Project CABRAL - Banco do Brasil · CABRAL Overview Loan Stratification (as of 9/30/10) Deposit Stratification (as of 9/30/10) Company Overview Key Executives and Board of Directors

Project CABRAL

Strictly Private and Confidential

January 12, 2010

2

Table of Contents

I. Executive Summary

II. Transaction Rationale

III. Cabral Overview

IV. Valuation Analysis

V. CABRAL Projection Model

Executive SummarySECTION I

4

Executive Summary

Valuation methodologies employed include:

− Comparable companies

− Comparable transactions

− Discounted cash flow

− Liquidation analysis

In addition to quantitative measures, several CABRAL qualitative factors were considered as part of our analysis

− Regulatory issues

− Lack of strategic alternatives available to CABRAL at present

− Regional economic outlook for Florida

RBC's preliminary valuation analysis supports a valuation range between $0 to $10 million for CABRAL

− Results of RBC's valuation analysis are summarized in Section III of this presentation

In connection with RBC's engagement as financial advisor to Banco do Brasil (“BB”), RBC has performed a valuation analysis of CABRAL

Transaction RationaleSECTION II

6

Banco do Brasil’s U.S. Entry Alternatives

▲ Would provide BB with immediate size and scale

▼ No targets of size that would fit BB’s operating strategy

▼ Given state of many U.S. banks, asset quality issues of a large institution would significantly increase BB’s downside risk

Large / Moderate-Sized Acquisition

▲ Provides BB with immediate U.S. entry platform with some base infrastructure

▲ Cost to acquire smaller institution likely comparable to cost of a “de novo” effort

▲ Small size limits downside risk that could result from deterioration in target’s asset quality

▲ Much quicker than a “de novo” effort

▲ Provides low-risk environment to acclimate BB to U.S. banking environment (e.g. working with regulators, U.S. customers)

▼ Will take time to execute BB’s strategy and reach economy of scale

Small Acquisition

▲ Ability to build institution according to BB’s exact specifications (i.e. don’t inherit other’s problems)

▼ May not be an option

▼ Lengthy and uncertain application process

▼ Cost to start “de novo” effort ($5+ million) could exceed cost to acquire a smaller institution

− Cost to open a bank branch typically ranges from $2-4 million in the U.S. (1)

▼ Execution time much longer vs. an acquisition

“De Novo”

Rationale and Considerations

(1) RBC estimate. Costs could be lower if the branch location is leased instead of owned.

7

CABRAL – Strategic Rationale and Considerations

Opportune time to acquire in the U.S.

− Buying “at or near the bottom” of the market

Provides entry vehicle into the US

− Provides immediate foundation for expansion into key metro target markets

− Much quicker than a “de novo” effort

− Numerous follow on acquisition opportunities

− Relaxation in interstate branching approval

CABRAL’s Portuguese-speaking clients provide unique cultural fit

Improves Banco do Brasil’s ability to service Brazilian customers, particularly retail customers

Potential bidding advantage given likelihood that few competing banks would be interested in a whole bank acquisition

Undermanaged institution with potentially significant upside from readily identifiable actions including expanded marketing, broader product range, restructuring balance sheet and rationalizing cost structure

Florida may be best cultural fit for BB relative to other geographies

High level of asset-quality problems

− Comfort around loan marks will be crucial for appropriate valuation

High cost structure relative to revenues

− CABRAL not at sufficient size / scale to absorb fixed costs

− Must expand significantly and/or slash costs to achieve peer level profitability

Inability to achieve same level of cost savings as in-market buyer creates a pricing disadvantage

Regulatory approval uncertainty

ConsiderationsStrategic Rationale

8

Florida has experienced a much sharper economic slowdown driven in large part to real estate decline

Economic Data for the Top U.S. Brazilian Communities

Summary Cumulative Economic Growth

Housing Price Appreciation (1) Unemployment Rates

75%

100%

125%

150%

175%

200%

1992 1994 1996 1998 2000 2002 2004 2006 2008 2010

U.S. New York Massachusetts Florida

169%

142%140%

159%

The U.S. economy is starting to recover slowly after a two-year recession

Several areas of the country, however, are seeing distinctly different recovery patterns with respect to economic growth, housing appreciation, and unemployment rates

Florida housing prices have stabilized over the last few quarters –economic growth just starting to pick up and home prices stabilize; unemployment rate, however, continues to lag the rest of the country and potentially has yet to peak

9.6%8.4%

7.0%

11.8%

2%

4%

6%

8%

10%

12%

2003 2004 2005 2006 2007 2008 2009 2010

US New York City Boston Miami

100%

150%

200%

250%

300%

2000 2002 2004 2006 2008 2010

U.S. New York Boston Miami

175%

156%

146%147%

(1) Case-Shiller home price indices.

9

2

2

2

3

3

4

4

6

8Middlesex, MA

Brow ard, FL

Miami-Dade, FL

Essex, NJ

Suffolk, MA

Palm Beach, FL

Queens, NY

Westchester, NY

New York, NY

Brazilian Communities in the U.S.

2

3

3

3

3

3

4

13

15

18

Washington, DC

San Francisco, CA

Los Angeles, CA

Stamford, CT

Atlanta, GA

Worcester, MA

Orlando, FL

Miami,FL

Boston, MA

New York, NY

6.5 million Hispanics also inNYC, Boston. and Miami

Source: McKinsey, SNL Financial, U.S. Census..

Top Brazilian Metro Areas(Top 3 has 46% of U.S. Brazilians) Top 9 Counties in Top 3 Metro Areas

(33% of U.S. Brazilians) Top 21 “Hotspot” Communities in Those Counties – 4,000 Brazilians or more(15% of U.S. Brazilians)

0.30.3

0.3

0.3

0.3

0.3

0.4

0.4

0.4

0.5

0.5

0.6

0.7

0.7

0.8

0.8

0.8

1.0

1.8

1.9

2.0

M edford, M A

M t Vernon, NY

North M iami Beach, FL

Oakland Park, FL

Brighton, M A

Three Lakes, FL

Lowell, M A

M iami Beach, FL

Revere, M A

Allston, M A

M alden, M A

East Boston, M A

Everett, M A

M arlborough, M A

Astoria (Queens), NY

Deerfield Beach, FL

North Bay Village, FL

Lighthouse Point, FL

Somerville, M A

Framingham, M A

Ironbound (Newark), NJ

Population Median HH Income

MSADeposits

$B 000s5-Yr Est.

CAGR $000s5-Yr Est.

CAGRNew York $934.6 19,114 0.30% $66 3.3%Boston 169.8 4,569 0.30 75 3.1Miami 156.7 5,513 0.27 52 2.6National Average 311,213 0.76% $54 2.4%

(Percent of Total)

CABRAL OverviewSECTION III

11

C&I11%

CRE51%

C&D4%

Multifamily13%

1-4 Family 18%

Home Equity & Other3%

Transaction Accounts14%

MMDA & Savings7%

Jumbo Time52%

Retail Time27%

CABRAL Overview

Loan Stratification (as of 9/30/10)

Deposit Stratification (as of 9/30/10)

Company Overview

Key Executives and Board of Directors

CABRAL was incorporated in 1991 in the State of Florida and is

among the few locally owned and operated banks in its service areas

CABRAL caters to both the domestic and international community in

South Florida through three branches located in Coral Gables, Boca

Raton and Pompano Beach

Total $95 million

Name Position

Joseph Theriaga Chairman, President & CEO

Miguel J. Truyol Senior VP & CFO

Miguel Bensaude Director

Joel Feldman Director

Andrew Ferrera Director

Duane A. Kujawa Director

Paulo B. Marques Director

Jorge Sanchez-Galaraga Director

Total $74 million

12

Branch Map and Deposit Detail

Source: SNL Financial.

($ in millions) Open Deposits at 6/30 CAGR SinceDate 2005 2006 2007 2008 2009 2010 2009 2005

698 Yamato Rd Ste 5, Boca Raton Jul-86 $31.0 $30.1 $29.3 $31.1 $32.3 $39.8 23.3% 5.1%

1901 Ponce De Leon Blvd, Coral Gables Dec-91 39.5 43.1 47.1 48.4 44.4 41.5 (6.4%) 1.0%

839 W Sample Rd, Pompano Beach Feb-07 NA NA NA 7.5 6.8 12.7 86.7% NA

Total $70.5 $73.2 $76.5 $87.0 $83.4 $94.0 12.6% 5.9%

Mean Branch Size $35.2 $36.6 $38.2 $29.0 $27.8 $31.3 12.6% (2.3%)

13

Potential Follow-on AcquisitionsMiami, Orlando, New York and Boston MSAs by Assets

Source: SNL Financial.Note: Excludes Mutuals, MHCs and merger targets.

($ in millions)

37 2812 13

9146

21

17 2522

131

15

5

66

35

98

54

3544

257

1

3

26

0

30

60

90

120

150

180

210

240

270

< $250 $250 - $500 $500 - $1,000 $1,000 - $5,000 $5,000 + Total

Num

ber o

f Ban

ks /

Thrif

ts

Miami MSA & Orlando MSA New York MSA Boston MSA

14

Historical Loan & Deposit Composition

59% 62% 61% 59%51%

12% 9% 9% 16%

13%

6% 7% 7%

15%

18%3% 2% 2%

2% 11%13% 13% 16%

6% 4%8% 7% 6% 3% 3%

0%

20%

40%

60%

80%

100%

2006 2007 2008 2009 Sep 2010

HE & Other

C&D

C&I

1-4 Family-closed end

Multifamily

CRE

$66.3 $75.4 $74.2 $64.1 $74.6

Yields: 5.39%5.94%7.61%8.61%7.99%

14% 13% 17% 18% 14%

22%14% 9% 8%

7%

21%24% 32% 26%

27%

43% 49% 43% 48% 53%

0%

20%

40%

60%

80%

100%

2006 2007 2008 2009 Sep 2010

Jumbo CDs

Retail CDs

MMDA&Savings

TransactionAccounts

$83.1 $78.6 $83.7 $84.5 $94.7

Costs: 1.62%2.44%3.36%4.21%3.36%

Historical Loan Composition

Historical Deposit Composition

Source: SNL Financial.

15

Past Due & Non-Accrual Loans

Past Due & Non-Accrual Loans - By Category

Past Due & Non-Accrual Loans / Total Loans by Type($ in millions)

($ in millions)

Source: SNL Financial.

$10.1

$2.7

$4.0

$10.0

$8.7

$12.2

$0

$3

$6

$9

$12

$15

2007 2008 2009 2010Q1 2010Q2 2010Q3

C&D

CRE

0%

79%

21%

Past Due and Non-Accrual Loans as a % of Total2007 2008 2009 2010Q1 2010Q2 2010Q3

1-4 Family 29.9% 9.4% 7.4% 0.0% 1.0% 0.0%

Home Equity & Other 0.0 0.8 2.2 2.5 8.8 0.6

C&D 4.5 3.1 61.4 70.1 59.6 66.5

CRE 1.6 6.8 14.3 16.1 23.3 21.0

Multi-Family 0.8 0.8 16.1 0.0 0.0 0.0

C&I 0.0 0.0 0.0 0.0 0.0 0.0Total 3.6% 5.4% 15.5% 13.3% 16.8% 13.5%

16

Past Due and Nonaccrual Loans

Source: SNL Financial.Note: CABRAL Peers include UBAB, BKFY, NCFT, GRBS, CBCO, PCBS, JAXB, SEBC, GSON, GRRB, KSBI, FIEC, PGNN, PLBN, EXCH, OHBK, FCCT,

BOVA, CHKJ, CTOT, BONC, ABTO, SZBI, IEBS, PKWY, FSGB, ATBA, CEFB.

1-4 Family Multifamily Commercial & Industrial

$13 million of total loans $10 million of total loans $8 million of total loans18% of total loans 13% of total loans 11% of total loans

Commercial Real Estate Construction & Development Total

$38 million of total loans $3 million of total loans $75 million of total loans51% of total loans 4% of total loans 100% of total loans

CABRAL CABRAL Peers Top 100 Banks & Thrif ts

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

Dec-09 Mar-10 Jun-10 Sep-100.0%

2.0%

4.0%6.0%

8.0%

10.0%

12.0%14.0%

16.0%

18.0%

Dec-09 Mar-10 Jun-10 Sep-100.0%

2.0%

4.0%

Dec-09 Mar-10 Jun-10 Sep-10

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Dec-09 Mar-10 Jun-10 Sep-100.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

Dec-09 Mar-10 Jun-10 Sep-100.0%

2.0%

4.0%6.0%

8.0%

10.0%

12.0%14.0%

16.0%

18.0%

Dec-09 Mar-10 Jun-10 Sep-10

17

Year Ended Quarter Ended($ in millions) 12/31/07 12/31/08 12/31/09 9/30/09 9/30/10

Balance SheetAssets $100 $101 $97 $98 $107Net Loans 75 73 62 68 73Deposits 79 84 84 82 95Tang. Common Equity 10 10 8 11 6

ProfitabilityNet Income $0.2 $0.0 ($4.2) ($0.4) ($0.4)ROAA 0.17% 0.00% (4.24)% (1.71)% (1.44)%Net Interest Margin 3.91 3.58 2.97 2.81 2.68Efficiency Ratio 93.0 95.9 129.5 137.9 172.5

Capital & Asset QualityTCR 10.12% 10.08% 8.55% 11.55% 5.73%Texas Ratio 22.5 16.9 163.0 115.9 154.1NPAs/Assets 2.4 1.8 16.6 14.8 11.1Reserves/ NPAs 28.0 33.5 10.0 8.4 13.2NCOs/Avg Loans 0.03 0.31 3.16 2.64 0.39

Historical Financial Summary

18

Revenue Growth AnalysisEfficiency ratio and revenue growth relationship

Source: SNL Financial.* Based on the most recent quarter annualized.

($ 000's)

Revenue* $2,368

Non-Interest Expense* $4,086

Current Efficiency Ratio 173%

Target Required Revenue GrowthEfficiency Ratio Additional Rev Growth 3 Yr CAGR 5 Yr CAGR

100% $1,718 73% 20% 12%

90% $2,171 92% 24% 14%

80% $2,739 116% 29% 17%

75% $3,079 130% 32% 18%

70% $3,468 146% 35% 20%

65% $3,917 165% 38% 22%

60% $4,441 188% 42% 24%

50% $5,803 245% 51% 28%

Typical Community Bank Range

Valuation AnalysisSECTION IV

20

Summary CABRAL Valuation

($6)

($3)

$0

$3

$6

$9

$12

$15

Trading Comparables:Price / TBV: 0.17x - 0.42x

Transaction Comparables:Price / TBV: 0.40x - 1.01x

Discounted Cash Flow AnalysisDiscount Rate: 10% - 12%Exit Multiple: 10.0x - 12.0x

Liquidation Analysis:Deposit Premium: 2% - 5%Loan Mark: $12M - $14M

Fixed Asset Writeup: $0.5M - $1.5M

($0.9)

$3.0

$1.0

$2.6

$2.4

$6.2

$9.5

($4.1)

21

CABRAL PeersWe identified 26 banks for comparable company analysis

We used the following criteria to select CABRAL’s peers:

− Geography: Banks headquartered in the Southeast (AL, AR, FL, GA, MS, NC, SC, TN, VA, VI and WV)

− Asset Size: Banks with assets less than $500 million

− Profitability and Asset Quality: Return on Average Assets (ROAA) less than 0.50%, Non-Performing Assets (NPAs) / Assets greater than 1%

and Texas Ratio (1) between 50% and 150%

− Other: Excluded mutual holding companies (MHCs) and pending acquisition targets

The peers include:

Source: SNL Financial. (1) NPA & Loans 90+/ Tangible Equity + LLR

− AB&T Financial Corporation (ABTO)

− Atlantic Bancshares, Inc. (ATBA)

− Bank of Commerce (BONC)

− Bankshares of Fayetteville, Inc. (BKFY)

− Central Florida State Bank (CEFB)

− Cherokee Banking Company (CHKJ)

− Coastal Banking Company, Inc. (CBCO)

− Cornerstone Bancorp (CTOT)

− Exchange Bankshares, Inc. (EXCH)

− First Community Corporation (FCCT)

− First Trust Bank (NCFT)

− Frontier National Corporation (FIEC)

− GrandSouth Bancorporation (GRRB)

− Grayson Bankshares, Inc. (GSON)

− Greer Bancshares Incorporated (GRBS)

− Independence Bancshares, Inc. (IEBS)

− Jacksonville Bancorp, Inc. (JAXB)

− KS Bancorp, Inc. (KSBI)

− Old Harbor Bank (OHBK)

− Paragon National Bank (PGNN)

− Parkway Bank (PKWY)

− Pilot Bancshares, Inc. (PLBN)

− Provident Community Bancshares, Inc. (PCBS)

− Southeastern Banking Corporation (SEBC)

− SouthFirst Bancshares, Inc. (SZBI)

− United Bancorporation of Alabama, Inc. (UBAB)

22

Comparable Company Analysis($ in millions, except per share data) Performance Capital and Asset Quality Market Data

Core Efficiency Loans / NPAs / Reserves / Reserves / Market Price / Premium toCompany Assets ROAA NIM Ratio TCR Deposits Assets Loans NPAs Value TBV Deposits

United Bancorporation of Alabama, Inc. $482 -1.28% 3.23% 86% 5.43% 65% 5.8% 2.0% 19.7% $11.4 0.44x -3.4%Bankshares of Fayetteville, Inc. 458 0.01 3.26 90 7.53 87 5.9 3.2 36.0 4.0 0.12 -8.7First Trust Bank 455 -0.87 3.64 49 10.13 80 7.7 2.7 23.0 16.7 0.36 -7.8Greer Bancshares Incorporated 445 -5.15 2.56 60 2.53 94 6.9 3.0 28.4 5.7 0.51 -1.8Coastal Banking Company, Inc. 433 -0.44 3.12 74 6.03 78 9.3 2.0 15.6 5.2 0.20 -5.9Provident Community Bancshares, Inc. 429 -2.98 2.22 78 3.00 69 8.6 2.7 15.9 1.1 0.08 -3.7Jacksonville Bancorp, Inc. 428 0.13 3.64 69 5.76 105 7.8 2.4 26.7 45.6 0.55 5.8Southeastern Banking Corporation 423 -2.47 3.24 74 12.32 69 12.7 3.6 16.8 28.2 0.54 -6.6Grayson Bankshares, Inc. 375 0.21 3.49 74 8.41 83 4.9 1.6 23.3 22.4 0.71 -2.9GrandSouth Bancorporation 370 0.09 4.42 63 7.13 98 6.4 2.1 26.0 7.2 0.27 -6.4KS Bancorp, Inc. 341 -0.29 3.59 72 5.83 87 5.7 1.8 20.8 8.8 0.44 -4.3Frontier National Corporation 322 -1.15 3.68 91 7.62 84 9.5 2.3 16.4 3.8 0.16 -8.0Paragon National Bank 253 -0.86 3.46 102 9.98 89 7.5 2.4 25.0 8.3 0.33 -7.9Pilot Bancshares, Inc. 231 -0.08 3.88 86 6.38 83 7.6 2.7 26.3 4.5 0.30 -5.1Exchange Bankshares, Inc. 230 -1.05 3.34 124 9.95 71 5.9 2.0 19.9 8.9 0.39 -7.1Old Harbor Bank 226 -1.35 3.50 84 3.23 83 7.3 3.0 33.4 0.4 0.06 -3.2First Community Corporation 225 0.10 3.80 63 7.17 99 6.6 2.3 25.9 6.2 0.39 -6.0Cherokee Banking Company 191 -0.42 3.53 99 6.62 82 11.8 2.7 15.7 3.7 0.29 -5.5Cornerstone Bancorp 182 -0.54 3.25 78 9.91 85 10.3 2.3 15.7 4.4 0.25 -9.2Bank of Commerce 178 -0.48 3.03 71 7.08 94 5.5 2.3 26.7 4.4 0.35 -6.7AB&T Financial Corporation 172 -0.32 2.99 109 12.50 98 11.3 1.8 12.6 5.3 0.25 -11.9SouthFirst Bancshares, Inc. 129 -1.02 3.27 136 5.98 98 5.9 1.3 17.6 1.8 0.24 -5.8Independence Bancshares, Inc. 124 -9.88 2.40 174 9.54 91 10.8 2.9 20.8 1.0 0.08 -10.3Parkw ay Bank 116 -1.00 3.19 106 5.86 79 10.2 3.8 26.8 0.8 0.11 -5.7Atlantic Bancshares, Inc. 90 -2.20 3.90 96 8.39 108 6.6 1.2 14.9 3.9 0.51 -5.5Central Florida State Bank 87 -5.21 3.09 111 8.41 77 14.4 4.9 24.0 0.5 0.07 -8.5

Mean $284 -1.48% 3.34% 89% 7.41% 86% 8.2% 2.5% 22.1% $8.2 0.31x -5.9%Median 242 -0.87 3.31 85 7.15 85 7.5 2.3 21.9 4.8 0.30 -5.9Upper Quartile (UQ) 427 -0.30 3.63 73 9.26 94 6.1 2.9 26.2 8.7 0.42 -4.5Lower Quartile (LQ) 179 -1.33 3.14 101 5.89 79 10.0 2.0 16.5 3.8 0.17 -7.9

CABRAL $107 -1.44% 2.68% 173% 5.73% 79% 11.1% 2.1% 13.2% - - -

CABRAL Implied Valuation (1) $1.8

Range Based on LQ & UQ 0.17x to 0.42xImplied Valuation $1.0 - $2.6

(1) b d di

Source: SNL Financial as of 12/21/10.(1) Based on median.

23

Branch Analysis

(1) Most recent quarter annualized.

CABRAL’s peers generate approximately 86% more revenue and 32% more loans per branch than CABRAL does

($ in millions) Per BranchCompany Revenue (1) G&A (1) Employees Deposits Loans

AB&T Financial Corporation $1.31 $0.71 9 $34.0 $33.5Atlantic Bancshares, Inc. 1.75 0.98 10 33.9 36.6Bank of Commerce 5.22 2.20 17 123.3 115.7Bankshares of Fayetteville, Inc. 2.13 0.93 14 43.9 38.3Central Florida State Bank 0.61 0.44 5 19.9 15.3Cherokee Banking Company 2.55 1.09 12 53.8 44.0Coastal Banking Company, Inc. 5.10 2.36 27 71.3 62.1Cornerstone Bancorp 1.96 0.93 12 49.2 41.6Exchange Bankshares, Inc. 1.00 0.92 15 39.5 27.9First Community Corporation 1.41 0.57 8 27.7 27.3First Trust Bank 5.51 1.65 13 124.8 100.4Frontier National Corporation 1.14 0.65 11 25.7 21.7GrandSouth Bancorporation 5.23 2.17 22 99.9 97.9Grayson Bankshares, Inc. 1.43 0.73 12 31.7 26.2Greer Bancshares Incorporated 3.74 1.62 22 76.3 71.9Independence Bancshares, Inc. 1.03 0.83 9 35.0 31.9Jacksonville Bancorp, Inc. 3.23 1.43 13 72.3 75.9KS Bancorp, Inc. 1.35 0.70 10 28.7 25.1Old Harbor Bank 1.20 0.65 7 31.1 25.7Paragon National Bank 1.85 1.24 11 42.5 39.4Parkway Bank 1.42 0.92 13 35.2 27.7Pilot Bancshares, Inc. 1.50 0.82 8 33.9 28.2Provident Community Bancshares, Inc. 1.31 0.69 8 35.3 24.4Southeastern Banking Corporation 0.98 0.54 9 21.4 14.7SouthFirst Bancshares, Inc. 1.59 1.80 19 34.3 33.6United Bancorporation of Alabama, Inc. 1.12 0.64 11 25.4 16.4Median $1.46 $0.92 12 $35.1 $32.7

EuroBank $0.79 $0.81 9 $31.6 $24.8Discount to Peers 86% 13% 33% 11% 32%

24

Precedent Transaction AnalysisSoutheast transactions with deal values < $100M; target ROAA < 0.50% and NPAs > 1%

Source: SNL Financial. List excludes transactions with no announced deal value.(1) Based on median.

Target Target DealDate Buyer Target State Assets NPA/Assets ROAA Value P / TBV10/06/10 Community Bancorp LLC Cadence Financial Corp. MS $1,886 5.7 % -0.30 % $68.8 0.39 x06/08/10 Community Trust Bancorp Inc. Lafollette First Natl Corp. TN 183 4.5 -2.14 16.1 1.0505/26/10 First Peoples Bancorp Inc. First Peoples Bk of Tennessee TN 127 3.1 0.31 5.8 0.7305/10/10 Jacksonville Bancorp Inc. Atlantic BancGroup Inc. FL 274 9.4 -0.19 2.8 0.2811/29/09 Apollo Bancshares Inc. Union Credit Bank FL 154 9.6 -4.79 5.0 0.9709/17/09 Investor group Gibraltar Private Bk & Tr Co. FL 1,522 3.1 -1.21 93.0 0.8609/11/09 Community Trust Finl Corp. Madison Financial Corp MS 68 1.9 -0.44 3.2 1.1806/03/09 Carolina Trust Bank Carolina Commerce Bank NC 104 2.3 -1.67 5.2 0.5304/13/09 Southern Missouri Bancorp Inc. Southern Bank of Commerce AR 28 7.6 -7.22 0.6 0.3804/06/09 First America Holdings Corp. MRCB Holdings Inc. FL 157 3.1 -0.76 6.3 NA03/24/09 Southern Bancorp Inc Timberland Bank AR 139 4.7 -1.84 5.0 0.7611/14/08 Hartford Financial Services Federal Trust Corp. FL 628 11.0 -4.76 9.4 0.4309/17/08 Prvt Invtr - James C. France CenterBank Inc. FL 220 5.0 -2.38 12.0 1.3902/27/08 1st United Bancorp Inc. Citrus Financial Services Inc. FL 119 6.4 0.05 6.0 0.3201/02/08 First BanCorp. Virgin Islands Community Bank VI 65 1.5 -8.14 3.0 NA11/27/07 Premier Financial Bancorp Inc. Traders Bankshares Inc. WV 106 3.1 0.37 18.1 1.4708/03/07 First Banks, Inc. Coast Financial Holdings Inc. FL 834 4.6 -1.23 22.1 0.40

Mean 0.74 xMedian 0.73Upper Quartile (UQ) 1.01Lower Quartile (LQ) 0.40

CABRAL Implied Valuation (1) $4.5

Range Based on LQ & UQ 0.40x to 1.01xImplied Valuation $2.4 - $6.2

25

Key M&A Multiples Are At Historic Lows

Source: SNL. Data as of 12/09/2010.Note: Transactions include all bank deals (non-supervisory) that have been completed or are pending with a deal value greater than $25 million; median

values.

Price / Tangible Book

Franchise Premium / Core Deposits

1.4x 1.5x 1.6x1.9x 1.9x 1.9x 1.9x

2.5x

3.0x

2.7x

2.3x2.1x

2.5x2.6x 2.5x 2.6x

2.9x2.7x

1.7x

1.2x1.3x

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

3.0x

3.5x

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010YTD

6.7%5.5% 6.1%

9.6% 9.3%10.9%

12.1%

19.2%

25.0%

20.5%

16.3%

13.0%

19.8% 19.0% 20.0%21.3%

23.3% 22.5%

15.1%

1.7%

4.6%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010YTD

26

Discounted Cash Flow (DCF) ValuationBase case assumes 10% discount rate(1), 10x terminal multiple, 25% annual loan growth

06/30/11 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15 12/31/16Net Income and Adjustments

CABRAL Pro Forma Net Income to Common ($0.4) ($0.5) $0.4 $1.7 $3.1 $3.1

Balance Sheet Requirements

CABRAL Risk Weighted Assets $80.9 $77.3 $89.9 $105.0 $123.0 $144.5Threshold Total Capital Ratio 13.0% 13.0% 13.0% 13.0% 13.0% 13.0%

Total Capital Implied $10.5 $10.0 $11.7 $13.7 $16.0 $18.8

CABRAL Standalone Total Capital - Beg of Period $10.5 $10.5 $10.0 $11.7 $13.7 $16.0Net Earnings Benefit Attributable to Acquisition - (0.4) (0.5) 0.4 1.7 3.1 Amortization of Intang Contribution to Equity - 0.0 0.1 0.1 0.1 0.1 Less: Standalone Total Capital Excess / (Deficit) (0.0) 0.1 (2.0) (1.5) (0.6) 0.3 CABRAL Standalone Total Capital - End of Period $10.5 $10.0 $11.7 $13.7 $16.0 $18.8

DCF Analysis

Capital Infusion ($13.1) - - - - - Capital Outf low s / (Contributions) (0.0) 0.1 (2.0) (1.5) (0.6) 0.3 Terminal Value (10x) - - - - - 31.5

($13.1) $0.1 ($2.0) ($1.5) ($0.6) $33.5

NPV of Cash Flow s (10%) ($13.1) $0.1 ($1.8) ($1.2) ($0.4) $21.8

NPV at Close $5.4

DCF Sensitivity Analysis

Terminal Multiple Annual Loan Growth (2012 - 2015)5.4 9.0x 10.0x 11.0x 12.0x $5.4 0% 5% 10% 15% 20% 25% 30% 35%9% $4.1 $6.2 $8.4 $10.5 9% ($26.9) ($22.2) ($16.8) ($10.4) ($2.7) $6.2 $16.2 $27.1

Discount 10% 3.3 5.4 7.4 9.5 10% (26.4) (22.0) (16.7) (10.6) (3.2) 5.4 14.9 25.5 Rate 11% 2.6 4.6 6.5 8.5 11% (26.0) (21.7) (16.7) (10.8) (3.6) 4.6 13.8 23.9

12% 1.9 3.8 5.7 7.6 12% (25.6) (21.5) (16.6) (10.9) (4.1) 3.8 12.6 22.3 13% 1.2 3.1 4.9 6.7 13% (25.2) (21.2) (16.6) (11.1) (4.5) 3.1 11.6 20.9

(1) Per CAPM, see appendix for more detail.

27

Internal Rate of Return (IRR) AnalysisAssumes $3 million deal value, 10x terminal multiple, 25% annual loan growth

06/30/11 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15 12/31/16Net Income and Adjustments

CABRAL Pro Forma Net Income to Common ($0.4) ($0.5) $0.4 $1.7 $3.1 $3.1

Balance Sheet Requirements

CABRAL Risk Weighted Assets $80.9 $77.3 $89.9 $105.0 $123.0 $144.5Threshold Total Capital Ratio 13.0% 13.0% 13.0% 13.0% 13.0% 13.0%

Total Capital Implied $10.5 $10.0 $11.7 $13.7 $16.0 $18.8

CABRAL Standalone Total Capital - Beg of Period $10.5 $10.5 $10.0 $11.7 $13.7 $16.0Net Earnings Benefit Attributable to Acquisition - (0.4) (0.5) 0.4 1.7 3.1 Amortization of Intang Contribution to Equity - 0.0 0.1 0.1 0.1 0.1 Less: Standalone Total Capital Excess / (Deficit) (0.0) 0.1 (2.0) (1.5) (0.6) 0.3 CABRAL Standalone Total Capital - End of Period $10.5 $10.0 $11.7 $13.7 $16.0 $18.8

Internal Rate of Return

Acquisition Cost ($3.0) - - - - - Capital Infusion (13.1) - - - - - Capital Outflow s / (Contributions) (0.0) 0.1 (2.0) (1.5) (0.6) 0.3 Terminal Value (10x) - - - - - 31.5

($16.1) $0.1 ($2.0) ($1.5) ($0.6) $33.5

IRR 13.1%

IRR Sensitivity Analysis

Threshold Total Capital Ratio Annual Loan Growth (2012 - 2015)13.1% 11.0% 12.0% 13.0% 14.0% 15.0% 13.1% 0% 5% 10% 15% 20% 25% 30%

9.0x 14.4% 12.4% 10.4% 8.6% 6.8% 9.0x NM NM (53.8%) (19.2%) (2.1%) 10.4% 20.7%P/EPS 10.0x 17.0% 15.0% 13.1% 11.3% 9.5% 10.0x NM NM (51.9%) (16.9%) 0.4% 13.1% 23.5%

Terminal 11.0x 19.5% 17.5% 15.6% 13.7% 12.0% 11.0x NM NM (50.2%) (14.8%) 2.7% 15.6% 26.1%Multiple 12.0x 21.8% 19.8% 17.9% 16.0% 14.3% 12.0x NM NM (48.6%) (12.8%) 4.8% 17.9% 28.6%

13.0x 24.0% 21.9% 20.0% 18.2% 16.4% 13.0x NM NM (47.1%) (11.0%) 6.8% 20.0% 30.9%

28

DCF Component Valuation

($ in millions)

-$10

-$5

$0

$5

$10

$15

$20

$25

$30

Standalone DCF Loan Growth - 25% Loan Mark +Capital Contribution

Cost Savings RestructuringCharge

Pro Forma Value

1.3

($5.8)

$31.6 ($20.6)

$1.5 ($1.3)

$5.4

29

Liquidation Analysis

Note: Data as of 9/30/10.(1) Assumes 5% deposit premium and $1.5 million gain on Coral Gables building.(2) Assumes $12.1 million gross credit mark and $1.5 million gain on Coral Gables building.(3) Assumes 5% deposit premium and $12.1 million gross credit mark.(4) Based on tax benefit of deposit premium and write-up of Coral Gables building.(5) Estimated cost to liquidate operations.

($ M)

Deposits Premium Range

Total Premium

$94.7 2.0% - 5.0% $1.9 - $4.7

Credit Mark Sensitivity (1) Deposit Premium Sensitivity (2) Fixed Assets Writeup (Coral Gables Building) Sensitivity (3)

$12.1 $14.0 2.0% 3.5% 5.0% $0.5 $1.5

Gross Credit Mark $12.1 $14.0 $12.1 $12.1 $12.1 $12.1 $12.1

Less: Loan Loss Reserve 1.6 1.6 1.6 1.6 1.6 1.6 1.6

Less: Tax Benefit (4) 2.2 2.2 1.2 1.7 2.2 1.8 2.2

After-tax Net Loan Mark $8.4 $10.3 $9.4 $8.9 $8.4 $8.7 $8.4

Tangible Book Value $6.1 $6.1 $6.1 $6.1 $6.1 $6.1 $6.1

Less: After-tax Loan Mark 8.4 10.3 9.4 8.9 8.4 8.7 8.4

Less: Liquidation Expenses (5) 1.0 1.0 1.0 1.0 1.0 1.0 1.0

Adjusted Tangible Book Value ($3.3) ($5.1) ($4.3) ($3.8) ($3.3) ($3.6) ($3.3)

+ Deposit Premium 4.7 4.7 1.9 3.3 4.7 4.7 4.7

+ Fixed Assets (Coral Gables Building) 1.5 1.5 1.5 1.5 1.5 0.5 1.5

= Total Deal Value $3.0 $1.1 ($0.9) $1.0 $3.0 $1.6 $3.0

Credit Marks (% of Loans)

30

Deposit Premiums Paid in Recent Branch Divestitures(1)

Source: SNL Financial. (1) Includes branch transactions since 2008, with deposits of $50M-$250M, in which deposit premiums were available.

Ann. Branch Target Deposits Loans Deposit PremiumDate Buyer Seller States Region Branches $M Included? $M %Oct-10 Federal One Holdings, LLC Investors Bancorp, Inc. (MHC) MA New England 4 $85 No 0.1$ 0.1 %Aug-10 Grandpoint Capital, Inc. Capitol Bancorp Ltd. AZ West 1 169 Yes 8.4 5.0May-10 Nicolet Bankshares, Inc. Anchor BanCorp Wisconsin Inc. WI Midw est 4 117 Yes 5.9 5.0Apr-10 Premier Financial Bancorp, Inc. Integra Bank Corporation KY, OH Midw est 4 73 Yes 2.5 3.4Apr-10 Jackson Financial Corporation Integra Bank Corporation KY Midw est 3 125 Yes 6.6 5.3Mar-10 Ovation Holdings, Inc. Encore Bancshares, Inc. FL Southeast 4 187 Yes 2.6 1.4Mar-10 First Security, Inc. Integra Bank Corporation KY Midw est 8 188 Yes 8.4 4.5Feb-10 Heritage Financial Group (MHC) PAB Bankshares, Inc. GA Southeast 5 98 Yes 1.1 1.5Feb-10 United Community Bancorp (MHC) Integra Bank Corporation IN Midw est 3 54 Yes 2.4 4.5Jan-10 American Bank Holdings, Inc. BCSB Bancorp, Inc. MD Mid-Atlantic 4 81 No 1.4 1.7Dec-09 First State Bancshares, Inc. Templar Fund, Inc. MO Midw est 2 68 Yes 3.2 4.7Nov-09 Washington Investment Company Liberty Capital, Inc. CO Southw est 2 62 Yes 1.9 3.0Nov-09 Royal Credit Union Anchor BanCorp Wisconsin Inc. WI Midw est 11 177 Yes 8.0 4.5Sep-09 Bank of Kentucky Financial Corporation Integra Bank Corporation KY Midw est 5 85 Yes 5.5 6.5Jul-09 Arvest Bank Group, Inc. Harrington West Financial Group, Inc. KS Midw est 3 95 Yes 4.1 4.3Jul-09 First Dakota Financial Corporation Alerus Financial Corporation SD Midw est 1 89 No 0.1 0.1Jul-09 First Financial Bancorp. Irw in Financial Corporation IN Midw est 3 143 Yes 0.0 0.0May-09 Investors Bancorp, Inc. (MHC) Popular, Inc. NJ Mid-Atlantic 6 250 No 2.5 1.0Apr-09 Marquette Savings Bank PNC Financial Services Group, Inc. PA Mid-Atlantic 3 95 Yes 3.3 3.5Apr-09 Emclaire Financial Corp. PNC Financial Services Group, Inc. PA Mid-Atlantic 1 90 Yes 3.1 3.4Mar-09 Liberty Shares, Inc. Security Bank Corporation GA Southeast 2 81 Yes 1.6 2.0Mar-09 1867 Western Financial Corporation Wells Fargo & Company CA West 1 86 No 0.6 0.7Feb-09 Bay Commercial Bank Community Bankshares, Inc. CA West 1 53 Yes 0.2 0.5Jan-09 MainSource Financial Group, Inc. American Founders Bancorp, Inc. KY Midw est 3 100 Yes 5.0 5.0Dec-08 Citizens Bancshares Corporation Persons Banking Co., Inc. GA Southeast 1 52 No 3.5 6.8Sep-08 Capital Bank Corporation Omni Financial Services, Inc. NC Southeast 4 105 Yes 6.3 6.0Sep-08 Lincoln Bancorp First Federal Bankshares, Inc. IA Midw est 1 53 Yes 5.6 10.6Jul-08 WSFS Financial Corporation Sun Bancorp, Inc. DE Mid-Atlantic 6 110 No 13.2 12.0Jul-08 Ojai Community Bank Pacif ic Capital Bancorp CA West 2 60 Yes 3.5 5.8Jan-08 Community Bancorp, Inc. Commerce Bancshares, Inc. KS Midw est 2 85 Yes 7.3 8.6

Median 4.4 %

31

Purchase Price Ratio AnalysisAssumes $12 Million Pre-Tax Credit Mark-to-Market (Before Reserves)

Note: Based on 9/30/10 financials.(1) Adjusted for mark-to-market.(2) Includes acquisition adjustments and assumes 35% tax rate.(3) Excludes jumbo CDs.

Purchase Price ($ in millions)$1.0 $2.0 $3.0 $4.0 $5.0 $6.0

Price / Tangible Book Value 0.16x 0.33x 0.49x 0.65x 0.82x 0.98x

Deposit Premium (based on adjusted tangible book value (2) )

Total Deposit Premium 1.8% 2.8% 3.9% 4.9% 6.0% 7.0%

Core Deposit Premium (3) 3.7% 5.9% 8.2% 10.4% 12.6% 14.9%

CABRAL Projection ModelSECTION V

33

Primary Model Assumptions

$ in millions

Capital YIELDS & COSTS 2011 2012 2013 2014 2015Acquisition Price $3.0 Cash 0.25% 0.25% 0.25% 0.25% 0.25%Additional Capital Infusion $13.1 13.0% Closing Total Cap. Ratio Securities 2.25% 2.25% 2.25% 2.25% 2.25%

Loans 5.50% 5.75% 5.85% 6.00% 6.00%Mark-to-Market (Pre-Tax) Core Deposits (Non-CDs) 0.55% 0.55% 0.55% 0.55% 0.55%

Loan Credit Mark $12.0 16.1% of Gross Loans Retail CDs 1.60% 1.60% 1.60% 1.60% 1.60%Loan Rate Mark $0.0 5.00 Yr Amort Period Jumbo CDs 1.60% 1.60% 1.60% 1.60% 1.60%Securities Rate Mark $0.0 1.75 Yr Amort Period Total CDs (Implied) 1.60% 1.60% 1.60% 1.60% 1.60%Deposits Rate Mark $0.0 0.50 Yr Amort Period Total Deposits (Implied) 1.38% 1.37% 1.36% 1.35% 1.34%

Other Int Bearing Liabilities 2.25% 2.25% 2.25% 2.25% 2.25%Cost Savings

Core Non-Interest Exp. Base $4.2 GROWTH RATES 2011 2012 2013 2014 2015Cost Savings 5% Securities 0.0% 0.0% 0.0% 0.0% 0.0%

Loans 12.6% 25.0% 25.0% 25.0% 25.0%Pre-Tax Restructuring Charge $2.0 9.4x Annual Cost Saves Core Deposits (Non-CDs) -5.0% 25.0% 25.0% 25.0% 25.0%

Retail CDs -5.0% 15.0% 15.0% 15.0% 15.0%Core Non-Interest Income Jumbo CDs -5.0% 17.5% 17.5% 17.5% 17.5%

Remittance Fee Income $0.0 Borrow ings & Other Int Bearing Liab. 0.0% 0.0% 0.0% 0.0% 0.0%Other Non Interest Income $0.4 Remittance Fee Income 0.0% 0.0% 0.0% 0.0% 0.0%

Other (non-remittance) Non Interest Income 12.5% 12.5% 12.5% 12.5% 12.5%Prov. Expense on New Loans 1.50% Non Interest Expense Grow th Rate 0.0% 0.0% 0.0% 0.0% 0.0%

Tax Rate 35% OTHER 2011 2012 2013 2014 2015Losses Incurred from Credit Mark 50% 30% 10% 5% 5%

Transaction Closing 6/30/2011 Deposit Losses $0.0

Core Deposit Intangibles VALUATION - DCF & IRR (Base Case)CDI % of Core Deposits 1.50% Threshold Total Capital Ratio 13.0%Years of Amortization 10 years (straight-line) Terminal Multiple (2016E Earnings) 10.0x

Discount Rate 10.0%Deferred Tax AssetsStarting DTAs (Net of DTLs) $3.4Annual NOL Limit % of Purch. Price 4.15%Starting NOL $0.0

34

Pro Forma Balance Sheet SummaryBALANCE SHEET CABRAL Mark-to- BB Purchase ProPRO FORMA ADJUSTMENTS Bal Sheet Market USA HoldCo Adj. Forma

Cash $10.6 16.1 ($4.3) (b) $22.4Securities 13.1 - 13.1Loans & Leases 74.5 (12.0) 62.5Reserves (1.6) 1.6 Core Deposit Intangibles - 0.7 (c) 0.7 Goodw ill & Other Intang. - 6.6 (d) 7 Other Tangible Assets 10.3 - (a) 10.3Total Assets $106.9 ($10.4) $16.1 $3.0 $115.6

Core Deposits (Non-CDs) $19.7 - $19.7Retail CDs 25.2 - 25.2 Jumbo CDs 49.8 - 49.8 Deposits 94.7 - 94.7 Borrow ings 4.3 4.3 Non-Interest Bearing Liabilities 1.8 - (e) 1.8 Common Equity 6.1 (10.4) 16.1 3.0 14.8 Total Liabilities & Equity $106.9 ($10.4) $16.1 $3.0 $115.6

Notes:

(a) Deferred tax asset from mark-to-market (b) Purchase price & restructuring charge (after-tax) (c) CDI created

(d) Goodwill created from transaction (e) Deferred tax liability created from CDI

BALANCE SHEET SUMMARY Closing 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15

Cash / (Borrow ings) $22.4 $9.5 $10.5 $10.8 $9.8 $7.1Securities 13.1 13.1 13.1 13.1 13.1 13.1 Loans 62.5 70.4 88.0 110.0 137.5 171.8 Other Assets 10.3 10.3 10.3 10.3 10.3 10.3 Tangible Assets 108.3 103.1 121.2 142.9 168.6 199.4 Intangible Assets 7.3 7.3 7.2 7.1 7.1 7.0 Total Assets $115.6 $110.4 $128.4 $150.0 $175.7 $206.4

Core Deposits (Non-CDs) 19.7 18.7 23.4 29.2 36.5 45.7 Retail CDs 25.2 23.9 27.5 31.6 36.4 41.8 Jumbo CDs 49.8 47.3 55.6 65.3 76.7 90.2 Borrow ings & Other Int. Bearing Liab. 4.3 4.3 4.3 4.3 4.3 4.3 Non-Int Bearing Liabilities 1.8 1.8 1.8 1.7 1.7 1.7 Equity 14.8 14.3 15.9 17.8 20.1 22.8 Total Liabilities & Equity $115.6 $110.4 $128.4 $150.0 $175.7 $206.4

Tangible Common Ratio 6.9% 6.8% 7.2% 7.5% 7.7% 7.9%

35

Pro Forma Income Statement

Half Year Year EndedPRO FORMA INCOME STATEMENT 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15

CABRAL Net IncomeNet Interest Income $1.320 $3.426 $4.430 $5.786 $7.311Provisions for New Loans (0.213) (0.475) (0.594) (0.742) (0.928) Remittance Fee Income - - - - - Other Non Interest Income 0.246 0.549 0.618 0.695 0.782 Core Non Int. Expense (2.140) (4.245) (4.245) (4.245) (4.245) Standalone Pre-Tax Income (0.787) (0.744) 0.209 1.494 2.921

Acquisition Adjustments - Pre-TaxCost Saves 0.053 0.212 0.212 0.212 0.212 Loan Income Adjustment For Credit Mark 0.330 0.138 0.070 0.036 - Amortization of MTM Adjustments - - - - - Amortization of CDI (0.034) (0.067) (0.067) (0.067) (0.067) Pre-Tax Acquisition Adjustments 0.350 0.283 0.215 0.181 0.145

Pro Forma Pre-Tax Income (0.437) (0.462) 0.425 1.675 3.066 Provision for Taxes - - - - -

Pro Forma Net Income (0.437) (0.462) 0.425 1.675 3.066

PROFITABILITY RATIOS

Net Interest Margin 2.90% 2.99% 3.23% 3.57% 3.83%Total Non Interest Income / Average Assets 0.43% 0.46% 0.44% 0.43% 0.41%Non Interest Income / Revenue 15.7% 13.8% 12.2% 10.7% 9.7%Non Interest Expense / Average Assets 4.02% 3.78% 3.21% 2.73% 2.31%Efficiency Ratio - Standalone 136.7% 106.8% 84.1% 65.5% 52.4%Efficiency Ratio - Pro Forma for Cost Saves 133.3% 101.4% 79.9% 62.2% 49.8%ROAA - Pro Forma -0.77% -0.39% 0.36% 1.20% 1.88%ROAE - Pro Forma -5.96% -3.05% 2.52% 8.85% 14.30%

36

Discount Rate CalculationBased on Capital Asset Pricing Model (“CAPM”)

Beta (Based on Peer Data) Cost of Equity Calculation

Company Ticker Beta

Seacoast Banking SBCF 1.22 Risk Free Rate (20 Year Treasury) 4.0%

Capital City Bank CCBG 0.91 Equity Risk Premium (long horizon) 6.5% (1)

Jacksonville Bancorp JAXB 0.44 Assumed CABRAL Beta 0.93

Center State Banks CSFL 0.31

Charter Financial CHFN 0.95 CABRAL Cost of Equity 10.0%

Encore EBTX 0.96

Median 0.93

(1) Per Ibbotson Associates (industry-leading authority on cost of capital). Ibbotson equity risk premium based on data from 1926-2008.