2014

Hilltop Community Bancorp, Inc. Reports Improved Earnings

SUMMIT, N.J., Oct. 19, 2012 /PRNewswire/ -- Hilltop Community Bancorp, Inc. (the Corporation) (OTCQB: HTBC), the holding company for Hilltop Community Bank (the Bank or Hilltop), today reported net income of $277,000 ($.10 per common share, basic and diluted) for the quarter ended September 30, 2012. This compares with net income of $270,000 ($.09 per common share, basic and diluted) for the third quarter of 2011.

For the first nine months of 2012, the Corporation earned $731,000 ($.26 per common share, basic and diluted), a 21.4% increase over net income of $602,000 ($.21 per common share, basic and diluted) for the first nine months of 2011.

Net income for the third quarter and the first nine months of 2012 benefited from a gain of $165,000 on the sale of a security in the Bank's available for sale portfolio.  A number of community banks have taken advantage of opportunities to realize gains in their securities portfolios over the past year.   On a year to date basis, Hilltop's provision for loan losses totaled $165,000 compared to $225,000 for the first nine months of the prior year. The Bank's allowance for loan losses was 1.64% of total loans at September 30, 2012, which compares favorably with Hilltop's peer group of community banks.

Total assets amounted to $170.5 million at September 30, 2012, an increase of $5.2 million over the level of assets at December 31, 2011. Gross loans increased by $651,000 at September 30, 2012 over the level of loans at the end of 2011.

In a joint statement, Chairman of the Board Richard D. Wellbrock and President & CEO Mortimer J. O'Shea commented: "Several positives are evident in our third quarter results. Gross loans increased compared to the third quarter of 2011 as well as with the year-end numbers. Although loan growth was minimal, we are seeing a reversal of the decline in loans which was induced by the reluctance of individuals and businesses to increase borrowings during uncertain economic periods.  We currently have a solid pipeline of commercial loans that will close in the coming weeks and months.  Hilltop's loan quality metrics have been historically strong in comparison to our peers and we are working our way through the resolution of the few problem loans that we have in our portfolio. This is evidenced by a reduction in nonaccrual loans and by the modest amount of charge-offs taken. Bank margins, generally, are being squeezed in the current low interest rate environment, but Hilltop's net interest margin remained at a level above 4% for the third quarter, higher than most of our peers. Deposits are up, despite one of the lowest cost of funds in the State. And, our tangible book value per common share was $6.83 at September 30, 2012, up from $6.57 at the end of the prior year's third quarter."

Hilltop Community Bancorp, Inc. is the parent holding company for Hilltop Community Bank. Hilltop Community Bank is a New Jersey state-chartered commercial bank which commenced operations in February 2000. The Bank operates as a locally headquartered, community bank engaged in a general commercial banking business. The Bank has offices in Summit, Berkeley Heights and Madison, and administrative offices in New Providence. The service area includes surrounding communities in Union, Essex, Morris and Somerset Counties.

The foregoing contains forward-looking statements within the meaning of the private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about new and existing programs and products, relationships, opportunities, technology and market conditions. Such forward-looking statements involve certain risks and uncertainties. These include, but are not limited to, the direction of movement in interest rates, the possibility of disruption in credit markets, successful implementation and integration of acquisitions, the effects of economic conditions and the impact of legal barriers and structures. Actual results may differ from such forward-looking statements. The Bank assumes no obligation for updating any such forward-looking statements at any time.

 

HILLTOP COMMUNITY BANCORP, INC.

Financial Information

September 30, 2012










Consolidated Balance Sheet











09/30/12


09/30/11


12/31/11



Assets









  Cash and due from banks


$   3,219,700


$   2,471,900


$   2,798,400



  Interest-bearing deposits in banks


9,343,400


2,831,900


11,571,400



  Federal funds sold


995,000


993,100


995,000



    Cash and cash equivalents


13,558,100


6,296,900


15,364,800



  Investment securities


44,386,100


37,455,800


38,056,500



  Loans receivable


109,642,400


109,208,600


108,991,200



  Allowance for loan losses


(1,793,100)


(2,185,400)


(2,269,400)



    Loans receivable, net


107,849,300


107,023,200


106,721,800



  Bank premises and equipment, net


2,573,600


2,714,800


2,673,700



  Intangible assets


372,900


372,900


372,900



  Other assets


1,783,600


2,195,400


2,141,300



            Total assets


$170,523,600


$156,059,000


$165,331,000



Liabilities and Shareholders' Equity









  Liabilities









  Deposits:









    Noninterest-bearing demand


$ 26,532,400


$ 25,358,200


$ 29,929,700



    Interest-bearing demand


7,210,200


6,921,700


8,266,000



    Money market and savings


74,576,900


58,355,800


63,153,300



    Time deposits


35,305,500


36,882,400


35,652,200



      Total deposits


143,625,000


127,518,100


137,001,200



  Securities sold under agreements to repurchase


4,477,300


3,221,400


3,085,500



  Short-term borrowings


-


4,000,000


4,000,000



  Other liabilities


1,460,200


1,421,300


1,115,400



      Total liabilities


149,562,500


136,160,800


145,202,100



  Shareholders' Equity









  Common stock


19,051,100


19,051,100


19,051,100



  Retained earnings


1,342,600


596,000


611,400



  Treasury stock


(505,000)


(505,000)


(505,000)



  Accumulated other comprehensive income


1,072,400


756,100


971,400



      Total shareholders' equity


20,961,100


19,898,200


20,128,900



      Total liabilities and shareholders' equity


$170,523,600


$156,059,000


$165,331,000












Consolidated Income Statement











QTD


YTD



09/30/12


09/30/11


09/30/12


09/30/11

  Interest Income









    Loans, including fees


$   1,491,200


$   1,541,900


$   4,497,600


$   4,544,300

    Securities- taxable


195,800


259,900


634,400


789,900

    Securities- tax-exempt


143,800


116,800


397,300


333,400

    Other


13,900


5,600


42,100


25,500

      Total interest income


1,844,700


1,924,200


5,571,400


5,693,100

  Interest Expense









    Deposits


181,100


228,600


594,700


783,000

    Capital lease obligations and other borrowings


14,800


16,000


44,800


74,200

      Total interest expense       


195,900


244,600


639,500


857,200










      Net interest income


1,648,800


1,679,600


4,931,900


4,835,900










  Provision for Loan Losses


130,000


75,000


165,000


225,000

      Net interest income after provision for









        loan losses


1,518,800


1,604,600


4,766,900


4,610,900










  Noninterest Income









    OTTI charges, net


(22,200)


(35,800)


(87,600)


(76,800)

    Service charges and fees


28,800


29,400


83,500


96,300

    Gain on sale of security


165,200


-


165,200


-

    Other


40,700


68,800


156,800


219,500

      Total noninterest income


212,500


62,400


317,900


239,000

  Noninterest Expense 









    Salaries and employee benefits


772,200


770,700


2,347,400


2,300,300

    Occupancy and equipment


155,500


155,400


474,900


479,400

    Data processing related operations


147,200


156,900


470,600


425,800

    Advertising


26,100


22,700


84,400


71,700

    Professional fees


44,300


40,700


136,200


125,500

    FDIC insurance and assessments


24,800


2,900


68,100


100,200

    Other operating


176,500


130,700


500,000


521,900

      Total noninterest expense


1,346,600


1,280,000


4,081,600


4,024,800










      Income before income tax expense


384,700


387,000


1,003,200


825,100

  Income Tax Expense


107,600


117,400


272,100


222,700

      Net income


$      277,100


$      269,600


$      731,100


$      602,400










Net Interest Margin (tax-equivalent basis)


4.11%


4.63%


4.22%


4.44%










Per Common Share Data:









  Net income per share- basic


$           0.10


$           0.09


$           0.26


$           0.21

  Net income per share- diluted


$           0.10


$           0.09


$           0.26


$           0.21

  Tangible book value- period end






$           6.83


$           6.57










Return on Average Assets


0.63%


0.69%


0.58%


0.51%

Return on Average Equity


5.24%


5.48%


4.69%


4.22%










Asset Quality Data:









  Accruing loans past due 30 to 89 days






$     860,200


$       12,300

  Accruing loans past due 90 days or more






$                 -


$                 -

  Nonaccrual loans






$     803,900


$  2,007,100

  Other real estate owned






$                 -


$                 -

  Net charge-offs


$      279,100


$                -


$     641,300


$       50,400










Miscellaneous:









  Average assets


$173,805,200


$155,733,100


$169,639,000


$157,043,900

  Average earning assets


$166,897,000


$148,961,000


$162,680,700


$150,835,200

  Average deposits


$148,017,500


$130,916,500


$143,917,900


$133,986,600

  Average shareholders' equity


$ 21,045,000


$ 19,518,600


$ 20,819,400


$ 19,086,800

  Common shares outstanding- period end






2,856,399


2,856,399

 

SOURCE Hilltop Community Bancorp, Inc.




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