Hilltop Community Bancorp Reports
Strong Earnings Rebound for the Third Quarter
October 16, 2009
SUMMIT, N.J., Hilltop Community Bancorp, Inc. (the Corporation) (OTC Bulletin Board: HTBC), the holding company for Hilltop Community Bank (the Bank), today reported net income of $255,000 for the third quarter of 2009. This was an improvement over the linked second quarter when the Corporation incurred a small loss related to a securities impairment charge and a special FDIC assessment imposed on banks across the country.
After accounting for the preferred stock dividend payable to the U.S. Treasury as part of the Capital Purchase Program, a program that was intended for only well-capitalized community banks, net income available to common shareholders was $191,000. This amounted to $0.07 per share, basic and diluted, for the third quarter of 2009. For the third quarter of 2008, prior to the issuance of the preferred shares, net income available to common shareholders was $266,000, or $0.10 per share, basic and diluted. Per share amounts have been adjusted to retroactively reflect the 5% stock dividend issued in December 2008.
Total assets were $167.5 million at September 30, 2009, compared to total assets of $165.4 million at the end of the third quarter in 2008. Gross loans declined from $119.2 million at September 30, 2008 to $112.6 million at the end of the current year's third quarter. The allowance for loan and lease losses was 1.55% of total loans at September 30, 2009.
In a joint statement, Chairman of the Board Richard D. Wellbrock and President & CEO Mortimer J. O'Shea commented: "Our strategy to allow higher cost deposits to flow out of Hilltop to other institutions is paying off. Hilltop is concentrating on attracting and retaining lower cost deposits. As a result of these initiatives, our net interest margin has dramatically improved, back over the 4% level on a tax equivalent basis for the third quarter. While many borrowers are deleveraging, Hilltop continues to have money to lend and a willingness to meet with prospective borrowers. We will be establishing a new partnership with a residential mortgage lender and our commercial loan officers are currently working on new relationships that will result in loans and business deposit accounts. It now appears that the FDIC will not be imposing another special assessment in the third quarter which is good news for our shareholders and for the banking industry in general."
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, 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
September 30, 2009
09/30/09 09/30/08 12/31/08
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Balance Sheet Data: (in thousands)
Total assets $167,497 $165,378 $180,722
ST investments & fed
funds sold 14,225 5,867 28,244
Investment securities 34,792 32,773 29,132
Gross loans 112,594 119,248 116,711
Allowance for loan losses 1,743 1,574 1,604
----- ----- -----
Net loans 110,851 117,674 115,107
Intangible assets 373 373 373
Deposits 142,865 144,748 160,401
Short-term borrowings 1,497 1,595 2,068
Shareholders' equity 21,624 17,314 16,693
QTD YTD
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09/30/09 09/30/08 09/30/09 09/30/08
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(in thousands, except per share and
Income Statement Data: total shares data)
Interest income $2,107 $2,330 $6,503 $7,052
Interest expense 429 776 2,097 2,683
--- --- ----- -----
Net interest income 1,678 1,554 4,406 4,369
Provision for loan losses 95 30 205 90
Noninterest income 89 67 294 213
Gain on securities
transactions - - 109 31
OTTI charge - - (219) -
Noninterest expense 1,273 1,177 4,002 3,497
Tax expense 144 148 103 366
Net income 255 266 280 660
Preferred stock dividends
and accretion 64 - 173 -
Net income available to
common share. 191 266 107 660
Net Interest Margin (tax-
equivalent basis) 4.07% 3.89% 3.24% 3.61%
Per Common Share Data:
Net income per share- basic $0.07 $0.10 $0.04 $0.26
Net income per share-
diluted 0.07 0.10 0.04 0.26
Tangible book value-
period end 6.66 6.56
Average earning assets $168,059 $163,552 $184,104 $163,925
Average shareholders'
equity 21,076 17,575 20,430 17,698
Common shares outstanding-
period end 2,584,738 2,580,988
