Old Harbor Bank Announces Third Quarter 2007 Operating Results

CLEARWATER, Fla., Oct. 10  /PRNewswire-FirstCall/ -- William W. Short, President of Old Harbor Bank, Clearwater, Florida (OTC:OHBK) (BULLETIN BOARD: OHBK)  announced third quarter 2007 operating results. Net earnings for the quarter were $130,000 ($.07 per share) compared to earnings of $28,000 ($.01 per share) for the same quarter in 2006. Earnings for the nine months ended September 30 were $316,000 ($.16 per share) compared to a loss of $149,000 ($.07 per share) for the same period in 2006. As reported last quarter, these earnings improvements are attributable to the ability of the Bank to significantly grow the balance sheet over the past year thereby increasing net interest income while keeping operating expenses under control.

Total assets at September 30, 2007, were $211 million, a $52 million (33%) increase over the previous year. Total loans were $166 million, a $48 million (41%) increase and total deposits were $181 million, a $52 million (40%) increase. The Bank has never originated or purchased any "subprime loans" and therefore has no exposure in that area. Nonperforming assets at quarter end were $2.9 million.

Old Harbor Bank is a locally owned and operated community bank, with total assets of $211 million, which opened for business in July 2003. The bank provides commercial and retail 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)

                                                             At
                                                September 30,   September 30,
                                                    2007            2006

  Total assets                                    $211,386        159,074
  Loans, net                                     $ 165,803        117,361
  Deposits                                        $180,875        128,848
  Stockholders' equity                             $23,365         22,918
  Book value per share                              $11.75          11.53
  Number of common shares outstanding            1,989,224      1,987,578

                                                 Three Months   Three Months
                                                    Ended           Ended
                                                  9/30/2007       9/30/2006
  Interest income                                   $3,700          2,657
  Interest expense                                   2,121          1,416
  Net interest income                                1,579          1,241
  Provision for loan losses                            144            102
  Net interest income after provision                1,435          1,139
  Noninterest income                                    72             82
  Noninterest expense                                1,292          1,170
  Earnings before income taxes                         215             51
  Income tax expense                                    85             23
  Net earnings                                        $130             28
  Per Share                                           $.07            .01

                                                 Nine Months     Nine Months
                                                     Ended          Ended
                                                   9/30/2007      9/30/2006
  Interest income                                 $ 10,497          6,908
  Interest expense                                   5,975          3,484
  Net interest income                                4,522          3,424
  Provision for loan losses                            435            397
  Net interest income after provision                4,087          3,027
  Noninterest income                                   192            182
  Noninterest expense                                3,749          3,432
  Earnings (loss) before income taxes                  530           (223)
  Income tax expense (benefit)                         214            (74)
  Net earnings (loss)                                 $316           (149)
  Per Share                                           $.16           (.07)


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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