Hilltop Community Bancorp, Inc. Repays TARP Funds

SUMMIT, N.J., April 26 /PRNewswire-FirstCall/ -- Hilltop Community Bancorp, Inc. (the Corporation) (OTCQB: HTBC), the holding company for Hilltop Community Bank (the Bank) today reported that it had repaid approximately $4.2 million in CPP (TARP) funds to the United States Treasury by redeeming the Preferred Stock that had been issued to the Treasury in January 2009.

In a joint statement, Chairman of the Board Richard D. Wellbrock and President Mortimer J. O'Shea commented: "We are pleased that the regulators approved the return of these funds without requiring that the Corporation raise substitute capital. We had pointed out to the FDIC, the New Jersey Department of Banking and Insurance and the Federal Reserve Bank of New York that both the Corporation and the Bank would have a leverage ratio in excess of 10% after returning the funds and that our asset quality and fully funded loan loss reserve compare favorably to other community banks in New Jersey. As we had stated previously, we originally applied for the funds because the head of the FDIC encouraged healthy community banks to do so in the midst of the turbulent financial climate in the fourth quarter of 2008. It has been our intent to apply to return the funds as soon as possible after registering a profitable year in 2009. Going forward, the dividends that had been paid on the preferred shares will instead be added to retained earnings for the benefit of our common shareholders."  

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.

SOURCE Hilltop Community Bancorp, Inc.