Second Quarter Earnings Double at Bank of Florida Corp

Business Wire, July 26, 2007

Loan Growth and Asset Quality Remain Strong; Old Florida Acquisition Immediately Accretive to Earnings per Share

NAPLES, Fla. -- Bank of Florida Corporation (Nasdaq:BOFL), a $1.3 billion-asset multi-bank holding company based in Naples, Florida, today reported net income of $1.2 million for second quarter 2007, up 125% over the same period last year. Earnings per diluted share were $0.10, a 43% increase over second quarter 2006, with approximately 4.4 million more in average shares outstanding. The increase in shares outstanding includes the combined issuance of 3.7 million common shares for acquisitions in the past 11 months (Old Florida Bankshares, Inc. in April 2007 and Bristol Bank in August 2006), with an additional 2.9 million shares in a May 2006 public offering.

For the first six months of 2007, net income reached $2.1 million or $0.19 per diluted share, up 121% and 36%, respectively, over the same 2006 period. Compared to first quarter 2007, second quarter net income increased 43%, while diluted earnings per share rose $0.01 or 11%. For both second quarter 2007 and year-to-date, the growth in top-line revenue (a non-GAAP measure which the Company defines as net interest income plus noninterest income, excluding net securities gains/losses) exceeded the growth in noninterest expense, signifying continued positive operating leverage.

Michael L. McMullan, Bank of Florida Corporation's CEO and President, stated, "This was truly a formative quarter for Bank of Florida Corporation, with the closing on April 24 of the $283-million-asset Old Florida Bankshares, Inc. ("Old Florida") acquisition, the second and largest acquisition in our nine-year history. At nearly $1.3 billion in total assets across our three banking subsidiaries and trust company, we are now the fourth largest publicly-traded commercial bank holding company in Florida based on market capitalization.

"In addition, we have been engaged in integration planning of the Old Florida acquisition since September of 2006. This system conversion will occur over the next couple of months and is expected to improve operating productivity and customer service company-wide, as well as reduce redundant computer costs and bring additional fee-generation opportunities. Further savings are scheduled, including the closing of a branch facility in South Lee County, which is located in the same shopping center as our recently opened Bonita Springs branch, and the merging of our two operations centers.

"At the same time, earning asset generation continued briskly during the quarter. From an organic growth (which the Company defines as growth on assets excluding the impact of acquisitions) perspective, the Company increased loans $68 million during the quarter, the largest increase in our history and well on our way to 25% growth for the year. The remaining $207 million increase in loans was driven by the Old Florida acquisition. Over the past 12 months, excluding both the Old Florida and Bristol Bank acquisitions, loans have risen $217 million or 36%, indicative of the continuing strength and diversity of our geographic markets."

McMullan concluded, "The more than doubling of second quarter 2007 earnings over the same period last year primarily reflects the impact of loan growth, both organically and from our two acquisitions, offsetting a net interest margin that has narrowed reflective of financial market trends. Noninterest income climbed 29%, largely driven by our acquisitions, as well as the performance of Bank of Florida Trust Company, whose assets under management reached $514 million at June 30, 2007, an increase of $130 million or 34% during the past 12 months. Positive operating leverage of $1.1 million improved our efficiency ratio by 2.7 percentage points to 78% and continued excellent asset quality was reflected in the level of provision booked for the quarter. These same factors largely explain the $375,000 or 43% increase in second quarter 2007 earnings over the first quarter."

Specific performance factors for second quarter 2007 are below.

* Loans totaled $1.1 billion at June 30, 2007, increasing $275 million during the second quarter, $207 million of which was contributed by the Old Florida acquisition. The balance of the loan growth, or $68 million, exceeded the $56 million increase in second quarter 2006 and represents the largest quarterly organic increase in the Company's history. The primary factors explaining organic growth during the second quarter were $28 million more in condominium and commercial office construction loans; an $18 million increase in permanent loans on commercial offices; $7 million more in commercial and industrial loans; and $6 million more in residential mortgages. Over the past 12 months, the loan portfolio has increased $500 million or 82%; excluding the Company's two acquisitions, growth has been $217 million or 36%. As of quarter end, 49% of the Company's loans adjust within 90 days to a change in the prime rate or LIBOR.