HOPEWELL VALLEY COMMUNITY BANK
PRESS RELEASE
For Immediate Release
Hopewell Township, NJ
Hopewell Valley Community Bank Earnings Grow;
TOTAL DEPOSITS EXCEED $100,000,000
Hopewell Township, NJ – July 15, 2003 – Hopewell Valley Community Bank (“HVCBank”) Chairman Patrick L. Ryan and President/CEO James Hyman announced that the bank’s pattern of earnings and asset growth continued in the second quarter of 2003.
HVCBank’s total assets for the recently completed 2003 quarter jumped to $110,827,874, a strong 37% increase over the $80,637,665 recorded at June 30, 2002. Total loans also surged 37% to $83,106,031 over the 2002 mark of $60,508,582. Total deposits exceeded $100,000,000 surging to $100,864,874 on June 30, 2003, a 42% increase from the $71,071,384 mark in June, 2002.
Net income before taxes for the second quarter 2003 rose 59% to $220,220 from $138,566 for the same period in 2002. Following an income tax charge of $65,100, second quarter 2003 net income was still up 12% to $155,120 compared to 2002’s $138,566 when no income tax charge was required.
Net income before tax for the first six months of 2003 totaled $451,801, an increase of 109% over the first six months of 2002’s total of $216,276. Net income after tax of $328,701 for the six month 2003 period was 52% higher than 2002’s despite a 2003 tax charge of $123,100.
In addition to the bank’s deposit and asset growth, the major factors driving increased profitability over the past six months were a strong 22% increase in net interest income and a powerful 68% surge in non-interest income while total operating expenses rose only 17%.
On a per share basis, net income for the 2003 second quarter $.13 per share compared to $.12 per share in 2002. For the full six months of 2003 per share net income increased to $.28 compared to $.18 a year earlier.
Chairman of the Board Patrick L. Ryan noted that: “We are extremely pleased with our performance in the opening months of 2003 as we have achieved substantial growth and profitability despite considerable industry and economic challenges. In order to support further growth, we will be conducting a rights offering of common stock and warrants over the next six weeks directed to our shareholders.”
| Unaudited Results | June 30, 2003 | June 30, 2002 | % Change |
| Total Interest Income | $2,826,590 | $2,408,522 | 17% |
| Total Noninterest Income | $ 425,133 | $253,026 | 68% |
| Total Income | $3,251,723 | $2,661,548 | 22% |
| Interest Expense | ($1,006,957) | ($916.880) | 10% |
| Net Interest Income | $1,819,633 | $1,491,642 | 22% |
| Total Operating Expense | ($1,792,965) | ($1,528,392) | 17% |
| Net Income Before Taxes | $451,801 | $216,276 | 109% |
| Taxes | $123,100 | -0- | |
| Net Income | $328,701 | $216,276 | 52% |
| Earnings Per Share | $.28 | $.18 | 56% |
Hopewell Valley Community Bank is a full service commercial bank with three offices in Mercer County, a member of the FDIC and an equal housing lender. Founded in 1998, HVCB is locally owned and managed to provide professional, highly personalized banking services to individuals, families and small businesses.
For further information, please contact:
James Hyman, President & CEO
Hopewell Valley Community Bank
609 466-2900
jhyman@hvcbonline.com