NVE Bank has emerged from the crisis in the financial industry as one of the strongest community-based organizations in New Jersey. Assets over the past year increased from $589,000,000 to $646,000,000. Furthermore, deposits have increased to $496,000,000 as of December 31, 2009, resulting from continued customer confidence. NVE Bank is conducting business as usual with residents and businesses within the areas we serve, as we have since 1887 when our doors first opened for business.

Additionally, NVE Bank increased its lending activity during 2009. The Bank has excellent liquidity, which will enable us to continue to grow and continue our active lending efforts. We have maintained our strong financial position by being committed to our sound credit underwriting practices and preserving our excellent capital position.

On May 10, 2009, NVE celebrated 122 years in business. Through the years, we've made many positive strides and today we are excited to commemorate our solid financial position, our commitment to the communities we serve, our people, our future and our new look. Recently NVE Bank went through a re-branding process where we revised our tagline to "You belong here.," updated our Bank colors to green, black and white and installed new outdoor signs at all of our locations. We felt that these new changes represented NVE Bank inside and out, while supporting our mission to be the premier, full-service community bank satisfying the needs of area residents and businesses!

In 2010, NVE Bank will continue to assist the communities we serve -- with our annual Scholarship Program, which has been extended to local high schools and elementary schools in the communities where we are located; participation in the Englewood Breast Cancer Walk and sponsorships of numerous local events.

We are confident about the future of our bank and committed to serving our customers for another 120 years. Feel free to visit any of our 12 conveniently located branches, call toll-free at 1-866-NVE-BANK (683-2265) or visit nvebank.com for more information.

Sincerely,

Robert S. Monteith
President & Chief Executive Officer

Statement of Financial Condition