Letter From Our President

12/22/2008

Last week’s headlines underscore the importance of financial institution oversight and full disclosure. FineMark National Bank & Trust (FineMark) understands the importance of both and wants to share with you the regulatory environment and corporate governance under which the bank operates. We hope you find this letter to be helpful insight into the controls and oversight that we have in place.

We have identified five critical components that we believe ensure proper oversight and full disclosure. These components are as follows:

  • Independent Internal and External Audit Firms
  • Federal Regulatory Agencies
  • Our Board of Directors and Board Committees
  • Comprehensive Policies and Procedures
  • Insurance

Our Internal Auditors, Jon Campbell & Associates, Inc. and our External Auditors, Hacker, Johnson & Smith PA, are independent of FineMark and both firms specialize in bank compliance and reporting. Mr. Campbell has provided audit services to financial institutions for over 20 years. His firm currently provides services to over 90 banks. Hacker, Johnson & Smith was established in 1974 and has approximately 100 banking clients. Both firms are engaged by our Audit Committee chairman and report directly to the Audit Committee. The firms focus on operational risk, credit risk and compliance risk to ensure that all internal policies are being adhered to consistently. Our auditors also test for compliance with bank regulations. Hacker, Johnson & Smith PA confirms that our financial statements are presented fairly and accurately and performs further tests on our internal controls.

FineMark operates as a National Bank with Fiduciary powers and also as a Bank Holding Company. We are examined by the Office of the Comptroller of the Currency, the Federal Home Loan Bank of Atlanta and the Federal Reserve Bank of Atlanta. The examiners complete collateral verifications, Holding Company examinations and conduct detailed reviews of every facet of the bank, trust and investment areas. While many financial institutions experience anxiety over bank audits and examinations, we view the auditors and examiners as partners to maintain the quality, safety and soundness of FineMark.

Our Board of Directors oversees all aspects of FineMark’s operations and provides guidance to the management team. The Board is comprised of individuals with extensive leadership and management experience. The Bank’s auditors report directly to the Board’s Audit Committee that consists exclusively of independent directors. The Board also formed specialty committees including Loan Committee, Trust Committee and Asset/Liability Committee to participate in oversight of these specific activities.

FineMark’s management team carefully drafted policies and procedures to ensure accountability, integrity and full transparency. The Office of the Comptroller of the Currency and our Board of Directors regularly review, and when appropriate, approve the policies and procedures. The auditors and bank examiners review and monitor compliance with these policies.

We participate in several insurance programs on behalf of our clients. Interest bearing deposits are insured to $250,000 by the FDIC through December 31, 2009. Properly structured and titled accounts may be eligible for additional FDIC insurance. Non interest bearing accounts are fully insured through December 31, 2009. FineMark also carries various insurance policies that further mitigate risk.

The combination of auditors, examiners, policies, procedures and insurance means little without one key element, integrity of the people operating FineMark National Bank & Trust. We hold ourselves to the highest standards. Our goal, as stated in our founding principles, is to “always do what is right for our clients.” We thank you for your confidence in FineMark.

Please call us if you have concerns or questions.

Regards,

David Lucas
Chairman, Board of Directors

Joseph R. Catti
President & CEO Chairman,

Lee J. Seidler
Chairman, Audit Committee
Board of Directors