Hilltop Community Bancorp, Inc. Reports Increased Second Quarter Results

SUMMIT, N.J., July 22, 2013 /PRNewswire/ -- Hilltop Community Bancorp, Inc. (the Corporation or Hilltop) (OTCQB: HTBC), the holding company for Hilltop Community Bank (the Bank) today reported net income of $288,000 ($0.10 per common share, basic and diluted) for the quarter ended June 30, 2013. This was an increase of 32% when compared to net income of $219,000 ($0.08 per share, basic and diluted) for the second quarter of 2012.

Net income for the first half of 2013 was $471,000 ($0.16 per common share, basic and diluted) compared to net income of $454,000 ($0.16 per share, basic and diluted) for the first half of the prior year.  Both the second quarter and first half results in 2013 were positively impacted by the sale of a bond in the Bank's investment portfolio that yielded a gain of $136,000.

Total assets amounted to $174.4 million at June 30, 2013, compared to total assets of $179.6 million at June 30, 2012, and total assets of $177.0 million at December 31, 2012. Gross loans were $106.0 million at June 30, 2013, down slightly from gross loan volume of $107.4 million at the mid point of last year.  The allowance for loan losses was 1.73% of total loans at June 30, 2013. The net interest margin for the second quarter was 3.91%, a reduction of 19 basis points from the prior year's second quarter but generally higher than other New Jersey based community banks.  The reduction in the margin was primarily caused by a lower yield on loans. Hilltop's net interest margin for the first six months of 2013 was 4.02%.

The proposed merger with Haven Bancorp, Inc., which was announced on June 5, 2013, is proceeding on schedule. Haven has submitted the required application to the regulators and Hilltop is working on the proxy statement which will be required as part of the shareholder approval process. A fourth quarter closing is anticipated. Under the proposed plan, shareholders of Hilltop Community Bancorp, Inc.  will receive $9.42, in cash, for each share of the Corporation's stock that they own.

In a joint statement, Chairman of the Board Richard D. Wellbrock and President & CEO Mortimer J. O'Shea commented: "We are certainly pleased with our second quarter results. Hilltop continues to demonstrate a relatively low cost of funds that will help us stem the tide of lower rates on the asset side of the balance sheet. Our allowance for loan losses is very solid at 1.73% and we anticipate that we will be able to reduce our monthly provisioning for loan losses for the remainder of the year. It is gratifying that we have been able to negotiate a sale of the Corporation to Haven Bancorp, Inc.   Most of our long time shareholders will realize a profit on their investment in Hilltop and our customers will become clients of a long established New Jersey financial institution."

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 Corporation assumes no obligation for updating any such forward-looking statements at any time.  

 

HILLTOP COMMUNITY BANCORP, INC.

Financial Information

June 30, 2013










Consolidated Balance Sheet











06/30/13


06/30/12


12/31/12



Assets









  Cash and due from banks


$   2,679,200


$   2,929,100


$   2,437,600



  Interest-bearing deposits in banks


20,661,600


22,986,500


20,277,400



  Federal funds sold


100,000


995,000


100,000



    Cash and cash equivalents


23,440,800


26,910,600


22,815,000



  Investment securities


38,146,200


42,397,900


43,193,900



  Loans receivable


106,023,300


107,407,900


108,305,400



  Allowance for loan losses


(1,831,800)


(1,942,200)


(1,849,100)



    Loans receivable, net


104,191,500


105,465,700


106,456,300



  Bank premises and equipment, net


2,452,500


2,619,600


2,526,900



  Intangible assets


372,900


372,900


372,900



  Bank-owned life insurance


4,041,200


-


-



  Other assets


1,793,700


1,876,800


1,632,300



            Total assets


$174,438,800


$179,643,500


$176,997,300



      Liabilities and Shareholders' Equity









  Liabilities









  Deposits:









    Noninterest-bearing demand


$ 27,308,600


$ 29,880,000


$ 30,228,900



    Interest-bearing demand


8,881,500


7,123,200


8,619,100



    Money market and savings


80,039,200


80,115,600


77,206,700



    Time deposits


31,721,200


37,195,100


34,286,900



      Total deposits


147,950,500


154,313,900


150,341,600



  Securities sold under agreements to repurchase


4,356,500


3,590,000


4,273,700



  Other liabilities


1,379,000


1,196,200


1,471,700



     Total liabilities


153,686,000


159,100,100


156,087,000



  Shareholders' Equity









  Common stock


19,051,100


19,051,100


19,051,100



  Retained earnings


1,724,800


1,065,400


1,253,600



  Treasury stock


(505,000)


(505,000)


(505,000)



  Accumulated other comprehensive income


481,900


931,900


1,110,600



     Total shareholders' equity


20,752,800


20,543,400


20,910,300



      Total liabilities and shareholders' equity


$174,438,800


$179,643,500


$176,997,300












Consolidated Income Statement











QTD


YTD



06/30/13


06/30/12


06/30/13


06/30/12

  Interest Income









    Loans, including fees


$   1,360,400


$   1,479,500


$   2,753,400


$   3,006,400

    Securities- taxable


125,800


215,200


266,200


438,600

    Securities- tax-exempt


161,800


130,600


318,300


253,500

    Other


13,800


16,200


24,700


28,200

     Total interest income


1,661,800


1,841,500


3,362,600


3,726,700

 Interest Expense









    Deposits


134,500


204,500


264,900


413,600

    Capital lease obligations and other borrowings


14,200


14,700


28,800


30,000

      Total interest expense       


148,700


219,200


293,700


443,600










      Net interest income


1,513,100


1,622,300


3,068,900


3,283,100










 Provision for Loan Losses


45,000


20,000


90,000


35,000

      Net interest income after provision for









        loan losses


1,468,100


1,602,300


2,978,900


3,248,100










  Noninterest income









    Gain on sale of investment security


135,800


-


135,800


-

    OTTI charges, net


-


(23,500)


(11,900)


(65,400)

    Service charges and fees


29,100


28,800


56,100


54,700

    BOLI income


31,600


-


41,200


-

    Other


38,800


54,100


71,600


116,100

     Total noninterest income


235,300


59,400


292,800


105,400

 Noninterest expense 









    Salaries and employee benefits


756,500


800,100


1,536,700


1,575,200

    Occupancy and equipment


146,800


153,600


307,400


319,400

    Data processing related operations


146,300


147,600


305,600


323,400

    Advertising


10,300


29,200


28,100


58,300

    Professional fees


50,700


43,700


96,200


91,900

    FDIC insurance and assessments


26,800


20,600


51,100


43,300

    Other operating


192,100


172,400


359,500


323,500

      Total noninterest expense


1,329,500


1,367,200


2,684,600


2,735,000










     Income before income tax expense


373,900


294,500


587,100


618,500

 Income Tax Expense


85,500


75,100


115,900


164,500

      Net income


$      288,400


$      219,400


$      471,200


$      454,000










Net Interest Margin (tax-equivalent basis)


3.91%


4.10%


4.02%


4.28%










Per Common Share Data:









  Net income per common share- basic


$           0.10


$           0.08


$           0.16


$           0.16

  Net income per common share- diluted


$           0.10


$           0.08


$           0.16


$           0.16

  Tangible book value- period end






$           6.97


$           6.74










Return on Average Assets


0.66%


0.51%


0.55%


0.54%

Return on Average Equity


5.48%


4.29%


4.52%


4.47%










Asset Quality Data:









  Accruing loans past due 30 to 89 days






$     193,500


$                -

  Accruing loans past due 90 days or more






$                 -


$                -

  Nonaccrual loans






$  1,211,200


$ 1,085,200

  Other real estate owned






$                 -


$                -

  Net charge-offs (recoveries)


$        (2,900)


$      362,200


$       92,400


$    362,200










Miscellaneous:









  Average assets


$174,622,300


$172,977,000


$171,962,400


$167,533,000

  Average earning assets


$163,708,600


$165,914,000


$162,359,100


$160,549,400

  Average deposits


$148,542,500


$147,581,100


$145,614,800


$141,845,600

  Average shareholders' equity


$  21,111,600


$  20,500,200


$  21,032,600


$  20,405,400

  Common shares outstanding- period end






2,856,399


2,856,399

 

SOURCE Hilltop Community Bancorp, Inc.




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