Bank of Florida pulls TARP-fund application

Naples-based Bank of Florida Corp. a $1.5 billion-asset multi-bank holding company said that it is withdrawing its application for TARP (Troubled Assets Relief Program) funding.

"TARP has evolved and changed significantly since we submitted our application in late 2008," said Michael L. McMullan, president and CEO. "At that time, we understood the program to be targeted at healthy institutions that were in a position to help lead the economic recovery in their respective

markets, instead of what is now perceived to be a government bailout

of weaker financial institutions. Although the TARP funding, to date, has served as a catalyst to stabilize many financial institutions' capital ratios, details of what the government now expects of TARP recipients, and the heightened oversight and cost that may result, have made it clear that the current structure of TARP is no longer in line with our strategic initiatives, which include potential acquisitions."

Mr. McMullan said Bank of Florida is in the top 35 percent of all publicly traded commercial banks in the United States with regard to tangible equity to tangible assets ratio. It is also in the top 20 percent in terms of tangible equity plus loan loss reserves as a percentage of tangible assets.

"We believe we have the capital to continue to weather this economic storm," Mr. McMullan said.

On Dec. 31, the bank's tangible equity, as a percentage of tangible assets, totaled 8.43 percent and tangible equity plus loan loss reserves as a percentage of tangible assets totaled 10.42 percent.

Bank of Florida Corp. is a $1.5 billion asset multi-bank holding company and is the parent company for Bank of Florida - Southwest in Collier and Lee counties. Information may be found on the company's Web site, www.bankofflorida.com.