Member FDIC

Statement of Condition

June 30, 2014

Beach Community Bancshares, Inc. and Subsidiary

Statement of Condition

Assets (unaudited)June 30, 2014 June 30, 2013

Cash & Due from Banks............................................ $ 21,812,000 $ 24,993,000

Securities .................................................................. 44,914,000 55,990,000

Federal Funds Sold ................................................... 0 0

Investment in Equity Securities ............................... 372,000 372,000

Loans Held for Sale .................................................. 3,809,000 6,035,000

Loans Receivable ...................................................... $ 398,383,000 $ 409,225,000

Less: Allowance for Loan Losses ............................. (7,086,000) (8,480,000)

Loans Net of Unearned Income and Allowance..... $ 391,297,000 $ 400,745,000

Premises and Fixed Assets, Net ............................... 18,695,000 19,153,000

Other Real Estate Owned ........................................ 76,837,000 81,397,000

Other Assets ............................................................. 12,123,000 7,669,000

Total Assets .............................................................. $ 569,859,000 $ 596,354,000

Liabilities (unaudited)Non-Interest-Bearing Deposits ................................ $ 32,144,000 $ 30,031,000

Interest-Bearing Deposits ........................................ 472,300,000 495,390,000

Total Deposits .......................................................... $ 504,444,000 $ 525,421,000

Federal Funds Purchased ......................................... 0 0

Other Borrowed Money ........................................... 34,427,000 36,849,000

Subordinated Debentures ....................................... 12,372,000 12,372,000

Other Liabilities ........................................................ 3,300,000 2,996,000

Total Liabilities ......................................................... $ 554,543,000 $ 577,638,000

Equity Capital (unaudited)Preferred Stock ........................................................ $ 4,321,000 $ 4,321,000

Common Stock ......................................................... $ 11,882,000 $ 11,882,000

Surplus ...................................................................... 21,070,000 21,070,000

Retained Earnings .................................................... (22,041,000) (19,045,000)

Unrealized Gain (Loss) on Securities Available for Sale ............................................................................ 84,000 488,000

Total Equity Bank Holding Company ...................... $ 15,316,000 $ 18,716,000

Total Liabilities and Equity Capital.......................... $ 569,859,000 $ 596,354,000

This statement has not been reviewed, or confi rmed for accuracy or relevance, by the Federal Reserve.

This statement has not been reviewed, or confi rmed for accuracy or relevance, by the Federal Reserve.

Statement of OperationsFor the Year to Date Ended, June 30, 2014 & June 30, 2013

(unaudited)

2014 2013

Interest IncomeSecurities $ 296,000 $ 404,000

Short Term Investments 54,000 20,000

Loans and Loan Fees 8,109,000 8,997,000

Total Interest Income $ 8,459,000 $ 9,421,000

Interest Expense

Int. Bearing Trans. Accts. $ 130,000 $ 231,000

Certifi cates of Deposit 2,047,000 2,405,000

Other Borrowed Money 319,000 759,000

Total Interest Expense $ 2,496,000 $ 3,395,000

Net Interest Income $ 5,963,000 $ 6,026,000

Less: Provision for Loan Losses $ 227,000 $ -

Add: Non Interest Income 3,109,000 3,483,000

Less: Non Interest Expense 9,468,000 10,107,000

Minority Interest $ - $ -

Net Income Before Tax $ (623,000) $ (598,000)

Income Taxes 18,000

Net Income $ (623,000) $ (616,000)

Loss Per Common Share $ (.26) $ (.26)

Book Value Per Common Stock $ 4.63 $ 6.06

Capital RatiosFor Quarter Ended, June 30, 2014

Actual

Minimum to be adequately capitalized

under prompt corrective action provisions

Minimum to be well capitalized under prompt corrective action provisions

Amount Ratio Amount Ratio Amount RatioTotal Capital (to risk weighted assets)

Consolidated $32,566 7.11% $36,616 8% N/A N/ABank $33,104 7.23% $36,616 8% $45,770 10%

Tier I Capital (to risk weighted assets) Consolidated $19,757 4.32% $18,308 4% N/A N/ABank $27,366 5.98% $18,308 4% $27,462 6%

Tier I Leverage Capital (to average assets) Consolidated $19,757 3.47% $22,761 4% N/A N/ABank $27,366 4.81% $22,747 4% $28,433 5%

Changes in Allowance For Loan LossesBalance at December 31, 2013 $ 7,712,000

Recoveries 57,000

Less: Loans Charged Off 910,000

Provision for Loan Losses 227,000

Balance at June 30, 2014 $ 7,086,000

Loans 90 days Past Due and Non-Accrual Loans Accruing Non-Accruing

Real Estate Loans $ 4,628,000 $ 77,725,000

Installment Loans - -

Commercial and All Other Loans 526,000 11,087,000

Total $ 5,154,000 $ 88,812,000

This statement has not been reviewed, or confi rmed for accuracy or relevance, by the Federal Reserve.

Board of Directors

Joseph W. Henderson Chairman of the Board

Member, Warren Averett O’Sullivan Creel

Charles W. Clary, IIIPrincipal, DAG Architects

Julian B. MacQueenChairman & CEO, Innisfree Hotels

A. Anthony HughesPresident & CEO

Beach Community Bank

C. LeDon AnchorsPartner, Anchors, Smith, Grimsley

Dr. Joe L. StoryPhysician and Entrepreneur

A. Anthony Hughes

President &

Chief Executive Offi cer

Kimberly A. Cox

Executive Vice President

Branch Administration

Gary E. Johns

Executive Vice President &

Chief Financial Offi cer

Keith D. Parks

Executive Vice President &

Senior Lending Offi cer

Kathleen A. Pritchard

Senior Vice President

D. Scott Gashaw

Senior Vice President

Matthew S. Hamilton

Senior Vice President

Caroline A. Hartnett

Senior Vice President

Suzanne B. Kelly

Senior Vice President

W. Scott McCormick

Senior Vice President

Judith L. Winter

Senior Vice President

Pamela G. Woodall

Senior Vice President &

President, Beach

Community Mortgage

Karen J. Bennett

Vice President

Allison M. Cochran

Vice President

Sasha Eastburn

Vice President

Tommy Files

Vice President

Kelly J. Fish

Senior Vice President

Elayne E. Jones-Yon

Vice President

Robert W. Massey

Senior Vice President

Courtney L. FalascaAssistant Vice President

Mary Jo GustaveAssistant Vice President

Karen J. HelmsAssistant Vice President

L. Michelle JohnsonAssistant Vice President

Cecilia M. McAdamsAssistant Vice President

Terra M. MeadowsAssistant Vice President

Sharmon V. MorrisAssistant Vice President

Deborah A. PatzigAssistant Vice President

Malinda E. RitterAssistant Vice President

Jessica R. RybarczykAssistant Vice President

Rick TurcotteAssistant Vice President

Wanda J. WallaceAssistant Vice President

Jennifer M. BenedictBanking Off icer

Lisa BransonBanking Off icer

Rachael M. DoanBanking Off icer

Kristan N. HowardBanking Off icer

Vicky D. TuckerBanking Off icer

Linda G. WalkerBanking Off icer

Officers

Mary Esther412 mary esther Cutoff

fort Walton Beach, fL 32548850.244.9160

Racetrack Road3 ne Racetrack Road

fort Walton Beach, fL 32547850.315.3500

Niceville100 armstrong avenue

niceville, fL 32578850.678.3990

Destin661 Harbor Boulevard

destin, fL 32541850.650.9041

Crestview5131 S ferdon Boulevard

Crestview, fL 32536850.682.9930

Navarre9290 navarre Parkway

navarre, fL 32566850.515.1344

Garden33 W Garden StreetPensacola, fL 32502

850.202.9900

Cordova4465 Bayou BoulevardPensacola, fL 32503

850.202.9000

Nine Mile9329 n Palafox Highway

Pensacola, fL 32534850.202.9109

Gulf Breeze60 northcliff drive

Gulf Breeze, fL 32561850.916.5100

Corporate Headquarters17 Se eglin Parkway

fort Walton Beach, fL 32548850.244.9900 | fax 850.244.9901

toll free 866.36BeaCH/ 866.362.3224

Beach Community Mortgage11 ne Racetrack Road, Suite a

fort Walton Beach, fL 32547850.315.4100 | fax 850.315.4102

toll free 888.864.2946

Beach Community Bancshares, Inc. and Subsidiary