Peoples First Community Bank
A Source of Strength, Stability and Unparalleled Service Since 1983

Peoples First Community Bank is approaching its 25th birthday, an appropriate time to provide you, our customer, with a status and progress report about your bank.

It is with pride that we assure you that Peoples First is a safe, sound and growing financial institution that looks forward to serving you for the next 25 years and beyond.

Here, it has always been our goal to be "a little bit bigger and a little bit better" tomorrow than we are today and, in truth, we have never taken a step backward. Today, Peoples First Community Bank includes 33 banking centers throughout North and Central Florida and has assets exceeding $1.8 billion.

Currently, we are developing a new banking center in the Altamonte Springs area to replace one that we have operated from leased space. Also on the drawing boards are banking centers planned for Palm Coast in Flagler County -- that will give us two Palm Coast banking centers -- and for Pace, near Pensacola. We are establishing a branch in downtown Orlando and, in addition, we have acquired other bank sites sprinkled around the state and targeted for development over the next five to 10 years.

Throughout our history, we have grown not through acquisition or mergers, but one branch at a time on the strength of our earnings. That has ensured that all of our branches deliver customer service consistent with the very high standards we call the "Peoples First Way." Peoples First is a closely held, privately owned institution, meaning that our focus is squarely on customers satisfaction, not stockholder satisfaction.

Peoples First is one of the top performing financial institutions in Florida, as reflected by financial reports made available by the Federal Deposit Insurance Corporation. As of Dec. 31, 2007, our Return on Assets of 1.04% was more than double the average (0.49%) for all other institutions in Florida. Meanwhile, our Return on Equity at 11.06% far exceeded the statewide average of 4.80%.

Your bank consistently receives high marks in areas including management, liquidity and capital from regulators with the federal Office of Thrift Supervision, which annually conducts Safety and Soundness Audits at institutions including Peoples First. We currently hold a four-star excellent rating from Bauer Financial, widely regarded as the best bank rating service in the country.

Bauer's ratings are based on a host of factors including capital ratios; profitability/loss trends; levels of delinquent loans, charge-offs and repossessed assets; the market versus book value of the investment portfolio; regulatory supervisory agreements; the community reinvestment rating (CRA); historical data and liquidity.

And, given the news of recent days and weeks, we want you as a Peoples First customer to know that we have stayed away from the sub-prime lending activity that has troubled many other financial institutions.

We greatly value the relationships we enjoy with tens of thousands of loyal customers around Florida. They form the basis for all of the success we have enjoyed to date and our success to come.

We encourage you to contact us whenever you have financial concerns or questions and we pledge always to treat you as if you were the only customer we had.

Thank you for being a member of the growing Peoples First family.