Great Florida Bank Announces Profit and Robust Deposit and Loan Growth for the Second Quarter 2006

Business Wire,  July 31, 2006  

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MIAMI -- Great Florida Bank (GFB), today announced financial results for the second quarter 2006. For the three-months ended June 30, 2006, the bank reported pretax income of $249,000, or $0.02 per basic and diluted share, compared to a pretax loss of $489,000 or (0.08) per basic and diluted share, for the second quarter 2005. Pretax income for the six months ended June 30, 2006 was $509,000, or $0.04 per basic and diluted share compared to a pretax loss of $2.2 million, or $(0.36) per basic and diluted share reported for the first six months of 2005. The bank also reported total assets grew to $1.30 billion at June 30, 2006, up 111% compared to the same quarter last year.

"It is very gratifying to announce our second consecutive quarter of profitable operations," said Mehdi Ghomeshi, Great Florida Bank's Founder and Chief Executive Officer. "I am truly grateful for the dedicated team of Great Florida Bank associates who continue to execute our strategy, generating robust deposit and loan growth in such a highly competitive environment as the South Florida market."

Second Quarter 2006 Achievements:

--Pretax income of $249,000 or $0.02 per basic and diluted share.

--Net interest margin of 4.29% compared to 4.00% for the second quarter 2005.

--Total assets grew to $1.30 billion, up 111% from the second quarter 2005.

--Total deposits grew to $858.5 million, up 157% from the second quarter 2005.

--Total net loans grew to $1.05 billion, up 167% from the second quarter 2005.

--Shareholders' Equity increased to $166.3 million, up 206% from the second quarter 2005.

--Book value per share increased to $12.68, up 46% from the second quarter 2005.

--Opened three Solution Centers and executive offices in Coral Gables, Florida.

The bank is also reporting substantial net income of $3.9 million, or $0.30 per basic and $0.29 per diluted share for the three-months ended June 30, 2006; however this is due primarily to the elimination of a reserve on deferred tax assets, which generated a $3.6 million income tax benefit during the second quarter.

Loan and deposit growth continue to fuel Great Florida Bank's remarkable performance. During the second quarter 2006, total net loans outstanding grew to $1.05 billion, a 167% increase compared to the same period last year and total deposits grew to $858.5 million, a 157% increase over the same quarter last year. The net interest margin declined slightly from 4.45% during the first quarter to 4.29% during the second quarter 2006 due, in part, to aggressive deposit account promotions which coincided with the opening of three new Solution Centers as well as the continued flattening of the yield curve.

At June 30, 2006, Great Florida Bank did not have any non-performing loans, and delinquent loans totaled only $492,000 or .05% of total loans outstanding. Furthermore, the allowance for loan losses increased to $16.5 million at June 30, 2006 from $6.2 million at June 30, 2005. The allowance for loan losses as a percentage of outstanding loans was 1.55% at both June 30, 2006 and June 30, 2005.

Non-interest expense was $7.0 million for the quarter, compared to $3.6 million for the same quarter last year. This increase is a result of the bank's continued investment in technology, human resources and new Solution Center locations to fulfill its growth and expansion strategy. During the quarter, Great Florida Bank opened 3 new Solution Centers, including an additional location in Pinecrest within the Suniland Plaza, Coral Gables in the Riviera shopping center, and in Little Havana. This brings to 16 the total number of Solution Centers located within Miami-Dade and Broward Counties. Executive offices were also opened in Coral Gables to house the Commercial Real Estate, and Corporate Banking sales teams, as well as other executives. The bank plans to open several additional Solution Centers in South Florida before the end of the year.

About Great Florida Bank

Established in June 2004, Great Florida Bank reported total assets of $1.30 billion on June 30, 2006. The corporate headquarters is located in Miami Lakes, with executive offices in Coral Gables and downtown Fort Lauderdale and 16 Solution Centers located throughout Miami-Dade and Broward Counties. Additional Solution Centers are planned for Coral Gables, Fort Lauderdale, Doral, and South Beach. 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 in a relaxed environment. For further information visit our website at http://www.greatfloridabank.com or call 866-514-6900.

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