Old Harbor Bank Announces First Quarter 2007 Earnings

CLEARWATER, Fla., April 18  /PRNewswire-FirstCall/ -- William W. Short, President of Old Harbor Bank, Clearwater, Florida (OTC:OHBK) (BULLETIN BOARD: OHBK)  announced first quarter 2007 operating results. Net profit for the quarter was $37,000 ($.02 per share) compared to a loss of $92,000 ($.06 per share) for the same quarter in 2006. Total assets at March 31, 2007, were $196 million, a $59 million (43%) increase over the previous year. Total loans were $145 million, a $47 million (48%) increase and total deposits were $172 million, a $54 million (46%) increase.

During the quarter a loan on a commercial property located in Florida in which the Bank has a $1.5 million participation interest went over 90 days delinquent and the Bank had to remove $69,000 from interest income, thus negatively impacting earnings for the quarter. This loan is currently being foreclosed by the lead lender. Since the loan is well collateralized, Bank management has not found it necessary to record a specific loss reserve and a near-term resolution is anticipated. As has been the case for well over a year, interest margins continue to be very tight.

Old Harbor Bank is a community bank, with total assets of $196 million, which opened for business in July 2003. The bank provides commercial banking services to Pinellas, southwestern Pasco and northwestern Hillsborough Counties, Florida. Its headquarters office is located at 2605 Enterprise Road, Suite 100, Clearwater, Florida, and its telephone number is [phone]. Community Offices are located in Dunedin, Palm Harbor, Belleair Bluffs and Trinity, Florida.

This press release may contain 'forward-looking statements' that concern future events which are subject to risks and uncertainties. Any such statements are based on certain assumptions and analyses by the Bank and other factors it believes are appropriate in the circumstances. The Bank's actual results, events and developments may differ materially from those contemplated by any forward-looking statement.

                               OLD HARBOR BANK

                             Clearwater, Florida

                             FINANCIAL HIGHLIGHTS
               (Dollars in thousands, except per share figures)
                                 (Unaudited)


                                                           At
                                            March 31,              March 31,
                                               2007                   2006

  Total assets                            $  196,284                136,739

  Loans, net                              $  144,778                 97,743

  Deposits                                $  172,250                117,548

  Stockholders' equity                    $   23,096                 13,816

  Book value per share                    $    11.61                   9.67

  Number of common shares outstanding      1,989,224              1,428,800

                                        Three Months           Three Months
                                            Ended                  Ended
                                          3/31/2007              3/31/2006

  Interest income                         $    3,289                  1,963

  Interest expense                             1,908                    898

  Net interest income                          1,381                  1,065

  Provision for loan losses                      172                    149

  Net interest income after provision          1,209                    916

  Noninterest income                              51                     48

  Noninterest expense                          1,193                  1,106

  Earnings (loss) before income taxes             67                   (142)

  Income tax expense (benefit)                    30                    (50)

  Net earnings (loss)                     $       37                    (92)

  Per Share                               $      .02                   (.06)


DATASOURCE: Old Harbor Bank



CONTACT:  Katie Spies, Community Marketing Officer of Old Harbor Bank,

[phone], 



Web site:  http://www.oldharborbank.com/ 

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