CORNELIA, Ga., May 6 /PRNewswire-FirstCall/ -- Habersham Bancorp (Nasdaq: HABC) reports first quarter loss of $1,655,000 or $.60 per diluted share compared to first quarter earnings of $59,000 or $.02 per diluted share in 2008.

The decrease resulted principally from decreases in net interest income of approximately $1.1 million and an additional expense from provisions for loan losses of approximately $1.4 million. Decreases in net interest income resulted from: 1) an increase in the total dollar balances of loans on nonaccrual status and 2) the total balances of variable rate loans tied to a decreasing interest rate. Nonperforming assets increased approximately $340,000 from December 31, 2008 to March 31, 2009 as increases in other real estate totaling approximately $5.0 million were offset by decreases in nonaccrual loans and accruing loans 90 days past due of approximately $4.0 million and $676,000, respectively.

The net interest margin for the first quarter of 2009 was 2.38% when compared to 3.31% for the first quarter of 2008. Average interest-earning assets decreased approximately $16.9 million and average interest-bearing liabilities increased approximately $21.6 million when comparing first quarter of 2009 to first quarter of 2008.

Total assets of $512.4 million at March 31, 2009 reflect an increase of $17.6 million or 3.55% from $494.9 million at December 31, 2008. The increase reflects increases in cash and cash equivalents, in other real estate, in the investment securities portfolios and in the total loan portfolios of approximately $9.6 million, $5.0 million, $898,000 and $719,000, respectively. 


                    HABERSHAM BANCORP FINANCIAL HIGHLIGHTS
                                (Unaudited)
           (dollar amounts in thousands, except per share amounts)

                                                      Three Months Ended
    Earnings (Loss) Summary                                March 31,
                                                     2009             2008
                                                     ----             ----

    Interest income                                $5,687           $7,603
    Interest expense                                3,217            4,007
                                                    -----            -----
       Net interest income                          2,470            3,596
    Provision for loan losses                       1,780              423
                                                    -----              ---
       Net interest income after provision for
        loan losses                                   690            3,173
    Other income                                      866            1,030
    Investment securities gains                        58              127
    Other expense                                   4,464            4,467
                                                    -----            -----
         Loss before income taxes                  (2,850)            (137)
    Income tax benefit                              1,195              196
                                                    -----              ---
    Net (loss) earnings                           $(1,655)             $59
                                                  =======               ==
    Net (loss) earnings per share - basic           $(.60)            $.02
                                                    =====              ===
    Net (loss) earnings per share - diluted         $(.60)            $.02
                                                    =====              ===
    Weighted average number of common shares
     outstanding                                2,818,593        2,818,593
                                                =========        =========
    Weighted average number of common and
     common equivalent shares outstanding       2,818,593        2,818,593
                                                =========        =========
    Cash dividends declared per common share           $-             $.10
                                                      ===              ===


                                                March 31,       December 31,
                                                  2009             2008
    Balance Sheet Summary                       ---------     ------------
    Total Assets                                 $512,445         $494,869
    Loans, net                                    310,661          310,607
    Deposits                                      416,819          392,888
    Stockholders' Equity                           40,657           41,998

SOURCE Habersham Bancorp