Observable Inputs(Level      2) |   |   | Significant      Unobservable Inputs(Level      3) |   |
| Assets:                                                                             |   |                                                 |   |   |   |   |   |   |   |   |   |   |
| Impaired      loans with specific allocations of the allowance for loan      losses |   | $                                                    | 52,836 |   |   | $ | - |   |   | $ | - |   |   | $ | 52,836 |   |
| Other      real estate owned                                                        |   |                                                 | 5,032  |   |   |   | - |   |   |   | - |   |   |   | 5,032 |   |
| Other      repossessed assets                                                       |   |                                                 | 407    |   |   |   | - |   |   |   | 407 |   |   |   | - |   |
|                                                                                |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                |   |

|                                                                                |   | Fair      Value Measurements at December 31, 2008 Using |   |
|-------------------------------------------------------------------------------------|--------|---------------------------------------------------------|--------|
|                                                                                |   | December      31, 2008                                  |   |   | Quoted      Prices in Active Markets for Identical Assets(Level      1) |   |   | Significant      Other Observable Inputs(Level      2) |   |   | Significant      Unobservable Inputs(Level      3) |   |
| Assets:                                                                             |   |                                                    |   |   |   |   |   |   |   |   |   |   |
| Impaired      loans with specific allocations of the allowance for loan      losses |   | $                                                       | 47,649 |   |   | $ | - |   |   | $ | - |   |   | $ | 47,649 |   |
|                                                                                |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                |   |

----

Table of Contents

Item 2.  

| ·   | Under      challenging and declining investment markets, Naples Capital Advisors and      TIB Bank’s trust department continued to establish new investment      management and trust relationships increasing the market value of assets      under management to $99 million as of quarter end while TIB private      bankers developed new deposit relationships during the quarter of $14      million. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our      indirect auto loan portfolio declined $10.2 million during the quarter to      $71.9 million, or 6% of total loans. Non-performing loans in this business      segment decreased to $1.7 million in comparison to $1.9 million at      December 31, 2008 and charge-offs during the quarter declined to $2.2      million compared to $2.3 million in the fourth quarter. Unsold repossessed      vehicles declined to $407,000 from $601,000 at year end. Additionally,      delinquency of indirect auto loans declined to 7% at quarter end down from      9% at year end. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      net interest margin declined to 2.65% during the quarter in comparison to      the 2.85% in the fourth quarter of 2008 due primarily to the impact of the      acquisition of the Riverside deposits.  Initially, approximately      $280 million of cash was received in the transaction which was temporarily      invested in short-term and cash equivalent investments. $114 million was      later utilized in March to pay down maturing wholesale funding and      approximately $160 million was invested in higher yielding investment      securities. Only $1 million of loans were acquired in the initial      transaction. The impact of nonaccrual loans reduced the margin by      approximately 15 basis points. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

----

Table of Contents

|                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 2009            |      |   | 2008           |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------|-----------|--------|----------------|--------|
|  (Dollars      in thousands)                                                                                                                                                                                                                                                                                                                                                                                                      |   | AverageBalances |      |   | Income/Expense |   |   | Yields/Rates |   |   | AverageBalances |   |   | Income/Expense |   |   | Yields/Rates |   |
| Interest-earning      assets:                                                                                                                                                                                                                                                                                                                                                                                                          |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans      (1)(2)                                                                                                                                                                                                                                                                                                                                                                                                                      |   | $               | 1,223,542 |   |           | $      | 17,840 |   |   |   | 5.91 | % |   | $ | 1,137,388 |   |   | $ | 20,150 |   |   |   | 7.13 | % |
| Investment      securities (2)                                                                                                                                                                                                                                                                                                                                                                                                         |   |            | 287,829   |   |           |   | 2,913 |   |   |   | 4.10 | % |   |   | 157,773 |   |   |   | 1,939 |   |   |   | 4.94 | % |
| Money      Market Mutual Funds                                                                                                                                                                                                                                                                                                                                                                                                         |   |            | 84,409    |   |           |   | 103 |   |   |   | 0.49 | % |   |   | - |   |   |   | - |   |   |   | - |   |
| Interest-bearing      deposits in other banks                                                                                                                                                                                                                                                                                                                                                                                          |   |            | 38,393    |   |           |   | 20 |   |   |   | 0.21 | % |   |   | 1,382 |   |   |   | 11 |   |   |   | 3.20 | % |
| Federal      Home Loan Bank stock                                                                                                                                                                                                                                                                                                                                                                                                      |   |            | 11,728    |   |           |   | (19 | ) |   |   | -0.67 | % |   |   | 8,489 |   |   |   | 127 |   |   |   | 6.02 | % |
| Federal      funds sold and securities sold under agreements to resell                                                                                                                                                                                                                                                                                                                                                                 |   |            | 7,564     |   |           |   | 3 |   |   |   | 0.16 | % |   |   | 94,276 |   |   |   | 744 |   |   |   | 3.17 | % |
| Total      interest-earning assets                                                                                                                                                                                                                                                                                                                                                                                                     |   |            | 1,653,465 |   |           |   | 20,860 |   |   |   | 5.12 | % |   |   | 1,399,308 |   |   |   | 22,971 |   |   |   | 6.60 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-earning      assets:                                                                                                                                                                                                                                                                                                                                                                                                      |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      and due from banks                                                                                                                                                                                                                                                                                                                                                                                                           |   |            | 31,270    |   |           |   |   |   |   |   |   |   |   |   | 20,269 |   |   |   |   |   |   |   |   |   |
| Premises      and equipment, net                                                                                                                                                                                                                                                                                                                                                                                                       |   |            | 38,205    |   |           |   |   |   |   |   |   |   |   |   | 38,120 |   |   |   |   |   |   |   |   |   |
| Allowance      for loan losses                                                                                                                                                                                                                                                                                                                                                                                                         |   |            | (23,352   | )      |           |   |   |   |   |   |   |   |   |   | (14,668 | ) |   |   |   |   |   |   |   |   |
| Other      assets                                                                                                                                                                                                                                                                                                                                                                                                                      |   |            | 70,076    |   |           |   |   |   |   |   |   |   |   |   | 52,624 |   |   |   |   |   |   |   |   |   |
| Total      non-interest-earning assets                                                                                                                                                                                                                                                                                                                                                                                                 |   |            | 116,199   |   |           |   |   |   |   |   |   |   |   |   | 96,345 |   |   |   |   |   |   |   |   |   |
| Total      assets                                                                                                                                                                                                                                                                                                                                                                                                                      |   | $               | 1,769,664 |   |           |   |   |   |   |   |   |   |   | $ | 1,495,653 |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing      liabilities:                                                                                                                                                                                                                                                                                                                                                                                                     |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing      deposits:                                                                                                                                                                                                                                                                                                                                                                                                        |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOW      accounts                                                                                                                                                                                                                                                                                                                                                                                                                      |   | $               | 167,889   |   |           | $      | 329 |   |   |   | 0.79 | % |   | $ | 183,982 |   |   | $ | 1,117 |   |   |   | 2.44 | % |
| Money      market                                                                                                                                                                                                                                                                                                                                                                                                                      |   |            | 155,485   |   |           |   | 661 |   |   |   | 1.72 | % |   |   | 179,081 |   |   |   | 1,424 |   |   |   | 3.20 | % |
| Savings      deposits                                                                                                                                                                                                                                                                                                                                                                                                                  |   |            | 91,984    |   |           |   | 408 |   |   |   | 1.80 | % |   |   | 51,009 |   |   |   | 180 |   |   |   | 1.42 | % |
| Time      deposits                                                                                                                                                                                                                                                                                                                                                                                                                     |   |            | 746,393   |   |           |   | 6,501 |   |   |   | 3.53 | % |   |   | 536,065 |   |   |   | 6,405 |   |   |   | 4.81 | % |
| Total      interest-bearing deposits                                                                                                                                                                                                                                                                                                                                                                                                   |   |            | 1,161,751 |   |           |   | 7,899 |   |   |   | 2.76 | % |   |   | 950,137 |   |   |   | 9,126 |   |   |   | 3.86 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      interest-bearing liabilities:                                                                                                                                                                                                                                                                                                                                                                                               |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Short-term      borrowings and FHLB advances                                                                                                                                                                                                                                                                                                                                                                                           |   |            | 252,160   |   |           |   | 1,430 |   |   |   | 2.30 | % |   |   | 210,659 |   |   |   | 2,035 |   |   |   | 3.89 | % |
| Long-term      borrowings                                                                                                                                                                                                                                                                                                                                                                                                              |   |            | 63,000    |   |           |   | 736 |   |   |   | 4.74 | % |   |   | 63,000 |   |   |   | 905 |   |   |   | 5.78 | % |
| Total      interest-bearing liabilities                                                                                                                                                                                                                                                                                                                                                                                                |   |            | 1,476,911 |   |           |   | 10,065 |   |   |   | 2.76 | % |   |   | 1,223,796 |   |   |   | 12,066 |   |   |   | 3.97 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-bearing      liabilities and shareholders’ equity:                                                                                                                                                                                                                                                                                                                                                                  |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand      deposits                                                                                                                                                                                                                                                                                                                                                                                                                   |   |            | 155,839   |   |           |   |   |   |   |   |   |   |   |   | 153,579 |   |   |   |   |   |   |   |   |   |
| Other      liabilities                                                                                                                                                                                                                                                                                                                                                                                                                 |   |            | 15,597    |   |           |   |   |   |   |   |   |   |   |   | 18,676 |   |   |   |   |   |   |   |   |   |
| Shareholders’      equity                                                                                                                                                                                                                                                                                                                                                                                                        |   |            | 121,317   |   |           |   |   |   |   |   |   |   |   |   | 99,602 |   |   |   |   |   |   |   |   |   |
| Total      non-interest-bearing liabilities and shareholders’ equity                                                                                                                                                                                                                                                                                                                                                             |   |            | 292,753   |   |           |   |   |   |   |   |   |   |   |   | 271,857 |   |   |   |   |   |   |   |   |   |
| Total      liabilities and shareholders’ equity                                                                                                                                                                                                                                                                                                                                                                                  |   | $               | 1,769,664 |   |           |   |   |   |   |   |   |   |   | $ | 1,495,653 |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      rate spread  (tax equivalent basis)                                                                                                                                                                                                                                                                                                                                                                            |   |            |      |   |           |   |   |   |   |   | 2.36 | % |   |   |   |   |   |   |   |   |   |   | 2.63 | % |
| Net      interest income  (tax equivalent basis)                                                                                                                                                                                                                                                                                                                                                                             |   |            |      |   |           | $      | 10,795 |   |   |   |   |   |   |   |   |   |   | $ | 10,905 |   |   |   |   |   |
| Net      interest margin (3) (tax equivalent basis)                                                                                                                                                                                                                                                                                                                                                                                    |   |            |      |   |           |   |   |   |   |   | 2.65 | % |   |   |   |   |   |   |   |   |   |   | 3.13 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |            |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| _______(1) Average      loans include non-performing loans.(2) Interest      income and rates include the effects of a tax equivalent adjustment using      applicable statutory tax rates in adjusting tax exempt interest on tax      exempt investment securities and loans to a fully taxable      basis.(3) Net      interest margin is net interest income divided by average total      interest-earning assets. |   |

----

Table of Contents

|                                                                                                                                                                                                                                      |   | 2009      Compared to 2008 (1)Due      to Changes in |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------|--------|
| (Dollars      in thousands)                                                                                                                                                                                                               |   | AverageVolume                                        |   |   | AverageRate |   |   | Net      Increase(Decrease) |   |
| Interest      income                                                                                                                                                                                                                      |   |                                                 |   |   |   |   |   |   |   |
| Loans      (2)                                                                                                                                                                                                                            |   | $                                                    | 1,445  |   |   | $ | (3,755 | ) |   | $ | (2,310 | ) |
| Investment      securities (2)                                                                                                                                                                                                            |   |                                                 | 1,366  |   |   |   | (392 | ) |   |   | 974 |   |
| Money      Market Mutual Funds                                                                                                                                                                                                            |   |                                                 | 103    |   |   |   | - |   |   |   | 103 |   |
| Interest-bearing      deposits in other banks                                                                                                                                                                                             |   |                                                 | 29     |   |   |   | (20 | ) |   |   | 9 |   |
| Federal      Home Loan Bank stock                                                                                                                                                                                                         |   |                                                 | 35     |   |   |   | (181 | ) |   |   | (146 | ) |
| Federal      funds sold and securities purchased under agreements to    resell                                                                                                                                                            |   |                                                 | (365   | ) |   |   | (376 | ) |   |   | (741 | ) |
| Total      interest income                                                                                                                                                                                                                |   |                                                 | 2,613  |   |   |   | (4,724 | ) |   |   | (2,111 | ) |
|                                                                                                                                                                                                                                      |   |                                                 |   |   |   |   |   |   |   |   |   |   |
| Interest      expense                                                                                                                                                                                                                     |   |                                                 |   |   |   |   |   |   |   |   |   |   |
| NOW      accounts                                                                                                                                                                                                                         |   |                                                 | (90    | ) |   |   | (698 | ) |   |   | (788 | ) |
| Money      market                                                                                                                                                                                                                         |   |                                                 | (168   | ) |   |   | (595 | ) |   |   | (763 | ) |
| Savings      deposits                                                                                                                                                                                                                     |   |                                                 | 173    |   |   |   | 55 |   |   |   | 228 |   |
| Time      deposits                                                                                                                                                                                                                        |   |                                                 | 2,110  |   |   |   | (2,014 | ) |   |   | 96 |   |
| Short-term      borrowings and FHLB advances                                                                                                                                                                                              |   |                                                 | 347    |   |   |   | (952 | ) |   |   | (605 | ) |
| Long-term      borrowings                                                                                                                                                                                                                 |   |                                                 | -      |   |   |   | (169 | ) |   |   | (169 | ) |
| Total      interest expense                                                                                                                                                                                                               |   |                                                 | 2,372  |   |   |   | (4,373 | ) |   |   | (2,001 | ) |
|                                                                                                                                                                                                                                      |   |                                                 |   |   |   |   |   |   |   |   |   |   |
| Change      in net interest income                                                                                                                                                                                                        |   | $                                                    | 241    |   |   | $ | (351 | ) |   | $ | (110 | ) |
|                                                                                                                                                                                                                                      |   |                                                 |   |   |   |   |   |   |   |   |   |   |
| ________(1)      The change in interest due to both rate and volume has been allocated to      the volume and rate components in proportion to the relationship of the      dollar amounts of the absolute change in each.                |   |
| (2)      Interest income includes the effects of a tax equivalent adjustment using      applicable statutory tax rates in adjusting tax exempt interest on tax      exempt investment securities and loans to a fully taxable      basis. |   |

----

Table of Contents

| Indirect      Loan Portfolio Statistics                    |   |
|------------------------------------------------------------|--------|
|                                                       |   | As      of or For the Quarter Ended |   |
| (Dollars      in thousands)                                |   | Mar      2009 |   |   | Dec      2008 |   |   | Sept      2008 |   |   | June      2008 |   |   | Mar      2008 |   |
| 30-89      days delinquent                                 |   | $ | 3,245 |   |   | $ | 5,542 |   |   | $ | 3,782 |   |   | $ | 2,193 |   |   | $ | 2,682 |   |
| Non      accrual                                           |   | $ | 1,677 |   |   | $ | 1,878 |   |   | $ | 1,317 |   |   | $ | 1,220 |   |   | $ | 3,543 |   |
| Total      delinquencies                                   |   |   | 6.85 | % |   |   | 9.05 | % |   |   | 5.56 | % |   |   | 3.44 | % |   |   | 5.55 | % |
| Net      charge offs for the quarter                       |   | $ | 2,213 |   |   | $ | 2,300 |   |   | $ | 2,707 |   |   | $ | 3,951 |   |   | $ | 1,662 |   |
| Net      (gain)/loss on disposition of vehicles            |   | $ | (79 | ) |   | $ | 40 |   |   | $ | 149 |   |   | $ | (55 | ) |   | $ | 1,208 |   |
| Number      of vehicles sold during the quarter            |   |   | 267 |   |   |   | 638 |   |   |   | 314 |   |   |   | 271 |   |   |   | 245 |   |
| External      collection costs incurred during the quarter |   | $ | 104 |   |   | $ | 464 |   |   | $ | 331 |   |   | $ | 306 |   |   | $ | 240 |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (Dollars      in thousands)                         |   | 2009    |   |   | 2008   |    |
|-----------------------------------------------------|--------|---------|--------|--------|--------|---------|
| Service      charges on deposit accounts            |   |  $ | 966    |   |   |  $ | 722 |   |
| Investment      securities gains, net               |   |    | 596    |   |   |    | 910 |   |
| Fees      on mortgage loans sold                    |   |    | 115    |   |   |    | 232 |   |
| Investment      advisory fees                       |   |    | 193    |   |   |    | 125 |   |
| Debit      card income                              |   |    | 184    |   |   |    | 186 |   |
| Earnings      on bank owned life insurance policies |   |    | 130    |   |   |    | 126 |   |
| Other                                               |   |    | 195    |   |   |    | 160 |   |
| Total      non-interest income                      |   |  $ | 2,379  |   |   |  $ | 2,461 |   |
|                                                |   |    |   |   |   |    |   |   |

----

Table of Contents

| (Dollars      in thousands)                    |   | 2009    |   |   | 2008   |    |
|------------------------------------------------|--------|---------|--------|--------|--------|---------|
| Salary      and employee benefits              |   | $       | 7,380  |   |   | $       | 6,053 |   |
| Net      occupancy expense                     |   |    | 2,152  |   |   |    | 2,014 |   |
| Accounting,      legal, and other professional |   |    | 604    |   |   |    | 699 |   |
| Computer      services                         |   |    | 625    |   |   |    | 590 |   |
| Collection      costs                          |   |    | 104    |   |   |    | 240 |   |
| Postage,      courier and armored car          |   |    | 251    |   |   |    | 229 |   |
| Marketing      and community relations         |   |    | 279    |   |   |    | 362 |   |
| Operating      supplies                        |   |    | 142    |   |   |    | 138 |   |
| Directors’      fees                     |   |    | 231    |   |   |    | 195 |   |
| Travel      expenses                           |   |    | 83     |   |   |    | 61 |   |
| FDIC      and state assessments                |   |    | 570    |   |   |    | 289 |   |
| Amortization      of intangibles               |   |    | 233    |   |   |    | 205 |   |
| Repossessed      asset expenses                |   |    | (69    | )      |   |    | 1,220 |   |
| OREO      write downs and expenses             |   |    | 320    |   |   |    | 306 |   |
| Other      operating expenses                  |   |    | 462    |   |   |    | 425 |   |
| Total      non-interest expenses               |   |  $ | 13,367 |   |   |  $ | 13,026 |   |
|                                           |   |    |   |   |   |    |   |   |

----

Table of Contents

|                                  |   | March      31, 2009         |    |   | December      31, 2008      |   |
|---------------------------------------|--------|-----------------------------|---------|--------|-----------------------------|--------|
| (Dollars      in thousands)           |   | Commercial      Real Estate |    |   | Percentage      Composition |   |   | Commercial      Real Estate |   |   | Percentage      Composition |   |
| Mixed      Use Commercial/Residential |   | $                           | 116,178 |   |                        |   | 17 | % |   | $ | 108,165 |   |   |   | 16 | % |
| 1-4      Family and Multi Family      |   |                        | 82,706  |   |                        |   | 12 | % |   |   | 105,159 |   |   |   | 16 | % |
| Hotels/Motels                         |   |                        | 95,765  |   |                        |   | 14 | % |   |   | 90,091 |   |   |   | 14 | % |
| Guesthouses                           |   |                        | 84,578  |   |                        |   | 13 | % |   |   | 88,512 |   |   |   | 14 | % |
| Office      Buildings                 |   |                        | 105,141 |   |                        |   | 16 | % |   |   | 84,993 |   |   |   | 13 | % |
| Retail      Buildings                 |   |                        | 72,337  |   |                        |   | 11 | % |   |   | 71,184 |   |   |   | 11 | % |
| Restaurants                           |   |                        | 48,391  |   |                        |   | 7 | % |   |   | 47,680 |   |   |   | 7 | % |
| Marinas/Docks                         |   |                        | 20,015  |   |                        |   | 3 | % |   |   | 20,130 |   |   |   | 3 | % |
| Warehouse      and Industrial         |   |                        | 28,256  |   |                        |   | 5 | % |   |   | 29,031 |   |   |   | 4 | % |
| Other                                 |   |                        | 13,413  |   |                        |   | 2 | % |   |   | 13,571 |   |   |   | 2 | % |
| Total                                 |   | $                           | 666,780 |   |                        |   | 100 | % |   | $ | 658,516 |   |   |   | 100 | % |
|                                  |   |                        |    |   |                        |   |   |   |   |   |   |   |   |   |   |   |

|                                          |   | March      31, 2009               |    |   | December      31, 2008      |   |
|-----------------------------------------------|--------|-----------------------------------|---------|--------|-----------------------------|--------|
|                                          |   | Construction      and Vacant Land |    |   | Percentage      Composition |   |   | Construction      and Vacant Land |   |   | Percentage      Composition |   |
| Construction:                                 |   |                              |    |   |                        |   |   |   |   |   |   |   |
| Residential – owner      occupied       |   | $                                 | 10,768  |   |                        |   | 7 | % |   | $ | 11,866 |   |   |   | 8 | % |
| Residential – commercial      developer |   |                              | 25,269  |   |                        |   | 18 | % |   |   | 21,052 |   |   |   | 14 | % |
| Commercial    structure                       |   |                              | 11,629  |   |                        |   | 8 | % |   |   | 18,629 |   |   |   | 13 | % |
|                                          |   |                              | 47,666  |   |                        |   | 33 | % |   |   | 51,547 |   |   |   | 35 | % |
| Land:                                         |   |                              |    |   |                        |   |   |   |   |   |   |   |   |   |   |   |
| Raw land                                      |   |                              | 25,869  |   |                        |   | 18 | % |   |   | 25,890 |   |   |   | 18 | % |
| Residential    lots                           |   |                              | 12,296  |   |                        |   | 9 | % |   |   | 13,041 |   |   |   | 9 | % |
| Land    development                           |   |                              | 19,646  |   |                        |   | 14 | % |   |   | 19,975 |   |   |   | 13 | % |
| Commerciallots                                |   |                              | 36,698  |   |                        |   | 26 | % |   |   | 36,856 |   |   |   | 25 | % |
| Total      land                               |   |                              | 94,509  |   |                        |   | 67 | % |   |   | 95,762 |   |   |   | 65 | % |
|                                          |   |                              |    |   |                        |   |   |   |   |   |   |   |   |   |   |   |
| Total                                         |   | $                                 | 142,175 |   |                        |   | 100 | % |   | $ | 147,309 |   |   |   | 100 | % |
|                                          |   |                              |    |   |                        |   |   |   |   |   |   |   |   |   |   |   |

----

Table of Contents

| (Dollars      in thousands)                                                      |   | March      31, 2009 |   |   | December      31, 2008 |   |
|----------------------------------------------------------------------------------|--------|--------------------------|--------|--------|------------------------|--------|
| Total      non-accrual loans (a)                                                 |   | $                        | 45,647 |   |                   | $      | 39,776 |   |
| Accruing      loans delinquent 90 days or more                                   |   |                     | -      |   |                   |   | - |   |
| Total      non-performing loans                                                  |   |                     | 45,647 |   |                   |   | 39,776 |   |
|                                                                             |   |                     |   |   |                   |   |   |   |
| Non-accrual      investment securities                                           |   |                     | 740    |   |                   |   | 763 |   |
| Repossessed      personal property (primarily indirect auto dealer loans)        |   |                     | 407    |   |                   |   | 601 |   |
| Other      real estate owned                                                     |   |                     | 5,032  |   |                   |   | 4,323 |   |
| Other      assets (b)                                                            |   |                     | 2,080  |   |                   |   | 2,076 |   |
| Total  non-performing      assets                                      |   | $                        | 53,906 |   |                   | $      | 47,539 |   |
|                                                                             |   |                     |   |   |                   |   |   |   |
| Allowance      for loan losses                                                   |   | $                        | 25,488 |   |                   | $      | 23,783 |   |
|                                                                             |   |                     |   |   |                   |   |   |   |
| Non-performing      assets as a percent of total assets                          |   |                     | 2.94   | %      |                   |   | 2.95 | % |
| Non-performing      loans as a percent of total loans                            |   |                     | 3.74   | %      |                   |   | 3.25 | % |
| Allowance      for loan losses as a percent of non-performing loans              |   |                     | 55.84  | %      |                   |   | 59.79 | % |
| Annualized      net charge-offs for the quarter as a percent of average    loans |   |                     | 1.19   | %      |                   |   | 3.02 | % |
|                                                                             |   |                     |   |   |                   |   |   |   |

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

| (Dollars      in thousands)                 |   | March      31, 2009  |   |   | December      31, 2008   |   |
|---------------------------------------------|--------|----------------------|--------|--------|--------------------------|--------|
| Collateral      Description                 |   | Number      of Loans |   |   | Outstanding      Balance |   |   | Number      of Loans |   |   | Outstanding      Balance |   |
| Residential                                 |   |                 | 15     |   |                     | $      | 3,815 |   |   |   | 18 |   |   | $ | 4,014 |   |
| Commercial      1-4 family investment       |   |                 | 10     |   |                     |   | 7,892 |   |   |   | 9 |   |   |   | 7,943 |   |
| Commercial      and agricultural            |   |                 | 8      |   |                     |   | 659 |   |   |   | 2 |   |   |   | 64 |   |
| Commercial      real estate                 |   |                 | 20     |   |                     |   | 13,719 |   |   |   | 18 |   |   |   | 13,133 |   |
| Commercial      land development            |   |                 | 6      |   |                     |   | 17,707 |   |   |   | 5 |   |   |   | 12,584 |   |
| Government      guaranteed loans            |   |                 | 3      |   |                     |   | 143 |   |   |   | 3 |   |   |   | 143 |   |
| Indirect      auto, auto and consumer loans |   |                 | 162    |   |                     |   | 1,712 |   |   |   | 155 |   |   |   | 1,895 |   |
|                                        |   |                 |   |   |                     | $      | 45,647 |   |   |   |   |   |   | $ | 39,776 |   |
|                                        |   |                 |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |

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

----

Table of Contents

| Nonaccrual      Loan Activity (Other Than Indirect Auto and Consumer)(Dollars      in thousands) |   |
|--------------------------------------------------------------------------------------------------|--------|
|                                                                                             |   |   |   |
| Nonaccrual      loans at December 31, 2008                                                       |   | $ | 37,881 |   |
| Net      principal paid down on nonaccrual loans                                                 |   |   | (512 | ) |
| Charge-offs                                                                                      |   |   | (1,391 | ) |
| Loans      foreclosed                                                                            |   |   | (928 | ) |
| Loans      placed on nonaccrual                                                                  |   |   | 8,885 |   |
| Nonaccrual      loans at March 31, 2009                                                          |   | $ | 43,935 |   |
|                                                                                             |   |   |   |   |

| OREO      Activity(Dollars      in thousands) |
|-----------------------------------------------|
|                                          |   |   |
| OREO      as of December 31, 2008             |  $ | 4,323 |
| Real      estate acquired                     |   | 928 |
| Write-down      of value                      |   | (111) |
| Property      sold                            |   | (108) |
| OREO      as of March 31, 2009                |  $ | $5,032 |
|                                          |   |   |

| (Dollars in      thousands)                            |   | March      31, 2009 |   |   | December      31, 2008 |   |
|--------------------------------------------------------|--------|---------------------|--------|--------|------------------------|--------|
| Loans      with no allocated allowance for loan losses |   | $                   | 27,289 |   |                   | $      | 8,344 |   |
| Loans      with allocated allowance for loan losses    |   |                | 60,783 |   |                   |   | 53,765 |   |
| Total                                                  |   | $                   | 88,072 |   |                   | $      | 62,109 |   |
|                                                   |   |                |   |   |                   |   |   |   |
| Amount      of the allowance for loan losses allocated |   | $                   | 7,947  |   |                   | $      | 6,116 |   |
|                                                   |   |                |   |   |                   |   |   |   |

----

Table of Contents

----

Table of Contents

| (Dollars      in thousands)                                                    |   | 3      Monthsor      Less |     |   | 4      to 6Months |   |     | 7      to 12Months |   |   | 1      to 5Years |   |   | Over      5Years |     |   | Total  |   |
|--------------------------------------------------------------------------------|--------|---------------------------|----------|--------|-------------------|--------|----------|--------------------|--------|--------|------------------|--------|--------|------------------|----------|--------|--------|--------|
| Interest-earning      assets:                                                  |   |                      |     |   |              |   |     |               |   |   |             |   |   |             |     |   |   |   |
| Loans                                                                          |   | $                         | 364,372  |   |              | $      | 71,829   |               |   | $      | 76,325           |   |   | $                | 582,111  |   |   | $      | 123,954 |   |   | $ | 1,218,591 |   |
| Investment      securities-taxable                                             |   |                      | 26,530   |   |              |   | 13,560   |               |   |   | 18,076           |   |   |             | 64,344   |   |   |   | 266,395 |   |   |   | 388,905 |   |
| Investment      securities-tax exempt                                          |   |                      | -        |   |              |   | -        |               |   |   | -                |   |   |             | 3,646    |   |   |   | 4,306 |   |   |   | 7,952 |   |
| Marketable      equity securities                                              |   |                      | 19       |   |              |   | -        |               |   |   | -                |   |   |             | -        |   |   |   | - |   |   |   | 19 |   |
| Money      Market Mutual Funds                                                 |   |                      | 70,101   |   |              |   | -        |               |   |   | -                |   |   |             | -        |   |   |   | - |   |   |   | 70,101 |   |
| FHLB      stock                                                                |   |                      | 12,022   |   |              |   | -        |               |   |   | -                |   |   |             | -        |   |   |   | - |   |   |   | 12,022 |   |
| Federal      funds sold and securities purchased under agreements to    resell |   |                      | 17,653   |   |              |   | -        |               |   |   | -                |   |   |             | -        |   |   |   | - |   |   |   | 17,653 |   |
| Interest-bearing      deposits in other banks                                  |   |                      | 16,028   |   |              |   | -        |               |   |   | -                |   |   |             | -        |   |   |   | - |   |   |   | 16,028 |   |
| Total      interest-earning assets                                             |   |                      | 506,725  |   |              |   | 85,389   |               |   |   | 94,401           |   |   |             | 650,101  |   |   |   | 394,655 |   |   |   | 1,731,271 |   |
|                                                                           |   |                      |     |   |              |   |     |               |   |   |             |   |   |             |     |   |   |   |   |   |   |   |   |   |
| Interest-bearing      liabilities:                                             |   |                      |     |   |              |   |     |               |   |   |             |   |   |             |     |   |   |   |   |   |   |   |   |   |
| NOW      accounts                                                              |   |                      | 174,524  |   |              |   | -        |               |   |   | -                |   |   |             | -        |   |   |   | - |   |   |   | 174,524 |   |
| Money      market                                                              |   |                      | 204,974  |   |              |   | -        |               |   |   | -                |   |   |             | -        |   |   |   | - |   |   |   | 204,974 |   |
| Savings      deposits                                                          |   |                      | 114,806  |   |              |   | -        |               |   |   | -                |   |   |             | -        |   |   |   | - |   |   |   | 114,806 |   |
| Time      deposits                                                             |   |                      | 198,786  |   |              |   | 166,075  |               |   |   | 256,577          |   |   |             | 137,623  |   |   |   | - |   |   |   | 759,061 |   |
| Subordinated      debentures                                                   |   |                      | 25,000   |   |              |   | -        |               |   |   | -                |   |   |             | -        |   |   |   | 8,000 |   |   |   | 33,000 |   |
| Other      borrowings                                                          |   |                      | 101,376  |   |              |   | 2,900    |               |   |   | 10,000           |   |   |             | 118,750  |   |   |   | - |   |   |   | 233,026 |   |
| Total      interest-bearing liabilities                                        |   |                      | 819,466  |   |              |   | 168,975  |               |   |   | 266,577          |   |   |             | 256,373  |   |   |   | 8,000 |   |   |   | 1,519,391 |   |
|                                                                           |   |                      |     |   |              |   |     |               |   |   |             |   |   |             |     |   |   |   |   |   |   |   |   |   |
| Interest      sensitivity gap                                                  |   | $                         | (312,741 | )      |              | $      | (83,586  | )                  |   | $      | (172,176         | )      |   | $                | 393,728  |   |   | $      | 386,655 |   |   | $ | 211,880 |   |
|                                                                           |   |                      |     |   |              |   |     |               |   |   |             |   |   |             |     |   |   |   |   |   |   |   |   |   |
| Cumulative      interest sensitivity gap                                       |   | $                         | (312,741 | )      |              | $      | (396,327 | )                  |   | $      | (568,503         | )      |   | $                | (174,775 | )      |   | $      | 211,880 |   |   | $ | 211,880 |   |
|                                                                           |   |                      |     |   |              |   |     |               |   |   |             |   |   |             |     |   |   |   |   |   |   |   |   |   |
| Cumulative      sensitivity ratio                                              |   |                      | (18.1    | %)     |              |   | (22.9    | %)                 |   |   | (32.8            | %)     |   |             | (10.1    | %)     |   |   | 12.2 | % |   |   | 12.2 | % |
|                                                                           |   |                      |     |   |              |   |     |               |   |   |             |   |   |             |     |   |   |   |   |   |   |   |   |   |

----

Table of Contents

Item 3.  

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

----

Table of Contents

Item 4.

----

Table of Contents

Item 1a. 

Item 5. 

Item 6.

|   | 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 |
|   |              |   |                                                                                                             |

----

Table of Contents

|                                                            |   | TIB      FINANCIAL CORP.                                                                      |
|-----------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------|
|   Date:  May      11,   2009 |   |     /s/      Thomas J. Longe                                              |
|                                                            |   | Thomas      J. LongeChairman      and Chief Executive Officer                                 |
|                                                            |   |                                                                                          |
|   Date:  May      11,   2009 |   |     /s/      Stephen J. Gilhooly                                          |
|                                                            |   | Stephen      J. GilhoolyExecutive      Vice President, Chief Financial Officer and  Treasurer |