Letter from the President
Thank you to all of our shareholders who participated in our May 3rd Shareholder's Meeting. If you did not make our meeting, we are pleased to report that 2006 was another exceptional year for Heritage Bancorp and its subsidiary Heritage Bank of Nevada.  The company was able to generate sustainable growth by using successful business strategies implemented by a team of outstanding, qualified professionals.  Total assets of the Bank grew 17% from $235,157,030 FYE 2005 to $275,781,752 FYE 2006.  The quality growth allowed the earnings per share to increase 17% from $2.30 per share FYE 2005 to $2.69 per share in 2006.  The loan portfolio also grew at a rapid pace, increasing 16% from $188,672,436 FYE 2005 to $218,810,322 FYE 2006. We are pleased to report that the Bank did not have any loan losses during the 2006 operating year. Our credit quality continues to be a high priority for Heritage Bank of Nevada.  In addition to a terrific year, we have expanded our commercial mortage operations, significantly improved our technology, added new customer service training programs and continue to focus on premier customer service. We’re also excited to announce the release of a brand new product & services packet for new customers with a fresh new look and feel for the bank. We look forward to another exciting year of developing new relationships and serving the community. Thank you all for your continued dedication to the company; it is because of you that Heritage Bank of Nevada has performed so well over the past years, and it will be because of you that we continue to prosper.

NEWS

New To The Family
On Wednesday, April 11th, 2007, Mayor Geno Martini joined Stan Wilmoth, President and CEO of Heritage Bank of Nevada, and other dignitaries, for the Grand Opening ceremony of the 5th Heritage Bank branch location in Spanish Springs. The new full-service branch, conveniently located at 330 Los Altos Parkway, is in an area currently underserved by community banks. The new location is in close proximity to the Costco in Spanish Springs and includes over 3,400 square feet of building space and an additional 300 square feet of canopy, covering 3 full service drive-up windows, an ATM and a business night drop.  According to David Knaub, President of K7 Construction, Inc., “The new branch features a beautiful exterior, with a modern “high desert” look with only the highest quality stone, brick and veneers.”  The inside of the building features a flat screen HGTV to watch CNN. Stan Wilmoth states, “Our goal has always been to be our community’s finest mid-sized business bank.  We provide great business & consumer financial products, along with all of the technology needed to support them- including innovative on-line business & cash management solutions. We also take great pride in our employees and their relationships with our customers. As a result, we have continued to grow and expand right along with our community, offering a network of over 3,000 surcharge-free ATM’s nationwide and a great variety of products & services.”  The new branch is welcomed by the community.