Untitled

Hilltop Community Bancorp, Inc. Reports Second Quarter and First Half Earnings
July 20, 2012

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 $219,000 for the quarter ended June 30, 2012. This equated to $0.08 per common share, basic and diluted, compared to earnings of $0.09 per share, basic and diluted, for the second quarter of 2011, when net income was $243,000.

Net income for the first half of 2012 was $454,000, 36% higher than the first half of 2011 when net income was $333,000. On a per common share basis, the Corporation earned $0.16 for the first six months of this year, basic and diluted, compared to $.12, basic and diluted, for the first six months of the prior year.

Total assets amounted to $179.6 million at June 30, 2012, compared to total assets of $160.0 million at June 30, 2011, and total assets of $165.3 million at December 31, 2011. Gross loans were $107.4 million at June 30, 2012, slightly higher than the level at June 30, 2011 when gross loans totaled $105.7 million. Nonaccrual loans were $1.1 million (1.01% of total loans) at June 30, 2012, a considerable improvement when compared to the level of nonaccrual loans, $2.4 million (2.28% of total loans) at June 30, 2011. After net loan charge offs of $362,200 in the first half, the allowance for loan losses was 1.81% of total loans at June 30, 2012.

The Corporation's net interest margin on a tax equivalent basis was 4.10% in the second quarter of 2012. The Corporation's tangible book value (exclusive of accumulated other comprehensive income) was $6.74 per share at June 30, 2012, an increase of $.26 over the tangible book value at June 30, 2011.

In a joint statement, Chairman of the Board Richard D. Wellbrock and President & CEO Mortimer J. O'Shea commented: "We are pleased that Hilltop continues to post solid numbers. We're seeing balance sheet growth in a low interest rate environment, reflecting higher levels of business deposits, especially attorney escrow accounts. Loan quality, always a standout metric for Hilltop when compared to other community banks, is even better at mid-year. Our calling officers are very active in the market place and we expect to see some loan growth in the coming months."

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
June 30, 2012

Consolidated Balance Sheet
	06/30/12	06/30/11	12/31/11
Assets
Cash and due from banks	$ 2,929,100	$ 2,750,000	$ 2,798,400
Interest-bearing deposits in banks	22,986,500	10,994,300	11,571,400
Federal funds sold and ST investments	995,000	100,000	995,000
Cash and cash equivalents	26,910,600	13,844,300	15,364,800
Investment securities	42,397,900	37,288,800	38,056,500
Loans receivable	107,407,900	105,740,000	108,991,200
Allowance for loan losses	(1,942,200)	(2,110,400)	(2,269,400)
Loans receivable, net	105,465,700	103,629,600	106,721,800
Bank premises and equipment, net	2,619,600	1,947,000	2,673,700
Intangible assets	372,900	372,900	372,900
Other assets	1,876,800	2,891,700	2,141,300
Total assets	$179,643,500	$159,974,300	$165,331,000
Liabilities and Shareholders' Equity
Liabilities
Deposits:
Noninterest-bearing demand	$ 29,880,000	$ 25,606,300	$ 29,929,700
Interest-bearing demand	7,123,200	9,951,400	8,266,000
Money market and savings	80,115,600	63,410,600	63,153,300
Time deposits	37,195,100	38,722,200	35,652,200
Total deposits	154,313,900	137,690,500	137,001,200
Securities sold under agreements to repurchase	3,590,000	1,389,200	3,085,500
Short-term borrowings	-	-	4,000,000
Other liabilities	1,196,200	1,642,800	1,115,400
Total liabilities	159,100,100	140,722,500	145,202,100
Shareholders' Equity
Common stock	19,051,100	19,051,100	19,051,100
Retained earnings	1,065,400	326,400	611,400
Treasury stock	(505,000)	(505,000)	(505,000)
Accumulated other comprehensive income	931,900	379,300	971,400
Total shareholders' equity	20,543,400	19,251,800	20,128,900
Total liabilities and shareholders' equity	$179,643,500	$159,974,300	$165,331,000

Consolidated Income Statement
	QTD		YTD
	06/30/12	06/30/11	06/30/12	06/30/11
Interest Income
Loans, including fees	$ 1,479,500	$ 1,502,800	$ 3,006,400	$ 3,002,400
Securities- taxable	215,200	262,300	438,600	530,000
Securities- tax-exempt	130,600	114,400	253,500	216,600
Other	16,200	9,600	28,200	19,900
Total interest income	1,841,500	1,889,100	3,726,700	3,768,900
Interest Expense
Deposits	204,500	266,700	413,600	554,400
Capital lease obligations and other borrowings	14,700	28,900	30,000	58,200
Total interest expense	219,200	295,600	443,600	612,600

Net interest income	1,622,300	1,593,500	3,283,100	3,156,300

Provision for Loan Losses	20,000	45,000	35,000	150,000
Net interest income after provision for
loan losses	1,602,300	1,548,500	3,248,100	3,006,300

Noninterest income
OTTI charges, net	(23,500)	(13,100)	(65,400)	(41,000)
Service charges and fees	28,800	34,000	54,700	66,900
Other	54,100	89,200	116,100	150,700
Total noninterest income	59,400	110,100	105,400	176,600
Noninterest expense
Salaries and employee benefits	800,100	733,900	1,575,200	1,529,600
Occupancy and equipment	153,600	152,400	319,400	324,000
Data processing related operations	147,600	118,900	323,400	268,900
Advertising	29,200	22,800	58,300	49,000
Professional fees	43,700	44,700	91,900	84,800
FDIC insurance and assessments	20,600	39,800	43,300	97,300
Other operating	172,400	201,900	323,500	391,200
Total noninterest expense	1,367,200	1,314,400	2,735,000	2,744,800

Income before income tax expense	294,500	344,200	618,500	438,100
Income Tax Expense	75,100	101,300	164,500	105,300
Net income	$ 219,400	$ 242,900	$ 454,000	$ 332,800

Net Interest Margin (tax-equivalent basis)	4.10%	4.31%	4.28%	4.34%

Per Common Share Data:
Net income per common share- basic	$ 0.08	$ 0.09	$ 0.16	$ 0.12
Net income per common share- diluted	$ 0.08	$ 0.09	$ 0.16	$ 0.12
Tangible book value- period end			$ 6.74	$ 6.48

Return on Average Assets	0.51%	0.61%	0.54%	0.43%
Return on Average Equity	4.24%	5.11%	4.41%	3.56%

Asset Quality Data:
Accruing loans past due 30 to 89 days			$ -	$ -
Accruing loans past due 90 days or more			$ -	$ -
Nonaccrual loans			$ 1,085,200	$ 2,407,200
Other real estate owned			$ -	$ -
Net charge-offs (recoveries)	$ 362,200	$ (1,800)	$ 362,200	$ 50,400

Miscellaneous:
Average assets	$172,977,000	$159,780,200	$167,533,000	$157,710,100
Average earning assets	$165,914,000	$153,695,800	$160,549,400	$151,787,900
Average deposits	$147,581,100	$137,513,900	$141,845,600	$135,547,000
Average shareholders' equity	$ 20,800,200	$ 19,057,000	$ 20,705,400	$ 18,867,400
Common shares outstanding- period end			2,856,399