Old Harbor Bank and Community Bank & Co. Enter Definitive Agreement

CLEARWATER, Fla., July 8, 2011 /PRNewswire/ -- Old Harbor Bank (OTCBB: OHBK) announced today that it has entered into a definitive agreement pursuant to which Community Bank & Co., Lakewood Ranch, FL will acquire substantially all of its assets and liabilities. In connection with the transaction, the holding company for Community Bank will invest an additional $25 million into Community Bank. Old Harbor's seven banking offices will join Community Bank, which will become one of the largest and best capitalized banks in the Tampa Bay region.

"We are delighted to join together with Community Bank & Co.," stated Anthony N. Leo, Chief Executive Officer of Old Harbor Bank. "This transaction will offer our customers the additional convenience and service of being a part of an outstanding institution with 24 offices throughout the Tampa Bay area."

The transaction has been approved by the Board of Directors of both institutions, as well as the shareholders of the Old Harbor Bank. The transaction is subject to the regulatory approval and other customary conditions. Under the terms of the definitive agreement, Community Bank will acquire the assets of Old Harbor Bank in consideration of its assumption of substantially all of the liabilities of Old Harbor Bank. The transaction will not result in any consideration to shareholders of Old Harbor Bank.

Old Harbor Bank operates seven banking offices in Pinellas and Pasco Counties, and has total assets of approximately $215 million. Kendrick Pierce & Co. of Tampa, FL served as financial advisor to Old Harbor Bank and Bush Ross of Tampa, Florida served as the Bank's counsel.

SOURCE Old Harbor Bank

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