Newsletter

Vol. 2, Issue 5, April 2013
Hello... From Lee Frankhouser - President
It is hard to believe but on March 10th of this year, Floridian Community Bank celebrated its ten year anniversary. The bank has grown from a humble beginning as a single branch bank to the dynamic multi-branch community bank it is today. With this issue of "Our Two Cents" you will see the bank's "Statement of Condition" as of year-end December 31, 2012 and hear from Joe Marzouca, CEO, about the bank's financial performance. Floridian Community Bank had a record year in 2012 and the early 2013 trends look even stronger. The financial results show how the bank continued to grow in 2012 and projections for 2013 support additional growth of at least 15%. The bank continues to achieve all of its strategic objectives thanks to the efforts of a staff that is truly dedicated to professionalism and service to our customers. We hear from customers every day about their positive experiences and the refreshing approach Floridian Community Bank takes to the delivery of financial services in our markets. In this issue you will see many of the faces of the people who make this happen. We hope you enjoy reading the information in this newsletter and will continue to provide noteworthy information in future newsletters throughout 2013. Thank you for your interest in Floridian Community Bank and please continue to tell your friends and neighbors about the bank. I can always be reached at lfrankhouser@flcmbk.com or at 561-632-7885.
Bank News

Dear Valued Clients and Shareholders,

We are pleased to report on Floridian Community Bank's ("FCB") financial results for the year ending December 31, 2012. Total assets grew from $259.3 million to $272.1 million, loans from $160.8 million to $177.0 million, and deposits from $212.5 to $227.7 million for the periods ending December 31, 2011 and 2012 respectively. The four branch offices situated in Broward and Palm Beach counties have continued to gain market share from effective networking efforts and consumers gravitating towards a neighborhood banking environment resulting in a 7% total increase in deposits over the previous year.

Net interest income, which is a barometer of core earnings from balance sheet activity, increased from $8.2 million to $9.1 million over the same period. Income before taxes increased from $1,028,000 to $2,855,000 representing a 178% increase. In 2012, the Bank recognized $257,000 in gains on the sale of certain securities given favorable market conditions at the time compared to $154,000 in securities gains in 2011. Further, in 2012 the Bank recorded accretion income of $417,000 compared to $260,000 in the prior year primarily from the payoff of a loan participation the Bank acquired at a discount in 2010. Also, Management was successful in working out certain distressed loans resulting in the release of $535,000 in specific reserves into income and recording lower losses totaling $92,000 in real estate dispositions compared to $446,000 in the prior year. The 2012 year marks the third year in a row in which the Bank has recorded profits despite the economic hardship that afflicted many South Florida financial institutions.

Statement of Condition

December, 2012 December, 2011
 
Cash & Due From Banks $35,218,303 $39,744,821
Investments 57,158,567 55,677,065
Commercial Loans 41,575,217 54,322,221
Commercial Real Estate Loans 80,360,629 76,733,829
Residential Real Estate & Other 55,060,515 29,759,321
Total Loans 176,996,361 160,815,371
Reserves (2,283,743) (3,282,093)
Loans, Net of Reserves 174,712,618 157,533,278
Fixed Assets 3,517,584 3,788,599
Other Assets 1,460,505 2,605,564
Total Assets $272,067,577 $259,349,327

Checking Accounts 33,282,910 38,030,355
NOW Accounts 2,426,519 8,765,270
Money Market Accounts 147,243,298 125,725,584
Savings 1,393,701 1,018,634
Time Deposits 43,328,005 38,912,129
Total Deposits 227,674,433 212,451,972
Other Borrowings 17,511,453 22,928,581
Other Liabilities 1,114,817 615,559
Total Liabilities 246,300,703 235,996,112
Capital 25,766,875 23,353,215
Total Liabilities & Capital $272,067,578 $259,349,327

FCB's total equity capital has also increased from $23.4 million to $25.8 million as a result of retained earnings. The Bank's Tier One Leverage and Total Risk Based Capital Ratios at year end 2012 were 9.26% and 14.05%, compared to 9.40% and 13.85% at year-end 2011, which exceeds regulatory requirements for a "well capitalized" institution. In comparison to our banking peers in South Florida, FCB's asset quality ratios remain superior. Non-performing assets as a percentage of total assets were 2.52% compared to a South Florida peer average of 6.90%. The aforementioned peer data was provided by Carson Medlin, investment banking firm specializing in the community banking industry.

Lastly, we remain focused on achieving managed growth across our business lines and look for strategic opportunities to expand our presence in markets which complement our own. Despite signs of an improving economy, we continue to maintain a cautious outlook. The Board of Directors primary objective is to protect our shareholders investment while enhancing its value over time.

Lastly, we remain focused on achieving managed growth across our business lines and look for strategic opportunities to expand our presence in markets which complement our own. Despite signs of an improving economy, we continue to maintain a cautious outlook. The Board of Directors primary objective is to protect our shareholders investment while enhancing its value over time.

We thank you for your continued trust and support.

Joseph S. Marzouca
Chief Executive Officer

Need To Refinance Or
Purchase A Home?

We Now Finance Home Mortgage Loans!

Interest rates are still at historic lows.
Take advantage NOW before interest rates increase.

Call today for a NO OBLIGATION Consultation.

Offer of credit is subject to credit approval. *$100 Visa® Rewards Card will be provided if customer calls by June 30, 2013 and closes the loan no later than September 30, 2013. Only one reward card per customer. Please allow 3-4 weeks for delivery of reward card from date of loan closing. This offer does not apply to refinances of existing Floridian Community Bank loans and cannot be combined with any other offer. Floridian Community Bank reserves the right to substitute incentives of equal value due to availability or other reasons. Refer to Visa® Reward Card disclosures, which accompany your card for conditions and terms of use. Visa® is a registered trademark of Visa, Inc. Visa® is not a participant or sponsor of this promotion.

Cleaning Up Your Credit

Feel like cleaning up your credit report is an impossible task? There are many companies out there that offer to clean up your credit report -- for a fee. But most of them do nothing that you can not do on your own. The process of correcting errors on your credit report takes time and patience. Some companies make the claim that they'll clean up your credit report and improve your credit rating immediately. This is almost impossible, so don't take their claims at face value.

Here are a few tips that will help you maintain a good credit rating:
  1. Pay bills promptly
  2. Minimize credit inquiries
  3. Leave cleared credit accounts open
  4. Pay off credit cards monthly
  5. Do not hold more than two major bank cards
  6. Ensure your oldest credit account is in the credit report.
  7. Switch to credit cards with lower rates

If you have anything negative on your credit report due to an error, you should get it removed immediately. Getting just one or two errors can improve your score dramatically. You don't have to pay a fortune to get the errors removed, either. The advantage of the Fair Credit Reporting act is that the consumer can demand verification of any entry on his or her credit report.

Identity theft is now a major issue with credit reporting. Keep a close eye out for this type of fraud, as it can devastate your credit. Make it a point to take advantage of your free credit reports so you can be aware of identity theft as soon as it happens. Keep your finances in order -- it's harder to dispute an entry on your credit report if your affairs are not in order. You need to provide documentation for any dispute.

No issue with your credit can be resolved overnight. Be patient and persistent, it will be worth it in the end.
I just wanted to thank you and your team for helping Screen Graphics finance both our working capital requirements, and more important, realizing a long time goal of finally buying a building. Accomplishing these timely, puts our company to the next level, and we would not have been able to do this without all the hard work you put into this. Working with you and the SBA to work through all the issues was a breeze and made the whole process painless. We had tried to work with another bank on these issues prior to coming to you and the your team made possible, that which they could not. Thanks again for all the help and we look forward to a long and fruitful relationship.

-Nick G. Glaros
President
Screen Graphics of Florida, Inc.

I recently refinanced my home with Floridian Community Bank. Not only did I get the best rate in town but the customer service was friendly, courteous and always helpful. In my dealings with the bank I mostly dealt with Louise Nelson, she was very helpful, patient and friendly. I would recommend this bank to anyone interested in a smooth and easy experience.

-Elliot Merems

Louise Nelson and Floridian Community Bank made refinancing my family home stress free and an uncomplicated experience. The procedure was very organized and occurred in a timely manner. I can't thank the team enough not only for an easy refinance, but always giving me hassle free and friendly banking.

Thank you,

-Naomi Katzowitz, DVM, PA
We acquired commercial property and were in need of financial assistance. We reached out to several regional banks in the area. We are happy and satisfied that we selected Floridian Community Bank for our financial needs. Mr. Beau Marburger was efficient, professional and friendly. He requested and accepted all necessary documentation from us via the Internet and followed through for a timely closing. Mr. Marburger understands the customer and provided a reasonable solution for the client and institute.

All personnel I met at Floridian Community Bank, including the president of the bank Mr. Frankhouser, are eager to help and make our banking experience easier. We see a longer term partnership with Floridian Community Bank and recommend the bank to anyone without any hesitation.

-Suman Patel
Managing Member
Shivam Properties, LLC

I cannot express enough my appreciation for Floridian Community Bank and all its employees. Everyone at Floridian has been extremely helpful and kind to me. I have dealt with almost everyone in the branch from Mrs. Mary McMullen, to the corporate offices, which includes Mr. Beau Marburger and Mr. Lee Frankhouser.

My company has been involved in refinancing transactions with the bank. We also have all of our business accounts with Floridian. All of my experiences with the bank have gone smoothly. Whenever I have a question, it gets answered immediately.

I highly recommend Floridian Community Bank for any business or personal transaction.

-Gary Goldfarb

Floridian Community Bank is proud to provide financial support to Cuore d' Italia - an Italian club that sponsors high school students.
Floridian Community Bank Polo Team
2013 JDRF Walk

Left to right: Elsa Garrandes, Chief BSA, Ulises Alonso, SVP/CFO, Joseph Marzouca, CEO, Lee Frankhouser, President, Andy Sundaram, SVP, Christine Simpson, SVP
  • Residential Mortgages Available
  • Home Equity Lines
  • Commercial Real Estate Loans
  • Professional Lines of Credit
  • Community/HOA/Condo Association Loans
By the way, did we mention we have money to lend?

We'd Like to Welcome Aboard
Scott Toth,
Commercial Market Manager

Scott Toth recently joined FCB as Commercial Market Manager. Scott will work out of the bank's corporate headquarters in Davie and spearhead the growth and maintenance of loan portfolios and the expansion of the bank's commercial client base.

Mr. Toth brings over 16 years of banking experience to Floridian Community Bank, including 12 years in South Florida with banks including First Union (Business Banker), Florida Capital Bank (Market Executive) and most recently Fifth Third Bank (Middle Market Relationship Manager).

Scott received his Bachelors Degree from John Carroll University, and his MBA from Case Western Reserve University, both in Cleveland, Ohio. He is currently Chair of the Revolving Loan Fund in Pompano Beach for the Office of Housing and Urban Improvement, and Chair of the Greater Ft. Lauderdale Alliance BRAVO Committee.

Mortgage Update From Louise Nelson

You May Have Missed the Housing Bottom, But Not the Mortgage Rate Bottom

Over the past several months, it has become somewhat clear that home prices have bottomed and are on the way back up. Especially here in South Florida. While it's still too early to say definitively, it looks like some homes were snatched up at rock-bottom prices a year ago.

Of course, some are also calling it a "mini bubble", otherwise known as a fake recovery, spurred on in part by the record low mortgage rates. Only time will tell...

Meanwhile, mortgage rates have fallen again, with the 15-year fixed sinking into the 2% range, which marks the first time in history the 15-year has broken the 3% barrier. And it seems as though the Fed wants to keep the downward pressure on for a bit longer.

Either way, current rates are savings existing homeowners who can refinance a good amount of money, and they're making home buying a lot more attractive for prospective buyers. Talk to us today to see how these record low interest rates can help you!

Regards,
Louise M. Nelson
VP/Residential Mortgage Sales Manager

5599 South University Drive • Davie, FL 33328 • 954-434-8050

14235 US Highway 1 • Juno Beach, FL 33408 • 561-630-5778

4850 West Atlantic Ave. • Delray Beach, FL 33445 • 561-496-2690

1314 Greenview Shores Blvd. • Wellington, FL 33414 • 561-333-5773


FloridianCommunityBank.com