PENNINGTON: HVCBank report has good news for shareholders

Net income for 2008 advanced briskly

   The Board of Directors of Hopewell Valley Community Bank (PinkSheets: HWDY) has announced that 2008 net earnings jumped nearly 54 percent. In the announcement, the board also declared a 10 percent stock dividend and a $.04 per share semi-annual cash dividend. Paying the cash dividend on the increased number of shares has the effect of a 10 percent increase over the 2008 dividend. Both dividends will be payable on March 6, 2009, to shareholders of record on Feb. 17, 2009.
   Net income for 2008 advanced briskly, ending the year at $602,739 or $.26 per share, up 53.8 percent from the 2007 full year total of $391,862 or $.17 per share.
   For the fourth quarter, net income jumped 302 percent to $209,642 or $.09 per share over the equivalent 2007 mark of $52,107 or $.02 per share. The major factors affecting earnings growth during 2008 were an 8 percent increase in net interest income coupled with improved cost controls as total operating expenses grew only 3.2 percent.
   HVCBank also reported that 2008 year-end total assets rose to $260,960,934, a 6.8 percent increase over the December 2007, year-end figure of $244,257,721. Total deposits increased 6.9 percent, finishing 2008 at $215,652,325, topping the 2007 year-end mark of $201,795,340. Total loans advanced 2.4 percent, ending the year at $189,031,355.
   Shareholder equity increased year-over-year 3.1 percent, ending 2008 at $21,735,084 as compared to the 2007 year-end total of $21,091,678.
   HVCBank’s Chairman Patrick L Ryan said: “Everyone in the HVCBank family is delighted that we were able to increase earnings in 2008 despite the difficult financial conditions, and that we are able to reward our very loyal shareholders with a 10 percent cash dividend increase as well as a 10 percent stock dividend. As we enter out tenth year of operation, we will continue to do everything possible to meet the challenges of the national economic situation.”
   President/CEO James Hyman said: “While the national headlines on the financial industry continue to be negative, HVCBank has benefited from the public’s growing awareness of the differences between the major financial institutions and community banks like ourselves. We have had no involvement in the subprime mortgage market, instead having directed all of our attention and business to the communities we know and serve. The bank continues to provide credit to worthy borrowers just as we always have. Following our high-value, relationship-oriented banking model, we have shown solid growth in the balance sheet and income statement during 2008, and we continue to look for new growth opportunities as we enter 2009.”
   Founded in 1998, HVCBank has grown to become the largest locally owned and operated commercial bank headquartered in Mercer County. Celebrating 10 years of providing a personalized banking experience for residents and small business owners, HVCBank is a full service FDIC insured commercial bank with six banking offices in Hopewell, Pennington, Hamilton and Ewing in Mercer County, Ringoes in Hunterdon County, as well as its loan production offices in downtown Cranbury and Flemington, and through its fully interactive Web site at www.hvcbonline.com.