HOPEWELL VALLEY COMMUNITY BANK
PRESS RELEASE

For Immediate Release
Hopewell Township, NJ

Hopewell Valley Community Bank Earnings Rise Sharply In Third Quarter of 2002

Hopewell Township, NJ – October 22, 2002 – Hopewell Valley Community Bank (HVCB) Chairman Patrick L. Ryan and President/CEO James Hyman announced that growth and earnings for the third quarter of 2002 continued on a sharp upward trend. The Bank’s earnings for the June-September 2002 period increased 64% over the comparable prior year quarter totaling $141,220 ($.13 per share) compared to $85,965 ($.08 per share) in 2001.

Earnings for the first nine months of 2002 totaled $357,496 ($.32 cents per share) leaping 288% over the $92,104 ($.08 cents per share) for the first nine months of 2001.

Increases in net interest income powered profit growth with a 46.3% rise from $1,587,728 on September 30, 2001 to $2,322,483 this September. Non-interest income provided an additional boost increasing a robust 60.2% from $249,637 at the nine month mark in 2001 to $399,924 in the comparable 2002 period. Operating expense increases lagged, rising only 35.5% from $1,745,261 in 2001 to $2,364,911 on September 30, 2002.

Overall, the institution progressed a strong 38.4%, with total assets growing to $90,099,160 from $65,120,400 at September 30, 2001. Total deposits continued their upward trends with a 42.5% rise to $80,905,491 from $56,791,383 at the end of the comparable period in 2001.

President and CEO James Hyman said: “We have enjoyed significant year to year growth during the first nine months of 2002 and are very pleased with our bank’s development. The new Quakerbridge office is responsible for a good deal of our growth and we are making some impressive inroads into the Hamilton banking market. Our “Liberty Banking” product, which features a complete suite of internet and bill paying services, is off to a flying start, and we look forward to continuing our progress.”

Chairman of the Board Patrick Ryan commented: “The principle reason for the progress we have been able to achieve in our first 3 ½ years of operation is the dedicated commitment of all of our officers and employees to high quality customer service. Their enthusiasm and everyday attention to detail has allowed us to build firm relationships which are translating into steady growth and increasing profitability.”

Continued strong growth in the Bank’s deposits have led to its recent introduction of a Home Equity Line of Credit offering a fixed 2.95% interest rate for the first 12 months. Following this period, the credit line carries a low variable rate when opened in conjunction with our “Liberty Checking” account.

Hopewell Valley Community Bank is a full service commercial bank with three offices in Mercer County, is a member of the FDIC, and is an equal housing lender. Founded in 1998, the Bank is locally owned and managed to provide professional, highly personalized banking services to individuals, families and small businesses.


For questions please contact:
James Hyman, President & CEO 
Hopewell Valley Community Bank
609-466-2900
jhyman@hvcbonline.com