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 the results of operations for the first quarter of 2005. Net income after taxes amounted to $5,000 for the quarter ended March 31, 2005, compared with the prior year’s first quarter profit of $141,000 when the Bank was the reporting entity.

In a joint statement, Chairman of the Board Richard D. Wellbrock and President and CEO Mortimer J. O’Shea commented: “Although Hilltop’s net interest income increased by $84,000 from the first quarter of 2004 to the first quarter of 2005, our results were negatively impacted by higher expenses. These expenses were the personnel and occupancy costs associated with our newest branch office, in Madison, as well as the rental expense on the office space in New Providence which houses our lenders, finance staff and operations team. However, we believe that the Corporation has invested wisely for the long term development of the franchise and that we are well positioned for growth and improved operating results as we go forward this year.”

Total assets were $127 million at March 31, 2005, slightly less than the previous year’s figure. The Bank is currently offering a deposit promotion to attract new money and help expand the asset base. On a positive note, gross loans increased approximately $19.2 million, or 35%, from March 31, 2004 to March 31, 2005. There were no delinquent loans in the portfolio at the end of the first quarter, and the loan loss reserve amounted to 1.26% of total loans.

Hilltop’s net interest margin increased by 18 basis points between the first quarter of 2004 and the first quarter of 2005 as the yield on earning assets increased more than cost of funding them. This reflects, in part, the growth in loans and a gradual shift away from investment securities.

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.