Old Harbor Bank Announces Second Quarter 2008 Operating Results

CLEARWATER, Fla., July 17  /PRNewswire-FirstCall/ -- William W. Short, President of Old Harbor Bank, Clearwater, Florida (OTC:OHBK) (BULLETIN BOARD: OHBK)  announced second quarter 2008 operating results.

Total assets at June 30, 2008, were $242 million, a $44 million (22%) increase over the previous year. Total loans were $193 million, a $38 million (25%) increase and total deposits were $204 million, a $38 million (23%) increase. Nonperforming assets at quarter-end were $13.2 million, a reduction of $1.5 million from the end of the prior quarter. Stockholders Equity remains strong at $22.4 million at the end of the period.

The net loss for the three months ended June 30 was $448,000 ($.23 per share) compared to earnings of $149,000 ($.07 per share) for the same period in 2007.  The net loss for the six months ended June 30 was $912,000 ($.46 per share) compared to earnings of $186,000 ($.09 per share) for the same period in 2007. The net loss is attributed to an increased provision against possible loan losses, a narrow net interest margin caused by the rapid decrease in the Prime Rate earlier this year, and operating expenses tied to the opening of the New Port Richey and Clearwater offices. The bank continues to aggressively address improvement to the interest margin, control operating expenses, and work through the non-performing loans.

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, Clearwater, 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
                                      June 30,         June 30,
                                        2008             2007

  Total assets                $       241,560          197,878
  Loans, net                  $       192,615          154,313
  Deposits                    $       203,671          165,759
  Stockholders' equity        $        22,416           22,970
  Book value per share        $         11.27            11.55
  Number of common shares
   outstanding                      1,989,224        1,989,224


                                     Three Months     Three Months
                                        Ended            Ended
                                      6/30/2008        6/30/2007

  Interest income             $         3,404            3,508
  Interest expense                      1,960            1,946
  Net interest income                   1,444            1,562
  Provision for loan losses               494              119
  Net interest income after
   provision                              950            1,443
  Noninterest income                       85               69
  Noninterest expense                   1,745            1,264
  Earnings (loss) before
   income taxes                          (710)             248
  Income tax expense (benefit)           (262)              99
  Net earnings (loss)         $          (448)             149
  Per Share                   $          (.23)             .07



                                      Six Months       Six Months
                                        Ended            Ended
                                      6/30/2008        6/30/2007

  Interest income             $         6,718            6,797
  Interest expense                      4,073            3,854
  Net interest income                   2,645            2,943
  Provision for loan losses               968              291
  Net interest income after
   provision                            1,677            2,652
  Noninterest income                      170              120
  Noninterest expense                   3,292            2,457
  Earnings (loss) before
   income taxes                        (1,445)             315
  Income tax expense (benefit)           (533)             129
  Net earnings (loss)         $          (912)             186
  Per Share                   $          (.46)             .09


DATASOURCE: Old Harbor Bank



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

[phone], 



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

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