Hilltop
Community Bancorp Announces Third Quarter Earnings and New Branch Opening
October
22, 2004
SUMMIT, N.J., Hilltop
Community Bancorp, Inc. (OTC Bulletin Board: HTBC), the holding company of
Hilltop Community Bank (the Bank) today reported net income of $465,000
($0.29 per share, basic, and $0.26 per share, diluted) for the quarter
ended September 30, 2004. As a result of the formation of the holding
company, Hilltop Community Bancorp, Inc., on October 1, 2004, the Bank's
previous ticker symbol changed and is now listed as HTBC and the Bank's
warrants are now listed at HTBCW. All future earnings releases will be
issued in the name of Hilltop Community Bancorp, Inc.
The current year's third quarter net income
includes a $385,000 tax benefit related to the partial recovery of a
valuation allowance on the Bank's deferred tax asset. Additional tax
benefits are expected to be realized in the future. Net income for the
third quarter of the previous year, 2003, was $81,000 ($0.05 per share,
basic and diluted.)
Net income for the nine months ended
September 30, 2004, was $908,000 ($0.58 per share, basic, and $0.52 per
share, diluted) compared to net income of $246,000 ($0.20 per share, basic
and diluted) for the first nine months of 2003. Tax benefits accounted for
$585,000 of this year's net income. Per share amounts have been adjusted
to retroactively reflect the 5% stock dividend issued in 2003.
Total assets amounted to $135.9 million at
September 30, 2004, up approximately $7.3 million for the quarter and
ahead of the prior year's third quarter end by $18.2 million, or 15%.
Gross loans increased $3.8 million in the quarter, reflecting the efforts
of our lending team to grow this important asset category. There were no
delinquent loans in the portfolio at the end of the quarter, and the loan
loss reserve amounted to 1.35% of total loans.
Chairman of the Board Richard D. Wellbrock
commented: "We are pleased that Hilltop opened its third branch
office, in Madison, during the third quarter. Madison is just ten minutes
away from our Summit headquarters, but offers us the opportunity to expand
our business in the desirable Morris County market."
"The third quarter was very busy for
everyone at Hilltop," stated President & CEO, Mortimer J. O'Shea.
"In addition to opening the new branch, we made investments in people
and technology that will strengthen our future performance and growth. The
conversion to a holding company will give us more flexibility in the years
ahead and our new administrative office space in New Providence
dramatically improves the work environment for our people."
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 oriented bank engaged in 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.
