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 second quarter of 2005. Net income after taxes amounted to $24,000 ($0.01 per share, basic and diluted) for the quarter ended June 30, 2005, compared with the prior year's second quarter net income of $311,000 ($0.19 per share, basic, and $0.17 per share, diluted) when the Bank was the reporting entity. The Bank's net income in the second quarter of 2004 included a tax benefit of $200,000. The Corporation's net income in the second quarter of 2005 exceeded net income in the first quarter by $19,000.

Total assets reached a record high of $157 million at June 30, 2005, a 21.0% increase over the level of assets at the end of 2004. Gross loans were also at a record high of $80 million at June 30, 2005, an increase of 40.1% in the twelve months since June 30, 2004. There were no delinquent loans in the portfolio at June 30, 2005 and the loan loss reserve was 1.22% of total loans.

In a joint statement, Chairman of the Board Richard D. Wellbrock and President and CEO Mortimer J. O'Shea commented: "We are very pleased that our recent retail deposit promotion, along with very strong deposit support from our commercial clients, resulted in record asset levels at the end of the quarter. Just as significant, our lenders continue to generate excellent loan growth and there is a healthy pipeline of commercial loans which we expect to book in the near future. Operating earnings are still impacted by the occupancy and personnel costs related to the Madison branch office and the New Providence operations center, but we are making progress each month as our earnings improve. The long term outlook for the Hilltop franchise remains positive."

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.