Harmony Bank Reports Record Second Quarter Earnings

Posted on July 27, 2015 By

Jackson, NJ- July 24, 2015. Harmony Bank (OTCPink:HRMB)(the “Bank”) today reported the results for the quarter and the six months ending June 30, 2015.

For the quarter ended June 30, 2015, the Bank reported net income of $392,939 or $0.16 per share, compared to $110,500 or $0.05 per share for the same period in 2014, an increase of $282,439 or 256 percent. For the six months ended June 30, 2015, the Bank reported net income of $638,125 or $0.26 per share, an increase of
$282,500 or 79 percent from the $355,625 or $0.15 per share reported for the same period in 2014.

The Bank continued to achieve solid balance sheet growth. As of June 30, 2015, the total assets of the Bank were $272.3 million, an increase of 22 percent over the $222.6 million reported June 30, 2014. Total loans as of June 30, 2015 were $218.5 million, compared to $174.6 million for the same period last year, which represents an increase of $43.9 million or 25 percent. Total deposits of the Bank increased 23 percent to $235.5 million at June 30, 2015, compared to $191.8 million at June 30, 2014.

The bank reported that non-performing assets as of June 30, 2015 amounted to one loan totaling $246,567 as compared to one loan totaling $152,090 on June 30, 2014.

Michael A. Schutzer, president and CEO of the Bank, said, “The earnings and asset growth momentum we experienced in 2014 carried over into the first half of this year and allowed us to post strong financial performance metrics. We expect our loan portfolio and earnings will continue to grow at a healthy pace as businesses and consumers benefit from an improving economy and drive demand for banking products and services.”

At June 30, 2015, Harmony Bank continued to maintain capital levels in excess of regulatory requirements to be categorized as “well-capitalized” with total risk-based capital of 12.68 percent, Tier 1 leverage ratio of 10.06 percent and Common Equity Tier 1Capital of 9.93 percent.

Harmony Bank- Second Quarter Report

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 in Lakewood and Toms River, 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

Michael J. Gormley, EVP/ CFO