~ Member E.1 FDIC EQUAL HOUSING LENDER

first florida integrity bank

first florida integrity bank

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A newsletter for shareholders of First National Bank of the Gulf Coast

MESSAGE FROM OUR CHAIRMAN AND CEO

Dear Shareholders, Customers and Friends,

It has been just over ten months since we opened our Naples offices and relocated our headquarters to Naples. In that time, we have grown from $82 million to $268 million in total assets and from $44 million to $239 million in total deposits. The level of market acceptance has greatly exceeded our expectations. We consider the increase in deposits as a vote of confidence in your Bank, the products offered and the management, staff and Board of Directors. We believe that the service we provide, which consistently exceeds the expectations of our customers, will reward us with loyalty and give us unprecedented opportunities.

The  local economies in  both  Collier  and  Lee  counties continue  to  experience  the  ramifications of high unemployment and depressed real estate values. Since we opened our Naples offices in late October of 2009, there have been six community bank failures in Collier County. In addition, the implementation of the recently passed Dodd Frank Regulatory Reform Bill may require that the other banks focus more attention on the regulatory burdens of the bill rather than on customer service. However, First National Bank already has sufficient  staffing  and  infrastructure  to  ensure  compliance  and  will continue  to  exceed  our  customers’ expectations. The current banking environment is highly unique and the Bank is poised to take advantage of every opportunity to gain significant market share. We are exploring all strategic initiatives which will enable the Bank to assume a leadership role in Southwest Florida.

During  the  first six months,  the Bank incurred a net loss of $3.4 million, which  is  in  line with our original operating plan. As I have stated before, we do not expect to reach profitability until early 2012, as it takes time to build our earning asset base. We continue to be highly capitalized, which demonstrates that First National Bank of the Gulf Coast remains financially solid. While the prevailing economic environment is challenging, we will continue to take steps that will preserve the long­term safety and soundness of the Bank and maintain our capital ratios at levels equal to or above the well capitalized mark.

Quality loan growth of $37 million supplemented the deposit growth during the first six months of 2010. While loans increased nearly 100% during the first half of the year, the quality of the existing portfolio remains very strong. We are steadfast to our philosophy of “quality before growth.”

In the past, earning assets consisted almost exclusively of loans; however, in the current economy, deposit growth will continue to outpace quality loan growth. Thus, we have expanded our investment portfolio by $108 million since the beginning of the year. We conservatively select investments for the portfolio by primarily targeting short and intermediate term, highly rated governmental backed securities, but with an emphasis on measured risk. Additionally, we review the portfolio no less than monthly for any signs of concern. As of June 30, 2010, our investment portfolio reflected unrecognized gains of more than $2 million.

We are excited to report that we will be relocating our Kraft Road retail banking office to the former Colonial Bank facility facing Pine Ridge Road. The purchase of this facility will provide drive­in features not currently available at the main office. We anticipate the grand opening to be held October 26, 2010.

On behalf of the Board of Directors, officers and staff, I would like to thank you for your ongoing support as we continue to provide the superior customer service you deserve. If you haven’t done so already, please stop by one of our three offices for a cookie and visit with a personal banker to establish your banking relationship.

Very truly yours,

Chairman and CEO

STATEMENT OF OPERA TIO NS For the six months ended (dollars in thousands, except per share data) June 30, 2010

Interest Income $ 3,446 Interest Expense 1,184

Net interest Income 2,262 Provision for Loan Losses 555 Non-Interest Income 179 Non-Interest Expense 5,295

Net Loss $ (3,409)

Net Loss Per Share $ (0.64)

PERIOD END BALANCES (dollars in thousands, except per As of June 30, 2010 As of December 31, 2009 share data)

Assets $ 268,094 $ 122,060 Loans (includes loans held for sale) 76,001 39,142 Investments 142,774 34,418 Interest Bearing Deposits (includes federal funds sold) 20,086 21,255 Deposits 232,900 86,329 Stockholders' Equity 33,893 35,014

Book Value Per Share 6.38 6.59 Tangible Book Value Per Share 5.40 5.61

FINANCIAL RATIOS As of .June 30, 2010 As of December 31, 2009

Tier One Leverage Ratio (1) 10.96% 27.96% Risk Based Capital Ratio 21.34% 41.46% Return/(Loss) on Average Assets (1) -3.57% -8.39% Return/(Loss) on Average Equity (1) -24.31% -28.86% Net Interest Margin 2.72% 2.98% Loans to Deposits 32.63% 45.34% (1) Excludes Intangibles

ASSET QUALITY DATA As of June 30, 2010 As of December 31, 2009

Allowance for Loan Losses (percent of total loans)

Net Charge Offs to Average Loans Outstanding Non-Performing Loans to Total Loans Non-Performing Assets to Total Assets

1.00% 0.00% 0.00% 0.00%

The Bank's Report on Form 10-Q can be found on our website at www.fnbofgc.com.

0.54% 0.00% 0.00% 0.00%

SPECIAL NOTE CONCERNING FORWARD-LOOKING STATEMENTS: Certain statements in this report are "forward-looking" within the meaning of the Private Securities Litigation Reform Act of 1995, which statements generally can be identified by the use of forward-looking terminology, such as "may", "will", "expect", "estimate", "anticipate11 ,

"believe", "target", "plan", "project" or"continue" or the negatives thereof or other variations thereon or similar terminology, and are made on the basis of management's current plans and analyses of the Bank, its business and the industry in which it operates as a whole. These forward-looking statements are subject to risks and uncertainties, including, but not limited to, economic conditions, competition, interest rate sensitivity and exposure to regulatory and legislative changes. The above factors in some cases have affected, and in the future could affect, the Bank's financial perfonnance and could cause actual results to differ materially from those expressed in or implied by such forward-looking statements. The Bank does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expresses or implied therein will not be realized. first florida integrity bank

first florida integrity bank

F I N A N C I A L   H I G H L I G H T S   ( u n a u d i t e d )

              

    

      

     

          

      

    

                   

 

SAVETHEDATE!

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Join us for the First National Bank of the Gulf Coast 2ND ANNUAL CHARITY GOLF TOURNAMENT

Saturday, October 16, 2010 Hideout Golf Club

Lunch Provided • Team Awards Longest Drive Prizes • Closest to the Pin Prizes

For more information, contact Heather Tice heathertice@fnbofgc.com or 239.325.3750

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first florida integrity bank

first florida integrity bank

F N B   I N   T H E   N E W S

Mayor Bill Barnett drawing the winning ticket

Go Green Giveaway Contest Winner: John Vorbach with CEO, Gary Tice 

Go Green GiveawayContest Winner

First National Bank of the Gulf Coast prides itself on doing its part to conserve natural resources. To that end, in celebration of our grand opening, the Bank gave away a 2010 Ford Fusion Hybrid. The contest began on February 1, 2010 with the winning ticket drawn on April 15, 2010 by Naples Mayor Bill Barnett. The lucky winner was John Vorbach, who was presented with the car at his home the following day.

Our Second Annual Charity Golf Tournament will be held on October 16, 2010 at Hideout Golf Club. All proceeds will be donated to Youth Haven and Foster Care Council of Southwest Florida. A full field of golfers was sold months before the tournament, and sponsorships have been tremendously successful as well. Last years tournament raised  just  over $21,000  for Laces  of  Love  and The  Ricky  King Foundation, and we are well on our way to exceeding that number. This is one way that First  National  Bank  of  the  Gulf  Coast  gives back to our community. We  are  excited  to  support  such  worthy organizations and are looking forward to a successful event.

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              first florida integrity bank

first florida integrity bank

LOCATIONS

First National Bank of the Gulf Coast

3560 Kraft Road • Naples, FL 34105 • Telephone (239) 348­8000 Lobby: Monday–Friday 9:00 am­5:00 pm

811 Anchor Rode Drive • Naples, FL 34103 • Telephone (239) 649­6000 Lobby:

Monday–Thursday 9:00 am­4:00 pm Friday 9:00 am­5:00 pm

Drive­thru: Monday–Thursday 8:00 am­5:00 pm

Friday 8:00 am­6:00 pm Saturday 8:30 am­12:00 pm

50 Joel Boulevard • Lehigh Acres, FL 33936 • Telephone (239) 303­7310 Lobby:

Monday–Thursday 9:00 am­4:00 pm Friday 9:00 am­5:00 pm

Drive­thru: Monday–Friday 8:00 am­5:00 pm

Our annual shareholders’ meeting will be held Monday, May 9, 2011 at The Ritz­Carlton Golf Resort, located at 2600 Tiburon Drive Naples, FL 34109. The annual meeting will begin at 6:00 p.m.

with a reception immediately following the meeting.

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