Harmony Bank Announces 2Q Earnings, Dividend, and Plans for a Third Office

Posted on August 2, 2012 By

Jackson, NJ – August 2, 2012. Harmony Bank (the “Bank”) today reported the results for the quarter and the six months ending June 30, 2012. The Board of Directors also announced a 5 percent stock dividend for common shareholders. The dividend is payable on August 29, 2012, to shareholders of record as of August 15, 2012. Currently, the Bank has 1,508,683 shares of common stock issued and outstanding.

In addition, Harmony Bank announced its continued expansion with the planned opening of a third office, 104 Route 37 East in Toms River, N.J., in the winter of 2012. The Lakewood Branch opened December 2010.

For the quarter, which ended June 30, 2012, the Bank reported a net income of $148,335 or $0.10 per share, compared to $73,208 or $0.05 per share for the same period in 2011, an increase of $75,127 or 102.6 percent.

For the six months, which ended June 30, 2012, the Bank reported net income of $300,793 or $0.20 per share, a significant increase over the $20,971 or $0.01 per share reported for the same period in 2011.

As of June 30, 2012, the total assets of Harmony Bank were $137.1 million, an increase of 39 percent over the $99 million reported June 30, 2011. Total loans have increased $25.3 million or 32 percent to reach $105.1 million as of June 30, 2012, compared to $79.8 million as of June 30, 2011. Total deposits at the Bank increased 39 percent to $120.3 million at June 30, 2012, compared to $86.5 million at June 30, 2011.

“We are pleased with our balance sheet growth, which has led to the significant  increase in earnings over the past year,” said Michael A. Schutzer, President and CEO of Harmony Bank.

Non-performing assets as of June 30, 2012, were $955,000 as compared to $250,000 on June 30, 2011. The increase was attributable to one commercial loan added to non-performing status; however, total non-performing assets were unchanged from the prior quarter end.

At June 30, 2012, Harmony Bank exceeded its applicable regulatory capital requirements with Tier 1 leverage, Tier 1 risk-based capital and total risk-based capital ratios of 12.07 percent, 15.38 percent and 16.63 percent, respectively.

As a step towards providing future liquidity for existing shareholders and other interested potential investors, the Bank has listed its common shares on the OTCQB market under the symbol HRMB. Visit http://www.otcmarkets.com/stock/HRMB/quote for a link to the quote.

About Harmony BankHarmony Bank is a state chartered FDIC insured commercial bank that opened for

business in September 2008. Its headquarters are located in Jackson, N.J., with one branch office located in Lakewood, N.J.

Forward-Looking Statements

This release contains certain “forward-looking statements” about Harmony Bank, which, to the extent applicable, are intended to be covered by the safe harbor for forward-looking statements provided under the Federal securities laws; and, regardless of such coverage, you are cautioned about.  Such statements are not historical facts and involve certain risks and uncertainties.  Actual results may differ materially from such forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, but are not limited to:

  • A severe decline in the general economic conditions of New Jersey;
  • higher than expected increases in our allowance for loan losses;
  • higher than expected increases in loan losses or in the level of nonperforming loans;
  • unexpected changes in interest rates;
  • a continued or unexpected decline in real estate values within our market areas;
  • lack of liquidity to fund our various cash obligations;
  • unanticipated reduction in our deposit base; and
  • other unexpected material adverse changes in our operations or earnings.

We undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in our expectations. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

Contacts at Harmony Bank:

Michael A. Schutzer, President and CEO

mschutzer@myharmonybank.com

Michael J. Gormley, EVP/ CFO

mgormley@myharmonybank.com

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