HOPEWELL TOWNSHIP, N.J.--(BUSINESS WIRE)--Hopewell Valley Community Bank (PinkSheets: HWDY) reported today that earnings for the first nine months of 2011 rose sharply over the corresponding period in 2010. The Board also declared a $.375 semi-annual dividend on the Bank’s preferred stock. The dividend is payable on December 15, 2011, to preferred shareholders of record November 15, 2011.
The Bank's net income for the January to September period of 2011 was $1,798,177, a 68% increase over the $1,068,946 mark for the same period of 2010. Earnings for the third quarter of 2011 increased at a brisk 44% pace, totaling $624,455 against $434,317 in the prior year. On a per share basis, net income for the nine months ended September 30, 2011, was $0.55, up 57% from the $0.35 recorded for the first nine months of 2010. For the three months ended September 30, 2011, earnings per share were $0.19, 36% above the $.14 earned for the three month period ended September 30, 2010.
Total deposits grew 14%, ending the third quarter at $332,825,252, easily eclipsing the $291,392,939 mark at the end of September, 2010. HVCBank's total asset growth kept pace with deposits, moving up 16% for the third quarter of this year and rising to $400,940,594 versus $346,021,050 as of September 30, 2010. Total loans rose to $241,227,617, an increase of 9% over $221,873,012 in the year earlier period.
The Bank’s increased profitability was driven by a 12% increase in net interest income as well as a 53% increase in non-interest income, while operating expenses rose only 3%.
Retained earnings, investment gains, warrant conversions, and the addition of $11,000,000 in capital from the Small Business Lending Fund propelled a 50% increase in stockholder equity at the end of the third quarter of 2011, to $41,888,831 over $27,916,958 in the corresponding time frame of 2010.
Chairman Patrick Ryan said, "Our Bank turned in a solid performance in the first nine months of the year. We were able to continue our earnings momentum despite the sluggish economy by continuing to grow our loans and deposits while restricting our expense growth to a nominal amount. Passing the $400,000,000 mark is a significant milestone in our development and we thank our shareholders, customers, and depositors for their faith and confidence in us over the years.”
President/CEO James Hyman added, “The Bank’s participation in the Small Business Lending Fund in June really placed us on firm ground for continuing to meet the credit needs of small local businesses. Loan growth has been steady, and we look for increasing growth ahead. Organic deposit growth has been strong, but, new branch plans for Hunterdon County hold out great promise for boosting the pace of that growth.”
| Nine Month Unaudited Results | September 30, 2011 | September 30, 2010 | % Change | ||||
| Total Interest Income | $11,653,519 | $11,486,236 | 1.5% | ||||
| Total Noninterest Income | $1,188,526 | $779,090 | 52.6% | ||||
| Total Income | $12,842,045 | $12,265,326 | 4.7% | ||||
| Interest Expense | ($2,767,060) | ($3,571,347) | (22.5%) | ||||
| Net Interest Income | $8,886,459 | $7,914,889 | 12.3% | ||||
| Total Operating Expense | ($7,302,908) | ($7,080,533) | 3.1% | ||||
| Net Income Before Taxes | $2,772,077 | $1,613,446 | 71.8% | ||||
| Taxes | $973,900 | $544,500 | 78.9% | ||||
| Net Income | $1,798,177 | $1,068,946 | 68.2% | ||||
| Preferred Stock Dividends | $51,855 | $32,605 | 59.0% | ||||
| Net Income Available to Common Shareholders | $1,746,322 | $1,036,341 | 68.5% | ||||
| Earnings Per Share (Basic) | $.55 | $.35 | 57.1% | ||||
| Total Equity | $41,888,831 | $27,916,958 | 50.1% |
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 through its seven branch banking offices in Hopewell, Pennington, Hamilton, Ewing, Princeton and Ringoes, a loan production office in Flemington, and through its fully interactive website at www.hvcbonline.com.