SUMMIT, N.J., Hilltop Community Bancorp, Inc. (the Corporation) (OTC Bulletin Board: HTBC), the holding company for Hilltop Community Bank (the Bank) today reported net income of $148,000 for the quarter ended September 30, 2010, compared to net income of $255,000 for the third quarter of 2009. Net income available to common shareholders was also $148,000 in the current year's third quarter, compared to $191,000 in the third quarter of 2009. On a per share basis, the Corporation earned $0.05, basic and diluted, in the third quarter of 2010, compared to $0.07, basic and diluted, in the third quarter of 2009.
Net income for the first nine months of 2010 was $476,000 ($0.09 per share, basic and diluted), compared to $280,000 for the first nine months of 2009. Net income per share was $0.04, basic and diluted, for the first nine months of 2009 after accounting for the preferred stock dividends and related accretion. The dividends and accretion were related to the Capital Purchase Program preferred stock that was part of the Corporation's capital structure during 2009 and the early months of 2010.
Total assets were $169.9 million at September 30, 2010, an increase of $4.0 million over the level of assets at the end of 2009. Gross loans totaled $110.3 million, a decrease of $3.4 million when compared to December 31, 2009, but a slight increase over the level of loans at the end of the second quarter of 2010. The Bank's allowance for loan losses was $1,919,000 at September 30, 2010, 1.74% of total loans. Noninterest expense for the first nine months of 2010 was slightly lower than noninterest expense for the similar period in the prior year.
In a joint statement, Chairman of the Board Richard D. Wellbrock and President & CEO Mortimer J. O'Shea commented: " Hilltop continues to report profitable operations despite the lingering effects of the recession. Very importantly, we have a strong capital position and the ability to make new loans to qualified borrowers. We continue to do well with our customer niches (small businesses, attorneys, and not for profit organizations) and our branch managers and lending officers are making every effort to attract new clients to the Bank. Unlike Hilltop, a number of community banks which received Capital Purchase Program (TARP) funds have not been able to redeem the preferred shares held by the U. S. Treasury because of poor earnings or diminished capital. We are particularly pleased that Hilltop was able to redeem the preferred shares earlier this year after receiving approval from three sets of regulators. We hope an improved business climate is imminent. We look forward to that economic environment."
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 Corporation assumes no obligation for updating any such forward-looking statements at any time.