CORNELIA, Ga., Aug. 18 /PRNewswire-FirstCall/ -- David D. Stovall, President and Chief Executive Officer of Habersham Bancorp (Nasdaq: HABC) reported that the Board of Directors of Habersham Bancorp has declared a third quarter 2008 dividend of five (5.0) cents per share. The third quarter 2008 dividend of five (5.0) cents per share represents a reduction in the quarterly dividend of five (5.0) cents per share from the first quarter 2008 and the second quarter 2008 dividends of ten (10.0) cents. The third quarter dividend of five (5.0) cents due to shareholders of record on September 1, 2008 will be paid September 15, 2008.

As to the announcement, Stovall stated, 'Even with the company's strong capital position, the board of directors, after careful deliberations, has decided that, given the current uncertainties in the economy, including unprecedented declines in real estate valuations in our markets, it is prudent for us to retain more capital in this environment. This action is in line with our conservative management of the company over the long term, and will allow us to build our capital base, while better positioning our company for future growth. As will be recalled, over the past four years, our shareholders have been rewarded with special dividends of $2.50, over and above our regular quarterly dividends. This reduction is in the same vein of managing the capital of the company in the best interest of the shareholders.'

Habersham Bancorp owns Habersham Bank, headquartered in Clarkesville, Georgia, with offices located in Cornelia, Baldwin, Braselton, Cleveland, Canton, Flowery Branch, Hickory Flat, Cumming, Toccoa, Eastanollee and Warrenton, Georgia. Habersham Bancorp also owns Advantage Insurers, Inc., headquartered in Cornelia, Georgia, an insurance subsidiary of Habersham Bank.

The Company's stock is listed on the Nasdaq Global Market under the symbol HABC.

SOURCE Habersham Bancorp