ANNUAL REPORT 2017 - bacflorida.com

1 Looking forwardANNUALREPORT2017 OFPROTECTING, GROWING AND CARINGABOUT PEOPLE S FINANCIAL FUTURECELEBRATING2 2017 - BAC Florida Bank ANNUAL ReportTable of ContentsMessage from our ChairmenMessage from our President and CEOOur Vision, Mission and ValuesReal Estate FinancingPrivate Banking and wealth ManagementBAC Florida Investments and Institutional BankingMy eBancCelebrating our 45th Anniversary Risk management and Compliance Technology and Business SolutionsBAC in the CommunityOur Products and ServicesClient Business LinesCondensed Consolidated Financial StatementsFinancial HighlightsSelected Financial RatiosExecutive TeamBoard of.

2 BAC Florida Bank ANNUAL REPORT - 20173 4 Message from our ChairmenDear Shareholders,Clients and Employees:BAC Florida Bank is celebrating its 45th anniversary since its establishment and 36 years since its acquisition by the Pellas Group. As we celebrate this anniversary milestone, it is gratifying for us to REPORT that during 2017 the Bank delivered another year of solid Florida s balance sheet shows strong asset quality and liquidity and the Bank remains well capitalized. Our results present significant growth in our profits, higher return on equity and improved efficiency ratio, all while ensuring that sound and safe banking practices are maintained.

3 During this anniversary milestone we want to acknowledge our clients, colleagues and shareholders who have been part of the BAC Florida Bank family for so many Alfredo Pellas Chairman2017 - BAC Florida Bank ANNUAL ReportCarlos F. Pellas ChairmanAll of our client business divisions consistently contributed to our strong performance and delivered good this anniversary milestone, we want to acknowledge our clients, colleagues, board members and shareholders who have been part of the BAC Florida Bank family for so many years. It is thanks to their support and trust, that we continue to grow and deliver strong are proud to serve and invest in the communities where we operate and contribute to the prosperity and welfare of our neighborhoods.

4 We value and appreciate our partnership with the charitable organizations we work closely with to deliver on our corporate social responsibility. As we start 2018, we look with optimism to the positive global economic trends, the rapid technological advancements and the considerable opportunities for our clients and the banking industry. We are confident that our robust business fundamentals, risk management culture and the expertise of our team, will enable us to continue to grow, protect and care for the financial future of our ,Carlos F. Pellas and F. Alfredo PellasBAC Florida Bank ANNUAL REPORT - 20175 Julio Rojas President and CEO6 Message from our President and CEODear Shareholders,Clients and Colleagues:During 2017, we successfully completed the CEO management transition and aligned our strategy on four pillars; delivering sustainable growth, a culture of risk management , continuously innovating and achieving diversification by leveraging on our made great progress in delivering in all four strategic pillars and as a result, we had strong financial performance during 2017.

5 Our net operating revenue reached $ million and was up , thanks to the solid performance from all our client business lines. Our after-tax profits of $ million, representing a growth of 18% from 2016, were supported by strong risk management as evidenced by our robust asset quality and controls. Our focus on innovation, through the digital transformation of the organization, improved our clients experience, resulted in a higher return on equity for our shareholders and good efficiency ratio. The Bank s liquidity and funding sources remain strong and diversified. Our total capital ratio to risk weighted assets at and our Tier One Capital growth at are better than the average of our peer group of Banks.

6 Our commitment to giving back to the community and helping those in need was strong, supported by many colleagues who graciously volunteered their time and our partnerships with many civic charitable organizations. I want to extend my appreciation to all our colleagues across the BAC Florida Bank family who contributed to the solid financial performance of 2017. 2017 - BAC Florida Bank ANNUAL ReportDuring 2017, we started a hurricane relief program to help low income families impacted by Hurricane Irma, addressing specifi c needs in our local we enter 2018, we recognize many opportunities to continue to support our clients.

7 We have a proven expertise and track record in the area of Real Estate fi nancing, a sector which continues to attract foreign investment. Our Corporate and Institutional clients continue to benefi t from our trade fi nance and cash management solutions in a growing global economy. By protecting and growing our Private Banking clients wealth , we continue to earn their trust and build cross-generational relationships. Our investment in the Bank s digital transformation and new technologies such as, artifi cial intelligence and blockchain, will continue to improve our clients experience and the productivity of our Banking franchise.

8 In closing, I want to thank all our clients and colleagues, our Board of Directors and shareholders for their continued support and trust they have shown to BAC Florida ,Julio RojasBAC Florida Bankis proud to be awarded a 5-Star rating by Bauer Financial Inc., one of the leading bank rating and research fi rms in the United success factors of our performance are our values-based culture and dedication to client want to extend my appreciation to all our colleagues across the BAC Florida Bank family who contributed to the solid fi nancial performance of 2017. BAC Florida Bank ANNUAL REPORT - 20177 8 8TO PROTECT, GROW AND CARE ABOUT PEOPLE S FINANCIAL Bank of choice for our clients in:We have a personalized business approach providing solutions with operational excellence, upholding the highest ethical principles and regulatory compliance.

9 Real Estate Financing Corporate and Institutional Banking Private Banking and wealth management Personal, Digital and Commercial BankingTo be the preferred trusted advisor to ourclients for personalized fi nancial services. VISIONMISSION2017 - BAC Florida Bank ANNUAL ReportTRUST: We believe in the attributes of honesty, integrity, reliability and loyalty. We apply them in our daily personal and professional endeavors. RESPECT: We value diff erent viewpoints and respect the opinions of others. Respect for our clients, colleagues, providers, environment and community ensures sustainable success.

10 TEAMWORK: We collaborate to execute plans together, and behave in ways that bring out the strengths of each team member. We are committed to quality, competence and excellence in our execution. We are accountable for our actions and their results. BALANCE: We manage our time for both business and personal success. We are dedicated to developing the full potential of our team and business and giving back to our community. INNOVATION: We embrace change to deliver superior performance. We seek new ways to be more accessible, effi cient and to provide solutions to our Respect TeamworkBalanceInnovationBAC Florida Bank ANNUAL REPORT - 20179 10 Real Estate FinancingAs experts in this investment segment, we consider it critical to remain abreast of current real estate market trends in order to offer our clients the best possible financing options based on their unique the course of the last 25 years.