Despite the current economic condition, NVE Bank remains a stable and solid community bank. As of December 31, 2010, our assets have grown to $679,000,000. This growth is a result of long-standing loyalty to our customers. At NVE Bank, we are conducting "business as usual" with our customers. We have funds to lend to qualified borrowers.

NVE Bank is an independent mutual bank. This means we do not issue stock or exist to maximize returns for stockholders or Wall Street. Our mutual structure allows us to focus on our customers and to better serve our communities. We are able to plan strategically for the long term and not be influenced by the need to meet short-term, quarter-to-quarter returns. It was this need that led many Wall Street banks to take unnecessary risks that resulted in the current financial crisis. We made no subprime loans—a major difference between NVE Bank and the Wall Street banks. Our long-term vision and planning has allowed us to stay financially sound and stable throughout our more than 120 years of existence.

In 2010, along with other successes, NVE celebrated being in business for 123 years. In keeping with our philosophy of community service, during the December holiday season, all our office locations collected many items for the less fortunate among us. We were able to donate many toys, books and food. These donations were made to eight local organizations. As part of our community outreach, NVE employees served lunch at a local shelter. Also, our branch managers taught financial concepts to elementary school students as part of the 14th Annual Teach Children to Save Program. Bank-wide, we took part in and raised funds for Englewood Hospital's 12th Annual Walk for Awareness.

In 2011, NVE Bank will continue to assist the communities we serve and participate in community events. Our 4th Annual Scholarship Program provides $15,000 in scholarship funds to 20 students in our local schools. We continue to invest in the development of our employees and, in response to consumer requests, roll out new products and services. We look forward to enhancements to our system. We will have informative branch monitors, new ATM screens that detail our products and services and connect with customers online.

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

Sincerely,

Robert Rey
President

Statement of Financial Condition

Updated annually each May.