Press Releases

HOPEWELL VALLEY COMMUNITY BANK
PRESS RELEASE

For Immediate Release, Hopewell Township, NJ

HVCBANK ANNOUNCES JUNE 30, 2006 EARNINGS

Hopewell Township, NJ – July 26, 2006 – Hopewell Valley Community Bank (PinkSheets: HWDY) today announced net earnings for the first six months of 2006 totaling $609,799, $.26 per share, compared to $694,752 earned in the first six months of 2005, $.30 per share. Net income was $257,671 for the second quarter of 2006 compared to $354,417 for the second quarter of 2005.

On the deposit side, total deposits ended the 2006 second quarter at $184,631,660, an 8% increase from the $171,549,448 mark at the end of June, 2005. HVCBank’s total assets for the recently completed 2006 quarter climbed to $210,289,311, a 12% increase over the $187,470,671 mark recorded at June 30, 2005. Additionally, total loans rose 15% to $159,991,162 over the $138,981,034 mark attained in June, 2005. Total stockholder equity for the second quarter, 2006, rose 31% to $19,990,417 from $15,298,472 in the comparable 2005 time frame, driven by the exercise of warrants at the end of 2005 as well as increased retained earnings.

Chairman of the Board, Patrick L. Ryan, noted that: "Our net profit margin is where we are under the greatest pressure. The Federal Reserve’s 17 consecutive raises in the federal funds rate have created challenging conditions for all banks in 2006 with the flatness of the yield curve as long-term rates remained disproportionately low compared to short term rates. However, longer term interest rates appear to be finally rising. Nevertheless, HVCB is growing in all the right areas. Our branch network is in a very desirable area of New Jersey, and we enjoy a very good reputation in our community. Regardless of the overall banking climate, we will continue to move forward with enthusiasm and persistence, sticking to our mission we developed when we started the Bank seven years ago…to reward our customers for their trust and generating value for our shareholders."

President and CEO, James Hyman, commented that: “While present business conditions pose challenges, they also provide us with opportunities. We opened our fourth branch in the Hopewell Crossing Shopping Center in January. Our fifth branch is set to open in the Glen Roc Shopping Center in Ewing within the week, and our sixth branch, and first in Hunterdon County, will open in Ringoes in September. When they are all in operation, we will have doubled our branch network in nine months. Even though the bank will assume additional costs, this expansion will provide a base for us to continue growing over the next several years. Additionally, we continue to experience growth in our core loan and deposit products. We are delighted that our commercial lending efforts have built a strong pipeline of loans expected to close for the remainder of the year. New lending initiatives include the ability to offer farm loans sold into the secondary market, as well as a leasing program. On the deposit side, we are rolling out a campaign to focus on the growth of our non-interest bearing deposits and money market checking balances. With all of these new initiatives, the current, improving interest rate environment, plus the addition of two new branch locations, we look forward to the growing success and expansion of our Bank.”

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 James Hyman, President & CEO, Hopewell Valley Community Bank, 609 466-2900, www.hvcbonline.com, jhyman@hvcbonline.com.