BOFL Bank of Florida (MM)

Bank of Florida Corporation (NASDAQ: BOFL) reported a net loss to common shareholders of $78.1 million, or $6.10 per diluted common share, in the third quarter of 2009. The net loss to common shareholders reflects a goodwill impairment charge of $62.0 million to write off all of the Company’s goodwill. This charge was a one-time, non-cash accounting transaction that will not affect the Company’s cash flows, liquidity, or tangible capital ratios, and was primarily due to the current state of the financial markets as well as the current market price of the Company’s common stock. Excluding the impact of the goodwill impairment charge, the net loss for the third quarter of 2009 was $16.1 million, or $1.26 per diluted share. This compares to a net loss of $6.5 million, or $0.51 per diluted share, in the second quarter of 2009. Also affecting third quarter results was a $25.7 million provision for loan losses, $13.0 million of which was added to the allowance for loan losses and $12.7 million of which was attributed to net charge-offs. Third quarter highlights include:

• Land, construction and development loans decreased 19% to $238.2 million from $295.4 million at June 30, 2009, although $37.9 million (16%) of these became permanent loans during the third quarter under prior commitments
• The allowance for loan losses was 3.03% of total loans, compared to 1.96% at June 30, 2009
• Net charge-offs on an annualized basis were 4.52% of average loans, up from 3.29% of average loans in the second quarter
• Non-performing loans totaled 11.98% of total loans, compared to 11.12% at June 30, 2009
• Non-performing assets totaled 10.79% of total assets, compared to 9.74% at June 30, 2009
• Tangible common equity as a percentage of tangible assets was 6.53%
• Net interest margin expanded five basis points to 3.02%, compared to 2.97% in the second quarter of 2009
• Total core deposits, which include retail CDARs but exclude wholesale brokered CDs, wholesale CDAR deposits, and CDs with balances in excess of $100,000, increased $58.4 million, or 8%, compared to the second quarter of 2009
• Since September 30, 2009, core deposits have increased an additional $84.5 million, bringing the total increase since June 30, 2009 to $142.9 million
• Assets under administration at Bank of Florida Trust Company totaled $734.5 million, an increase of $103.8 million from June 30, 2009

“Our third quarter results were most significantly affected by the $62.0 million goodwill impairment charge and the $25.7 million provision for loan losses. Our ‘core’ earnings, which is a non-GAAP measure that excludes taxes and credit-related expenses as well as the goodwill impairment charge, increased to $2.0 million compared to $1.0 million during the second quarter,” said Chief Executive Officer Michael L. McMullan. “This increase reflected effective management of our net interest margin combined with the cost savings plan that we implemented last quarter.

“We are continuing to work through problem assets systematically, and as quickly and efficiently as possible. Since the beginning of 2008, we have worked out 26 loans totaling $20.9 million prior to the foreclosure process with an average principal loss of 12%. During the same time period, 20 properties have been sold through foreclosure totaling $16.1 million with an average principal loss of 37%. The weighted average rate of principal loss on this $37.0 million was 23%. Currently, 54 loans totaling approximately $74.2 million, or 50% of total non-performing loans, are in the foreclosure process. In addition to working through our non-performing loans, we expect our provisions for loan losses and our allowance for loan losses to remain higher than historic levels.

“Over the past several years, we have also aggressively decreased our exposure to high risk commercial real estate loans, which include land, non-owner occupied commercial and non-owner occupied residential construction loans. These loans accounted for 193% of our total risk-based capital as of September 30, 2009, down from 292% in 2006.

“The Bank of Florida Trust Company continues to perform well. During the third quarter, assets under management, which drive trust revenues, increased by approximately $100 million over the second quarter due to new client assets, market value improvements, and significant additions to existing client accounts. The pipeline for new assets under management, which represents true organic growth, remains strong at approximately $80-$100 million over the next 12 months. We continue to see excellent opportunities to add new clients and experienced wealth management professionals, particularly within the Tampa, Naples, and Miami-Dade markets due to industry disruption created as a result of the current financial crisis.”

Net Interest Income

Net interest income for the third quarter of 2009 totaled $9.6 million, an increase of 1% compared to the second quarter of 2009. The net interest margin increased five basis points to 3.02%, compared to 2.97% in the second quarter of 2009, primarily as a result of lower costs of funds as market rates on deposits continued to ease, as well as an 8% increase in core deposits. The net interest margin, excluding the effects of nonaccrual loans and their related funding costs, would have been approximately 3.34% in the third quarter of 2009 compared to approximately 3.26% in the second quarter of this year.

Non-Interest Income

Non-interest income decreased to $1.6 million in the third quarter from $2.7 million in the second quarter, primarily due to an $839,000 decrease in gains on the sale of investment securities. Also impacting non-interest income during the third quarter was a $240,000 loss on the sale of one loan and a $260,000 loss on the sale of certain Other Real Estate Owned. Excluding gains on the sale of investment securities and the loss on the sale of assets, non-interest income increased 38% during the third quarter. Service charges and fees increased 63%, primarily due to income of $382,000 related to hedge ineffectiveness and the termination of a derivative transaction. Trust fees increased 13% as a result of new client business, additional inflows of client assets, and improved equity market conditions.

Non-Interest Expense

Non-interest expense increased $60.3 million over the second quarter 2009 to $73.0 million, due to the one-time, non-cash goodwill impairment charge of $62.0 million. Excluding the goodwill impairment charge, non-interest expense decreased $1.7 million, or 13%, as a direct result of the various cost saving measures which were implemented during the second and third quarters.

Asset Quality and Provision for Loan Losses

Non-performing loans totaled $150.1 million, or 11.98% of total loans, up $9.1 million from $141.0 million, or 11.12% of total loans as of the end of the second quarter. The increase in non-performing loans was primarily related to eight commercial real estate loans totaling $20.2 million, offset by net charge-offs of $12.7 million and transfers to Other Real Estate Owned of $5.3 million. The Company had $87.8 million and $87.7 million in loans defined as troubled debt restructurings as of September 30, 2009 and June 30, 2009, respectively. Of those amounts, $46.3 million and $54.6 million were accruing as of September 30, 2009 and June 30, 2009, respectively, and performing in accordance with their restructured terms. At September 30, 2009, there was $3.1 million in loans that were contractually past due 90 days or more as to principal or interest payments and still accruing interest as compared to $2.3 million at June 30, 2009. Non-performing assets were $160.6 million, or 10.79% of total assets, an increase of $11.7 million from $148.9 million or 9.74% of total assets as of the end of the second quarter.

Net charge-offs were $12.7 million, or 4.52% of average loans on an annualized basis, an increase of $3.2 million from $9.5 million, or 3.29% of average loans in the second quarter on an annualized basis. Net charge offs during the third quarter of 2009 were primarily related to valuation adjustments on several large residential construction loans. The provision for loan losses totaled $25.7 million, up $15.9 million from $9.8 million in the second quarter. The allowance for loan losses increased to $38.0 million or 3.03% of total loans, compared to $24.8 million, or 1.96% of total loans, at the end of the second quarter.

Balance Sheet and Capital

Total assets decreased $40.9 million, or 3%, to $1.5 billion at the end of the third quarter compared to the second quarter, primarily due to the goodwill impairment charge of $62.0 million. Excluding this write-off, total assets increased $21.1 million, or 1%. New loan production for the quarter was $21.0 million, primarily due to prior loan commitments in commercial real estate loans. Also contributing to new loan production in the third quarter were increased balances in one-to-four family residential, and commercial and industrial loans. Overall, loans decreased $14.1 million, or 1%, compared to the second quarter, primarily due to pay downs and charge-offs of non-performing loans. During the quarter, the Company used cash inflows from new deposits to pay down maturing borrowings and runoff of $11.0 million of brokered deposits to provide $35.9 million in on-balance sheet liquidity.

Total core deposits increased $58.4 million compared to the second quarter of 2009 due to a focus on lower cost money market and core CD deposits, which more than offset a $45.2 million runoff in retail CDARs. The decrease in retail CDARs was the direct result of a concentrated effort to lower the cost of funding and improve the net interest margin. At the end of the third quarter of 2009, core deposits increased to approximately 65% of total deposits, compared to 63% at the end of the second quarter. Management defines core deposits as the sum of demand deposits, NOW, MMDA, Savings, CDs less than $100,000 and reciprocal CDARs. The Federal Financial Institutions Examinations Council (FFIEC) defines core deposits as the sum of demand deposits, all NOW and ATS accounts, MMDA savings, other savings deposits, and time deposits under $100,000. Since September 30, 2009, core deposits have increased an additional $84.5 million, none of which were retail CDARs. The Company has suspended its participation in the CDARs program beginning in the fourth quarter of 2009, which is not expected to have a significant effect upon its liquidity position.

Shareholders’ equity at September 30, 2009, totaled $103.9 million, a decrease of $76.9 million, or 43%, compared to June 30, 2009, primarily due to the goodwill impairment charge. Excluding this charge, shareholders’ equity totaled $165.8 million, a decrease of $15.0 million, or 8%. Tangible common equity as a percentage of tangible assets stood at 6.53%, compared to 7.69% at the end of the second quarter of 2009. Consolidated tier 1 leverage, tier 1 risk-based capital, and total risk-based capital ratios were approximately 5.60%, 6.73%, and 9.28%, respectively, as of September 30, 2009.

The following tables summarize the Company’s results for the third quarter of 2009.

Bank of Florida Corporation

Bank of Florida Corporation. (Nasdaq: BOFL) is a $1.5 billion-asset multi-bank holding Company located in Naples, Florida. Bank of Florida Corporation is the parent company for Bank of Florida - Southwest in Collier and Lee Counties; Bank of Florida – Southeast in Broward, Miami-Dade and Palm Beach Counties; Bank of Florida – Tampa Bay in Hillsborough and Pinellas Counties; and Bank of Florida Trust Company, collectively referred to as the “Company.” Investor information may be found on the Company’s web site, http://www.bankofflorida.com, by clicking on "Investor Relations." To receive an email alert of all company press releases, SEC filings, and events, select the “Email Notification” section.

Certain of the statements made herein are “forward-looking statements,” within the meaning and protections of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act.

Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, capital, ownership or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements.

All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as “may,” “will,” “anticipate,” “assume,” “should,” “indicate,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “plan,” “point to,” “project,” “could,” “intend,” “target” and other similar words and expressions of the future. Statements and predictions regarding provisions for loan losses, levels of the allowance for loan losses, levels of non-performing loans and assets, migration of loans into non-performing status and problem loan and asset resolutions (including foreclosures), and pipelines of assets under management are forward looking statements. Many of these are not within our control.

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2008 and in our quarterly report on Form 10-Q for the period ending September 30, 2009 filed on the same day under “Special Cautionary Notice Regarding Forward-Looking Statements” and “Risk Factors,” and otherwise in our SEC reports and filings, including the 8-K to which this is an exhibit. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC’s Internet website at http://www.sec.gov.

We have no obligation and do not undertake to update, revise or correct any of the forward-looking statements after the date hereof, or after the respective dates on which any such statements otherwise are made.

Bank of Florida CorporationFinancial Highlights (unaudited)           For the Three Months Ended Sept 30, Jun 30, Mar 31, Dec 31, Sept 30, (dollars in thousands, except per share data) 2009 2009 2009 2008 2008    

Income Statement Highlights

Net interest income before provision $ 9,554 $ 9,435 $ 9,595 $ 9,789 $ 10,921 Provision for loan losses 25,719 9,764 6,693 16,026 6,190 Non interest income 1,595 2,676 1,155 1,195 1,162 Noninterest expense 73,014 12,704 11,031 10,951 11,388 Net (loss) income (78,080 ) (6,500 ) (4,373 ) (10,014 ) (3,445 ) Top-line revenue 10,637 10,760 10,750 10,984 12,055 Basic (loss) income per common share (6.10 ) (0.51 ) (0.34 ) (0.78 ) (0.27 ) Diluted (loss) income per common share (6.10 ) (0.51 ) (0.34 ) (0.78 ) (0.27 )    

Key Ratios

Return on average assets (20.63 )% (1.71 )% (1.15 )% (2.65 )% (0.95 )% Return on average common equity (180.22 ) (14.19 ) (9.23 ) (20.89 ) (6.96 ) Net interest margin 3.02 2.97 2.93 2.89 3.33 Efficiency ratio 1 686.42 118.07 102.61 99.70 94.48 Tangible common equity ratio 2 6.53 7.69 8.08 8.43 8.90 Average equity to average assets 11.73 12.06 12.46 12.70 13.66 Average loans to average deposits 95.67 99.21 104.04 103.84 112.45 Net charge-offs to average loans 4.52 3.29 3.92 0.26 1.72 Loan loss allowance to total loans 3.03 1.96 1.90 2.32 1.14 Loan loss allowance to nonperforming loans 25.32 17.58 21.28 41.10 49.08 Nonperforming loans to total loans 11.98 11.12 8.93 5.63 2.33 Nonperforming assets to total assets 10.79 9.74 7.67 4.95 2.15    

Average Balances

Average loans $ 1,124,263 $ 1,153,183 $ 1,202,566 $ 1,213,371 $ 1,196,918 Average assets 1,513,915 1,520,350 1,521,222 1,509,950 1,448,889 Average earning assets 1,253,064 1,273,066 1,326,285 1,347,990 1,306,053 Average deposits 1,175,086 1,162,340 1,155,918 1,168,491 1,064,440 Average common equity 173,298 183,263 189,578 191,719 197,907       As of Period End       Sept 30, Jun 30, Mar 31, Dec 31, Sept 30,   2009     2009     2009     2008     2008     Total assets $ 1,488,008 $ 1,528,879 $ 1,570,255 $ 1,549,013 $ 1,545,054 Total loans (including unearned income and loan fees) 1,253,257 1,267,349 1,288,177 1,275,311 1,247,802 Total deposits 1,223,369 1,167,052 1,165,267 1,166,282 1,199,705 Stockholders' equity 103,883 180,803 186,334 189,979 196,686 Nonperforming assets 160,604 148,945 120,515 76,670 33,199

Assets under administration - Bank of Florida Trust Company

734,469 630,657 522,541 494,633 439,942 Assets under management - Bank of Florida Trust Company 617,877 515,380 412,661 386,472 372,577    

GAAP reconciliation of tangible book value

Tangible book value per common share $ 7.48 $ 8.70 $ 9.39 $ 9.79 $ 10.31 Effect of goodwill and other intangibles   0.20     4.99     4.99     5.08     5.08   Book value per common share $ 7.68   $ 13.69   $ 14.38   $ 14.87   $ 15.39       1 Efficiency ratio = Noninterest expense divided by the total of net interest income before provision for loan losses plus noninterest income (excluding net securities gains and losses). 2 Tangible Common Equity = Tangible common equity as a percentage of tangible common assets     Bank of Florida CorporationConsolidated Statements of Income (unaudited)           Three Months Ended September 30, June 30, March 31, December 31, September 30, (dollars in thousands, except per share data) 2009 2009 2009 2008 2008   Interest income Interest and fees on loans $ 16,693 $ 16,717 $ 17,299 $ 18,960 $ 19,654 Interest on securities and dividends 1,232 1,351 1,492 1,376 1,302 Interest on federal funds sold   8     1     2     92     24   Total interest income   17,933     18,069     18,793     20,428     20,980     Interest expense Interest on deposits 6,886 7,127 7,686 9,081 8,360 Interest on subordinated debt 109 132 147 234 170 Interest on FHLB & other borrowings   1,384     1,375     1,365     1,324     1,529   Total interest expense   8,379     8,634     9,198     10,639     10,059   Net interest income 9,554 9,435 9,595 9,789 10,921   Provision for loan losses   25,719     9,764     6,693     16,026     6,190   Net interest income after provision for loan losses   (16,165 )   (329 )   2,902     (6,237 )   4,731     Non interest income Service charges & fees 911 560 472 474 464 Gain on sale of assets, net (479 ) 191 29 100 (9 ) Trust Fees, net 651 574 654 621 679 Gains on sale of investment securities   512     1,351     0     0     28   Total noninterest income   1,595     2,676     1,155     1,195     1,162     Noninterest expense Salaries and employee benefits 4,717 5,460 5,211 5,056 5,533 Occupancy expenses 1,819 1,888 1,769 1,766 1,780 Equipment rental, depreciation and maintenance 771 812 837 799 813 General operating   65,707     4,544     3,214     3,330     3,262   Total noninterest expense   73,014     12,704     11,031     10,951     11,388   (Loss) income before taxes (benefit) (87,584 ) (10,357 ) (6,974 ) (15,993 ) (5,495 ) Income taxes (benefit)   (9,504 )   (3,857 )   (2,601 )   (5,979 )   (2,050 ) Net (loss) income $ (78,080 ) $ (6,500 ) $ (4,373 ) $ (10,014 ) $ (3,445 )   (Loss) income per common share - diluted $ (6.10 ) $ (0.51 ) $ (0.34 ) $ (0.78 ) $ (0.27 )   Weighted average common shares outstanding - diluted   12,795,054     12,779,020     12,779,020     12,779,020     12,779,020     Total common shares outstanding   12,968,898     12,947,520     12,955,520     12,779,020     12,779,020       Bank of Florida CorporationConsolidated Balance Sheet (unaudited)           (dollars in thousands)

A S S E T S

9/30/2009 6/30/2009 3/31/2009 12/31/2008 9/30/2008   Cash and due from banks $ 74,836 $ 38,940 $ 55,891 $ 47,064 $ 18,788 Interest bearing due from other banks 281 233 190 561 1,321 Federal funds sold   0     0     241     313     70,650   Total cash and cash equivalents   75,117     39,173     56,322     47,938     90,759     Securities held to maturity 2,187 2,363 3,317 3,316 3,316 Securities available for sale 102,763 102,459 109,741 114,660 88,284   Loans held for sale 172 0 156 - -   Portfolio loans 1,254,472 1,268,786 1,289,582 1,276,985 1,249,663 Less: Allowance for loan losses 38,002 24,778 24,479 29,533 14,264 Unearned income and deferred loan fees   1,387     1,437     1,561     1,674     1,861   Net loans   1,215,083     1,242,571     1,263,542     1,245,778     1,233,538       Restricted securities, Federal Home Loan Bank and other bank stock 8,643 8,467 8,647 9,246 7,347 Premises and equipment 27,776 28,248 29,029 29,501 30,113 Accrued interest receivable 5,245 4,656 5,121 4,990 5,458 Intangible assets 2,569 64,631 64,738 64,850 64,968 Other assets   48,453     36,311     29,642     28,734     21,271   Total assets $ 1,488,008   $ 1,528,879   $ 1,570,255   $ 1,549,013   $ 1,545,054      

LIABILITIES AND STOCKHOLDERS' EQUITY

  Non interest bearing deposits $ 101,881 $ 97,378 $ 101,631 $ 114,905 $ 100,471 MM/NOW 410,706 387,104 383,815 366,349 388,520 Savings 6,248 6,427 6,318 5,752 5,972 CD's < $100k 194,544 118,802 114,083 107,889 115,477 Retail CDAR's   76,881     122,114     124,457     117,308     80,071   Total core deposits 1   790,260     731,825     730,304     712,203     690,512     Brokered CD's 164,098 175,236 211,955 239,507 296,627 CD's (all others)   269,011     259,991     223,008     214,572     212,566   Total deposits   1,223,369     1,167,052     1,165,267     1,166,282     1,199,705     Fed funds purchased - - - - - Subordinated debt 16,000 16,000 16,000 16,000 16,000 Other borrowings 21,908 40,696 80,000 20,000 20,000 Federal home loan bank advances 118,461 118,466 118,470 152,474 108,278 Accrued interest payable 1,973 2,009 2,140 2,286 1,954 Accrued expenses and other liabilities   2,414     3,853     2,044     1,992     2,431   Total liabilities   1,384,125     1,348,076     1,383,921     1,359,034     1,348,368     Stockholders' Equity: Preferred stock 4,300 3,525 - - - Common stock 130 130 130 128 128 Additional paid-in capital 200,746 200,615 200,592 199,862 199,792 Restricted stock (498 ) (559 ) (651 ) - - Accumulated deficit (15,030 ) (15,030 ) (15,030 ) (1,808 ) (1,808 ) Current year net income (loss) (88,953 ) (10,873 ) (4,373 ) (13,222 ) (3,208 ) Other comprehensive income   3,188     2,995     5,666     5,019     1,782   Total stockholders' equity   103,883     180,803     186,334     189,979     196,686   Total liabilities and stockholders' equity $ 1,488,008   $ 1,528,879   $ 1,570,255   $ 1,549,013   $ 1,545,054  

1 Management defines core deposits as the sum of demand deposits, NOW, MMDA, Savings, CDs less than $100 thousand and reciprocal CDARs. The Federal Financial Institutions Examinations Council (FFIEC) defines core deposits as the sum of demand deposits, all NOW and ATS accounts, MMDA savings, other savings deposits, and time deposits under $100 thousand.

                          Summary of Average Rates Changes in Rate & Volume Changes in Net Interest Income

BANK OF FLORIDA CORPORATIONRATE / VOLUME VARIANCE ANALYSISThree months ended September 30, 2009 vs.Three months ended June 30, 2009

($000) ($000) ($000)   September 2009 Quarter-to-Date June 2009 Quarter-to-Date Average Average Average Average Rate Volume Increase (Decrease) Due to Balance Interest Rate Balance Interest Rate Variance Variance Rate Volume Days Diff Total EARNING ASSETS   Total Commercial loans $ 1,088,155 $ 14,303 5.21 % $ 1,101,128 $ 14,436 5.26 % -0.05 % (12,973 ) $ (139 ) $ (153 ) $ 159 $ (133 ) Total Consumer loans 54,338 653 4.77 % 54,481 650 4.79 % -0.02 % (143 ) (3 ) (1 ) 7 3 Total Residential real estate loans 128,746 1,737 5.35 % 125,531 1,631 5.21 % 0.14 % 3,215 44 44 18 106 Overdrafts/ Nonaccrual loans 1   (146,976 )   - 0.00 %   (127,957 )   - 0.00 % 0.00 % (19,019 )   -     -     -   -     Total Loans 1,124,263 16,693 5.89 % 1,153,183 16,717 5.81 % 0.08 % (28,920 ) 233 (441 ) 184 (24 )   Investment Securities 109,256 1,231 4.47 % 114,456 1,350 4.73 % -0.26 % (5,200 ) (75 ) (59 ) 15 (119 ) Federal funds sold 19,293 8 0.16 % 5,000 1 0.08 % 0.08 % 14,293 1 6 - 7 Deposits in banks   252     1 1.57 %   427     1 0.94 % 0.63 %   (175 )   1     (1 )   -   -     Total Interest-earning assets $ 1,253,064 $ 17,933 5.68 % $ 1,273,066 $ 18,069 5.69 % -0.01 % $ (20,002 )   159   $ (494 ) $ 199 $ (136 )   Non interest-earning assets   272,469     254,814     Total Assets $ 1,525,533   $ 1,527,880     INTEREST-BEARING LIABILITIES   Interest Bearing Checking $ 45,925 20 0.17 % $ 50,320 23 0.18 % -0.01 % (4,395 ) $ (1 ) $ (2 ) $ - $ (3 ) Money Market Accounts 338,492 1,339 1.57 % 339,609 1,401 1.65 % -0.08 % (1,117 ) (68 ) (9 ) 15 (62 ) Savings Accounts 6,420 6 0.37 % 6,388 5 0.31 % 0.06 % 32 1 0 - 1 Total Certificates   678,323     5,521 3.23 %   662,368     5,698 3.45 % -0.22 %   15,955     (367 )   127     63   (177 ) Total Deposits 1,069,160 6,886 2.56 % 1,058,685 7,127 2.70 % -0.14 % 10,475 (436 ) 117 78 (241 )   Total FHLB Advances 118,463 1,202 4.03 % 121,511 1,193 3.94 % 0.09 % (3,048 ) 28 (32 ) 13 9 Other Borrowings 32,883 182 2.20 % 40,220 182 1.82 % 0.38 % (7,337 ) 39 (41 ) 2 - Total Subordinated Debt   16,000     109 2.70 %   16,000     132 3.31 % -0.61 %   -     (25 )   1     1   (23 ) Total Other Borrowings 167,346 1,493 3.54 % 177,731 1,507 3.40 % 0.14 % (10,385 ) 41 (71 ) 16 (14 )   Total Interest-Bearing Liabilities $ 1,236,506 $ 8,379 2.69 % $ 1,236,416 $ 8,634 2.80 % -0.11 % $ 90   $ (395 ) $ 46   $ 94 $ (255 )   Demand Deposits 105,926 103,655 Other Liabilities 5,565 4,507 Stockholder's equity   177,536     183,302   Total liabilities and equity $ 1,525,533   $ 1,527,880     Net interest income/net interest spread $ 9,554 2.99 % $ 9,435 2.89 % 0.10 % $ (20,092 ) $ 554   $ (540 ) $ 105 $ 119   Net interest margin 3.02 % 2.97 % 0.05 %

1 For purposes of this analysis, non-accruing loans, if any, are not included in the average balances

                        Summary of Average Rates Changes in Rate & Volume Changes in Net Interest Income

BANK OF FLORIDA CORPORATIONRATE / VOLUME VARIANCE ANALYSISThree months ended September 30, 2009 vs.Three months ended September 30, 2008

($000) ($000) ($000)   September 2009 Quarter-to-Date September 2008 Quarter-to-Date Average Average Average Average Rate Volume Increase (Decrease) Due to Balance Interest Rate Balance Interest Rate Variance Variance Rate Volume Days Diff Total EARNING ASSETS   Total Commercial loans $ 1,088,155 $ 14,303 5.21 % $ 1,048,002 $ 16,961 6.44 % -1.23 % 40,153 $ (3,249 ) $ 591 $ - $ (2,658 ) Total Consumer loans 54,338 653 4.77 % 55,293 791 5.69 % -0.92 % (955 ) (128 ) (10 ) - (138 ) Total Residential real estate loans 128,746 1,737 5.35 % 120,306 1,902 6.29 % -0.94 % 8,440 (285 ) 120 - (165 ) Overdrafts/ Nonaccrual loans 1   (146,976 )   - 0.00 %   (26,674 )   - 0.00 % 0.00 % (120,302 )   -     -     -   -     Total Loans 1,124,263 16,693 5.89 % 1,196,927 19,654 6.53 % -0.64 % (72,664 ) (1,931 ) (1,030 ) - (2,961 )   Investment Securities 109,256 1,231 4.47 % 102,554 1,299 5.04 % -0.57 % 6,702 (147 ) 79 - (68 ) Federal funds sold 19,293 8 0.16 % 6,025 24 1.58 % -1.42 % 13,268 (22 ) 6 - (16 ) Deposits in banks   252     1 1.57 %   557     3 2.14 % -0.57 %   (305 )   (1 )   (1 )   -   (2 )   Total Interest-earning assets $ 1,253,064 $ 17,933 5.68 % $ 1,306,063 $ 20,980 6.39 % -0.71 % $ (52,999 )   (2,101 ) $ (946 ) $ - $ (3,047 )   Non interest-earning assets   272,469     145,843     Total Assets $ 1,525,533   $ 1,451,906     INTEREST-BEARING LIABILITIES   Interest Bearing Checking $ 45,925 20 0.17 % $ 47,392 49 0.41 % -0.24 % (1,467 ) (29 ) - $ - $ (29 ) Money Market Accounts 338,492 1,339 1.57 % 328,099 2,389 2.90 % -1.33 % 10,393 (1,100 ) 50 - (1,050 ) Savings Accounts 6,420 6 0.37 % 6,173 9 0.58 % -0.21 % 247 (3 ) - - (3 ) Total Certificates   678,323     5,521 3.23 %   581,733     5,913 4.04 % -0.81 %   96,590     (1,188 )   796     -   (392 ) Total Deposits 1,069,160 6,886 2.56 % 963,396 8,360 3.45 % -0.89 % 105,764 (2,320 ) 846 - (1,474 )   Total FHLB Advances 118,463 1,202 4.03 % 147,004 1,324 3.58 % 0.45 % (28,541 ) 167 (289 ) - (122 ) Other Borrowings 32,883 182 2.20 % 21,081 176 3.32 % -1.12 % 11,802 (60 ) 66 - 6 Total Subordinated Debt   16,000     109 2.70 %   16,000     199 4.95 % -2.25 %   -     (91 )   1     -   (90 ) Total Other Borrowings 167,346 1,493 3.54 % 184,085 1,699 3.67 % -0.13 % (16,739 ) 16 (222 ) - (206 )   Total Interest-Bearing Liabilities $ 1,236,506 $ 8,379 2.69 % $ 1,147,482 $ 10,059 3.49 % -0.80 % $ 89,024   $ (2,304 ) $ 624   $ - $ (1,680 )   Demand Deposits 105,926 101,044 Other Liabilities 5,565 5,473 Stockholder's equity   177,536     197,907   Total liabilities and equity $ 1,525,533   $ 1,451,906     Net interest income/net interest spread $ 9,554 2.99 % $ 10,921 2.90 % 0.09 % $ (142,023 ) $ 203   $ (1,570 ) $ - $ (1,367 ) Net interest margin 3.02 % 3.33 % -0.31 %

1 For purposes of this analysis, non-accruing loans, if any, are not included in the average balances

           

Bank of FloridaLoan Composition

    Loan Portfolio Balances (Unaudited) (dollars in thousands) September 30, 2009 June 30, 2009 March 31, 2009 December 31, 2008 September 30, 2008 Commercial   Commercial and Industrial $ 114,230 $ 117,518 $ 118,681 $ 115,553 $ 111,462   Commercial Real Estate 674,147 631,748 634,744 595,201 575,734   Construction 84,514 142,339 145,453 187,212 196,917   Land 153,716 153,074 151,168 149,632 159,845               Total Commercial $ 1,026,607 $ 1,044,679 $ 1,050,046 $ 1,047,598 $ 1,043,958   Consumer Residential Mortgage 172,912 170,595 183,909 174,699 155,379   Home Equity 43,118 40,656 39,589 40,355 39,138     Consumer   11,103   11,588   11,611   11,985   11,930 Total consumer   227,133   222,839   235,109   227,039   206,447 Adjustment for Settlement /Deferred Fees -483 -169 3,022 675 -2,603 Total Loans $ 1,253,257 $ 1,267,349 $ 1,288,177 $ 1,275,311 $ 1,247,802   Loans Portfolio Balances by County (Unaudited) (dollars in thousands) September 30, 2009 June 30, 2009 March 31, 2009 December 31, 2008 September 30, 2008 Commercial and Industrial Collier $ 12,347 $ 16,817 $ 24,962 $ 27,741 $ 25,870 Lee 7,480 10,116 8,440 9,292 7,932 Hillsborough 19,085 18,351 17,802 17,469 23,880 Miami-Dade 15,165 15,865 16,466 11,041 12,697 Broward 18,333 17,966 12,246 11,797 10,899 Palm Beach 3,908 3,845 2,794 2,378 1,992 Pinellas 21,397 18,257 20,267 20,212 13,329 Polk 79 - - - -   Other   16,436   16,301   15,704   15,622   14,863 Total Commercial and Industrial $ 114,230 $ 117,518 $ 118,681 $ 115,553 $ 111,462 Commercial Real Estate Collier $ 109,891 $ 102,408 $ 112,362 $ 112,533 $ 116,934 Lee 108,133 117,045 109,395 101,346 93,659 Hillsborough 54,104 39,481 42,941 55,980 45,612 Miami-Dade 61,158 49,377 46,491 48,097 51,109 Broward 139,752 140,420 139,825 119,774 115,828 Palm Beach 51,721 46,478 46,660 43,758 40,389 Pinellas 36,648 28,322 28,328 28,166 30,474 Polk 9 9 64 65 65 Alachua 9,930 9,935 13,121 13,053 13,100   Other   102,800   98,273   95,557   72,431   68,564 Total Commercial Real Estate $ 674,147 $ 631,748 $ 634,744 $ 595,201 $ 575,734 Commercial Construction and Land Collier $ 22,376 $ 27,535 $ 27,563 $ 27,463 $ 31,100 Lee 17,237 16,094 19,301 27,934 36,378 Hillsborough 23,163 27,488 27,974 25,137 25,223 Miami-Dade 17,772 27,228 30,943 30,784 33,492 Broward 35,247 41,664 41,786 48,444 49,444 Palm Beach 13,503 13,397 12,499 15,165 17,544 Pinellas 6,194 20,121 17,404 14,157 10,792 Polk 612 618 618 618 618   Other   12,858   20,083   17,955   38,189   40,537 Total Commercial Construction and Land $ 148,962 $ 194,228 $ 196,043 $ 227,891 $ 245,128 Residential Construction and Land Collier $ 20,309 $ 25,147 $ 22,939 $ 22,327 $ 25,049 Lee 10,469 13,830 13,971 14,564 18,386 Hillsborough 16,249 18,064 16,556 24,465 25,526 Miami-Dade 18,644 18,258 17,134 17,812 15,645 Broward 6,194 12,800 11,866 9,872 7,977 Palm Beach 2,351 2,206 2,132 5,878 8,117 Pinellas 7,526 1,764 1,739 1,482 954 Polk 140 140 3,750 3,750 140   Other   7,386   8,976   10,491   8,802   9,840 Total Residential Construction and Land $ 89,268 $ 101,185 $ 100,578 $ 108,953 $ 111,634 Residential Mortgage & HELOC Collier $ 80,397 $ 77,749 $ 84,795 $ 80,629 $ 77,549 Lee 35,914 34,328 35,854 36,747 37,454 Hillsborough 15,803 15,515 15,632 8,446 7,314 Miami-Dade 35,102 43,412 31,956 31,843 23,923 Broward 30,733 25,342 28,518 29,798 20,681 Palm Beach 3,934 3,535 2,479 2,485 2,152 Pinellas 3,724 3,751 2,550 2,565 2,560 Polk 659 662 665 668 738 Alachua 209 210 - - -   Other   9,555   6,747   21,049   21,873   22,147 Total Residential Mortgage and HELOC $ 216,030 $ 211,251 $ 223,498 $ 215,054 $ 194,517 Consumer Collier $ 1,856 $ 1,753 $ 2,069 $ 2,168 $ 2,159 Lee 979 1,130 1,224 1,110 1,120 Hillsborough 1,597 1,679 1,536 1,569 1,599 Miami-Dade 1,048 2,544 2,514 2,483 2,480 Broward 1,277 1,286 1,433 1,647 1,585 Palm Beach 99 110 165 171 173 Pinellas 1,089 1,120 1,009 1,165 1,208 Polk 70 126 28 28 111   Other   3,088   1,840   1,633   1,643   1,495 Total Consumer $ 11,103 $ 11,588 $ 11,611 $ 11,985 $ 11,930 Adjustment for Settlement /Deferred Fees -483 -169 3,022 675 -2,603 Total Loans $ 1,253,257 $ 1,267,349 $ 1,288,177 $ 1,275,311 $ 1,247,802    

Bank of Florida - ConsolidatedConcentration

                            09/30/09 Balance 06/30/09 Balance 03/31/09 Balance 12/31/08 Balance 09/30/08 Balance Land Raw Land $ 28,892 $ 23,173 $ 27,216 $ 32,201 $ 37,984 Commercial Development 87,207 96,698 86,678 77,556 76,743 Residential Development   37,617   33,203   37,274   39,874   45,118 Total Land $ 153,716 $ 153,074 $ 151,168 $ 149,632 $ 159,845 Construction Loans

Residential

Condominium $ 17,810 $ 18,004 $ 19,415 $ 25,572 $ 24,802 Condo Conversions 7,055 6,927 6,812 6,503 6,466 Single-Family - Spec 16,990 21,375 18,369 18,024 18,038 Single-Family - Owner   9,797   21,676   18,708   18,981   17,210 Total Residential $ 51,652 $ 67,982 $ 63,304 $ 69,079 $ 66,516

Commercial

Office $ 17,206 $ 26,949 $ 24,328 $ 30,125 $ 23,719 Retail 2,880 2,871 9,830 28,284 32,085 Industrial/Warehouse 2,025 5,287 8,320 9,915 11,375 Mini Storage Facility - - - - Hotel - 8,161 5,386 13,014 11,078 Restaurant - 727 733 728 718 Church 3,622 3,257 3,008 137 132 Multifamily (5+ units) 2,732 9,847 9,205 8,377 12,651 Hospital/ACLF - - - - Other   4,397   17,258   21,339   27,554   38,643 Total Commercial   $ 32,862   $ 74,357   $ 82,149   $ 118,133   $ 130,401 TOTAL LAND, CONST, & DEV   $ 238,230   $ 295,413   $ 296,621   $ 336,844   $ 356,762   Permanent CRE Loans Office $ 204,711 $ 201,635 $ 204,449 $ 197,077 $ 194,014 Retail 144,420 140,384 133,518 108,763 100,185 Industrial/Warehouse 111,874 104,526 96,128 92,436 76,678 Mini Storage Facility 11,212 3,705 3,724 3,745 3,764 Hotel 63,202 47,309 48,227 37,149 36,639 Restaurant 6,779 6,397 11,107 11,116 11,151 Church 1,764 1,773 1,663 4,378 4,414 Multifamily (5+ units) 31,766 27,639 23,129 30,674 44,796 Hospital/ACLF 2,024 1,071 1,081 1,095 1,108 Other 96,395 97,309 111,718 108,767 102,986                         TOTAL CRE LOANS   $ 674,147   $ 631,748   $ 634,744   $ 595,201   $ 575,734   Commercial Secured 104,008 108,413 $ 107,227 $ 103,125 $ 100,012 Unsecured 10,222 9,105 11,454 12,427 11,450   Residential Mortgages HELOC 43,118 40,656 39,589 40,355 39,138 Residential 172,912 170,595 183,909 174,699 155,379   Consumer Secured 7,523 7,841 7,972 8,424 8,597 Unsecured 3,580 3,748 3,639 3,561 3,332   Adjustment for Settlement/Deferred Fees     -483     -169     3,022     675     -2,603 TOTAL PORTFOLIO   $ 1,253,257   $ 1,267,349   $ 1,288,177   $ 1,275,311   $ 1,247,802       Non-Performing Assets and Accruing Loans Past Due 30-89 Days (Unaudited) (dollars in thousands)   September 30, 2009   June 30, 2009   March 31, 2009   December 31, 2008   September 30, 2008 Non-Performing Assets       Non-Accrual Loans   Commercial   Commercial and Industrial $ 1,388 $ 4,486 $ 1,943 $ 1,363 $ 246 Commercial Real Estate $ 66,702 $ 37,321 27,517 9,620 8,340 Construction $ 2,698 $ 14,510 13,494 2,259 509     Land   $ 21,035     $ 21,798       18,334       6,890       2,948     Total Commercial   $ 91,823     $ 78,115     $ 61,288     $ 20,133     $ 12,043     Consumer Residential Mortgage $ 25,824 $ 31,770 $ 28,472 $ 18,832 $ 6,220 Home Equity $ 802 $ 926 281 139 774 Construction and Land $ 31,055 $ 29,548 24,732 32,427 9,878     Other   $ 603     $ 592       261       322       149     Total Consumer   $ 58,284     $ 62,836     $ 53,746     $ 51,720     $ 17,021   Total Non-Accrual Loans 1   $ 150,107     $ 140,951     $ 115,034     $ 71,853     $ 29,064   Foreclosed Real Estate   $ 10,497     $ 7,994     $ 5,481     $ 4,817     $ 4,135   Total Non-Performing Assets   $ 160,604     $ 148,945     $ 120,515     $ 76,670     $ 33,199  

1 Also includes Loans 90 days+ and accruing

$ 3,133 $ 2,282 $ 1,887 - $ 1                           (dollars in thousands)   September 30, 2009   June 30, 2009   March 31, 2009   December 31, 2008   September 30, 2008 Non Performing Loans by County (Unaudited) Commercial and Industrial Collier - $ 3,164 $ 206 $ 1,207 $ 221 Lee - 2 55 2 - Hillsborough 536 - - - - Miami-Dade - - 256 16 17 Broward 386 1,005 1,006 8 9 Palm Beach - - - - - Pinellas 466 315 - 100 - Polk - - - - -   Other     -       -       420       32       -   Total Commercial and Industrial   $ 1,388     $ 4,486     $ 1,943     $ 1,363     $ 246   Commercial Real Estate Collier $ 21,942 $ 2,433 $ 838 $ 518 - Lee 10,024 $ 13,180 14,131 7,382 7,243 Hillsborough 844 $ 961 - - - Miami-Dade 6,215 - - - - Broward 7,451 $ 1,804 1,804 - - Palm Beach 8,817 $ 7,748 - - - Pinellas 867 - - - - Polk - - - - - Alachua 9,145 $ 9,145 9,145 - -   Other   $ 1,397     $ 2,050       1,599       1,720       1,097   Total Commercial Real Estate   $ 66,702     $ 37,321     $ 27,517     $ 9,620     $ 8,340   Commercial Construction Collier $ 2,698 $ 2,716 $ 2,612 $ 2,259 - Lee - $ 4,400 4,400 - 509 Hillsborough - $ 438 - - Miami-Dade - - - - - Broward - $ 6,482 6,482 - - Palm Beach - - - - - Pinellas - - - - - Polk - - - - -   Other     -     $ 474       -       -       -   Total Commercial Construction   $ 2,698     $ 14,510     $ 13,494     $ 2,259     $ 509   Commercial Land Collier $ 10,695 $ 12,074 $ 12,321 $ 950 - Lee $ 2,849 $ 2,512 2,516 1,504 608 Hillsborough $ 1,640 $ 1,361 1,361 2,096 - Miami-Dade $ 2,109 $ 2,109 2,136 2,340 2,340 Broward - - - - - Palm Beach - - - - Pinellas $ 233 $ 233 - - - Polk - - - -   Other   $ 3,509     $ 3,509               Total Commercial Land   $ 21,035     $ 21,798     $ 18,334     $ 6,890     $ 2,948   Residential Construction and Land Collier $ 9,622 $ 9,762 $ 1,748 $ 1,960 $ 1,603 Lee $ 4,545 $ 2,978 2,661 3,607 3,273 Hillsborough $ 11,423 $ 11,416 12,202 19,011 1,392 Miami-Dade $ 4,469 $ 4,396 4,320 4,048 - Broward - - - - - Palm Beach - - - 2,386 Pinellas $ 996 $ 996 - - - Polk - - 3,610 3,610 1,224   Other     -       -       191       190       -   Total Residential Construction and Land   $ 31,055     $ 29,548     $ 24,732     $ 32,427     $ 9,878   Residential Mortgage & HELOC Collier $ 11,256 $ 9,710 $ 11,289 $ 5,374 $ 3,413 Lee $ 6,338 $ 6,568 7,198 4,060 756 Hillsborough $ 707 $ 1,639 1,055 1,055 - Miami-Dade $ 4,171 $ 8,991 2,186 1,340 1,880 Broward $ 3,474 $ 4,785 6,662 7,142 945 Palm Beach - - - - Pinellas $ 126 - - - - Polk - - - - -   Other   $ 554     $ 1,003       363       -       -   Total Residential Mortgage & HELOC   $ 26,626     $ 32,696     $ 28,753     $ 18,971     $ 6,994   Consumer Other Collier $ 65 $ 32 $ 50 $ 149 $ 149 Lee - $ 24 59 23 - Hillsborough - - - - - Miami-Dade - $ 36 - - Broward - - - - Palm Beach - - - - Pinellas $ 423 $ 433 - - Polk - - - -   Other   $ 115     $ 67       152       150       -   Total Consumer Other     603       592       261       322       149     Total Non-Performing Loans   $ 150,107     $ 140,951     $ 115,034     $ 71,853     $ 29,064                               (dollars in thousands)   September 30, 2009   June 30, 2009   March 31, 2009   December 31, 2008   September 30, 2008 Collateral Dependant and Nonaccrual Loan Summary                 Impaired loans without a valuation allowance $ 67,292 $ 71,296 $ 27,856 $ 15,896 $ 30,860 Impaired loans with a valuation allowance   91,636       59,316       96,190       65,555       17,164   Total impaired loans $ 158,928     $ 130,612     $ 124,046     $ 81,451     $ 48,024     Valuation allowance related to impaired loans 21,818 11,436 13,920 18,554 3,051 Total nonaccrual loans 146,974 138,669 113,147 71,853 28,502 Total foreclosed real estate 10,497 7,994 5,481 4,817 33,199 Total loans ninety days or more past due and still accruing 3,133 2,282 1,887 — 562                             (dollars in thousands)   September 30, 2009   June 30, 2009   March 31, 2009   December 31 2008   September 30 2008 Accruing Loans Past Due 30-89 Days Commercial Commercial and Industrial 2,272 672 499 833 1,106 Commercial Real Estate 27,126 14,161 2,820 1,107 14,991 Construction 253     Land     28,391       350       7,181       3,703       4,793   Total Commercial   $ 58,042     $ 15,183     $ 10,500     $ 5,642     $ 20,890   Consumer Residential Mortgage 2,159 4,997 14,039 14,258 10,764 Home Equity 1,484 141 1,757 153 157 Construction and Land 669 2,976 10,092 2,598 5,351     Other     251       26       90       77       103   Total Consumer   $ 4,563     $ 8,140     $ 25,978     $ 17,087     $ 16,375     Total Accruing Loans Past Due 30-89 Days   $ 62,605     $ 23,323     $ 36,478     $ 22,729     $ 37,265                                       September 30, 2009   June 30, 2009   March 31, 2009   December 31 2008   September 30 2008 Accruing Loans Past Due 30-89 Days by County Commercial and Industrial Collier $ 503 - $ 8 $ 154 $ 994 Lee 249 25 - - 56 Hillsborough - 310 175 29 25 Miami-Dade 537 122 250 150 - Broward 48 154 - 500 - Palm Beach - - - Pinellas - - 66 - - Polk - 61 - -   Other     936               -       32   Total Commercial and Industrial   $ 2,272     $ 672     $ 499     $ 833     $ 1,106   Commercial Real Estate Collier $ 1,291 $ 8,655 $ 931 - - Lee - 5,486 1,889 - 4,940 Hillsborough - - - - Miami-Dade 14,032 20 - - 2,544 Broward - - - - 6,884 Palm Beach 4,676 - - - - Pinellas - - - Polk - - -   Other     7,127               1,107       624   Total Commercial Real Estate   $ 27,126     $ 14,161     $ 2,820     $ 1,107     $ 14,991   Commercial Construction Collier $ 253 - - - - Lee - - - - - Hillsborough - - - - - Miami-Dade - - - - - Broward - - - - - Palm Beach - - - - - Pinellas - - Polk - -   Other                 -       -   Total Commercial Construction   $ 253       -       -       -       -   Commercial Land Collier - $ 0 - $ 900 $ 950 Lee 544 350 1,620 1,551 Hillsborough 7,691 - 2,096 Miami-Dade - 1,183 186 Broward 12,258 - - Palm Beach 6,943 - - Pinellas - - 3,672 - - Polk - -   Other     955       -       3,509       -       10   Total Commercial Land   $ 28,391     $ 350     $ 7,181     $ 3,703     $ 4,793   Residential Construction and Land Collier - $ 0 $ 8,119 - $ 1,304 Lee 195 2,976 132 212 - Hillsborough 474 1,000 - Miami-Dade - 899 4,048 Broward 488 - Palm Beach - - Pinellas - - 996 - - Polk - -   Other     -       -       845       -       -   Total Residential Construction and Land   $ 669     $ 2,976     $ 10,092     $ 2,598     $ 5,351   Residential Mortgage & HELOC Collier $ 1,939 $ 1,320 $ 6,754 $ 11,894 $ 2,245 Lee 152 3,161 2,762 558 6,417 Hillsborough - - - - 1,055 Miami-Dade 693 531 6,280 532 207 Broward 598 997 Palm Beach - - Pinellas 859 - - Polk - 126 - -   Other                 829       -   Total Residential Mortgage & HELOC   $ 3,643     $ 5,138     $ 15,796     $ 14,411     $ 10,921   Consumer Other Collier $ 24 $ 19 - - - Lee 1 1 5 32 23 Hillsborough - - Miami-Dade - - 36 - - Broward - - Palm Beach - 6 49 - - Pinellas 226 - - Polk - -   Other                 45       80     Total Consumer Other   $ 251     $ 26     $ 90     $ 77     $ 103     Total Accruing Loans Past Due 30-89 Days   $ 62,605     $ 23,323     $ 36,478     $ 22,729     $ 37,265       Total Loans   $ 1,253,257     $ 1,267,349     $ 1,288,177     $ 1,275,311     $ 1,247,802     Ratio of Non-Performing Loans to Total Loans     11.98 %     11.12 %     8.93 %     5.63 %     2.33 %   Ratio of Loans Past Due 30-89 to Total Loans     5.00 %     1.84 %     2.83 %     1.78 %     2.99 %   Ratio of Non-Performing Assets to Total Assets     10.79 %     9.74 %     7.67 %     4.95 %     2.15 %     Quarter to Quarter Changer in Non-Performing Assets Balance at Beginning of Quarter $ 148,945 $ 120,516 $ 76,670 $ 33,198 $ 24,689 Additions 35,848 40,686 56,186 44,831 13,853 Reductions Payments 7,239 701 7 10 43 Return to Accrual Status 1,825 420 Sales of Foreclosed Real Estate 2,597 3,007 555 561 98 Other OREO transferred to Fixed Assets 223 - - - - Charge-off/Writedowns 12,305 8,129 11,779 789 5,204 Total Reductions     24,189       12,257       12,341       1,359       5,344   Balance at End of Quarter   $ 160,604     $ 148,945     $ 120,515     $ 76,670     $ 33,198      

Bank of Florida

  Reserve for Credit Losses (Unaudited)         September 30, 2009   June 30, 2009   March 31, 2009   December 31, 2008   September 30, 2008 Balance at Beginning of Period   $ 24,778   $ 24,479   $ 29,533   $ 14,264   $ 13,232 Loans and Leases Charged-off   Commercial   Commercial and Industrial -434 -409 -1,433 -139 -331 Commercial Real Estate -6,253 -611 -431 -41 -2,278 Construction -1,977 -2,227 -6,517 -120 -1,287 Land -2,323 -5,240 -1,600 -156 -863 Consumer Residential Mortgage -1,327 -743 -1,696 -131 -90 Home Equity -355 -150 -197 -332     Other     -94       -112       -102       -5       -23   Total Loans Charged-Off     -12,763       -9,492       -11,779       -789       -5,204     Recoveries on Loans and Leases Previously Charged-off Commercial Commercial and Industrial 27 3 5 4 24 Commercial Real Estate 12 Construction 6 Land Consumer Residential Mortgage 6 Home Equity 1 1 5     Other     16       4       1       0       2   Total Recoveries on Loans Previously Charged-Off     50       8       6       10       43     Net Loans and Leases Charged-Off -12,713 -9,484 -11,773 -779 -5,162 Provision for Credit Losses2 25,719 9,764 6,693 16,025 6,190 Provision Adjustment 1 263 - - - - Reserve for Unfunded Commitments 2     -45       19       26       23       4   Balance at End of Period   $ 38,002     $ 24,778     $ 24,479     $ 29,533     $ 14,264   1 Isolated adjustment due to timing of transaction; to be reversed in subsequent quarter 2 Unfunded Commitments expense has been reclassified effective 9/30/09 retro to 1/1/2009   Average Loans Outstanding     1,124,263       1,153,183       1,202,566       1,213,371       1,196,918     Ratio of Net Loans Charged-off to Average Loans 4.52 % 3.29 % 3.92 % 0.26 % 1.72 % Outstanding (annualized)

Ratio of Allowance for Loans Losses to Loans Outstanding

3.03 % 1.96 % 1.90 % 2.32 % 1.14 %                   Bank of Florida CorporationCore Earnings Reconciliation(Dollars in millions)   Versus 9/30/2009 9/30/2009 6/30/2009 3/31/2009 12/31/2008 9/30/2008 6/30/2009 9/30/2008 3Q 08     Net Interest Income (1) $ 10.8 $ 10.6 $ 10.6 $ 10.4 $ 11.2 $ 0.2 $ 0.4 ($0.4 )   Fee Income (2)   1.2     1.1     1.1     1.1     1.2     0.1     0.1     -     Gross Income $ 12.0 $ 11.7 $ 11.7 $ 11.5 $ 12.4 $ 0.3 $ 0.5 (0.4 )   Operating Expense (3)   10.0     10.7     10.5     10.1     10.8     (0.7 )   (0.1 )   (0.8 )   Core Earnings (Pre-Tax/Credit) $ 2.0 $ 1.0 $ 1.2 $ 1.4 $ 1.6 $ 1.0 $ 0.6 $ 0.4   Carrying cost of nonaccrual loans (1.3 ) (1.1 ) (1.0 ) (0.6 ) (0.3 ) (0.2 ) (0.7 ) (1.0 )   Provision for Loan Loss (25.7 ) (9.8 ) (6.7 ) (16.0 ) (6.2 ) (15.9 ) (9.7 ) (19.5 )   Pre-Foreclosure/Foreclosed Property Expense (0.7 ) (0.7 ) (0.5 ) (0.8 ) (0.6 ) - 0.1 (0.1 )   FDIC Special Assessment - (0.7 ) - - - 0.7 - -   Write Off of Correspondent Bank Stock - (0.2 ) - - - 0.2 - -   Securities/Interest Rate Swap Gains (Losses), net 0.9 1.3 - - - (0.4 ) 0.9 0.9   Gains (Losses) on ORE/Loan Sales, net (0.4 ) 0.2 - 0.1 - (0.6 ) (0.5 ) (0.4 )   Items Related to Pre - 4Q 08 - (0.3 ) - - 0.3 - -   Costs related to private/public equity raise (0.3 ) (0.1 ) (0.2 ) (0.3 ) (0.3 )   Income Tax Benefit, net   9.4     3.9     2.6     5.9     2.1     5.5     3.5     7.3     Net Operating (Loss) (16.1 ) (6.5 ) (4.4 ) (10.0 ) (3.4 ) (9.6 ) (6.1 ) (12.7 )   Goodwill Impairment Charge   62.0     -     -     -     -     62.0     62.0     62.0       Net (Loss)   (78.1 )   (6.5 )   (4.4 )   (10.0 )   (3.4 )   (71.6 )   (68.1 )   (74.7 )     Diluted Operating EPS (1.26 ) (0.51 ) (0.34 ) (0.78 ) (0.27 )   (Loss) Per Share (6.10 ) (0.51 ) (0.34 ) (0.78 ) (0.27 )     Net Interest Margin 3.02 % 2.97 % 2.93 % 2.89 % 3.33 % 0.05 % 0.13 % -0.31 %   Net Interest Margin - Pre Credit (1) 3.34 % 3.26 % 3.12 % 3.02 % 3.40 % 0.08 % 0.32 % -0.06 %

Notes:

(1) Excluding impact of nonaccrual loans and interest reversals

(2) Excluding securities, interest rate swap and ORE gains & losses

(3) Excluding pre-foreclosure & foreclosed property expenses, goodwill impairment charge, FDIC special assessment, correspondent bank (Silverton) stock write off, professional fees and termination costs related to pre-4Q 08 items, costs related to private/public equity raise

            Bank of Florida Corporation Net Interest Margin Excluding Nonaccruals Calculation (in thousands)   Sep-08 Dec-08 Mar-09 Jun-09 Sep-09   Avg Non-Accruing Loans 27,760 60,851 90,241 142,848 149,507   Avg Total Funding Rate 3.53 % 3.37 % 2.96 % 2.72 % 2.68 %   Avg Earning Assets 1,331,913 1,342,586 1,319,903 1,260,031 1,244,719   Net Interest Margin 3.15 % 3.00 % 2.49 % 3.09 % 3.00 %   Annualized Net Interest Income 41,955 40,278 32,800 38,935 37,342   Annualized Non-Accruing Funding Cost 980 2,051 2,667 3,885 4,007   NIM Excluding Non-Accruing Funding Cost 3.22 % 3.15 % 2.69 % 3.40 % 3.32 %   Quarterly NIM Excluding Non-Accruing Funding Cost 3.40 % 3.02 % 3.12 % 3.26 % 3.34 %   YTD NIM Excluding Non-Accruing Funding Cost 3.57 % 3.42 % 3.12 % 3.19 % 3.24 %