Hilltop
Community Bancorp Reports Significant Earnings Increase for Third Quarter
October 18, 2007
SUMMIT, N.J., Hilltop Community Bancorp, Inc. (the Corporation) (OTC Bulletin Board: HTBC.OB), the holding company for Hilltop Community Bank (the Bank), today reported net income of $175,000 ($0.07 per share, basic and diluted) for the quarter ended September 30, 2007. This is a 37.8% increase over net income of $127,000 ($0.06 per share, basic, and $0.05 per share, diluted) for the third quarter of 2006. Per share amounts have been adjusted to retroactively reflect the 5% stock dividend issued in December 2006.
For the nine months ended September 30, 2007, net income was $438,000 ($0.18 per share, basic and diluted), a 28.1% improvement over the first nine months of 2006 when net income was $342,000 ($0.16 per share, basic and diluted).
Net income for the third quarter, and for
the nine months period, was enhanced by a lower loan loss provision in the
Bank than had been typical. In the opinion of management, the loan loss
reserve of 1.38% as a percentage of total loans at September 30, 2007 is
more than adequate in light of the Bank's experience and, in fact, remains
higher than the Bank's peer group.
Continued
profitability has increased the tangible book value of HTBC common stock
to $7.29.
Chairman of the Board Richard D. Wellbrock
and President and CEO Mortimer J. O'Shea commented in a joint statement:
"The Corporation is showing excellent earnings progress while a
number of larger financial institutions are reporting lower net income as
a result of the sub-prime residential mortgage debacle. Hilltop has not
been impacted by those issues because we have never participated in the
sub-prime market. Hilltop's new initiatives, conventional residential
mortgage lending and remote deposit capture technology, are working well
for us and our loan portfolio is in excellent shape. Management has been
successful in increasing the Bank's net interest margin during the last
twelve months when a majority of peer banks have reported margin declines.
Our branch managers and lenders are actively calling on prospective
business and professional clients and we've established several
significant new deposit relationships in recent weeks. Hilltop continues
to actively pursue lending opportunities despite warnings in the media
about a tightening of credit availability. In addition, we will shortly
introduce a retail investment program that will be offered through a third
party provider."
Hilltop Community Bancorp, Inc. is the
parent bank 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 Corporation assumes no obligation for updating any such forward-looking statements at any time.
