Veronica Birch Flores Executive Vice President

Hurricane Sandy - Item Processing Update for November 9^th, 2012

The items of November 7^th and 8^th were not posted last night as promised by our processor. This delay is attributed to other affected banks that were not prepared to close their business day. However, we still expect them to be posted to our systems as transactions with the effective date of November 8^th.

The transactions of today, November 9^th will be posted as transactions of November 9^th, 2012.

We have a reasonable expectation that by the end of the holiday weekend all of the above transactions should be posted. We are hopeful to resume normal operations in Tuesday.

All ACH and electronic transactions have been posted and are up to date.

With regards to the October statements, they are being processed and printed over the weekend and are scheduled to be mailed out on Tuesday. You can view and download October activity online, provided you have our E-Banking - Internet Banking. Our staff is standing Saturday by from 9am - 1pm to answer any questions or concerns that you might have.

The Bank is closed on Monday in recognition of Veteran's Day.

Our staff is staunchly committed to seeing this through and ensuring that your concerns are answered. We appreciate your continued patience. 

Hurricane Sandy - Item Processing Update for November 8^th, 2012

We continue to work with our processor, Jack Henry and Associates to rectify the item processing issues that resulted from the devastation of Hurricane Sandy.  We want to update you on our progress in resolving these critical issues.

Through our diligent efforts and the extraordinary work of our professional banking team, we have finalized the posting of all items from October.  All checks and deposits that we received during the business days of October 29^th  to the 31^st have been posted with the effective date of October 31^st. That is to say that your October statement will reflect those items as October 31^st transactions.  As we stated in our previous press releases, there will be a delay in the delivery of the October statements.  You should expect delivery of the statements in the US Mail by the end of next week.  We are hopeful that electronic statements for October should be available by this weekend.

All deposits and checks received on the business days of November 1^st through November 5^th  have been posted as November 5^th transactions.

Remote deposit capture deposits for the dates of November 1^st through November 6^th have been posted as transactions of November 6^th.

All deposits and checks received on the business day of November 6^th have been posted as transactions of November 6^th.

All deposits, including remote deposit capture deposits, and checks received on the business days of November 7^th and 8^th will be posted as transactions of November 8^th.

We apologize for the delays and inconvenience that this very frustrating situation has caused you. While we know it is inconvenient for some to not have the precise dates on certain transactions, we have been able to ensure that all of the October items reflect in the October statements.

Rest assured that our staff continues to work around the clock on this issue. The processing center in New Jersey continues to be inoperable and all of our processing is being done at an alternate secure facility.

Our professional bankers continue to stand by to assist you with issues and to answer any questions or concerns that you might have. Please contact your personal banker or call us at 305-667-5511.  We appreciate your patience and understanding as we work with the far reaching effects of this epic storm.

Our thoughts and prayers are with the thousands upon thousands of people that continue to suffer in this storm ravaged area.

Sincerely.

Veronica Birch Flores

Executive Vice President

First National Bank of South Miami