Press Releases
HOPEWELL VALLEY COMMUNITY BANK
PRESS RELEASE
For Immediate Release, Hopewell Township, NJ
HVCBANK EARNINGS CONTINUES RECORD PACE IN 2005 AS ASSETS TOP THE $200,000,000 MARK
BOARD OF DIRECTORS ANNOUNCES INITIAL CASH DIVIDEND
Hopewell Township, NJ – January 25, 2006 – Hopewell Valley Community Bank (PinkSheets: HWDY) announced record earnings and strong growth for the seventh consecutive year during 2005. HVCBank’s Board of Directors also approved the Bank’s first ever $.05 per share annual cash dividend. The dividend will be payable on February 28, 2006, to shareholders of record on February 1, 2006.
HVCBank’s net income for the year rose 40.3% to $1,632,163 or $.80 per share from the 2004 full year total of $1,163,390 or $.60 per share. For the fourth quarter, net income increased 51.1% to $465,467 or $.20 per share over the equivalent 2004 mark of $308,059 or $.16 per share. The major factor driving increased profitability during 2005 continued to be positive operating leverage, with net interest income jumping 29.3% to $6,688,054 and total income surging 37.9% to $11,549,178, while total operating expenses rose by a smaller 21.6% margin.
HVCBank’s year-end 2005 total assets rose to $200,087,358, a 22.5% increase over the December, 2004, year-end figure of $163,356,683. Total deposits were up 17.6%, jumping to $174,200,568 at year-end, rising from $148,092,568 at the conclusion of 2004. Total loans rose 22.2%, ending the year at $148,745,681.
Shareholder equity sharply increased year-over-year 34.3%, ending 2005 at $19,658,520 as compared to the 2004 year-end total of $14,635,750. The increase reflected rising profitability as well as additional capital raised through the execution of over 95% of the warrants from the 2003 capital offering.
HVCBank’s Chairman, Patrick L Ryan, observed that, “2005 has proven to be a very successful year in terms of overall growth and profitability. All of us at the Bank are very pleased to pay our extraordinarily loyal shareholders their first cash dividend. Reaching the $200,000,000 level in total assets marks a significant milestone for our institution. We thank all of our officers, employees, shareholders, depositors, and customers for their continued support.”
President/CEO, James Hyman, stated, “The recent opening of our new, full service, seven day branch in the Hopewell Crossing Shopping Center exceedingly capped off a great year. We enjoyed excellent organic growth throughout the year as each of our branches contributed solid deposit growth. A highly successful loan marketing effort enabled us to deploy those deposits profitably, thereby contributing greatly to our strong performance. The Cranbury Loan Office continues to grow and bring valuable loan business from that part of Mercer County.”
| Twelve Month Unaudited Results | December 31, 2005 | December 31, 2004 | % Change |
| Total Interest Income | $10,436,572 | $7,465,317 | 39.8% |
| Total Noninterest Income | $1,112,606 | $911,304 | 22.1% |
| Total Income | $11,549,178 | $8,376,621 | 37.9% |
| Interest Expense | ($3,748,518) | ($2,293,229) | 63.5% |
| Net Interest Income | $6,688,054 | $5,172,088 | 29.3% |
| Total Operating Expense | ($5,416,340) | ($4,455,912) | 21.6% |
| Net Income Before Taxes | $2,384,320 | $1,627,480 | 46.5% |
| Taxes | $752,157 | $464,090 | 62.1% |
| Net Income | $1,632,163 | $1,163,390 | 40.3% |
| Earnings Per Share | $.80 | $.60 | 33.3% |
| Total Assets | $200,087,358 | $163,356,683 | 22.5% |
| Total Equity | $19,658,520 | $14,635,750 | 34.3% |
Hopewell Valley Community Bank is a locally owned and managed full service, FDIC insured commercial bank. Founded in 1998, HVCBank provides a friendly, personalized banking experience for residents and small business owners through its four branch banking offices in Hopewell, Pennington, and Hamilton, a loan production office in Cranbury, and through its fully interactive website at www.hvcbonline.com.
For further information, please contact:
Patrick L. Ryan, Chairman of the Board
Hopewell Valley Community Bank
609-818-0111