----

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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

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**FORM      10-Q**

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

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**TIB      FINANCIAL CORP.**

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| FLORIDA                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                               | 65-0655973                                          |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------|-----------------------------------------------------|
| (State                or other jurisdiction of incorporation or organization)                                                                                                                                                                                                                                                                                                                                                                                                                                 |                               | (I.R.S.                Employer Identification No.) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                               |                                                |
| 599                9th                STREET NORTH, SUITE 101, NAPLES, FLORIDA 34102-5624                                                                                                                                                                                                                                                                                                                                                                                                                     |
| (Address                of principal executive offices) (Zip Code)                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                               |                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | (239)                263-3344      |                                                |
| (Registrant’s                telephone number, including area code)                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                               |                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Not                Applicable      |                                                |
| (Former                name, former address and former fiscal year, if changed since last                report)                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                               |                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                               |                                                |
| Indicate                by check mark whether the registrant (1) has filed all reports required                to                be filed by Section 13 or 15(d) of the Securities Exchange Act of                1934                during the preceding 12 months (or for such shorter period that the                registrant was required to file such reports), and (2) has been subject                to                such filing requirements for the past 90 days. TYes                £No |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                               |                                                |
| Indicate                by check mark whether the registrant is a large accelerated filer,                an                accelerated filer, or a non-accelerated filer. See definition of                “accelerated filer and large accelerated filer” in Rule 12b-2 of the                Exchange Act (Check one):                                                                                                                                                                         |
| £                Large accelerated filer                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | T                Accelerated filer | £                Non-accelerated filer         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                               |                                                |
| Indicate                by check mark whether the registrant is a shell company (as defined                in                Rule 12b-2 of the Exchange Act). £Yes                TNo                                                                                                                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                               |                                                |
| Indicate                the number of shares outstanding of each of the issuer’s classes of common                stock, as of the latest practicable date:                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                               |                                                |
| Common                Stock, $0.10 Par Value                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                               | 5,841,820                                           |
| Class                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                               | Outstanding                as of July 31, 2006      |

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**TIB      FINANCIAL CORP.**

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**INDEX**

|  **PART I. FINANCIAL              INFORMATION** |                                                                                                                                            |
|------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                 |  Item 1.                Financial Statements                                                                                     |  1 |
|                                                 |  Item              2.   Management’s Discussion and Analysis of              Financial Condition and Results of Operations |  14 |
|                                                 |  Item 3.                Quantitative and Qualitative Disclosures About Market Risk                                               |  24 |
|                                                 |  Item 4.                Controls and Procedures                                                                                  |  25 |
|                                                 |                                                                                                                                            |   |
|  **PART II. OTHER              INFORMATION**    |                                                                                                                                            |
|                                                 |  Item              1a. Risk Factors                                                                                                        |  26 |
|                                                 |  Item 4.                Submission of Matters to a Vote of Security Holders                                                      |  26 |
|                                                 |  Item 5.                Other Information                                                                                        |  26 |
|                                                 |  Item              6.   Exhibits                                                                                                 |  26 |

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Table            of Contents

**PART      I. FINANCIAL INFORMATION**

**Item      1. Financial Statements**

| **TIB                FINANCIAL CORP.****CONSOLIDATED                BALANCE SHEETS***(Dollars                in thousands, except per share amounts)* |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                  |   | **June                30, 2006** |   | **December                31, 2005** |   |
|                                                                                                                                                  |   | (Unaudited) |   |   |   |
| **Asset**s                                                                                                                                            |   |   |   |   |   |   |   |
| Cash                and due from banks                                                                                                                |   | $ | 21,704 |   | $ | 24,347 |   |
| Federal                funds sold                                                                                                                     |   |   | 17,669 |   |   | 17,163 |   |
| Cash                and cash equivalents                                                                                                              |   |   | 39,373 |   |   | 41,510 |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |
| Investment                securities available for sale                                                                                               |   |   | 125,627 |   |   | 97,464 |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |
| Loans,                net of deferred loan costs and fees                                                                                             |   |   | 1,004,307 |   |   | 884,024 |   |
| Less:                Allowance for loan losses                                                                                                        |   |   | 8,426 |   |   | 7,546 |   |
| Loans,                net                                                                                                                             |   |   | 995,881 |   |   | 876,478 |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |
| Premises                and equipment, net                                                                                                            |   |   | 33,557 |   |   | 27,800 |   |
| Intangible                assets, net                                                                                                                 |   |   | 956 |   |   | 1,100 |   |
| Accrued                interest receivable and other assets                                                                                           |   |   | 36,628 |   |   | 31,718 |   |
| Total                Assets                                                                                                                           |   | $ | 1,232,022 |   | $ | 1,076,070 |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |
| **Liabilities                and Shareholders’ Equity**                                                                                         |   |   |   |   |   |   |   |
| **Liabilities**                                                                                                                                       |   |   |   |   |   |   |   |
| Deposits:                                                                                                                                             |   |   |   |   |   |   |   |
| Noninterest-bearing                demand                                                                                                             |   | $ | 176,271 |   | $ | 169,816 |   |
| Interest-bearing                                                                                                                                      |   |   | 843,017 |   |   | 750,608 |   |
| Total                deposits                                                                                                                         |   |   | 1,019,288 |   |   | 920,424 |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |
| Federal                Home Loan Bank (FHLB) advances                                                                                                 |   |   | 60,000 |   |   | 25,000 |   |
| Short-term                borrowings                                                                                                                  |   |   | 20,179 |   |   | 17,284 |   |
| Long-term                borrowings                                                                                                                   |   |   | 37,000 |   |   | 17,000 |   |
| Accrued                interest payable and other liabilities                                                                                         |   |   | 15,029 |   |   | 18,838 |   |
| Total                liabilities                                                                                                                      |   |   | 1,151,496 |   |   | 998,546 |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |
| **Shareholders’                equity**                                                                                                         |   |   |   |   |   |   |   |
| Preferred                stock - no par value: 5,000,000 shares authorized, 0 shares                issued                                            |   |   | - |   |   | - |   |
| Common                stock - $.10 par value: 20,000,000 shares authorized, 5,841,420 and                5,792,598 shares issued                      |   |   | 584 |   |   | 579 |   |
| Additional                paid in capital                                                                                                             |   |   | 40,457 |   |   | 39,552 |   |
| Retained                earnings                                                                                                                      |   |   | 41,623 |   |   | 38,136 |   |
| Accumulated                other comprehensive loss                                                                                                   |   |   | (2,138 | ) |   | (743 | ) |
| Total                shareholders’ equity                                                                                                       |   |   | 80,526 |   |   | 77,524 |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |
| Total                Liabilities and Shareholders’ Equity                                                                                       |   | $ | 1,232,022 |   | $ | 1,076,070 |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |
| *See                accompanying notes to consolidated financial                statements*                                                           |

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Table            of Contents

| **TIB                FINANCIAL CORP.****CONSOLIDATED                STATEMENTS OF INCOME****(Unaudited)** |
|-----------------------------------------------------------------------------------------------------------|
|                                                                                                           |   | **Three                Months Ended****June                30,** |  | **Six                Months Ended****June                30,** |
| *(Dollars                in thousands, except per share amounts)*** **                               |   |   | **2006** |   |   | **2005** |   |   | **2006** |   |   | **2005** |   |
| **Interest                and dividend income**                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans,                including fees                                                                      |   | $ | 19,013 |   | $ | 12,934 |   | $ | 36,341 |   | $ | 24,244 |   |
| Investment                securities:                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                                                                   |   |   | 1,360 |   |   | 708 |   |   | 2,410 |   |   | 1,344 |   |
| Tax-exempt                                                                                                |   |   | 178 |   |   | 161 |   |   | 343 |   |   | 321 |   |
| Interest-bearing                deposits in other banks                                                   |   |   | 7 |   |   | 2 |   |   | 11 |   |   | 6 |   |
| Federal                Home Loan Bank stock                                                               |   |   | 54 |   |   | 31 |   |   | 90 |   |   | 58 |   |
| Federal                funds sold                                                                         |   |   | 210 |   |   | 389 |   |   | 506 |   |   | 598 |   |
| Total                interest and dividend income                                                         |   |   | 20,822 |   |   | 14,225 |   |   | 39,701 |   |   | 26,571 |   |
|                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Interest                expense**                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                                                  |   |   | 7,764 |   |   | 3,895 |   |   | 14,388 |   |   | 6,996 |   |
| Federal                Home Loan Bank advances                                                            |   |   | 504 |   |   | 193 |   |   | 745 |   |   | 368 |   |
| Short-term                borrowings                                                                      |   |   | 158 |   |   | 110 |   |   | 283 |   |   | 183 |   |
| Long-term                borrowings                                                                       |   |   | 447 |   |   | 391 |   |   | 854 |   |   | 774 |   |
| Total                interest expense                                                                     |   |   | 8,873 |   |   | 4,589 |   |   | 16,270 |   |   | 8,321 |   |
|                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Net                interest income**                                                                    |   |   | 11,949 |   |   | 9,636 |   |   | 23,431 |   |   | 18,250 |   |
|                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision                for loan losses                                                                  |   |   | 982 |   |   | 730 |   |   | 1,536 |   |   | 1,316 |   |
| Net                interest income after provision for loan losses                                        |   |   | 10,967 |   |   | 8,906 |   |   | 21,895 |   |   | 16,934 |   |
|                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Non-interest                income**                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Service                charges on deposit accounts                                                        |   |   | 576 |   |   | 567 |   |   | 1,132 |   |   | 1,175 |   |
| Fees                on mortgage loans sold                                                                |   |   | 357 |   |   | 582 |   |   | 782 |   |   | 1,074 |   |
| Other                income                                                                               |   |   | 611 |   |   | 668 |   |   | 1,080 |   |   | 1,066 |   |
| Total                non-interest income                                                                  |   |   | 1,544 |   |   | 1,817 |   |   | 2,994 |   |   | 3,315 |   |
|                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Non-interest                expense**                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Salaries                and employee benefits                                                             |   |   | 4,909 |   |   | 4,335 |   |   | 9,857 |   |   | 8,470 |   |
| Net                occupancy and equipment expense                                                        |   |   | 1,503 |   |   | 1,344 |   |   | 2,985 |   |   | 2,615 |   |
| Other                expense                                                                              |   |   | 2,342 |   |   | 1,929 |   |   | 4,485 |   |   | 3,999 |   |
| Total                non-interest expense                                                                 |   |   | 8,754 |   |   | 7,608 |   |   | 17,327 |   |   | 15,084 |   |
|                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                before income tax expense                                                           |   |   | 3,757 |   |   | 3,115 |   |   | 7,562 |   |   | 5,165 |   |
|                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                tax expense                                                                         |   |   | 1,428 |   |   | 1,118 |   |   | 2,870 |   |   | 1,820 |   |
|                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations                                                          |   |   | 2,329 |   |   | 1,997 |   |   | 4,692 |   |   | 3,345 |   |
|                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Discontinued                operations**                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                from merchant bankcard operations                                                   |   |   | 272 |   |   | 300 |   |   | 272 |   |   | 619 |   |
| Income                tax expense                                                                         |   |   | 105 |   |   | 113 |   |   | 105 |   |   | 233 |   |
| Income                from discontinued operations                                                        |   |   | 167 |   |   | 187 |   |   | 167 |   |   | 386 |   |
|                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Net                income**                                                                             |   | $ | 2,496 |   | $ | 2,184 |   | $ | 4,859 |   | $ | 3,731 |   |
|                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Basic                earnings per common share**                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Continuing                operations                                                                      |   | $ | 0.40 |   | $ | 0.35 |   | $ | 0.81 |   | $ | 0.59 |   |
| Discontinued                operations                                                                    |   |   | 0.03 |   |   | 0.03 |   |   | 0.03 |   |   | 0.07 |   |
| Basic                earnings per share                                                                   |   | $ | 0.43 |   | $ | 0.38 |   | $ | 0.84 |   | $ | 0.66 |   |
|                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Diluted                earnings per common share**                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Continuing                operations                                                                      |   | $ | 0.39 |   | $ | 0.34 |   | $ | 0.79 |   | $ | 0.57 |   |
| Discontinued                operations                                                                    |   |   | 0.03 |   |   | 0.03 |   |   | 0.03 |   |   | 0.07 |   |
| Diluted                earnings per share                                                                 |   | $ | 0.42 |   | $ | 0.37 |   | $ | 0.82 |   | $ | 0.64 |   |
|                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| *See                accompanying notes to consolidated financial                statements*               |

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Table          of Contents

**TIB      FINANCIAL CORP.**

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

**(Unaudited)**

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

|                                                                                           |   |   |             |   |   |                            |   |   |                                          |   |   |                                 |   |   |                                                             |   |   |                                                |   |
|------------------------------------------------------------------------------------------------|--------|--------|------------------|--------|--------|---------------------------------|--------|--------|-----------------------------------------------|--------|--------|--------------------------------------|--------|--------|------------------------------------------------------------------|--------|--------|-----------------------------------------------------|--------|
|                                                                                                |   |   | **Shares**  |   |   | **Common                Stock** |   |   | **Additional                Paid in Capital** |   |   | **Retained                Earnings** |   |   | **Accumulated                Other Comprehensive Income (Loss)** |   |   | **Total                Shareholders’ Equity** |   |
| **Balance,                April 1, 2006**                                                      |   |   | 5,834,038        |   | $      | 583                             |   | $      | 40,157                                        |   | $      | 39,813                               |   | $      | (876                                                             | )      | $      | 79,677                                              |   |
| Comprehensive                income:                                                           |   |   |             |   |   |                            |   |   |                                          |   |   |                                 |   |   |                                                             |   |   |                                                |   |
| Net                income                                                                      |   |   |             |   |   |                            |   |   |                                          |   |   | 2,496                                |   |   |                                                             |   |   | 2,496                                               |   |
| Other                comprehensive income, net of tax benefit of $816:                         |   |   |             |   |   |                            |   |   |                                          |   |   |                                 |   |   |                                                             |   |   |                                                |   |
| Net                market valuation adjustment on securities available for                sale |   |   |             |   |   |                            |   |   |                                          |   |   |                                 |   |   | (1,262                                                           | )      |   |                                                |   |
| Other                comprehensive income, net of tax                                          |   |   |             |   |   |                            |   |   |                                          |   |   |                                 |   |   |                                                             |   |   | (1,262                                              | )      |
| Comprehensive                income                                                            |   |   |             |   |   |                            |   |   |                                          |   |   |                                 |   |   |                                                             |   | $      | 1,234                                               |   |
| Restricted                stock cancellations                                                  |   |   | (5,000           | )      |   |                            |   |   |                                          |   |   |                                 |   |   |                                                             |   |   |                                                |   |
| Stock-based                compensation                                                        |   |   |             |   |   |                            |   |   | 154                                           |   |   |                                 |   |   |                                                             |   |   | 154                                                 |   |
| Exercise                of stock options                                                       |   |   | 12,382           |   |   | 1                               |   |   | 142                                           |   |   |                                 |   |   |                                                             |   |   | 143                                                 |   |
| Income                tax benefit from stock options exercised                                 |   |   |             |   |   |                            |   |   | 4                                             |   |   |                                 |   |   |                                                             |   |   | 4                                                   |   |
| Cash                dividends declared, $.1175 per share                                       |   |   |             |   |   |                            |   |   |                                          |   |   | (686                                 | )      |   |                                                             |   |   | (686                                                | )      |
| **Balance,                June 30, 2006**                                                      |   |   | 5,841,420        |   | $      | 584                             |   | $      | 40,457                                        |   | $      | 41,623                               |   | $      | (2,138                                                           | )      | $      | 80,526                                              |   |
|                                                                                           |   |   |             |   |   |                            |   |   |                                          |   |   |                                 |   |   |                                                             |   |   |                                                |   |
|                                                                                           |   |   |             |   |   |                            |   |   |                                          |   |   |                                 |   |   |                                                             |   |   |                                                |   |

|                                                                                               |   |   |             |   |   |                              |   |   |                                            |   |   |                                   |   |
|----------------------------------------------------------------------------------------------------|--------|--------|------------------|--------|--------|-----------------------------------|--------|--------|-------------------------------------------------|--------|--------|----------------------------------------|--------|
|                                                                                                    |   |   | **Shares**  |   |   | **Common                  Stock** |   |   | **Additional                  Paid in Capital** |   |   | **Retained                  Earnings** |   |   | **Accumulated                  Other Comprehensive Income (Loss)** |   |   | **Total                  Shareholders’ Equity** |   |
| **Balance,                  April 1, 2005**                                                        |   |   | 5,706,939        |   | $      | 571                               |   | $      | 38,629                                          |   | $      | 29,859                                 |   | $ | (780 | ) | $ | 68,279 |   |
| Comprehensive                  income:                                                             |   |   |             |   |   |                              |   |   |                                            |   |   |                                   |   |   |   |   |   |   |   |
| Net                  income                                                                        |   |   |             |   |   |                              |   |   |                                            |   |   | 2,184                                  |   |   |   |   |   | 2,184 |   |
| Other                  comprehensive income, net of tax expense of $509:                           |   |   |             |   |   |                              |   |   |                                            |   |   |                                   |   |   |   |   |   |   |   |
| Net                  market valuation adjustment on securities available for                  sale |   |   |             |   |   |                              |   |   |                                            |   |   |                                   |   |   | 848 |   |   |   |   |
| Other                  comprehensive income, net of tax                                            |   |   |             |   |   |                              |   |   |                                            |   |   |                                   |   |   |   |   |   | 848 |   |
| Comprehensive                  income                                                              |   |   |             |   |   |                              |   |   |                                            |   |   |                                   |   |   |   |   | $ | 3,032 |   |
| Exercise                  of stock options                                                         |   |   | 5,325            |   |   |                              |   |   | 58                                              |   |   |                                   |   |   |   |   |   | 58 |   |
| Income                  tax benefit from stock options exercised                                   |   |   |             |   |   |                              |   |   | 28                                              |   |   |                                   |   |   |   |   |   | 28 |   |
| Cash                  dividends declared, $.115 per share                                          |   |   |             |   |   |                              |   |   |                                            |   |   | (657                                   | )      |   |   |   |   | (657 | ) |
| **Balance,                  June 30, 2005**                                                        |   |   | 5,712,264        |   | $      | 571                               |   | $      | 38,715                                          |   | $      | 31,386                                 |   | $ | 68 |   | $ | 70,740 |   |
|                                                                                               |   |   |             |   |   |                              |   |   |                                            |   |   |                                   |   |   |   |   |   |   |   |

*Continued *

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Table          of Contents

|                                                                                                  |   |   |       |   |   |                            |   |   |                                          |   |   |                                 |   |
|-------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|---------------------------------|--------|--------|-----------------------------------------------|--------|--------|--------------------------------------|--------|
|                                                                                                       |   |   | **Shares** |   |   | **Common                Stock** |   |   | **Additional                Paid in Capital** |   |   | **Retained                Earnings** |   |   | **Accumulated                Other Comprehensive Income (Loss)** |   |   | **Total                Shareholders’ Equity** |   |
| **Balance,                January 1, 2006**                                                           |   |   | 5,792,598  |   | $      | 579                             |   | $      | 39,552                                        |   | $      | 38,136                               |   | $ | (743 | ) | $ | 77,524 |   |
| Comprehensive                income:                                                                  |   |   |       |   |   |                            |   |   |                                          |   |   |                                 |   |   |   |   |   |   |   |
| Net                income                                                                             |   |   |       |   |   |                            |   |   |                                          |   |   | 4,859                                |   |   |   |   |   | 4,859 |   |
| Other                comprehensive income, net of tax benefit of $896:                                |   |   |       |   |   |                            |   |   |                                          |   |   |                                 |   |   |   |   |   |   |   |
| Net                market valuation adjustment on securities available for                sale        |   |   |       |   |   |                            |   |   |                                          |   |   |                                 |   |   | (1,395 | ) |   |   |   |
| Other                comprehensive income, net of tax                                                 |   |   |       |   |   |                            |   |   |                                          |   |   |                                 |   |   |   |   |   | (1,395 | ) |
| Comprehensive                income                                                                   |   |   |       |   |   |                            |   |   |                                          |   |   |                                 |   |   |   |   | $ | 3,464 |   |
| Restricted                stock cancellations, net of 4,340 restricted stock                issuances |   |   | (660       | )      |   |                            |   |   |                                          |   |   |                                 |   |   |   |   |   |   |   |
| Stock-based                compensation                                                               |   |   |       |   |   |                            |   |   | 270                                           |   |   |                                 |   |   |   |   |   | 270 |   |
| Exercise                of stock options                                                              |   |   | 49,482     |   |   | 5                               |   |   | 599                                           |   |   |                                 |   |   |   |   |   | 604 |   |
| Income                tax benefit from stock options exercised                                        |   |   |       |   |   |                            |   |   | 36                                            |   |   |                                 |   |   |   |   |   | 36 |   |
| Cash                dividends declared, $.235 per share                                               |   |   |       |   |   |                            |   |   |                                          |   |   | (1,372                               | )      |   |   |   |   | (1,372 | ) |
| **Balance,                June 30, 2006**                                                             |   |   | 5,841,420  |   | $      | 584                             |   | $      | 40,457                                        |   | $      | 41,623                               |   | $ | (2,138 | ) | $ | 80,526 |   |
|                                                                                                  |   |   |       |   |   |                            |   |   |                                          |   |   |                                 |   |   |   |   |   |   |   |
|                                                                                                  |   |   |       |   |   |                            |   |   |                                          |   |   |                                 |   |   |   |   |   |   |   |

|                                                                                           |   |   |                                                                                              |   |   |                            |   |   |                                          |   |   |                                 |   |
|------------------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------|--------|--------|---------------------------------|--------|--------|-----------------------------------------------|--------|--------|--------------------------------------|--------|
|                                                                                           |   |   | **Shares**                                                                                   |   |   | **Common                Stock** |   |   | **Additional                Paid in Capital** |   |   | **Retained                Earnings** |   |   | **Accumulated                Other Comprehensive Income (Loss)** |   |   | **Total                Shareholders’ Equity** |   |
| **Balance,                January 1, 2005**                                                    |   |   | 5,679,239                                                                                         |   | $      | 568                             |   | $      | 38,284                                        |   | $      | 28,968                               |   | $ | 294 |   | $ | 68,114 |   |
| Comprehensive                income:                                                           |   |   |                                                                                              |   |   |                            |   |   |                                          |   |   |                                 |   |   |   |   |   |   |   |
| Net                income                                                                      |   |   |                                                                                              |   |   |                            |   |   |                                          |   |   | 3,731                                |   |   |   |   |   | 3,731 |   |
| Other                comprehensive income, net of tax benefit of $136:                         |   |   |                                                                                              |   |   |                            |   |   |                                          |   |   |                                 |   |   |   |   |   |   |   |
| Net                market valuation adjustment on securities available for                sale |   |   |                                                                                              |   |   |                            |   |   |                                          |   |   |                                 |   |   | (226 | ) |   |   |   |
| Other                comprehensive income, net of tax                                          |   |   |                                                                                              |   |   |                            |   |   |                                          |   |   |                                 |   |   |   |   |   | (226 | ) |
| Comprehensive                income                                                            |   |   |                                                                                              |   |   |                            |   |   |                                          |   |   |                                 |   |   |   |   | $ | 3,505 |   |
| Exercise                of stock options                                                       |   |   | 33,025                                                                                            |   |   | 3                               |   |   | 338                                           |   |   |                                 |   |   |   |   |   | 341 |   |
| Income                tax benefit from stock options exercised                                 |   |   |                                                                                              |   |   |                            |   |   | 93                                            |   |   |                                 |   |   |   |   |   | 93 |   |
| Cash                dividends declared, $.23 per share                                         |   |   |                                                                                              |   |   |                            |   |   |                                          |   |   | (1,313                               | )      |   |   |   |   | (1,313 | ) |
| **Balance,                June 30, 2005**                                                      |   |   | 5,712,264                                                                                         |   | $      | 571                             |   | $      | 38,715                                        |   | $      | 31,386                               |   | $ | 68 |   | $ | 70,740 |   |
|                                                                                           |   |   |                                                                                              |   |   |                            |   |   |                                          |   |   |                                 |   |   |   |   |   |   |   |
|                                                                                           |   |   | *See                accompanying notes to consolidated financial                statements*  |

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Table          of Contents

| **TIB                FINANCIAL CORP.****CONSOLIDATED                STATEMENTS OF CASH FLOWS****INCREASE                (DECREASE) IN CASH AND CASH EQUIVALENTS****(Unaudited)***(Dollars                in thousands)*** ** |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                              |   | **Six                Months Ended June 30,**  |
|                                                                                                                                                                                                                              |   |   | **2006** |   |   | **2005** |   |
| **Cash                flows from operating activities:**                                                                                                                                                                          |   |   |   |   |   |   |   |
| Net                income                                                                                                                                                                                                         |   | $ | 4,859 |   | $ | 3,731 |   |
| Adjustments                to reconcile net income to net cash provided by operating                activities:                                                                                                                   |   |   |   |   |   |   |   |
| Depreciation                and amortization                                                                                                                                                                                      |   |   | 1,328 |   |   | 1,235 |   |
| Provision                for loan losses                                                                                                                                                                                          |   |   | 1,536 |   |   | 1,316 |   |
| Deferred                income tax benefit                                                                                                                                                                                        |   |   | (192 | ) |   | (402 | ) |
| Gain                on sale of merchant bankcard processing segment                                                                                                                                                               |   |   | (272 | ) |   | - |   |
| Other                                                                                                                                                                                                                             |   |   | 183 |   |   | (312 | ) |
| Mortgage                loans originated for sale                                                                                                                                                                                 |   |   | (53,024 | ) |   | (66,210 | ) |
| Proceeds                from sales of mortgage loans                                                                                                                                                                              |   |   | 51,539 |   |   | 66,645 |   |
| Fees                on mortgage loans sold                                                                                                                                                                                        |   |   | (782 | ) |   | (1,074 | ) |
| (Increase)                decrease in accrued interest receivable and other assets                                                                                                                                                |   |   | 650 |   |   | (522 | ) |
| Increase                (decrease) in accrued interest payable and other                liabilities                                                                                                                               |   |   | (3,605 | ) |   | 4,395 |   |
| Net                cash provided by operating activities                                                                                                                                                                          |   |   | 2,220 |   |   | 8,802 |   |
|                                                                                                                                                                                                                              |   |   |   |   |   |   |   |
| **Cash                flows from investing activities:**                                                                                                                                                                          |   |   |   |   |   |   |   |
| Purchases                of investment securities available for sale                                                                                                                                                              |   |   | (37,459 | ) |   | (10,000 | ) |
| Repayments                of principal and maturities of investment securities available for                sale                                                                                                                  |   |   | 7,007 |   |   | 411 |   |
| Net                (purchase) sale of FHLB stock                                                                                                                                                                                  |   |   | (2,068 | ) |   | 129 |   |
| Loans                originated or acquired, net of principal repayments                                                                                                                                                          |   |   | (121,064 | ) |   | (119,774 | ) |
| Purchases                of premises and equipment                                                                                                                                                                                |   |   | (6,969 | ) |   | (738 | ) |
| Proceeds                from sale of premises, equipment and intangible assets                                                                                                                                                    |   |   | 168 |   |   | 609 |   |
| Net                cash used by investing activities                                                                                                                                                                              |   |   | (160,385 | ) |   | (129,363 | ) |
|                                                                                                                                                                                                                              |   |   |   |   |   |   |   |
| **Cash                flows from financing activities:**                                                                                                                                                                          |   |   |   |   |   |   |   |
| Net                increase in federal funds purchased and securities sold under agreements                to repurchase                                                                                                          |   |   | 2,895 |   |   | 5,436 |   |
| Net                increase (decrease) in FHLB short-term advances                                                                                                                                                                |   |   | 35,000 |   |   | (10,000 | ) |
| Net                proceeds from issuance of trust preferred securities                                                                                                                                                           |   |   | 19,995 |   |   | - |   |
| Repayment                of notes payable                                                                                                                                                                                         |   |   | - |   |   | (1,250 | ) |
| Net                increase in demand, money market and savings accounts                                                                                                                                                          |   |   | 52,747 |   |   | 91,829 |   |
| Net                increase in time deposits                                                                                                                                                                                      |   |   | 46,117 |   |   | 90,521 |   |
| Proceeds                from exercise of stock options                                                                                                                                                                            |   |   | 604 |   |   | 341 |   |
| Income                tax benefit from exercise of stock options                                                                                                                                                                  |   |   | 36 |   |   | 93 |   |
| Cash                dividends paid                                                                                                                                                                                                |   |   | (1,366 | ) |   | (1,309 | ) |
| Net                cash provided by financing activities                                                                                                                                                                          |   |   | 156,028 |   |   | 175,661 |   |
|                                                                                                                                                                                                                              |   |   |   |   |   |   |   |
| **Net                increase (decrease) in cash and cash equivalents**                                                                                                                                                           |   |   | (2,137 | ) |   | 55,100 |   |
| Cash                and cash equivalents at beginning of period                                                                                                                                                                   |   |   | 41,510 |   |   | 42,938 |   |
| **Cash                and cash equivalents at end of period**                                                                                                                                                                     |   | $ | 39,373 |   | $ | 98,038 |   |
|                                                                                                                                                                                                                              |   |   |   |   |   |   |   |
| **Supplemental                disclosures of cash paid:**                                                                                                                                                                         |   |   |   |   |   |   |   |
| Interest                                                                                                                                                                                                                          |   | $ | 16,103 |   | $ | 7,259 |   |
| Income                taxes                                                                                                                                                                                                       |   | $ | 6,760 |   | $ | 1,737 |   |
|                                                                                                                                                                                                                              |   |   |   |   |   |   |   |
| *See                accompanying notes to consolidated financial                statements*                                                                                                                                       |

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Table          of Contents

**TIB        FINANCIAL CORP.**

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

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

**Critical      Accounting Policies**

***Allowance      for Loan Losses***

***Earnings      Per Common Share***

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Table          of Contents

**TIB        FINANCIAL CORP.**

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

***Recent      Accounting Pronouncements***

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

|                                                        |   |                                                                     |
|-------------------------------------------------------------|--------|--------------------------------------------------------------------------|
|                                                             |   | **Six                  Months Ended****June                  30,**  |
|                                                        |   |                                                                     | **2006** |   |   | **2005** |   |
| Other                  income                               |   | $                                                                        | 272 |   | $ | 3,658 |   |
| Depreciation                  and amortization              |   |                                                                     | - |   |   | 4 |   |
| Other                  expense                              |   |                                                                     | - |   |   | 3,035 |   |
| Pretax                  income from discontinued operations |   | $                                                                        | 272 |   | $ | 619 |   |
|                                                        |   |                                                                     |   |   |   |   |   |

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Table          of Contents

**TIB        FINANCIAL CORP.**

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

**Note      3 - Investment Securities**

|                                                              |   |                                   |
|-------------------------------------------------------------------|--------|----------------------------------------|
|                                                                   |   | **June                30, 2006**  |
|                                                              |   |                                   | **Amortized                Cost**  |   |   | **Unrealized                Gains** |   |   | **Unrealized                Losses** |   |   | **Estimated                Fair Value** |   |
| U.S.                Treasury securities                           |   | $                                      | 5,084 |   | $ | - |   | $ | 205 |   | $ | 4,879 |   |
| U.S.                Government agencies and corporations          |   |                                   | 79,016 |   |   | 1 |   |   | 2,788 |   |   | 76,229 |   |
| States                and political subdivisions—tax exempt |   |                                   | 11,126 |   |   | 38 |   |   | 248 |   |   | 10,916 |   |
| States                and political subdivisions—taxable    |   |                                   | 2,619 |   |   | 3 |   |   | 44 |   |   | 2,578 |   |
| Mortgage-backed                securities                         |   |                                   | 18,268 |   |   | 16 |   |   | 179 |   |   | 18,105 |   |
| Marketable                equity securities                       |   |                                   | 3,000 |   |   | - |   |   | 82 |   |   | 2,918 |   |
| Collateralized                mortgage obligations                |   |                                   | 9,996 |   |   | 6 |   |   | - |   |   | 10,002 |   |
|                                                              |   | $                                      | 129,109 |   | $ | 64 |   | $ | 3,546 |   | $ | 125,627 |   |
|                                                              |   |                                   |   |   |   |   |   |   |   |   |   |   |   |

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

**Note      4 - Loans**

|                                             |   |   |                                      |   |   |                                    |   |
|--------------------------------------------------|--------|--------|-------------------------------------------|--------|--------|-----------------------------------------|--------|
|                                                  |   |   | **June                30,****2006**  |   |   | **December                31,****2005** |   |
| Real                estate mortgage loans:       |   |   |                                      |   |   |                                    |   |
| Commercial                                       |   | $      | 508,392                                   |   | $      | 451,969                                 |   |
| Residential                                      |   |   | 82,591                                    |   |   | 76,003                                  |   |
| Farmland                                         |   |   | 25,680                                    |   |   | 4,660                                   |   |
| Construction                and vacant land      |   |   | 150,604                                   |   |   | 125,207                                 |   |
| Commercial                and agricultural loans |   |   | 82,127                                    |   |   | 80,055                                  |   |
| Indirect                auto dealer loans        |   |   | 126,469                                   |   |   | 118,018                                 |   |
| Home                equity loans                 |   |   | 17,771                                    |   |   | 17,232                                  |   |
| Other                consumer loans              |   |   | 9,147                                     |   |   | 9,228                                   |   |
| Total                loans                       |   |   | 1,002,781                                 |   |   | 882,372                                 |   |
|                                             |   |   |                                      |   |   |                                    |   |
| Net                deferred loan costs           |   |   | 1,526                                     |   |   | 1,652                                   |   |
| Loans,                net of deferred loan costs |   | $      | 1,004,307                                 |   | $      | 884,024                                 |   |
|                                             |   |   |                                      |   |   |                                    |   |

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Table          of Contents

**TIB        FINANCIAL CORP.**

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

**Note      5 - Allowance for Loan Losses**

|                                                        |   |                                                     |
|-------------------------------------------------------------|--------|----------------------------------------------------------|
|                                                        |   | **Six                Months Ended June 30, **  |
|                                                        |   |                                                     | **2006** |   |   | **2005** |   |
| Balance,                January 1                           |   | $                                                        | 7,546 |   | $ | 6,243 |   |
| Provision                for loan losses charged to expense |   |                                                     | 1,536 |   |   | 1,316 |   |
| Loans                charged off                            |   |                                                     | (718 | ) |   | (604 | ) |
| Recoveries                of loans previously charged off   |   |                                                     | 62 |   |   | 58 |   |
| Balance,                June 30                             |   | $                                                        | 8,426 |   | $ | 7,013 |   |
|                                                        |   |                                                     |   |   |   |   |   |

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

|                                                      |   |                                                 |
|-----------------------------------------------------------|--------|------------------------------------------------------|
|                                                      |   | **Three                Months Ended June 30,**  |
|                                                      |   |                                                 | **2006** |   |   | **2005** |   |
| Basic                                                     |   |                                                 | 5,796,022 |   |   | 5,708,745 |   |
| Dilutive                effect of options outstanding     |   |                                                 | 128,047 |   |   | 176,850 |   |
| Dilutive                effect of restricted stock awards |   |                                                 | 5,965 |   |   | - |   |
| Diluted                                                   |   |                                                 | 5,930,034 |   |   | 5,885,595 |   |
|                                                      |   |                                                 |   |   |   |   |   |

|                                                      |   |                                     |
|-----------------------------------------------------------|--------|------------------------------------------|
|                                                      |   | Six                Months Ended June 30, |
|                                                      |   |                                     | **2006** |   |   | **2005** |   |
| Basic                                                     |   |                                     | 5,787,905 |   |   | 5,693,090 |   |
| Dilutive                effect of options outstanding     |   |                                     | 132,202 |   |   | 178,405 |   |
| Dilutive                effect of restricted stock awards |   |                                     | 4,981 |   |   | - |   |
| Diluted                                                   |   |                                     | 5,925,088 |   |   | 5,871,495 |   |
|                                                      |   |                                     |   |   |   |   |   |

**Note      7 - Stock-Based Compensation**

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Table            of Contents

**TIB          FINANCIAL CORP.**

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

|                                                                                                                               |   |   |                                                                            |   |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------|--------|--------|
|                                                                                                                                    |   |   | **Three                  Months****Ended****June                  30,****2005** |   |   | **Six                Months****Ended****June                30, 2005** |   |
| Net                income, as reported                                                                                             |   | $      | 2,184                                                                           |   | $      | 3,731 |   |
| Stock-based                compensation expense determined under fair value based method, net                of                tax |   |   | 64                                                                              |   |   | 126 |   |
| Pro                forma net income                                                                                                |   | $      | 2,120                                                                           |   | $      | 3,605 |   |
|                                                                                                                               |   |   |                                                                            |   |   |   |   |
| Basic                earnings per share as reported                                                                                |   | $      | 0.38                                                                            |   | $      | 0.66 |   |
| Pro                forma basic earnings per share                                                                                  |   |   | 0.37                                                                            |   |   | 0.63 |   |
| Diluted                earnings per share as reported                                                                              |   |   | 0.37                                                                            |   |   | 0.64 |   |
| Pro                forma diluted earnings per share                                                                                |   |   | 0.36                                                                            |   |   | 0.61 |   |
|                                                                                                                               |   |   |                                                                            |   |   |   |   |

|                                                  |   |   |                                                                           |   |   |                                                                |   |
|-------------------------------------------------------|--------|--------|--------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------|--------|
|                                                  |   |   | **Three                Months****Ended****June                30, 2006**  |   |   | **Six                Months Ended****June                30, 2006** |   |
| Stock                Options                          |   | $      | 106                                                                            |   | $      | 151                                                                 |   |
| Restricted                Stock                       |   |   | 48                                                                             |   |   | 119                                                                 |   |
| Total                stock-based compensation expense |   | $      | 154                                                                            |   | $      | 270                                                                 |   |
|                                                  |   |   |                                                                           |   |   |                                                                |   |
| Salaries                and employee benefits         |   | $      | 129                                                                            |   | $      | 190                                                                 |   |
| Other                expense                          |   |   | 25                                                                             |   |   | 80                                                                  |   |
| Total                stock-based compensation expense |   | $      | 154                                                                            |   | $      | 270                                                                 |   |
|                                                  |   |   |                                                                           |   |   |                                                                |   |

|                                                                       |   |                                                 |                       |
|----------------------------------------------------------------------------|--------|------------------------------------------------------|----------------------------|
|                                                                       |   | **Six                  Months Ended June 30,**  |
|                                                                       |   |                                                 | **2006**                   |   |   | **2005** |   |
| Dividend                  yield                                            |   |                                                 | 1.55                       | % |   | 1.98 | % |
| Risk-free                  interest rate                                   |   |                                                 | 4.90                       | % |   | 4.12 | % |
| Expected                  option life                                      |   |                                                 | 6.5                  years |   |   | 9                  years |   |
| Volatility                                                                 |   |                                                 | 31.0                       | % |   | 23.5 | % |
| Weighted                  average grant-date fair value of options granted |   | $                                                    | 10.42                      |   | $ | 7.30 |   |
|                                                                       |   |                                                 |                       |   |   |   |   |

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Table          of Contents

**TIB          FINANCIAL CORP.**

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

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

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

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

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

*Stock      Options*

|                                           |   |     |       |
|------------------------------------------------|--------|----------|------------|
|                                           |   | **2006** |            | **2005** |
|                                           |   |     | **Shares** |   |   | **Weighted                Average****Exercise                Price** |   |   | **Shares** |   |   | **Weighted                Average****Exercise                Price** |   |
| Balance,                January 1,             |   |     | 388,985    |   | $ | 16.13 |   |   | 409,194 |   | $ | 13.66 |   |
| Granted                                        |   |     | 39,812     |   |   | 30.13 |   |   | 69,500 |   |   | 25.24 |   |
| Exercised                                      |   |     | (49,482    | ) |   | 12.21 |   |   | (33,025 | ) |   | 10.35 |   |
| Expired                or forfeited            |   |     | (3,700     | ) |   | 12.39 |   |   | (13,800 | ) |   | 17.79 |   |
| Balance,                June 30,               |   |     | 375,615    |   | $  | 18.16 |   |   | 431,869 |   | $  | 15.64 |   |
|                                           |   |     |       |   |   |   |   |   |   |   |   |   |   |
| Options                exercisable at June 30, |   |     | 133,703    |   | $ | 14.99 |   |   | 175,819 |   | $ | 13.43 |   |
|                                           |   |     |       |   |   |   |   |   |   |   |   |   |   |

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Table          of Contents

**TIB      FINANCIAL CORP.**

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

|                                        |   |                                   |       |                                   |
|---------------------------------------------|--------|----------------------------------------|------------|----------------------------------------|
|                                        |   | **Outstanding                Options** |            | **Options                Exercisable** |
| **Range                of Exercise Prices** |   |                                   | **Number** |                                   |   | **Weighted                Average Remaining Contractual Life** |   |   | **Weighted                Average Exercise Price** |   |   | **Number** |   |   | **Weighted                Average Exercise Price** |   |
| $9.00                - $12.40               |   |                                   | 128,350    |                                   |   | 4.52 |   | $ | 11.88 |   |   | 44,300 |   | $ | 11.84 |   |
| 12.65                - 22.76                |   |                                   | 134,453    |                                   |   | 4.44 |   |   | 16.45 |   |   | 73,803 |   |   | 14.88 |   |
| 22.79                - 32.40                |   |                                   | 112,812    |                                   |   | 9.01 |   |   | 27.35 |   |   | 15,600 |   |   | 24.45 |   |
| $9.00                - $32.40               |   |                                   | 375,615    |                                   |   | 5.84 |   | $ | 18.16 |   |   | 133,703 |   | $ | 14.99 |   |
|                                        |   |                                   |       |                                   |   |   |   |   |   |   |   |   |   |   |   |   |

*Restricted      Stock*

|                                |   |     |
|-------------------------------------|--------|----------|
|                                |   | **2006** |
|                                |   |     | **Shares**  |   |   | **Weighted                Average Grant-Date****Market                Value** |   |
| Balance,                January 1,  |   |     | 41,000 |   | $ | 31.28 |   |
| Granted                             |   |     | 4,340 |   |   | 31.00 |   |
| Vested                              |   |     | - |   |   | - |   |
| Expired                or forfeited |   |     | (5,000 | ) |   | 31.15 |   |
| Balance,                June 30,    |   |     | 40,340 |   | $ | 31.27 |   |
|                                |   |     |   |   |   |   |   |

**Note      8 - Other Borrowings**

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Table          of Contents

**TIB        FINANCIAL CORP.**

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

**Note      9 - Capital Adequacy**

|                                                    |   |   |                                                  |   |   |                                                  |   |   |                                          |   |   |                                           |   |
|---------------------------------------------------------|--------|--------|-------------------------------------------------------|--------|--------|-------------------------------------------------------|--------|--------|-----------------------------------------------|--------|--------|------------------------------------------------|--------|
|                                                    |   |   | **Well                Capitalized Requirement**  |   |   | **Adequately                Capitalized Requirement** |   |   | **June                30,****2006****Actual** |   |   | **December                31, 2005****Actual** |   |
| Tier                1 Capital (to Average Assets)       |   |   |                                                  |   |   |                                                  |   |   |                                          |   |   |                                           |   |
| Holding                company                          |   |   | N/A                                                   |   |   | 34.0                                             | %      |   | 8.9                                           | %      |   | 8.4                                            | %      |
| Bank                                                    |   |   | 35.0                                             | %      |   | 34.0                                             | %      |   | 9.7                                           | %      |   | 8.7                                            | %      |
|                                                    |   |   |                                                  |   |   |                                                  |   |   |                                          |   |   |                                           |   |
| Tier                1 Capital (to Risk Weighted Assets) |   |   |                                                  |   |   |                                                  |   |   |                                          |   |   |                                           |   |
| Holding                company                          |   |   | N/A                                                   |   |   | 34.0                                             | %      |   | 10.2                                          | %      |   | 9.6                                            | %      |
| Bank                                                    |   |   | 36.0                                             | %      |   | 34.0                                             | %      |   | 11.1                                          | %      |   | 9.9                                            | %      |
|                                                    |   |   |                                                  |   |   |                                                  |   |   |                                          |   |   |                                           |   |
| Total                Capital (to Risk Weighted Assets)  |   |   |                                                  |   |   |                                                  |   |   |                                          |   |   |                                           |   |
| Holding                company                          |   |   | N/A                                                   |   |   | 38.0                                             | %      |   | 12.0                                          | %      |   | 10.9                                           | %      |
| Bank                                                    |   |   | 310.0                                            | %      |   | 38.0                                             | %      |   | 12.0                                          | %      |   | 10.8                                           | %      |
|                                                    |   |   |                                                  |   |   |                                                  |   |   |                                          |   |   |                                           |   |

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Table          of Contents

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

**Forward-looking      Statements**

**Quarterly      Summary**

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

***Results      of Operations***

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Table          of Contents

***Net      Interest Income***

***Provision      for Loan Losses***

*** ***

***Non-interest      Income***

----

Table          of Contents

***Non-interest      Expense***

***Provision      for Income Taxes***

**Six      Months Ended June 30, 2006 and 2005:**

***Results      of Operations***

***Net      Interest Income***

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Table          of Contents

|                                                                                 |   |     |                    |
|--------------------------------------------------------------------------------------|--------|----------|-------------------------|
|                                                                                 |   | **2006** |                         | **2005** |
|  *(Dollars                in thousands)*                                        |   |     | **Average****Balances** |   |   | **Income/****Expense** |   |   | **Yields/****Rates** |   |   | **Average****Balances** |   |   | **Income/****Expense** |   |   | **Yields/****Rates** |   |
| Interest-earning                assets:                                              |   |     |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                (1)(2)                                                          |   | $        | 942,339                 |   | $ | 36,342 |   |   | 7.78 | % | $ | 716,103 |   | $ | 24,246 |   |   | 6.83 | % |
| Investment                securities (2)                                             |   |     | 119,540                 |   |   | 2,928 |   |   | 4.94 | % |   | 80,943 |   |   | 1,823 |   |   | 4.54 | % |
| Interest-bearing                deposits in other banks                              |   |     | 470                     |   |   | 11 |   |   | 4.72 | % |   | 463 |   |   | 6 |   |   | 2.53 | % |
| Federal                Home Loan Bank stock                                          |   |     | 3,277                   |   |   | 90 |   |   | 5.54 | % |   | 2,669 |   |   | 58 |   |   | 4.38 | % |
| Federal                funds sold                                                    |   |     | 22,204                  |   |   | 506 |   |   | 4.60 | % |   | 43,732 |   |   | 598 |   |   | 2.76 | % |
| Total                interest-earning assets                                         |   |     | 1,087,830               |   |   | 39,877 |   |   | 7.39 | % |   | 843,910 |   |   | 26,731 |   |   | 6.39 | % |
|                                                                                 |   |     |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-earning                assets:                                          |   |     |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                and due from banks                                               |   |     | 24,416                  |   |   |   |   |   |   |   |   | 22,263 |   |   |   |   |   |   |   |
| Premises                and equipment, net                                           |   |     | 30,841                  |   |   |   |   |   |   |   |   | 27,272 |   |   |   |   |   |   |   |
| Allowance                for loan losses                                             |   |     | (7,936                  | ) |   |   |   |   |   |   |   | (6,531 | ) |   |   |   |   |   |   |
| Other                assets                                                          |   |     | 30,833                  |   |   |   |   |   |   |   |   | 30,879 |   |   |   |   |   |   |   |
| Total                non-interest-earning assets                                     |   |     | 78,154                  |   |   |   |   |   |   |   |   | 73,883 |   |   |   |   |   |   |   |
| Total                assets                                                          |   | $        | 1,165,984               |   |   |   |   |   |   |   | $ | 917,793 |   |   |   |   |   |   |   |
|                                                                                 |   |     |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing                liabilities:                                         |   |     |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing                deposits:                                            |   |     |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOW                accounts                                                          |   | $        | 139,833                 |   | $ | 1,687 |   |   | 2.43 | % | $ | 92,846 |   | $ | 385 |   |   | 0.84 | % |
| Money                market                                                          |   |     | 170,410                 |   |   | 2,760 |   |   | 3.27 | % |   | 167,087 |   |   | 1,560 |   |   | 1.88 | % |
| Savings                deposits                                                      |   |     | 50,270                  |   |   | 166 |   |   | 0.67 | % |   | 48,079 |   |   | 115 |   |   | 0.48 | % |
| Time                deposits                                                         |   |     | 456,887                 |   |   | 9,775 |   |   | 4.31 | % |   | 303,483 |   |   | 4,937 |   |   | 3.28 | % |
| Total                interest-bearing deposits                                       |   |     | 817,400                 |   |   | 14,388 |   |   | 3.55 | % |   | 611,495 |   |   | 6,997 |   |   | 2.31 | % |
|                                                                                 |   |     |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                interest-bearing liabilities:                                   |   |     |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Short-term                borrowings and FHLB advances                               |   |     | 49,195                  |   |   | 1,028 |   |   | 4.21 | % |   | 40,431 |   |   | 551 |   |   | 2.75 | % |
| Long-term                borrowings                                                  |   |     | 17,883                  |   |   | 854 |   |   | 9.63 | % |   | 17,104 |   |   | 774 |   |   | 9.13 | % |
| Total                interest-bearing liabilities                                    |   |     | 884,478                 |   |   | 16,270 |   |   | 3.71 | % |   | 669,030 |   |   | 8,322 |   |   | 2.51 | % |
|                                                                                 |   |     |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-bearing                liabilities and shareholders’ equity:      |   |     |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand                deposits                                                       |   |     | 185,213                 |   |   |   |   |   |   |   |   | 168,787 |   |   |   |   |   |   |   |
| Other                liabilities                                                     |   |     | 16,965                  |   |   |   |   |   |   |   |   | 11,166 |   |   |   |   |   |   |   |
| Shareholders’                equity                                            |   |     | 79,328                  |   |   |   |   |   |   |   |   | 68,810 |   |   |   |   |   |   |   |
| Total                non-interest-bearing liabilities and shareholders’ equity |   |     | 281,506                 |   |   |   |   |   |   |   |   | 248,763 |   |   |   |   |   |   |   |
| Total                liabilities and shareholders’ equity                      |   | $        | 1,165,984               |   |   |   |   |   |   |   | $ | 917,793 |   |   |   |   |   |   |   |
|                                                                                 |   |     |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                rate spread (tax equivalent basis)                           |   |     |                    |   |   |   |   |   | 3.68 | % |   |   |   |   |   |   |   | 3.88 | % |
| Net                interest income (tax equivalent basis)                            |   |     |                    |   | $ | 23,607 |   |   |   |   |   |   |   | $ | 18,409 |   |   |   |   |
| Net                interest margin (3) (tax equivalent basis)                        |   |     |                    |   |   |   |   |   | 4.38 | % |   |   |   |   |   |   |   | 4.40 | % |
|                                                                                 |   |     |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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

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Table            of Contents

***Changes      in Net Interest Income***

|                                                                                                                                                                                                                                                                                                              |   |                                                                                   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                   |   | **2006                Compared to 2005 (1)****Due                to Changes in**  |
| *(Dollars                in thousands)*                                                                                                                                                                                                                                                                           |   |                                                                                   | **Average****Volume** |   |   | **Average****Rate** |   |   | **Net                Increase** |   |
| Interest                income                                                                                                                                                                                                                                                                                    |   |                                                                                   |   |   |   |   |   |   |   |   |
| Loans                (2)                                                                                                                                                                                                                                                                                          |   | $                                                                                      | 8,399 |   | $ | 3,697 |   | $ | 12,096 |   |
| Investment                securities (2)                                                                                                                                                                                                                                                                          |   |                                                                                   | 934 |   |   | 171 |   |   | 1,105 |   |
| Interest-bearing                deposits in other banks                                                                                                                                                                                                                                                           |   |                                                                                   | - |   |   | 5 |   |   | 5 |   |
| Federal                Home Loan Bank stock                                                                                                                                                                                                                                                                       |   |                                                                                   | 15 |   |   | 17 |   |   | 32 |   |
| Federal                funds sold                                                                                                                                                                                                                                                                                 |   |                                                                                   | (378 | ) |   | 286 |   |   | (92 | ) |
| Total                interest income                                                                                                                                                                                                                                                                              |   |                                                                                   | 8,970 |   |   | 4,176 |   |   | 13,146 |   |
|                                                                                                                                                                                                                                                                                                              |   |                                                                                   |   |   |   |   |   |   |   |   |
| Interest                expense                                                                                                                                                                                                                                                                                   |   |                                                                                   |   |   |   |   |   |   |   |   |
| NOW                accounts                                                                                                                                                                                                                                                                                       |   |                                                                                   | 273 |   |   | 1,029 |   |   | 1,302 |   |
| Money                market                                                                                                                                                                                                                                                                                       |   |                                                                                   | 32 |   |   | 1,168 |   |   | 1,200 |   |
| Savings                deposits                                                                                                                                                                                                                                                                                   |   |                                                                                   | 5 |   |   | 46 |   |   | 51 |   |
| Time                deposits                                                                                                                                                                                                                                                                                      |   |                                                                                   | 2,980 |   |   | 1,858 |   |   | 4,838 |   |
| Short-term                borrowings and FHLB advances                                                                                                                                                                                                                                                            |   |                                                                                   | 138 |   |   | 339 |   |   | 477 |   |
| Long-term                borrowings                                                                                                                                                                                                                                                                               |   |                                                                                   | 36 |   |   | 44 |   |   | 80 |   |
| Total                interest expense                                                                                                                                                                                                                                                                             |   |                                                                                   | 3,464 |   |   | 4,484 |   |   | 7,948 |   |
|                                                                                                                                                                                                                                                                                                              |   |                                                                                   |   |   |   |   |   |   |   |   |
| Change                in net interest income                                                                                                                                                                                                                                                                      |   | $                                                                                      | 5,506 |   | $ | (308 | ) | $ | 5,198 |   |
|                                                                                                                                                                                                                                                                                                              |   |                                                                                   |   |   |   |   |   |   |   |   |
| _________ (1)                The change in interest due to both rate and volume has been allocated                to                the volume and rate components in proportion to the relationship                of the                dollar amounts of the absolute change in each.                     |
|  (2)  Interest                income includes                the effects of a tax equivalent adjustment using applicable statutory                tax                rates in adjusting tax exempt interest on tax exempt investment securities                and loans to a fully taxable basis. |

***Provision      for Loan Losses***

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Table          of Contents

***Non-interest      Income***

***Non-interest      Expense***

***Stock-Based      Compensation Expense***

***Provision      for Income Taxes***

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

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

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

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Table          of Contents

***Balance      Sheet***

***Non-performing      Assets***

|                                                                          |   |   |                             |   |   |                                 |   |
|-------------------------------------------------------------------------------|--------|--------|----------------------------------|--------|--------|--------------------------------------|--------|
| *(Dollars                in thousands)*                                       |   |   | **June                30, 2006** |   |   | **December                31, 2005** |   |
| Total                nonaccrual loans                                         |   | $      | 953                              |   | $      | 956                                  |   |
| Accruing                loans delinquent 90 days or more (a)                  |   |   | -                                |   |   | -                                    |   |
| Total                non-performing loans                                     |   |   | 953                              |   |   | 956                                  |   |
|                                                                          |   |   |                             |   |   |                                 |   |
| Repossessed                personal property (indirect auto dealer loans)     |   |   | 1,222                            |   |   | 962                                  |   |
| Other                real estate owned (b)                                    |   |   | -                                |   |   | 190                                  |   |
| Other                assets (b)                                               |   |   | 2,800                            |   |   | 2,815                                |   |
| Total                non-performing assets                                    |   | $      | 4,975                            |   | $      | 4,923                                |   |
|                                                                          |   |   |                             |   |   |                                 |   |
| Allowance                for loan losses                                      |   | $      | 8,426                            |   | $      | 7,546                                |   |
|                                                                          |   |   |                             |   |   |                                 |   |
| Non-performing                assets as a percent of total assets             |   |   | 0.40                             | %      |   | 0.46                                 | %      |
| Non-performing                loans as a percent of gross loans               |   |   | 0.09                             | %      |   | 0.11                                 | %      |
| Allowance                for loan losses as a percent of non-performing loans |   |   | 884.16                           | %      |   | 789.33                               | %      |
| Net                charge-offs as a percent of average loans (c)              |   |   | 0.14                             | %      |   | 0.14                                 | %      |
|                                                                          |   |   |                             |   |   |                                 |   |

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Table          of Contents

**Capital      and Liquidity**

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Table          of Contents

**Asset      and Liability Management**

|                                                   |   |   |                                                  |   |   |                                |   |   |                                 |   |   |                               |   |   |                               |   |   |      |   |
|--------------------------------------------------------|--------|--------|-------------------------------------------------------|--------|--------|-------------------------------------|--------|--------|--------------------------------------|--------|--------|------------------------------------|--------|--------|------------------------------------|--------|--------|-----------|--------|
| *(Dollars                in thousands)*                |   |   | **3                Months****or                Less** |   |   | **4                to 6****Months** |   |   | **7                to 12****Months** |   |   | **1                to 5****Years** |   |   | **Over                5****Years** |   |   | **Total** |   |
| **Interest-earning                assets:**            |   |   |                                                  |   |   |                                |   |   |                                 |   |   |                               |   |   |                               |   |   |      |   |
| Loans                                                  |   | $      | 404,835                                               |   | $      | 23,189                              |   | $      | 68,516                               |   | $      | 395,835                            |   | $      | 110,406                            |   | $      | 1,002,781 |   |
| Investment                securities-taxable           |   |   | 10,509                                                |   |   | 817                                 |   |   | 11,537                               |   |   | 46,014                             |   |   | 42,916                             |   |   | 111,793   |   |
| Investment                securities-tax exempt        |   |   | 307                                                   |   |   | -                                   |   |   | 978                                  |   |   | 2,423                              |   |   | 7,208                              |   |   | 10,916    |   |
| Marketable                equity securities            |   |   | 2,918                                                 |   |   | -                                   |   |   | -                                    |   |   | -                                  |   |   | -                                  |   |   | 2,918     |   |
| FHLB                stock                              |   |   | 4,848                                                 |   |   | -                                   |   |   | -                                    |   |   | -                                  |   |   | -                                  |   |   | 4,848     |   |
| Federal                funds sold                      |   |   | 17,669                                                |   |   | -                                   |   |   | -                                    |   |   | -                                  |   |   | -                                  |   |   | 17,669    |   |
| Interest-bearing                deposit in other banks |   |   | 638                                                   |   |   | -                                   |   |   | -                                    |   |   | -                                  |   |   | -                                  |   |   | 638       |   |
| Total                interest-earning assets           |   |   | 441,724                                               |   |   | 24,006                              |   |   | 81,031                               |   |   | 444,272                            |   |   | 160,530                            |   |   | 1,151,563 |   |
|                                                   |   |   |                                                  |   |   |                                |   |   |                                 |   |   |                               |   |   |                               |   |   |      |   |
| **Interest-bearing                liabilities:**       |   |   |                                                  |   |   |                                |   |   |                                 |   |   |                               |   |   |                               |   |   |      |   |
| NOW                accounts                            |   |   | 140,131                                               |   |   | -                                   |   |   | -                                    |   |   | -                                  |   |   | -                                  |   |   | 140,131   |   |
| Money                market                            |   |   | 172,328                                               |   |   | -                                   |   |   | -                                    |   |   | -                                  |   |   | -                                  |   |   | 172,328   |   |
| Savings                deposits                        |   |   | 52,637                                                |   |   | -                                   |   |   | -                                    |   |   | -                                  |   |   | -                                  |   |   | 52,637    |   |
| Time                deposits                           |   |   | 98,348                                                |   |   | 61,722                              |   |   | 226,341                              |   |   | 91,276                             |   |   | 234                                |   |   | 477,921   |   |
| Notes                payable                           |   |   | -                                                     |   |   | -                                   |   |   | -                                    |   |   | -                                  |   |   | 4,000                              |   |   | 4,000     |   |
| Subordinated                debentures                 |   |   | 25,000                                                |   |   | -                                   |   |   | -                                    |   |   | -                                  |   |   | 8,000                              |   |   | 33,000    |   |
| Other                borrowings                        |   |   | 80,179                                                |   |   | -                                   |   |   | -                                    |   |   | -                                  |   |   | -                                  |   |   | 80,179    |   |
| Total                interest-bearing liabilities      |   |   | 568,623                                               |   |   | 61,722                              |   |   | 226,341                              |   |   | 91,276                             |   |   | 12,234                             |   |   | 960,196   |   |
|                                                   |   |   |                                                  |   |   |                                |   |   |                                 |   |   |                               |   |   |                               |   |   |      |   |
| Interest                sensitivity gap                |   | $      | (126,899                                              | )      | $      | (37,716                             | )      | $      | (145,310                             | )      | $      | 352,996                            |   | $      | 148,296                            |   | $      | 191,367   |   |
|                                                   |   |   |                                                  |   |   |                                |   |   |                                 |   |   |                               |   |   |                               |   |   |      |   |
| Cumulative                interest sensitivity gap     |   | $      | (126,899                                              | )      | $      | (164,615                            | )      | $      | (309,925                             | )      | $      | 43,071                             |   | $      | 191,367                            |   | $      | 191,367   |   |
|                                                   |   |   |                                                  |   |   |                                |   |   |                                 |   |   |                               |   |   |                               |   |   |      |   |
| Cumulative                sensitivity ratio            |   |   | (11.0                                                 | %)     |   | (14.3                               | %)     |   | (26.9                                | %)     |   | 3.7                                | %      |   | 16.6                               | %      |   | 16.6      | %      |
|                                                   |   |   |                                                  |   |   |                                |   |   |                                 |   |   |                               |   |   |                               |   |   |      |   |

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Table          of Contents

**Commitments**

----

Table          of Contents

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

----

Table          of Contents

**Item      4. Controls and Procedures**

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Table          of Contents

**PART      II. OTHER INFORMATION**

**Item      1a. Risk Factors**

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

|                               |      |        |        |
|------------------------------------|-----------|-------------|-------------|
| **Directors**                      | **For**   | **Against** | **Abstain** |
| John                G. Parks       | 4,044,379 | 9,619       | -           |
| Marvin                F. Schindler | 4,030,965 | 23,033      | -           |
| Otis                T. Wallace     | 4,026,565 | 27,433      | -           |
|                               |      |        |        |

**Item      5. Other Information**

**Item      6. Exhibits**

Exhibit      31.1

Exhibit      31.2

Exhibit      32.1

Exhibit      32.2

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Table            of Contents

**SIGNATURES**

|                                            |   | TIB                FINANCIAL CORP.                                                                                |
|-------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------|
|   Date:                August 8, 2006 |   |   /s/                Edward V. Lett                                                                     |
|                                            |   | Edward                V. LettPresident                and Chief Executive Officer                                 |
|                                            |   |                                                                                                              |
|   Date:                August 8, 2006 |   |   /s/                David P. Johnson                                                                   |
|                                            |   | David                P. JohnsonExecutive                Vice President and Chief Financial                Officer |

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