Old Harbor Bank Announces First Quarter 2008 Operating Results

CLEARWATER, Fla., April 16  /PRNewswire-FirstCall/ -- William W. Short, President of Old Harbor Bank, Clearwater, Florida (OTC:OHBK) (BULLETIN BOARD: OHBK)  announced first quarter 2008 operating results.

Total assets at March 31, 2008, were $241 million, a $45 million (23%) increase over the previous year. Total loans were $177 million, a $32 million (22%) increase and total deposits were $210 million, a $38 million (22%) increase. Nonperforming assets at quarter-end were $14.7 million.

The net loss for the three months ended March 31 was $464,000 ($.23 per share) compared to earnings of $37,000 ($.02 per share) for the same period in 2007.  The net loss for the quarter was attributed to three major components: a narrowing of the Bank's net interest margin due to the rapid decrease in the Prime Rate, loans that became significantly delinquent and stopped accruing interest during the quarter and an increased provision against possible loan losses. Management remains committed to the overall strategy of growing assets, loans, and deposits despite challenging economic conditions. Non-performing assets are being aggressively pursued to resolution.

Old Harbor Bank is a community bank 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 Belleair Bluffs, Dunedin, New Port Richey, Palm Harbor, 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)

                                                            At
                                                  March 31,      March 31,
                                                    2008           2007

  Total assets                                    $240,564        196,284
  Loans, net                                     $ 177,220        144,778
  Deposits                                        $210,171        172,250
  Stockholders' equity                             $23,272         23,096
  Book value per share                              $11.70          11.61
  Number of common shares outstanding            1,989,224      1,989,224


                                                 Three Months   Three Months
                                                     Ended         Ended
                                                   3/31/2008     3/31/2007
  Interest income                                   $3,314          3,289
  Interest expense                                   2,113          1,908
  Net interest income                                1,201          1,381
  Provision for loan losses                            474            172
  Net interest income after provision                  727          1,209
  Noninterest income                                    85             51
  Noninterest expense                                1,547          1,193
  Earnings (loss) before income taxes                 (735)            67
  Income tax expense (benefit)                        (271)            30
  Net earnings (loss)                                $(464)            37
  Per Share                                          $(.23)           .02


DATASOURCE: Old Harbor Bank



CONTACT:  William W. Short, President of Old Harbor Bank, [phone],





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

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