Hilltop Community Bancorp Reports 52.0% Earnings Increase for the Third Quarter

SUMMIT, N.J., Oct 17, 2008 /PRNewswire-FirstCall via COMTEX/ -- Hilltop Community Bancorp, Inc. (the Corporation) (OTC Bulletin Board: HTBC), the holding company for Hilltop Community Bank (the Bank), today reported continued strong earnings, up 52.0% for the third quarter ended September 30, 2008 as compared to the prior year's third quarter. The Corporation's net income for the third quarter of 2008 was $266,000, compared to $175,000 reported in the quarter ended September 30, 2007. Per share earnings were $0.11, basic and diluted, compared to $0.07, basic and diluted, in the third quarter of 2007. Per share amounts have been adjusted to retroactively reflect the 5% stock dividend issued in December 2007.
Third quarter earnings in 2008 were also 24.9% higher than earnings in the linked second quarter of 2008.

Total assets were $165.4 million at September 30, 2008, approximately $15.6 million above the level of assets at the end of 2007's third quarter. Gross loans were $119.2 million at September 30, 2008, an 11.9% increase over the level of loans at September 30, 2007.

In a joint statement, Chairman of the Board Richard D. Wellbrock and President & CEO Mortimer J. O'Shea commented: "This continues to be a very good year for Hilltop. Despite the turmoil in the banking industry, we have been able to demonstrate significantly improved earnings as we further our mission as a responsive, service oriented, community bank. Hilltop's balance sheet is strong and unlike some of the money center banks, we have not had to cut back on our lending programs or pull back on existing credit facilities. Hilltop has money to lend and is actively seeking new lending relationships. In recent weeks, we have been reassuring customers that Hilltop is strong, secure and ready to do business. We have formed Hilltop Investment Professionals to offer nondeposit investment services and we've added another lending officer to help uncover quality commercial loan opportunities."

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 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.

HILLTOP COMMUNITY BANCORP, INC.

Financial Information

September 30, 2008


09/30/08 09/30/07 12/31/07
-------- -------- --------
Balance Sheet Data: (in thousands)
Total assets $165,378 $149,807 $159,215
Investment securities 32,773 36,416 32,726
ST investments & fed funds
sold 5,867 1,765 9,973
Gross loans 119,248 106,554 111,051
Allowance for loan losses 1,574 1,469 1,484
----- ----- -----
Net loans 117,674 105,085 109,567
Intangible assets 373 373 373
Deposits 144,748 128,650 138,542
Short-term borrowings 1,595 1,957 1,302
Shareholders' equity 17,314 17,384 17,625


QTD YTD
--- ---
09/30/08 09/30/07 09/30/08 09/30/07
-------- -------- -------- --------
(in thousands, except per share and
Income Statement Data: total shares data)
Interest income $2,330 $2,295 $7,052 $6,926
Interest expense 776 1,043 2,683 2,996
--- ----- ----- -----
Net interest income 1,554 1,252 4,369 3,930
Provision for loan losses 30 60 90 135
Noninterest income 67 75 213 195
Gain on securities
transactions - - 31 -
Noninterest expense 1,177 1,092 3,497 3,259
Tax expense 148 115 366 293
Net income 266 175 660 438

Net Interest Margin
(tax-equivalent basis) 3.89% 3.57% 3.61% 3.49%

Per Common Share Data:
Net income per share- basic $0.11 $0.07 $0.27 $0.17
Net income per share- diluted 0.11 0.07 0.27 0.17
Tangible book value- period end 6.89 6.94


Average earning assets $163,552 $148,738 $163,925 $150,654
Average shareholders' equity 17,575 17,769 17,698 17,631
Common shares outstanding-
period end 2,458,339 2,450,839



SOURCE Hilltop Community Bancorp, Inc.