Press Releases

HOPEWELL VALLEY COMMUNITY BANK
PRESS RELEASE

HVCBank Releases 2nd Quarter 2007 Earnings

Board Declares $.04 Cash Dividend

Hopewell Township, NJ – July 26, 2007 – Hopewell Valley Community Bank (PinkSheets: HWDY) announced that the Bank’s Board of Directors has declared a semi-annual $.04 cash dividend payable on September 7, 2007, to shareholders of record August 20th.

The Bank’s net income for the June quarter of 2007 was $109,529, compared the $257,671 mark for the equivalent 2006 period.  Earnings for the first six months of 2007 totaled $220,798 versus the $606,799 earned in the first six months of 2006.

Total deposits ended the 2007 second quarter at $198,704,944, an 8% increase from the $184,631,660 mark at the end of June 2006.  HVCBank’s total assets for the recently completed 2007 quarter climbed to $230,654,334 which is a 10% increase over the $210,289,311 mark recorded at June 30, 2006.  Total loans rose 10% to $175,452,649 over the $159,965,191 mark attained in June 2006.

Total stockholder equity for the second quarter, 2007, rose 4% to $20,736,852 from $19,990,417 in the comparable 2006 time frame driven by increased retained earnings.  The major factor driving HVCBank’s reduced profitability over the first six months of 2006 was a 20% increase in total operating expense compared to net interest income decreasing by 1%.  Total non-interest income improved, recording an 11% increase.

On a per share basis, net income for the second quarter dropped from $.11 per share to $.05 per share.  For the full six months of 2007, per share net income was $.10, down from $.26 over the same six months in 2006.

Chairman of the Board, Patrick L. Ryan, noted that: “While our expanded branch network has added to the operating expenses and adversely impacted our current earnings, we have set the stage for potential future growth by taking advantage of a much larger footprint.”

President and CEO, James Hyman, commented that:  “The current interest rate environment along with its impact on margins and earnings throughout the banking industry continues to present our greatest challenge.  We continue, however, to manage the bank to be sensitive to any change in the current trend that would improve performance without undo risk.  At the same time, we are concentrating on growth of our balance sheet and growth of market share by utilizing the additional branches opened in 2006.”

Six Month Unaudited Results

June 30, 2007

June 30, 2006

% Change

Total Interest Income

$7,376,246

$6,399,471

15%

Total Noninterest Income

$494,935

$447,519

11%

Total Income

$7,871,181

$6,846,990

15%

Interest Expense

($3,916,494)

($2,894,190)

35%

Net Interest Income

$3,459,752

$3,505,281

(1%)

Total Operating Expense

($3,700,039)

($3,070,833)

20%

Net Income Before Taxes

$254,648

$881,967

(71%)

Taxes

$33,850

$275,168

(88%)

Net Income

$220,798

$606,799

(64%)

Earnings Per Share

$.10

$.26

(62%)

Total Equity

$20,736,852

$19,990,417

4%

Hopewell Valley Community Bank is one of the few locally owned and operated full service, FDIC insured commercial banks headquartered in Mercer County , NJ .  Founded in 1998, HVCBank provides a friendly, personalized banking experience and high value products to residents and small business owners through its six branch banking offices in Hopewell, Pennington, Hamilton, Ewing, and Ringoes, 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