Bank of Florida Corporation (Nasdaq: BOFL) reported a $2.7 million annual profit for 2007, an increase of 18 percent over the previous year.

Earnings per diluted share for the year were $0.23, 18 percent lower than in 2006.

The company also reported a $970,000 net loss in the in fourth quarter 2007 compared with net income of $677,000 during the same period a year ago.

CEO and president Michael L. McMullan said the deficit was due to the struggling real estate market that caused an increase in nonperforming commercial real estate loans, including those for some large condominium developments.

“We continue to scrub our loan portfolio on a daily basis and have added additional staff, including a special assets team, to focus on loans that show the potential for future problems,” he said. “Our credit review and allowance methodology continue to support and justify our reserve levels, which provide for potential losses inherent in the loan portfolio. It should also be noted that we have no sub-prime loans on our books.”