Harmony Bank Announces Redemption of SBLF Preferred Shares

Posted on May 11, 2016 By

Jackson, NJ- May 10, 2016. Harmony Bank (OTCPink: HRMB) (the 11Bank”) today announced it had redeemed all of the 3,500 shares of the Company’s Senior Non-Cumulative Perpetual Preferred Stock, Series B, liquidation amount $1,000 per share (the ({Series B Preferred Stock”) issued to the United States Secretary of the Treasury (the ({Treasury”) in September 2011 pursuant to the Small Business Lending Fund Program ( 11SBLF”). The Series B Preferred Stock was redeemed from the Company’s existing available funds. The redemption terminates the Bank’s participation in the SBLF Program.

Michael A. Schutzer, President and Chief Executive Officer of the Bank, said, “The SBLF program provided our Bank with a great opportunity to enhance our strong capital position and help ensure we could continue to meet the credit needs of businesses in the communities we serve. During our four and half years participating in the program, we provided financing to our small business customers, and paid the lowest dividend rate available under the SBLF until March 15, 2016. During our participation, we continued to grow and strengthen our balance sheet through strong earnings, maintain exemplary asset quality, and conduct a successful capital raise.”

After the redemption, the Bank continues to have capital in excess of levels necessary to be deemed well-capitalized under current regulatory standards.

About Harmony Bank
Harmony Bank is a state chartered FDIC insured commercial bank that opened for business in September 2008. The headquarters is located in Jackson, N.J. and additional branch offices are located in Lakewood and Toms River. Harmony Bank common stock shares are listed on the OTCPink market under the symbol HRMB. Visit http://www.otcmarkets.com/stock/HRMB/quote for a current quote.

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