Hilltop Community Bancorp Reports 47.2% Earnings Increase for the First Quarter

SUMMIT, N.J., April 17 /PRNewswire-FirstCall/ -- Hilltop Community
Bancorp, Inc. (the Corporation) (OTC Bulletin Board: HTBC), the holding
company for Hilltop Community Bank (the Bank) today reported an earnings
improvement of 47.2% for the quarter ended March 31, 2008 as compared to the
prior year's first quarter. The Corporation's net income for the first quarter
of 2008 was $181,000, compared to $123,000 reported in the quarter ended March
31, 2007. Per share earnings were $0.07, basic and diluted, compared to $0.05,
basic and diluted, in the first quarter of 2007. Per share amounts have been
adjusted to retroactively reflect the 5% stock dividend issued in December
2007. Tangible book value was $7.08 per share, up from $6.81 at March 31,
2007.
First quarter earnings in 2008 were also 42.5% higher than earnings in the
fourth quarter of 2007.
Total assets reached a record high of $179.4 million at March 31, 2008, up
$20.2 million from the level reported at year end 2007. Gross loans increased
from $108.7 million at March 31, 2007 to $112.6 million at March 31, 2008, an
improvement of 3.6%, and the bank's loan loss reserve was 1.34% of total loans
at that date.
In a joint statement, Chairman of the Board Richard D. Wellbrock and
President & CEO Mortimer J. O'Shea commented: "Hilltop's performance in the
first quarter is very gratifying, especially in the midst of the troubling
news emanating from many other financial institutions. Our results reflect the
attention we pay to our customers and our commitment to providing quality
service. The critical net interest margin increased by 9 basis points, from
3.34% at March 31, 2007 to 3.43% at the end of the current first quarter. Our
total assets increased significantly in the first quarter, reaching a record
high at March 31, 2008. This is great news during a time when other banks are
scrambling to keep themselves funded with core deposits. As we told our
shareholders in a communication a few weeks ago, the subprime crisis has not
impacted our operation and Hilltop is actively pursuing new business
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

March 31, 2008

03/31/08 03/31/07 12/31/07
Balance Sheet Data: (in thousands)
Total assets $179,393 $152,342 $159,215
Investment securities 35,295 32,673 32,726
Short-term investments 22,556 100 9,723
Gross loans 112,558 108,711 111,051
Allowance for loan losses 1,514 1,394 1,484
Net loans 111,044 107,317 109,567
Intangible assets 373 373 373
Deposits 157,643 131,592 138,542
Short-term borrowings 2,233 1,620 1,302
Shareholders' equity 17,783 17,613 17,625

QTD
03/31/08 03/31/07
Income Statement Data: (in thousands)
Interest income $2,354 $2,319
Interest expense 1,009 1,030
Net interest income 1,345 1,289
Provision for loan losses 30 60
Noninterest income 82 58
Gain on securities transactions 31 -
Noninterest expense 1,146 1,081
Tax expense 101 83
Net income 181 123

Net Interest Margin (tax equivalent
basis) 3.43% 3.34%

Per Common Share Data:
Net income per share- basic $0.07 $0.05
Net income per share- diluted $0.07 $0.05
Tangible book value- period end $7.08 $6.81

Average earning assets $158,612,539 $154,341,314
Average shareholders' equity $17,813,846 $17,481,412
Common shares o/s- period end 2,458,339 2,530,743

SOURCE Hilltop Community Bancorp, Inc.

Mortimer J. O'Shea, Hilltop Community Bancorp, +1-908-918-2400