Old Harbor Bank Announces Third Quarter 2006 Operating Results and Opening of New Office

CLEARWATER, Fla., Oct. 10  /PRNewswire-FirstCall/ -- Barry K. Miller, Chairman and Chief Executive Officer of Old Harbor Bank, Clearwater, Florida (OTC:OHBK) (BULLETIN BOARD: OHBK)  announced today third quarter 2006 operating results and the opening of its fifth office. This office is located in Belleair Bluffs, Pinellas County, Florida.

Net profit for the quarter was $28,000 ($.01 per share) compared to a profit of $51,000 ($.04 per share) for the same quarter in 2005.  The year-to- date loss for 2006 was $149,000 ($.07 per share) compared to a loss of $21,000 ($.01 per share) for the same period in 2005. The year-to-date 2006 results are approximately 28% better than the company's expectations. The company's 2006 results have been impacted by the increased operating expenses relating to the three new offices that were opened subsequent to June 30, 2005.

Total assets at September 30, 2006, were $159 million, a $44 million (38%) increase over the previous year. Total loans were $117 million, a $39 million (50%) increase and total deposits were $129 million, a $33 million (35%) increase.

Old Harbor Bank is a community bank, with total assets of $159 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, Trinity and Belleair Bluffs, 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
                                               September 30,  September 30,
                                                   2006           2005

  Total assets                                    $159,074        114,874
  Loans, net                                     $ 117,361         77,960
  Deposits                                        $128,848         95,479
  Stockholders' equity                             $22,918         13,980
  Book value per share                              $11.53           9.78
  Number of common shares outstanding            1,987,578      1,428,800

                                                Three Months   Three Months
                                                   Ended          Ended
                                                 9/30/2006      9/30/2005
  Interest income                                   $2,657          1,626
  Interest expense                                   1,416            673
  Net interest income                                1,241            953
  Provision for loan losses                            102             31
  Net interest income after provision                1,139            922
  Noninterest income                                    82             28
  Noninterest expense                                1,170            866
  Earnings before income taxes                          51             84
  Income tax expense                                    23             33
  Net earnings                                         $28             51
  Per Share                                           $.01            .04

                                                 Nine Months    Nine Months
                                                    Ended          Ended
                                                  9/30/2006      9/30/2005
  Interest income                                   $6,908          4,198
  Interest expense                                   3,484          1,674
  Net interest income                                3,424          2,524
  Provision for loan losses                            397            371
  Net interest income after provision                3,027          2,153
  Noninterest income                                   182             69
  Noninterest expense                                3,432          2,250
  Earnings (loss) before income taxes                 (223)           (28)
  Income tax expense (benefit)                         (74)            (7)
  Net earnings (loss)                                $(149)           (21)
  Per Share                                          $(.07)          (.01)


DATASOURCE: Old Harbor Bank



CONTACT:  Barry K. Miller of Old Harbor Bank, [phone]



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

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