First Green Bank Investor Relations

About UsInvestor Relations

Introduction

First Green Bancorp, Inc., parent company of First Green Bank, is proud of First Green Bank’s financial performance as well as the values performance it has achieved in the first five years of operation. First Green Bank is presently over $300 million in assets and operates five branches throughout Central Florida.

Background

My wife, Cindy, and I are life long Lake County residents, both being born in Eustis a week apart. Our fathers were both born and raised here as well. After graduating from FSU with a business degree, I worked in the banking industry for almost 10 years becoming the Senior Vice President and Senior Lender for SouthTrust Bank in Volusia County. I left the industry and went to UF Law in 1990, graduated, practiced law, then went back into banking. All that is to say that we are completely immersed in our community and pretty much know all the professionals in Central Florida. We started our first bank, Florida Choice, in 1999 and sold it in 2006 for a record multiple to Alabama National Bank. Eighteen months later, Alabama National sold to RBC. Therefore, my initial investors returned about seven times their investment in seven years. After a cross-country trip which involved long periods of deep introspection – otherwise known as windshield time – I decided that I wanted my next endeavor to encompass a values proposition as well as provide a handsome return for investors. We were granted the last bank charter in the State of Florida on December 22, 2008 and we opened for business February 17, 2009. However, that creates a very fortunate opportunity for us as we have very little competition.

2020 Vision

I want to extend a sincere thanks to all of our current shareholders for embarking on this endeavor with us.

Sincerely,

Ken LaRoe

Founder and CEO

Contact

Values Proposition

First Green Bank was the first bank on the East Coast of the United States with a stated values proposition. The Bank was asked to join the Global Alliance for Banking on Values (“GABV”) in 2012 and became the 22nd financial institution to join that organization. The GABV is an international and independent network of banks using finance to deliver sustainable development for unserved people, communities, and the environment. As a result of our evolving understanding of the meaning and implementation of our mission, we have embarked on multiple endeavors to influence and educate. The first and ongoing initiative was the formation and development of the First Green Foundation, a 501(c)(3) non-profit. The Foundation began offering grants for installation of solar photovoltaic (“PV”) and hot water systems. To date, $41,000 has been awarded for 214kW in PV and 28 hot water systems. In an attempt to encourage the use of renewable energy, the Bank created a loan product to provide 100% financing at affordable rates and terms for the purchase and installation of solar PV and hot water systems. To date, $470,740 has been closed in these loans and the bank is responsible for 125.802 kW in PV.

Additionally, virtually every aspect of the operation of the Bank has been evaluated and programs implemented to maximize the values proposition. A summary is as follows:

Paperless statements are strongly encouraged at account opening and are used by 83% of our customers
Remote Deposit Capture has been implemented and is being promoted to reduce trips to the bank.
All bank facilities are either built to or converted to the highest level of sustainability attainable. The headquarters building is LEED Platinum
- the Orlando office is LEED Silver Interior
- the Clermont office was upgraded and fitted with solar PV
- the Ormond office was upgraded to reduce energy consumption
- Winter Park office is pending LEED Gold
Electric vehicle charging stations at most locations
Strategic Plan, Budget and Goals and Objectives integrate values programs and measurement.
Exhaustive co-worker benefits

Accolades

Management of the Bank continues to rank in the top of the state in terms of performance of all banks and especially performance to peer. The team has proven its ability to accomplish exceptional performance while simultaneously pursuing its value proposition. Some of the awards and commendations the Bank has received are as listed below:

Bauer Financial 5 Star rated – The only bank in Lake County, and one of a select few banks in all of Florida, to receive this rating for eleven consecutive quarters
Bauer Financial 5 Star rated – The only bank in Lake County, and one of a select few banks in all of Florida, to receive this rating for eleven consecutive quarters
Peer Group Rankings – See below for the most recent results for 3rd Quarter 2013:
- FIG Partners: #1 in Asset Quality in Central Florida as measured by the Texas Ratio
- Hacker Johnson and Smith CPA:
  - #1 in Asset Quality in Central Florida as measured by Non-current Assets to Assets and tied for #1 in the state
  - #1 in Loan Growth in Central Florida and 9th in the state
  - #1 in Asset Growth in Central Florida, again achieved even with De Novo limits placed by the FDIC; and, Highest Net Interest Margin in Central Florida at 4.43
- Hovde Group: #1 in Central Florida in: Non-performing Assets to Total Assets at .27
  - #1 in Texas Ratio
  - #1 in Central Florida and #9 in the state in Loan Growth
  - #1 in Central Florida and 6th in the state in Net Interest Margin at 4.43%.
- Monroe Financial Partners: #1 in Asset Quality in Central Florida

2010
- Florida Trend Magazine – “Florida’s Best Companies to Work For”
2011
- Orlando Sentinel – “Top 100 Companies for Working Families”
- US Green Building Council [Central Florida Chapter] – “2011 Business of the Year”
- Florida Trend Magazine – “Florida’s Best Companies to Work For”
2012
- American Banker – “America’s Greenest Banks”
- Investing Answers – One of “The 359 Safest Banks in America” based on Texas Ratios
- One of “The 359 Safest Banks in America,” by Investing Answers in 2012 – based on Texas Ratios.
- Outside Magazine – “Top 100 Best Places to Work”
- Sustainable Florida – Best Practice Awards, “Small Business” and “Green Building”
- Florida Trend Magazine – “Florida’s Best Companies to Work For”
- Orlando Sentinel – “Top 100 Companies for Working Families”
2013
- Orlando Business Journal – “Fast 50”
- Orlando Business Journal – “Florida Fast 100”
- Grow Florida – “Florida Companies to Watch: Top 50 Winner”
- American Banker – “Best Banks to Work For”
- Orlando Business Journal’s Annual Reader’s Choice Award – “Company with the Best Green Business Practices”
- Sustainable Florida – Best Practice Awards, “Small Business” and “Green Building”
- Financial Brand – “Highest Facebook Engagement Rate of #100 global community banks and credit unions,” First Green Bank was named #50
- Ernst and Young’s Entrepreneur of the Year Award, CEO Ken LaRoe was a finalist
- Orlando Sentinel – “Top 100 Companies for Working Families”
- Outside Magazine – “Top 100 Best Places to Work”
2014
- American Business Awards – Silver Stevie Award for “Company of the Year – Banking, Financial Services, and Insurance”
- Orlando Business Journal’s C-Level Awards – Daniel Dean, Head Technology Officer
- Orlando Sentinel – “Top 100 Companies for Working Families”
- Orlando Business Journal – “Fast 50”
- Orlando Business Journal – “Florida Fast 100”
- Ernst and Young’s Entrepreneur of the Year Award, CEO Ken LaRoe was a finalist
- Sustainable Florida – “Best Practice Awards for Large Business and Leadership”
- Outside Magazine – “Best Companies to Work for”
- American Banker – “Best Banks to Work”

Best of: Articles

Directors Profile

Business Plan

As First Green Bank approaches 5 years in operation, the bank has perfectly executed its business plan while complying with all regulatory initiatives. Branching continues with the one branch per year strategy. The Bank’s Orlando branch opened in December 2012 and has been met with outstanding response as reflected in the October 31, 2013 month end footings of $17.3 million in loans and $21.5 million in deposits. The Winter Park branch opened April 1, 2014 and has been met with extraordinary response as well. This branch location is strategically situated on the highest trafficked corridor in the most affluent and influential market in Central Florida.

Audited Consolidated Financial Statements

2013 Consolidated Balance Sheets

Assets – ($ in thousands, except per share amounts)

At December 31,20132012

Cash and due from banks8,8516,369

Interest-earning demand deposits in other banks2500

Federal funds sold04,170

Total cash and equivalents9,10110,539

Securities available for sale21,34224,476

Loans, net of allowance for loan losses of $2,685 and $1,959198,908149,644

Premises and equipment, net13,08910,112

Federal Home Loan Bank stock, at cost510246

Accrued interest receivable924786

Deferred tax asset343481

Bank-owned life insurance3,8603,740

Other assets181163

Total assets$248,258200,187

Liabilities and Stockholders’ Equity – ($ in thousands, except per share amounts)

Liabilities20132012

Noninterest-bearing demand deposits49,04537,721

Savings, NOW and money-market deposits64,12659,352

Time deposits97,19380,065

Total deposits210, 364177,138

Federal Home Loan Bank advances6,000–

Other liabilities1,7901,331

Total liabilities218,154178,469

Stockholders’ Equity20132012

Senior Non-Cumulative Perpetual Preferred Stock4,7274,727

Common stock, $5 par value; $10,000,000 shares authorized11,8208,835

Additional paid-in capital13,9549,154

Retained earnings (accumulated other comprehensive (loss) income172(1,085)

Accumulated other comprehensive (loss) income(569)87

Total stockholders’ equity30,10421,718

Total liabilities and stockholders’ equity$248,258200,187

Consolidated Statements of Comprehensive Income 2013

Change in unrealized gain on securities – (in thousands)

At December 31,20132012

Net Earnings$1,304856

Other Comprehensive Loss

At December 31,20132012

Unrealized (loss) gain arising during the year(1,133)64

Reclassification adjustment for realized loss (gains)81(360)

Net change in unrealized gain(1,052)(296)

Deferred income taxes on above change396111

Total other comprehensive loss(656)(185)

Comprehensive income$648671

Year to Date Financial Summary 2014

Six Months Ended June 30, 2014

Variance

Net Interest Margin	Actual	Budget	Dollar	Percent
Earning Asset Yield	5.35%	5.19%	84,434	0.15%
Cost of Funds	0.72%	0.76%	-38,765	-0.04%
Net Interest Spread	4.40%	4.20%	123,199	0.20%
Net Interest Margin	4.63%	4.46%	123,199	0.17%
Value of 1 basis point, annualized	23,706	24,068	-362	-1.50%

Income Summary	Actual	Budget	Dollar	Percent
Net Interest Income	5,446,382	5,323,184	123,199	2.31%
Provision for Loan Losses	353,754	297,000	56,754	19.11%
Non-Interest Income	360,509	448,275	-87,766	-19.58%
Non-Interest Expense	4,118,632	4,456,820	-338,188	-7.59%
Earnings Before Taxes	1,334,506	1,017,638	316,867	31.14%
Income Tax Expense	454,920	381,000	73,920	19.40%
Net Income	879,586	636,638	242,948	38.16%

Balance Sheet	Actual	Budget	Dollar	Percent
Assets	287,990,731	280,765,531	7,225,200	2.57%
Loans	228,905,452	223,740,817	5,164,635	2.31%
Earning Assets	253,999,720	254,960,514	-960,794	-0.38%
Deposits	253,043,416	246,292,228	6,751,187	2.74%
FHLB Advances & Other Borrowings	0	0	0	0
Stockholders’ Equity	33,233,098	32,876,144	356,954	1.09%

Year to Date Financial Summary 2013

Five Months Ended June 30, 2013

Variance

Net Interest Margin	Actual	Dollar	Percent
Earning Asset Yield	29.74%	1,078,078	24.39%
Cost of Funds	5.12%	-28,315	-4.40%
Net Interest Spread	23.13%	1,106,393	-18.73%
Net Interest Margin	24.79%	1,106,393	-20.16%
Value of 1 basis point, annualized	3,531	20,175	571.43%

Income Summary	Actual	Dollar	Percent
Net Interest Income	4,339,989	1,106,393	25.49%
Provision for Loan Losses	498,246	-144,492	-29.00%
Non-Interest Income	329,941	30,568	9.26%
Non-Interest Expense	3,615,787	502,844	13.91%
Earnings Before Taxes	515,897	778,609	140.06%
Income Tax Expense	122,915	332,005	270.11%
Net Income	432,982	446,604	103.15%

Balance Sheet	Actual	Dollar	Percent
Assets	234,875,573	53,115,158	22.61%
Loans	186,374,540	42,530,911	22.82%
Earning Assets	212,307,609	41,692,112	19.64%
Deposits	206,633,819	46,409,597	22.46%
FHLB Advances & Other Borrowings	0	0	0
Stahekolders’ Equity	27,170,596	6,062,502	22.31%

Peer Comparisons

Hovde Group 6/30/2014

BALANCE SHEET		Central FL (out of 28)	Statewide (out of 186)
Total Assets	$287,979,000	11	81
Loan Growth	27.1%	4	25

Trans Dep / Total	25.10%	14	127

INCOME STATEMENT
ROA	0.67%	9	59
ROE	5.85%	11	74
NIM	4.60%	2	10
Yield on Loans	5.63%	5	39
Efficiency Ratio	71.10%	10	49

CREDIT QUALITY
NPA / Total Assets	0.29%	2	11
Adj. NPA / Total Assets (YTD)	0.00%	1	1
Adj. NPA / Total Assets (2013)	0.00%	1	1
Reserves / Loans	1.33%	23	55
NCOs / Loans	0.00%	13	52
Texas Ratio	0.0%	1	1
OREO	0	N/A

CAPITAL
Equity / Assets	11.549%	6	49