##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

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

TIB FINANCIAL CORP.




(Exact name of registrant as specified in its charter)


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

99451 OVERSEAS HIGHWAY, KEY LARGO, FLORIDA 33037-7808




(Address of principal executive offices) (Zip Code)


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

Not Applicable




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


Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the issuer was required to file such
reports), and (2) has been subject to such filing requirements for the past
90 days. Yes [X] or No [  ]

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

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

|                              |  |  |                                    | 
|----------------------------- |  |  | ---------------------------------- | 
|Common Stock, $0.10 Par Value |  |  | 4,412,778                          | 
|                              |  |  |                                    | 
|Class                         |  |  | Outstanding as of November 3, 2003 | 





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TABLE OF CONTENTS



|                                          |                                                                                               |  |  |  |  |  |  | 
|----------------------------------------- | --------------------------------------------------------------------------------------------- |  |  |  |  |  |  | 
|Part I. FINANCIAL INFORMATION            
|                                          | Item 1. Financial Statements                                                                 
|                                          | Item 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|                                          | Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK                            
|                                          | Item 4. CONTROLS AND PROCEDURES                                                              
|Part II. OTHER INFORMATION               
|                                          | Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS                                  
|                                          | Item 5. OTHER INFORMATION                                                                    
|                                          | Item 6. EXHIBITS AND REPORTS ON FORM 8-K                                                     
|SIGNATURES                               
|EX-31.1 Section 302 Certification of CEO 
|EX-31.2 Section 302 Certification of CFO 
|EX-32.1 Section 906 Certification of CEO 
|EX-32.2 Section 906 Certification of CFO 
|EX-99.1 Report of Independent Accountants



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##### Table of Contents






Part I. FINANCIAL INFORMATION




Item 1. Financial Statements

TIB FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS

|                                                                                                  |                                            |                            |             |                    |             |                   |             |             |             | 
|------------------------------------------------------------------------------------------------- | ------------------------------------------ | -------------------------- | ----------- | ------------------ | ----------- | ----------------- | ----------- | ----------- | ----------- | 
|                                                                                                  |                                            |                            |             | September 30, 2003 |             | December 31, 2002
|                                                                                                  |                                            |                            |             |                    |             |                  
|                                                                                                  |                                            |                            |             | (Unaudited)        |             |                   |             |            
|ASSETS                                                                                            |                                            |                            |             |                    |             |                   |             |            
|Cash and due from banks                                                                           |                                            | $                          | 16,515,191  |                    |             | $                 | 18,397,659  |            
|Federal funds sold                                                                                |                                            |                            | 9,852,000   |                    |             |                   | 5,672,000   |            
|Investment securities available for sale                                                          |                                            |                            | 64,890,631  |                    |             |                   | 54,267,830  |            
|Loans, net of deferred loan costs and fees                                                        |                                            |                            | 512,076,093 |                    |             |                   | 442,527,934 |            
|Less: allowance for loan losses                                                                   |                                            |                            | 4,854,919   |                    |             |                   | 4,272,499   |            
|                                                                                                  |                                            |                            |             |                    |             |                   |             |            
|                                                                                                  | Loans, net                                 |                            |             | 507,221,174        |             |                   |             | 438,255,435 |            
|Premises and equipment, net                                                                       |                                            |                            | 20,974,167  |                    |             |                   | 19,457,150  |            
|Goodwill                                                                                          |                                            |                            | 155,232     |                    |             |                   | 2,234,024   |            
|Intangible assets, net                                                                            |                                            |                            | 1,760,047   |                    |             |                   | 1,978,918   |            
|Accrued interest receivable and other assets                                                      |                                            |                            | 24,529,837  |                    |             |                   | 26,885,630  |            
|                                                                                                  |                                            |                            |             |                    |             |                   |             |            
|                                                                                                  | TOTAL ASSETS                               |                            | $           | 645,898,279        |             |                   | $           | 567,148,646 |            
|                                                                                                  |                                            |                            |             |                    |             |                   |             |            
|LIABILITIES                                                                                       |                                            |                            |             |                    |             |                   |             |            
|Deposits:                                                                                         |                                            |                            |             |                    |             |                   |             |            
|                                                                                                  | Noninterest-bearing demand                 |                            | $           | 114,166,811        |             |                   | $           | 105,199,483 |            
|                                                                                                  | Interest-bearing demand and money market   |                            |             | 188,082,579        |             |                   |             | 186,426,703 |            
|                                                                                                  | Savings                                    |                            |             | 38,083,078         |             |                   |             | 31,440,801  |            
|                                                                                                  | Time deposits of $100,000 or more          |                            |             | 95,109,597         |             |                   |             | 73,509,232  |            
|                                                                                                  | Other time deposits                        |                            |             | 107,441,053        |             |                   |             | 86,107,232  |            
|                                                                                                  |                                            |                            |             |                    |             |                   |             |            
|                                                                                                  |                                            | Total Deposits             |             |                    | 542,883,118 |                   |             |             | 482,683,451 | 
|Federal Home Loan Bank advances                                                                   |                                            |                            | 35,000,000  |                    |             |                   | 20,000,000  |            
|Short-term borrowings                                                                             |                                            |                            | 3,072,256   |                    |             |                   | 4,578,959   |            
|Notes payable                                                                                     |                                            |                            | 5,250,000   |                    |             |                   | 5,250,000   |            
|Trust preferred securities                                                                        |                                            |                            | 13,000,000  |                    |             |                   | 13,000,000  |            
|Accrued interest payable and other liabilities                                                    |                                            |                            | 6,728,953   |                    |             |                   | 8,130,159   |            
|                                                                                                  |                                            |                            |             |                    |             |                   |             |            
|                                                                                                  | TOTAL LIABILITIES                          |                            |             | 605,934,327        |             |                   |             | 533,642,569 |            
|                                                                                                  |                                            |                            |             |                    |             |                   |             |            
|STOCKHOLDERS EQUITY                                                                              |                                            |                            |             |                    |             |                   |             |            
|Common stock  $.10 par value: 7,500,000 shares
authorized, 4,408,078 and 4,035,625 shares
issued |                                            |                            | 440,808     |                    |             |                   | 403,563     |            
|Additional paid in capital                                                                        |                                            |                            | 13,849,087  |                    |             |                   | 8,965,816   |            
|Retained earnings                                                                                 |                                            |                            | 25,237,057  |                    |             |                   | 23,021,698  |            
|Accumulated other comprehensive income                                                            |                                            |                            | 437,000     |                    |             |                   | 1,115,000   |            
|                                                                                                  |                                            |                            |             |                    |             |                   |             |            
|                                                                                                  |                                            | TOTAL STOCKHOLDERS EQUITY |             |                    | 39,963,952  |                   |             |             | 33,506,077  | 
|                                                                                                  |                                            |                            |             |                    |             |                   |             |            
|                                                                                                  | TOTAL LIABILITIES AND STOCKHOLDERS
EQUITY |                            | $           | 645,898,279        |             |                   | $           | 567,148,646 |            
|                                                                                                  |                                            |                            |             |                    |             |                   |             |            

(See notes to consolidated financial statements)

1



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##### Table of Contents



TIB FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

|                                                          |                                                     |                                               |           |                    |         |                   |           |           |         |      |            |            |           |   |            |            |           | 
|--------------------------------------------------------- | --------------------------------------------------- | --------------------------------------------- | --------- | ------------------ | ------- | ----------------- | --------- | --------- | ------- | ---- | ---------- | ---------- | --------- | - | ---------- | ---------- | --------- | 
|                                                          |                                                     |                                               |           | Three months ended |         | Nine months ended
|                                                          |                                                     |                                               |           | September 30,      |         | September 30,    
|                                                          |                                                     |                                               |           |                    |         |                  
|                                                          |                                                     |                                               |           | 2003               |         | 2002              |           | 2003      |         | 2002
|                                                          |                                                     |                                               |           |                    |         |                   |           |           |         |     
|INTEREST INCOME                                           |                                                     |                                               |           |                    |         |                   |           |           |         |      |            |            |           |   |            |           
|Loans, including fees                                     |                                                     | $                                             | 7,973,693 |                    |         | $                 | 7,002,674 |           |         | $    | 23,249,944 |            |           | $ | 20,421,818 |           
|Investment securities:                                    |                                                     |                                               |           |                    |         |                   |           |           |         |      |            |            |           |   |            |           
|                                                          |                                                     | U.S. Treasury securities                      |           |                    | 1,909   |                   |           |           | 40,160  |      |            |            | 5,708     |   |            |            | 122,119   | 
|                                                          |                                                     | U.S. Government agencies and corporations     |           |                    | 576,585 |                   |           |           | 542,842 |      |            |            | 1,545,653 |   |            |            | 1,759,617 | 
|                                                          |                                                     | States and political subdivisions, tax-exempt |           |                    | 91,930  |                   |           |           | 65,705  |      |            |            | 236,154   |   |            |            | 198,657   | 
|                                                          |                                                     | States and political subdivisions, taxable    |           |                    | 59,554  |                   |           |           | 106,498 |      |            |            | 184,350   |   |            |            | 282,759   | 
|                                                          |                                                     | Other investments                             |           |                    |        |                   |           |           |        |      |            |            |          |   |            |            | 46,447    | 
|Interest bearing deposits in other bank                   |                                                     |                                               | 797       |                    |         |                   | 1,026     |           |         |      | 1,743      |            |           |   | 4,094      |           
|Federal Home Loan Bank Stock                              |                                                     |                                               | 9,902     |                    |         |                   | 19,849    |           |         |      | 39,985     |            |           |   | 60,750     |           
|Federal funds sold                                        |                                                     |                                               | 34,001    |                    |         |                   | 116,796   |           |         |      | 227,313    |            |           |   | 267,854    |           
|                                                          |                                                     |                                               |           |                    |         |                   |           |           |         |      |            |            |           |   |            |           
|                                                          | TOTAL INTEREST INCOME                               |                                               |           | 8,748,371          |         |                   |           | 7,895,550 |         |      |            | 25,490,850 |           |   |            | 23,164,115 |          
|                                                          |                                                     |                                               |           |                    |         |                   |           |           |         |      |            |            |           |   |            |           
|INTEREST EXPENSE                                          |                                                     |                                               |           |                    |         |                   |           |           |         |      |            |            |           |   |            |           
|Interest-bearing demand and money market                  |                                                     |                                               | 275,212   |                    |         |                   | 559,213   |           |         |      | 1,061,250  |            |           |   | 1,530,117  |           
|Savings                                                   |                                                     |                                               | 35,631    |                    |         |                   | 59,167    |           |         |      | 133,512    |            |           |   | 170,266    |           
|Time deposits of $100,000 or more                         |                                                     |                                               | 814,924   |                    |         |                   | 688,476   |           |         |      | 2,373,504  |            |           |   | 2,028,955  |           
|Other time deposits                                       |                                                     |                                               | 826,629   |                    |         |                   | 831,951   |           |         |      | 2,488,058  |            |           |   | 2,498,307  |           
|Long term debt  trust preferred securities               |                                                     |                                               | 276,440   |                    |         |                   | 285,062   |           |         |      | 832,969    |            |           |   | 855,628    |           
|Federal Home Loan Bank advances                           |                                                     |                                               | 44,116    |                    |         |                   | 95,372    |           |         |      | 146,124    |            |           |   | 293,840    |           
|Notes payable                                             |                                                     |                                               | 121,243   |                    |         |                   | 121,243   |           |         |      | 359,792    |            |           |   | 359,792    |           
|Short-term borrowings                                     |                                                     |                                               | 8,842     |                    |         |                   | 16,445    |           |         |      | 29,577     |            |           |   | 28,971     |           
|                                                          |                                                     |                                               |           |                    |         |                   |           |           |         |      |            |            |           |   |            |           
|                                                          | TOTAL INTEREST EXPENSE                              |                                               |           | 2,403,037          |         |                   |           | 2,656,929 |         |      |            | 7,424,786  |           |   |            | 7,765,876  |          
|                                                          |                                                     |                                               |           |                    |         |                   |           |           |         |      |            |            |           |   |            |           
|                                                          | NET INTEREST INCOME                                 |                                               |           | 6,345,334          |         |                   |           | 5,238,621 |         |      |            | 18,066,064 |           |   |            | 15,398,239 |          
|PROVISION FOR LOAN LOSSES                                 |                                                     |                                               | 447,000   |                    |         |                   | 103,000   |           |         |      | 1,035,000  |            |           |   | 369,000    |           
|                                                          |                                                     |                                               |           |                    |         |                   |           |           |         |      |            |            |           |   |            |           
|                                                          | NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES |                                               |           | 5,898,334          |         |                   |           | 5,135,621 |         |      |            | 17,031,064 |           |   |            | 15,029,239 |          
|NON-INTEREST INCOME                                       |                                                     |                                               |           |                    |         |                   |           |           |         |      |            |            |           |   |            |           
|Service charges on deposit accounts                       |                                                     |                                               | 631,536   |                    |         |                   | 547,556   |           |         |      | 1,789,725  |            |           |   | 1,625,138  |           
|Investment securities gains, net                          |                                                     |                                               | 3,152     |                    |         |                   | 5,118     |           |         |      | 8,489      |            |           |   | 143,245    |           
|Merchant bankcard processing income                       |                                                     |                                               | 1,213,195 |                    |         |                   | 961,952   |           |         |      | 3,812,093  |            |           |   | 3,421,796  |           
|Gain on sale of government guaranteed loans               |                                                     |                                               |          |                    |         |                   |          |           |         |      | 87,470     |            |           |   | 23,179     |           
|Fees on mortgage loans sold                               |                                                     |                                               | 589,398   |                    |         |                   | 404,985   |           |         |      | 1,800,038  |            |           |   | 1,078,363  |           
|Retail investment services                                |                                                     |                                               | 112,361   |                    |         |                   | 36,862    |           |         |      | 298,612    |            |           |   | 168,281    |           
|Gain on sale of investment in ERAS Joint Venture (Note 2) |                                                     |                                               |          |                    |         |                   |          |           |         |      | 202,393    |            |           |   |           |           
|Other income                                              |                                                     |                                               | 347,489   |                    |         |                   | 345,323   |           |         |      | 1,064,500  |            |           |   | 1,037,993  |           
|                                                          |                                                     |                                               |           |                    |         |                   |           |           |         |      |            |            |           |   |            |           
|                                                          | TOTAL NON-INTEREST INCOME                           |                                               |           | 2,897,131          |         |                   |           | 2,301,796 |         |      |            | 9,063,320  |           |   |            | 7,497,995  |          
|NON-INTEREST EXPENSE                                      |                                                     |                                               |           |                    |         |                   |           |           |         |      |            |            |           |   |            |           
|Salaries and employee benefits                            |                                                     |                                               | 3,270,788 |                    |         |                   | 2,646,168 |           |         |      | 9,511,590  |            |           |   | 7,699,338  |           
|Net occupancy expense                                     |                                                     |                                               | 1,088,344 |                    |         |                   | 945,390   |           |         |      | 3,196,877  |            |           |   | 2,738,840  |           
|Other expense                                             |                                                     |                                               | 2,681,062 |                    |         |                   | 2,148,440 |           |         |      | 7,983,336  |            |           |   | 7,006,566  |           
|                                                          |                                                     |                                               |           |                    |         |                   |           |           |         |      |            |            |           |   |            |           
|                                                          | TOTAL NON-INTEREST EXPENSE                          |                                               |           | 7,040,194          |         |                   |           | 5,739,998 |         |      |            | 20,691,803 |           |   |            | 17,444,744 |          
|                                                          |                                                     |                                               |           |                    |         |                   |           |           |         |      |            |            |           |   |            |           
|                                                          | INCOME BEFORE INCOME TAX EXPENSE                    |                                               |           | 1,755,271          |         |                   |           | 1,697,419 |         |      |            | 5,402,581  |           |   |            | 5,082,490  |          
|INCOME TAX EXPENSE                                        |                                                     |                                               | 614,800   |                    |         |                   | 529,130   |           |         |      | 1,890,100  |            |           |   | 1,709,230  |           
|                                                          |                                                     |                                               |           |                    |         |                   |           |           |         |      |            |            |           |   |            |           
|                                                          | INCOME FROM CONTINUING OPERATIONS                   |                                               | $         | 1,140,471          |         |                   | $         | 1,168,289 |         |      | $          | 3,512,481  |           |   | $          | 3,373,260  |          
|                                                          |                                                     |                                               |           |                    |         |                   |           |           |         |      |            |            |           |   |            |           

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##### Table of Contents



TIB FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

|                                    |                                                    |   |                    |        |                   |   |           |        |      |   |           |         |  |   |           |         | 
|----------------------------------- | -------------------------------------------------- | - | ------------------ | ------ | ----------------- | - | --------- | ------ | ---- | - | --------- | ------- |  | - | --------- | ------- | 
|                                    |                                                    |   | Three months ended |        | Nine months ended
|                                    |                                                    |   | September 30,      |        | September 30,    
|                                    |                                                    |   |                    |        |                  
|                                    |                                                    |   | 2003               |        | 2002              |   | 2003      |        | 2002
|                                    |                                                    |   |                    |        |                   |   |           |        |     
|DISCONTINUED OPERATIONS             |                                                    |   |                    |        |                   |   |           |        |      |   |           |         |  |   |           |        
|                                    | Income from Keys Insurance Agency, Inc. operations |   |                    | 35,974 |                   |   |           | 84,239 |      |   |           | 200,587 |  |   |           | 224,452 | 
|                                    | Income Tax Expense                                 |   |                    | 13,500 |                   |   |           | 31,870 |      |   |           | 75,400  |  |   |           | 84,570  | 
|                                    |                                                    |   |                    |        |                   |   |           |        |      |   |           |         |  |   |           |        
|INCOME FROM DISCONTINUED OPERATIONS |                                                    |   | 22,474             |        |                   |   | 52,369    |        |      |   | 125,187   |         |  |   | 139,882   |        
|                                    |                                                    |   |                    |        |                   |   |           |        |      |   |           |         |  |   |           |        
|NET INCOME                          |                                                    | $ | 1,162,945          |        |                   | $ | 1,220,658 |        |      | $ | 3,637,668 |         |  | $ | 3,513,142 |        
|                                    |                                                    |   |                    |        |                   |   |           |        |      |   |           |         |  |   |           |        
|BASIC EARNINGS PER SHARE:           |                                                    |   |                    |        |                   |   |           |        |      |   |           |         |  |   |           |        
|                                    | Continuing Operations                              |   | $                  | 0.26   |                   |   | $         | 0.29   |      |   | $         | 0.84    |  |   | $         | 0.85    | 
|                                    | Discontinued Operations                            |   |                    | 0.00   |                   |   |           | 0.01   |      |   |           | 0.03    |  |   |           | 0.03    | 
|                                    |                                                    |   |                    |        |                   |   |           |        |      |   |           |         |  |   |           |        
|                                    | Basic earnings per share                           |   | $                  | 0.26   |                   |   | $         | 0.30   |      |   | $         | 0.87    |  |   | $         | 0.88    | 
|                                    |                                                    |   |                    |        |                   |   |           |        |      |   |           |         |  |   |           |        
|DILUTED EARNINGS PER SHARE:         |                                                    |   |                    |        |                   |   |           |        |      |   |           |         |  |   |           |        
|                                    | Continuing Operations                              |   | $                  | 0.25   |                   |   | $         | 0.28   |      |   | $         | 0.80    |  |   | $         | 0.82    | 
|                                    | Discontinued Operations                            |   |                    | 0.00   |                   |   |           | 0.01   |      |   |           | 0.03    |  |   |           | 0.03    | 
|                                    |                                                    |   |                    |        |                   |   |           |        |      |   |           |         |  |   |           |        
|                                    | Diluted earnings per share                         |   | $                  | 0.25   |                   |   | $         | 0.29   |      |   | $         | 0.83    |  |   | $         | 0.85    | 
|                                    |                                                    |   |                    |        |                   |   |           |        |      |   |           |         |  |   |           |        

(See notes to consolidated financial statements)

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

|                                           |                                                             |                                                                     |            |           |            |        |   |               |            |               |            |               |  |         |           |             |   |   |         |  |  |            |            |   |  | 
|------------------------------------------ | ----------------------------------------------------------- | ------------------------------------------------------------------- | ---------- | --------- | ---------- | ------ | - | ------------- | ---------- | ------------- | ---------- | ------------- |  | ------- | --------- | ----------- | - | - | ------- |  |  | ---------- | ---------- | - |  | 
|                                           |                                                             |                                                                     |            |           |            |        |   |               |            |               |            |               |  |         |           | Accumulated |   |   |         |  |  |            |            |  
|                                           |                                                             |                                                                     |            |           |            |        |   |               |            |               |            |               |  |         |           | Other       |   |   |         |  |  | Additional
|                                           |                                                             |                                                                     |            |           |            |        |   | Comprehensive |            | Retained      |            | Comprehensive |  | Common  |           | Paid in    
|                                           |                                                             |                                                                     |            | Total     |            | Income |   | Earnings      |            | Income (Loss) |            | Stock         |  | Capital
|                                           |                                                             |                                                                     |            |           |            |        |   |               |            |               |            |               |  |        
|Balance at June 30, 2003                   |                                                             | $                                                                   | 40,353,779 |           |            |        |   |               |            | $             | 24,559,001 |               |  | $       | 1,511,000 |             |   | $ | 440,758 |  |  | $          | 13,843,020 |  
|Comprehensive Income                       |                                                             |                                                                     |            |           |            |        |   |               |            |               |            |               |  |         |           |             |   |   |         |  |  |            |            |  
|                                           | Net Income                                                  |                                                                     |            | 1,162,945 |            |        | $ | 1,162,945     |            |               |            | 1,162,945     |  |         |           |             |   |   |         |  |  |            |            |   | 
|                                           | Other comprehensive income, net of
tax benefit of $647,000: |                                                                     |            |           |            |        |   |               |            |               |            |               |  |         |           |             |   |   |         |  |  |            |            |   | 
|                                           |                                                             | Net market valuation adjustment
on securities available for sale    |            |           | (1,072,034 | )      |   |               | (1,072,034 | )             |            |               |  |         |           |             |   |   |         |  |  |            |            |   |  | 
|                                           |                                                             | Less : reclassification
adjustment for gains included in
net income |            |           | (1,966     | )      |   |               | (1,966     | )             |            |               |  |         |           |             |   |   |         |  |  |            |            |   |  | 
|                                           |                                                             |                                                                     |            |           |            |        |   |               |            |               |            |               |  |         |           |             |   |   |         |  |  |            |            |  
|                                           | Other comprehensive income, net of tax                      |                                                                     |            |           |            |        |   | (1,074,000    | )          |               |            |               |  |         |           | (1,074,000  | ) |   |         |  |  |            |            |   | 
|                                           |                                                             |                                                                     |            |           |            |        |   |               |            |               |            |               |  |         |           |             |   |   |         |  |  |            |            |  
|                                           | Comprehensive income                                        |                                                                     |            |           |            |        | $ | 88,945        |            |               |            |               |  |         |           |             |   |   |         |  |  |            |            |   | 
|                                           |                                                             |                                                                     |            |           |            |        |   |               |            |               |            |               |  |         |           |             |   |   |         |  |  |            |            |  
|Exercise of stock options                  |                                                             |                                                                     | 6,776      |           |            |        |   |               |            |               |            |               |  |         |           |             |   |   | 50      |  |  |            | 6,726      |  
|Private Placement of 280,653 common shares |                                                             |                                                                     | (659       | )         |            |        |   |               |            |               |            |               |  |         |           |             |   |   |         |  |  |            | (659       | )
|Cash dividends declared, $.11 per share    |                                                             |                                                                     | (484,889   | )         |            |        |   |               |            |               | (484,889   | )             |  |         |           |             |   |   |         |  |  |            |            |  
|                                           |                                                             |                                                                     |            |           |            |        |   |               |            |               |            |               |  |         |           |             |   |   |         |  |  |            |            |  
|Balance at September 30, 2003              |                                                             | $                                                                   | 39,963,952 |           |            |        |   |               |            | $             | 25,237,057 |               |  | $       | 437,000   |             |   | $ | 440,808 |  |  | $          | 13,849,087 |  
|                                           |                                                             |                                                                     |            |           |            |        |   |               |            |               |            |               |  |         |           |             |   |   |         |  |  |            |            |  

|                                          |                                                             |                                                                    |            |           |         |   |        |           |               |   |               |           |               |   |           |         |             |   |         |  |  |   |            |  |  |  | 
|----------------------------------------- | ----------------------------------------------------------- | ------------------------------------------------------------------ | ---------- | --------- | ------- | - | ------ | --------- | ------------- | - | ------------- | --------- | ------------- | - | --------- | ------- | ----------- | - | ------- |  |  | - | ---------- |  |  |  | 
|                                          |                                                             |                                                                    |            |           |         |   |        |           |               |   |               |           |               |   |           |         | Accumulated |   |         |  |  |   |            |  | 
|                                          |                                                             |                                                                    |            |           |         |   |        |           |               |   |               |           |               |   |           |         | Other       |   |         |  |  |   | Additional
|                                          |                                                             |                                                                    |            |           |         |   |        |           | Comprehensive |   | Retained      |           | Comprehensive |   | Common    |         | Paid in    
|                                          |                                                             |                                                                    |            |           | Total   |   | Income |           | Earnings      |   | Income (Loss) |           | Stock         |   | Capital  
|                                          |                                                             |                                                                    |            |           |         |   |        |           |               |   |               |           |               |   |          
|Balance at June 30, 2002                  |                                                             | $                                                                  | 31,027,378 |           |         |   |        |           |               | $ | 21,454,778    |           |               | $ | 610,000   |         |             | $ | 399,380 |  |  | $ | 8,563,220  | 
|Comprehensive Income                      |                                                             |                                                                    |            |           |         |   |        |           |               |   |               |           |               |   |           |         |             |   |         |  |  |   |            | 
|                                          | Net Income                                                  |                                                                    |            | 1,220,658 |         |   | $      | 1,220,658 |               |   |               | 1,220,658 |               |   |           |         |             |   |         |  |  |   |            |  | 
|                                          | Other comprehensive income, net of
tax expense of $394,000: |                                                                    |            |           |         |   |        |           |               |   |               |           |               |   |           |         |             |   |         |  |  |   |            |  | 
|                                          |                                                             | Net market valuation adjustment
on securities available for sale   |            |           | 656,193 |   |        |           | 656,193       |   |               |           |               |   |           |         |             |   |         |  |  |   |            |  |  | 
|                                          |                                                             | Less: reclassification
adjustment for gains included
in net income |            |           | (3,193  | ) |        |           | (3,193        | ) |               |           |               |   |           |         |             |   |         |  |  |   |            |  |  | 
|                                          |                                                             |                                                                    |            |           |         |   |        |           |               |   |               |           |               |   |           |         |             |   |         |  |  |   |            | 
|                                          | Other comprehensive income, net of tax                      |                                                                    |            |           |         |   |        | 653,000   |               |   |               |           |               |   |           | 653,000 |             |   |         |  |  |   |            |  | 
|                                          |                                                             |                                                                    |            |           |         |   |        |           |               |   |               |           |               |   |           |         |             |   |         |  |  |   |            | 
|                                          | Comprehensive income                                        |                                                                    |            |           |         |   | $      | 1,873,658 |               |   |               |           |               |   |           |         |             |   |         |  |  |   |            |  | 
|                                          |                                                             |                                                                    |            |           |         |   |        |           |               |   |               |           |               |   |           |         |             |   |         |  |  |   |            | 
|Exercise of stock options                 |                                                             |                                                                    | 136,965    |           |         |   |        |           |               |   |               |           |               |   |           |         |             |   | 2,432   |  |  |   | 134,533    | 
|Cash dividends declared, $.1075 per share |                                                             |                                                                    | (431,949   | )         |         |   |        |           |               |   | (431,949      | )         |               |   |           |         |             |   |         |  |  |   |            | 
|                                          |                                                             |                                                                    |            |           |         |   |        |           |               |   |               |           |               |   |           |         |             |   |         |  |  |   |            | 
|Balance at September 30, 2002             |                                                             | $                                                                  | 32,606,052 |           |         |   |        |           |               | $ | 22,243,487    |           |               | $ | 1,263,000 |         |             | $ | 401,812 |  |  | $ | 8,697,753  | 
|                                          |                                                             |                                                                    |            |           |         |   |        |           |               |   |               |           |               |   |           |         |             |   |         |  |  |   |            | 

(See notes to consolidated financial statements)

4



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##### Table of Contents



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

|                                           |                                                             |                                                                    |            |           |          |        |   |               |          |               |            |               |  |         |           |             |   |   |         |  |  |            |            |  |  | 
|------------------------------------------ | ----------------------------------------------------------- | ------------------------------------------------------------------ | ---------- | --------- | -------- | ------ | - | ------------- | -------- | ------------- | ---------- | ------------- |  | ------- | --------- | ----------- | - | - | ------- |  |  | ---------- | ---------- |  |  | 
|                                           |                                                             |                                                                    |            |           |          |        |   |               |          |               |            |               |  |         |           | Accumulated |   |   |         |  |  |            |            | 
|                                           |                                                             |                                                                    |            |           |          |        |   |               |          |               |            |               |  |         |           | Other       |   |   |         |  |  | Additional
|                                           |                                                             |                                                                    |            |           |          |        |   | Comprehensive |          | Retained      |            | Comprehensive |  | Common  |           | Paid in    
|                                           |                                                             |                                                                    |            | Total     |          | Income |   | Earnings      |          | Income (Loss) |            | Stock         |  | Capital
|                                           |                                                             |                                                                    |            |           |          |        |   |               |          |               |            |               |  |        
|Balance at December 31, 2002               |                                                             | $                                                                  | 33,506,077 |           |          |        |   |               |          | $             | 23,021,698 |               |  | $       | 1,115,000 |             |   | $ | 403,563 |  |  | $          | 8,965,816  | 
|Comprehensive Income                       |                                                             |                                                                    |            |           |          |        |   |               |          |               |            |               |  |         |           |             |   |   |         |  |  |            |            | 
|                                           | Net Income                                                  |                                                                    |            | 3,637,668 |          |        | $ | 3,637,668     |          |               |            | 3,637,668     |  |         |           |             |   |   |         |  |  |            |            |  | 
|                                           | Other comprehensive income, net of tax
benefit of $408,000: |                                                                    |            |           |          |        |   |               |          |               |            |               |  |         |           |             |   |   |         |  |  |            |            |  | 
|                                           |                                                             | Net market valuation adjustment on
securities available for sale   |            |           | (672,703 | )      |   |               | (672,703 | )             |            |               |  |         |           |             |   |   |         |  |  |            |            |  |  | 
|                                           |                                                             | Less: reclassification adjustment
for gains included in net income |            |           | (5,297   | )      |   |               | (5,297   | )             |            |               |  |         |           |             |   |   |         |  |  |            |            |  |  | 
|                                           |                                                             |                                                                    |            |           |          |        |   |               |          |               |            |               |  |         |           |             |   |   |         |  |  |            |            | 
|                                           | Other comprehensive income, net of tax                      |                                                                    |            |           |          |        |   | (678,000      | )        |               |            |               |  |         |           | (678,000    | ) |   |         |  |  |            |            |  | 
|                                           |                                                             |                                                                    |            |           |          |        |   |               |          |               |            |               |  |         |           |             |   |   |         |  |  |            |            | 
|                                           | Comprehensive income                                        |                                                                    |            |           |          |        | $ | 2,959,668     |          |               |            |               |  |         |           |             |   |   |         |  |  |            |            |  | 
|                                           |                                                             |                                                                    |            |           |          |        |   |               |          |               |            |               |  |         |           |             |   |   |         |  |  |            |            | 
|Exercise of stock options                  |                                                             |                                                                    | 577,112    |           |          |        |   |               |          |               |            |               |  |         |           |             |   |   | 9,180   |  |  |            | 567,932    | 
|Private Placement of 280,653 common shares |                                                             |                                                                    | 4,343,404  |           |          |        |   |               |          |               |            |               |  |         |           |             |   |   | 28,065  |  |  |            | 4,315,339  | 
|Cash dividends declared, $.33 per share    |                                                             |                                                                    | (1,422,309 | )         |          |        |   |               |          |               | (1,422,309 | )             |  |         |           |             |   |   |         |  |  |            |            | 
|                                           |                                                             |                                                                    |            |           |          |        |   |               |          |               |            |               |  |         |           |             |   |   |         |  |  |            |            | 
|Balance at September 30, 2003              |                                                             | $                                                                  | 39,963,952 |           |          |        |   |               |          | $             | 25,237,057 |               |  | $       | 437,000   |             |   | $ | 440,808 |  |  | $          | 13,849,087 | 
|                                           |                                                             |                                                                    |            |           |          |        |   |               |          |               |            |               |  |         |           |             |   |   |         |  |  |            |            | 

|                                                |                                                             |                                                                                                                           |            |           |           |   |        |           |               |   |               |           |               |   |           |           |             |   |         |  |  |   |            |  |  |  | 
|----------------------------------------------- | ----------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------- | ---------- | --------- | --------- | - | ------ | --------- | ------------- | - | ------------- | --------- | ------------- | - | --------- | --------- | ----------- | - | ------- |  |  | - | ---------- |  |  |  | 
|                                                |                                                             |                                                                                                                           |            |           |           |   |        |           |               |   |               |           |               |   |           |           | Accumulated |   |         |  |  |   |            |  | 
|                                                |                                                             |                                                                                                                           |            |           |           |   |        |           |               |   |               |           |               |   |           |           | Other       |   |         |  |  |   | Additional
|                                                |                                                             |                                                                                                                           |            |           |           |   |        |           | Comprehensive |   | Retained      |           | Comprehensive |   | Common    |           | Paid in    
|                                                |                                                             |                                                                                                                           |            |           | Total     |   | Income |           | Earnings      |   | Income (Loss) |           | Stock         |   | Capital  
|                                                |                                                             |                                                                                                                           |            |           |           |   |        |           |               |   |               |           |               |   |          
|Balance at December 31, 2001                    |                                                             | $                                                                                                                         | 28,672,092 |           |           |   |        |           |               | $ | 20,019,145    |           |               | $ | 36,400    |           |             | $ | 394,610 |  |  | $ | 8,221,937  | 
|Comprehensive Income                            |                                                             |                                                                                                                           |            |           |           |   |        |           |               |   |               |           |               |   |           |           |             |   |         |  |  |   |            | 
|                                                | Net Income                                                  |                                                                                                                           |            | 3,513,142 |           |   | $      | 3,513,142 |               |   |               | 3,513,142 |               |   |           |           |             |   |         |  |  |   |            |  | 
|                                                | Other comprehensive income, net of tax
expense of $739,100: |                                                                                                                           |            |           |           |   |        |           |               |   |               |           |               |   |           |           |             |   |         |  |  |   |            |  | 
|                                                |                                                             | Unrealized holding gain on securities
transferred into the available for
sale category from the held to
maturity category |            |           | 270,480   |   |        |           | 270,480       |   |               |           |               |   |           |           |             |   |         |  |  |   |            |  |  | 
|                                                |                                                             | Net market valuation adjustment on
securities available for sale                                                          |            |           | 1,045,504 |   |        |           | 1,045,504     |   |               |           |               |   |           |           |             |   |         |  |  |   |            |  |  | 
|                                                |                                                             | Less: reclassification adjustment
for gains included in net
income                                                        |            |           | (89,384   | ) |        |           | (89,384       | ) |               |           |               |   |           |           |             |   |         |  |  |   |            |  |  | 
|                                                |                                                             |                                                                                                                           |            |           |           |   |        |           |               |   |               |           |               |   |           |           |             |   |         |  |  |   |            | 
|                                                | Other comprehensive income, net of tax                      |                                                                                                                           |            |           |           |   |        | 1,226,600 |               |   |               |           |               |   |           | 1,226,600 |             |   |         |  |  |   |            |  | 
|                                                |                                                             |                                                                                                                           |            |           |           |   |        |           |               |   |               |           |               |   |           |           |             |   |         |  |  |   |            | 
|                                                | Comprehensive income                                        |                                                                                                                           |            |           |           |   | $      | 4,739,742 |               |   |               |           |               |   |           |           |             |   |         |  |  |   |            |  | 
|                                                |                                                             |                                                                                                                           |            |           |           |   |        |           |               |   |               |           |               |   |           |           |             |   |         |  |  |   |            | 
|Exercise of stock options                       |                                                             |                                                                                                                           | 479,993    |           |           |   |        |           |               |   |               |           |               |   |           |           |             |   | 7,202   |  |  |   | 472,791    | 
|Income tax benefit from stock options exercised |                                                             |                                                                                                                           | 3,025      |           |           |   |        |           |               |   |               |           |               |   |           |           |             |   |         |  |  |   | 3,025      | 
|Cash dividends declared, $.3225 per share       |                                                             |                                                                                                                           | (1,288,800 | )         |           |   |        |           |               |   | (1,288,800    | )         |               |   |           |           |             |   |         |  |  |   |            | 
|                                                |                                                             |                                                                                                                           |            |           |           |   |        |           |               |   |               |           |               |   |           |           |             |   |         |  |  |   |            | 
|Balance at September 30, 2002                   |                                                             | $                                                                                                                         | 32,606,052 |           |           |   |        |           |               | $ | 22,243,487    |           |               | $ | 1,263,000 |           |             | $ | 401,812 |  |  | $ | 8,697,753  | 
|                                                |                                                             |                                                                                                                           |            |           |           |   |        |           |               |   |               |           |               |   |           |           |             |   |         |  |  |   |            | 

(See notes to consolidated financial statements)

5



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##### Table of Contents



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

|                                                                                                      |  |                                                                       |             |                                 |             |      |             |   |             |  
|----------------------------------------------------------------------------------------------------- |  | --------------------------------------------------------------------- | ----------- | ------------------------------- | ----------- | ---- | ----------- | - | ----------- | -
|                                                                                                      |  |                                                                       |             | For the nine month period ended
|                                                                                                      |  |                                                                       |             | September 30,                  
|                                                                                                      |  |                                                                       |             | 2003                            |             | 2002
|                                                                                                      |  |                                                                       |             |                                 |             |     
|CASH FLOWS FROM OPERATING ACTIVITIES                                                                  |  |                                                                       |             |                                 |             |      |             |  
|Net Income                                                                                            |  | $                                                                     | 3,637,668   |                                 |             | $    | 3,513,142   |  
|Adjustments to reconcile net income to net cash provided by operating activities:                     |  |                                                                       |             |                                 |             |      |             |  
|                                                                                                      |  | Net amortization of investments                                       |             |                                 | 44,820      |      |             |   | 75,961      |  
|                                                                                                      |  | Amortization of intangible assets                                     |             |                                 | 218,871     |      |             |   | 220,715     |  
|                                                                                                      |  | Depreciation of premises and equipment                                |             |                                 | 1,307,447   |      |             |   | 1,133,362   |  
|                                                                                                      |  | Provision for loan losses                                             |             |                                 | 1,035,000   |      |             |   | 369,000     |  
|                                                                                                      |  | Deferred income tax benefit                                           |             |                                 | (570,557    | )    |             |   | (182,768    | )
|                                                                                                      |  | Deferred net loan fees/costs                                          |             |                                 | (839,663    | )    |             |   | (360,946    | )
|                                                                                                      |  | Investment securities gains, net                                      |             |                                 | (8,489      | )    |             |   | (143,245    | )
|                                                                                                      |  | Net gain on sale/disposal of premises and equipment                   |             |                                 | (2,128      | )    |             |   | (2,493      | )
|                                                                                                      |  | Loss on sale of assets of Keys Insurance Agency, Inc.                 |             |                                 | 14,676      |      |             |   |            |  
|                                                                                                      |  | Gain on sale of investment in ERAS JV                                 |             |                                 | (202,393    | )    |             |   |            |  
|                                                                                                      |  | Gain on sales of government guaranteed loans, net                     |             |                                 | (87,470     | )    |             |   | (23,179     | )
|                                                                                                      |  | Loss on sale of servicing rights                                      |             |                                 |            |      |             |   | 2,532       |  
|                                                                                                      |  | Mortgage loans originated for sale                                    |             |                                 | (90,335,784 | )    |             |   | (53,360,134 | )
|                                                                                                      |  | Proceeds from sale of mortgage loans                                  |             |                                 | 92,135,822  |      |             |   | 54,438,497  |  
|                                                                                                      |  | Fees on mortgage loans sold                                           |             |                                 | (1,800,038  | )    |             |   | (1,078,363  | )
|                                                                                                      |  | Decrease (increase) in accrued interest receivable and other assets   |             |                                 | 3,774,357   |      |             |   | (2,801,157  | )
|                                                                                                      |  | (Decrease) increase in accrued interest payable and other liabilities |             |                                 | (1,389,806  | )    |             |   | 271,178     |  
|                                                                                                      |  |                                                                       |             |                                 |             |      |             |  
|                                                                                                      |  | NET CASH PROVIDED BY OPERATING ACTIVITIES                             |             |                                 | 6,932,333   |      |             |   | 2,072,102   |  
|                                                                                                      |  |                                                                       |             |                                 |             |      |             |  
|CASH FLOWS FROM INVESTING ACTIVITIES                                                                  |  |                                                                       |             |                                 |             |      |             |  
|Purchases of investment securities available for sale                                                 |  |                                                                       | (24,846,163 | )                               |             |      | (19,194,484 | )
|Repayments of principal and maturities of investment securities available for sale                    |  |                                                                       | 13,101,031  |                                 |             |      | 8,530,057   |  
|Sales of investment securities available for sale                                                     |  |                                                                       |            |                                 |             |      | 12,025,792  |  
|Net purchase of FHLB stock                                                                            |  |                                                                       | (389,700    | )                               |             |      |            |  
|Purchase of life insurance policies                                                                   |  |                                                                       | (250,000    | )                               |             |      |            |  
|Proceeds from sales of government guaranteed loans                                                    |  |                                                                       | 2,241,119   |                                 |             |      | 541,980     |  
|Proceeds from sale of assets of Keys Insurance Agency, Inc.                                           |  |                                                                       | 183,992     |                                 |             |      |            |  
|Loans originated or acquired, net of principal repayments                                             |  |                                                                       | (69,293,787 | )                               |             |      | (31,701,135 | )
|Net proceeds received from servicing rights sale                                                      |  |                                                                       |            |                                 |             |      | 33,079      |  
|Proceeds from sale of investment in ERAS JV                                                           |  |                                                                       | 326,667     |                                 |             |      |            |  
|Purchases of premises and equipment                                                                   |  |                                                                       | (2,944,159  | )                               |             |      | (2,097,041  | )
|Sales of premises and equipment                                                                       |  |                                                                       | 4,058       |                                 |             |      | 28,100      |  
|                                                                                                      |  |                                                                       |             |                                 |             |      |             |  
|                                                                                                      |  | NET CASH USED IN INVESTING ACTIVITIES                                 |             |                                 | (81,866,942 | )    |             |   | (31,833,652 | )
|                                                                                                      |  |                                                                       |             |                                 |             |      |             |  
|CASH FLOWS FROM FINANCING ACTIVITIES                                                                  |  |                                                                       |             |                                 |             |      |             |  
|Net (decrease) increase in federal funds purchased and securities sold under
agreements to repurchase |  |                                                                       | (1,506,703  | )                               |             |      | 4,947,364   |  
|Net increase (decrease) in FHLB advances                                                              |  |                                                                       | 15,000,000  |                                 |             |      | (5,000,000  | )
|Net increase in demand, money market and savings accounts                                             |  |                                                                       | 17,265,481  |                                 |             |      | 20,717,252  |  
|Net increase in time deposits                                                                         |  |                                                                       | 42,934,186  |                                 |             |      | 25,463,273  |  
|Proceeds from exercise of stock options                                                               |  |                                                                       | 577,112     |                                 |             |      | 479,993     |  
|Proceeds from private placement of common stock                                                       |  |                                                                       | 4,343,404   |                                 |             |      |            |  
|Cash dividends paid                                                                                   |  |                                                                       | (1,381,339  | )                               |             |      | (1,281,057  | )
|                                                                                                      |  |                                                                       |             |                                 |             |      |             |  
|                                                                                                      |  | NET CASH PROVIDED BY FINANCING ACTIVITIES                             |             |                                 | 77,232,141  |      |             |   | 45,326,825  |  
|                                                                                                      |  |                                                                       |             |                                 |             |      |             |  
|NET INCREASE IN CASH AND CASH EQUIVALENTS                                                             |  |                                                                       | 2,297,532   |                                 |             |      | 15,565,275  |  
|CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                                      |  |                                                                       | 24,069,659  |                                 |             |      | 21,269,909  |  
|                                                                                                      |  |                                                                       |             |                                 |             |      |             |  
|CASH AND CASH EQUIVALENTS AT END OF PERIOD                                                            |  | $                                                                     | 26,367,191  |                                 |             | $    | 36,835,184  |  
|                                                                                                      |  |                                                                       |             |                                 |             |      |             |  

6



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##### Table of Contents



|                                        |              |  |   |                                 |  |      |   |           |  | 
|--------------------------------------- | ------------ |  | - | ------------------------------- |  | ---- | - | --------- |  | 
|                                        |              |  |   | For the nine month period ended
|                                        |              |  |   | September 30,                  
|                                        |              |  |   | 2003                            |  | 2002
|                                        |              |  |   |                                 |  |     
|SUPPLEMENTAL DISCLOSURES OF CASH FLOWS: |              |  |   |                                 |  |      |   |          
|Cash paid for:                          |              |  |   |                                 |  |      |   |          
|                                        | Interest     |  | $ | 7,357,247                       |  |      | $ | 8,620,180 | 
|                                        | Income taxes |  |   | 2,900,000                       |  |      |   | 2,091,000 | 

NON CASH TRANSACTIONS:

In June 2002, the Company transferred investment securities in the held to maturity category with a book value totaling $18,507,916
to the available for sale category.

On August 15, 2003, the Company closed the sale of Keys Insurance Agency, Inc., a wholly owned subsidiary of the Company. The
transaction was structured as a sale of the agency assets. The buyer paid $2,204,930 in cash at the closing. Of the cash payment
at closing, proceeds of $2,020,938 were pursuant to a loan from TIB Bank of the Keys (a subsidiary of the Company) to the buyer.

(See notes to consolidated financial statements)

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TIB FINANCIAL CORP.
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2003
(Unaudited)

NOTE 1  BASIS OF PRESENTATION & ACCOUNTING POLICIES

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

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

The consolidated statements include the accounts of TIB Financial Corp. and its
wholly-owned subsidiaries, TIB Bank of the Keys, TIB Software and Services,
Inc., TIBFL Statutory Trust I, TIBFL Statutory Trust II, and Keys Insurance
Agency, Inc. (see Note 11) and the Banks two subsidiaries, TIB Government Loan
Specialists, Inc. and TIB Investment Center Inc., collectively known as the
Company. All significant intercompany accounts and transactions have been
eliminated in consolidation. In the opinion of management, all adjustments
(consisting of normal recurring accruals) considered necessary for a fair
presentation have been included. Certain amounts previously reported on have
been reclassified to conform to the current period presentation.

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

RECENT ACCOUNTING PRONOUNCEMENTS

The Financial Accounting Standards Board recently issued two new accounting
standards, Statement 149, Amendment of Statement 133 on Derivative Instruments
and Hedging Activities, and Statement 150, Accounting for Certain Financial
Instruments with Characteristics of both Liabilities and Equity, both of which
became effective in the third quarter of 2003. The adoption of these new
statements did not have a material impact on the Companys financial
statements.

Additionally in 2003, the Financial Accounting Standards Board issued FASB
Interpretation 46, Consolidation of Variable Interest Entities, which will
become effective in the fourth quarter of 2003. Management does not believe
that the adoption of this interpretation will have a material impact on its
financial statements.

CRITICAL ACCOUNTING POLICIES

The accounting and reporting policies of the Company are in accordance with
accounting principles generally accepted within the United States of America
and conform to general practices within the banking industry. Accounting and
reporting policies for the allowance for loan losses are deemed critical since
they involve the use of estimates and require significant management judgments.
Application of assumptions different than those used by management could

result in material changes in the Companys financial position or results of
operations. Additional information with regard to the Companys methodology
and reporting of the allowance for loan losses is included in the 2002 Annual
Report and 10-K, Note 5 below and the Non-Performing Assets section of the
Managements Discussion and Analysis of Financial Condition and Results of
Operations.

NOTE 2  ACQUISITIONS AND DIVESTITURES

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

On August 15, 2003, the Company closed the sale of Keys Insurance Agency, Inc.,
a wholly owned subsidiary of the Company. See Note 11  Discontinued
Operations for details on the transaction.

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NOTE 3  INVESTMENT SECURITIES

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

|                                             |  |                    |            |            |  |            |           |            |  |   |         |  |  |   |            | 
|-------------------------------------------- |  | ------------------ | ---------- | ---------- |  | ---------- | --------- | ---------- |  | - | ------- |  |  | - | ---------- | 
|                                             |  | September 30, 2003
|                                             |  |                   
|                                             |  | Amortized          |            | Unrealized |  | Unrealized |           | Estimated 
|                                             |  | Cost               |            | Gains      |  | Losses     |           | Fair Value
|                                             |  |                    |            |            |  |            |           |           
|U.S. Treasury securities                     |  | $                  | 210,067    |            |  | $          | 9,870     |            |  | $ |        |  |  | $ | 219,937    | 
|U.S. Government agencies and corporations    |  |                    | 41,368,496 |            |  |            | 555,934   |            |  |   | 599,501 |  |  |   | 41,324,929 | 
|States and political
subdivisions-tax-exempt |  |                    | 8,832,984  |            |  |            | 367,148   |            |  |   | 143,462 |  |  |   | 9,056,670  | 
|States and political subdivisions-taxable    |  |                    | 3,559,688  |            |  |            | 41,506    |            |  |   | 52,225  |  |  |   | 3,548,969  | 
|Mortgage-backed securities                   |  |                    | 10,218,396 |            |  |            | 521,730   |            |  |   |        |  |  |   | 10,740,126 | 
|                                             |  |                    |            |            |  |            |           |            |  |   |         |  |  |   |            | 
|                                             |  | $                  | 64,189,631 |            |  | $          | 1,496,188 |            |  | $ | 795,188 |  |  | $ | 64,890,631 | 
|                                             |  |                    |            |            |  |            |           |            |  |   |         |  |  |   |            | 

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

NOTE 4  LOANS

Major classifications of loans are as follows:

|                                  |                                   |  |                    |             |                   |  |            |             | 
|--------------------------------- | --------------------------------- |  | ------------------ | ----------- | ----------------- |  | ---------- | ----------- | 
|                                  |                                   |  | September 30, 2003 |             | December 31, 2002
|                                  |                                   |  |                    |             |                  
|Real estate mortgage loans:       |                                   |  |                    |             |                   |  |            |            
|                                  | Commercial                        |  | $                  | 291,337,267 |                   |  | $          | 265,112,947 | 
|                                  | Residential                       |  |                    | 60,530,812  |                   |  |            | 68,389,247  | 
|                                  | Farmland                          |  |                    | 2,217,057   |                   |  |            | 442,707     | 
|                                  | Construction                      |  |                    | 20,249,882  |                   |  |            | 14,892,626  | 
|Commercial and agricultural loans |                                   |  | 60,247,423         |             |                   |  | 49,212,393 |            
|Consumer loans                    |                                   |  | 11,165,065         |             |                   |  | 9,364,144  |            
|Indirect auto dealer loans        |                                   |  | 50,932,611         |             |                   |  | 16,854,612 |            
|Home equity loans                 |                                   |  | 13,772,594         |             |                   |  | 17,475,539 |            
|                                  |                                   |  |                    |             |                   |  |            |             | 
|                                  | Total loans                       |  |                    | 510,452,711 |                   |  |            | 441,744,215 | 
|Net deferred loan costs           |                                   |  | 1,623,382          |             |                   |  | 783,719    |            
|                                  |                                   |  |                    |             |                   |  |            |             | 
|                                  | Loans, net of deferred loan costs |  | $                  | 512,076,093 |                   |  | $          | 442,527,934 | 
|                                  |                                   |  |                    |             |                   |  |            |             | 

NOTE 5  ALLOWANCE FOR LOAN LOSSES

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

|                                           |  |      |           |      |  |   |           |  
|------------------------------------------ |  | ---- | --------- | ---- |  | - | --------- | -
|                                           |  | 2003 |           | 2002
|                                           |  |      |           |     
|Balance, January 1                         |  | $    | 4,272,499 |      |  | $ | 3,674,842 |  
|Provision charged to expense               |  |      | 1,035,000 |      |  |   | 369,000   |  
|Loans charged off                          |  |      | (469,901  | )    |  |   | (239,652  | )
|Recoveries of loans previously charged off |  |      | 17,321    |      |  |   | 40,573    |  
|                                           |  |      |           |      |  |   |           |  
|Balance, September 30                      |  | $    | 4,854,919 |      |  | $ | 3,844,763 |  
|                                           |  |      |           |      |  |   |           |  

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NOTE 6  GOODWILL AND INTANGIBLE ASSETS

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

|                            |       |                |           |              |  |          |           |           |  |   |           |           | 
|--------------------------- | ----- | -------------- | --------- | ------------ |  | -------- | --------- | --------- |  | - | --------- | --------- | 
|Amortized Intangible Assets |       | Gross Carrying |           | Accumulated  |  | Net Book
|at September 30, 2003:      |       | Amount         |           | Amortization |  | Value   
|                            |       |                |           |              |  |         
|Core Deposit Intangible     |       | $              | 2,941,234 |              |  | $        | 1,213,567 |           |  | $ | 1,727,667 |          
|Servicing Rights            |       |                | 88,917    |              |  |          | 56,537    |           |  |   | 32,380    |          
|                            |       |                |           |              |  |          |           |           |  |   |           |          
|                            | Total |                | $         | 3,030,151    |  |          | $         | 1,270,104 |  |   | $         | 1,760,047 | 
|                            |       |                |           |              |  |          |           |           |  |   |           |          

Intangible amortization expense totaled $218,871 for the nine months ended
September 30, 2003.

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

|                                                                             |  |                 |         |           |  |               |            |        |  |   |         |   |  |   |            |  
|---------------------------------------------------------------------------- |  | --------------- | ------- | --------- |  | ------------- | ---------- | ------ |  | - | ------- | - |  | - | ---------- | -
|                                                                             |  | Government      |         |           |  |               |            |        |  |   |         |   |  |  
|                                                                             |  | Guaranteed Loan |         | Insurance |  |               |            |        |  |   |         |  
|                                                                             |  | Sales and       |         | Agency    |  | Investment in |            |        |  |  
|                                                                             |  | Servicing       |         | Sales     |  | ERAS JV (a)   |            | Totals
|                                                                             |  |                 |         |           |  |               |            |       
|Balance as of January 1, 2003                                                |  | $               | 155,232 |           |  | $             | 2,010,211  |        |  | $ | 68,581  |   |  | $ | 2,234,024  |  
|Goodwill associated with sale
of remaining interest of
Investment in ERAS JV |  |                 |        |           |  |               |           |        |  |   | (68,581 | ) |  |   | (68,581    | )
|Goodwill associated with sale
of Keys Insurance Agency, Inc.                 |  |                 |         |           |  |               | (2,010,211 | )      |  |   |         |   |  |   | (2,010,211 | )
|                                                                             |  |                 |         |           |  |               |            |        |  |   |         |   |  |   |            |  
|Balance as of September 30, 2003                                             |  | $               | 155,232 |           |  | $             |           |        |  | $ |        |   |  | $ | 155,232    |  
|                                                                             |  |                 |         |           |  |               |            |        |  |   |         |   |  |   |            |  



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

NOTE 7  EARNINGS PER SHARE AND COMMON STOCK

For purposes of calculating basic and diluted earnings per share, we used the
following weighted average common shares outstanding:

|                                         |                                                       |         |                                        |  |           |         |      |  |           |         | 
|---------------------------------------- | ----------------------------------------------------- | ------- | -------------------------------------- |  | --------- | ------- | ---- |  | --------- | ------- | 
|                                         |                                                       |         |                                        |  | 2003      |         | 2002
|                                         |                                                       |         |                                        |  |           |         |     
|For the three months ended September 30: |                                                       |         |                                        |  |           |         |      | 
|                                         | Weighted average number of common shares outstanding: |         |                                        |  |           |         |      |  |          
|                                         |                                                       | Basic   |                                        |  | 4,407,920 |         |      |  | 4,013,014 |        
|                                         |                                                       | Diluted |                                        |  | 4,581,559 |         |      |  | 4,168,381 |        
|                                         |                                                       |         | Dilutive effect of outstanding options |  |           | 173,639 |      |  |           | 155,367 | 
|                                         |                                                       |         | Anti-dilutive outstanding options      |  |           | 5,000   |      |  |           | 27,000  | 
|For the nine months ended September 30:  |                                                       |         |                                        |  |           |         |      | 
|                                         | Weighted average number of common shares outstanding: |         |                                        |  |           |         |      |  |          
|                                         |                                                       | Basic   |                                        |  | 4,204,840 |         |      |  | 3,982,619 |        
|                                         |                                                       | Diluted |                                        |  | 4,376,413 |         |      |  | 4,137,514 |        
|                                         |                                                       |         | Dilutive effect of outstanding options |  |           | 171,573 |      |  |           | 154,895 | 
|                                         |                                                       |         | Anti-dilutive outstanding options      |  |           | 2,326   |      |  |           | 153,739 | 

NOTE 8  STOCK-BASED COMPENSATION

Under the Banks 1994 Incentive Stock Option and Nonstatutory Stock Option Plan
(the Plan) as amended and restated as of August 31, 1996, the Company may
grant stock options to persons who are now or who during the term of the Plan
become directors, officers, or key executives as defined by the Plan. Stock
options granted under the Plan may either be incentive stock options or
nonqualified stock options for federal income tax purposes. The Companys
Board of Directors may grant nonqualified stock options to any director, and
incentive stock options or nonqualified stock options to any officer, key

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executive, administrative, or other employee including an employee who is a
director of the Company. Subject to the provisions of the Plan, the maximum
number of shares of Company common stock that may be optioned or sold is
978,000 shares. Such shares may be treasury, or authorized but unissued,
shares of common stock of the Company. If options granted under the Plan
expire or terminate for any reason without having been exercised in full, the
shares not purchased shall again be available for option for the purposes of
the Plan.

Total options granted, exercised, and cancelled/expired during the nine months
ended September, 2003, were 24,500, 91,800, and 12,850, respectively. As of

September 30, 2003, 487,055 options for shares were outstanding.

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

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

|                                                                                                           |                       |      |           |      |  |   |           |      | 
|---------------------------------------------------------------------------------------------------------- | --------------------- | ---- | --------- | ---- |  | - | --------- | ---- | 
|FOR THE THREE MONTHS ENDED SEPTEMBER 30,                                                                   |                       | 2003 |           | 2002
|                                                                                                           |                       |      |           |     
|Net income, as reported                                                                                    |                       | $    | 1,162,945 |      |  | $ | 1,220,658 |     
|Less: Stock-based employee and director
compensation expense determined under fair
value basis, net of tax |                       |      | 23,238    |      |  |   | 20,664    |     
|                                                                                                           |                       |      |           |      |  |   |           |     
|Pro forma net income                                                                                       |                       | $    | 1,139,707 |      |  | $ | 1,199,994 |     
|                                                                                                           |                       |      |           |      |  |   |           |     
|Earnings per share:                                                                                        |                       |      |           |      |  |   |           |     
|                                                                                                           | Basic  as reported   |      | $         | 0.26 |  |   | $         | 0.30 | 
|                                                                                                           | Basic  pro forma     |      |           | 0.26 |  |   |           | 0.30 | 
|                                                                                                           | Diluted  as reported |      |           | 0.25 |  |   |           | 0.29 | 
|                                                                                                           | Diluted  pro forma   |      |           | 0.25 |  |   |           | 0.29 | 

|                                                                                                           |                       |      |           |      |  |   |           |      | 
|---------------------------------------------------------------------------------------------------------- | --------------------- | ---- | --------- | ---- |  | - | --------- | ---- | 
|FOR THE NINE MONTHS ENDED SEPTEMBER 30,                                                                    |                       | 2003 |           | 2002
|                                                                                                           |                       |      |           |     
|Net income, as reported                                                                                    |                       | $    | 3,637,668 |      |  | $ | 3,513,142 |     
|Less: Stock-based employee and director
compensation expense determined under fair
value basis, net of tax |                       |      | 91,178    |      |  |   | 84,151    |     
|                                                                                                           |                       |      |           |      |  |   |           |     
|Pro forma net income                                                                                       |                       | $    | 3,546,490 |      |  | $ | 3,428,991 |     
|                                                                                                           |                       |      |           |      |  |   |           |     
|Earnings per share:                                                                                        |                       |      |           |      |  |   |           |     
|                                                                                                           | Basic  as reported   |      | $         | 0.87 |  |   | $         | 0.88 | 
|                                                                                                           | Basic  pro forma     |      |           | 0.84 |  |   |           | 0.86 | 
|                                                                                                           | Diluted  as reported |      |           | 0.83 |  |   |           | 0.85 | 
|                                                                                                           | Diluted  pro forma   |      |           | 0.81 |  |   |           | 0.83 | 

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

|                                                           |  |         |      |         |  |   |      |  
|---------------------------------------------------------- |  | ------- | ---- | ------- |  | - | ---- | -
|                                                           |  | 2003    |      | 2002   
|                                                           |  |         |      |        
|Dividend yield                                             |  |         | 2.8  | %       |  |   | 3.2  | %
|Risk-free interest rate                                    |  |         | 4.0  | %       |  |   | 5.2  | %
|Expected lives                                             |  | 9 years |      | 9 years
|Volatility                                                 |  |         | .29  |         |  |   | .29  |  
|Weighted average fair value of options granted during year |  | $       | 5.03 |         |  | $ | 3.69 |  

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NOTE 9 - CAPITAL ADEQUACY

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

|                                         |              |  |             |     |             |  |                    |    |                   |  |  |      |   |  |  |      |  
|---------------------------------------- | ------------ |  | ----------- | --- | ----------- |  | ------------------ | -- | ----------------- |  |  | ---- | - |  |  | ---- | -
|                                         |              |  | Well        |     | Adequately  |  |                    |    |                   |  |  |      |  
|                                         |              |  | Capitalized |     | Capitalized |  | September 30, 2003 |    | December 31, 2002
|                                         |              |  | Requirement |     | Requirement |  | Actual             |    | Actual           
|                                         |              |  |             |     |             |  |                    |    |                  
|Tier 1 Capital (to Average Assets)       |              |  |             |     |             |  |                    |    |                   |  |  |      |   |  |  |     
|                                         | Consolidated |  |             | 35  | %           |  |                    | 34 | %                 |  |  | 7.8  | % |  |  | 7.1  | %
|                                         | Bank         |  |             | 35  | %           |  |                    | 34 | %                 |  |  | 8.6  | % |  |  | 8.3  | %
|Tier 1 Capital (to Risk Weighted Assets) |              |  |             |     |             |  |                    |    |                   |  |  |      |   |  |  |     
|                                         | Consolidated |  |             | 36  | %           |  |                    | 34 | %                 |  |  | 9.0  | % |  |  | 8.3  | %
|                                         | Bank         |  |             | 36  | %           |  |                    | 34 | %                 |  |  | 9.9  | % |  |  | 9.8  | %
|Total Capital (to Risk Weighted Assets)  |              |  |             |     |             |  |                    |    |                   |  |  |      |   |  |  |     
|                                         | Consolidated |  |             | 310 | %           |  |                    | 38 | %                 |  |  | 10.9 | % |  |  | 10.9 | %
|                                         | Bank         |  |             | 310 | %           |  |                    | 38 | %                 |  |  | 10.8 | % |  |  | 10.8 | %

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

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

NOTE 10 - SEGMENT REPORTING

TIB Financial Corp. has two reportable segments in their continuing operations:
community banking and merchant bankcard processing. The community banking
segments business is to attract deposits from the public and to use such
deposits to make real estate, business and consumer loans in its primary
service area. The merchant bankcard processing segment processes credit card
transactions for local merchants. The results of Keys Insurance Agency, Inc.
are not included in the segment reporting as they are classified separately as
discontinued operations in our consolidated financial statements (see Note 11).
Total assets of Keys Insurance Agency, Inc. at September 30,
2003 and September 30, 2002 were $181,498 and $2,323,790,
respectively.

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

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

|                              |  |           |           |            |  |          |           |        |  |   |          |   |  |   |           | 
|----------------------------- |  | --------- | --------- | ---------- |  | -------- | --------- | ------ |  | - | -------- | - |  | - | --------- | 
|                              |  |           |           |            |  | Merchant |           | Parent |  |   |          |  
|Three months ended            |  | Community |           | Bankcard   |  | And      |           |        |  |  
|September 30, 2003            |  | Banking   |           | Processing |  | Other    |           | Totals
|                              |  |           |           |            |  |          |           |       
|Interest income               |  | $         | 8,748,371 |            |  | $        |          |        |  | $ |         |   |  | $ | 8,748,371 | 
|Interest expense              |  |           | 2,005,353 |            |  |          |          |        |  |   | 397,684  |   |  |   | 2,403,037 | 
|                              |  |           |           |            |  |          |           |        |  |   |          |   |  |   |           | 
|Net interest income           |  |           | 6,743,018 |            |  |          |          |        |  |   | (397,684 | ) |  |   | 6,345,334 | 
|Other income                  |  |           | 1,571,575 |            |  |          | 1,213,195 |        |  |   | 112,361  |   |  |   | 2,897,131 | 
|Depreciation and amortization |  |           | 498,778   |            |  |          | 11,441    |        |  |   | 1,023    |   |  |   | 511,242   | 
|Other expense                 |  |           | 5,807,516 |            |  |          | 972,270   |        |  |   | 196,166  |   |  |   | 6,975,952 | 
|                              |  |           |           |            |  |          |           |        |  |   |          |   |  |   |           | 
|Pretax segment profit (loss)  |  | $         | 2,008,299 |            |  | $        | 229,484   |        |  | $ | (482,512 | ) |  | $ | 1,755,271 | 
|                              |  |           |           |            |  |          |           |        |  |   |          |   |  |   |           | 

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|                              |  |           |           |            |  |          |         |        |  |   |          |   |  |   |           | 
|----------------------------- |  | --------- | --------- | ---------- |  | -------- | ------- | ------ |  | - | -------- | - |  | - | --------- | 
|                              |  |           |           |            |  | Merchant |         | Parent |  |   |          |  
|Three months ended            |  | Community |           | Bankcard   |  | and      |         |        |  |  
|September 30, 2002            |  | Banking   |           | Processing |  | Other    |         | Totals
|                              |  |           |           |            |  |          |         |       
|Interest income               |  | $         | 7,886,556 |            |  | $        |        |        |  | $ | 8,994    |   |  | $ | 7,895,550 | 
|Interest expense              |  |           | 2,249,952 |            |  |          |        |        |  |   | 406,977  |   |  |   | 2,656,929 | 
|                              |  |           |           |            |  |          |         |        |  |   |          |   |  |   |           | 
|Net interest income           |  |           | 5,636,604 |            |  |          |        |        |  |   | (397,983 | ) |  |   | 5,238,621 | 
|Other income                  |  |           | 1,302,982 |            |  |          | 961,952 |        |  |   | 36,862   |   |  |   | 2,301,796 | 
|Depreciation and amortization |  |           | 424,026   |            |  |          | 11,370  |        |  |   | 1,251    |   |  |   | 436,647   | 
|Other expense                 |  |           | 4,474,522 |            |  |          | 790,926 |        |  |   | 140,903  |   |  |   | 5,406,351 | 
|                              |  |           |           |            |  |          |         |        |  |   |          |   |  |   |           | 
|Pretax segment profit (loss)  |  | $         | 2,041,038 |            |  | $        | 159,656 |        |  | $ | (503,275 | ) |  | $ | 1,697,419 | 
|                              |  |           |           |            |  |          |         |        |  |   |          |   |  |   |           | 

|                              |  |           |             |            |  |          |           |        |  |   |            |   |  |   |             | 
|----------------------------- |  | --------- | ----------- | ---------- |  | -------- | --------- | ------ |  | - | ---------- | - |  | - | ----------- | 
|                              |  |           |             |            |  | Merchant |           | Parent |  |   |            |  
|Nine months ended             |  | Community |             | Bankcard   |  | and      |           |        |  |  
|September 30, 2003            |  | Banking   |             | Processing |  | Other    |           | Totals
|                              |  |           |             |            |  |          |           |       
|Interest income               |  | $         | 25,490,850  |            |  | $        |          |        |  | $ |           |   |  | $ | 25,490,850  | 
|Interest expense              |  |           | 6,232,024   |            |  |          |          |        |  |   | 1,192,762  |   |  |   | 7,424,786   | 
|                              |  |           |             |            |  |          |           |        |  |   |            |   |  |   |             | 
|Net interest income           |  |           | 19,258,826  |            |  |          |          |        |  |   | (1,192,762 | ) |  |   | 18,066,064  | 
|Other income                  |  |           | 4,750,222   |            |  |          | 3,812,093 |        |  |   | 501,005    |   |  |   | 9,063,320   | 
|Depreciation and amortization |  |           | 1,453,714   |            |  |          | 34,797    |        |  |   | 3,375      |   |  |   | 1,491,886   | 
|Other expense                 |  |           | 16,590,722  |            |  |          | 3,075,923 |        |  |   | 568,272    |   |  |   | 20,234,917  | 
|                              |  |           |             |            |  |          |           |        |  |   |            |   |  |   |             | 
|Pretax segment profit (loss)  |  | $         | 5,964,612   |            |  | $        | 701,373   |        |  | $ | (1,263,404 | ) |  | $ | 5,402,581   | 
|                              |  |           |             |            |  |          |           |        |  |   |            |   |  |   |             | 
|Segment Assets                |  | $         | 645,231,425 |            |  | $        | 45,941    |        |  | $ | 439,415    |   |  | $ | 645,716,781 | 

|                              |  |           |             |            |  |          |           |        |  |   |            |   |  |   |             | 
|----------------------------- |  | --------- | ----------- | ---------- |  | -------- | --------- | ------ |  | - | ---------- | - |  | - | ----------- | 
|                              |  |           |             |            |  | Merchant |           | Parent |  |   |            |  
|Nine months ended             |  | Community |             | Bankcard   |  | and      |           |        |  |  
|September 30, 2002            |  | Banking   |             | Processing |  | Other    |           | Totals
|                              |  |           |             |            |  |          |           |       
|Interest income               |  | $         | 23,137,426  |            |  | $        |          |        |  | $ | 26,689     |   |  | $ | 23,164,115  | 
|Interest expense              |  |           | 6,548,439   |            |  |          |          |        |  |   | 1,217,437  |   |  |   | 7,765,876   | 
|                              |  |           |             |            |  |          |           |        |  |   |            |   |  |   |             | 
|Net interest income           |  |           | 16,588,987  |            |  |          |          |        |  |   | (1,190,748 | ) |  |   | 15,398,239  | 
|Other income                  |  |           | 3,909,488   |            |  |          | 3,421,796 |        |  |   | 166,711    |   |  |   | 7,497,995   | 
|Depreciation and amortization |  |           | 1,274,228   |            |  |          | 32,928    |        |  |   | 3,804      |   |  |   | 1,310,960   | 
|Other expense                 |  |           | 13,274,166  |            |  |          | 2,783,409 |        |  |   | 445,209    |   |  |   | 16,502,784  | 
|                              |  |           |             |            |  |          |           |        |  |   |            |   |  |   |             | 
|Pretax segment profit (loss)  |  | $         | 5,950,081   |            |  | $        | 605,459   |        |  | $ | (1,473,050 | ) |  | $ | 5,082,490   | 
|                              |  |           |             |            |  |          |           |        |  |   |            |   |  |   |             | 
|Segment Assets                |  | $         | 540,855,478 |            |  | $        | 74,288    |        |  | $ | 1,031,794  |   |  | $ | 541,961,560 | 

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

NOTE 11  DISCONTINUED OPERATIONS

On August 15, 2003, the Company closed the sale of Keys Insurance Agency, Inc.,
a wholly owned subsidiary of the Company, to Derek Martin-Vegue and his
partner. Mr. Martin-Vegue is a former director of the Company and TIB Bank of
the Keys. The transaction was structured as a sale of the agency assets. The
buyer paid $2,204,930 in cash at the closing. Of the cash payment at closing,
proceeds of $2,020,938 were pursuant to a loan from TIB Bank of the Keys (a
subsidiary of the Company) to the buyer. The Company recognized a loss of
$14,676 on the transaction.

The results of Keys Insurance Agency, Inc. operations, which have been
classified as discontinued operations in the accompanying consolidated
financial statements, are summarized as follows:

|                                         |                               |  |      |         |      |  |   |         | 
|---------------------------------------- | ----------------------------- |  | ---- | ------- | ---- |  | - | ------- | 
|                                         |                               |  | 2003 |         | 2002
|                                         |                               |  |      |         |     
|FOR THE THREE MONTHS ENDED SEPTEMBER 30: |                               |  |      |         |      |  |   |        
|                                         | Other income                  |  | $    | 276,998 |      |  | $ | 488,257 | 
|                                         | Depreciation and amortization |  |      | 7,049   |      |  |   | 16,191  | 

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|                                           |                               |   |         |           |      |   |         |          
|------------------------------------------ | ----------------------------- | - | ------- | --------- | ---- | - | ------- | ---------
|                                           |                               |   | 2003    |           | 2002
|                                           |                               |   |         |           |     
|                                           | Other expense                 |   |         | 233,975   |      |   |         | 387,827  
|                                           |                               |   |         |           |      |   |         |          
|Pretax income from discontinued operations |                               | $ | 35,974  |           |      | $ | 84,239  |          
|                                           |                               |   |         |           |      |   |         |          
|FOR THE NINE MONTHS ENDED SEPTEMBER 30:    |                               |   |         |           |      |   |         |          
|                                           | Other income                  |   | $       | 1,254,816 |      |   | $       | 1,422,970
|                                           | Depreciation and amortization |   |         | 34,432    |      |   |         | 43,117   
|                                           | Other expense                 |   |         | 1,019,797 |      |   |         | 1,155,401
|                                           |                               |   |         |           |      |   |         |          
|Pretax income from discontinued operations |                               | $ | 200,587 |           |      | $ | 224,452 |          
|                                           |                               |   |         |           |      |   |         |          




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

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

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

THREE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002

RESULTS OF OPERATIONS
The Companys net income of $1,162,945 for the third quarter of 2003, was a
$57,713 or 4.7% decrease compared to $1,220,658 for the same period last year.
Basic and diluted earnings per share for the third quarter of 2003 were $0.26
and $0.25 respectively as compared to $0.30 and $0.29 per share in the previous
years quarter.

Net income from continuing operations was $1,140,471 for the third quarter of
2003, compared to $1,168,289 for the prior year period, a decrease of $27,818
or 2.4%. As discussed in Note 11 of the accompanying Notes to Consolidated
Financial Statements, the Company closed the sale of its wholly owned
subsidiary, Keys Insurance Agency, Inc., in the third quarter of 2003. Due to

this sale, recorded goodwill was reduced by $2,010,211, resulting in a direct
increase in regulatory capital that will be used to support further growth and
expansion of the Companys core business.

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

Net interest income was $6,345,334 for the three months ended September 30,
2003, compared to $5,238,621 for the same period in 2002. The 21.1% increase
was mainly attributable to increased volumes in the loan portfolio which is one
of our highest yielding asset classes, and these funds came primarily from the
deposit growth of the Bank. Partially offsetting this

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was a relative increase in interest expense on time deposits, our highest cost
deposit category as a percentage share of total deposits.

PROVISION FOR LOAN LOSSES

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

The provision for loan losses increased $344,000 or 334.0% to $447,000 in the
third quarter of 2003 compared to $103,000 in the third quarter of 2002. The
higher provision for loan losses in 2003 was attributable to growth in the loan
portfolio which this year included significant amounts of indirect automobile
loans compared to very few in the prior year. Net charge-offs were $146,620
during the three months ended September 30, 2003, compared to $1,200 net
recoveries for the same period in 2002. Management will continue to monitor
the credit quality of the lending portfolio and will recognize additional
provisions in the future as necessary, in the opinion of management, to
maintain the allowance for loan losses at an appropriate level.

NON-INTEREST INCOME

Non-interest income for the third quarter of 2003 was $2,897,131. This
represents a $595,335 or 25.9% increase over the prior year quarter which
totaled $2,301,796. The increase in non-interest income is attributable to an
increase of $83,980 in service charges on deposit accounts; an increase of
$251,243 in merchant bankcard processing income; a $184,413 increase in fees on
mortgage loans sold; a $75,499 increase in retail investment services; a
$2,166 increase in other income; offset by a $1,966 decrease in net investment
security gains.

The increases in merchant bankcard processing income, fees on mortgage loans
sold and retail investment services are primarily a result of volume increases.
Service charges on deposit accounts increased primarily due to an increase in
service charge fees.

NON-INTEREST EXPENSE

Non-interest expense for the third quarter of 2003 was $7,040,194. This
represents a $1,300,196 or 22.7% increase over the prior year quarter which
totaled $5,739,998. The increase in non-interest expense is attributable to
salaries and employee benefits increasing $624,620, net occupancy expense
increasing $142,954, and other expense increasing $532,622. A portion of these
increases are a result of the continuing expansion in the Southwest Florida
market. The Bank added a new location there in the fourth quarter of 2002.
The addition of this facility, as well as other branch openings in recent years
and their continued growth, has caused the Bank to hire additional personnel
and incur additional operating costs. Further, additional staffing has been
required for the origination and servicing of indirect loans and to meet the
compliance requirements under the Patriot Act and other new government
regulations. We also had increased commission expense over the prior year, due
to increased revenues from fees on mortgage loans sold and retail investment
services. Additionally, this quarter the Bank reduced its carrying value of a
foreclosed property by $168,000 to reflect a reduced market value, as discussed
under the Non-Performing Assets section.

INCOME TAXES

The change in income tax expense is primarily attributable to the growth in
income before income taxes. The provision for income taxes related to
continuing operations totaled $614,800, for an effective tax rate of 35.0%, for

the three months ended September 30, 2003, and $529,130 for an effective tax
rate of 31.2%, for the three months ended September 30, 2002.

NINE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002

RESULTS OF OPERATIONS

The Companys net income of $3,637,668 for the first nine months of 2003, was a
$124,526 or 3.5% increase compared to $3,513,142 for the same period last year.
Basic and diluted earnings per share for the first nine months of 2003 were
$0.87 and $0.83 respectively as compared to $0.88 and $0.85 per share in the
previous years nine month period.

Performance of banks is often measured by various ratio analyses. Two widely
recognized indicators are return on average equity and return on average
assets. Annualized return on average equity for the nine months ended
September 30, 2003 was 13.21% on average equity of $36,717,000, compared to
15.35% on average equity of $30,509,000 for the same period in 2002.
Annualized return on average assets of $611,244,000 for the nine months ended
September 30, 2003 was 0.79%, compared to 0.89% on average assets of
$527,169,000 for the same period in 2002.

NET INTEREST INCOME

Net interest income represents the amount by which interest income on
interest-earning assets exceeds interest incurred on interest-bearing
liabilities. Net interest income is the largest component of the Companys
income, and is affected by the

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interest rate environment, and the volume and the composition of
interest-earning assets and interest-bearing liabilities. Interest earning
assets for the Company include loans, federal funds sold, interest bearing
deposits in other banks, and investment securities. The Companys
interest-bearing liabilities include its deposits, federal funds purchased,
notes payable related to Company shares repurchased, trust preferred
securities, advances from the Federal Home Loan Bank, and other short term
borrowings.

Net interest income increased $2,667,825, or 17.3%, to $18.1 million, in the
nine months ended September 30, 2003 as compared to the same period last year.
The prime rate as published in the Wall Street Journal began 2002 at 4.75%, by
November 2002 it had declined to 4.25% and in June 2003 it declined to 4.00%.
Many of the Banks loans are indexed to this floating rate, although they also
include floors. The lower level of prime rate in the first nine months of 2003
compared to the comparative period in 2002 did result in a lower average yield
in the loan portfolio, however, increased volumes more than compensated for
this allowing for the reported increase in interest income. In addition to
this increase in interest income, the Company has been able to reprice maturing
high-rate certificates of deposit and other funding sources resulting in a
reduction in interest expense compared to the prior year.

In furtherance of our efforts to generate higher relative yielding assets, the
Bank began a program to acquire indirect automobile loans. After significant
study, we began in April 2002 to put together a department that we feel could
safely acquire and service this type of product. We predominately buy loans
from auto dealers in southwest Florida which are for the purchase of new or
late model used cars. We serve customers over a broad range of
creditworthiness and the required terms and rates are reflective of those risk
profiles. By the end of 2002, we were buying approximately $4 million per
month of indirect automobile paper and as of September 30, 2003, we had
approximately $50.9 million of indirect loans outstanding.

The average yield on interest-earning assets for the first nine months of 2003
was 6.20% which was a decrease of 35 basis points compared to the 6.55% yield
earned during the first nine months of 2002. The average cost of
interest-bearing deposits declined 40 basis points from 2.34% during the first
nine months of 2002 to 1.94% for the comparable period in 2003, and the rate of
all interest-bearing liabilities decreased 43 basis points, from 2.62% in 2002
to 2.19% in 2003. The Companys net interest margin increased to 4.40% in the
first nine months of 2003 compared to 4.36% in the first nine months of 2002.
We anticipate interest rates slowly trending up over the next twelve months.
If this occurs or if rates remain stable, net interest margin should expand
only slightly due principally to strong new loan production.

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

|                                  |                               |                            |                                          |        |          |         |         |  |        |        |          |   |         |      |         |        |         |         |        |  |       |        |      |   |      |      |  
|--------------------------------- | ----------------------------- | -------------------------- | ---------------------------------------- | ------ | -------- | ------- | ------- |  | ------ | ------ | -------- | - | ------- | ---- | ------- | ------ | ------- | ------- | ------ |  | ----- | ------ | ---- | - | ---- | ---- | -
|                                  |                               |                            |                                          |        |          |         |         |  | 2003   |        |          |   |         |      |         |        |         |         | 2002   |  |       |        |     
|                                  |                               |                            |                                          |        |          |         |         |  |        |        |          |   |         |      |         |        |         |         |        |  |       |        |     
|                                  |                               |                            |                                          |        | AVERAGE  |         | INCOME/ |  | YIELDS |        | AVERAGE  |   | INCOME/ |      | YIELDS 
|                                  |                               |                            |                                          |        | BALANCES |         | EXPENSE |  | RATES  |        | BALANCES |   | EXPENSE |      | RATES  
|(Dollars in thousands)            |                               |                            |                                          |        |          |         |         |  |        |        |          |  
|                                  | Interest-earning assets:      |                            |                                          |        |          |         |         |  |        |        |          |   |         |      |         |        |         |         |        |  |       |        |      |   |     
|                                  |                               |                            | Loans (1)(2)                             |        | $        | 469,225 |         |  | $      | 23,254 |          |   |         | 6.63 | %       |        | $       | 395,061 |        |  | $     | 20,440 |      |   |      | 6.92 | %
|                                  |                               |                            | Investment securities - taxable          |        |          | 47,886  |         |  |        | 1,736  |          |   |         | 4.85 | %       |        |         | 51,765  |        |  |       | 2,211  |      |   |      | 5.71 | %
|                                  |                               |                            | Investment securities  tax exempt (2)   |        |          | 7,194   |         |  |        | 358    |          |   |         | 6.65 | %       |        |         | 5,545   |        |  |       | 301    |      |   |      | 7.26 | %
|                                  |                               |                            | Interest-bearing deposits in other banks |        |          | 327     |         |  |        | 2      |          |   |         | 0.71 | %       |        |         | 307     |        |  |       | 4      |      |   |      | 1.78 | %
|                                  |                               |                            | Federal Home Loan Bank stock             |        |          | 1,476   |         |  |        | 40     |          |   |         | 3.62 | %       |        |         | 1,500   |        |  |       | 61     |      |   |      | 5.41 | %
|                                  |                               | Federal funds sold         |                                          |        | 26,132   |         |         |  | 227    |        |          |   | 1.16    | %    |         |        | 21,329  |         |        |  | 268   |        |      |   | 1.68 | %   
|                                  |                               |                            |                                          |        |          |         |         |  |        |        |          |   |         |      |         |        |         |         |        |  |       |        |      |  
|Total interest-earning assets     |                               |                            | 552,240                                  |        |          |         | 25,617  |  |        |        | 6.20     | % |         |      | 475,507 |        |         |         | 23,285 |  |       |        | 6.55 | %
|                                  |                               |                            |                                          |        |          |         |         |  |        |        |          |   |         |      |         |        |         |         |        |  |       |        |      |  
|Non-interest-earning assets:      |                               |                            |                                          |        |          |         |         |  |        |        |          |   |         |      |         |        |         |         |        |  |       |        |      |  
|                                  | Cash and due from banks       |                            |                                          | 15,463 |          |         |         |  |        |        |          |   |         |      |         | 13,553 |         |         |        |  |       |        |      |   |     
|                                  | Investment in ERAS            |                            |                                          | 69     |          |         |         |  |        |        |          |   |         |      |         | 255    |         |         |        |  |       |        |      |   |     
|                                  | Premises and equipment, net   |                            |                                          | 19,247 |          |         |         |  |        |        |          |   |         |      |         | 17,462 |         |         |        |  |       |        |      |   |     
|                                  | Allowances for loan losses    |                            |                                          | (4,561 | )        |         |         |  |        |        |          |   |         |      |         | (3,897 | )       |         |        |  |       |        |      |   |     
|                                  | Other assets                  |                            |                                          | 28,786 |          |         |         |  |        |        |          |   |         |      |         | 24,289 |         |         |        |  |       |        |      |   |     
|                                  |                               |                            |                                          |        |          |         |         |  |        |        |          |   |         |      |         |        |         |         |        |  |       |        |      |  
|Total non-interest-earning assets |                               |                            | 59,004                                   |        |          |         |         |  |        |        |          |   |         |      | 51,662  |        |         |         |        |  |       |        |      |  
|                                  |                               |                            |                                          |        |          |         |         |  |        |        |          |   |         |      |         |        |         |         |        |  |       |        |      |  
|Total assets                      |                               | $                          | 611,244                                  |        |          |         |         |  |        |        |          |   |         | $    | 527,169 |        |         |         |        |  |       |        |      |  
|                                  |                               |                            |                                          |        |          |         |         |  |        |        |          |   |         |      |         |        |         |         |        |  |       |        |      |  
|                                  | Interest-bearing liabilities: |                            |                                          |        |          |         |         |  |        |        |          |   |         |      |         |        |         |         |        |  |       |        |      |   |     
|                                  |                               | Interest-bearing deposits: |                                          |        |          |         |         |  |        |        |          |   |         |      |         |        |         |         |        |  |       |        |      |   |      |     
|                                  |                               | NOW accounts               |                                          | $      | 57,636   |         |         |  | 170    |        |          |   | 0.39    | %    |         | $      | 50,496  |         |        |  | 211   |        |      |   | 0.56 | %   
|                                  |                               | Money market               |                                          |        | 127,772  |         |         |  | 891    |        |          |   | 0.93    | %    |         |        | 129,807 |         |        |  | 1,319 |        |      |   | 1.36 | %   
|                                  |                               | Savings deposits           |                                          |        | 34,677   |         |         |  | 133    |        |          |   | 0.51    | %    |         |        | 29,575  |         |        |  | 170   |        |      |   | 0.77 | %   
|                                  |                               | Other time deposits        |                                          |        | 196,239  |         |         |  | 4,862  |        |          |   | 3.31    | %    |         |        | 145,621 |         |        |  | 4,527 |        |      |   | 4.16 | %   
|                                  |                               |                            |                                          |        |          |         |         |  |        |        |          |   |         |      |         |        |         |         |        |  |       |        |      |  

16



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|                                                                |                                         |   |         |         |          |   |         |     |        |  |          |      |         |   |         |        |  |   |        |     |  |  |      |      |   |  | 
|--------------------------------------------------------------- | --------------------------------------- | - | ------- | ------- | -------- | - | ------- | --- | ------ |  | -------- | ---- | ------- | - | ------- | ------ |  | - | ------ | --- |  |  | ---- | ---- | - |  | 
|                                                                |                                         |   |         |         |          |   |         |     | 2003   |  |          |      |         |   |         |        |  |   | 2002   |     |  |  |     
|                                                                |                                         |   |         |         |          |   |         |     |        |  |          |      |         |   |         |        |  |   |        |     |  |  |     
|                                                                |                                         |   |         |         | AVERAGE  |   | INCOME/ |     | YIELDS |  | AVERAGE  |      | INCOME/ |   | YIELDS 
|                                                                |                                         |   |         |         | BALANCES |   | EXPENSE |     | RATES  |  | BALANCES |      | EXPENSE |   | RATES  
|(Dollars in thousands)                                          |                                         |   |         |         |          |   |         |     |        |  |          |     
|Total interest-bearing deposits                                 |                                         |   | 416,324 |         |          |   | 6,056   |     |        |  | 1.94     | %    |         |   | 355,499 |        |  |   | 6,227  |     |  |  | 2.34 | %   
|                                                                | Other interest-bearing liabilities:     |   |         |         |          |   |         |     |        |  |          |      |         |   |         |        |  |   |        |     |  |  |      |      |  
|                                                                | Notes payable                           |   |         | 5,250   |          |   |         | 360 |        |  |          | 9.16 | %       |   |         | 5,250  |  |   |        | 360 |  |  |      | 9.16 | %
|                                                                | Short-term borrowings and FHLB advances |   |         | 18,319  |          |   |         | 176 |        |  |          | 1.28 | %       |   |         | 22,441 |  |   |        | 323 |  |  |      | 1.92 | %
|                                                                | Trust preferred securities              |   |         | 13,000  |          |   |         | 833 |        |  |          | 8.57 | %       |   |         | 13,000 |  |   |        | 856 |  |  |      | 8.80 | %
|                                                                |                                         |   |         |         |          |   |         |     |        |  |          |      |         |   |         |        |  |   |        |     |  |  |      |     
|Total interest-bearing liabilities                              |                                         |   | 452,893 |         |          |   | 7,425   |     |        |  | 2.19     | %    |         |   | 396,190 |        |  |   | 7,766  |     |  |  | 2.62 | %   
|                                                                |                                         |   |         |         |          |   |         |     |        |  |          |      |         |   |         |        |  |   |        |     |  |  |      |     
|Non-interest-bearing liabilities and
stockholders equity:      |                                         |   |         |         |          |   |         |     |        |  |          |      |         |   |         |        |  |   |        |     |  |  |      |     
|                                                                | Demand deposits                         |   |         | 114,214 |          |   |         |     |        |  |          |      |         |   |         | 94,806 |  |   |        |     |  |  |      |      |  
|                                                                | Other liabilities                       |   |         | 7,420   |          |   |         |     |        |  |          |      |         |   |         | 5,664  |  |   |        |     |  |  |      |      |  
|                                                                | Stockholders equity                    |   |         | 36,717  |          |   |         |     |        |  |          |      |         |   |         | 30,509 |  |   |        |     |  |  |      |      |  
|                                                                |                                         |   |         |         |          |   |         |     |        |  |          |      |         |   |         |        |  |   |        |     |  |  |      |     
|Total non-interest-bearing liabilities and
stockholders equity |                                         |   | 158,351 |         |          |   |         |     |        |  |          |      |         |   | 130,979 |        |  |   |        |     |  |  |      |     
|                                                                |                                         |   |         |         |          |   |         |     |        |  |          |      |         |   |         |        |  |   |        |     |  |  |      |     
|Total liabilities and stockholders equity                      |                                         | $ | 611,244 |         |          |   |         |     |        |  |          |      |         | $ | 527,169 |        |  |   |        |     |  |  |      |     
|                                                                |                                         |   |         |         |          |   |         |     |        |  |          |      |         |   |         |        |  |   |        |     |  |  |      |     
|Interest rate spread (tax equivalent basis)                     |                                         |   |         |         |          |   |         |     |        |  | 4.01     | %    |         |   |         |        |  |   |        |     |  |  | 3.93 | %   
|                                                                |                                         |   |         |         |          |   |         |     |        |  |          |      |         |   |         |        |  |   |        |     |  |  |      |     
|Net interest income (tax equivalent basis)                      |                                         |   |         |         |          | $ | 18,192  |     |        |  |          |      |         |   |         |        |  | $ | 15,519 |     |  |  |      |     
|                                                                |                                         |   |         |         |          |   |         |     |        |  |          |      |         |   |         |        |  |   |        |     |  |  |      |     
|Net interest margin (3) (tax equivalent basis)                  |                                         |   |         |         |          |   |         |     |        |  | 4.40     | %    |         |   |         |        |  |   |        |     |  |  | 4.36 | %   
|                                                                |                                         |   |         |         |          |   |         |     |        |  |          |      |         |   |         |        |  |   |        |     |  |  |      |     



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

The table below details the components of the changes in net interest income
for the nine months ended September 20, 2003 and September 30, 2002. For each
major category of interest-earning assets and interest-bearing liabilities,
information is provided with respect to changes due to average volumes, changes
due to rates, with the changes in both volumes and rates allocated to these two
categories based on the proportionate absolute changes in each category.

|                                         |                        |        |                           |       |         |            |          |        |   |   |       |       |  
|---------------------------------------- | ---------------------- | ------ | ------------------------- | ----- | ------- | ---------- | -------- | ------ | - | - | ----- | ----- | -
|                                         |                        |        | 2003 compared to 2002 (1)
|                                         |                        |        | Due to changes in        
|                                         |                        |        |                          
|                                         |                        |        |                           |       |         |            |          |        |   |   | Net  
|                                         |                        |        | Average                   |       | Average |            | Increase
|(In thousands)                           |                        | Volume |                           | Rate  |         | (Decrease)
|                                         |                        |        |                           |       |         |           
|INTEREST INCOME                         
|Loans (2)                                |                        | $      | 4,174                     |       |         | $          | (1,360   | )      |   | $ | 2,814 |      
|Investment Securities (2)                |                        |        | (61                       | )     |         |            | (357     | )      |   |   | (418  | )    
|Interest-bearing deposits in other banks |                        |        |                          |       |         |            | (2       | )      |   |   | (2    | )    
|Federal Home Loan Bank Stock             |                        |        | (1                        | )     |         |            | (20      | )      |   |   | (21   | )    
|Federal Funds sold                       |                        |        | 76                        |       |         |            | (117     | )      |   |   | (41   | )    
|                                         |                        |        |                           |       |         |            |          |        |   |   |       |      
|                                         | Total interest income  |        |                           | 4,188 |         |            |          | (1,856 | ) |   |       | 2,332 |  
|                                         |                        |        |                           |       |         |            |          |        |   |   |       |      
|INTEREST EXPENSE                         |                        |        |                           |       |         |            |          |        |   |   |       |      
|NOW Accounts                             |                        |        | 42                        |       |         |            | (83      | )      |   |   | (41   | )    
|Money Market                             |                        |        | (20                       | )     |         |            | (408     | )      |   |   | (428  | )    
|Savings deposits                         |                        |        | 39                        |       |         |            | (76      | )      |   |   | (37   | )    
|Other time deposits                      |                        |        | 1,770                     |       |         |            | (1,435   | )      |   |   | 335   |      
|Notes payable                            |                        |        |                          |       |         |            |         |        |   |   |      |      
|Trust preferred securities               |                        |        |                          |       |         |            | (23      | )      |   |   | (23   | )    
|Short-term borrowings and FHLB advances  |                        |        | (52                       | )     |         |            | (95      | )      |   |   | (147  | )    
|                                         |                        |        |                           |       |         |            |          |        |   |   |       |      
|                                         | Total interest expense |        |                           | 1,779 |         |            |          | (2,120 | ) |   |       | (341  | )
|                                         |                        |        |                           |       |         |            |          |        |   |   |       |      
|Change in net interest income            |                        | $      | 2,409                     |       |         | $          | 264      |        |   | $ | 2,673 |      
|                                         |                        |        |                           |       |         |            |          |        |   |   |       |      



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

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|(2) |  | Interest income includes the effects of a tax equivalent adjustment using
a federal tax rate of 34% in adjusting tax exempt interest on tax exempt
investment securities and loans to a fully taxable basis.
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

PROVISION FOR LOAN LOSSES

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

The provision for loan losses increased $666,000 or 180.5% to $1,035,000 in the
first nine months of 2003 compared to $369,000 in the comparable prior year
period. The higher provision for loan losses in 2003 was attributable to
growth in the loan portfolio and higher net charge-offs. Net charge-offs were
$452,580 during the nine months ended September 30, 2003, compared to $199,079
for the same period in 2002. Management will continue to monitor the credit
quality of the lending portfolio and will recognize additional provisions in
the future as necessary, in the opinion of management, to maintain the
allowance for loan losses at an appropriate level.

NON-INTEREST INCOME

Non-interest income for the first nine months of 2003 was $9,063,320. This
represents a $1,565,325 or 20.9% increase over the prior year period which
totaled $7,497,995. The increase in non-interest income is attributable to an
increase of $164,587 in service charges on deposit accounts; an increase of
$390,297 in merchant bankcard processing income; a $64,291 increase in gain on
sale of government guaranteed loans; a $721,675 increase in fees on mortgage
loans sold; a $130,331 increase in retail investment services; a $202,393
increase in gain on sale of investment in ERAS Joint Venture; a $26,507
increase in other income; offset by a $134,756 decrease in net investment
security gains.

The increases in merchant bankcard processing income, fees on mortgage loans
sold and retail investment services are primarily a result of volume increases.
On May 29, 2003, we sold our remaining interest in ERAS Joint Venture for
$326,667. We recognized a pretax gain of approximately $202,000 on this
transaction. The net gain from the sale of investment securities will vary
based upon the sales and calls of the individual securities in the investment
portfolio. In 2002, the gain was primarily the result of the sale of two
corporate securities which netted a gain of approximately $65,000 in the first
quarter of 2002 and the sale of two agency securities in the second quarter of
2002 that netted a gain of approximately $64,000. The amount in 2003 relates
to the gain on certain calls of investment securities in the first and third
quarters. Gain on sale of government guaranteed loans result from a relatively
small number of transactions and, therefore, the revenue recognition from these
transactions can vary considerably depending on the number of loans sold and
the dollar amount of the transactions. There was one loan sold in the first
nine months of 2002 and one loan sold in the first nine months of 2003.
Service charges on deposit accounts increased primarily due to an increase in
service charge fees. Also included in non-interest income is an increase in
fee income resulting from the Banks expansion of its residential mortgage
origination function into the transaction rich market of Southwest Florida.
These fees result from the immediate sale of fixed rate residential mortgages
into the secondary market.

NON-INTEREST EXPENSE

Non-interest expense for the first nine months of 2003 was $20,691,803. This
represents a $3,247,059 or 18.6% increase over the prior year period which
totaled $17,444,744. The increase in non-interest expense is attributable to
salaries and employee benefits increasing $1,812,252, net occupancy expense
increasing $458,037, and other expense increasing $976,770. A portion of these
increases are a result of the continuing expansion in the Southwest Florida
market. The Bank added a new location there in the fourth quarter of 2002.
The addition of this facility, as well as other branch openings in recent years
and their continued growth, has caused the Bank to hire additional personnel
and incur additional operating costs. Opening new branch facilities is
dilutive to earnings in the near term but may be a factor in achieving
sustainable long-term growth. Further, additional staffing has been required
to handle the growing lending portfolios, increased customer activity and
compliance with new government regulations, such as the Patriot Act. This
includes additional staffing for the origination and servicing of indirect
loans which began in the second quarter of 2002. Another reason for the
salaries and employee benefits increase is the higher commission expense that
resulted from increased revenues from non-interest income sources, such as fees
on mortgage loans sold, retail investment services, and gain on sale of
government guaranteed loans. Additionally, the Bank has reduced its carrying
value of a foreclosed property by a total of $262,000 in 2003 to reflect a
reduced market value as discussed under the Non-Performing Assets section.

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INCOME TAXES

The change in income tax expense is primarily attributable to the growth in
income before income taxes. The provision for income taxes related to
continuing operations totaled $1,890,100, for an effective tax rate of 35.0%,
for the nine months ended September 30, 2003, and $1,709,230, for an effective
tax rate of 33.6%, for the nine months ended September 30, 2002.

BALANCE SHEET

Total assets at September 30, 2003 were $645,898,279, up 13.9% from total
assets of $567,148,646 at December 31, 2002. Loans net of deferred loan costs
increased $69,548,159, or 15.7%, to $512,076,093 for the first nine months of
2003 from year end 2002. Also, in the same period, federal funds sold
increased $4,180,000, and investment securities increased $10,622,801.

Asset growth was primarily funded by an increase in deposits of $60,199,667, or
12.5%. At September 30, 2003, the Company had $3,072,256 in short-term
borrowings compared to $4,578,959 at December 31, 2002. Short-term borrowings
consist of securities sold under agreements to repurchase and Treasury tax
deposits. Advances from the Federal Home Loan Bank totaled $35 million at
September 30, 2003 as compared to $20 million at December 31, 2002.

Shareholders equity totaled $39,963,952 at September 30, 2003, increasing
$6,457,875 from December 31, 2002. In June 2003, the Company completed a
private placement of 280,653 shares of its common stock to individuals who
qualify as accredited investors under the federal and state securities laws.
Residents of Monroe County, Southwest Florida and Homestead/Florida City
purchased shares, along with three members of the Companys Board of Directors
and an executive officer. The private placement raised approximately $4.3
million in capital at a sales price of $15.64 per share which was priced at 95%
of the average closing bid price for the shares during the five consecutive
trading days ending on the fifth business day prior to the commencement of the
offering. The shares of common stock in this offering were not registered
under the Securities Act of 1933, or any state securities laws pursuant to the
private offering exemption under Section 4(2) of the Securities Act of 1933 and
other state securities laws. The common stock may not be resold or otherwise
transferred unless subsequently registered under the 1933 Act and other
applicable state securities law, or pursuant to an exemption from applicable
state and federal registration requirements.

Book value per share increased to $9.07 at September 30, 2003 from $8.30 at
December 31, 2002. The Company paid a quarterly dividend of $0.11 per share
in the first, second and third quarters of 2003 and $0.1075 per share in the
first, second and third quarters of 2002.

NON-PERFORMING ASSETS

Non-performing assets include nonaccrual loans, accruing loans contractually
past due 90 days or more, restructured loans and other real estate. Loans are
placed on nonaccrual status when management has concerns relating to the
ability to collect the loan principal and interest and generally when such
loans are 90 days or more past due. A loan is considered impaired when it is
probable that not all principal and interest amounts will be collected
according to the loan contract. Non-performing assets for the periods ended
September 30, 2003 and December 31, 2002 were as follows:

|                                                               |  |               |           |              |  |   |           |  
|-------------------------------------------------------------- |  | ------------- | --------- | ------------ |  | - | --------- | -
|                                                               |  | September 30, |           | December 31,
|                                                               |  | 2003          |           | 2002        
|                                                               |  |               |           |             
|Total nonaccrual loans                                         |  | $             | 587,002   |              |  | $ | 545,523   |  
|Accruing loans delinquent 90 days or more                      |  |               |          |              |  |   |          |  
|                                                               |  |               |           |              |  |   |           |  
|Total non-performing loans                                     |  | $             | 587,002   |              |  | $ | 545,523   |  
|Repossessed personal property                                  |  |               | 416,429   |              |  |   | 70,801    |  
|Other real estate owned (a)                                    |  |               | 239,964   |              |  |   | 550,000   |  
|Other assets (a)                                               |  |               | 2,515,715 |              |  |   | 2,519,022 |  
|                                                               |  |               |           |              |  |   |           |  
|Total non-performing assets                                    |  | $             | 3,759,110 |              |  | $ | 3,685,346 |  
|                                                               |  |               |           |              |  |   |           |  
|Allowance for loan losses                                      |  |               | 4,854,919 |              |  |   | 4,272,499 |  
|Non-performing assets as a percent of total assets             |  |               | 0.58      | %            |  |   | 0.65      | %
|Non-performing loans as a percent of gross loans               |  |               | 0.11      | %            |  |   | 0.12      | %
|Allowance for loan losses as a percent of
non-performing loans |  |               | 827.07    | %            |  |   | 783.19    | %



|                                                                                                                                                                                                                                         
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) The Bank has made a loan originally totaling $10,000,000 to
construct a lumber mill in northern Florida. Of this amount, $6,400,000 had
been sold by the Bank to other lenders. The loan was partially guaranteed as
to principal and

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| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | interest by the U.S. Department of Agriculture (USDA). In addition to
business real estate and equipment, the loan was collateralized by the
business owners interest in a trust. Under provisions of the trust
agreement, beneficiaries cannot receive trust assets until November 2010. At
December 31, 2000, the loan was past due greater than 90 days but was still
maintained as an accruing loan because of the USDA guarantee and collateral
value. During 2001, upon completion of foreclosure on the underlying
collateral, the non-guaranteed portion of this loan and interest accrued
through the foreclosure date was reclassified into other real estate
($550,000) and other assets (approximately $1,886,000) based on the fair
value of the underlying-collateral. The portion of this loan guaranteed by
the USDA was approximately $1.6 million at September 30, 2003 and December
31, 2002, and is accruing interest. Accrued interest on this loan totals
approximately $569,000 and $505,000 at September 30, 2003 and December 31,
2002, respectively.
|
| | The Bank has been pursuing a sale of the property and equipment and has
incurred various expenditures. The Bank has capitalized those liquidation
costs and protective advances which it expects will be fully reimbursed by
the USDA. Other real estate recorded on the Banks books totaled $239,964
and $550,000 at September 30, 2003 and December 31, 2002, respectively. The
non-guaranteed principal and interest ($1,961,000 at September 30, 2003 and
December 31, 2002) and the capitalized liquidation costs and protective
advance costs totaling approximately $555,000 and $558,000 at September 30,
2003 and December 31, 2002, respectively are included as other assets in
the table above.                                                                                                                                                                                                                                                                                                                                                                 



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The Bank has sold certain pieces of equipment associated with the lumber mill
property. Proceeds from these sales were used to reduce the other real
estate amount and liquidation cost amounts recorded on the Banks books. In
the second quarter of 2003, the Bank wrote down the carrying amount of the
other real estate by $94,000 based upon anticipated proceeds from the sale of
the property and remaining equipment. The Bank has since reduced the asking
price of the property, and an additional write down of $168,000 was made in
the third quarter of 2003.



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Florida law requires a bank to liquidate or charge off repossessed real
property within five years, and repossessed personal property within six
months. The Bank was awarded title to the real property on June 12, 2001,
and an adjudicated interest in the owners trust proceeds. The time
constraints imposed by Florida law required that the personal property be
disposed of or charged off by December 2001. The Bank applied to the State
of Florida for an extension to carry the personal property on the Banks
books and was granted an extension to carry the personal property on its
books until June 11, 2003. Since the property had not been liquidated as of
June 11th, the Bank charged-off the non guaranteed principal and interest
totaling $1,961,000 at June 30, 2003, for regulatory purposes. Since we
believe this amount is ultimately realizable, we did not write off this
amount for financial statement purposes under generally accepted accounting
principles.

The allowance for loan losses amounted to $4,854,919 and $4,272,499 at
September 30, 2003 and December 31, 2002, respectively.

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

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

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

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LIQUIDITY

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

In addition to maintaining a stable core deposit base, TIB Financial Corps
banking subsidiary maintains adequate liquidity primarily through the use of
investment securities and unused borrowing capacity. The Bank has invested in
Federal Home Loan Bank stock for the purpose of establishing credit lines with
the Federal Home Loan Bank. The credit availability to the Bank is equal to 14
percent of the Banks total assets as reported on the most recent quarterly
financial information submitted to the regulators. The credit availability
approximated $90.2 million at September 30, 2003, under which $35 million was
outstanding. Any advances are secured by the Banks one-to-four family
residential mortgage loans.

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

ASSET AND LIABILITY MANAGEMENT

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

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

|                                       |  |          |         |        |  |         |         |        |  |        |         |       |  |   |         |   |  |   |         |   |  |   |         |  
|-------------------------------------- |  | -------- | ------- | ------ |  | ------- | ------- | ------ |  | ------ | ------- | ----- |  | - | ------- | - |  | - | ------- | - |  | - | ------- | -
|                                       |  | 3 months |         | 4 to 6 |  | 7 to 12 |         | 1 to 5 |  | Over 5 |         |       |  |  
|(Dollars in thousands)                 |  | or less  |         | Months |  | Months  |         | years  |  | Years  |         | Total
|                                       |  |          |         |        |  |         |         |        |  |        |         |      
|Interest-earning assets:               |  |          |         |        |  |         |         |        |  |        |         |       |  |   |         |   |  |   |         |   |  |   |         |  
|Loans                                  |  | $        | 203,420 |        |  | $       | 36,565  |        |  | $      | 33,702  |       |  | $ | 166,724 |   |  | $ | 70,042  |   |  | $ | 510,453 |  
|Investment securities-taxable          |  |          | 12,375  |        |  |         |        |        |  |        |        |       |  |   | 20,553  |   |  |   | 22,906  |   |  |   | 55,834  |  
|Investment securities-tax exempt       |  |          | 235     |        |  |         |        |        |  |        | 317     |       |  |   | 2,910   |   |  |   | 5,595   |   |  |   | 9,057   |  
|Federal Home Loan Bank stock           |  |          | 1,750   |        |  |         |        |        |  |        |        |       |  |   |        |   |  |   |        |   |  |   | 1,750   |  
|Federal funds sold                     |  |          | 9,852   |        |  |         |        |        |  |        |        |       |  |   |        |   |  |   |        |   |  |   | 9,852   |  
|Interest bearing deposit in other
bank |  |          | 425     |        |  |         |        |        |  |        |        |       |  |   |        |   |  |   |        |   |  |   | 425     |  
|                                       |  |          |         |        |  |         |         |        |  |        |         |       |  |   |         |   |  |   |         |   |  |   |         |  
|Total interest-bearing assets          |  |          | 228,057 |        |  |         | 36,565  |        |  |        | 34,019  |       |  |   | 190,187 |   |  |   | 98,543  |   |  |   | 587,371 |  
|                                       |  |          |         |        |  |         |         |        |  |        |         |       |  |   |         |   |  |   |         |   |  |   |         |  
|Interest-bearing liabilities:          |  |          |         |        |  |         |         |        |  |        |         |       |  |   |         |   |  |   |         |   |  |   |         |  
|NOW accounts                           |  |          | 61,795  |        |  |         |        |        |  |        |        |       |  |   |        |   |  |   |        |   |  |   | 61,795  |  
|Money Market                           |  |          | 126,287 |        |  |         |        |        |  |        |        |       |  |   |        |   |  |   |        |   |  |   | 126,287 |  
|Savings Deposits                       |  |          | 38,083  |        |  |         |        |        |  |        |        |       |  |   |        |   |  |   |        |   |  |   | 38,083  |  
|Other time deposits                    |  |          | 28,286  |        |  |         | 22,664  |        |  |        | 77,424  |       |  |   | 74,171  |   |  |   | 6       |   |  |   | 202,551 |  
|Notes payable                          |  |          |        |        |  |         |        |        |  |        |        |       |  |   |        |   |  |   | 5,250   |   |  |   | 5,250   |  
|Trust preferred securities             |  |          | 5,000   |        |  |         |        |        |  |        |        |       |  |   |        |   |  |   | 8,000   |   |  |   | 13,000  |  
|Other borrowings                       |  |          | 38,072  |        |  |         |        |        |  |        |        |       |  |   |        |   |  |   |        |   |  |   | 38,072  |  
|                                       |  |          |         |        |  |         |         |        |  |        |         |       |  |   |         |   |  |   |         |   |  |   |         |  
|Total interest-bearing liabilities     |  |          | 297,523 |        |  |         | 22,664  |        |  |        | 77,424  |       |  |   | 74,171  |   |  |   | 13,256  |   |  |   | 485,038 |  
|                                       |  |          |         |        |  |         |         |        |  |        |         |       |  |   |         |   |  |   |         |   |  |   |         |  
|Interest sensitivity gap               |  | $        | (69,466 | )      |  | $       | 13,901  |        |  | $      | (43,405 | )     |  | $ | 116,016 |   |  | $ | 85,287  |   |  | $ | 102,333 |  
|                                       |  |          |         |        |  |         |         |        |  |        |         |       |  |   |         |   |  |   |         |   |  |   |         |  
|Cumulative interest sensitivity gap    |  | $        | (69,466 | )      |  | $       | (55,565 | )      |  | $      | (98,970 | )     |  | $ | 17,046  |   |  | $ | 102,333 |   |  | $ | 102,333 |  
|                                       |  |          |         |        |  |         |         |        |  |        |         |       |  |   |         |   |  |   |         |   |  |   |         |  
|Cumulative sensitivity ratio           |  |          | (11.8   | )%     |  |         | (9.5    | )%     |  |        | (16.8   | )%    |  |   | 2.9     | % |  |   | 17.4    | % |  |   | 17.4    | %
|                                       |  |          |         |        |  |         |         |        |  |        |         |       |  |   |         |   |  |   |         |   |  |   |         |  

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

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would over time increase and this is particularly true over longer time
horizons since the Company has more total assets subject to rate changes than
total liabilities that are rate sensitive.

Even in the near term, the $99 million one year cumulative negative sensitivity
gap exaggerates the probable effects on earnings in a rising rate environment
for two reasons. First, the liabilities subject to repricing are predominately
not indexed to any specific market rate and therefore offer the Company the
opportunity to delay or diminish any rate repricings. Further, in this current
rate environment, the Bank has been originating loans with interest rate
floors. The effect of this has been to decrease the volatility of net interest
margin and decrease asset sensitivity due to the fact that these loans behave
similar to fixed rate loans in periods over a significant range of interest
rate changes.

Interest-earning assets and other time deposits are presented based on their
contractual terms. It is anticipated that run off in any deposit category will
be approximately offset by new deposit generation. Since the Company has
experienced steady growth in deposits, no net run off in any deposit category
is assumed in the interest rate sensitivity table. It is the Companys policy
to maintain its cumulative one year gap ratio in the 20% to +10% range. At
September 30, 2003, the Company was within this range with a one year
cumulative sensitivity ratio of (16.8)%.

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

COMMITMENTS

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

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

Commitments to extend credit are agreements to lend to a customer as long as
there is no violation of any condition established in the contract. Commitments
generally have fixed expiration dates or other termination clauses and may
require the payment of a fee. At September 30, 2003, total commitments to
extend credit were approximately $69.7 million in unfunded loan commitments.

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

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

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




Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

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

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

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

This analysis intentionally exaggerates interest sensitivity. For the sake of
simplicity and comparability, an immediate change in rates is assumed.
However, any significant change in actual market rates would probably be phased
in over an extended period of time. This phase in would reduce the net
interest income effects for any absolute change in rates. Also, the Company
has been originating adjustable rate commercial loans with interest rate floors
that are currently at rates higher than the index and margin on the loans would
indicate. An example would be a loan at Prime plus 1% but with a 7.0% floor.
The Company currently has in excess of $173 million of these types of loans
where the loan rates are at the floors. The effects of this are twofold.
First, this has benefited our margins currently since we have assets earning
yields higher than would be the case absent the floor rates. Second, in a
declining rate environment and in a limited rising rate environment those
adjustable rate loans act like fixed rate loans. This limits the Companys
loss of interest income when rates decline but does constrain income gains in a
rising rate market. In general, having this significant amount of loans at
their floors reduces the Companys overall rate sensitivity.

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

|                                                  |  |                         |        |                |  |                         |        |        |  |       |        |  |  |   |        |   |  |   |        |  
|------------------------------------------------- |  | ----------------------- | ------ | -------------- |  | ----------------------- | ------ | ------ |  | ----- | ------ |  |  | - | ------ | - |  | - | ------ | -
|                                                  |  | Interest Rates Decrease |        | Interest Rates |  | Interest Rates Increase
|(Dollars in thousands)                            |  | 200 BP                  |        | 100 BP         |  | Remain Constant         |        | 100 BP |  | 200BP
|                                                  |  |                         |        |                |  |                         |        |        |  |      
|2003 Interest Income                              |  | $                       | 32,939 |                |  | $                       | 34,968 |        |  | $     | 37,091 |  |  | $ | 39,056 |   |  | $ | 41,384 |  
|2003 Interest Expense                             |  |                         | 6,503  |                |  |                         | 7,757  |        |  |       | 9,714  |  |  |   | 12,452 |   |  |   | 15,191 |  
|                                                  |  |                         |        |                |  |                         |        |        |  |       |        |  |  |   |        |   |  |   |        |  
|Net Interest Income                               |  | $                       | 26,436 |                |  |                         | 27,211 |        |  | $     | 27,377 |  |  | $ | 26,604 |   |  |   | 26,193 |  
|                                                  |  |                         |        |                |  |                         |        |        |  |       |        |  |  |   |        |   |  |   |        |  
|Change in net income
after tax vs.
constant rates |  | $                       | (587   | )              |  | $                       | (104   | )      |  |       |        |  |  | $ | (482   | ) |  | $ | (739   | )




Item 4. CONTROLS AND PROCEDURES

Evaluation of disclosure controls and procedures

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

Changes in internal controls

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

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Part II.          OTHER INFORMATION




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



| |  | Not applicable.
| |  | ---------------




Item 5. OTHER INFORMATION



| |  | Not applicable
| |  | --------------




Item 6. EXHIBITS AND REPORTS ON FORM 8-K



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



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



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



| |  |  | On July 28, 2003, the Company issued a press release announcing
certain financial results and additional information related to its
second quarter earnings.  
| |  |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  |  | On August 15, 2003, the Company reported it closed the sale of Keys
Insurance Agency, Inc. to Richard Rosier and Derek Martin-Vegue.                          
|
| |  |  | On November 4, 2003, the Company issued a press release announcing
certain financial results and additional information related to its
third quarter earnings.

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SIGNATURES

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

|      |  |                  |  |                                                                      
|----- |  | ---------------- |  | ---------------------------------------------------------------------
|      |  |                  |  | TIB FINANCIAL CORP.                                                  
|      |  |                  |  |                                                                      
|      |  |                  |  | /s/ Edward V. Lett                                                   
|Date: |  | November 7, 2003 |  | Edward V. Lett
President and Chief Executive Officer                 
|      |  |                  |  |                                                                      
|      |  |                  |  |                                                                      
|      |  |                  |  | /s/ David P.
Johnson                                                 
|      |  |                  |  | David P. Johnson
Executive Vice President and Chief Financial Officer

25