Bank Of Florida Corp. Records Deferred Tax Asset Valuation Allowance And Revises Fourth Quarter And Year-End 2009 Financial Results

Bank of Florida Corporation (NASDAQ: BOFL) announced that it has recorded a $38.8 million valuation allowance on its deferred tax assets for the quarter ended December 31, 2009. Consequently, the carrying value of the Company’s deferred tax asset has decreased by approximately the same amount.

As a result of the valuation allowance, income tax expense was $26.8 million in the fourth quarter of 2009, compared to the previously reported tax benefit of $12.0 million. Income tax expense was $10.8 million for the year ended December 31, 2009, compared to the previously reported tax benefit of $28.0 million. The net loss available to common shareholders for the fourth quarter of 2009 was $58.6 million, or $4.58 per diluted share, as opposed to the previously reported $19.8 million, or $1.55 per diluted share. The net loss for the year ended December 31, 2009 was to $147.6 million, or $11.54 per diluted share, as opposed to the previously reported $108.8 million, or $8.51 per diluted share.

“Following an additional review of our deferred tax asset, we determined that a valuation allowance was necessary given our expectations for loan loss provisions, loan workout expenses, and net charge-offs in 2010,” said Chief Executive Officer Michael L. McMullan. “Should economic conditions improve and our credit-related expenses begin to moderate, we could place greater emphasis on our taxable earnings forecast, which would support the realization of some or all of our deferred tax asset.”

Bank of Florida Corporation

Bank of Florida Corporation. (Nasdaq: BOFL) is a $1.4 billion-asset multi-bank holding Company located in Naples, Florida. Bank of Florida Corporation is the parent company for Bank of Florida - Southwest in Collier and Lee Counties; Bank of Florida – Southeast in Broward, Miami-Dade and Palm Beach Counties; Bank of Florida – Tampa Bay in Hillsborough and Pinellas Counties; and Bank of Florida Trust Company, collectively referred to as the “Company”. Investor information may be found on the Company’s web site, http://www.bankofflorida.com, by clicking on "Investor Relations." To receive an email alert of all company press releases, SEC filings, and events, select the “Email Notification” section.

Certain of the statements made herein are “forward-looking statements”, within the meaning and protections of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act.