Florida Bank Group, Inc. Successfully Completes $33 Million Private Placement

TAMPA, Fla., Aug. 14, 2013 /PRNewswire/ -- Florida Bank Group, Inc. ("FBG" or the "Company"), a Tampa-based bank holding company and parent company of Florida Bank (the "Bank"), today announced the completion of a $33 million capital raise through the sale of Units in a private placement offering to its existing shareholders and also to new shareholders, which include both institutional and non-institutional investors. The Units were comprised of shares of both the Company's preferred and common stock. The capital raise is part of a recapitalization plan that will generate approximately $27 million in common equity before expenses at close and includes the repurchase of the shares of Series A and B Preferred Stock that was previously sold to the United States Treasury (the "Treasury"). In addition to the repurchase of preferred shares previously sold to the Treasury, the Company plans to use the remaining net proceeds for general corporate purposes, including a capital contribution to Florida Bank, where the funds will be deployed in the Bank's general banking business and to support strategic initiatives. The recapitalization was structured to preserve the Company's net operating losses under section 382 of the Internal Revenue Code. As of June 30, 2013, the valuation allowance offsetting net deferred tax assets was approximately $45 million. This allowance can be released back into capital once sustainable profitability is achieved.

"We are pleased to announce the successful completion of this important transaction, and I would like to thank the many shareholders, new investors, customers and employees who have been patient and supportive throughout this process," said Susan Martinez, President and CEO. "This transaction will significantly strengthen the financial position of the Company and aid in our ability to execute our plan for growth and increasing shareholder value."

Legacy shareholders of FBG invested approximately $14 million in the private placement and new shareholders invested approximately $19 million. The lead institutional investor is Endicott Opportunity Partners III, L.P., a private investment partnership managed by Endicott Management Company headquartered in New York, NY that specializes in equity investments in financial institutions.

Sterne Agee & Leach, Inc., served as sole placement agent and financial advisor and Smith Mackinnon, PA served as legal advisor.

About Florida Bank Group, Inc.

FBG is a bank holding company headquartered in Tampa, Florida. FBG owns 100% of the outstanding common stock of Florida Bank. The Bank currently operates 13 banking offices located in Hillsborough, Pinellas, Duval, St. Johns, Manatee and Leon counties, in Florida. As of June 30, 2013, FBG had $558.8 million in total assets, including $338.1 million in net loans, and $452.2 million in deposits.  For more information, visit the Florida Bank Web site at www.flbank.com.

Safe Harbor for Forward-Looking Statements and Associated Risk Factors

Any statements contained herein that are not statements of historical fact, including those that anticipate future growth, may be deemed to be forward-looking statements. These forward-looking statements are made based on expectations and beliefs concerning future events affecting the Company and are subject to various risks, uncertainties and factors relating to the Company's operations and business environment, all of which are difficult to predict and many of which are beyond the Company's control.  Readers are cautioned not to put undue reliance on such forward-looking statements.  Forward-looking statements made by the Company in this release, or elsewhere, speak only as of the date on which the statements were made.  The Company has no duty to, and does not intend to, update or revise the forward-looking statements made in this press release, except as may be required by law.

SOURCE Florida Bank Group, Inc.