December 31, 2007

At NVE, we pride ourselves on the long standing strength of our institution and the commitment to the communities we have served since 1887. With another successful year behind us, we are proud of the history of your bank and excited for the future.

In 2007, we continued to concentrate on expanding our commercial and residential product offerings. We remain an active participant in the commercial mortgage market and offer personalized service to our local business partners. We have always been a trusted source for home mortgage financing and we invite you to contact one of our mortgage specialists to find the product that best suits your needs.

As a community oriented bank, NVE supports the needs of our local neighbors and organizations. Whether it's making a donation, taking part in a charity event or putting together a team to raise funds, we are there to lend a hand!

For 2008, we plan to establish a new Scholarship Program for local graduating seniors, implement staff training to build on our sales and relationship skills and upgrade the interface to our data processing system to continue to provide a range of products and services to better serve all of our customer needs.

On behalf of the directors, officers and staff of NVE Bank, we welcome your input and we thank you for your business.

For bigger dreams...NVE Bank.

Sincerely,

Robert S. Monteith
President &
Chief Executive Officer

Statement of Financial Condition