Great Florida Bank Reports Second Quarter 2007 Earnings

Great Florida Bank Reports Second Quarter 2007 Earnings

Total assets grew to $1.7 billion, an increase of 31% compared to second quarter 2006


Coral Gables, FL–(HISPANIC PR WIRE – BUSINESS WIRE)–July 27, 2007–Great Florida Bank (OTCBB:GFLBA), today announced pretax income for second quarter 2007 of $293 thousand, an 18% increase over pretax income for second quarter 2006 of $249 thousand. Pretax income for the first six months of 2007 totaled $1.1 million, a 122% increase over the $509 thousand reported for the first six months of 2006. The bank also reported total assets increased to $1.7 billion at June 30, 2007, up 31% compared to the same quarter last year.

“Great Florida Bank has managed to continue growing earnings and total assets, despite the on-going challenges we face in today’s operating environment,” said Mehdi Ghomeshi, Great Florida Bank’s Chairman and CEO. “In addition, earnings this quarter were impacted as we continued investing significantly in additional personnel, compliance systems and consultants to comply with Bank Secrecy Act and anti-money laundering rules and regulations.”

Second Quarter 2007 Achievements Compared to Second Quarter 2006:

— Pretax income of $293 thousand, up 18%.

— Total assets grew to $1.7 billion, up 31%.

— Total net loans grew to $1.2 billion, up 15%.

— Total deposits grew to $959.2 million, up 12%.

— Shareholders’ equity increased to $169.3 million, from $166.3 million.

— Book value per share increased to $12.91, from $12.68.

— Opened the Deerfield Beach Solution Center.

— Operating 21 Solution Centers compared to 16 a year earlier.

Net income for second quarter 2007 was $65 thousand, compared to $3.9 million for the same quarter a year earlier. The significant change in year-over-year net income is due primarily to the bank eliminating a reserve on deferred tax assets during the second quarter last year, which generated a one-time $3.6 million income tax benefit for the second quarter 2006.

Non-interest expense increased to $9.5 million for second quarter 2007, compared to $7.0 million for second quarter 2006. This year-over-year increase is a result of several factors including continued investment in people, technology and new locations to fulfill the bank’s growth and expansion strategy, as well as incremental costs from complying with the FDIC Order related to Bank Secrecy Act and anti-money laundering rules and regulations.

During the second quarter 2007, total net loans outstanding grew to $1.2 billion, a 15% increase compared to the same quarter last year, and total deposits grew to $959.2 million, a 12% increase over the same quarter last year.

Non-performing loans totaled $28.9 million, or 1.71% of total assets at June 30, 2007, the majority of which are concentrated in two borrowing relationships. At June 30, 2007, the allowance for loan losses increased to $21.3 million, or 1.74% of outstanding loans, compared to $16.5 million, or 1.55% of outstanding loans at June 30, 2006.

During the second quarter 2007, Great Florida Bank continued to demonstrate its steadfast commitment to becoming the corporate citizen of choice in the communities it serves by hosting an Affordable Housing Symposium at the Tower Theater in Little Havana which highlighted the affordable housing initiatives currently underway in Miami-Dade County including tax credit and subsidy programs, as well as employer assisted housing. The bank also partnered with Neighborhood Housing Services providing more than two dozen bank associates to support a beautification project held in the Brownsville community. In addition, the bank participated in a weekend-long conference about economic empowerment and wealth building hosted by the Collective Banking Group.

Two of Great Florida Bank’s top executives were also honored and recognized in the community during second quarter. Chairman and CEO, Mehdi Ghomeshi was recognized by Miami-Dade College for his many contributions to the community and inducted into the College’s Alumni Hall of Fame. Great Florida Bank Market President, Obdulio Piedra was appointed chairman of the Florida Financial Literacy Council by the State’s Chief Financial Officer, Alex Sink. As council chairman, Piedra will use his extensive experience in the financial services industry to help Floridians make better financial decisions through education on a variety of relevant topics including saving for the future and managing credit.


Established in June 2004, Great Florida Bank reported total assets of $1.7 billion on June 30, 2007. The corporate headquarters is located in Coral Gables, Florida and 21 Solution Centers are located throughout Miami-Dade and Broward Counties. Additional Solution Centers are planned for 2007. 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 or call 866-514-6900.

Great Florida Bank Reports Second Quarter 2007 Earnings