TIB Financial (TIBB) 8-K Results of Operations and Financial Condition

FOR IMMEDIATE RELEASE

TIB FINANCIAL CORP. REPORTS FIRST QUARTER RESULTS;

BOARD CHAIRMAN LONGE TO ASSUME CEO RESPONSIBILITIES

NAPLES, Fla. April 24, 2008 – TIB Financial Corp. (NASDAQ: TIBB), parent company of TIB Bank, The Bank of Venice and Naples Capital Advisors, leading financial services providers serving the greater Naples, Bonita Springs and Fort Myers area, Highlands County, South Miami-Dade County, the Florida Keys and Sarasota County, today reported a net loss for the three months ended March 31, 2008 of $1.4 million compared to net income of $1.9 million for the first quarter of 2007. On a per share basis, the net loss was $0.11 for the 2008 quarter, compared to net income of $0.16 for the comparable 2007 quarter. As discussed in greater detail below, we are restructuring our indirect lending operations and during the first quarter we accelerated the resolution of nonperforming auto loans and the disposition of repossessed vehicles which resulted in: 1) net charge-offs of $1.7 million; 2) write-downs of $1.2 million of repossessed vehicles and related assets; and 3) other expenses of $0.5 million.

The company also reported that Chief Executive Officer’s responsibilities at the parent company will shift to Thomas J. Longe, Chairman of the Board, from Edward V. Lett, the Company’s current Chief Executive Officer following the upcoming April 29 annual meeting of shareholders. “This move will enable me to focus more time and energy on recovering from chemotherapy while continuing to participate in day-to-day activities at TIB,” said Lett, who will become Vice Chairman of the Company while retaining his title of President.

“TIB has deep management strength across the organization,” according to Longe. “As holding company CEO, I will continue to have daily support from Ed Lett and Chief Financial Officer Steve Gilhooly. Our subsidiaries are led by experienced Chief Executive Officers – Mike Carrigan, President and CEO of TIB Bank; Mack Wilcox, President and CEO of The Bank of Venice; and Michael Morris, President and CEO of Naples Capital Advisors. The respective companies each have strong senior management teams and we are quite confident the entire organization is well positioned to effectively execute our strategic objectives and daily tactics that are entirely focused on improving operating results and enhancing shareholder value. In the meantime, we all feel it is very important for Ed Lett to be able to slow down in order to spend more time on regaining his good health.”

Summarizing the first quarter’s results, Ed Lett said “while our results are disappointing, we have continued to proactively recognize issues when they arise and take appropriate and measured action relating to changes in credit risk in our portfolios. Increased delinquency and loan charge-offs significantly in excess of our historical experience arising from our concentration of indirect auto loans in southwest Florida, most specifically within the Fort Myers-Lee County area, has significantly impacted our financial performance. In response to this unfavorable development, we retained a nationally recognized financial services consulting firm to assist us in reviewing and evaluating our indirect auto lending operations. We have been working with this firm since the fourth quarter of 2007 and we are restructuring our management, lending, collections and vehicle disposition functions.”

In response to continued slowing economic activity and softening real estate values in our markets, the first quarter results include a provision for loan losses of $2.7 million, reflecting an increase in the reserve for loan losses to $15.9 million or 1.39% of loans at March 31, 2008.

TIB Financial also reported total assets of $1.51 billion as of March 31, 2008, representing 5% asset growth from December 31, 2007. Total loans increased 1% to $1.14 billion compared to $1.13 billion at December 31, 2007. Total deposits of $1.12 billion as of March 31, 2008 represent an increase of 7%, or $71.0 million, from $1.05 billion at December 31, 2007.

During the quarter we completed the acquisition of Naples Capital Advisors, Inc., introduced our integrated private banking and wealth management financial services, and applied for trust powers. We also completed a private placement of $10.1 million of our common stock.

TIB Financial’s results of operations during 2008 include the operations of The Bank of Venice and Naples Capital Advisors subsequent to their acquisitions on April 30, 2007 and January 2, 2008, respectively.

Detailed Financial Discussion

The net loss for the first quarter of 2008 compared to net income during first quarter of 2007 was due to the increased provision for loan losses, higher non-interest expenses, lower net interest income, a lower net interest margin and lower non-interest income excluding net gains on investment securities.

Our increased provision for loan losses results from the continued increase in our loan delinquencies and loan loss experience, reflecting the slowing economic activity in our market area. Appropriately, we again elevated certain quantitative and qualitative factors used in estimating our allowance for loan losses. Net charge-offs for the first quarter were $1.8 million and are comprised principally of $1.7 million of indirect auto loans. As of March 31, 2008, non-performing loans were $26.9 million or 2.4% of loans, an increase from the $16.1 million and 1.4% of loans as of December 31, 2007. As discussed last quarter and in our Form 10K for 2007, during February 2008, a $13.5 million commercial real estate loan financing a 24 acre, 7 developed commercial lot real estate project matured and was placed on non-accrual. The owners of the project currently do not have adequate financial resources to service the debt. The borrowers continue to market the property for sale and TIB Bank is pursuing collection of the loan.

The allowance for loan losses increased to $15.9 million, or 1.39% 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 0.63% of average loans on an annualized basis compared to 1.00% and 0.39% for the prior quarter and the first quarter of last year, respectively.

The tax equivalent net interest margin of 3.13% for the three months ended March 31, 2008 contracted in comparison with the 3.44% net interest margin reported during the fourth quarter of 2007, due to the higher level of nonperforming loans and assets and  a highly challenging interest rate environment with the prime rate declining 200 basis points during the quarter. Due to a high level of demand for liquidity in the global financial system and competitive pressures in our local markets, we have been unable to reduce the cost of our CDs and other interest rate sensitive funding sources as quickly and to the same magnitude as reductions in asset yields during the last two quarters. The contraction from 3.74% earned in the first quarter of 2007 was primarily due to the higher level of non-performing assets, the inclusion of the results of The Bank of Venice and the continued impact of the challenging interest rate environment and highly competitive deposit pricing.

Non-interest income was $2.5 million in the first quarter compared to $1.9 million in the first quarter last year. The increase is due primarily to gains recognized from the sale of investment securities, partially offset by lower fees on mortgage loans sold due to lower sales of residential loans in the secondary market and a greater proportion of our residential mortgage loan production being held in our portfolio.

During the first quarter of 2008, non-interest expense rose 31% to $13.0 million compared to $10.0 million for the first quarter of 2007. The increase reflects $1.7 million attributable to our indirect lending operation and its restructuring, $756,000 of operating costs for The Bank of Venice which was acquired April 30, 2007, $226,000 of valuation allowances recorded against other real estate owned and a $197,000 increase in FDIC deposit insurance.

During the first quarter of 2008, the Board of Directors of TIB Financial Corp. declared a quarterly cash dividend of $0.0625 per share on its common stock.  The cash dividend was paid on April 10, 2008 to all TIB Financial Corp. common shareholders of record as of March 31, 2008.  This dividend, when annualized, represents $0.25 per share. The Board of Directors will continue to evaluate the amount of our quarterly dividend and our dividend policy in light of current and expected trends in our financial performance and financial condition.

In August 2007, the Board authorized the repurchase of up to 400,000 sharesof the Company's outstanding common stock. The Company did not repurchase any shares during the first quarter of 2008.

About TIB Financial Corp.

Headquartered in Naples, Florida, TIB Financial Corp. is a growth-oriented financial services company with approximately $1.5 billion in total assets and 20 full-service banking offices throughout the Florida Keys, Homestead, Naples, Bonita Springs, Fort Myers, Venice and Sebring. TIB Financial Corp. is also the parent company of Naples Capital Advisors, Inc., a registered investment advisor with approximately $84 million of assets under advisement.

TIB Financial Corp., through its wholly owned subsidiaries, TIB Bank, The Bank of Venice and Naples Capital Advisors, Inc., serves the personal and commercial banking and investment management needs of local residents and businesses in its market areas. The companies’ experienced professionals 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, The Bank of Venice and Naples Capital Advisors, Inc., visit www.tibbank.com,  www.bankofvenice.com and www.naplescapitaladvisors.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 OPERATIONS

(Dollars in thousands, except per share data)

	For the Quarter Ended
	March 31, 2008			December 31, 2007			September 30, 2007		June 30, 2007		March 31, 2007
Interest and dividend income	$	22,922		$	23,863		$	23,549	$	23,950	$	23,379
Interest expense		12,066			12,513			12,263		12,068		11,877
NET INTEREST INCOME		10,856			11,350			11,286		11,882		11,502
Provision for loan losses		2,654			6,168			2,385		632		472
NON-INTEREST INCOME:
Service charges on deposit accounts		722			731			661		657		643
Fees on mortgage loans sold		232			220			287		406		533
Investment securities gain (loss), net		910			(5,660	)		-		-		-
Investment advisory fees		125			-			-		-		-
Other income		472			439			1,195		547		703
Total non-interest income		2,461			(4,270	)		2,143		1,610		1,879
NON-INTEREST EXPENSE:
Salaries & employee benefits		6,053			5,729			5,619		5,698		5,504
Net occupancy expense		2,014			2,052			2,041		1,977		1,909
Other expense		4,959			3,614			2,702		2,513		2,563
Total non-interest expense		13,026			11,395			10,362		10,188		9,976
Income (loss) before income taxes		(2,363	)		(10,483	)		682		2,672		2,933
Income tax expense (benefit)		(918	)		(3,985	)		188		960		1,062
NET INCOME (LOSS)	$	(1,445	)	$	(6,498	)	$	494	$	1,712	$	1,871
BASIC EARNINGS (LOSS) PER SHARE:	$	(0.11	)	$	(0.51	)	$	0.04	$	0.14	$	0.16
DILUTED EARNINGS (LOSS) PER SHARE:	$	(0.11	)	$	(0.51	)	$	0.04	$	0.14	$	0.16

TIB FINANCIAL CORP. AND SUBSIDIARIES

SELECTED FINANCIAL DATA

(Dollars in thousands, except per share data)

	For the Quarter Ended
	March 31, 2008			December 31, 2007			September 30, 2007			June 30, 2007			March 31, 2007
Real estate mortgage loans:
Commercial	$	624,557		$	612,084		$	604,286		$	580,506		$	561,267
Residential		128,191			112,138			110,055			109,034			80,188
Farmland		11,284			11,361			10,245			8,991			9,197
Construction and vacant land		159,377			168,595			150,808			153,917			155,421
Commercial and agricultural loans		70,170			72,076			70,847			73,426			71,382
Indirect auto dealer loans		112,163			117,439			127,219			131,078			136,892
Home equity loans		22,619			21,820			18,425			17,297			17,694
Other consumer loans		10,121			12,154			12,080			11,356			9,375
Total loans	$	1,138,482		$	1,127,667		$	1,103,965		$	1,085,605		$	1,041,416
Gross loans	$	1,139,993		$	1,129,156		$	1,105,597		$	1,087,264		$	1,042,991
Net loan charge-offs	$	1,771		$	2,808		$	721		$	394		$	1,009
Allowance for loan losses	$	15,856		$	14,973		$	11,613		$	9,949		$	9,044
Allowance for loan losses/total loans		1.39	%		1.32	%		1.05	%		0.92	%		0.87	%
Non-performing loans1	$	26,870		$	16,086		$	16,565		$	4,401		$	3,046
Allowance for loan losses/non-performing loans		59	%		93	%		70	%		226	%		297	%
Non performing loans/gross loans		2.36	%		1.42	%		1.50	%		0.40	%		0.29	%
Annualized net charge-offs/average loans		0.63	%		1.00	%		0.26	%		0.15	%		0.39	%
Total interest-earning assets	$	1,410,981		$	1,345,795		$	1,305,795		$	1,265,143		$	1,268,523
Other real estate owned	$	4,495		$	1,846		$	186		$	-		$	-
Other repossessed assets	$	1,964		$	3,136		$	2,773		$	2,370		$	2,341
Goodwill and intangibles, net of accumulated amortization	$	8,594		$	7,458		$	7,448		$	7,409		$	847
Interest-bearing deposits:
NOW accounts	$	180,610		$	161,878		$	136,892		$	151,359		$	145,216
Money market		180,207			176,900			185,789			198,760			188,220
Savings deposits		51,860			55,045			55,675			60,323			56,392
Time deposits		544,428			512,754			484,600			460,461			483,889
Non-interest bearing deposits		163,846			143,381			156,461			173,196			183,846
Total deposits	$	1,120,951		$	1,049,958		$	1,019,417		$	1,044,099		$	1,057,563
Tax equivalent net interest margin		3.13	%		3.44	%		3.52	%		3.73	%		3.74	%
Return (loss) on average assets		(0.39	) %		(1.83	) %		0.14	%		0.50	%		0.57	%
Return (loss) on average equity		(5.83	) %		(26.17	) %		1.93	%		7.03	%		8.75	%
Non-interest expense/tax equivalent net interest income and non-interest income		97.46	%		159.06	%		76.69	%		75.06	%		74.08	%
Average diluted shares (basic for the quarters ended March 31, 2008 and December 31, 2007)		13,019,748			12,752,994			12,902,212			12,598,658			11,944,440
End of quarter shares outstanding		14,002,949			12,783,161			12,832,816			12,821,216			11,836,027
Total equity	$	103,443		$	96,240		$	100,651		$	102,270		$	88,125
Book value per common share	$	7.39		$	7.53		$	7.84		$	7.98		$	7.45
Total assets	$	1,512,637		$	1,444,739		$	1,395,547		$	1,358,773		$	1,351,414

______ 

1 Non-performing loans 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 March 31, 2008							Quarter Ended March 31, 2007
	Average Balances		Interest*		Yield*			Average Balances		Interest*		Yield*
Loans	$	1,137,388	$	20,150		7.13	%	$	1,060,523	$	20,959		8.01	%
Investments		157,773		1,939		4.94	%		134,666		1,690		5.09	%
Interest bearing deposits		1,382		11		3.20	%		591		8		5.49	%
Federal Home Loan Bank stock		8,489		127		6.02	%		7,711		112		5.89	%
Fed funds sold and securities purchased under agreements to resell		94,276		744		3.17	%		54,291		696		5.20	%
Total interest earning assets		1,399,308		22,971		6.60	%		1,257,782		23,465		7.57	%
Non-interest earning assets		96,345							83,682
Total assets	$	1,495,653						$	1,341,464
Interest bearing liabilities:
NOW	$	183,982	$	1,117		2.44	%	$	149,865	$	1,255		3.40	%
Money market		179,081		1,424		3.20	%		176,777		1,814		4.16	%
Savings		51,009		180		1.42	%		48,860		139		1.15	%
Time		536,065		6,405		4.81	%		513,335		6,321		4.99	%
Total interest-bearing deposits		950,137		9,126		3.86	%		888,837		9,529		4.35	%
Short-term borrowings and FHLB advances		210,659		2,035		3.89	%		148,371		1,668		4.56	%
Long-term borrowings		63,000		905		5.78	%		33,043		680		8.35	%
Total interest bearing liabilities		1,223,796		12,066		3.97	%		1,070,251		11,877		4.50	%
Non-interest bearing deposits		153,579							165,187
Other liabilities		18,676							19,317
Shareholders’ equity		99,602							86,709
Total liabilities and shareholders’ equity	$	1,495,653						$	1,341,464
Net interest income and spread			$	10,905		2.63	%			$	11,588		3.07	%
Net interest margin						3.13	%						3.74	%
_______ * Presented on a fully tax equivalent basis

 TIB FINANCIAL CORP. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

(Dollars in thousands)

Nonaccrual loans are as follows:

	As of March 31, 2008				As of December 31, 2007
Loan Type	Number of Loans		Outstanding Balance		Number of Loans		Outstanding Balance
Residential **		24	$	5,000		13	$	4,442
Commercial and agricultural		2		286		4		293
Commercial real estate		4		2,372		4		2,619
Residential land development		-		-		1		2,686
Commercial land development		2		13,840		-		-
Participations in residential loan pools **		-		-		9		1,246
Government guaranteed loan		1		1,641		1		1,641
Indirect auto-dealer, auto and consumer loans		272		3,731		238		3,159
			$	26,870			$	16,086

_______

** Our ownership in the nine loan pools was exchanged for an equivalent value of 10 specific loans from the loan pools during the first quarter.

Impaired loans are as follows:

	March 31, 2008		December 31, 2007
Loans with no allocated allowance for loan losses	$	5,783	$	4,448
Loans with allocated allowance for loan losses		18,106		3,748
Total	$	23,889	$	8,196
Amount of the allowance for loan losses allocated	$	2,274	$	1,401

Nonaccrual Loan Activity (Other Than Indirect Auto and Consumer)
Nonaccrual loans at December 31, 2007	$	12,927
Loans returned to accrual		(903	)
Principal paid down on nonaccrual loans		(632	)
Charge-offs		(76	)
Loans foreclosed		(2,814	)
Loans placed on nonaccrual		14,637
Nonaccrual loans at March 31, 2008	$	23,139

OREO Activity
OREO as of December 31, 2007	$	1,846
Real estate foreclosed		2,814
Other increases		61
Write-down of value		(226	)
Property sold		-
OREO as of March 31, 2008	$	4,495