TIB Financial (TIBB) 8-K Tib Financial Corp. Reports Third Quarter Net Income

FOR IMMEDIATE RELEASE

TIB FINANCIAL CORP. REPORTS THIRD QUARTER NET INCOME

AND STRENGTHENING OF ITS RESERVE FOR LOAN LOSSES

NAPLES, Fla. October 24, 2007 – TIB Financial Corp. (NASDAQ: TIBB), parent of TIB Bank and The Bank of Venice, leading community banks serving the greater Naples, Bonita Springs-Fort Myers area, Highlands County, South Miami-Dade County, the Florida Keys and Sarasota County, today reported net income from continuing operations for the quarter ended September 30, 2007 of $494,000 compared to $1.71 million reported for the second quarter of 2007 and $2.44 million for the third quarter of 2006. On a per diluted share basis, earnings from continuing operations were $0.04 for the third quarter of 2007, compared to $0.14 for the second quarter of 2007 and $0.21 per share for the third quarter of 2006.

In response to slowing economic activity and continued softness in residential real estate in its markets, which resulted in an increase in nonperforming loans, the Company strengthened its reserve for loan losses by recording a provision for loan losses of $2.4 million during the current period compared to provisions of $632,000 in the prior quarter and $670,000 in the year ago quarter. The reserve for loan losses increased to $11.61 million, or 1.05% of loans at September 30, 2007.

The higher provision for loan losses and the impact of income not recognized on nonperforming loans compared to the prior quarter reduced net income during the third quarter by approximately $1.4 million, or $0.11 per diluted share. Partially offsetting this effect was an after tax gain of approximately $449,000, or $0.03 per diluted share from the planned sale of an office building previously utilized in the Company’s operations.

TIB Financial also reported total assets of $1.40 billion as of September 30, 2007, representing 6% asset growth from December 31, 2006 and 11% asset growth from $1.26 billion as of September 30, 2006. Total loans increased 6% to $1.10 billion compared to $1.04 billion a year ago, and increased 4% compared to $1.06 billion at December 31, 2006. Total deposits of $1.02 billion as of September 30, 2007 represent an increase of 5%, or $47.4 million, from $972.1 million a year ago while decreasing $10.0 million from December 31, 2006.

TIB Financial’s results of operations during 2007 include the operations of The Bank of Venice subsequent to its acquisition on April 30, 2007. As of September 30, 2007, the effect of the acquisition of The Bank of Venice increased total assets by $74.7 million, total loans by $56.8 million and total deposits by $53.8 million.

“While we are certainly disappointed with our third quarter results, we are positive in our outlook on the future of TIB. We have been closely monitoring asset quality throughout the loan portfolios since this turbulent period began. In anticipation of possible increases  in nonperforming assets and delinquencies, our management team has been taking appropriate action all along --through analysis of our exposures, enhancement of collateral positions where possible and implementation of workout solutions,” said Edward V. Lett, Chief Executive Officer and President .

“Of our current nonperforming loans, the majority are comprised of just a few

relationships. We believe our strengthening of the reserve for loan losses reflects the overall heightened risk and uncertainty in our operating environment.”

“Economic activity in our regional and local markets continues to slow as the much softer residential real estate market penetrates other facets of the economy. With the incremental operating challenges presented by a difficult interest rate environment and slowing economic activity, we anticipate increased opportunities for our well-positioned financial institution. Our experienced management team, time-tested risk management policies and procedures, and technological advantages and related infrastructure should enable us to weather these challenges and allow us to capitalize on opportunities for improved returns.

“Contemporaneously, we continue to focus on cost containment, disciplined loan origination and continued active management of our cost of funds. Our containment activities include the reduction of leased office space, the sale of an office building no longer necessary for our operations and rightsizing the organization for our anticipated near term level of growth. We have addressed the rightsizing through a significant reduction in staffing, principally through attrition since the beginning of the year, and reduction of controllable operating expenses. During this period of slowed economic growth we are maintaining our disciplined underwriting standards and prudent risk assessment practices. Our efforts to manage our current and future funding costs by cultivating our more profitable and less rate sensitive multi-product customer relationships are apparent; however, the cost of this is a measured reduction of rate sensitive CD deposits and current replacement with lower cost wholesale funding,” said Lett.

Detailed Financial Discussion

The decrease in net income from continuing operations for the third quarter of 2007 compared to the third quarter of 2006 was primarily due to the increased provision for loan losses, higher operating expenses and a lower net interest margin.

Our increased provision for loan losses results from the continued contraction of residential real estate activity and the ripple effect on our local economies, as well as the increase in our nonperforming loans and delinquencies. Accordingly, we elevated certain quantitative and qualitative factors used in estimating our allowance for loan losses. Net charge offs increased to $721,000 during the third quarter compared to $394,000 during the second quarter of 2007. Charge offs in the second quarter were reduced by a recovery of approximately $175,000 resulting from the sale of previously charged-off indirect loan balances to a third-party collector. Charge-offs in the current quarter are comprised principally of indirect auto loans. As of September 30, 2007, non-performing loans were $16.57 million, or 1.5% of loans. The allowance for loan losses increased to $11.61 million, or 1.05% of total loans, reflecting the excess of our provision for loan losses over net charge-offs for the period. Net charge-offs during the quarter represented 0.26% of average loans, an increase compared to 0.15% and 0.12% for the prior quarter and the third quarter of last year, respectively.

The tax equivalent net interest margin of 3.52% for the three months ended September 30, 2007 contracted in comparison with the 3.73% net interest margin reported during the second quarter of 2007. The contraction and the concomitant decrease in net interest income were primarily due to the increase in non-performing loans and the nonrecognition of interest income on these loans. Additionally, the net interest margin continues to be impacted by the challenging interest rate environment and highly competitive deposit pricing.

Non-interest income, which includes service charges, real estate fees and other operating income, totaled $2.14 million for the third quarter of 2007, increasing 33% from the prior quarter and 32% from the third quarter of 2006.  The increase is attributable to a $702,000 gain recognized during the third quarter of 2007 from the disposition of an office building previously used in our operations.

Operating costs increased during the third quarter of 2007 as non-interest expense rose 15% to $10.36 million compared to $9.00 million for the third quarter of 2006. This increase includes $663,000 of operating costs for The Bank of Venice. Due to the first quarter opening of our new TIB Bank headquarters and branch in Naples, Florida along with higher insurance and other occupancy costs and annual salary adjustments to reward and retain key employees, non-interest expense increased approximately 8% compared to the third quarter of last year. Compared to the previous quarter, excluding $401,000 of operating expenses associated with The Bank of Venice, non-interest expense declined slightly.

During the third quarter of 2007, the Board of Directors of TIB Financial Corp. declared a quarterly cash dividend of $0.06 per share on its common stock.  The cash dividend was paid on October 10, 2007 to all TIB Financial Corp. common shareholders of record as of September 30, 2007.  This dividend, when annualized, represents $0.24 per share.

In August, the Board also authorized the repurchase of up to 400,000 sharesof the Company's outstanding common stock. No shares were purchased during the third quarter.

About TIB Financial Corp.

Headquartered in Naples, Florida, TIB Financial Corp. is a growth-oriented financial services company with approximately $1.4 billion in total assets and 19 full-service banking offices throughout the Florida Keys, Homestead, Naples, Bonita Springs, Fort Myers, Venice and Sebring.

TIB Financial Corp., through its wholly owned subsidiaries, TIB Bank and The Bank of Venice, serves the personal and commercial banking needs of local residents and businesses in its market areas. The banks’ 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 and The Bank of Venice, visit www.tibbank.com and www.bankofvenice.com, respectively.

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 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.

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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

(Dollars in thousands, except per share data)

	For the Quarter Ended
	September 30, 2007		June 30, 2007		March 31, 2007		December 31, 2006		September 30, 2006
Interest and dividend income	$	23,549	$	23,950	$	23,379	$	23,240	$	22,293
Interest expense		12,263		12,068		11,877		11,468		10,433
NET INTEREST INCOME		11,286		11,882		11,502		11,772		11,860
Provision for loan losses		2,385		632		472		1,285		670
NON-INTEREST INCOME:
Service charges on deposit accounts		661		657		643		675		650
Fees on mortgage loans sold		287		406		533		318		499
Other income		1,195		547		703		660		479
Total non-interest income		2,143		1,610		1,879		1,653		1,628
NON-INTEREST EXPENSE:
Salaries & employee benefits		5,619		5,698		5,504		5,366		4,982
Net occupancy expense		2,041		1,977		1,909		1,590		1,545
Other expense		2,702		2,513		2,563		2,552		2,471
Total non-interest expense		10,362		10,188		9,976		9,508		8,998
Income before income tax expense		682		2,672		2,933		2,632		3,820
Income tax expense		188		960		1,062		768		1,383
Income from continuing operations		494		1,712		1,871		1,864		2,437
Income from discontinued operations, net of tax		-		-		-		72		15
NET INCOME	$	494	$	1,712	$	1,871	$	1,936	$	2,452
BASIC EARNINGS PER SHARE:
Continuing operations	$	0.04	$	0.14	$	0.16	$	0.16	$	0.21
Discontinued operations		-		-		-		0.01		-
Basic earnings per share	$	0.04	$	0.14	$	0.16	$	0.17	$	0.21
DILUTED EARNINGS PER SHARE:
Continuing operations	$	0.04	$	0.14	$	0.16	$	0.16	$	0.21
Discontinued operations		-		-		-		-		-
Diluted earnings per share	$	0.04	$	0.14	$	0.16	$	0.16	$	0.21

TIB FINANCIAL CORP. AND SUBSIDIARIES

SELECTED FINANCIAL DATA

(Dollars in thousands, except per share data)

	For the Quarter Ended
	September 30, 2007			June 30, 2007			March 31, 2007			December 31, 2006			September 30, 2006
Real estate mortgage loans:
Commercial	$	604,286		$	580,506		$	561,267		$	546,276		$	535,077
Residential		110,055			109,034			80,188			82,243			81,262
Farmland		10,245			8,991			9,197			24,210			24,201
Construction and vacant land		150,808			153,917			155,421			157,672			148,115
Commercial and agricultural loans		70,847			73,426			71,382			84,905			85,666
Indirect auto dealer loans		127,219			131,078			136,892			141,552			136,409
Home equity loans		18,425			17,297			17,694			17,199			17,264
Other consumer loans		12,080			11,356			9,375			9,795			9,738
Total loans	$	1,103,965		$	1,085,605		$	1,041,416		$	1,063,852		$	1,037,732
Gross loans	$	1,105,597		$	1,087,264		$	1,042,991		$	1,065,468		$	1,039,390
Net loan charge-offs	$	721		$	394		$	1,009		$	494		$	306
Allowance for loan losses	$	11,613		$	9,949		$	9,044		$	9,581		$	8,790
Allowance for loan losses/total loans		1.05	%		0.92	%		0.87	%		0.90	%		0.85	%
Non-performing loans1	$	16,565		$	4,401		$	3,046		$	4,223		$	1,701
Allowance for loan losses/non-performing loans		70	%		226	%		297	%		227	%		517	%
Non performing loans/gross loans		1.50	%		0.40	%		0.29	%		0.40	%		0.16	%
Annualized net charge-offs/average loans		0.26	%		0.15	%		0.39	%		0.19	%		0.12	%
Total interest-earning assets	$	1,305,795		$	1,265,143		$	1,268,523		$	1,233,539		$	1,172,110
Other real estate owned	$	186		$	-		$	-		$	-		$	-
Other repossessed assets	$	2,773		$	2,370		$	2,341		$	1,958		$	1,502
Goodwill and intangibles, net of accumulated amortization	$	7,448		$	7,409		$	847		$	919		$	990
Interest-bearing deposits:
NOW accounts	$	136,892		$	151,359		$	145,216		$	132,395		$	119,899
Money market		185,789			198,760			188,220			164,607			162,713
Savings deposits		55,675			60,323			56,392			45,076			47,309
Time deposits		484,600			460,461			483,889			527,999			486,243
Non-interest bearing deposits		156,461			173,196			183,846			159,380			155,902
Total deposits	$	1,019,417		$	1,044,099		$	1,057,563		$	1,029,457		$	972,066
Tax equivalent net interest margin		3.52	%		3.73	%		3.74	%		3.90	%		4.11	%
Return on average assets		0.14	%		0.50	%		0.57	%		0.58	%		0.79	%
Return on average equity		1.93	%		7.03	%		8.75	%		8.72	%		11.77	%
Non-interest expense/tax equivalent net interest income and non-interest income		76.69	%		75.06	%		74.08	%		70.41	%		66.27	%
Average diluted shares		12,902,212			12,598,658			11,944,440			11,932,887			11,889,512
End of quarter shares outstanding		12,832,816			12,821,216			11,836,027			11,720,527			11,712,812
Total equity	$	100,651		$	102,270		$	88,125		$	85,862		$	83,961
Book value per common share	$	7.84		$	7.98		$	7.45		$	7.33		$	7.17
Total assets	$	1,395,547		$	1,358,773		$	1,351,414		$	1,319,093		$	1,257,480

______ 

¹ Non-performing loans as of September 30, 2007, June 30, 2007, March 31, 2007 and December 31, 2006 include a loan of approximately $1.64 million which is fully guaranteed as to principal and interest by a U.S. government agency. We discontinued accruing interest on this loan during the fourth quarter of 2006 pursuant to a ruling made by the agency.

TIB FINANCIAL CORP. AND SUBSIDIARIES

QUARTERLY AVERAGE BALANCES AND YIELDS

(Dollars in thousands)

	Quarter Ended September 30, 2007							Quarter Ended September 30, 2006
	Average Balances		Interest*		Yield*			Average Balances		Interest*		Yield*
Loans	$	1,095,786	$	21,175		7.67	%	$	1,015,215	$	20,613		8.06	%
Investments		150,353		2,003		5.29	%		125,614		1,598		5.05	%
Interest bearing deposits		251		3		4.74	%		425		6		5.60	%
Federal Home Loan Bank stock		8,651		131		6.01	%		5,888		87		5.86	%
Fed funds sold		24,466		319		5.17	%		5,943		78		5.21	%
Total interest earning assets		1,279,507		23,631		7.33	%		1,153,085		22,382		7.70	%
Non-interest earning assets		90,038							78,143
Total assets	$	1,369,545						$	1,231,228
Interest bearing liabilities:
NOW	$	151,286	$	1,290		3.38	%	$	127,480	$	929		2.89	%
Money market		199,013		2,136		4.26	%		163,015		1,570		3.82	%
Savings		57,724		275		1.89	%		49,525		94		0.75	%
Time		457,097		5,700		4.95	%		478,139		5,676		4.71	%
Total interest-bearing deposits		865,120		9,401		4.31	%		818,159		8,269		4.01	%
Short-term borrowings and FHLB advances		183,382		2,135		4.62	%		108,050		1,384		5.08	%
Long-term borrowings		37,129		727		7.77	%		36,794		780		8.41	%
Total interest bearing liabilities		1,085,631		12,263		4.48	%		963,003		10,433		4.30	%
Non-interest bearing deposits		163,505							168,465
Other liabilities		19,120							17,631
Shareholders’ equity		101,289							82,129
Total liabilities and shareholders’ equity	$	1,369,545						$	1,231,228
Net interest income and spread			$	11,368		2.85	%			$	11,949		3.40	%
Net interest margin						3.52	%						4.11	%
_______ * Presented on a fully tax equivalent basis

TIB FINANCIAL CORP. AND SUBSIDIARIES

YEAR TO DATE AVERAGE BALANCES AND YIELDS

(Dollars in thousands)

	Nine Months Ended September 30, 2007							Nine Months Ended September 30, 2006
	Average Balances		Interest*		Yield*			Average Balances		Interest*		Yield*
Loans	$	1,080,188	$	63,532		7.86	%	$	966,898	$	56,955		7.88	%
Investments		141,958		5,489		5.17	%		121,587		4,526		4.98	%
Interest bearing deposits		393		15		5.10	%		455		17		5.00	%
Federal Home Loan Bank stock		8,220		367		5.97	%		4,157		177		5.72	%
Fed funds sold		43,892		1,724		5.25	%		16,724		584		4.67	%
Total interest earning assets		1,274,651		71,127		7.46	%		1,109,821		62,259		7.50	%
Non-interest earning assets		86,961							78,150
Total assets	$	1,361,612						$	1,187,971
Interest bearing liabilities:
NOW	$	153,503		3,870		3.37	%	$	135,670		2,616		2.58	%
Money market		190,660		6,018		4.22	%		167,918		4,330		3.45	%
Savings		55,145		688		1.67	%		50,019		260		0.69	%
Time		481,933		17,968		4.98	%		464,049		15,451		4.45	%
Total interest-bearing deposits		881,241		28,544		4.33	%		817,656		22,657		3.70	%
Short-term borrowings and FHLB advances		163,582		5,579		4.56	%		69,029		2,412		4.67	%
Long-term borrowings		34,406		2,085		8.10	%		24,256		1,634		9.01	%
Total interest bearing liabilities		1,079,229		36,208		4.49	%		910,941		26,703		3.92	%
Non-interest bearing deposits		167,642							179,569
Other liabilities		19,472							17,189
Shareholders’ equity		95,269							80,272
Total liabilities and shareholders’ equity	$	1,361,612						$	1,187,971
Net interest income and spread			$	34,919		2.97	%			$	35,556		3.58	%
Net interest margin						3.66	%						4.28	%
_______ * Presented on a fully tax equivalent basis

TIB FINANCIAL CORP. AND SUBSIDIARIES

NONACCRUAL LOAN SUMMARY AS OF SEPTEMBER 30, 2007

(Dollars in thousands)

Loan Type	Number of Loans		Outstanding Balance
Residential		6	$	4,709
Commercial and agricultural		4		965
Commercial real estate		4		2,282
Residential land development		1		3,921
Participations in residential loan pools		9		1,314
Government guaranteed loan		1		1,641
Indirect auto-dealer loans		134		1,733
			$	16,565