HVCBANK UPDATE

   HOPEWELL TOWNSHIP — Hopewell Valley Community Bank (PinkSheets: HWDY) announced earnings for both the second quarter and for the first six months of 2012.
   Additionally, the bank’s Board of Directors declared a semi-annual $.05 cash dividend payable on Sept. 7, 2012, to shareholders of record Aug. 8, 2012.
   The bank’s net income for the June quarter of 2012 was $456,664, a 27.7 percent decrease from the $631,584 mark for the equivalent 2011period. Earnings for the first six months of 2012 totaled $946,919, 19.3 percent less than the $1,173,722 earned in the first six months of2011. Income taxes paid by the bank for the first six months of 2012, totaled $414,400.
   Total deposits concluded the 2012 second quarter at $355,412,696, a sharp 13.6 percent increase from the $312,975,856 mark at the end of June 2011.
   HVCBank’s total assets for the recently completed 2012 quarter climbed to $422,070,657, a 15.5 percent increase over the$365,336,179 level recorded at June 30, 2011. Total loans rose to $251,751,540, a 6.2 percent increase over the $237,091,692 mark attained June 2011.
   Total equity at the end of the second quarter, 2012, rose 46 percent to $43,041,706 from $29,478,183 in the comparable 2011 time -frame. The2012 mark includes $11,000,000 of preferred stock sold to the U.S. Treasury under the Small Business Lending Fund program, which was available only to the selected strong community banks that are supporting small business. “The dividend paid to the Treasury is at the rate of 1.0 percent of the amount advanced as we have increased our small business lending well beyond the program’s benchmark increases,” a spokesman said.
   The remainder of the equity increase is attributable to retained earnings, a rise in the value of our security portfolio, and warrant execution from the 2010 stock offering.
   Per share income of $.27 for the first six months of 2012 was down 25 percent over the $.36 mark for2011. Per share income for the second quarter, 2012, of $.13 was a 31.6 percent decrease from the $.19 recorded in the same period in 2011.
   Chairman of the Board Patrick L. Ryan noted that: “While we are experiencing some earnings contraction, we are pleased with the overall progress of the bank in terms of steady growth in loans, assets and deposits. Working through the current economic difficulties will likely take patience over the upcoming years. In the meantime, we retain a good capital position and positive earnings which will allow us to take advantage of opportunities as they arise.”
   ”While the persistent low interest environment has put pressure on our profit margin,” commented President/CEO James Hyman, “the opening and strong reception to our new Flemington Branch was a true highlight of the second quarter. Expanding the bank through strategic development of our branch network is a target during 2012. To that end, we will be opening a ninth office with entry into Somerset County during the third quarter and adding a third Hunterdon County branch in the fourth quarter, bringing our branch network to a total of 10. More information about each location will be forthcoming. Yet, even with this reinvestment into our bank’s future we continue to provide a current return to our shareholders as evidenced through our above announced twelfth consecutive semi-annual cash dividend.”
   Hopewell Valley Community Bank is a locally owned and managed, full-service, FDIC insured commercial bank. Founded in 1998,HVCBank provides a “friendly, personalized banking experience for residents and small business owners with eight banking offices in Hopewell, Pennington, Hamilton, Ewing and Princeton in Mercer County, Ringoes and Flemington in Hunterdon County, and through its fully interactive website at www.hvcbonline.com. And coming soon to Skillman!