GFB Shareholders Letter-Front - SNL Financial
GFB Shareholders Letter-Front - SNL Financial
GFB Shareholders Letter-Front - SNL Financial
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August 2010<br />
Dear Great Florida Bank Shareholder,<br />
We would like to thank you for all of your support and loyalty during these last few years.<br />
It has been a time of extraordinary economic uncertainty and we appreciate the<br />
confidence you have placed in us as we work diligently to deliver on our promise to<br />
create long-term shareholder value and return the bank to profitability.<br />
It is hard to believe that it was a little more than six years ago, on June 30, 2004, when<br />
Great Florida Bank opened the doors to its first Solution Center at One Biscayne Tower.<br />
It was a momentous occasion for those of us who shared a dream to create an<br />
innovative bank, which truly cares about its owners, customers, associates and this<br />
community. Our business model has reintroduced true, relationship banking in South<br />
Florida, which puts the customer first and uses the latest technology to operate more<br />
efficiently.<br />
Since then, we have achieved many milestones. On June 30, 2010, total assets were<br />
$1.8 billion and our book value per common share was $7.46. Great Florida Bank now<br />
operates 28 Solution Centers in Miami-Dade, Broward and Palm Beach counties.<br />
Notwithstanding these notable achievements, we also experienced one of the greatest<br />
financial crises many of us have ever faced. No one could have predicted the<br />
tremendous impact, and lingering effects, this economic crisis has had on the financial<br />
industry and our country. Due to the severity and longevity of the national recession,<br />
many banks are now required to maintain higher capital ratios as a buffer against the<br />
impact of further financial distress.<br />
Recently, Great Florida Bank entered into a regulatory Consent Order with the FDIC,<br />
agreeing to:<br />
• Increase its Tier 1 Capital to at least 8% of total assets. On June 30 2010, Great<br />
Florida Bank reported a Tier 1 Capital ratio of 5.11%.<br />
• Increase its Total Risk-based Capital ratio to 12% of the Bank’s total riskweighted<br />
assets. On June 30, 2010, Great Florida Bank reported a Total Riskbased<br />
Capital ratio of 10.22%.<br />
Our initial goal over the course of several months is to raise $50 million of equity. This<br />
capital will give us the ability to manage to the requirements of the regulatory Consent<br />
Order. It will also provide us an opportunity to open new solution centers and grow our<br />
core business. We believe our business model is as viable today as it was the day we<br />
opened our doors.<br />
Please contact us for a copy of the Offering Circular, which contains the details of this<br />
offering. Simply choose one of the options below.<br />
• Call us at 305.514.6900, press zero and a representative will assist you.<br />
• Email your name and address to www.investorrelations.com<br />
• Visit our website at www.greatfloridabank.com to review the Offering Circular<br />
online.<br />
Over the course of the next three years, Great Florida Bank will strategically position<br />
itself to grow its core business profitably once economic and financial conditions warrant.
Key highlights of our three-year financial plan include:<br />
1.) Adding new equity capital<br />
2.) Reducing nonperforming and underperforming loans<br />
3.) Opening new Solution Centers<br />
4.) Continuing improvement in operating efficiency through the automation of all<br />
business and operational processes.<br />
We are committed to proactively communicating and maintaining an open, transparent<br />
relationship with our shareholders and customers. If you have not already done so, we<br />
invite you to visit our newly redesigned website where you can get the latest news and<br />
financial information about Great Florida Bank.<br />
Visit us at www.greatfloridabank.com, click on the Shareholder Relations Information link<br />
to access this information. You can also register your email address and automatically<br />
receive email alerts when we post new information.<br />
We know you remain concerned about the value of your investment in Great Florida<br />
Bank. We assure you, every member of our team is focused on prudently managing our<br />
credit risk, reducing operating expenses, and improving our net interest margin to ensure<br />
our future success and the long-term value we provide to you, our shareholders.<br />
Enclosed herein, is the Subscription Agreement and Instructions for this offering. We<br />
encourage you to review carefully the “Offering Circular” in its entirety. As mentioned<br />
above, for your convenience it can be viewed on our corporate website, at<br />
www.greatfloridabank.com. Then follow the four steps outlined in the Subscription<br />
Instructions.<br />
If you have any questions or comments, please feel free to contact one of us, or our<br />
CFO, Mr. Gary Laurash, at (305) 514-6921, or at<br />
investorrelations@greatfloridabank.com. We are always available to speak with you.<br />
Thank you for your continued support,<br />
Mehdi Ghomeshi<br />
Executive Chairman, President and CEO<br />
305.514.6491<br />
mghomeshi@greatfloridabank.com<br />
Kenneth R. Bernstein, Director<br />
305.933.5545<br />
kbernstein@turnberry.com<br />
Neal A. Roth, Director<br />
305.442.8666<br />
nar@grossmanroth.com<br />
Leslie V. Pantín, Jr.<br />
Vice Chairman<br />
305.929.9726<br />
leslie@thinkbsg.com<br />
Daryl Jones, Director<br />
305.218.1547<br />
djones@equivestinc.com<br />
Donald D. Slesnick, II, Director<br />
305.460.5220<br />
donslesnick@scllp.com<br />
John M. Stein, Director<br />
513.746.2200<br />
jstein@fsig.com<br />
08/2010
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