SUMMIT, N.J., Hilltop Community Bancorp, Inc. (the Corporation) (OTCQB: HTBC), the holding company for Hilltop Community Bank (the Bank or Hilltop), today reported net income of $90,000 for the quarter ended March 31, 2011. This compares to net income of $173,000 for the first quarter of 2010. Net income per share, basic and diluted, was $0.03 in the first quarter of 2011 compared to $0.04 in the first quarter of 2010. Income available to common shareholders in 2010 is net of $64,000 of preferred stock dividends that emanated from the Capital Purchase Program. Hilltop redeemed those preferred shares and returned $4.2 million to the United States Treasury in April 2010. Prior year per share amounts have been adjusted for the 5% common stock dividend distributed in December 2010.
Total assets amounted to $158.1 million at March 31, 2011 compared to total assets of $174.2 million at the end of the first quarter of 2010. Gross loans also declined year to year, from $112.3 million at March 31, 2010 to $107.0 million at March 31, 2011. In particular, consumer loan outstandings were reduced as home owners refinanced their first mortgages in the very low rate environment that has prevailed over the past year and paid off home equity loan balances as part of the first mortgage transaction. Loans past due thirty days or more totaled $2.6 million, or 2.4% of total loans, at March 31, 2011. This was an improvement over December 31, 2010 when loans past due thirty days or more totaled $2.7 million. The allowance for loan losses was $2,063,000 at March 31, 2011, 1.93% of total loans.
Hilltop's net interest margin on a tax equivalent basis was 4.37% in the first quarter of 2011, an improvement over the net interest margin of 4.20% in the first quarter of the previous year. The Corporation's tangible book value was $6.45 per share at March 31, 2011, an increase of $.21 over the tangible book value at March 31, 2010. The Corporation's capital ratios continue to be well in excess of the minimums required by the regulators.
In a joint statement, Chairman of the Board Richard D. Wellbrock and President & CEO Mortimer J. O'Shea commented: "We are pleased that Hilltop is reporting a profit for the first quarter despite the continuing impact of the prolonged recession. Although the recession has officially ended, high unemployment, vacant storefronts, low consumer confidence and a feeble housing market tell another story. We continue to deliver the message that Hilltop has money to lend to qualified borrowers, but entrepreneurs are not yet showing the pre-recession confidence that would result in their investing in new projects and approaching banks for financing. Our lenders and branch managers, however, are persistently searching out opportunities and are having some success. Competition among community banks for business loans and deposits is intense but we know that our people are up to the challenge."
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.