CLEARWATER, Fla., Oct. 31 /PRNewswire-FirstCall/ -- William W. Short, President of Old Harbor Bank, Clearwater, Florida (OTC:OHBK) (BULLETIN BOARD: OHBK) announced third quarter 2008 operating results. Total assets at September 30, 2008, were $241 million, a $30 million (14%) increase over the previous year. Total loans were $189 million, a $23 million (14%) increase and total deposits were $199 million, an $18 million (10%) increase. Nonperforming assets at quarter-end were $10.7 million, a reduction of $2.5 million from the end of the prior quarter. The Bank remains well capitalized with $20.6 million in stockholders' equity at the end of the period. The net loss for the three months ended September 30 was $2,004,000 ($1.01 per share) compared to earnings of $130,000 ($.07 per share) for the same period in 2007. The net loss for the nine months ended September 30 was $2,916,000 ($1.47 per share) compared to earnings of $316,000 ($.16 per share) for the same period in 2007. Earnings realized from profitable core banking operations were countered by the write-down of the bank's largest non- performing loan, as well as smaller specific impairment amounts on other loans within the portfolio. Year to date, the bank has addressed expenses associated with the opening of two offices, declining interest margins from pronounced decreases in the Prime lending interest rate, and workout activities on several large non-performing loans. The bank continues to aggressively address the interest margin, operating expenses, and non-performing assets on an ever improving basis. 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 September 30, September 30, 2008 2007 Total assets $241,153 211,386 Loans, net $ 188,814 165,803 Deposits $198,526 180,875 Stockholders' equity $20,587 23,365 Book value per share $10.35 11.75 Number of common shares outstanding 1,989,224 1,989,224 Three Months Three Months Ended Ended 9/30/2008 9/30/2007 Interest income $3,468 3,700 Interest expense 1,802 2,121 Net interest income 1,666 1,579 Provision for loan losses 3,134 144 Net interest income after provision (1,468) 1,435 Noninterest income 69 72 Noninterest expense 1,809 1,292 (Loss) earnings before income taxes (3,208) 215 Income tax (benefit) expense (1,204) 85 Net (loss) earnings $(2,004) 130 Per Share $(1.01) .07 Nine Months Nine Months Ended Ended 9/30/2008 9/30/2007 Interest income $ 10,186 10,497 Interest expense 5,875 5,975 Net interest income 4,311 4,522 Provision for loan losses 4,102 435 Net interest income after provision 209 4,087 Noninterest income 239 192 Noninterest expense 5,101 3,749 (Loss) earnings before income taxes (4,653) 530 Income tax (benefit) expense (1,737) 214 Net (loss) earnings $(2,916) 316 Per Share $(1.47) .16 DATASOURCE: Old Harbor Bank CONTACT: William W. Short, President of Old Harbor Bank, +1-727-451-2265, Web site: http://www.oldharborbank.com/

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