TIB Financial Corp. Reports Strong Increases in Third Quarter Net Income and Loan Growth

TIB Financial Corp. (Nasdaq: TIBB), parent of TIB Bank, a leading community bank serving the greater Naples, Bonita Springs-Fort Myers area, South Miami-Dade County and the Florida Keys, today reported third quarter net income and earnings per share from continuing operations of $2.44 million and $0.21 per diluted share compared to $1.95 million and $0.16 in the prior year reflecting increases of 25% and 31%, respectively. Net income including discontinued operations increased to $2.45 million and $0.21 per diluted share compared to $2.05 million and $0.17 in the prior year, reflecting increases of 19% and 24%, respectively. The share and per share amounts discussed throughout this release have been adjusted to account for the effects of the two-for-one stock split distributed October 23, 2006.

For the first nine months of 2006, net income from continuing operations was $7.13 million, an increase of 35% from the $5.29 million reported for the same period a year ago. On a per diluted share basis, earnings from continuing operations were $0.60 for the first nine months of 2006, up 33% over $0.45 for the same period in 2005. Net income including discontinued operations increased more than 26% to $7.31 million and $0.62 per diluted share from $5.79 million and $0.49 reported during the first three quarters of 2005. Further comparisons made herein are presented on a continuing operations basis and do not include discontinued operations related to the December 2005 sale of the merchant bankcard processing business segment.

TIB Financial also reported total assets of $1.26 billion as of September 30, 2006, representing 2% asset growth since June 30, 2006 and 19% asset growth from $1.05 billion as of September 30, 2005. Total loans increased 3% to $1.04 billion at September 30, 2006 compared with $1.00 billion at June 30, 2006 and 26% compared to $826.28 million a year ago. Total deposits increased to $972.07 million as of September 30, 2006, compared to $913.35 million as of September 30, 2005. Total deposits and non-interest bearing deposits decreased by $47.22 million and $20.37 million, or 5% and 12%, respectively, from the second quarter of 2006.

"We are a growth-oriented commercial banking company primarily focused on making loans and building relationships with small businesses and middle- market customers in the best markets in the southeastern U.S.," said Edward V. Lett, Chief Executive Officer and President. "Executing on our strategy produced strong loan growth of 26% over last year's third quarter."

"The rate environment continues to be the dominant force affecting our industry and our main challenge is the same industry-wide challenge of funding the growth of our loan portfolios. Our deposit operations during the third quarter reflected a combination of factors including very competitive local pricing and a lower level of public funds deposit balances around the September 30th fiscal yearend of many of our municipal and government agency customers. The third quarter is the slowest in the south Florida economic cycle with much lower seasonal population and related business activity," according to Lett.

"Our expectation is that our recent record high growth rates will naturally moderate as our balance sheet continues to grow. However, our business model is resilient and we firmly believe our small business and commercial middle-market segments will continue to show above-average growth, thus providing us with above-average opportunities to excel."

"We are simply going to work harder to support our balanced funding strategy and to maintain a reasonable net interest margin. Our current product and delivery advantages are adding considerably to TIB's local market appeal. We are providing real time, fully-imaged item processing, comprehensive internet capabilities, a complete corporate cash management product suite and remote deposit capture -- all of which fill a void in the middle-market commercial arena," Lett said.

The increase in net income from continuing operations for the third quarter of 2006 over the same period a year ago resulted primarily from a 17% increase in net interest income to $11.86 million in the current quarter compared to $10.09 million a year ago. The tax equivalent net interest margin of 4.11% for the three months ended September 30, 2006 contracted in comparison with the 4.30% and 4.37% net interest margins reported during the second quarter of 2006 and third quarter of 2005, respectively. The sequential decline in our net interest margin reflects challenging competitive and interest rate environments consistent with industry-wide trends, seasonal outflows of individual and commercial account balances and the draw down of government deposits at the end of their fiscal year.

Non-interest income, which includes service charges, real estate fees and other operating income, totaled $1.63 million for the third quarter of 2006, representing a 5% increase from the third quarter of 2005. This increase is primarily attributable to an increase in service charges on deposit accounts and a higher volume of residential mortgage loans originated and sold.

The Company continues its investment in growth and expansion balanced by cost containment which resulted in non-interest expense for the third quarter of 2006 of $9.00 million, an increase of 10% compared to $8.19 million for the third quarter of 2005. This increase reflects our continued investment in the people, systems and facilities which contribute to the momentum of our asset and revenue growth. The increase in non-interest expense is primarily attributable to a 10% increase in personnel costs coupled with an 8% increase in other expenses. Other expenses include a charitable contribution of approximately $135,000 expressing our commitment to and reinvestment in the community by funding the construction of affordable local housing. The higher personnel costs include approximately $105,000, or $0.01 per diluted share, of stock-based compensation expense recorded subsequent to the adoption of SFAS No. 123(R) on January 1, 2006 and pursuant to restricted stock awards.

Two major factors contributed to TIB Financial Corp.'s higher effective income tax rate of 36% for the quarter ended September 30, 2006 as compared to 35% for the third quarter of 2005. The primary factor is the higher overall level of pre-tax income from continuing operations resulting in a higher statutory tax rate. In addition, the lower proportion of tax free interest income to pre-tax income results in the provision for income taxes approaching statutory rates. Offsetting these factors during the third quarter was the recognition of a state tax credit related to the Company's funding of affordable housing construction costs for a local charitable organization.

Credit quality remained solid during the third quarter of 2006. As of September 30, 2006, the allowance for loan losses totaled $8.79 million, or 0.85% of total loans and 517% of non-performing loans. These figures compare with 0.87% and 1,345%, respectively, as of September 30, 2005. Annualized net charge-offs represented 0.12% of average loans for the quarter ended September 30, 2006, and 0.15% for the quarter ended September 30, 2005. The provision for loan losses increased by 50% as compared to the third quarter of 2005. The increase from the prior year third quarter is due principally to the growth and change in composition of the loan portfolio coupled with increased quantitative economic risk factors employed in estimating the allowance. These factors were increased during the second quarter of 2006.

During the third quarter of 2006, the Board of Directors of TIB Financial Corp. declared a quarterly cash dividend of $0.05875 per share on its common stock. The cash dividend was paid on October 10, 2006 to all TIB Financial Corp. common shareholders of record as of September 30, 2006. This dividend, when annualized, represents $0.235 per share.

About TIB Financial Corp.

Headquartered in Naples, Florida, TIB Financial Corp. is a growth-oriented financial services company with approximately $1.3 billion in total assets and 16 full-service banking offices throughout the Florida Keys, Homestead, Naples, Bonita Springs and Fort Myers.

TIB Financial Corp., through its wholly-owned subsidiary, TIB Bank, serves the personal and commercial banking needs of local residents and businesses in their market areas. The Bank's experienced bankers are local community leaders, who focus on a relationship-based approach built around anticipating specific customer needs, providing sound advice and making timely decisions. To learn more about TIB Bank, visit http://www.tibbank.com.

Copies of recent news releases, SEC filings, price quotes, stock charts and other valuable information may be found on TIB's investor relations site at http://www.tibfinancialcorp.com. For more information, contact Edward V. Lett, Chief Executive Officer and President at (239) 263-3344, or Stephen J. Gilhooly, Executive Vice President and Chief Financial Officer, at (239) 659-5876.

Except for historical information contained herein, the statements made in this press release constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements involve certain risks and uncertainties, including statements regarding the Company's strategic direction, prospects and future results. Certain factors, including those outside the Company's control, may cause actual results to differ materially from those in the "forward-looking" statements, including economic and other conditions in the markets in which the Company operates; risks associated with acquisitions, competition, seasonality and the other risks discussed in our filings with the Securities and Exchange Commission, which discussions are incorporated in this press release by reference.

SUPPLEMENTAL FINANCIAL DATA IS ATTACHED

TIB Financial Corp. and Subsidiaries

Unaudited Consolidated Statements of Income

For the Quarter Ended

(in thousands, except

per share data) September June March December September

30, 30, 31, 31, 30,

2006 2006 2006 2005 2005

Interest and dividend

income $22,293 $20,822 $18,879 $17,360 $15,503

Interest expense 10,433 8,873 7,397 6,574 5,409

Net interest income 11,860 11,949 11,482 10,786 10,094

Provision for loan losses 670 982 554 649 448

Non-interest income:

Service charges on

deposit accounts 650 576 556 584 601

Investment securities

gains, net - - - - 1

Fees on mortgage

loans sold 499 357 425 345 461

Other income 479 611 469 460 491

Total non-interest income 1,628 1,544 1,450 1,389 1,554

Non-interest expense:

Salaries & employee

benefits 4,982 4,909 4,948 4,725 4,529

Net occupancy expense 1,545 1,503 1,482 1,507 1,380

Other expense 2,471 2,342 2,143 2,349 2,282

Total non-interest expense 8,998 8,754 8,573 8,581 8,191

Income before income tax

expense 3,820 3,757 3,805 2,945 3,009

Income tax expense 1,383 1,428 1,442 1,047 1,060

Income from continuing

operations 2,437 2,329 2,363 1,898 1,949

Income from discontinued

operations, net of tax 15 167 - 4,141 105

NET INCOME $2,452 $2,496 $2,363 $6,039 $2,054

BASIC EARNINGS PER SHARE:

Continuing operations $0.21 $0.20 $0.20 $0.17 $0.17

Discontinued operations - 0.02 - 0.36 0.01

Basic earnings per share $0.21 $0.22 $0.20 $0.53 $0.18

DILUTED EARNINGS PER SHARE:

Continuing operations $0.21 $0.20 $0.20 $0.16 $0.16

Discontinued operations - 0.01 - 0.35 0.01

Diluted earnings

per share $0.21 $0.21 $0.20 $0.51 $0.17

Selected Financial Data (Dollars in thousands)

Selected Ratios and As of or For the Quarter Ended

Statistics

September June March December September

30, 30, 31, 31, 30,

2006 2006 2006 2005 2005

Real estate

mortgage loans:

Commercial $535,077 $508,392 $467,011 $451,969 $428,314

Residential 81,262 82,591 76,809 76,003 73,474

Farmland 24,201 25,680 7,005 4,660 3,991

Construction and

vacant land 148,115 150,604 155,939 125,207 106,015

Commercial and

agricultural loans 85,666 82,127 81,871 80,055 74,202

Indirect auto

dealer loans 136,409 126,469 120,648 118,018 113,639

Home equity loans 17,264 17,771 17,034 17,232 17,220

Other consumer

loans 9,738 9,147 9,124 9,228 9,428

Total loans $1,037,732 $1,002,781 $935,441 $882,372 $826,283

Gross loans $1,039,390 $1,004,307 $937,092 $884,024 $828,081

Net loan

charge-offs $306 $399 $257 $256 $308

Allowance for

loan losses $8,790 $8,426 $7,843 $7,546 $7,153

Allowance for loan

losses/total loans 0.85% 0.84% 0.84% 0.86% 0.87%

Non-performing

loans $1,701 $953 $1,374 $956 $532

Allowance for loan

losses/non-performing

loans 517% 884% 571% 789% 1,345%

Non performing loans/

gross loans 0.16% 0.09% 0.15% 0.11% 0.06%

Annualized net

charge-offs/average

loans 0.12% 0.16% 0.11% 0.12% 0.15%

Total interest-

earning assets $1,172,110 $1,151,563 $1,102,274 $1,000,072 $984,994

Other real

estate owned $- $- $- $190 $190

Other repossessed

assets $1,502 $1,222 $1,437 $962 $858

Intangibles, net

of accumulated

amortization $884 $956 $1,028 $1,100 $1,172

Interest bearing

deposits:

NOW accounts $119,899 $140,131 $140,669 $104,641 $88,570

Money market 162,713 172,328 182,951 167,072 164,007

Savings deposits 47,309 52,637 48,649 47,091 47,638

Time deposits 486,243 477,921 451,717 431,804 446,309

Non-interest bearing

deposits 155,902 176,271 209,040 169,816 166,821

Total deposits $972,066 $1,019,288 $1,033,026 $920,424 $913,345

Tax equivalent net

interest margin 4.11% 4.30% 4.45% 4.37% 4.37%

Return on average

assets 0.79% 0.78% 0.85% 0.71% 0.78%

Return on average

equity 11.77% 11.69% 12.18% 10.25% 10.87%

Non-interest

expense/tax

equivalent net

interest income

and non-interest

income 66.27% 64.44% 65.86% 70.01% 69.84%

Average diluted

shares 11,889,512 11,860,068 11,839,034 11,858,992 11,829,080

End of quarter

shares

outstanding 11,712,812 11,682,840 11,668,076 11,585,196 11,523,492

Total equity $83,961 $80,526 $79,677 $77,524 $72,011

Book value per

common share $7.17 $6.89 $6.83 $6.69 $6.25

Total assets $1,257,480 $1,232,022 $1,186,838 $1,076,070 $1,053,894

Quarterly average balances and yields (Dollars in thousands)

Quarter Ended Quarter Ended

September 30, 2006 September 30, 2005

Average Average

Balances Interest** Yield** Balances Interest** Yield**

Loans $1,015,215 $20,613 8.06% $795,970 $14,222 7.09%

Investments 125,614 1,598 5.05% 87,109 1,006 4.58%

Interest bearing

deposits 425 6 5.60% 246 2 3.23%

Federal Home

Loan Bank stock 5,888 87 5.86% 2,779 23 3.28%

Fed funds sold 5,943 78 5.21% 38,314 330 3.42%

Total interest

earning

assets 1,153,085 22,382 7.70% 924,418 15,583 6.69%

Non-interest

earning assets 78,143 70,746

Total assets $1,231,228 $995,164

Interest bearing

liabilities:

NOW $127,480 $929 2.89% $86,175 $176 0.81%

Money market 163,015 1,570 3.82% 168,099 1,038 2.45%

Savings 49,525 94 0.75% 48,364 63 0.52%

Time 478,139 5,676 4.71% 376,766 3,397 3.58%

Total

interest-

bearing

deposits 818,159 8,269 4.01% 679,404 4,674 2.73%

Short-term

borrowings

and FHLB

advances 108,050 1,384 5.08% 38,226 336 3.49%

Long-term

borrowings 36,794 780 8.41% 17,000 399 9.31%

Total interest

bearing

liabilities 963,003 10,433 4.30% 734,630 5,409 2.92%

Non-interest

bearing

deposits 168,465 175,674

Other

liabilities 17,631 13,697

Shareholders'

equity 82,129 71,163

Total

liabilities

and

shareholders'

equity $1,231,228 $995,164

Net interest

income and

spread $11,949 3.40% $10,174 3.77%

Net interest

margin 4.11% 4.37%

** Presented on a fully tax equivalent basis.

Year to date average balances and yields (Dollars in thousands)

Nine Months Ended Nine Months Ended

September 30, 2006 September 30, 2005

Average Average

Balances Interest** Yield** Balances Interest** Yield**

Loans $966,898 $56,955 7.88% $743,018 $38,468 6.92%

Investments 121,587 4,526 4.98% 83,021 2,829 4.56%

Interest

bearing

deposits 455 17 5.00% 390 8 2.68%

Federal

Home Loan

Bank stock 4,157 177 5.72% 2,706 81 4.00%

Fed funds sold 16,724 584 4.67% 41,906 928 2.96%

Total interest

earning

assets 1,109,821 62,259 7.50% 871,041 42,314 6.49%

Non-interest

earning

assets 78,150 72,826

Total assets $1,187,971 $943,867

Interest

bearing

liabilities:

NOW $135,670 $2,616 2.58% $90,598 $561 0.83%

Money market 167,918 4,330 3.45% 167,428 2,597 2.07%

Savings 50,019 260 0.69% 48,175 178 0.49%

Time 464,049 15,451 4.45% 328,179 8,334 3.39%

Total

interest-

bearing

deposits 817,656 22,657 3.70% 634,380 11,670 2.46%

Short-term

borrowings

and FHLB

advances 69,029 2,412 4.67% 39,688 887 2.98%

Long-term

borrowings 24,256 1,634 9.01% 17,069 1,173 9.19%

Total interest

bearing

liabilities 910,941 26,703 3.92% 691,137 13,730 2.66%

Non-interest

bearing

deposits 179,569 171,108

Other

liabilities 17,189 12,019

Shareholders'

equity 80,272 69,603

Total

liabilities

and

shareholders'

equity $1,187,971 $943,867

Net interest

income and

spread $35,556 3.58% $28,584 3.83%

Net interest

margin 4.28% 4.39%

** Presented on a fully tax equivalent basis.

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