Letter From Our President


Dear Shareholder:

On behalf of the Board of Directors and the management team of FineMark National Bank & Trust, I am pleased to report on the bank’s performance during the calendar quarter ending March 31, 2010.

First Quarter Financial Highlights

Revenues for the first quarter of 2010 totaled $1.85 million which represents a 70.3% increase over the first quarter of 2009. The bank’s revenue growth was a function of increases in both net interest income and fee income. Non-interest expenses for the quarter totaled $2.1 million which represents a 54.2% increase over the first quarter of 2009. FineMark had a first quarter net loss before taxes of $389,000 compared to a first quarter 2009 net loss before taxes of $483,000. On a cash basis (adding non-cash charges to the net loss), FineMark had a positive cash flow of $99,000.

FineMark experienced strong deposit growth ending the quarter at $201 million, up by $47 million from December 31, 2009. Each office experienced deposit growth. FineMark increased its loan portfolio by $13.6 million for the quarter resulting in total loans outstanding in the amount of $129 million. The bank had no nonperforming assets and no charge-offs during the quarter. As of March 31st, the loan loss reserve was 2.31% of total loans outstanding or $2.99 million which we believe to be a conservative posture in this challenging economic environment.

FineMark’s total assets grew to $269 million as of March 31, 2010. At this same point in time the bank’s securities portfolio grew to $113 million, an increase of $37 million during the quarter.

Investment and trust assets grew from $305 million to $350 million during the quarter. Investment and trust management revenues totaled $434,000 for the quarter, which was a 159% increase over the first quarter of 2009.

FineMark is very well capitalized with a Tier I Capital Ratio of 10.74%. We believe that the bank’s well capitalized position coupled with its high quality loan portfolio and highly rated securities portfolio translates into a strong, conservative balance sheet.

First Quarter Business Highlights

As always and in alignment with our mission statement, “Building Extraordinary Relationships by going Above and Beyond,” we continue to focus on delivering superior service to our clients. One of FineMark’s founding principles is to enhance opportunities to make a positive difference in the communities we serve. We applied the principle by sponsoring a series of internal events including presentations by Wasmer Schroeder, ECHO, PGA Hall of Fame golfer Lanny Wadkins, FGCU President Wilson Bradshaw and Argus. We also sponsored external events on behalf of the American Cancer Society, Florida Repertory Theater, Soup Kitchen at CCMI, BIG Arts, Canterbury School, Susan G Komen Race for the Cure, Art League of Bonita Springs, Speakers Assembly and the United Way.

FineMark National Bank & Trust was featured in a highly favorable article in the Fort Myers News Press on January 17, 2010. You can view the article by visiting our website at www.finemarkbank.com and selecting the News section on the site. We successfully completed our Banking and Community Reinvestment Act examinations by the Office of the Comptroller of the Currency in January.

We thank you for your continued support. Our shareholders have become a tremendous resource to the bank by helping us develop and deepen many relationships. As always, please contact me if you have comments or suggestions. Your input is critical to our success.

Kind Regards,

Joseph R. Catti
President and Chief Executive Officer