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 $127,000 ($0.06 per share, basic, and $0.05 per share, diluted) for the quarter ended September 30, 2006. This was a 67% increase over the third quarter of 2005 when net income was $76,000 ($0.04 per share, basic and diluted).
For the nine months ended September 30, 2006, net income was $342,000 ($0.16 per share, basic and diluted) compared to net income of $105,000 ($0.06 per share, basic and diluted) for the first nine months of 2005. This 226% increase is attributable to an 11% increase in net interest income and a slight reduction in noninterest expense.
Average earning assets in the third quarter amounted to $153 million, an increase of 3.6% over the third quarter of 2005. Gross loans were $108 million at September 30, 2006, an increase of 27% over the prior year’s third quarter end. Average shareholders’ equity was $17.0 million in the third quarter of 2006, an increase of $4.7 million over the prior year’s third quarter, primarily reflecting the conversion of warrants to common stock that was concluded on May 31, 2006.
In a joint statement, Chairman of the Board Richard D. Wellbrock and President & CEO Mortimer J. O’Shea commented: “We are pleased to report the continued growth of our loan portfolio which brought Hilltop’s loan to deposit ratio to 80% for the first time. Competition for deposits and loans remains keen in the communities that comprise our service area, but our calling officers are continuing their efforts to attract new customers to our Bank. The high rates currently being paid on deposit accounts will impact margins in the near term but we are hopeful that the pause in interest rate increases will restore more normal spreads to our business.”
Hilltop Community Bancorp, Inc. is the parent bank holding company for Hilltop Community Bank. The Bank is a New Jersey state-chartered commercial bank which commenced operations in February 2000. The Bank operates as a locally headquartered, community oriented 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.