Hilltop Community Bancorp, Inc. Reports Fourth Quarter Earnings and Record Full Year Results

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Jan 19, 2013, 08:53 ET

SUMMIT, N.J., Jan. 18, 2013 /PRNewswire/ -- Hilltop Community Bancorp, inc. (Hilltop) (OTCQB: HTBC), the holding company for Hilltop Community Bank (the Bank) today reported record net income of $956,000 for the year ended December 31, 2012. This was 5.8% higher than net income of $904,000 for the previous year. Net income was $0.33 per common share, basic and diluted, in 2012, compared to $0.32 per common share, basic and diluted, in 2011. Net income for the fourth quarter of 2012 was $225,000 ($0.08 per common share, basic and diluted), compared to net income of $301,000 ($0.11 per common share, basic and diluted) for the fourth quarter of 2011. During the fourth quarter of 2012, Hilltop paid a special cash dividend of $0.11 per share, which was a 10% increase over the dividend of $0.10 per share which was paid in December 2011.

Total assets were $177.0 million at December 31, 2012, approximately $11.7 million higher than total assets at the end of the prior year. Gross loans were down slightly at December 31, 2012, compared to the level of loans at December 31, 2011. The allowance for loan losses was $1,849,000, or 1.71% of total loans, at December 31, 2012. Shareholders' equity increased to $20.9 million at December 31, 2012, equating to tangible book value of $6.80 per common share.

In a joint statement, Chairman of the Board Richard D. Wellbrock and President & CEO Mortimer J. O'Shea commented: "Despite pressure on the net interest margin, we are pleased that we recorded our best year ever in 2012. We continued to effectively manage our cost of funds and the Bank consistently ranks as one of the best performers in this category among community banks in New Jersey. The strength of our loan portfolio is evidenced by the modest level of past due loans. The Bank's investment portfolio reflects a yield that is higher than most of our community bank peers and Hilltop' s capital ratios, including a leverage ratio in excess of 11%, are well above current and proposed regulatory definitions of 'well capitalized'. Our calling officers are seeking out new business opportunities every day and Hilltop's focus on relationship banking and personal service continues to ensure that our customers remain loyal to the Bank."

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 management's confidence and strategies and management's expectations 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, 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 and such forward-looking statements at any time.

HILLTOP COMMUNITY BANCORP, INC.
Financial Information
December 31, 2012


Consolidated Balance Sheet	12/31/12	12/31/11
Assets
Cash and due from banks	$ 2,437,600	$ 2,798,400
Interest-bearing deposits in banks	20,277,400	11,571,400
Federal funds sold	100,000	995,000
Cash and cash equivalents	22,815,000	15,364,800
Investment securities	43,193,900	38,056,500
Loans receivable	108,305,400	108,991,200
Allowance for loan losses	(1,849,100)	(2,269,400)
Loans receivable, net	106,456,300	106,721,800
Bank premises and equipment, net	2,526,900	2,673,700
Intangible assets	372,900	372,900
Other assets	1,632,300	2,141,300
Total assets	$176,997,300	$165,331,000
Liabilities and Shareholders' Equity
Liabilities
Deposits:
Noninterest-bearing demand	$ 30,228,900	$ 29,929,700
Interest-bearing demand	8,619,100	8,266,000
Money market and savings	77,206,700	63,153,300
Time deposits	34,286,900	35,652,200
Total deposits	150,341,600	137,001,200
Securities sold under agreements to repurchase	4,273,800	3,085,500
Short-term borrowings	-	4,000,000
Other liabilities	1,471,600	1,115,400
Total liabilities	156,087,000	145,202,100
Shareholders' Equity
Common stock	19,051,100	19,051,100
Retained earnings	1,253,600	611,400
Treasury stock	(505,000)	(505,000)
Accumulated other comprehensive income	1,110,600	971,400
Total shareholders' equity	20,910,300	20,128,900
Total liabilities and shareholders' equity	$176,997,300	$165,331,000

Consolidated Income Statement
	QTD		YTD
	12/31/12	12/31/11	12/31/12	12/31/11
Interest Income
Loans, including fees	$ 1,459,900	$ 1,564,400	$ 5,957,500	$ 6,108,700
Securities- taxable	158,100	239,700	792,500	1,029,600
Securities- tax-exempt	151,500	119,100	548,800	452,500
Other	13,700	7,900	55,800	33,400
Total interest income	1,783,200	1,931,100	7,354,600	7,624,200
Interest Expense
Deposits	161,100	222,400	755,800	1,005,400
Capital lease obligations and other borrowings	15,000	18,000	59,800	92,200
Total interest expense	176,100	240,400	815,600	1,097,600

Net interest income	1,607,100	1,690,700	6,539,000	6,526,600

Provision for Loan Losses	55,000	84,000	220,000	309,000
Net interest income after provision for
loan losses	1,552,100	1,606,700	6,319,000	6,217,600

Noninterest income
OTTI charges, net	(42,200)	(52,800)	(129,800)	(129,600)
Service charges and fees	29,600	28,500	113,100	124,800
Gain on sale of security	-	-	165,200	-
Other	36,400	49,200	193,200	268,700
Total noninterest income	23,800	24,900	341,700	263,900
Noninterest expense
Salaries and employee benefits	752,800	715,400	3,100,200	3,015,700
Occupancy and equipment	160,700	159,300	635,600	638,700
Data processing related operations	145,700	122,700	616,300	548,500
Advertising	25,200	26,200	109,600	97,900
Professional fees	28,300	40,400	164,500	165,900
FDIC insurance and assessments	29,600	22,500	97,700	122,700
Other operating	140,900	108,100	640,900	630,000
Total noninterest expense	1,283,200	1,194,600	5,364,800	5,219,400

Income before income tax expense	292,700	437,000	1,295,900	1,262,100
Income Tax Expense	67,500	135,900	339,600	358,600
Net income	$ 225,200	$ 301,100	$ 956,300	$ 903,500

Net Interest Margin (tax-equivalent basis)	4.00%	4.56%	4.17%	4.47%

Per Common Share Data:
Net income per share- basic	$ 0.08	$ 0.11	$ 0.33	$ 0.32
Net income per share- diluted	$ 0.08	$ 0.11	$ 0.33	$ 0.32
Tangible book value- period end			$ 6.80	$ 6.58

Return on Average Assets	0.52%	0.75%	0.56%	0.57%
Return on Average Equity	4.26%	6.00%	4.63%	4.68%

Asset Quality Data:
Accruing loans past due 30 to 89 days			$ 140,100	$ -
Accruing loans past due 90 days or more			$ -	$ -
Nonaccrual loans			$ 797,300	$ 1,756,200
Other real estate owned			$ -	$ -
Net charge-offs (recoveries)	$ (1,000)	$ -	$ 640,300	$ 50,400

Miscellaneous:
Average assets	$173,665,200	$158,977,300	$170,651,000	$157,531,200
Average gross loans	$107,561,900	$108,485,500	$107,946,300	$107,162,200
Average earning assets	$166,934,800	$152,284,000	$163,750,100	$151,200,400
Average deposits	$146,437,900	$130,569,200	$144,551,300	$133,125,200
Average shareholders' equity	$ 21,031,600	$ 19,924,900	$ 20,648,200	$ 19,298,100
Common shares outstanding			2,856,399	2,856,399