Hilltop Community Bancorp, Inc. Reports Improved Second Quarter And First Half Results

SUMMIT, N.J., July 16 /PRNewswire-FirstCall/ -- Hilltop Community Bancorp, Inc. (the Corporation) (OTCQB: HTBC), the holding company for Hilltop Community Bank (the Bank) today reported net income of $155,000 for the quarter ended June 30, 2010, compared to a loss of $53,000 in the second quarter of 2009. For the first half of 2010, the Corporation reported net income of $328,000, compared to net income of $25,000 for the first six months of the previous year.  As previously reported, during the second quarter the Corporation repaid to the U.S. Treasury the funds which had been received under the Capital Purchase Program (TARP).  The associated $4.2 million redemption of preferred stock resulted in the payment of preferred stock dividends and net accretion of $164,800 in the second quarter versus $54,500 in the first quarter. Thus, net income (loss) available to common shareholders was ($10,000) for the second quarter and $99,000, $0.04 per share, basic and diluted, for the first six months of 2010, an improvement over the first half of 2009 when net income attributable to common shareholders was slightly negative. With the preferred stock redemption, Hilltop will no longer be paying preferred stock dividends and accounting for the related net accretion. The U.S. Treasury no longer holds an equity position in Hilltop.

Total assets were $178.9 million at June 30, 2010, an increase of $12.9 million over the level of assets at the end of 2009. Gross loans totaled $109.6 million, a decrease of $4.1 million when compared to December 31, 2009. The Bank's allowance for loan losses was $2,110,000 at June 30, 2010, 1.93% of total loans. Noninterest expense was lower in the second quarter and first half of 2010 when compared to the corresponding periods in the prior year.

In a joint statement, Chairman of the Board Richard D. Wellbrock and President & CEO Mortimer J. O'Shea commented: "We are pleased that Hilltop continued a string of solidly profitable quarters with the second quarter of 2010. Although loan demand is soft in this recessionary environment, our calling officers continue to spread the word that we have money to lend to qualified borrowers.  In the past few weeks, we have seen some signs that commercial borrowers may be coming back to the market. The repayment of the Capital Purchase Program (TARP) funds was a significant highlight of the second quarter and will permit us to continue to strengthen our balance sheet with retained earnings not diminished by TARP dividend obligations. Although the full impact of the pending financial legislation will take time to play out, Hilltop has always over the years worked diligently to comply with compliance regulations and we fully expect to deal with coming changes in the regulatory burden without too much difficulty."

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.

SOURCE Hilltop Community Bancorp, Inc.