1st Colonial Bancorp Reports Increases in Net Income, Assets, Deposits and Loans
03 November 2005 - 12:47PM
Business Wire
1st Colonial Bancorp, Inc. (OTC:FCOB), the holding company for 1st
Colonial National Bank, today announced that for the nine months
ended September 30, 2005, it had net income of $569,000,
representing a $160,000 or 39.1% increase over the prior year. For
the three months ended September 30, 2005, net income was $198,000
compared to $175,000 for the comparable period ended September 30,
2004, a 13.1% increase. It also reported that its total assets and
loans had increased by 19.1% and 16.0% respectively since September
30, 2004. Gerry Banmiller, the President and Chief Executive
Officer of 1st Colonial, said "We are continuing our steady growth
that we have maintained since we opened our doors in June 2000. The
first-class customer service provided by our hard working employees
has helped to fuel this growth. Our reputation as a true "community
bank" has allowed us to successfully expand our market into
portions of Burlington and Gloucester Counties, New Jersey, in
addition to our home base of Camden County. We opened our third
full service office on September 6, 2005. This Burlington County
office is located at 2802 Route 130 N., Cinnaminson, New Jersey."
At September 30, 2005, 1st Colonial reported $172.1 million in
assets and $86.5 million in loans. These amounts reflect an
increase of $27.6 million in assets and $11.9 million in loans from
September 30, 2004. Deposits were $146.7 million, an increase of
$26.1 million or 21.6% from September 30, 2004. 1st Colonial also
reported a 16.7% increase in net interest income to $3.4 million
for the nine months ended September 30, 2005 from $2.9 million for
the comparable period ended September 30, 2004. For the three month
period ended September 30, 2005, the Company reported a 9.1%
increase in net interest income from the comparable period last
year. Net interest income for the three month period was $1.2
million compared to $1.1 million for the three months ended
September 30, 2004. According to Gerry Banmiller, "growth in our
loan portfolio has resulted in substantial net interest income
growth." 1st Colonial's 39.1% increase in net income for the nine
months ended September 30, 2005 compared to the comparable period
in 2004, enabled its diluted earnings per share to increase to
$0.23 compared to $0.20 in the prior period. For the three months
ended September 30, 2005, diluted earnings per share increased to
$.08 from $.07 for the three months ended September 30, 2004. The
earnings per share numbers for both periods have been adjusted to
reflect the 5% stock dividend paid on April 15, 2005. For the nine
months ended September 30, 2005, other income increased
approximately $80,000 or 38.5% compared to the comparable prior
period. This was due primarily to increased account fees of
$26,000, an increase in ATM fees of $12,000, the receipt $5,000 as
a tentative settlement in a class action lawsuit of which the Bank
participated as a member of the Pulse EFT network, income of
$33,000 on Bank Owned Life Insurance ("BOLI"), offset by lower
gains on loans sold of $9,000. The remaining increase was volume
related. For the three month period ended September 30, 2005, the
Company's reported a $53,000 or 77.9% increase in other income from
the comparable period last year. During the third quarter 2005, the
Bank purchased $4.0 million of BOLI on certain key employees.
Income on these policies, which is recorded as other income and is
exempt from federal income taxes, accounted for a majority of this
increase. For the nine months ended September 30, 2005, other
expense increased approximately $420,000 or 18.5% from the
comparable prior period. Most of these increases were growth
related. Due to the opening of our Cinnaminson office, employee
salaries and benefits increased $251,000. The Cinnaminson opening
also contributed to an increase in occupancy and equipment expenses
of approximately $55,000. Advertising expenses increased $61,000
for the nine months ended September 30, 2005 as compared to the
nine months ended September 30, 2004. Professional fees increased
$22,000 for the nine months ended September 30, 2005 compared to
the comparable prior period. For the three months ended September
30, 2005, other expense increased approximately $199,000 or 25.5%
as compared to the comparable period in 2004. As with the nine
month comparison, most of these increases were related to growth
and the opening of our new office. Employee related expenses
increased $135,000, occupancy and equipment increased $17,000, and
advertising increased $14,000. Data processing costs increased
$17,000 and professional fees increased $8,000 for the three months
ended September 30, 2005 compared to the linked quarter in 2004.
The Company announced that during the nine months ended September
30, 2005, certain warrants to purchase 30,919 shares were exercised
resulting in $257,000 in additional capital. These warrants were
issued in the 2002 unit offering. In addition, in June 2005,
warrants that had been issued in its initial public offering in
June 2000 were exercised, resulting in the Company's issuance of
63,592 shares and $579,000 in additional capital to the Company.
The remaining year 2000 warrants representing 38,282 shares were
not exercised and expired on June 29, 2005. Highlights as of
September 30, 2005 and September 30, 2004, and comparing the three
and nine months ended September 30, 2005 to the three and nine
months ended September 30, 2004, respectively (all unaudited),
include the following (dollars in thousands, except per share
data): -0- *T At At $ % September 30, September increase/ increase/
2005 30, 2004 (decrease) (decrease) -------------- ----------
----------- ---------- Total assets $172,079 $144,447 $27,632 19.1%
Total loans 86,520 74,608 11,912 16.0% Total deposits 146,711
120,653 26,058 21.6% Shareholders' equity 18,546 17,262 1,284 7.4%
For the three months ended
------------------------------------------ $ % September September
increase/ increase/ 30, 2005 30, 2004 (decrease)(decrease)
---------- ----------- -------- --------- Net interest income
$1,175 $1,077 $98 9.1% Provision for loan losses 25 68 (43) -63.2%
Other income 121 68 53 77.9% Other expense 980 781 199 25.5% Net
income 198 175 23 13.1% Earnings per share, diluted $0.08 $0.07
$0.01 14.3% For the nine months ended
------------------------------------------ $ % September September
increase/ increase/ 30, 2005 30, 2004 (decrease)(decrease)
----------- ---------- --------- --------- Net interest income
$3,432 $2,941 $491 16.7% Provision for loan losses 130 193 (63)
-32.6% Other income 255 208 47 22.6% Other expense 2,695 2,275 420
18.5% Net income 536 409 127 31.1% Earnings per share, diluted
$0.22 $0.20 $0.02 10.0% At and for the nine months ended
--------------------- September September 30, 2005 30, 2004
---------- ---------- Key financial ratios Return on average assets
(1) 0.47% 0.44% Return on average equity (1) 4.02% 3.68% Net
interest margin 3.26% 3.33% Efficiency ratio (1) (2) 73.09% 72.25%
Non-interest income/operating revenue 6.92% 6.61% Non-performing
assets/assets 0.02% 0.02% Net charge offs/average loans (1) 0.00%
0.03% Allowance for loan losses/loans 1.27% 1.27% *T (1)Annualized
(2) Efficiency ratio is total other expense divided by the sum of
net interest income and total other income. This Release contains
forward-looking statements that are not historical facts and
include statements about management's strategies and expectations
about our business. There are risks and uncertainties that may
cause our actual results and performance to be materially different
from results indicated by these forward-looking statements. Factors
that might cause a difference include economic conditions; changes
in interest rates, deposit flows, loan demand, and real estate
values; competition; changes in accounting principles, policies or
guidelines; changes in laws or regulation; new technology and other
factors affecting our operations, pricing, products and services.
More detailed information concerning our financial condition and
results of operations can be found in our 2004 annual report on
Form 10-KSB filed with the Securities and Exchange Commission. This
report can be accessed over the Internet at www.sec.gov. More
information on 1st Colonial can be found online at
www.1stColonial.com or by telephoning our main branch at
856-858-1100.
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