First Federal Bank of Florida Acquires The Bank of Bonifay

07 May 2010

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LAKE CITY, FLORIDA, First Federal Bank of Florida announced purchasing certain assets and liabilities of The Bank of Bonifay, Bonifay, Florida. This transaction closed May 7, 2010. The terms of the transaction will be released at a future date.

First Federal Bank of Florida acquired all deposits of The Bank of Bonifay through a purchase and assumption agreement with the FDIC. As a result of the transaction, First Federal Bank of Florida acquired certain assets and liabilities including all deposit accounts and selected loans of The Bank of Bonifay. Loans not purchased by First Federal have been retained by the FDIC for later disposition. Until notified otherwise, customers should continue to make payments as they have in the past.

First Federal has been serving customers since 1962, when it opened as a Savings and Loan in Live Oak, Florida. Today the bank has a well managed portfolio of business, mortgage and personal deposits, serving over 46,000 customers, and employs over 315 people.  First Federal Bank of Florida is ranked as one of the top performing banks in the U.S. by TheStreet.com, an independent ratings firm. First Federal is examined by the Office of Thrift Supervision, (OTS) who ranks FFBF as “Well Capitalized.”  First Federal enjoys a solid balance sheet, ample liquidity and reserves. First Federal Bank of Florida earned a “5 STAR – Superior” rating from Bauer Financial, Inc.

Keith C. Leibfried, President and CEO of First Federal stated, “We welcome the clients of The Bank of Bonifay to the First Federal Bank of Florida family. Recognizing the importance of ensuring a smooth transition, we have deployed FFBF associates to the acquired branch offices to assist in the resolution process. We greatly appreciate the hard work and compassion from our current team members and our newest team members from The Bank of Bonifay, who are assisting in the acquisition process. Our company has a unique and successful culture with strong focus on people and building relationships. We are proud of our small town, north Florida roots and have worked hard to earn our customers’ and employees’ trust and offer them exceptional financial services and opportunities. We are being deliberate in our acquisition and transition. We will take the time necessary to transition the banks - to put our customers’ interests first, and satisfy their financial needs and help them succeed financially.”

Pam Hitt, Executive Vice President and Chief Operating Officer of First Federal said The Bank of Bonifay customers will continue to see The Bank of Bonifay brand in their banking branches and communities for the near future. "The key to a successful integration will be our ability to provide outstanding customer service throughout the acquisition" said Hitt. “The Bank of Bonifay and First Federal Bank of Florida customers should continue banking as they do today - using the same bank accounts, payment coupons, online sign-on, credit cards, ATM and check cards, checks and bank branches. We are committed to keeping customers informed of all significant changes before they happen."

With The Bank of Bonifay, First Federal for the first time has a community banking presence in Northwest Florida.

| First Federal Bank of Florida Acquires Flagship National Bank of Bradenton, Florida