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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 $277,000 ($.10 per common share, basic and diluted) for the quarter ended September 30, 2012. This compares with net income of $270,000 ($.09 per common share, basic and diluted) for the third quarter of 2011.

For the first nine months of 2012, the Corporation earned $731,000 ($.26 per common share, basic and diluted), a 21.4% increase over net income of $602,000 ($.21 per common share, basic and diluted) for the first nine months of 2011.

Net income for the third quarter and the first nine months of 2012 benefited from a gain of $165,000 on the sale of a security in the Bank's available for sale portfolio. A number of community banks have taken advantage of opportunities to realize gains in their securities portfolios over the past year. On a year to date basis, Hilltop's provision for loan losses totaled $165,000 compared to $225,000 for the first nine months of the prior year. The Bank's allowance for loan losses was 1.64% of total loans at September 30, 2012, which compares favorably with Hilltop's peer group of community banks.

Total assets amounted to $170.5 million at September 30, 2012, an increase of $5.2 million over the level of assets at December 31, 2011. Gross loans increased by $651,000 at September 30, 2012 over the level of loans at the end of 2011.

In a joint statement, Chairman of the Board Richard D. Wellbrock and President & CEO Mortimer J. O'Shea commented: "Several positives are evident in our third quarter results. Gross loans increased compared to the third quarter of 2011 as well as with the year-end numbers. Although loan growth was minimal, we are seeing a reversal of the decline in loans which was induced by the reluctance of individuals and businesses to increase borrowings during uncertain economic periods. We currently have a solid pipeline of commercial loans that will close in the coming weeks and months. Hilltop's loan quality metrics have been historically strong in comparison to our peers and we are working our way through the resolution of the few problem loans that we have in our portfolio. This is evidenced by a reduction in nonaccrual loans and by the modest amount of charge-offs taken. Bank margins, generally, are being squeezed in the current low interest rate environment, but Hilltop's net interest margin remained at a level above 4% for the third quarter, higher than most of our peers. Deposits are up, despite one of the lowest cost of funds in the State. And, our tangible book value per common share was $6.83 at September 30, 2012, up from $6.57 at the end of the prior year's third quarter."

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.