Quarterly Shareholder Letter

September 19, 2012

Dear Shareholder:

Out of all the banks on the West Coast of Florida, between Naples and Dade City, First Citrus Bank’s loan portfolio outperformed and had the lowest percentage loss during the Great Recession these past four years1. What does this say about our clients? At a fundamental level, businesses that bank at First Citrus are more successful, earn higher profits and their leaders make better management decisions.  This differentiator translates into long term recurring bank profitability and your Bank’s sustainable competitive advantage.

I know of no other bank in Florida that delivers our collaborative style and authentic approach to business banking.  This overlooked need of business, which the banking industry fails to satisfy, is a core competency of the First Citrus Banker.

As we position for increased market share transfer from competitors, Management has restructured the credit delivery platform, realigned personnel and expanded business banking staff over 20%.  The byproduct of the bank’s increased bandwidth will facilitate healthy balance sheet growth and a robust increase in profits in 2013 and beyond.

Your Bank is poised for growth.  Therefore, I encourage you to call us at 813.269.5419 with any referrals or opportunities to serve.  Not only will you be helping the business executive, you are also increasing the value of your investment.

Let’s talk about the numbers.  During the first six months of 2012, First Citrus Bank earned more profits than all of 2011. Pre-tax profits rose to $687,000, which is a $526,000 increase over this period last year.  The quality of the earnings is improved as well.  In 2010 and 2011, First Citrus purchased loans from other banks and the FDIC at substantial discounts. We then sold those same notes at par to different banks, creating extraordinary six-figure annual gains. Today’s increased profitability is driven solely by recurring core accruals from operations.

Total assets are $203 million, due to a $20 million reduction in costly certificates of deposit and $10 million in Federal Home Loan Bank borrowings. We expect deposit levels to rise later in the year to meet the increased funding requirements of the loan portfolio.

 With all the chaos and uncertainty in the economy and around the globe, the need for a quality banking relationship has never been higher.  First Citrus Bankers are deeply committed to making a difference in the lives of business owners, professionals, executives, entrepreneurs and individuals.  It is an honor for me to work with such intelligent, caring and professional bankers.

On behalf of your Board and Management team, thank you for your trust and confidence.  As always, I encourage you to contact me with any questions or comments. A copy of this letter is available on our website at www.FirstCitrus.com.  To receive future shareholder correspondence via email, please send your contact information to


John M. Barrett
President and
Chief Executive Officer


1The Hovde Group – Florida Bank Peer Performance Report – June 30, 2012