Hilltop Community Bancorp

Jul 22, 2013

SUMMIT, N.J., July 22, 2013 /PRNewswire/ -- Hilltop Community Bancorp, Inc. (the Corporation or Hilltop) (OTCQB: HTBC), the holding company for Hilltop Community Bank (the Bank) today reported net income of $288,000 ($0.10 per common share, basic and diluted) for the quarter ended June 30, 2013. This was an increase of 32% when compared to net income of $219,000 ($0.08 per share, basic and diluted) for the second quarter of 2012. Net income for the first half of 2013 was $471,000 ($0.16 per common share, basic and diluted) compared to net income of $454,000 ($0.16 per share, basic and diluted) for the first half of the prior year. Both the second quarter and first half results in 2013 were positively impacted by the sale of a bond in the Bank's investment portfolio that yielded a gain of $136,000. Total assets amounted to $174.4 million at June 30, 2013, compared to total assets of $179.6 million at June 30, 2012, and total assets of $177.0 million at December 31, 2012. Gross loans were $106.0 million at June 30, 2013, down slightly from gross loan volume of $107.4 million at the mid point of last year. The allowance for loan losses was 1.73% of total loans at June 30, 2013. The net interest margin for the second quarter was 3.91%, a reduction of 19 basis points from the prior year's second quarter but generally higher than other New Jersey based community banks. The reduction in the margin was primarily caused by a lower yield on loans. Hilltop's net interest margin for the first six months of 2013 was 4.02%. The proposed merger with Haven Bancorp, Inc., which was announced on June 5, 2013, is proceeding on schedule. Haven has submitted the required application to the regulators and Hilltop is working on the proxy statement which will be required as part of the shareholder approval process. A fourth quarter closing is anticipated. Under the proposed plan, shareholders of Hilltop Community Bancorp, Inc.  will receive $9.42, in cash, for each share of the Corporation's stock that they own. In a joint statement, Chairman of the Board Richard D. Wellbrock and President & CEO Mortimer J. O'Shea commented: "We are certainly pleased with our second quarter results. Hilltop continues to demonstrate a relatively low cost of funds that will help us stem the tide of lower rates on the asset side of the balance sheet. Our allowance for loan losses is very solid at 1.73% and we anticipate that we will be able to reduce our monthly provisioning for loan losses for the remainder of the year. It is gratifying that we have been able to negotiate a sale of the Corporation to Haven Bancorp, Inc. Most of our long time shareholders will realize a profit on their investment in Hilltop and our customers will become clients of a long established New Jersey financial institution. " 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.