Community Bank of South Florida Inc (fka CBKS)

[Enterprising Investor]

Consent Order

On February 2, 2012, the Bank entered into a Consent Order agreement (the “Order”) with the Federal Deposit Insurance Corporation (“FDIC”) and the Florida Office of Financial Regulation (“OFR”) to enhance certain aspects of the Bank’s operations. This Order places certain limitations and established required benchmarks which the Bank needs to attain within predetermined target dates. The Bank cannot conclude with any degree of certainty that it will be able to meet all requirements contained in the Order.

The Order required, among other things, that the Bank maintain an 8% Tier 1 Capital and 12% Total Risk Based Capital ratio and submit a written plan to the FDIC and the OFR to reduce classified assets. As of December 31,2012, the Bank was not in compliance with the increased capital ratios as mandated by the Order (NOTE 14). If the Bank is unable to comply with the increased capital requirements, the Bank may be subject to further
regulatory actions by the FDIC and the OFR.

The Tier 1 Capital ratio and Total Risk Based Capital ratio were at 6.5 percent and 10.0 percent, respectively, at 12/31/12. These ratios improved to 7.0 percent and 11.3 percent at 6/30/13.