Press Releases

HOPEWELL VALLEY COMMUNITY BANK
PRESS RELEASE

For Immediate Release
Hopewell Township, NJ

HOPEWELL VALLEY COMMUNITY BANK ANNOUNCES RECORD EARNINGS
AND CONTINUED GROWTH FOR 2003

Hopewell Township, NJ – January 22, 2004 – Hopewell Valley Community Bank (“HVCBank”) Chairman Patrick L. Ryan and President/CEO James Hyman announced that the institution achieved record earnings and strong growth during 2003. Net income before taxes jumped 101.4% to $1,040,835 from the 2002 total of $516,696. The Bank’s net income for the year rose 43% to $739,475 from the untaxed 2002 net income of $516,696. 2003 earnings per share of $.54 compared to $.41 in 2002 on a fully diluted basis for HVCBank’s recent 5% stock dividend. The major factors driving increased profitability during 2003 were strong increases in both net interest income and non-interest income, which rose 24.4% and 51.3% respectively, while operating expenses rose a smaller 17%.

Fourth quarter 2003 net income before taxes was up 93.6% at $308,227 compared to $159,200 during the same 2002 period when no income taxes were paid. Net income for the fourth quarter of 2003 period increased 31.5% to $209,407, over the same 2002 period total of $159,200. Fully diluted earnings per share were comparable at $.13 during the 2003 and 2002 periods.

HVCBank’s year-end 2003 total assets rose to $133,419,404, a 29.7% increase over the December, 2002, year-end figure of $102,849,578. Total deposits surged 31% to $119,517,358 at year-end 2003 from $91,193,275 at the conclusion of 2002. Loan growth kept pace, rising 25.7%, ending 2003 at $91,708,700 from $72,984,214.

Shareholder equity increased year over year 45.1%, ending 2003 at $13,473,983, well over the 2002 year end total of $9,287,696. This increase is attributable to net earnings, warrants converted from the 2001 stock offering, and the sold out 2003 stock offering.

Chairman Ryan observed that: “2003 was an outstanding year for HVCBank on all fronts. We achieved strong growth in profitability, increased market share in deposits, realized strong overall growth in assets, and added over $4,000,000 to our capital base. These accomplishments are due to the excellence of our staff, our acceptance by the community, and the loyalty of our customers.”

President and CEO James Hyman said: “HVCBank’s level of increasing profitability and strong capital base allowed us to pay another 5% stock dividend this month and positions us to continue our growth in 2004. Gains in small business and home equity lending, coupled with increases in residential mortgage loans, drove our progress across all performance categories. We have momentum going into 2004 and anticipate opening our previously announced “County Line Office” on Routes 31 & 518, in June, 2004.”

Unaudited Results December 31, 2003 December 31, 2002  % Change
Total Interest Income $5,962,079 $5,088,654 17.2%
Total Noninterest Income $896,072 $592,251 51.3%
Total Income $6,858,151 $5,680,905 20.7%
Interest Expense ($2,016,651) ($1,916,250) 5.24%
Net Interest Income $3,945,428 $3,172,404  24.4%
Total Operating Expense ($3,800,665) ($3,247,959) 17%
Net Income Before Taxes $1,040,835 $516,696 101.4%
Taxes $301,360 -0- --
Net Income $739,475 $516,696 43.1%
Earnings Per Share $.54 $.41 31.7%

Hopewell Valley Community Bank is a locally owned and managed full service, FDIC insured commercial bank. Founded in 1998, HVCB provides a friendly, personalized banking experience for residents and small business owners through its three branches in Mercer County 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