Great Florida Bank Reports First Quarter 2008 Results


CORAL GABLES, Fla., April 24, 2008 (PRIME NEWSWIRE) -- Great Florida Bank (Nasdaq:GFLB) today reported net income for first quarter 2008 of $69 thousand, or $0.01 per basic and diluted share, compared to $574 thousand, or $0.04 per basic and diluted share, reported for first quarter 2007. This decline is mainly attributed to an increase in the provision for loan loss expense due to rising credit costs in the land and construction loan portfolios.

"At the end of 2007, the Bank's management team established four fundamental goals for 2008 to help us successfully weather the continuing economic uncertainty and market volatility. We committed to aggressively manage credit risk, decrease our cost of deposits, drive down operating costs and leverage our network of 22 Solution Centers," said Mehdi Ghomeshi, Great Florida Bank's Chairman and CEO. "Our performance this quarter was disappointing, however I am confident trends will turn more favorable as our team continues executing on these four goals."



 First Quarter 2008 Highlights Compared to First Quarter 2007

 -- Total assets grew to $1.9 billion, up 15%.
 -- Total loans grew to $1.3 billion, up 10%
 -- Total deposits grew to $1.0 billion, up 8%
 -- Shareholders' equity increased to $173.5 million, from
    $169.6 million.
 -- Book value per share increased to $13.23, from $12.94.
 -- Operating expenses were $9.4 million, down 10%.

As previously discussed, a fundamental goal for 2008 is reducing non-interest expense. The bank reported $9.4 million in non-interest expense for first quarter 2008, a 10% decrease compared to $10.5 million for first quarter 2007. The most significant decline occurred in non-recurring expenses for third party services, which, as previously reported, had been elevated during fiscal 2007 due to the requirements set forth in the FDIC Order relating to BSA.

Total net loans outstanding were $1.3 billion for first quarter 2008, a 10% increase compared to first quarter 2007. This increase reflects modest growth in residential real estate mortgages, home equity and construction loans. Total deposits grew to $1.0 billion, an 8% increase compared to first quarter 2007.

The Bank remains steadfastly committed to mitigating potential credit risk due to continued weakness in the general market, housing and real estate sectors. Delinquent loans totaled $16.3 million, or 1.25% of total loans outstanding, with the majority concentrated in land and construction loans at $9.1 million and loans secured by residential real estate at $3.9 million. In the preceding quarter, delinquent loans were $9.9 million or 0.77% of total loans outstanding, and $23.3 million, or 1.97% of total loans outstanding at the end of first quarter 2007. Loans classified as non-accrual totaled $29.0 million, or 1.57% of total assets at the end of first quarter 2008, compared to $21.5 million, or 1.19% of total assets at the end of the preceding quarter and $9.4 million, or 0.58% of total assets at the end of first quarter 2007.

The provision for loan loss expense was $2.0 million for first quarter 2008, up $400 thousand from the preceding quarter, and $1.6 million from a year-ago. The additions to the allowance for loan losses were attributable to the increase in outstanding loans from the year earlier period, plus additional reserves for the land and construction loan portfolios. At March 31, 2008, the allowance for loan losses was $23.5 million, or 1.80% of total loans outstanding. That compared to $21.8 million, or 1.71% of total loans outstanding in the preceding quarter, and $20.5 million, or 1.74% of total loans outstanding at March 31, 2007. Net loan charge offs were $272 thousand, or 0.02% of total loans outstanding, compared to $1.3 million, or 0.10% of total loans outstanding in the preceding quarter and $712 thousand, or 0.06% of total loans outstanding at the end of first quarter 2007.

Great Florida Bank maintained its strong capital position during the quarter and reported Tier 1 Capital of $170 million at March 31, 2008. The Bank's Tier 1 Leverage ratio was 10.73%, or 115% above the Federal regulatory definition of a 'Well Capitalized Bank'. The Bank also reported book value per share of $13.23, up from $12.94 for the same quarter last year.

ABOUT GREAT FLORIDA BANK

Established in June 2004, Great Florida Bank reported total assets of $1.9 billion on March 31, 2008. The corporate headquarters is located in Coral Gables, Florida and 22 Solution Centers are located throughout Miami-Dade and Broward Counties. The Bank is committed to providing ideas and solutions to its customers' financial needs by conveniently delivering personalized, state-of-the-art products and services in a relaxed environment. For further information, visit our website at www.greatfloridabank.com or call 866-514-6900.



 Great Florida Bank
 Selected Financial Highlights (unaudited)
 March 31, 2008
 (In Thousands except share/per share information)

                                At and for the period ended March 31,
                                                            Increase/
                                   2008          2007       (Decrease)
                               -----------   -----------   -----------
 Results of Operations:
  Interest Income on Loans          21,397        21,702          (305)
  Interest Income on Investment
   and Other Assets                  3,955         1,301         2,654
                               -----------   -----------
  Total Interest Income        $    25,352   $    23,003   $     2,349

  Interest Expense on Deposits       9,762        10,620          (858)
  Interest Expense on Borrowings     4,413         1,348         3,065
                               -----------   -----------
  Total Interest Expense       $    14,175   $    11,968   $     2,207

  Net Interest Income before
   Provision                        11,177        11,035           142
  Provision for loan losses          2,005           400         1,605
                               -----------   -----------
  Net Interest Income after
   Provision                   $     9,172   $    10,635   $    (1,463)

  Noninterest Income           $       499   $       683   $      (184)

  Employee Compensation              5,279         5,498          (219)
  Occupancy Expense                  2,005         2,048           (43)
  Professional and Consulting          430         1,028          (598)
  Other Expenses                     1,722         1,907          (185)
                               -----------   -----------
  Noninterest Expense          $     9,436   $    10,481   $    (1,045)

  Pretax Income                        235           837          (602)
  Provision for income
   tax expense                         166           263           (97)
  Net Income                   $        69   $       574   $      (505)
  Net earnings per common share
   - basic                            0.01          0.04         (0.03)
  Net earnings per common share
   - diluted                          0.01          0.04         (0.03)

 Period End Data:
  Total Assets                 $ 1,850,387   $ 1,606,956   $   243,431
  Total Securities                 352,930       110,240       242,690
  Land and Construction Loans      403,835       394,710         9,125
  Commercial Real Estate
   Secured Loans                   229,748       228,128         1,620
  Commercial Loans                 146,195       148,097        (1,902)
  Residential Real Estate
   Secured Loans                   471,758       371,094       100,664
  Non Accrual Loans                 29,047         9,380        19,667
  Loans before Allowance for
   Loan Losses                   1,303,597     1,182,372       121,225
  Allowance for loan losses         23,520        20,538         2,982
  Loans, Net                     1,280,077     1,161,834       118,243
  Noninterest bearing demand
   deposits                         82,491        90,944        (8,453)
  Interest bearing demand deposits  14,506        23,285        (8,779)
  Money Market, Savings and
   Time Deposits                   841,647       790,237        51,410
  Brokered Deposits                 83,318        42,056        41,262
      Total Deposits             1,021,962       946,522        75,440
  Advances from FHLB               535,700       381,000       154,700
  Other borrowings                 112,312       101,966        10,346
  Tangible equity                  170,302       169,399           903
  Shareholders' equity             173,490       169,639         3,851
  Shares outstanding            13,112,500    13,112,500            --
  Book value per share               13.23         12.94          0.29

 Key Ratios:
  Return on average assets            0.02%         0.18%        -0.16%
  Return on average equity            0.16%         1.35%        -1.19%
  Net interest margin                 2.89%         3.59%        -0.70%
  Nonaccruing loans/total
   gross loans                        2.23%         0.79%         1.44%
  Allowance for loan
   losses/period end loans            1.80%         1.74%         0.06%
  Shareholders' equity to
   period end total assets            9.38%        10.56%        -1.18%
  Tangible Equity to period
   end total assets                   9.20%        10.54%        -1.34%

 Risk-based Capital Ratios:
                                        Minimum to be      Over (Under)
                         Actual 2008   Well Capitalized    Requirement
                         -----------   ----------------   ------------

 Total Risk Based
  Capital (to risk
  weighted assets)        $ 187,278         $ 134,753       $ 52,525

 Tier 1 Capital (to risk
  weighted assets)        $ 170,302         $  80,852       $ 89,450

 Tier 1 Capital (to
  average total assets)   $ 170,302         $  79,350       $ 90,952


            

Contact Data