Great Florida Bank Reports Results for Third Quarter 2009

http://www.businesswire.com/news/home/20091105006589/en

MIAMI LAKES, Fla.--(Business Wire)--
Great Florida Bank (NASDAQ:GFLB) today reported financial results for the third
quarter ended September 30, 2009. The Bank maintained its strong capital
position, reporting Tier 1 Capital of $113.9 million and a Tier 1 Leverage ratio
of 6.52%. In addition, the Bank reported tangible equity (total equity net of
unrealized gains on securities) of $121.4 million and a tangible equity to total
assets ratio of 7.07%. Great Florida Bank continues to be a `well-capitalized`
institution as defined by Federal regulatory guidelines.

Third quarter results were similar to the previous two quarters` and again
largely driven by credit costs, including additional provision for loan loss
expense, loan charge offs and legal fees associated with loan workout
activities. The cause of these elevated credit costs is a lengthy regional,
national and global economic downturn (more than twenty-two months old), rising
unemployment, and a sustained downward pressure on local real estate values. As
a result, the Bank reported a net loss of $13.3 million or ($1.02) per basic and
diluted share for third quarter 2009, compared to a net loss of $13.9 million or
($1.06) per basic and diluted share for third quarter 2008. The Bank reported a
net loss of $30.9 million or ($2.35) per basic and diluted share for the first
nine months of 2009 compared to a net loss of $13.8 million, or ($1.05) per
basic and diluted share for the first nine months of 2008.

"The factors contributing to the prolonged and challenging economic environment
are hindering not only any meaningful signs of improvement in the economy at
large, but our operating performance as well," stated Mehdi Ghomeshi, Great
Florida Bank`s Executive Chairman and CEO.

Mr. Ghomeshi continued, "To mitigate this impact, successfully navigate through
this economic turmoil and emerge as a dominant financial services provider in
South Florida, we continue to focus on execution of four fundamental objectives.
Our number one priority is mitigating credit risk and protecting the portfolio.
Second is to improve our net interest margin by aggressively reducing our cost
of deposits. Third, is to improve our efficiency ratio by containing operating
expenses. Lastly, leverage our Solution Centers by attracting new consumer and
small business banking relationships with core deposits and expanding our
existing consumer and small business banking relationships. I am pleased to
report we are making positive strides toward meeting these goals. However, we
are not optimistic about seeing measurable, lasting improvement in the South
Florida economy until sometime next year."

The total of delinquent loans (those loans between 30 and 89 days past due) and
nonperforming loans (those loans not accruing interest) remained relatively
steady during the past four consecutive quarters. At September 30, 2009,
delinquent and non-performing loans totaled $196.4 million, compared to $195.9
million the preceding quarter and $195.7 million at December 31, 2008.
Delinquent loans declined to $35.2 million or 2.81% of total gross loans
outstanding at quarter end, compared to $36.8 million or 2.77% of total gross
loans outstanding in the preceding quarter. Loan delinquencies have trended down
from their peak at December 31, 2008, when delinquent loans totaled $97.8
million or 7.42% of total gross loans outstanding.

The total of non-performing loans remained relatively flat at $161.2 million or
12.87% of total gross loans outstanding at the end of third quarter 2009,
compared to $159.1 million or 11.98% of total gross loans outstanding at the end
of the preceding quarter and $97.9 million or 7.42% of total gross loans
outstanding at December 31, 2008. Approximately 5% or $8.3 million of
non-performing loans are actually current, and remain classified as
non-performing until they have a history of repayment under recently modified
loan terms.

As reported in last quarter`s press release, Great Florida Bank continued its
Home Retention Program to help first and second mortgage loan homeowners make
their monthly mortgage payment, avoid foreclosure and stay in their homes. A
team of trained specialists assists Great Florida Bank borrowers facing extreme
financial hardship to create a mutually beneficial agreement, which provides an
affordable payment, and avoids foreclosure. Year to date, the Bank has modified
58 mortgage loans totaling $19.4 million through the Home Retention Program.

The Bank recorded a provision for loan losses of $15.7 million for third quarter
2009, compared to $5.4 million in the preceding quarter. Net loan charge offs
totaled $16.0 million or 1.28% of total gross loans outstanding for the third
quarter and $39.1 million or 3.12% of total gross loans outstanding for the
first nine months of 2009. The majority of charge offs during the first nine
months of 2009 have been due to declines in the value of collateral securing a
handful of large non-performing loans. In keeping with the bank`s strategy of
prudently managing through this credit cycle, it should be noted that the
non-performing loans reported at September 30, 2009 have been written down by
$35.1 million, or 17.88% of their outstanding balances.

The chart below provides a detailed description by loan type of Delinquencies,
non-performing loans and charge offs ($ in thousands)

At September 30, 2009
Loan Type Outstanding % Delinquent % Non- % Charged-off %

Balances
Balances Performing
Balances

Balances YTD
Land & Development $165,534 13.22% $212 0.13% $68,454 41.35% $15,614 9.43%
Construction $94,875 7.58% - 0.00% $19,697 20.76% $4,521 4.77%
Residential Real Estate $595,687 47.56% $18,991 3.19% $53,639 9.00% $8,409 1.41%
Commercial Real Estate $223,499 17.85% $5,205 2.33% $8,745 3.91% $2,050 0.92%
Commercial & Industrial $153,306 12.24% $10,763 7.02% $8,736 5.70% $8,296 5.41%
Other Loans $19,501 1.55% $25 0.13% $1,961 10.06% $189 0.97%
Total $1,252,402 100% $35,196 2.81% $161,232 12.87% 39,079 3.12%

The allowance for loan losses totaled $37.4 million at September 30, 2009, or
2.99% of total gross loans outstanding compared to $37.7 million or 2.84% of
total gross loans outstanding the preceding quarter and $36.4 million or 2.76%
of total gross loan outstanding at December 31, 2008.

"As previously reported, loan delinquencies (loans 30 to 89 days past due),
peaked in the fourth quarter 2008 and have trended down during the first nine
months of 2009," stated Ghomeshi. "We continue working diligently with our
borrowers and are taking prudent steps to keep them current during this
difficult economic period. We are deeply committed to helping homeowners keep
their homes and businesses to remain viable. Unfortunately, for those loans that
have moved to non-performing status, our ability to move expediently through the
foreclosure process is severely hampered by a challenging legal environment. We
are experiencing exceptional delays which are adversely affecting our
performance in this area."

Non-interest expense totaled $12.3 million for third quarter 2009, compared to
$10.0 million during the same quarter last year. The $2.3 million increase was
concentrated primarily in the following categories; $358 thousand in regulatory
fees & assessments due to increases in FDIC insurance premium, $1.4 million in
loan workout expenses, including increased legal fees. In addition, the increase
also consisted of $816 thousand due to the loss in the carrying value and sale
of foreclosed property.

At September 30, 2009, total net loans outstanding were down slightly to $1.2
billion compared to third quarter 2008. Total deposits were $1.3 billion, up
5.9% compared to third quarter 2008. Great Florida Bank has successfully
maintained a strong liquidity position primarily through the acquisition of new
customer deposits. The year-over-year increase included net growth in new
customer deposits of $124.5 million, primarily in money market, savings and time
deposit accounts.

ABOUT GREAT FLORIDA BANK

Great Florida Bank (NASDAQ - GFLB), headquartered in Miami Lakes, Florida was
established on June 30, 2004 as a state-charted commercial bank. The Bank listed
on the NASDAQ Global Market on December 5, 2007 and joined the prestigious
American Bankers Association Community Bank Index in June 2008. On September 30,
2009, total assets were $1.7 billion, Tier 1 Capital was $114 million, and the
Tier 1 Leverage ratio was 6.5%. The Bank operates twenty-eight (28) Solution
Centers and two residential lending offices throughout Miami-Dade, Broward and
Palm Beach Counties. Great Florida Bank is committed to providing ideas and
solutions to its customers` financial needs by conveniently delivering
personalized, state-of-the-art products and services, such as GFB Mobile Banking
for individual consumers and cash management clients and GFB Remote Deposit
Capture for business customers, all in a relaxed environment. For more
information, visit our website at www.greatfloridabank.com or call 305-514-6900
(toll-free 866).

Member FDIC.

Forward-Looking Statements

This press release may contain forward-looking statements with respect to Great
Florida Bank`s financial condition, results of operations and business. These
forward-looking statements involve certain risks and uncertainties. When used in
this, or future press releases or other public stockholder communications, or in
oral statements made with the approval of an authorized executive officer, words
or phrases such as: "will likely result," "are expected to," "will continue,"
"is anticipated," "estimate," "project," "believe," or similar expressions are
intended to identify "forward-looking statements". We caution the reader and
users of this information not to place undue reliance on any such
forward-looking statements, which speak only as of the date on which they are
made. We also advise readers that various factors including regional and
national economic conditions, changes in the levels of market rates of interest,
credit risk and lending activities, and competitive and regulatory factors could
affect Great Florida Bank`s financial performance and could cause actual results
for future periods to differ materially from those anticipated or projected.

Great Florida Bank does not undertake and specifically disclaims any obligation
to publicly release the results of any revisions, which may be made to any
forward-looking statements to reflect the occurrence of anticipated or
unanticipated events or circumstances after the date of such statements.

Great Florida Bank
Selected Financial Highlights (unaudited)
September 30, 2009
(In Thousands except share/per share information)

At and for the nine months ended September 30, Increase/
Results of Operations: 2009 2008 (Decrease)
Interest Income on Loans 44,712 58,763 (14,051 )
Interest Income on Investment and Other Assets 15,094 14,919 175
Total Interest Income $ 59,806 $ 73,682 $ (13,876 )

Interest Expense on Deposits 25,493 28,472 (2,979 )
Interest Expense on Borrowings 10,108 12,093 (1,985 )
Total Interest Expense $ 35,601 $ 40,565 $ (4,964 )

Net Interest Income before Provision 24,205 33,117 (8,912 )
Provision for loan losses 40,093 28,549 11,544
Net Interest (Loss) Income after Provision $ (15,888 ) $ 4,568 $ (20,456 )

Gain on Sale of Securities 17,618 - 17,618
Other Noninterest Income 2,800 1,597 1,203
Noninterest Income $ 20,418 $ 1,597 $ 18,821

Employee Compensation 13,994 14,797 (803 )
Occupancy Expense 6,976 6,419 557
Professional and Consulting 1,980 1,224 756
Other Expenses 9,962 5,386 4,576
Noninterest Expense $ 32,912 $ 27,826 $ 5,086

Pretax Loss (28,382 ) (21,661 ) (6,721 )
Provision for income tax expense (benefit) 2,468 (7,910 ) 10,378
Net Loss $ (30,850 ) $ (13,751 ) $ (17,099 )
Net loss per common share - basic $ (2.35 ) $ (1.05 ) $ (1.30 )
Net loss per common share - diluted $ (2.35 ) $ (1.05 ) $ (1.30 )

Period End Data:
Total Assets $ 1,716,557 $ 1,736,983 $ (20,426 )
Total Securities 297,388 413,005 (115,617 )
Land and Construction Loans 260,409 381,140 (120,731 )
Commercial Real Estate Secured Loans 223,499 223,284 215
Commercial Loans 153,306 112,974 40,332
Residential Real Estate Secured Loans 595,687 522,283 73,404
Non Accrual Loans 161,232 96,341 64,891
Loans before Allowance for Loan Losses 1,252,402 1,286,232 (33,830 )
Allowance for loan losses 37,382 42,343 (4,961 )
Loans, Net 1,215,020 1,243,889 (28,869 )
Noninterest bearing demand deposits 74,319 77,685 (3,366 )
Interest bearing demand deposits 17,500 17,072 428
Money Market, Savings and Time Deposits 1,046,340 918,874 127,466
Brokered Deposits 118,718 173,447 (54,729 )
Total Deposits 1,256,877 1,187,078 69,799
Advances from FHLB 220,000 270,000 (50,000 )
Other borrowings 108,279 112,585 (4,306 )
Tangible equity 121,434 156,921 (35,487 )
Shareholders' equity 122,325 159,322 (36,997 )
Shares outstanding 13,112,500 13,112,500 -
Book value per share 9.33 12.15 (2.82 )

Key Ratios:
Return on average assets -2.32 % -1.09 % -1.23 %
Return on average equity -27.81 % -10.58 % -17.23 %
Net interest margin 2.01 % 2.72 % -0.71 %
Nonaccruing loans/total gross loans 12.88 % 7.49 % 5.39 %
Allowance for loan losses/period end loans 2.99 % 3.29 % -0.30 %
Shareholders' equity to period end total assets 7.13 % 9.17 % -2.04 %
Tangible Equity to period end total assets 7.07 % 9.03 % -1.96 %

Risk Based Capital Ratios:

Actual Minimum to be % above
Well Capitalized Federal
Definition of
Well Capitalized

Total Risk Based Capital (to risk weighted assets) 11.14 % 10.00 % 11 %

Tier 1 Capital (to risk weighted assets) 9.85 % 6.00 % 64 %

Tier 1 Capital (to average total assets) 6.52 % 5.00 % 30 %

Great Florida Bank
Gary Laurash, Chief Financial Officer
305-514-6921/305-781-0003
glaurash@greatfloridabank.com
or
Terrence L. Brown, Chief Marketing Officer
305-514-6433/305-519-4461
tbrown@greatfloridabank.com

Copyright Business Wire 2009