SUMMIT, N.J., Hilltop Community Bancorp, Inc. (the Corporation) (OTC Bulletin Board: HTBC.OB and HTBCW.OB), the holding company for Hilltop Community Bank (the Bank) today reported results of operations for the third quarter of 2005. Net income after taxes amounted to $76,000 ($0.05 per share, basic, and $0.04 per share, diluted) for the quarter ended September 30, 2005, compared with the prior year’s third quarter net income of $456,000 ($0.28 per share, basic, and $0.25 per share, diluted). The Corporation’s net income in the third quarter of 2004 included a tax benefit of $385,000 related to the partial recovery of a valuation allowance on the Bank’s deferred tax asset. Net income before taxes improved from $71,000 in the third quarter of 2004 to $126,000 in the third quarter of 2005, a 77.5% increase. Per share amounts have been adjusted to retroactively reflect the 5% stock dividend issued in 2004.

Net income for the nine months ended September 30, 2005 was $105,000 ($0.06 per share, basic and diluted), compared to net income of $908,000 ($0.56 per share basic, and $0.50 per share, diluted) for the first nine months of 2004. The nine month tax benefit totaled $585,000 in 2004. During the same comparative periods, net income before taxes was $175,000 in 2005 and $323,000 in 2004. The increased personnel and occupancy costs associated with the Madison branch and our administrative offices in New Providence, both of which opened a year ago, are primarily responsible for the reduction in pretax income in 2005.

Total assets were $158 million at September 30, 2005, a 21.8 % increase over the level of assets at the end of 2004. Gross loans reached a record high of $85 million at September 30, 2005, a 27% increase over the year end 2004 figure. For the twelve months ended September 30, 2005, gross loans were up 39.5%.

In a joint statement, Chairman of the Board Richard D. Wellbrock and President and CEO Mortimer J. O’Shea commented: “ There were a number of positive developments in the third quarter, including the continued growth of deposits and assets at strong levels and the impressive growth in the loan portfolio. The Madison branch office is on budget with respect to deposit growth and we are also attracting new business at our Summit and Berkeley Heights branches.”

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.