Press Releases
HOPEWELL VALLEY COMMUNITY BANK
PRESS RELEASE
For Immediate Release, Hopewell Township, NJ
HVCBANK’S EARNINGS CONTINUE TO CLIMB
Hopewell Township, NJ – July 14, 2005 – Hopewell Valley Community Bank (PinkSheets: HWDY) announced that earnings continue to rise at a brisk pace. The Bank achieved a 30% gain for the second quarter, 2005, with record net earnings of $354,417 as compared to $271,869 in the 2004 period. Net earnings for the first six months of 2005 totalled $694,752, up 29% from $537,558 earned in the first six months of 2004.
Total deposits ended the 2005 second quarter at $171,549,448, showing a strong 29% increase from the $132,613,453 mark at the end of June, 2004. HVCBank’s total assets for the recently completed 2005 quarter climbed to $187,470,671 which is a 26% increase over the $149,258,174 mark recorded at June 30, 2004. Total loans rose 29% to $138,981,034 over the $107,534,350 mark attained in June, 2004.
Net income before taxes surged a strong 35% to $1,007,791 over the corresponding 2004 six month figure of $746,998. However, for the first six months of 2005, taxes increased 49% to $313,039 as compared to $209,440 at June 30, 2004 as the bank’s tax exposure increased with the reduction of tax deferrals from losses in the Bank’s start up period.
Total stockholder equity for the second quarter, 2005, rose 11% to $15,298,472 from $13,746,281 in the comparable 2004 time frame, primarily on the basis of increased retained earnings. The major factors driving HVCBank’s increased profitability over the first six months of 2005 were a 31% increase in net interest income and a 33% jump in total income while total operating expenses were limited to a 23% increase.
On a per share basis, net income for the second quarter increased 27%, going to $.19 per share from $.15 per share. For the full six months of 2005, per share net income increased 28% over the same six months in 2004, rising to $.37 from $.29.
Chairman of the Board, Patrick L. Ryan, noted that: “HVCBank has enjoyed an outstanding start in 2005 with solid organic growth in loans and deposits from our existing three branch system. We are particularly gratified that we have been able to maintain our size and profitability growth trends in the current, challenging interest rate environment.”
President and CEO, James Hyman, commented that: “We are very excited about the commencement of construction for our “Hopewell Crossing” branch which is located in the new shopping center on Route 31 serving the most heavily populated area of the Hopewell Valley. We expect to open the office by the end of the year and look forward to providing our unique brand of banking services to the dynamic Brandon Farms community, and nearby areas in Lawrence and Ewing.”
| Six Month Unaudited Results | June 30, 2005 | June 30, 2004 | % Change |
| Total Interest Income | 4,722,195 | $486,849 | 0% |
| Total Noninterest Income | $486,823 | $896,072 | |
| Total Income | $5,209,018 | $3,923,789 | 33% |
| Interest Expense | ($1,595,448) | ($1,060,798) | 50% |
| Net Interest Income | $3,126,747 | $2,376,142 | 32% |
| Total Operating Expense | ($2,605,779) | ($2,115,993) | 23% |
| Net Income Before Taxes | $1,007,791 | $746,998 | 35% |
| Taxes | $313,039 | $209,440 | 49% |
| Net Income | $694,752 | $537,558 | 29% |
| Earnings Per Share | $.37 | $.29 | 28% |
| Total Equity | $15,298,472 | $13,746,281 | 11% |
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 three 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:
James Hyman, President & CEO
Hopewell Valley Community Bank
609 466-2900
jhyman@hvcbonline.com