Old Harbor Bank Announces Second Quarter 2008 Operating Results

    CLEARWATER, Fla., July 17 /EMWPresswire/ -- William W. Short,

President of Old Harbor Bank, Clearwater, Florida (OTC 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 (727) 451-2265. 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