Press Releases
HOPEWELL VALLEY COMMUNITY BANK
PRESS RELEASE
For Immediate Release, Hopewell Township, NJ
HVCBANK 3RD QUARTER EARNINGS INCREASE SHARPLY
Hopewell Township, NJ – October 18, 2005 – Hopewell Valley Community Bank (PinkSheets: HWDY) announced that the Bank’s net earnings continue to surge. The Bank achieved a 48% gain for the third quarter, 2005, with record net earnings of $471,944 as compared to $317,773 in the 2004 period. Net earnings for the first nine months of 2005 totaled $1,166,696, up 36% from $855,331 earned in the first nine months of 2004.
Total deposits ended the 2005 third quarter at $173,188,447, showing a strong 27% increase from the $136,428,879 mark at the end of September, 2004. HVCBank’s total assets for the recently completed 2005 quarter climbed to $189,807,851 which is a 23% increase over the $153,879,699 mark recorded at September 30, 2004. Total loans rose 31% to $142,337,810 over the $108,984,855 mark attained in September, 2004.
Net income before state and federal taxes jumped a strong 43% to $1,720,129 over the corresponding 2004 nine month figure of $1,206,891. However, for the first nine months of 2005, taxes increased 57% to $553,433 as compared to $351,560 at September 30, 2004, as the Bank’s tax exposure continues to increase with the reduction of tax deferrals from losses in the Bank’s start up period.
Total stockholder equity for the second quarter, 2005, rose 9% to $15,704,702 from $14,389,792 in the comparable 2004 time frame, primarily on the basis of higher retained earnings. The major factors driving HVCBank’s increased profitability over the first nine months of 2005 were a $1,167,648 increase in net interest income and a $110,609 rise in non-interest income while total operating expenses were held to a $765,019 increase. On a basic per share basis, net income for the second quarter increased 50%, going from $.16 per share to $.24 per share. For the full nine months of 2005, basic per share net income increased 36% over the same nine months in 2004, rising to $.60 from $.44.
Chairman of the Board, Patrick L. Ryan, noted that: “Our bank enjoyed a very solid third quarter featuring significant institutional and earnings growth despite a very competitive banking environment. We sincerely thank all of our stockholders, depositors and customers for their continued loyalty and support.”
President and CEO, James Hyman, commented that: “While we had a very gratifying third quarter, we are not taking any success we have attained for granted. We will continue to offer attractive loan and deposit products such as our 3.5% statement savings account and prime based home equity products. Our new Hopewell Crossing branch is in the final stages of construction and we look forward to its November opening.”
| Nine Month Unaudited Results | September 30, 2005 | September 30, 2004 | % Change |
| Total Interest Income | $7,483,765 | $5,362,025 | 40% |
| Total Noninterest Income | $812,387 | $701,778 | 16% |
| Total Income | $8,296,152 | $6,063,803 | 37% |
| Interest Expense | ($2,593,254) | ($1,639,162) | 58% |
| Net Interest Income | $4,890,511 | $3,722,863 | 31% |
| Total Operating Expense | ($3,982,769) | ($3,217,750) | 24% |
| Net Income Before Taxes | $1,720,129 | $1,206,891 | 43% |
| Taxes | $553,433 | $351,560 | 57% |
| Net Income | $1,166,696 | $855,331 | 36% |
| Earnings Per Share (Basic) | $.60 | $.44 | 36% |
| Total Equity | $15,704,702 | $14,389,792 | 9% |
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