----

----

|   | FORM 10-Q |   |
|--------|-----------|--------|

|   | TIB FINANCIAL CORP. |   |
|--------|---------------------|--------|

| 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) |

|     £ Large accelerated filer | £ Accelerated filer         |
|--------------------------------------------------------|----------------------------------|
|     T Non-accelerated filer        | £ Smaller reporting company |

| Common Stock, $0.10 Par Value |   | 14,888,083                         |
|-------------------------------|--------|------------------------------------|
| Class                         |   | Outstanding as of October 31, 2009 |

----

----

----

TIB FINANCIAL 

| PART I.  FINANCIAL INFORMATION                                                                       | 3        |
|----------------------------------------------------------------------------------------------------------------|----------|
|                                                                                                           |     |
| Item 1.  Financial Statements                                                                        | 3        |
|                                                                                                           |     |
| Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations | 20       |
|                                                                                                           |     |
| Item 3.  Quantitative and Qualitative Disclosures About Market Risk                                  | 39       |
|                                                                                                           |     |
| Item 4.  Controls and Procedures                                                                     | 39       |
|                                                                                                           |     |
| PART II.  OTHER INFORMATION                                                                          | 40       |
|                                                                                                           |     |
| Item 1a. Risk Factors                                                                                          | 40       |
|                                                                                                           |     |
| Item 5.  Other Information                                                                           | 43       |
|                                                                                                           |     |
| Item 6.  Exhibits                                                                                    | 43  |

----

Index

PART I. 

Item 1.

|                                                                                                                                                                             |   | September 30, 2009 |      |   | December 31, 2008 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|-----------|--------|------------------------|--------|
|                                                                                                                                                                             |   | (Unaudited)             |      |   |                   |   |
| Assets                                                                                                                                                                           |   |                    |      |   |                   |   |
| Cash and due from banks                                                                                                                                                          |   | $                       | 111,634   |   |                   | $      | 69,607 |   |
| Federal funds sold and securities purchased under agreements to resell                                                                                                           |   |                    | -         |   |                   |   | 4,127 |   |
| Cash and cash equivalents                                                                                                                                                        |   |                    | 111,634   |   |                   |   | 73,734 |   |
|                                                                                                                                                                             |   |                    |      |   |                   |   |   |   |
| Investment securities available for sale                                                                                                                                         |   |                    | 264,444   |   |                   |   | 225,770 |   |
|                                                                                                                                                                             |   |                    |      |   |                   |   |   |   |
| Loans, net of deferred loan costs and fees                                                                                                                                       |   |                    | 1,229,631 |   |                   |   | 1,224,975 |   |
| Less: Allowance for loan losses                                                                                                                                                  |   |                    | 32,115    |   |                   |   | 23,783 |   |
| Loans, net                                                                                                                                                                       |   |                    | 1,197,516 |   |                   |   | 1,201,192 |   |
|                                                                                                                                                                             |   |                    |      |   |                   |   |   |   |
| Premises and equipment, net                                                                                                                                                      |   |                    | 41,054    |   |                   |   | 38,326 |   |
| Goodwill                                                                                                                                                                         |   |                    | 6,361     |   |                   |   | 5,160 |   |
| Intangible assets, net                                                                                                                                                           |   |                    | 7,056     |   |                   |   | 3,010 |   |
| Other real estate owned                                                                                                                                                          |   |                    | 19,582    |   |                   |   | 4,323 |   |
| Accrued interest receivable and other assets                                                                                                                                     |   |                    | 69,975    |   |                   |   | 58,599 |   |
| Total Assets                                                                                                                                                                     |   | $                       | 1,717,622 |   |                   | $      | 1,610,114 |   |
|                                                                                                                                                                             |   |                    |      |   |                   |   |   |   |
| Liabilities and Shareholders’ Equity                                                                                                                                       |   |                    |      |   |                   |   |   |   |
| Liabilities                                                                                                                                                                      |   |                    |      |   |                   |   |   |   |
| Deposits:                                                                                                                                                                        |   |                    |      |   |                   |   |   |   |
| Noninterest-bearing demand                                                                                                                                                       |   | $                       | 174,027   |   |                   | $      | 128,384 |   |
| Interest-bearing                                                                                                                                                                 |   |                    | 1,159,597 |   |                   |   | 1,007,284 |   |
| Total deposits                                                                                                                                                                   |   |                    | 1,333,624 |   |                   |   | 1,135,668 |   |
|                                                                                                                                                                             |   |                    |      |   |                   |   |   |   |
| Federal Home Loan Bank (FHLB) advances                                                                                                                                           |   |                    | 125,000   |   |                   |   | 202,900 |   |
| Short-term borrowings                                                                                                                                                            |   |                    | 74,209    |   |                   |   | 71,423 |   |
| Long-term borrowings                                                                                                                                                             |   |                    | 63,000    |   |                   |   | 63,000 |   |
| Accrued interest payable and other liabilities                                                                                                                                   |   |                    | 17,487    |   |                   |   | 16,009 |   |
| Total liabilities                                                                                                                                                                |   |                    | 1,613,320 |   |                   |   | 1,489,000 |   |
|                                                                                                                                                                             |   |                    |      |   |                   |   |   |   |
| Shareholders’ equity                                                                                                                                                       |   |                    |      |   |                   |   |   |   |
| Preferred stock – $.10 par value: 5,000,000 shares authorized, 37,000 shares issued and outstanding, liquidation preference of $37,000                                     |   |                    | 33,541    |   |                   |   | 32,920 |   |
| Common stock - $.10 par value: 100,000,000 and 40,000,000 shares authorized, 14,961,537 and 14,968,597 shares issued, 14,888,083 and 14,895,143 shares outstanding, respectively |   |                    | 1,496     |   |                   |   | 1,497 |   |
| Additional paid in capital                                                                                                                                                       |   |                    | 74,619    |   |                   |   | 73,148 |   |
| Retained earnings (accumulated deficit)                                                                                                                                          |   |                    | (4,699    | )      |                   |   | 14,737 |   |
| Accumulated other comprehensive loss                                                                                                                                             |   |                    | (86       | )      |                   |   | (619 | ) |
| Treasury stock, at cost, 73,454 shares                                                                                                                                           |   |                    | (569      | )      |                   |   | (569 | ) |
| Total shareholders’ equity                                                                                                                                                 |   |                    | 104,302   |   |                   |   | 121,114 |   |
|                                                                                                                                                                             |   |                    |      |   |                   |   |   |   |
| Total Liabilities and Shareholders’ Equity                                                                                                                                 |   | $                       | 1,717,622 |   |                   | $      | 1,610,114 |   |
|                                                                                                                                                                             |   |                    |      |   |                   |   |   |   |

----

Index

|                                                                                                     |   | Three months endedSeptember 30, |    |   | Nine months endedSeptember 30, |   |
|----------------------------------------------------------------------------------------------------------|--------|---------------------------------|---------|--------|--------------------------------|--------|
|                                                                                                     |   | 2009                            |    |   | 2008                           |   |   | 2009 |   |   | 2008 |   |
| Interest and dividend income                                                                             |   |                            |    |   |                           |   |   |   |   |   |   |   |
| Loans, including fees                                                                                    |   | $                               | 17,267  |   |                           | $      | 19,719 |   |   | $ | 52,458 |   |   | $ | 59,147 |   |
| Investment securities:                                                                                   |   |                            |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                                                                  |   |                            | 2,923   |   |                           |   | 2,081 |   |   |   | 9,237 |   |   |   | 5,787 |   |
| Tax-exempt                                                                                               |   |                            | 75      |   |                           |   | 76 |   |   |   | 224 |   |   |   | 289 |   |
| Interest-bearing deposits in other banks                                                                 |   |                            | 18      |   |                           |   | 6 |   |   |   | 58 |   |   |   | 50 |   |
| Federal Home Loan Bank stock                                                                             |   |                            | 44      |   |                           |   | 78 |   |   |   | 25 |   |   |   | 330 |   |
| Federal funds sold and securities purchased under agreements to resell                                   |   |                            | -       |   |                           |   | 282 |   |   |   | 5 |   |   |   | 1,338 |   |
| Total interest and dividend income                                                                       |   |                            | 20,327  |   |                           |   | 22,242 |   |   |   | 62,007 |   |   |   | 66,941 |   |
|                                                                                                     |   |                            |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                                                                         |   |                            |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                                                 |   |                            | 6,601   |   |                           |   | 7,786 |   |   |   | 21,651 |   |   |   | 24,794 |   |
| Federal Home Loan Bank advances                                                                          |   |                            | 1,256   |   |                           |   | 1,622 |   |   |   | 3,941 |   |   |   | 4,420 |   |
| Short-term borrowings                                                                                    |   |                            | 28      |   |                           |   | 337 |   |   |   | 78 |   |   |   | 1,241 |   |
| Long-term borrowings                                                                                     |   |                            | 679     |   |                           |   | 821 |   |   |   | 2,123 |   |   |   | 2,545 |   |
| Total interest expense                                                                                   |   |                            | 8,564   |   |                           |   | 10,566 |   |   |   | 27,793 |   |   |   | 33,000 |   |
|                                                                                                     |   |                            |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                                                                                      |   |                            | 11,763  |   |                           |   | 11,676 |   |   |   | 34,214 |   |   |   | 33,941 |   |
|                                                                                                     |   |                            |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Provision for loan losses                                                                                |   |                            | 14,756  |   |                           |   | 4,768 |   |   |   | 25,828 |   |   |   | 13,138 |   |
| Net interest income (loss) after provision for loan losses                                               |   |                            | (2,993  | )      |                           |   | 6,908 |   |   |   | 8,386 |   |   |   | 20,803 |   |
|                                                                                                     |   |                            |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest income                                                                                      |   |                            |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Service charges on deposit accounts                                                                      |   |                            | 988     |   |                           |   | 747 |   |   |   | 3,156 |   |   |   | 2,188 |   |
| Fees on mortgage loans originated and sold                                                               |   |                            | 340     |   |                           |   | 176 |   |   |   | 773 |   |   |   | 621 |   |
| Investment advisory and trust fees                                                                       |   |                            | 279     |   |                           |   | 153 |   |   |   | 700 |   |   |   | 413 |   |
| Other income                                                                                             |   |                            | 1,865   |   |                           |   | 497 |   |   |   | 2,863 |   |   |   | 1,445 |   |
| Investment securities gains (losses), net                                                                |   |                            | 1,127   |   |                           |   | 145 |   |   |   | 2,581 |   |   |   | 1,055 |   |
| Other-than-temporary impairment losses on investments prior to April 1, 2009 adoption of ASC 320-10-65-1 |   |                            | -       |   |                           |   | (271 | ) |   |   | (23 | ) |   |   | (2,183 | ) |
| Other-than-temporary impairment losses on investments subsequent to April 1, 2009                        |   |                            |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Gross impairment losses                                                                                  |   |                            | -       |   |                           |   | N/A |   |   |   | (740 | ) |   |   | N/A |   |
| Less: Impairments recognized in other comprehensive income                                               |   |                            | -       |   |                           |   | N/A |   |   |   | - |   |   |   | N/A |   |
| Net impairment losses recognized in earnings subsequent to April 1, 2009                                 |   |                            | -       |   |                           |   | N/A |   |   |   | (740 | ) |   |   | N/A |   |
| Total non-interest income                                                                                |   |                            | 4,599   |   |                           |   | 1,447 |   |   |   | 9,310 |   |   |   | 3,539 |   |
|                                                                                                     |   |                            |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest expense                                                                                     |   |                            |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Salaries and employee benefits                                                                           |   |                            | 7,288   |   |                           |   | 6,045 |   |   |   | 21,736 |   |   |   | 18,456 |   |
| Net occupancy and equipment expense                                                                      |   |                            | 2,365   |   |                           |   | 2,171 |   |   |   | 6,955 |   |   |   | 6,371 |   |
| Other expense                                                                                            |   |                            | 5,541   |   |                           |   | 3,770 |   |   |   | 16,028 |   |   |   | 12,049 |   |
| Total non-interest expense                                                                               |   |                            | 15,194  |   |                           |   | 11,986 |   |   |   | 44,719 |   |   |   | 36,876 |   |
|                                                                                                     |   |                            |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Loss before income taxes                                                                                 |   |                            | (13,588 | )      |                           |   | (3,631 | ) |   |   | (27,023 | ) |   |   | (12,534 | ) |
|                                                                                                     |   |                            |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Income tax benefit                                                                                       |   |                            | (5,491  | )      |                           |   | (1,435 | ) |   |   | (10,581 | ) |   |   | (4,859 | ) |
|                                                                                                     |   |                            |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Net Loss                                                                                                 |   | $                               | (8,097  | )      |                           | $      | (2,196 | ) |   | $ | (16,442 | ) |   | $ | (7,675 | ) |
| Preferred dividends earned by preferred shareholders and discount accretion                              |   |                            | 650     |   |                           |   | - |   |   |   | 2,008 |   |   |   | - |   |
| Net loss allocated to common shareholders                                                                |   | $                               | (8,747  | )      |                           | $      | (2,196 | ) |   | $ | (18,450 | ) |   | $ | (7,675 | ) |
|                                                                                                     |   |                            |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted loss per common share                                                                  |   | $                               | (0.59   | )      |                           | $      | (0.15 | ) |   | $ | (1.25 | ) |   | $ | (0.53 | ) |
|                                                                                                     |   |                            |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |

----

Index

|                                                             |   | Preferred Shares |   |   | Preferred Stock |   |   | Common Shares |   |   | Common Stock |   |   | Additional Paid in Capital |   |   | Retained Earnings (Accumulated Deficit) |   |   | Accumulated Other Comprehensive Income (Loss) |   |   | Treasury Stock |   |   | Total Shareholders’ Equity |   |
|------------------------------------------------------------------|--------|------------------|--------|--------|-----------------|--------|--------|---------------|--------|--------|--------------|--------|--------|----------------------------|--------|--------|-----------------------------------------|--------|--------|-----------------------------------------------|--------|--------|----------------|--------|--------|----------------------------------|--------|
| Balance, July 1, 2009                                            |   |             | 37,000 |   |            | $      | 33,354 |          |   |   | 14,895,143   |   |   | $                          | 1,497  |   |                                    | $      | 74,308 |                                          |   | $      | 4,259          |   |   | $                                | (881   | ) |   | $ | (569 | ) |   | $ | 111,968 |   |
| Comprehensive loss:                                              |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |                                    |   |   |                                          |   |   |           |   |   |                             |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                         |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |                                    |   |   |                                          |   |   | (8,097         | )      |   |                             |   |   |   |   |   |   |   |   | (8,097 | ) |
| Other comprehensive income, net of tax                           |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |                                    |   |   |                                          |   |   |           |   |   |                             |   |   |   |   |   |   |   |   |   |   |
| Net market valuation adjustment on securities available for sale |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |                                    |   |   |                                          |   |   |           |   |   |                             | 1,498  |   |   |   |   |   |   |   |   |   |
| Less: reclassification adjustment for gains, net of tax of $424  |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |                                    |   |   |                                          |   |   |           |   |   |                             | (703   | ) |   |   |   |   |   |   |   |   |
| Other comprehensive income, net of tax expense of $479:          |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |                                    |   |   |                                          |   |   |           |   |   |                             |   |   |   |   |   |   |   |   | 795 |   |
| Comprehensive loss                                               |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |                                    |   |   |                                          |   |   |           |   |   |                             |   |   |   |   |   |   |   |  $ | (7,302 | ) |
| Restricted stock cancellations                                   |   |             |   |   |            |   |   |          |   |   | (7,060       | )      |   |                       | (1     | )      |                                    |   | 1      |                                          |   |   |           |   |   |                             |   |   |   |   |   |   |   |   | - |   |
| Preferred stock discount accretion                               |   |             |   |   |            |   | 187    |          |   |   |         |   |   |                       |   |   |                                    |   |   |                                          |   |   | (187           | )      |   |                             |   |   |   |   |   |   |   |   | - |   |
| Stock-based compensation and related tax effect                  |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |                                    |   | 98     |                                          |   |   |           |   |   |                             |   |   |   |   |   |   |   |   | 98 |   |
| Common stock dividend declared, 1%                               |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |                                    |   | 212    |                                          |   |   | (212           | )      |   |                             |   |   |   |   |   |   |   |   | - |   |
| Cash dividends declared, preferred stock                         |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |                                    |   |   |                                          |   |   | (462           | )      |   |                             |   |   |   |   |   |   |   |   | (462 | ) |
| Balance, September 30, 2009                                      |   |             | 37,000 |   |            | $      | 33,541 |          |   |   | 14,888,083   |   |   | $                          | 1,496  |   |                                    | $      | 74,619 |                                          |   | $      | (4,699         | )      |   | $                                | (86    | ) |   | $ | (569 | ) |   | $ | 104,302 |   |
|                                                             |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |                                    |   |   |                                          |   |   |           |   |   |                             |   |   |   |   |   |   |   |   |   |   |

----

|                                                             |   | Preferred Shares |   |   | Preferred Stock |   |   | Common Shares |   |   | Common Stock |   |   | Additional Paid in Capital |   |   | Retained Earnings |   |   | Accumulated Other Comprehensive Income (Loss) |   |   | Treasury Stock |   |   | Total Shareholders’ Equity |   |
|------------------------------------------------------------------|--------|------------------|--------|--------|-----------------|--------|--------|---------------|--------|--------|--------------|--------|--------|----------------------------|--------|--------|-------------------|--------|--------|-----------------------------------------------|--------|--------|----------------|--------|--------|----------------------------------|--------|
| Balance, July 1, 2008                                            |   |             | -      |   |            | $      | -      |          |   |   | 14,890,721   |   |   | $                          | 1,496  |   |              | $      | 67,113 |                                          |   | $      | 31,822         |   |   | $                                | (713   | ) |   | $ | (569 | ) |   | $ | 99,149 |   |
| Comprehensive loss:                                              |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   |           |   |   |                             |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                         |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   | (2,196         | )      |   |                             |   |   |   |   |   |   |   |   | (2,196 | ) |
| Other comprehensive income, net of tax                           |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   |           |   |   |                             |   |   |   |   |   |   |   |   |   |   |
| Net market valuation adjustment on securities available for sale |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   |           |   |   |                             | 501    |   |   |   |   |   |   |   |   |   |
| Add: reclassification adjustment for losses, net of tax of $46   |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   |           |   |   |                             | 79     |   |   |   |   |   |   |   |   |   |
| Other comprehensive income, net of tax expense of $366           |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   |           |   |   |                             |   |   |   |   |   |   |   |   | 580 |   |
| Comprehensive loss                                               |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   |           |   |   |                             |   |   |   |   |   |   |   |  $ | (1,616 | ) |
| Stock-based compensation and related tax effect                  |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |              |   | 147    |                                          |   |   |           |   |   |                             |   |   |   |   |   |   |   |   | 147 |   |
| Common stock dividend declared, 1%                               |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |              |   | 989    |                                          |   |   | (989           | )      |   |                             |   |   |   |   |   |   |   |   | - |   |
| Balance, September 30, 2008                                      |   |             | -      |   |            | $      | -      |          |   |   | 14,890,721   |   |   | $                          | 1,496  |   |              | $      | 68,249 |                                          |   | $      | 28,637         |   |   | $                                | (133   | ) |   | $ | (569 | ) |   | $ | 97,680 |   |
|                                                             |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   |           |   |   |                             |   |   |   |   |   |   |   |   |   |   |

----

Index

|                                                             |   | Preferred Shares |   |   | Preferred Stock |   |   | Common Shares |   |   | Common Stock |   |   | Additional Paid in Capital |   |   | Retained Earnings (Accumulated Deficit) |   |   | Accumulated Other Comprehensive Income (Loss) |   |   | Treasury Stock |   |   | Total Shareholders’ Equity |   |
|------------------------------------------------------------------|--------|------------------|--------|--------|-----------------|--------|--------|---------------|--------|--------|--------------|--------|--------|----------------------------|--------|--------|-----------------------------------------|--------|--------|-----------------------------------------------|--------|--------|----------------|--------|--------|----------------------------------|--------|
| Balance, January 1, 2009                                         |   |             | 37,000 |   |            | $      | 32,920 |          |   |   | 14,895,143   |   |   | $                          | 1,497  |   |                                    | $      | 73,148 |                                          |   | $      | 14,737         |   |   | $                                | (619   | ) |   | $ | (569 | ) |   | $ | 121,114 |   |
| Comprehensive loss:                                              |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |                                    |   |   |                                          |   |   |           |   |   |                             |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                         |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |                                    |   |   |                                          |   |   | (16,442        | )      |   |                             |   |   |   |   |   |   |   |   | (16,442 | ) |
| Other comprehensive income, net of tax                           |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |                                    |   |   |                                          |   |   |           |   |   |                             |   |   |   |   |   |   |   |   |   |   |
| Net market valuation adjustment on securities available for sale |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |                                    |   |   |                                          |   |   |           |   |   |                             | 1,667  |   |   |   |   |   |   |   |   |   |
| Less: reclassification adjustment for gains, net of tax of $684  |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |                                    |   |   |                                          |   |   |           |   |   |                             | (1,134 | ) |   |   |   |   |   |   |   |   |
| Other comprehensive income, net of tax expense of $321:          |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |                                    |   |   |                                          |   |   |           |   |   |                             |   |   |   |   |   |   |   |   | 533 |   |
| Comprehensive loss                                               |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |                                    |   |   |                                          |   |   |           |   |   |                             |   |   |   |   |   |   |   |  $ | (15,909 | ) |
| Restricted stock cancellations                                   |   |             |   |   |            |   |   |          |   |   | (7,060       | )      |   |                       | (1     | )      |                                    |   | 1      |                                          |   |   |           |   |   |                             |   |   |   |   |   |   |   |   | - |   |
| Issuance costs associated with preferred stock issued            |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |                                    |   | (48    | )                                             |   |   |           |   |   |                             |   |   |   |   |   |   |   |   | (48 | ) |
| Preferred stock discount accretion                               |   |             |   |   |            |   | 621    |          |   |   |         |   |   |                       |   |   |                                    |   |   |                                          |   |   | (621           | )      |   |                             |   |   |   |   |   |   |   |   | - |   |
| Stock-based compensation and related tax effect                  |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |                                    |   | 430    |                                          |   |   |           |   |   |                             |   |   |   |   |   |   |   |   | 430 |   |
| Common stock dividends declared, 1% per quarter                  |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |                                    |   | 1,088  |                                          |   |   | (1,088         | )      |   |                             |   |   |   |   |   |   |   |   | - |   |
| Cash dividends declared, preferred stock                         |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |                                    |   |   |                                          |   |   | (1,285         | )      |   |                             |   |   |   |   |   |   |   |   | (1,285 | ) |
| Balance, September 30, 2009                                      |   |             | 37,000 |   |            | $      | 33,541 |          |   |   | 14,888,083   |   |   | $                          | 1,496  |   |                                    | $      | 74,619 |                                          |   | $      | (4,699         | )      |   | $                                | (86    | ) |   | $ | (569 | ) |   | $ | 104,302 |   |
|                                                             |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |                                    |   |   |                                          |   |   |           |   |   |                             |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                |   | Preferred Shares |   |   | Preferred Stock |   |   | Common Shares |   |   | Common Stock |   |   | Additional Paid in Capital |   |   | Retained Earnings |   |   | Accumulated Other Comprehensive Income (Loss) |   |   | Treasury Stock |   |   | Total Shareholders’ Equity |   |
|-------------------------------------------------------------------------------------|--------|------------------|--------|--------|-----------------|--------|--------|---------------|--------|--------|--------------|--------|--------|----------------------------|--------|--------|-------------------|--------|--------|-----------------------------------------------|--------|--------|----------------|--------|--------|----------------------------------|--------|
| Balance, January 1, 2008                                                            |   |             | -      |   |            | $      | -      |          |   |   | 13,568,377   |   |   | $                          | 1,364  |   |              | $      | 56,054 |                                          |   | $      | 39,151         |   |   | $                                | 240    |   |   | $ | (569 | ) |   | $ | 96,240 |   |
| Cumulative-effect adjustment for split-dollar life insurance postretirement benefit |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   | (141           | )      |   |                             |   |   |   |   |   |   |   |   | (141 | ) |
| Comprehensive loss:                                                                 |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   |           |   |   |                             |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                            |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   | (7,675         | )      |   |                             |   |   |   |   |   |   |   |   | (7,675 | ) |
| Other comprehensive loss, net of tax                                                |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   |           |   |   |                             |   |   |   |   |   |   |   |   |   |   |
| Net market valuation adjustment on securities available for sale                    |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   |           |   |   |                             | (1,077 | ) |   |   |   |   |   |   |   |   |
| Add: reclassification adjustment for losses, net of tax benefit of $424             |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   |           |   |   |                             | 704    |   |   |   |   |   |   |   |   |   |
| Other comprehensive loss, net of tax benefit of $231                                |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   |           |   |   |                             |   |   |   |   |   |   |   |   | (373 | ) |
| Comprehensive loss                                                                  |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   |           |   |   |                             |   |   |   |   |   |   |   |  $ | (8,189 | ) |
| Restricted stock grants, net of 1,476 cancellations                                 |   |             |   |   |            |   |   |          |   |   | 32,811       |   |   |                       | 3      |   |              |   | (3     | )                                             |   |   |           |   |   |                             |   |   |   |   |   |   |   |   | - |   |
| Stock-based compensation and related tax effect                                     |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |              |   | 470    |                                          |   |   |           |   |   |                             |   |   |   |   |   |   |   |   | 470 |   |
| Private placement of common shares                                                  |   |             |   |   |            |   |   |          |   |   | 1,273,824    |   |   |                       | 127    |   |              |   | 9,809  |                                          |   |   |           |   |   |                             |   |   |   |   |   |   |   |   | 9,936 |   |
| Exercise of stock options                                                           |   |             |   |   |            |   |   |          |   |   | 15,709       |   |   |                       | 2      |   |              |   | 96     |                                          |   |   |           |   |   |                             |   |   |   |   |   |   |   |   | 98 |   |
| Common stock dividends declared, 1% for both second and third quarters              |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |              |   | 1,823  |                                          |   |   | (1,823         | )      |   |                             |   |   |   |   |   |   |   |   | - |   |
| Cash dividends declared, $.0589 per share                                           |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   | (875           | )      |   |                             |   |   |   |   |   |   |   |   | (875 | ) |
| Balance, September 30, 2008                                                         |   |             | -      |   |            | $      | -      |          |   |   | 14,890,721   |   |   | $                          | 1,496  |   |              | $      | 68,249 |                                          |   | $      | 28,637         |   |   | $                                | (133   | ) |   | $ | (569 | ) |   | $ | 97,680 |   |
|                                                                                |   |             |   |   |            |   |   |          |   |   |         |   |   |                       |   |   |              |   |   |                                          |   |   |           |   |   |                             |   |   |   |   |   |   |   |   |   |   |

----

Index

|                                                                                                  |   | Nine Months Ended September 30, |     |
|-------------------------------------------------------------------------------------------------------|--------|--------------------------------------|----------|
|                                                                                                  |   | 2009                                 |     |   | 2008 |   |
| Cash flows from operating activities:                                                                 |   |                                 |     |   |   |   |
| Net loss                                                                                              |   | $                                    | (16,442  | ) |   | $ | (7,675 | ) |
| Adjustments to reconcile net loss to net cash provided by operating activities:                       |   |                                 |     |   |   |   |   |   |
| Depreciation and amortization                                                                         |   |                                 | 3,387    |   |   |   | 3,045 |   |
| Provision for loan losses                                                                             |   |                                 | 25,828   |   |   |   | 13,138 |   |
| Deferred income tax benefit                                                                           |   |                                 | (12,001  | ) |   |   | (2,785 | ) |
| Investment securities net realized gains                                                              |   |                                 | (2,581   | ) |   |   | (1,055 | ) |
| Net amortization of investment premium/discount                                                       |   |                                 | 1,490    |   |   |   | (43 | ) |
| Write-down of investment securities                                                                   |   |                                 | 763      |   |   |   | 2,183 |   |
| Stock-based compensation                                                                              |   |                                 | 529      |   |   |   | 542 |   |
| Loss on sales of OREO                                                                                 |   |                                 | 173      |   |   |   | 2 |   |
| Other                                                                                                 |   |                                 | 197      |   |   |   | (254 | ) |
| Mortgage loans originated for sale                                                                    |   |                                 | (44,405  | ) |   |   | (38,541 | ) |
| Proceeds from sales of mortgage loans                                                                 |   |                                 | 42,599   |   |   |   | 41,152 |   |
| Fees on mortgage loans sold                                                                           |   |                                 | (736     | ) |   |   | (616 | ) |
| Change in accrued interest receivable and other assets                                                |   |                                 | 3,201    |   |   |   | (3,506 | ) |
| Change in accrued interest payable and other liabilities                                              |   |                                 | 1,128    |   |   |   | 2,693 |   |
| Net cash provided by operating activities                                                             |   |                                 | 3,130    |   |   |   | 8,280 |   |
|                                                                                                  |   |                                 |     |   |   |   |   |   |
| Cash flows from investing activities:                                                                 |   |                                 |     |   |   |   |   |   |
| Purchases of investment securities available for sale                                                 |   |                                 | (549,113 | ) |   |   | (93,426 | ) |
| Sales of investment securities available for sale                                                     |   |                                 | 379,774  |   |   |   | 34,989 |   |
| Repayments of principal and maturities of investment securities available for sale                    |   |                                 | 163,697  |   |   |   | 30,461 |   |
| Acquisition of Naples Capital Advisors business                                                       |   |                                 | -        |   |   |   | (1,378 | ) |
| Net cash received in acquistion of operations - Riverside Bank of the Gulf Coast                 |   |                                 | 271,398  |   |   |   | - |   |
| Net (purchase) sale of FHLB stock                                                                     |   |                                 | 1,277    |   |   |   | (1,943 | ) |
| Loans originated or acquired, net of principal repayments                                             |   |                                 | (35,922  | ) |   |   | (107,808 | ) |
| Purchases of premises and equipment                                                                   |   |                                 | (2,074   | ) |   |   | (665 | ) |
| Proceeds from sale of OREO                                                                            |   |                                 | 4,461    |   |   |   | - |   |
| Proceeds from disposal of premises, equipment and intangible assets                                   |   |                                 | 30       |   |   |   | 29 |   |
| Net cash provided by (used in) investing activities                                                   |   |                                 | 233,528  |   |   |   | (139,741 | ) |
|                                                                                                  |   |                                 |     |   |   |   |   |   |
| Cash flows from financing activities:                                                                 |   |                                 |     |   |   |   |   |   |
| Net increase (decrease) in demand, money market and savings accounts                                  |   |                                 | 67,501   |   |   |   | (73,909 | ) |
| Net increase (decrease) in time deposits                                                              |   |                                 | (77,692  | ) |   |   | 98,480 |   |
| Net change in brokered time deposits                                                                  |   |                                 | (111,086 | ) |   |   | 38,668 |   |
| Net increase (decrease) in federal funds purchased and securities sold under agreements to repurchase |   |                                 | 1,850    |   |   |   | (1,570 | ) |
| Increase in long term FHLB advances                                                                   |   |                                 | -        |   |   |   | 92,900 |   |
| Repayment of long term FHLB advances                                                                  |   |                                 | (7,900   | ) |   |   | (75,000 | ) |
| Net change in short term FHLB advances                                                                |   |                                 | (70,000  | ) |   |   | 25,000 |   |
| Income tax effect related to stock-based compensation                                                 |   |                                 | (98      | ) |   |   | (61 | ) |
| Net issuance costs of preferred stock and common warrants                                             |   |                                 | (48      | ) |   |   | - |   |
| Net proceeds from issuance of common shares                                                           |   |                                 |     |   |   |   | 10,023 |   |
| Cash dividends paid to common shareholders                                                            |   |                                 | -        |   |   |   | (1,674 | ) |
| Cash dividends paid to preferred shareholders                                                         |   |                                 | (1,285   | ) |   |   | - |   |
| Net cash provided by (used in) financing activities                                                   |   |                                 | (198,758 | ) |   |   | 112,857 |   |
|                                                                                                  |   |                                 |     |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                                                  |   |                                 | 37,900   |   |   |   | (18,604 | ) |
| Cash and cash equivalents at beginning of period                                                      |   |                                 | 73,734   |   |   |   | 71,059 |   |
| Cash and cash equivalents at end of period                                                            |   | $                                    | 111,634  |   |   | $ | 52,455 |   |
|                                                                                                  |   |                                 |     |   |   |   |   |   |
| Supplemental disclosures of cash paid:                                                                |   |                                 |     |   |   |   |   |   |
| Interest                                                                                              |   | $                                    | 28,198   |   |   | $ | 34,411 |   |
| Income taxes                                                                                          |   |                                 | -        |   |   |   | 125 |   |
| Supplemental information:                                                                             |   |                                 |     |   |   |   |   |   |
| Financing of sale of premises to third party                                                          |   | $                                    | -        |   |   | $ | 60 |   |
| Fair value of noncash assets acquired                                                                 |   |                                 | 49,193   |   |   |   | - |   |
| Fair value of liabilities assumed                                                                     |   |                                 | 320,594  |   |   |   | - |   |
| Transfer of loans to OREO                                                                             |   |                                 | 24,255   |   |   |   | 4,046 |   |
| Transfer of OREO to Premises and Equipment                                                            |   |                                 | 2,942    |   |   |   | - |   |

----

Index

----

Index

----

Index

----

Index

|                                                |   | September 30, 2009 |    |
|-----------------------------------------------------|--------|--------------------|---------|
|                                                |   | Amortized Cost     |    |   | Unrealized Gains |   |   | Unrealized Losses |   |   | Estimated Fair Value |   |
| U.S. Government agencies and corporations           |   | $                  | 48,731  |   |   | $ | 16 |   |   | $ | 124 |   |   | $ | 48,623 |   |
| States and political subdivisions—tax exempt  |   |               | 7,753   |   |   |   | 389 |   |   |   | 0 |   |   |   | 8,142 |   |
| States and political subdivisions—taxable     |   |               | 2,315   |   |   |   | - |   |   |   | 148 |   |   |   | 2,167 |   |
| Marketable equity securities                        |   |               | 12      |   |   |   | 10 |   |   |   | - |   |   |   | 22 |   |
| Mortgage-backed securities -  residential |   |               | 197,894 |   |   |   | 4,131 |   |   |   | 319 |   |   |   | 201,706 |   |
| Corporate bonds                                     |   |               | 2,876   |   |   |   | - |   |   |   | 1,135 |   |   |   | 1,741 |   |
| Collateralized debt obligations                     |   |               | 5,000   |   |   |   | - |   |   |   | 2,957 |   |   |   | 2,043 |   |
|                                                |   | $                  | 264,581 |   |   | $ | 4,546 |   |   | $ | 4,683 |   |   | $ | 264,444 |   |

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

----

Index

|                                     |   | September 30, 2009 |    |
|------------------------------------------|--------|--------------------|---------|
|                                     |   | Fair Value         |    |   | Amortized Cost |   |
| Due in one year or less                  |   | $                  | -       |   |   | $ | - |   |
| Due after one year through five years    |   |               | 32,716  |   |   |   | 32,578 |   |
| Due after five years through ten years   |   |               | 24,049  |   |   |   | 23,906 |   |
| Due after ten years                      |   |               | 5,951   |   |   |   | 10,191 |   |
| Marketable equity securities             |   |               | 22      |   |   |   | 12 |   |
| Mortgage-backed securities - residential |   |               | 201,706 |   |   |   | 197,894 |   |
|                                     |   | $                  | 264,444 |   |   | $ | 264,581 |   |
|                                     |   |               |    |   |   |   |   |   |

|                                     |   | December 31, 2008 |    |
|------------------------------------------|--------|-------------------|---------|
|                                     |   | Fair Value        |    |   | Amortized Cost |   |
| Due in one year or less                  |   | $                 | 10,200  |   |   | $ | 10,190 |   |
| Due after one year through five years    |   |              | 38,560  |   |   |   | 38,247 |   |
| Due after five years through ten years   |   |              | 3,757   |   |   |   | 3,708 |   |
| Due after ten years                      |   |              | 15,264  |   |   |   | 17,538 |   |
| Marketable equity securities             |   |              | 12      |   |   |   | 12 |   |
| Mortgage-backed securities - residential |   |              | 157,977 |   |   |   | 157,066 |   |
|                                     |   | $                 | 225,770 |   |   | $ | 226,761 |   |
|                                     |   |              |    |   |   |   |   |   |

|                                               |   | Less than 12 Months        |   |   | 12 Months or Longer |   |   | Total                      |   |
|----------------------------------------------------|--------|----------------------------|--------|--------|---------------------|--------|--------|----------------------------|--------|
| September 30, 2009                                 |   | Estimated Fair Value  |   |   | Unrealized Losses   |   |   | Estimated Fair Value  |   |   | Unrealized Losses |   |   | Estimated Fair Value  |   |   | Unrealized Losses |   |
| U.S. Government agencies and corporations          |   | $                          | 24,838 |   |                | $      | 124    |                       |   | $ | - |   |   | $ | - |   |   | $ | 24,838 |   |   | $ | 124 |   |
| States and political subdivisions—tax exempt |   |                       | -      |   |                |   | -      |                       |   |   | 275 |   |   |   | 0 |   |   |   | 275 |   |   |   | 0 |   |
| States and political subdivisions—taxable    |   |                       | -      |   |                |   | -      |                       |   |   | 2,167 |   |   |   | 148 |   |   |   | 2,167 |   |   |   | 148 |   |
| Mortgage-backed securities - residential           |   |                       | 18,217 |   |                |   | 319    |                       |   |   | - |   |   |   | - |   |   |   | 18,217 |   |   |   | 319 |   |
| Corporate bonds                                    |   |                       | -      |   |                |   | -      |                       |   |   | 1,741 |   |   |   | 1,135 |   |   |   | 1,741 |   |   |   | 1,135 |   |
| Collateralized debt obligation                     |   |                       | -      |   |                |   | -      |                       |   |   | 2,043 |   |   |   | 2,957 |   |   |   | 2,043 |   |   |   | 2,957 |   |
| Total temporarily impaired                         |   | $                          | 43,055 |   |                | $      | 443    |                       |   | $ | 6,226 |   |   | $ | 4,240 |   |   | $ | 49,281 |   |   | $ | 4,683 |   |
|                                               |   |                       |   |   |                |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

Index

|                                               |   | Less than 12 Months        |   |   | 12 Months or Longer |   |   | Total                      |   |
|----------------------------------------------------|--------|----------------------------|--------|--------|---------------------|--------|--------|----------------------------|--------|
| December 31, 2008                                  |   | Estimated Fair Value  |   |   | Unrealized Losses   |   |   | Estimated Fair Value  |   |   | Unrealized Losses |   |   | Estimated Fair Value  |   |   | Unrealized Losses |   |
| U.S. Government agencies and corporations          |   | $                          | -      |   |                | $      | -      |                       |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| States and political subdivisions—tax exempt |   |                       | 2,413  |   |                |   | 20     |                       |   |   | 274 |   |   |   | 1 |   |   |   | 2,687 |   |   |   | 21 |   |
| States and political subdivisions-taxable          |   |                       | 2,247  |   |                |   | 70     |                       |   |   | - |   |   |   | - |   |   |   | 2,247 |   |   |   | 70 |   |
| Mortgage-backed securities - residential           |   |                       | 14,045 |   |                |   | 83     |                       |   |   | 17,015 |   |   |   | 338 |   |   |   | 31,060 |   |   |   | 421 |   |
| Corporate bonds                                    |   |                       | -      |   |                |   | -      |                       |   |   | 1,712 |   |   |   | 1,158 |   |   |   | 1,712 |   |   |   | 1,158 |   |
| Collateralized debt obligations                    |   |                       | -      |   |                |   | -      |                       |   |   | 3,512 |   |   |   | 1,488 |   |   |   | 3,512 |   |   |   | 1,488 |   |
| Total temporarily impaired                         |   | $                          | 18,705 |   |                | $      | 173    |                       |   | $ | 22,513 |   |   | $ | 2,985 |   |   | $ | 41,218 |   |   | $ | 3,158 |   |
|                                               |   |                       |   |   |                |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

Index

|                                        |   | Three Months EndedSeptember 30, 2009 |   |
|---------------------------------------------|--------|-------------------------------------------|--------|
| Beginning balance, July 1, 2009             |   | $                                         | 9,996  |   |
| Additions/Subtractions                      |   |                                      |   |   |
| Credit losses recognized during the quarter |   |                                      | -      |   |
| Ending balance, September 30, 2009          |   | $                                         | 9,996  |   |

|                              |   | September 30,2009 |      |   | December 31,2008 |   |
|-----------------------------------|--------|------------------------|-----------|--------|-----------------------|--------|
| Real estate mortgage loans:       |   |                   |      |   |                  |   |
| Commercial                        |   | $                      | 683,828   |   |                  | $      | 658,516 |   |
| Residential                       |   |                   | 240,485   |   |                  |   | 205,062 |   |
| Farmland                          |   |                   | 13,346    |   |                  |   | 13,441 |   |
| Construction and vacant land      |   |                   | 114,613   |   |                  |   | 147,309 |   |
| Commercial and agricultural loans |   |                   | 71,789    |   |                  |   | 71,352 |   |
| Indirect auto loans               |   |                   | 55,805    |   |                  |   | 82,028 |   |
| Home equity loans                 |   |                   | 38,056    |   |                  |   | 34,062 |   |
| Other consumer loans              |   |                   | 10,305    |   |                  |   | 11,549 |   |
| Total loans                       |   |                   | 1,228,227 |   |                  |   | 1,223,319 |   |
|                              |   |                   |      |   |                  |   |   |   |
| Net deferred loan costs           |   |                   | 1,404     |   |                  |   | 1,656 |   |
| Loans, net of deferred loan costs |   | $                      | 1,229,631 |   |                  | $      | 1,224,975 |   |

|                                         |   | Three Months EndedSeptember 30, |   |   | Nine Months EndedSeptember 30, |   |
|----------------------------------------------|--------|---------------------------------|--------|--------|--------------------------------|--------|
|                                         |   | 2009                            |   |   | 2008                           |   |   | 2009 |   |   | 2008 |   |
| Balance, beginning of period                 |   | $                               | 25,446 |   |                           | $      | 16,627 |   |   | $ | 23,783 |   |   | $ | 14,973 |   |
| Provision for loan losses charged to expense |   |                            | 14,756 |   |                           |   | 4,768 |   |   |   | 25,828 |   |   |   | 13,138 |   |
| Loans charged off                            |   |                            | (8,114 | )      |                           |   | (3,385 | ) |   |   | (17,647 | ) |   |   | (10,136 | ) |
| Recoveries of loans previously charged off   |   |                            | 27     |   |                           |   | 25 |   |   |   | 151 |   |   |   | 60 |   |
| Balance, September 30                        |   | $                               | 32,115 |   |                           | $      | 18,035 |   |   | $ | 32,115 |   |   | $ | 18,035 |   |

----

Index

|                                   |   | As of September 30, 2009 |   |   | As of December 31, 2008 |   |
|----------------------------------------|--------|-------------------------------|--------|--------|------------------------------|--------|
| Collateral Type                        |   | Number of Loans               |   |   | Outstanding Balance          |   |   | Number of Loans |   |   | Outstanding Balance |   |
| Residential 1-4 family                 |   |                          | 35     |   |                         | $      | 8,187 |   |   |   | 18 |   |   | $ | 4,014 |   |
| Commercial 1-4 family investment       |   |                          | 15     |   |                         |   | 14,652 |   |   |   | 10 |   |   |   | 8,063 |   |
| Commercial and agricultural            |   |                          | 5      |   |                         |   | 669 |   |   |   | 2 |   |   |   | 64 |   |
| Commercial real estate                 |   |                          | 23     |   |                         |   | 21,025 |   |   |   | 17 |   |   |   | 13,013 |   |
| Land development                       |   |                          | 8      |   |                         |   | 20,353 |   |   |   | 4 |   |   |   | 12,584 |   |
| Government guaranteed loans            |   |                          | 2      |   |                         |   | 143 |   |   |   | 3 |   |   |   | 143 |   |
| Indirect auto, auto and consumer loans |   |                          | 111    |   |                         |   | 1,206 |   |   |   | 155 |   |   |   | 1,895 |   |
|                                   |   |                          |   |   |                         | $      | 66,235 |   |   |   |   |   |   | $ | 39,776 |   |

|                                              |   | September 30, 2009 |    |   | December 31, 2008 |   |
|---------------------------------------------------|--------|-------------------------|---------|--------|------------------------|--------|
| Loans with no allocated allowance for loan losses |   | $                       | 28,858  |   |                   | $      | 8,344 |   |
| Loans with allocated allowance for loan losses    |   |                    | 87,763  |   |                   |   | 53,765 |   |
| Total                                             |   | $                       | 116,621 |   |                   | $      | 62,109 |   |
|                                              |   |                    |    |   |                   |   |   |   |
| Amount of the allowance for loan losses allocated |   | $                       | 15,101  |   |                   | $      | 6,116 |   |

|                                                |   | Three Months EndedSeptember 30, |       |   | Nine Months EndedSeptember 30, |   |
|-----------------------------------------------------|--------|---------------------------------|------------|--------|--------------------------------|--------|
|                                                |   | 2009                            |       |   | 2008                           |   |   | 2009 |   |   | 2008 |   |
| Basic                                               |   |                            | 14,828,133 |   |                           |   | 14,787,201 |   |   |   | 14,814,982 |   |   |   | 14,462,756 |   |
| Dilutive effect of options outstanding              |   |                            | -          |   |                           |   | - |   |   |   | - |   |   |   | - |   |
| Dilutive effect of unvested restricted stock awards |   |                            | -          |   |                           |   | - |   |   |   | - |   |   |   | - |   |
| Dilutive effect of warrants                         |   |                            | -          |   |                           |   | - |   |   |   | - |   |   |   | - |   |
| Diluted                                             |   |                            | 14,828,133 |   |                           |   | 14,787,201 |   |   |   | 14,814,982 |   |   |   | 14,462,756 |   |

|                                           |   | Three Months EndedSeptember 30, |      |   | Nine Months EndedSeptember 30, |   |
|------------------------------------------------|--------|---------------------------------|-----------|--------|-------------------------------------|--------|
|                                           |   | 2009                            |      |   | 2008                                |   |   | 2009 |   |   | 2008 |   |
| Anti-dilutive stock options                    |   |                            | 687,856   |   |                                |   | 662,736 |   |   |   | 689,867 |   |   |   | 597,496 |   |
| Anti-dilutive unvested restricted stock awards |   |                            | 65,990    |   |                                |   | 60,352 |   |   |   | 79,759 |   |   |   | 58,021 |   |
| Anti-dilutive warrants                         |   |                            | 2,380,213 |   |                                |   | 1,273,824 |   |   |   | 2,380,213 |   |   |   | 962,341 |   |

----

Index

|                                     |   | Well Capitalized Requirement |        |   | Adequately Capitalized Requirement |   |       | September 30, 2009 Actual |   |   | December 31, 2008 Actual |   |
|------------------------------------------|--------|------------------------------|-------------|--------|------------------------------------|--------|------------|--------------------------------|--------|--------|-------------------------------|--------|
| Tier 1 Capital (to Average Assets)       |   |                         |        |   |                               |   |       |                           |   |   |                          |   |
| Consolidated                             |   |                         | N/A         |   |                               |   | 3 4.0 | %                              |   |   | 5.7                           | %      |   |   | 8.9 | % |
| TIB Bank                                 |   |                         | 3 5.0  | %      |                               |   | 3 4.0 | %                              |   |   | 5.6                           | %      |   |   | 7.3 | % |
| The Bank of Venice                       |   |                         | 3 5.0  | %      |                               |   | 3 4.0 | %                              |   |   | N/A                           |   |   |   | 8.1 | % |
|                                     |   |                         |        |   |                               |   |       |                           |   |   |                          |   |   |   |   |   |
| Tier 1 Capital (to Risk Weighted Assets) |   |                         |        |   |                               |   |       |                           |   |   |                          |   |   |   |   |   |
| Consolidated                             |   |                         | N/A         |   |                               |   | 3 4.0 | %                              |   |   | 7.8                           | %      |   |   | 11.3 | % |
| TIB Bank                                 |   |                         | 3 6.0  | %      |                               |   | 3 4.0 | %                              |   |   | 7.8                           | %      |   |   | 9.3 | % |
| The Bank of Venice                       |   |                         | 3 6.0  | %      |                               |   | 3 4.0 | %                              |   |   | N/A                           |   |   |   | 11.2 | % |
|                                     |   |                         |        |   |                               |   |       |                           |   |   |                          |   |   |   |   |   |
| Total Capital (to Risk Weighted Assets)  |   |                         |        |   |                               |   |       |                           |   |   |                          |   |   |   |   |   |
| Consolidated                             |   |                         | N/A         |   |                               |   | 3 8.0 | %                              |   |   | 9.1                           | %      |   |   | 12.6 | % |
| TIB Bank                                 |   |                         | 3 10.0 | %      |                               |   | 3 8.0 | %                              |   |   | 9.1                           | %      |   |   | 10.5 | % |
| The Bank of Venice                       |   |                         | 3 10.0 | %      |                               |   | 3 8.0 | %                              |   |   | N/A                           |   |   |   | 12.4 | % |
|                                     |   |                         |        |   |                               |   |       |                           |   |   |                          |   |   |   |   |   |

| Cash and cash equivalents                                       |   | $      | 271,398 |   |
|-----------------------------------------------------------------|--------|--------|---------|--------|
| Securities available for sale                                   |   |   | 31,850  |   |
| Loans                                                           |   |   | 10,737  |   |
| Intangible assets                                               |   |   | 5,087   |   |
| Goodwill                                                        |   |   | 1,201   |   |
| Other                                                           |   |   | 321     |   |
| Total assets acquired                                           |   | $      | 320,594 |   |
|                                                            |   |   |    |   |
| Deposits (including deposit premium on certificates of deposit) |   | $      | 319,232 |   |
| Other liabilities                                               |   |   | 1,362   |   |
| Total liabilities assumed                                       |   | $      | 320,594 |   |

----

Index

|                                               |   | Fair Value Measurements at September 30, 2009 Using |    |
|----------------------------------------------------|--------|-----------------------------------------------------|---------|
|                                               |   | September 30, 2009                             |    |   | Quoted Prices in Active Markets for Identical Assets(Level 1) |   |   | Significant Other Observable Inputs(Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   |
| Assets:                                            |   |                                                |    |   |   |   |   |   |   |   |   |   |
| U.S. Government agencies and corporations          |   | $                                                   | 48,623  |   |   | $ | - |   |   | $ | 48,623 |   |   | $ | - |   |
| States and political subdivisions—tax exempt |   |                                                | 8,142   |   |   |   | - |   |   |   | 8,142 |   |   |   | - |   |
| States and political subdivisions—taxable    |   |                                                | 2,167   |   |   |   | - |   |   |   | 2,167 |   |   |   | - |   |
| Marketable equity securities                       |   |                                                | 22      |   |   |   | - |   |   |   | 22 |   |   |   | - |   |
| Mortgage-backed securities - residential           |   |                                                | 201,706 |   |   |   | - |   |   |   | 201,706 |   |   |   | - |   |
| Corporate bonds                                    |   |                                                | 1,741   |   |   |   | - |   |   |   | 1,741 |   |   |   | - |   |
| Collateralized debt obligations                    |   |                                                | 2,043   |   |   |   | - |   |   |   | - |   |   |   | 2,043 |   |
| Available for sale securities                      |   | $                                                   | 264,444 |   |   | $ | - |   |   | $ | 262,401 |   |   | $ | 2,043 |   |
|                                               |   |                                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                               |   | Fair Value Measurements at December 31, 2008 Using |    |
|----------------------------------------------------|--------|----------------------------------------------------|---------|
|                                               |   | December 31, 2008                             |    |   | Quoted Prices in Active Markets for Identical Assets(Level 1) |   |   | Significant Other Observable Inputs(Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   |
| Assets:                                            |   |                                               |    |   |   |   |   |   |   |   |   |   |
| U.S. Government agencies and corporations          |   | $                                                  | 51,668  |   |   | $ | - |   |   | $ | 51,668 |   |   | $ | - |   |
| States and political subdivisions—tax exempt |   |                                               | 7,789   |   |   |   | - |   |   |   | 7,789 |   |   |   | - |   |
| States and political subdivisions—taxable    |   |                                               | 2,337   |   |   |   | - |   |   |   | 2,337 |   |   |   | - |   |
| Marketable equity securities                       |   |                                               | 12      |   |   |   | - |   |   |   | 12 |   |   |   | - |   |
| Mortgage-backed securities - residential           |   |                                               | 157,977 |   |   |   | - |   |   |   | 157,977 |   |   |   | - |   |
| Corporate bonds                                    |   |                                               | 1,712   |   |   |   | - |   |   |   | 1,712 |   |   |   | - |   |
| Collateralized debt obligations                    |   |                                               | 4,275   |   |   |   | - |   |   |   | - |   |   |   | 4,275 |   |
| Available for sale securities                      |   | $                                                  | 225,770 |   |   | $ | - |   |   | $ | 221,495 |   |   | $ | 4,275 |   |
|                                               |   |                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

Index

|                                                         |   | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Collateralized Debt Obligations |   |
|--------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------|--------|
|                                                         |   | 2009                                                                                                         |   |   | 2008 |   |
| Beginning balance, July 1,                                   |   | $                                                                                                            | 2,104  |   |   | $ | 9,873 |   |
| Included in earnings – other than temporary impairment |   |                                                                                                         | -      |   |   |   | (271 | ) |
| Included in other comprehensive income                       |   |                                                                                                         | (61    | ) |   |   | 533 |   |
| Transfer in to Level 3                                       |   |                                                                                                         | -      |   |   |   | - |   |
| Ending balance September 30,                                 |   | $                                                                                                            | 2,043  |   |   | $ | 10,135 |   |
|                                                         |   |                                                                                                         |   |   |   |   |   |   |

|                                                         |   | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Collateralized Debt Obligations |   |
|--------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------|--------|
|                                                         |   | 2009                                                                                                         |   |   | 2008 |   |
| Beginning balance, January 1,                                |   | $                                                                                                            | 4,275  |   |   | $ | 6,111 |   |
| Included in earnings – other than temporary impairment |   |                                                                                                         | (763   | ) |   |   | (1,227 | ) |
| Included in other comprehensive income                       |   |                                                                                                         | (1,469 | ) |   |   | 533 |   |
| Transfer in to Level 3                                       |   |                                                                                                         | -      |   |   |   | 4,718 |   |
| Ending balance September 30,                                 |   | $                                                                                                            | 2,043  |   |   | $ | 10,135 |   |
|                                                         |   |                                                                                                         |   |   |   |   |   |   |

|                                                                      |   | Fair Value Measurements at September 30, 2009 Using |   |
|---------------------------------------------------------------------------|--------|-----------------------------------------------------|--------|
|                                                                      |   | September 30, 2009                             |   |   | Quoted Prices in Active Markets for Identical Assets(Level 1) |   |   | Significant Other Observable Inputs(Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   |
| Assets:                                                                   |   |                                                |   |   |   |   |   |   |   |   |   |   |
| Impaired loans with specific allocations of the allowance for loan losses |   | $                                                   | 46,194 |   |   | $ | - |   |   | $ | - |   |   | $ | 46,194 |   |
| Other real estate owned                                                   |   |                                                | 19,582 |   |   |   | - |   |   |   | - |   |   |   | 19,582 |   |
| Other repossessed assets                                                  |   |                                                | 473    |   |   |   | - |   |   |   | 473 |   |   |   | - |   |
|                                                                      |   |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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

----

Index

|                                                             |   | September 30, 2009 |      |
|------------------------------------------------------------------|--------|-------------------------|-----------|
|                                                             |   | Carrying Value          |      |   | Estimated Fair Value |   |
| Financial assets:                                                |   |                    |      |   |   |   |
| Cash and cash equivalents                                        |   | $                       | 111,634   |   |   | $ | 111,634 |   |
| Investment securities available for sale                         |   |                    | 264,444   |   |   |   | 264,444 |   |
| Loans, net                                                       |   |                    | 1,197,516 |   |   |   | 1,097,750 |   |
| Federal Home Loan Bank and Independent Bankers’ Bank stock |   |                    | 10,447    |   |   | NM |   |
| Accrued interest receivable                                      |   |                    | 5,913     |   |   |   | 5,913 |   |
|                                                             |   |                    |      |   |   |   |   |   |
| Financial liabilities:                                           |   |                    |      |   |   |   |   |   |
| Non-contractual deposits                                         |   | $                       | 689,922   |   |   | $ | 689,922 |   |
| Contractual deposits                                             |   |                    | 643,702   |   |   |   | 648,058 |   |
| Federal Home Loan Bank Advances                                  |   |                    | 125,000   |   |   |   | 133,184 |   |
| Short-term borrowings                                            |   |                    | 74,209    |   |   |   | 74,205 |   |
| Long-term repurchase agreements                                  |   |                    | 30,000    |   |   |   | 30,830 |   |
| Subordinated debentures                                          |   |                    | 33,000    |   |   |   | 12,747 |   |
| Accrued interest payable                                         |   |                    | 7,607     |   |   |   | 7,607 |   |
|                                                             |   |                    |      |   |   |   |   |   |

----

Index

2.  

|   | · | two residential housing developer loan relationships, totaling $6.7 million, were reviewed and we determined that based upon the most recent appraisals available, no specific reserves were deemed necessary at this time (one of the relationships was paid down $2.5 million in October due to the sale of a house which partially collateralized the loan); |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | one residential housing developer loan relationship, totaling $6.9 million, was reviewed and required a provision and specific reserve allocation of $502,000; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | two loans, one collateralized by a hotel and the other collateralized by a mixed use residential/retail building in southwest Florida, totaling $7.8 million, for which we provided additional reserves of $618,000 during the quarter resulting in allocated specific reserves of $2.0 million; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | numerous smaller loans, primarily collateralized by commercial and residential real estate totaling $9.5 million, for which we provided additional reserves of $1.7 million during the quarter resulting in allocated specific reserves of $2.1 million. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   | · | The net interest margin increased 8 basis points to 2.86% during the quarter in comparison to 2.78% in the second quarter due primarily to the investment strategy related to the acquired Riverside deposits and the continued reduction of the interest cost of our deposits and other funding. The net interest margin continues to be adversely impacted by the level of non-accrual loans and nonperforming assets,which reduced the margin by approximately 25 basis points during the quarter. We continue to maintain a higher level of short-term investments in light of the continuing economic stress and elevated volatility of financial markets, which also reduced the margin. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We continue to focus on relationship-based lending and generated approximately $10 million of new commercial loans and originated $37 million of residential mortgages during the period. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Under challenging and volatile financial market conditions, Naples Capital Advisors and TIB Bank’s trust department continued to establish new investment management and trust relationships, increasing the market value of assets under management to $144 million as of quarter end. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | With respect to the Riverside transaction, during the third quarter, we have retained approximately 86% of the core deposits assumed while maintaining the attractive mix and reducing the interest cost of the deposit base. We further reduced operating expenses of these operations by over $700,000 compared to the second quarter. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | At the end of the quarter, we completed the merger of The Bank of Venice into TIB Bank, integrated its operations and converted its information system. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Our indirect auto loan portfolio declined $7.4 million, or 12%, during the quarter to $55.8 million, or 5% of total loans. Non-performing loans in this business segment decreased to $1.2 million in comparison to $1.3 million at June 30, 2009 and charge-offs during the quarter remained relatively constant at $1.8 million compared to the second quarter. Additionally, total delinquency of indirect auto loanswas relatively unchanged from the second quarter. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

----

Index

|                                                                  |   | 2009             |      |   | 2008            |    |
|-----------------------------------------------------------------------|--------|------------------|-----------|--------|-----------------|---------|
|  (Dollars in thousands)                                          |   | Average Balances |      |   | Income/ Expense |    |   | Yields/ Rates |   |   | Average Balances |   |   | Income/ Expense |   |   | Yields/ Rates |   |
| Interest-earning assets:                                              |   |             |      |   |            |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans (1)(2)                                                          |   | $                | 1,242,296 |   |            | $       | 17,281 |   |   |   | 5.52 | % |   | $ | 1,210,300 |   |   | $ | 19,718 |   |   |   | 6.48 | % |
| Investment securities (2)                                             |   |             | 350,981   |   |            |    | 3,035 |   |   |   | 3.43 | % |   |   | 188,814 |   |   |   | 2,194 |   |   |   | 4.62 | % |
| Money Market Mutual Funds                                             |   |             | 4,925     |   |            |    | 2 |   |   |   | 0.16 | % |   |   | - |   |   |   | - |   |   |   | - |   |
| Interest-bearing deposits in other banks                              |   |             | 27,279    |   |            |    | 18 |   |   |   | 0.26 | % |   |   | 1,151 |   |   |   | 7 |   |   |   | 2.27 | % |
| Federal Home Loan Bank stock                                          |   |             | 10,447    |   |            |    | 44 |   |   |   | 1.67 | % |   |   | 10,863 |   |   |   | 78 |   |   |   | 2.87 | % |
| Federal funds sold and securities sold under agreements to resell     |   |             | 1,811     |   |            |    | - |   |   |   | 0.00 | % |   |   | 55,680 |   |   |   | 282 |   |   |   | 2.01 | % |
| Total interest-earning assets                                         |   |             | 1,637,739 |   |            |    | 20,380 |   |   |   | 4.94 | % |   |   | 1,466,808 |   |   |   | 22,279 |   |   |   | 6.04 | % |
|                                                                  |   |             |      |   |            |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-earning assets:                                          |   |             |      |   |            |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and due from banks                                               |   |             | 28,897    |   |            |    |   |   |   |   |   |   |   |   | 18,259 |   |   |   |   |   |   |   |   |   |
| Premises and equipment, net                                           |   |             | 41,352    |   |            |    |   |   |   |   |   |   |   |   | 37,074 |   |   |   |   |   |   |   |   |   |
| Allowance for loan losses                                             |   |             | (23,696   | )      |            |    |   |   |   |   |   |   |   |   | (16,506 | ) |   |   |   |   |   |   |   |   |
| Other assets                                                          |   |             | 78,105    |   |            |    |   |   |   |   |   |   |   |   | 55,533 |   |   |   |   |   |   |   |   |   |
| Total non-interest-earning assets                                     |   |             | 124,658   |   |            |    |   |   |   |   |   |   |   |   | 94,360 |   |   |   |   |   |   |   |   |   |
| Total assets                                                          |   | $                | 1,762,397 |   |            |    |   |   |   |   |   |   |   | $ | 1,561,168 |   |   |   |   |   |   |   |   |   |
|                                                                  |   |             |      |   |            |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                         |   |             |      |   |            |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing deposits:                                            |   |             |      |   |            |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOW accounts                                                          |   | $                | 186,597   |   |            |    | 311 |   |   |   | 0.66 | % |   | $ | 178,698 |   |   |   | 712 |   |   |   | 1.59 | % |
| Money market                                                          |   |             | 208,176   |   |            |    | 646 |   |   |   | 1.23 | % |   |   | 143,737 |   |   |   | 753 |   |   |   | 2.08 | % |
| Savings deposits                                                      |   |             | 127,136   |   |            |    | 591 |   |   |   | 1.84 | % |   |   | 48,850 |   |   |   | 125 |   |   |   | 1.02 | % |
| Time deposits                                                         |   |             | 666,856   |   |            |    | 5,053 |   |   |   | 3.01 | % |   |   | 603,353 |   |   |   | 6,197 |   |   |   | 4.09 | % |
| Total interest-bearing deposits                                       |   |             | 1,188,765 |   |            |    | 6,601 |   |   |   | 2.20 | % |   |   | 974,638 |   |   |   | 7,787 |   |   |   | 3.18 | % |
|                                                                  |   |             |      |   |            |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other interest-bearing liabilities:                                   |   |             |      |   |            |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Short-term borrowings and FHLB advances                               |   |             | 202,213   |   |            |    | 1,284 |   |   |   | 2.52 | % |   |   | 260,207 |   |   |   | 1,958 |   |   |   | 2.99 | % |
| Long-term borrowings                                                  |   |             | 63,000    |   |            |    | 679 |   |   |   | 4.28 | % |   |   | 63,000 |   |   |   | 821 |   |   |   | 5.18 | % |
| Total interest-bearing liabilities                                    |   |             | 1,453,978 |   |            |    | 8,564 |   |   |   | 2.34 | % |   |   | 1,297,845 |   |   |   | 10,566 |   |   |   | 3.24 | % |
|                                                                  |   |             |      |   |            |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-bearing liabilities and shareholders’ equity:      |   |             |      |   |            |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand deposits                                                       |   |             | 178,795   |   |            |    |   |   |   |   |   |   |   |   | 142,839 |   |   |   |   |   |   |   |   |   |
| Other liabilities                                                     |   |             | 18,009    |   |            |    |   |   |   |   |   |   |   |   | 20,819 |   |   |   |   |   |   |   |   |   |
| Shareholders’ equity                                            |   |             | 111,615   |   |            |    |   |   |   |   |   |   |   |   | 99,665 |   |   |   |   |   |   |   |   |   |
| Total non-interest-bearing liabilities and shareholders’ equity |   |             | 308,419   |   |            |    |   |   |   |   |   |   |   |   | 263,323 |   |   |   |   |   |   |   |   |   |
| Total liabilities and shareholders’ equity                      |   |             | 1,762,397 |   |            |    |   |   |   |   |   |   |   | $ | 1,561,168 |   |   |   |   |   |   |   |   |   |
|                                                                  |   |             |      |   |            |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate spread  (tax equivalent basis)                |   |             |      |   |            |    |   |   |   |   | 2.60 | % |   |   |   |   |   |   |   |   |   |   | 2.80 | % |
| Net interest income  (tax equivalent basis)                 |   |             |      |   |            |  $ | 11,816 |   |   |   |   |   |   |   |   |   |   | $ | 11,713 |   |   |   |   |   |
| Net interest margin (3) (tax equivalent basis)                        |   |             |      |   |            |    |   |   |   |   | 2.86 | % |   |   |   |   |   |   |   |   |   |   | 3.18 | % |

| (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. |
|-----|----------------------------------------------------------------------------------------------|

----

Index

|                                                                   |   | 2009 Compared to 2008 (1)Due to Changes in |   |
|------------------------------------------------------------------------|--------|--------------------------------------------|--------|
| (Dollars in thousands)                                                 |   | Average Volume                             |   |   | Average Rate |   |   | Net Increase (Decrease) |   |
| Interest income                                                        |   |                                       |   |   |   |   |   |   |   |
| Loans (2)                                                              |   | $                                          | 510    |   |   | $ | (2,947 | ) |   | $ | (2,437 | ) |
| Investment securities (2)                                              |   |                                       | 1,513  |   |   |   | (672 | ) |   |   | 841 |   |
| Money Market Mutual Funds                                              |   |                                       | 2      |   |   |   | - |   |   |   | 2 |   |
| Interest-bearing deposits in other banks                               |   |                                       | 23     |   |   |   | (12 | ) |   |   | 11 |   |
| Federal Home Loan Bank stock                                           |   |                                       | (3     | ) |   |   | (31 | ) |   |   | (34 | ) |
| Federal funds sold and securities purchased under agreements to resell |   |                                       | (282   | ) |   |   | - |   |   |   | (282 | ) |
| Total interest income                                                  |   |                                       | 1,763  |   |   |   | (3,662 | ) |   |   | (1,899 | ) |
|                                                                   |   |                                       |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                                       |   |                                       |   |   |   |   |   |   |   |   |   |   |
| NOW accounts                                                           |   |                                       | 30     |   |   |   | (431 | ) |   |   | (401 | ) |
| Money market                                                           |   |                                       | 266    |   |   |   | (373 | ) |   |   | (107 | ) |
| Savings deposits                                                       |   |                                       | 309    |   |   |   | 157 |   |   |   | 466 |   |
| Time deposits                                                          |   |                                       | 603    |   |   |   | (1,747 | ) |   |   | (1,144 | ) |
| Short-term borrowings and FHLB advances                                |   |                                       | (396   | ) |   |   | (278 | ) |   |   | (674 | ) |
| Long-term borrowings                                                   |   |                                       | -      |   |   |   | (142 | ) |   |   | (142 | ) |
| Total interest expense                                                 |   |                                       | 812    |   |   |   | (2,814 | ) |   |   | (2,002 | ) |
|                                                                   |   |                                       |   |   |   |   |   |   |   |   |   |   |
| Change in net interest income                                          |   | $                                          | 951    |   |   | $ | (848 | ) |   | $ | 103 |   |

|   | (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. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

| (Dollars in thousands)                         |   | 2009   |   |   | 2008   |   |
|------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Service charges on deposit accounts            |   | $      | 988    |   |   | $      | 747 |   |
| Investment securities gains, net               |   |   | 1,127  |   |   |   | (126 | ) |
| Fees on mortgage loans sold                    |   |   | 340    |   |   |   | 176 |   |
| Investment advisory fees                       |   |   | 279    |   |   |   | 153 |   |
| Debit card income                              |   |   | 327    |   |   |   | 186 |   |
| Earnings on bank owned life insurance policies |   |   | 157    |   |   |   | 123 |   |
| Life insurance gain                            |   |   | 1,186  |   |   |   | - |   |
| Other                                          |   |   | 195    |   |   |   | 188 |   |
| Total non-interest income                      |   | $      | 4,599  |   |   | $      | 1,447 |   |
|                                           |   |   |   |   |   |   |   |   |

|                                           |   |   |   |   | 2009                 |   |   |                |   |   | 2008   |   |
|------------------------------------------------|--------|--------|--------|--------|----------------------|--------|--------|---------------------|--------|--------|--------|--------|
| (Dollars in thousands)                         |   | Total  |   |   | Riverside Operations |   |   | Excluding Riverside |   |   |   |   |
| Salary and employee benefits                   |   | $      | 7,288  |   |                 | $      | 482    |                |   | $      | 6,806  |   |   | $ | 6,045 |   |
| Net occupancy expense                          |   |   | 2,365  |   |                 |   | 322    |                |   |   | 2,043  |   |   |   | 2,171 |   |
| Legal, and other professional                  |   |   | 646    |   |                 |   | 12     |                |   |   | 634    |   |   |   | 370 |   |
| Information system conversion costs       |   |   | 144    |   |                 |   | (79    | )                   |   |   | 223    |   |   |   | - |   |
| Computer services                              |   |   | 718    |   |                 |   | 196    |                |   |   | 522    |   |   |   | 476 |   |
| Collection costs                               |   |   | 82     |   |                 |   | -      |                |   |   | 82     |   |   |   | 331 |   |
| Postage, courier and armored car               |   |   | 277    |   |                 |   | 27     |                |   |   | 250    |   |   |   | 217 |   |
| Marketing and community relations              |   |   | 265    |   |                 |   | 21     |                |   |   | 244    |   |   |   | 362 |   |
| Operating supplies                             |   |   | 217    |   |                 |   | 48     |                |   |   | 169    |   |   |   | 132 |   |
| Directors’ fees                          |   |   | 217    |   |                 |   | -      |                |   |   | 217    |   |   |   | 201 |   |
| Travel expenses                                |   |   | 94     |   |                 |   | 2      |                |   |   | 92     |   |   |   | 99 |   |
| FDIC and state assessments                     |   |   | 774    |   |                 |   | 129    |                |   |   | 645    |   |   |   | 287 |   |
| Amortization of intangibles                    |   |   | 389    |   |                 |   | 254    |                |   |   | 135    |   |   |   | 171 |   |
| Net gains on disposition of repossessed assets |   |   | (105   | )      |                 |   | -      |                |   |   | (105   | )      |   |   | 173 |   |
| OREO write downs and expenses                  |   |   | 1,017  |   |                 |   | -      |                |   |   | 1,017  |   |   |   | 390 |   |
| Other operating expense                        |   |   | 806    |   |                 |   | 18     |                |   |   | 788    |   |   |   | 561 |   |
| Total non-interest expense                     |   | $      | 15,194 |   |                 | $      | 1,432  |                |   | $      | 13,762 |   |   | $ | 11,986 |   |
|                                           |   |   |   |   |                 |   |   |                |   |   |   |   |   |   |   |   |

----

Index

----

Index

|                                                                  |   | 2009             |      |   | 2008            |   |
|-----------------------------------------------------------------------|--------|------------------|-----------|--------|-----------------|--------|
|  (Dollars in thousands)                                          |   | Average Balances |      |   | Income/ Expense |   |   | Yields/ Rates |   |   | Average Balances |   |   | Income/ Expense |   |   | Yields/ Rates |   |
| Interest-earning assets:                                              |   |             |      |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans (1)(2)                                                          |   | $                | 1,232,380 |   |            | $      | 52,476 |   |   |   | 5.69 | % |   | $ | 1,172,173 |   |   | $ | 59,148 |   |   |   | 6.74 | % |
| Investment securities (2)                                             |   |             | 340,660   |   |            |   | 9,445 |   |   |   | 3.71 | % |   |   | 174,337 |   |   |   | 6,209 |   |   |   | 4.76 | % |
| Money Market Mutual Funds                                             |   |             | 41,817    |   |            |   | 132 |   |   |   | 0.42 | % |   |   | - |   |   |   | - |   |   |   | - |   |
| Interest-bearing deposits in other banks                              |   |             | 32,742    |   |            |   | 58 |   |   |   | 0.24 | % |   |   | 2,478 |   |   |   | 50 |   |   |   | 2.71 | % |
| Federal Home Loan Bank stock                                          |   |             | 11,168    |   |            |   | 25 |   |   |   | 0.30 | % |   |   | 9,370 |   |   |   | 330 |   |   |   | 4.71 | % |
| Federal funds sold and securities sold under agreements to resell     |   |             | 3,916     |   |            |   | 5 |   |   |   | 0.17 | % |   |   | 69,795 |   |   |   | 1,338 |   |   |   | 2.56 | % |
| Total interest-earning assets                                         |   |             | 1,662,683 |   |            |   | 62,141 |   |   |   | 5.00 | % |   |   | 1,428,153 |   |   |   | 67,075 |   |   |   | 6.27 | % |
|                                                                  |   |             |      |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-earning assets:                                          |   |             |      |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and due from banks                                               |   |             | 31,650    |   |            |   |   |   |   |   |   |   |   |   | 19,165 |   |   |   |   |   |   |   |   |   |
| Premises and equipment, net                                           |   |             | 39,269    |   |            |   |   |   |   |   |   |   |   |   | 37,650 |   |   |   |   |   |   |   |   |   |
| Allowance for loan losses                                             |   |             | (23,837   | )      |            |   |   |   |   |   |   |   |   |   | (15,623 | ) |   |   |   |   |   |   |   |   |
| Other assets                                                          |   |             | 74,661    |   |            |   |   |   |   |   |   |   |   |   | 53,939 |   |   |   |   |   |   |   |   |   |
| Total non-interest-earning assets                                     |   |             | 121,743   |   |            |   |   |   |   |   |   |   |   |   | 95,131 |   |   |   |   |   |   |   |   |   |
| Total assets                                                          |   | $                | 1,784,426 |   |            |   |   |   |   |   |   |   |   | $ | 1,523,284 |   |   |   |   |   |   |   |   |   |
|                                                                  |   |             |      |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                         |   |             |      |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing deposits:                                            |   |             |      |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOW accounts                                                          |   | $                | 181,601   |   |            |   | 954 |   |   |   | 0.70 | % |   | $ | 183,947 |   |   |   | 2,601 |   |   |   | 1.89 | % |
| Money market                                                          |   |             | 192,357   |   |            |   | 2,145 |   |   |   | 1.49 | % |   |   | 164,444 |   |   |   | 3,128 |   |   |   | 2.54 | % |
| Savings deposits                                                      |   |             | 113,739   |   |            |   | 1,549 |   |   |   | 1.82 | % |   |   | 50,232 |   |   |   | 436 |   |   |   | 1.16 | % |
| Time deposits                                                         |   |             | 707,882   |   |            |   | 17,003 |   |   |   | 3.21 | % |   |   | 559,959 |   |   |   | 18,629 |   |   |   | 4.44 | % |
| Total interest-bearing deposits                                       |   |             | 1,195,579 |   |            |   | 21,651 |   |   |   | 2.42 | % |   |   | 958,582 |   |   |   | 24,794 |   |   |   | 3.45 | % |
|                                                                  |   |             |      |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other interest-bearing liabilities:                                   |   |             |      |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Short-term borrowings and FHLB advances                               |   |             | 216,688   |   |            |   | 4,019 |   |   |   | 2.48 | % |   |   | 229,503 |   |   |   | 5,661 |   |   |   | 3.29 | % |
| Long-term borrowings                                                  |   |             | 63,000    |   |            |   | 2,123 |   |   |   | 4.51 | % |   |   | 63,000 |   |   |   | 2,545 |   |   |   | 5.40 | % |
| Total interest-bearing liabilities                                    |   |             | 1,475,267 |   |            |   | 27,793 |   |   |   | 2.52 | % |   |   | 1,251,085 |   |   |   | 33,000 |   |   |   | 3.52 | % |
|                                                                  |   |             |      |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-bearing liabilities and shareholders’ equity:      |   |             |      |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand deposits                                                       |   |             | 172,847   |   |            |   |   |   |   |   |   |   |   |   | 151,566 |   |   |   |   |   |   |   |   |   |
| Other liabilities                                                     |   |             | 18,020    |   |            |   |   |   |   |   |   |   |   |   | 19,930 |   |   |   |   |   |   |   |   |   |
| Shareholders’ equity                                            |   |             | 118,292   |   |            |   |   |   |   |   |   |   |   |   | 100,703 |   |   |   |   |   |   |   |   |   |
| Total non-interest-bearing liabilities and shareholders’ equity |   |             | 309,159   |   |            |   |   |   |   |   |   |   |   |   | 272,199 |   |   |   |   |   |   |   |   |   |
| Total liabilities and shareholders’ equity                      |   | $                | 1,784,426 |   |            |   |   |   |   |   |   |   |   | $ | 1,523,284 |   |   |   |   |   |   |   |   |   |
|                                                                  |   |             |      |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate spread  (tax equivalent basis)                |   |             |      |   |            |   |   |   |   |   | 2.48 | % |   |   |   |   |   |   |   |   |   |   | 2.75 | % |
| Net interest income  (tax equivalent basis)                 |   |             |      |   |            | $      | 34,348 |   |   |   |   |   |   |   |   |   |   | $ | 34,075 |   |   |   |   |   |
| Net interest margin (3) (tax equivalent basis)                        |   |             |      |   |            |   |   |   |   |   | 2.76 | % |   |   |   |   |   |   |   |   |   |   | 3.19 | % |

| (4) | Average loans include non-performing loans. |
|-----|---------------------------------------------|

| (5) | 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. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Net interest margin is net interest income divided by average total interest-earning assets. |
|-----|----------------------------------------------------------------------------------------------|

----

Index

|                                                                   |   | 2009 Compared to 2008 (1)Due to Changes in |   |
|------------------------------------------------------------------------|--------|--------------------------------------------|--------|
| (Dollars in thousands)                                                 |   | Average Volume                             |   |   | Average Rate |   |   | Net Increase (Decrease) |   |
| Interest income                                                        |   |                                       |   |   |   |   |   |   |   |
| Loans (2)                                                              |   | $                                          | 2,921  |   |   | $ | (9,593 | ) |   | $ | (6,672 | ) |
| Investment securities (2)                                              |   |                                       | 4,859  |   |   |   | (1,623 | ) |   |   | 3,236 |   |
| Money Market Mutual Funds                                              |   |                                       | 132    |   |   |   | - |   |   |   | 132 |   |
| Interest-bearing deposits in other banks                               |   |                                       | 92     |   |   |   | (84 | ) |   |   | 8 |   |
| Federal Home Loan Bank stock                                           |   |                                       | 53     |   |   |   | (358 | ) |   |   | (305 | ) |
| Federal funds sold and securities purchased under agreements to resell |   |                                       | (670   | ) |   |   | (663 | ) |   |   | (1,333 | ) |
| Total interest income                                                  |   |                                       | 7,387  |   |   |   | (12,321 | ) |   |   | (4,934 | ) |
|                                                                   |   |                                       |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                                       |   |                                       |   |   |   |   |   |   |   |   |   |   |
| NOW accounts                                                           |   |                                       | (33    | ) |   |   | (1,614 | ) |   |   | (1,647 | ) |
| Money market                                                           |   |                                       | 467    |   |   |   | (1,450 | ) |   |   | (983 | ) |
| Savings deposits                                                       |   |                                       | 768    |   |   |   | 345 |   |   |   | 1,113 |   |
| Time deposits                                                          |   |                                       | 4,255  |   |   |   | (5,881 | ) |   |   | (1,626 | ) |
| Short-term borrowings and FHLB advances                                |   |                                       | (302   | ) |   |   | (1,340 | ) |   |   | (1,642 | ) |
| Long-term borrowings                                                   |   |                                       | -      |   |   |   | (422 | ) |   |   | (422 | ) |
| Total interest expense                                                 |   |                                       | 5,155  |   |   |   | (10,362 | ) |   |   | (5,207 | ) |
|                                                                   |   |                                       |   |   |   |   |   |   |   |   |   |   |
| Change in net interest income                                          |   | $                                          | 2,232  |   |   | $ | (1,959 | ) |   | $ | 273 |   |

|   | (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. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

| (Dollars in thousands)                         |   | 2009   |   |   | 2008   |   |
|------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Service charges on deposit accounts            |   | $      | 3,156  |   |   | $      | 2,188 |   |
| Investment securities gains (losses), net      |   |   | 1,818  |   |   |   | (1,128 | ) |
| Fees on mortgage loans sold                    |   |   | 773    |   |   |   | 621 |   |
| Investment advisory fees and trust fees        |   |   | 700    |   |   |   | 413 |   |
| Debit card income                              |   |   | 724    |   |   |   | 568 |   |
| Earnings on bank owned life insurance policies |   |   | 418    |   |   |   | 372 |   |
| Life insurance gain                            |   |   | 1,186  |   |   |   | - |   |
| Other                                          |   |   | 535    |   |   |   | 505 |   |
| Total non-interest income                      |   | $      | 9,310  |   |   | $      | 3,539 |   |
|                                           |   |   |   |   |   |   |   |   |

|                                                 |   |   |   |   | 2009                 |   |   |                |   |   | 2008   |   |
|------------------------------------------------------|--------|--------|--------|--------|----------------------|--------|--------|---------------------|--------|--------|--------|--------|
| (Dollars in thousands)                               |   | Total  |   |   | Riverside Operations |   |   | Excluding Riverside |   |   |   |   |
| Salary and employee benefits                         |   | $      | 21,736 |   |                 | $      | 1,428  |                |   | $      | 20,308 |   |   | $ | 18,456 |   |
| Net occupancy expense                                |   |   | 6,955  |   |                 |   | 1,019  |                |   |   | 5,936  |   |   |   | 6,371 |   |
| Legal, and other professional                        |   |   | 1,755  |   |                 |   | 76     |                |   |   | 1,679  |   |   |   | 1,355 |   |
| Information system conversion costs                  |   |   | 344    |   |                 |   | 121    |                |   |   | 223    |   |   |   | - |   |
| Computer services                                    |   |   | 2,006  |   |                 |   | 409    |                |   |   | 1,597  |   |   |   | 1,638 |   |
| Collection costs                                     |   |   | 304    |   |                 |   | -      |                |   |   | 304    |   |   |   | 877 |   |
| Postage, courier and armored car                     |   |   | 808    |   |                 |   | 129    |                |   |   | 679    |   |   |   | 668 |   |
| Marketing and community relations                    |   |   | 785    |   |                 |   | 74     |                |   |   | 711    |   |   |   | 962 |   |
| Operating supplies                                   |   |   | 552    |   |                 |   | 140    |                |   |   | 412    |   |   |   | 415 |   |
| Directors’ fees                                |   |   | 669    |   |                 |   | -      |                |   |   | 669    |   |   |   | 607 |   |
| Travel expenses                                      |   |   | 271    |   |                 |   | 7      |                |   |   | 264    |   |   |   | 265 |   |
| FDIC and state assessments                           |   |   | 2,296  |   |                 |   | 370    |                |   |   | 1,926  |   |   |   | 863 |   |
| Special FDIC assessment                              |   |   | 800    |   |                 |   | 169    |                |   |   | 631    |   |   |   | - |   |
| Amortization of intangibles                          |   |   | 1,041  |   |                 |   | 636    |                |   |   | 405    |   |   |   | 513 |   |
| Net (gain) loss on disposition of repossessed assets |   |   | (210   | )      |                 |   | -      |                |   |   | (210   | )      |   |   | 1,343 |   |
| OREO write downs and expenses                        |   |   | 2,423  |   |                 |   | -      |                |   |   | 2,423  |   |   |   | 767 |   |
| Other operating expense                              |   |   | 2,184  |   |                 |   | 93     |                |   |   | 2,091  |   |   |   | 1,776 |   |
| Total non-interest expense                           |   | $      | 44,719 |   |                 | $      | 4,671  |                |   | $      | 40,048 |   |   | $ | 36,876 |   |
|                                                 |   |   |   |   |                 |   |   |                |   |   |   |   |   |   |   |   |

----

Index

----

Index

|                             |   | September 30, 2009          |    |   | December 31, 2008      |   |
|----------------------------------|--------|-----------------------------|---------|--------|------------------------|--------|
| (Dollars in thousands)           |   | Commercial Real Estate |    |   | Percentage Composition |   |   | Commercial Real Estate |   |   | Percentage Composition |   |
| Mixed Use Commercial/Residential |   | $                           | 126,309 |   |                   |   | 19 | % |   | $ | 108,165 |   |   |   | 16 | % |
| Office Buildings                 |   |                        | 107,010 |   |                   |   | 16 | % |   |   | 105,159 |   |   |   | 16 | % |
| Hotels/Motels                    |   |                        | 98,118  |   |                   |   | 14 | % |   |   | 90,091 |   |   |   | 14 | % |
| 1-4 Family and Multi Family      |   |                        | 76,890  |   |                   |   | 11 | % |   |   | 88,512 |   |   |   | 14 | % |
| Guesthouses                      |   |                        | 84,320  |   |                   |   | 12 | % |   |   | 84,993 |   |   |   | 13 | % |
| Retail Buildings                 |   |                        | 77,668  |   |                   |   | 12 | % |   |   | 71,184 |   |   |   | 11 | % |
| Restaurants                      |   |                        | 50,019  |   |                   |   | 7 | % |   |   | 47,680 |   |   |   | 7 | % |
| Marinas/Docks                    |   |                        | 19,686  |   |                   |   | 3 | % |   |   | 20,130 |   |   |   | 3 | % |
| Warehouse and Industrial         |   |                        | 30,081  |   |                   |   | 4 | % |   |   | 29,031 |   |   |   | 4 | % |
| Other                            |   |                        | 13,727  |   |                   |   | 2 | % |   |   | 13,571 |   |   |   | 2 | % |
| Total                            |   | $                           | 683,828 |   |                   |   | 100 | % |   | $ | 658,516 |   |   |   | 100 | % |

|                                     |   | September 30, 2009           |    |   | December 31, 2008      |   |
|------------------------------------------|--------|------------------------------|---------|--------|------------------------|--------|
|                                     |   |                         |    |   |                   |   |   |   |   |   |   |   |
|                                     |   | Construction and Vacant Land |    |   | Percentage Composition |   |   | Construction and Vacant Land |   |   | Percentage Composition |   |
| Construction:                            |   |                         |    |   |                   |   |   |   |   |   |   |   |
| Residential – owner occupied       |   | $                            | 7,319   |   |                   |   | 6 | % |   | $ | 11,866 |   |   |   | 8 | % |
| Residential – commercial developer |   |                         | 15,900  |   |                   |   | 14 | % |   |   | 21,052 |   |   |   | 14 | % |
| Commercial structure                     |   |                         | 12,229  |   |                   |   | 11 | % |   |   | 18,629 |   |   |   | 13 | % |
|                                     |   |                         | 35,448  |   |                   |   | 31 | % |   |   | 51,547 |   |   |   | 35 | % |
| Land:                                    |   |                         |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Raw land                                 |   |                         | 25,825  |   |                   |   | 23 | % |   |   | 25,890 |   |   |   | 18 | % |
| Residential lots                         |   |                         | 14,105  |   |                   |   | 12 | % |   |   | 13,041 |   |   |   | 9 | % |
| Land development                         |   |                         | 17,745  |   |                   |   | 15 | % |   |   | 19,975 |   |   |   | 13 | % |
| Commercial lots                          |   |                         | 21,490  |   |                   |   | 19 | % |   |   | 36,856 |   |   |   | 25 | % |
| Total land                               |   |                         | 79,165  |   |                   |   | 69 | % |   |   | 95,762 |   |   |   | 65 | % |
|                                     |   |                         |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                    |   | $                            | 114,613 |   |                   |   | 100 | % |   | $ | 147,309 |   |   |   | 100 | % |

| (Dollars in thousands)                                                                                                                                                                                                                                                                                                                                    |   | September 30, 2009 |   |   | December 31, 2008 |    |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|--------|------------------------|---------|
| Total non-accrual loans                                                                                                                                                                                                                                                                                                                                   |   | $                       | 66,235 |   |                   | $       | 39,776 |   |
| Accruing loans delinquent 90 days or more                                                                                                                                                                                                                                                                                                                 |   |                    | -      |   |                   |    | - |   |
| Total non-performing loans                                                                                                                                                                                                                                                                                                                                |   |                    | 66,235 |   |                   |    | 39,776 |   |
|                                                                                                                                                                                                                                                                                                                                                      |   |                    |   |   |                   |    |   |   |
| Non-accrual investment securities                                                                                                                                                                                                                                                                                                                         |   |                    | 2,043  |   |                   |    | 763 |   |
| Repossessed personal property (primarily indirect auto loans)                                                                                                                                                                                                                                                                                             |   |                    | 473    |   |                   |    | 601 |   |
| Other real estate owned                                                                                                                                                                                                                                                                                                                                   |   |                    | 19,582 |   |                   |    | 4,323 |   |
| Other assets (*)                                                                                                                                                                                                                                                                                                                                          |   |                    | 2,087  |   |                   |    | 2,076 |   |
| Total  non-performing assets                                                                                                                                                                                                                                                                                                                    |   | $                       | 90,420 |   |                   | $       | 47,539 |   |
|                                                                                                                                                                                                                                                                                                                                                      |   |                    |   |   |                   |    |   |   |
| Allowance for loan losses                                                                                                                                                                                                                                                                                                                                 |   | $                       | 32,115 |   |                   | $       | 23,783 |   |
|                                                                                                                                                                                                                                                                                                                                                      |   |                    |   |   |                   |    |   |   |
| Loans in compliance with terms modified in troubled debt restructurings and not included in non-performing loans above                                      |   | $                       | 35,302 |   |                   |  $ |                     17,308  |   |
|                                                                                                                                                                                                                                                                                                                                                      |   |                    |   |   |                   |    |   |   |
| Non-performing assets as a percent of total assets                                                                                                                                                                                                                                                                                                        |   |                    | 5.26   | %      |                   |    | 2.95 | % |
| Non-performing loans as a percent of total loans                                                                                                                                                                                                                                                                                                          |   |                    | 5.39   | %      |                   |    | 3.25 | % |
| Allowance for loan losses as a percent of non-performing loans                                                                                                                                                                                                                                                                                            |   |                    | 48.49  | %      |                   |    | 59.79 | % |
| Annualized net charge-offs for the quarter as a percent of average loans                                                                                                                                                                                                                                                                                  |   |                    | 2.58   | %      |                   |    | 3.02 | % |
|                                                                                                                                                                                                                                                                                                                                                      |   |                    |   |   |                   |    |   |   |

----

Index

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

| (Dollars in thousands)           |   |  September 30, 2009    |   | December 31, 2008    |                |
|----------------------------------|--------|--------------------------------------------|--------|-------------------------------------|---------------------|
|  Collateral Description     |   | Number of Loans                            |   |                                | Outstanding Balance |   |   | Number of Loans |   |   | Outstanding Balance |   |
| Residential                      |   |                                       | 35     |                                |                | $ | 8,187 |   |   |   | 18 |   |   | $ | 4,014 |   |
| Commercial 1-4 family investment |   |                                       | 15     |                                |                |   | 14,652 |   |   |   | 10 |   |   |   | 8,063 |   |
| Commercial and agricultural      |   |                                       | 5      |                                |                |   | 669 |   |   |   | 2 |   |   |   | 64 |   |
| Commercial real estate           |   |                                       | 23     |                                |                |   | 21,025 |   |   |   | 17 |   |   |   | 13,013 |   |
| Land development                 |   |                                       | 8      |                                |                |   | 20,353 |   |   |   | 4 |   |   |   | 12,584 |   |
| Government guaranteed loans      |   |                                       | 2      |                                |                |   | 143 |   |   |   | 2 |   |   |   | 143 |   |
| Indirect auto and consumer loans |   |                                       | 111    |                                |                |   | 1,206 |   |   |   | 155 |   |   |   | 1,895 |   |
|                             |   |                                       |   |                                |                | $ | 66,235 |   |   |   |   |   |   | $ | 39,776 |   |

| Nonaccrual Loan Activity (Other Than Indirect Auto and Consumer) |   |
|------------------------------------------------------------------|--------|
| (Dollars in thousands)                                           |   |
|                                                             |   |   |   |
| Nonaccrual loans at June 30, 2009                                |   | $ | 60,489 |   |
| Returned to accrual                                              |   |   | (1,612 | ) |
| Net principal paid down on nonaccrual loans                      |   |   | (2,894 | ) |
| Charge-offs                                                      |   |   | (6,246 | ) |
| Loans  foreclosed - transfered to OREO                 |   |   | (15,475 | ) |
| Loans placed on nonaccrual                                       |   |   | 30,767 |   |
| Nonaccrual loans at September 30, 2009                           |   | $ | 65,029 |   |

----

Index

| Significant Nonaccrual Loans (Other Than Indirect Auto and Consumer)                       |   |
|--------------------------------------------------------------------------------------------|--------|
| (Dollars in thousands)                                                                     |   |
| Collateral Description                                                                     |   | Original Loan Amount |   |   | Original Loan to Value (Based on Original Appraisal) |   |   | Current Loan Amount |   |   | Specific Allocation of Reserve in Allowance for Loan Losses at September 30, 2009 |   |
| Arising in Third Quarter 2009                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial 1-4 family residential                                                          |   | $ | 7,378 |   |   |   | 70 | % |   | $ | 6,934 |   |   | $ | 502 |   |
| Two luxury homes in SW Florida – commercial developer                                |   |   | 4,994 |   |   |   | 58 | % |   |   | 4,994 |   |   |   | - |   |
| Hotel in SW Florida                                                                        |   |   | 4,600 |   |   |   | 79 | % |   |   | 4,118 |   |   |   | 618 |   |
| Mixed use – developer                                                                |   |   | 3,602 |   |   |   | 80 | % |   |   | 3,663 |   |   |   | 1,344 |   |
| Commercial real estate                                                                     |   |   | 1,720 |   |   |   | 78 | % |   |   | 1,676 |   |   |   | - |   |
| Commercial real estate                                                                     |   |   | 1,408 |   |   |   | 80 | % |   |   | 1,300 |   |   |   | 104 |   |
| Residential 1-4 family home                                                                |   |   | 1,008 |   |   |   | 80 | % |   |   | 1,001 |   |   |   | 389 |   |
| Numerous smaller balance primarily 1-4 family residential and commercial real estate loans |   |   |   |   |   |   |   |   |   |   | 7,081 |   |   |   | 1,606 |   |
|                                                                                       |   |   |   |   |   | Total |   |   | $ | 30,767 |   |   | $ | 4,563 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nonaccrual Prior to Third Quarter 2009 Remaining on Nonaccrual at September 30, 2009       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Vacant land – residential development                                                |   | $ | 10,000 |   |   |   | 61 | % |   | $ | 10,000 |   |   | $ | 5,000 |   |
| Two restaurants SW Florida                                                                 |   |   | 5,099 |   |   |   | 68 | % |   |   | 4,949 |   |   |   | 365 |   |
| Two office buildings – developer                                                     |   |   | 4,807 |   |   |   | 75 | % |   |   | 4,685 |   |   |   | 375 |   |
| Vacant land – residential development                                                |   |   | 4,750 |   |   |   | 37 | % |   |   | 4,750 |   |   |   | - |   |
| Office Building                                                                            |   |   | 1,158 |   |   |   | 66 | % |   |   | 1,118 |   |   |   | - |   |
| Numerous smaller balance primarily 1-4 family residential and commercial real estate loans |   |   |   |   |   |   |   |   |   |   | 8,760 |   |   |   | 1,056 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   | $ | 34,262 |   |   | $ | 6,796 |   |
|                                                                                       |   |   |   |   |   | Total |   |   | $ | 65,029 |   |   | $ | 11,359 |   |

| OREO Activity                 |   |
|-------------------------------|--------|
| (Dollars in thousands)        |   |
|                          |   |   |   |
| OREO as of June 30, 2009      |   | $ | 7,142 |   |
| Real estate acquired          |   |   | 15,475 |   |
| Write-down of value           |   |   | (606 | ) |
| Properties sold               |   |   | (2,429 | ) |
| OREO as of September 30, 2009 |   | $ | 19,582 |   |

----

Index

| OREO Analysis as of September 30, 2009                                                                               |   |
|----------------------------------------------------------------------------------------------------------------------|--------|
| (Dollars in thousands)                                                                                               |   |
| Property Description                                                                                                 |   | Original Loan Amount |   |   | Original LTV |   |   | Carrying Value at September 30, 2009 |   |
| Acquired in Third Quarter 2009                                                                                       |   |   |   |   |   |   |   |   |   |
| Seven developed commercial lots                                                                                      |   | $ | 13,500 |   |   |   | 50 | % |   | $ | 9,111 |   |
| Six 1-4 family residential condominiums (new construction – seventh unit acquired was sold during the quarter) |   | $ | 7,066 |   |   |   | 72 | % |   |   | 4,922 |   |
| Other (1 lot and 1 condominium)                                                                                      |   |   |   |   |   |   |   |   |   |   | 611 |   |
|                                                                                                                 |   |   |   |   |   | Total |   |   | $ | 14,644 |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Acquired Prior to the Third Quarter                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Other Land (4 Lots – 3 Loans)                                                                                  |   |   |   |   |   |   |   |   |   | $ | 2,323 |   |
| Commercial Real Estate (3 Loans)                                                                                     |   |   |   |   |   |   |   |   |   |   | 2,107 |   |
| Other 1-4 Family Residential (3 Loans)                                                                               |   |   |   |   |   |   |   |   |   |   | 508 |   |
|                                                                                                                 |   |   |   |   |   | Total |   |   | $ | 19,582 |   |

| (Dollars in thousands)                                   |   | September 30, 2009 |    |   | December 31, 2008 |    |
|----------------------------------------------------------|--------|-------------------------|---------|--------|------------------------|---------|
| Loans with no allocated allowance for loan losses        |   | $                       | 28,858  |   |                   | $       | 8,344 |   |
| Loans with allocated allowance for loan losses           |   |                    | 87,763  |   |                   |    | 53,765 |   |
| Total                                                    |   | $                       | 116,621 |   |                   | $       | 62,109 |   |
|                                                     |   |                    |    |   |                   |    |   |   |
| Amount of the allowance for loan losses allocated        |   | $                       | 15,101  |   |                   | $       | 6,116 |   |
|                                                     |   |                    |    |   |                   |    |   |   |
|  Amount of nonaccrual loans classifited as impaired |   |  $                 | 65,029  |   |                   |  $ | 37,881 |   |

----

|                   |   | September 30, 2009   |    |
|------------------------|--------|----------------------|---------|
| (Dollars in thousands) |   | Total Impaired Loans |    |   | Impaired Loans With Allocated Allowance |   |   | Amount of Allowance Allocated |   |   | Impaired Loans With No Allocated Allowance |   |
| Commercial             |   | $                    | 2,815   |   |   | $ | 2,479 |   |   | $ | 558 |   |   | $ | 336 |   |
| Commercial Real Estate |   |                 | 100,940 |   |   |   | 74,865 |   |   |   | 12,311 |   |   |   | 26,075 |   |
| Residential            |   |                 | 10,831  |   |   |   | 8,980 |   |   |   | 1,888 |   |   |   | 1,851 |   |
| Consumer               |   |                 | 109     |   |   |   | 109 |   |   |   | 109 |   |   |   | - |   |
| HELOC                  |   |                 | 1,926   |   |   |   | 1,330 |   |   |   | 235 |   |   |   | 596 |   |
| Total                  |   | $                    | 116,621 |   |   | $ | 87,763 |   |   | $ | 15,101 |   |   | $ | 28,858 |   |

|                   |   | December 31, 2008    |   |
|------------------------|--------|----------------------|--------|
| (Dollars in thousands) |   | Total Impaired Loans |   |   | Impaired Loans With Allocated Allowance |   |   | Amount of Allowance Allocated |   |   | Impaired Loans With No Allocated Allowance |   |
| Commercial             |   | $                    | 1,654  |   |   | $ | 1,219 |   |   | $ | 1,183 |   |   | $ | 435 |   |
| Commercial Real Estate |   |                 | 52,924 |   |   |   | 47,251 |   |   |   | 3,963 |   |   |   | 5,673 |   |
| Residential            |   |                 | 6,307  |   |   |   | 4,312 |   |   |   | 838 |   |   |   | 1,995 |   |
| Consumer               |   |                 | 50     |   |   |   | 44 |   |   |   | - |   |   |   | 6 |   |
| HELOC                  |   |                 | 1,174  |   |   |   | 939 |   |   |   | 132 |   |   |   | 235 |   |
| Total                  |   | $                    | 62,109 |   |   | $ | 53,765 |   |   | $ | 6,116 |   |   | $ | 8,344 |   |

----

----

Index

----

Index

----

Index

----

Index

| (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                                    |   | $                | 377,351  |   |          | $      | 55,522   |           |   | $      | 131,005      |   |   | $            | 537,759  |   |   | $      | 126,590 |   |   | $ | 1,228,227 |   |
| Investment securities-taxable            |   |             | 25,690   |   |          |   | 20,464   |           |   |   | 928          |   |   |         | 30,929   |   |   |   | 178,269 |   |   |   | 256,280 |   |
| Investment securities-tax exempt         |   |             | -        |   |          |   | -        |           |   |   | -            |   |   |         | 4,187    |   |   |   | 3,955 |   |   |   | 8,142 |   |
| Marketable equity securities             |   |             | 22       |   |          |   | -        |           |   |   | -            |   |   |         | -        |   |   |   | - |   |   |   | 22 |   |
| FHLB stock                               |   |             | 10,447   |   |          |   | -        |           |   |   | -            |   |   |         | -        |   |   |   | - |   |   |   | 10,447 |   |
| Interest-bearing deposits in other banks |   |             | 90,169   |   |          |   | -        |           |   |   | -            |   |   |         | -        |   |   |   | - |   |   |   | 90,169 |   |
| Total interest-earning assets            |   |             | 503,679  |   |          |   | 75,986   |           |   |   | 131,933      |   |   |         | 572,875  |   |   |   | 308,814 |   |   |   | 1,593,287 |   |
|                                     |   |             |     |   |          |   |     |           |   |   |         |   |   |         |     |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:            |   |             |     |   |          |   |     |           |   |   |         |   |   |         |     |   |   |   |   |   |   |   |   |   |
| NOW accounts                             |   |             | 177,955  |   |          |   | -        |           |   |   | -            |   |   |         | -        |   |   |   | - |   |   |   | 177,955 |   |
| Money market                             |   |             | 208,919  |   |          |   | -        |           |   |   | -            |   |   |         | -        |   |   |   | - |   |   |   | 208,919 |   |
| Savings deposits                         |   |             | 129,021  |   |          |   | -        |           |   |   | -            |   |   |         | -        |   |   |   | - |   |   |   | 129,021 |   |
| Time deposits                            |   |             | 218,263  |   |          |   | 162,418  |           |   |   | 160,855      |   |   |         | 102,123  |   |   |   | 43 |   |   |   | 643,702 |   |
| Subordinated debentures                  |   |             | 25,000   |   |          |   | -        |           |   |   | -            |   |   |         | -        |   |   |   | 8,000 |   |   |   | 33,000 |   |
| Other borrowings                         |   |             | 104,209  |   |          |   | 10,000   |           |   |   | -            |   |   |         | 115,000  |   |   |   | - |   |   |   | 229,209 |   |
| Total interest-bearing liabilities       |   |             | 863,367  |   |          |   | 172,418  |           |   |   | 160,855      |   |   |         | 217,123  |   |   |   | 8,043 |   |   |   | 1,421,806 |   |
|                                     |   |             |     |   |          |   |     |           |   |   |         |   |   |         |     |   |   |   |   |   |   |   |   |   |
| Interest sensitivity gap                 |   | $                | (359,688 | )      |          | $      | (96,432  | )              |   | $      | (28,922      | )      |   | $            | 355,752  |   |   | $      | 300,771 |   |   | $ | 171,481 |   |
|                                     |   |             |     |   |          |   |     |           |   |   |         |   |   |         |     |   |   |   |   |   |   |   |   |   |
| Cumulative interest sensitivity gap      |   | $                | (359,688 | )      |          | $      | (456,120 | )              |   | $      | (485,042     | )      |   | $            | (129,290 | )      |   | $      | 171,481 |   |   | $ | 171,481 |   |
|                                     |   |             |     |   |          |   |     |           |   |   |         |   |   |         |     |   |   |   |   |   |   |   |   |   |
| Cumulative sensitivity ratio             |   |             | (22.6    | %)     |          |   | (28.6    | %)             |   |   | (30.4        | %)     |   |         | (8.1     | %)     |   |   | 10.8 | % |   |   | 10.8 | % |

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Index

 3.  

|                                     |   | September 30, 2009 |   |
|------------------------------------------|--------|--------------------|--------|
|                                     |   | Parallel Shift     |   |   | Twist |   |
| Twelve Month Period                      |   |               | - 2    | % |   |   | +2 | % |   |   | +3%/+1 | % |
|                                     |   |               |   |   |   |   |   |   |   |   |   |   |
| Percentage change in net interest income |   |               | +4     | % |   |   | -3 | % |   | -7 |  % |

4.  

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Index

ART

1a. 

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|   | • total reported loans secured by multifamily and nonfarm nonresidential properties and loans for construction, land development, and other land of 300% or more of a bank’s total capital. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|               |   | For    |       |   | Against |   |      | Abstain |   |
|--------------------|--------|--------|------------|--------|---------|--------|-----------|---------|--------|
| Total Shares Voted |   |   | 11,425,120 |   |    |   | 1,642,188 |    |   |   | 6,662 |   |
| % of Voted         |   |   | 87.39      | %      |    |   | 12.56     | %       |   |   | 0.05 | % |
| % of Outstanding   |   |   | 76.71      | %      |    |   | 11.03     | %       |   |   | 0.04 | % |

|               |   | For    |       |   | Against |   |      | Abstain |   |
|--------------------|--------|--------|------------|--------|---------|--------|-----------|---------|--------|
| Total Shares Voted |   |   | 11,310,312 |   |    |   | 1,760,137 |    |   |   | 3,521 |   |
| % of Voted         |   |   | 86.51      | %      |    |   | 13.46     | %       |   |   | 0.03 | % |
| % of Outstanding   |   |   | 75.94      | %      |    |   | 11.82     | %       |   |   | 0.02 | % |

5.  

6.

|   | Exhibit 31.1           - | Chief Executive Officer’s certification required under Section 302 of Sarbanes-Oxley Act of 2002 |
|--------|----------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------|

|   | Exhibit 31.2           - | Chief Financial Officer’s certification required under Section 302 of Sarbanes-Oxley Act of 2002 |
|--------|---------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------|

|   | Exhibit 32.1           - | Chief Executive Officer’s certification required under Section 906 of Sarbanes-Oxley Act of 2002 |
|--------|---------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------|

|   | Exhibit 32.2           - | Chief Financial Officer’s certification required under Section 906 of Sarbanes-Oxley Act of 2002 |
|--------|---------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------|

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Index

|                               |   | TIB FINANCIAL CORP.                                                                                              |
|------------------------------------|--------|------------------------------------------------------------------------------------------------------------------|
|                               |   |                                                                                                             |
| Date:  November 16, 2009 |   |   /s/ Thomas J. Longe                                                                                  |
|                               |   | Thomas J. LongeChief Executive Officer and President                                                             |
|                               |   |                                                                                                             |
|                               |   |                                                                                                             |
| Date:  November 16, 2009 |   |   /s/ Stephen J. Gilhooly                                                                              |
|                               |   | Stephen J. GilhoolyExecutive Vice President, Chief Financial Officer and Treasurer(Principal Accounting Officer) |

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