Harmony Bank Announces 12th Consecutive Quarter of Positive Earnings

Posted on May 13, 2014 By

Harmony Bank (the “Bank”), with headquarters in Jackson, N.J., today reported its earnings for the first quarter ending March 31, 2014, the 12th consecutive quarter of positive earnings.

For the three months, which ended March 31, 2014, the Bank reported net income of $245,126 or $0.15 per share, an increase of $3,112 or 1.3 percent over the $242,014 or $0.15 per share reported for the same period in 2013. On a pretax basis, income as of March 31, 2014 was $401,847, an increase of $159,833 or 60.8 percent as compared to $242,014 for the quarter ended March 31, 2013. The Bank’s earnings became fully taxable as of January 1, 2014.

As of March 31, 2014, the total assets of Harmony Bank were $214.8 million, an increase of 37.2 percent over the $156.6 million reported at March 31, 2013. Total loans have increased $ 38.1 million or 31.3 percent to $159.8 million as of March 31, 2014 compared to $121.7 million as of March 31, 2013. Total deposits increased 34.3 percent to $186.3 million at March 31, 2014, compared to $138.8 million at March 31, 2013.

President and Chief Executive Officer Michael A. Schutzer said, “We had an excellent first quarter with over $400,000 of pre-tax income resulting from the hard work of our dedicated employees and a loyal customer base. Our continuing efforts to support small businesses through our preferred lender relationship with the Small Business Administration also contributed significantly to our first quarter earnings, our 12th consecutive quarter of positive earnings. Our balance sheet continues to show sustainable growth while maintaining superior asset quality. We continue to hire high quality bankers, recognizing that our future success depends upon the talent and depth of our employees.”

Asset quality remained strong as non-performing assets as of March 31, 2014 were $156,557 as compared to $399,741 as of March 31, 2013.

At March 31, 2014, Harmony Bank continued to maintain capital at levels which are in excess of the required levels to be considered “well-capitalized” with Tier 1 leverage, Tier 1 risk-based capital and total risk-based capital ratios of 8.82 percent, 11.73 percent and 12.98 percent, respectively.

The Bank’s common shares are listed on the OTCQB market under the symbol HRMB. Visit http://www.otcmarkets.com/stock/HRMB/quote for a link to the quote.

About Harmony Bank
Harmony 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 branches located in Lakewood and Toms River, New Jersey. (2120 West County Line Road, Jackson, New Jersey 08527; (732) 364-0088 Fax (732) 364-2805 www.myharmonybank.com)

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
732-719-3710
mschutzer@myharmonybank.com

Michael J. Gormley, EVP CFO COO
732-719-3707
mgormley@myharmonybank.com

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