FCOB 1st Colonial Bancorp Inc (PK)

1st Colonial Bancorp, Inc. (OTCBB:FCOB), holding company of 1st Colonial National Bank, today reported that its net income for the year ended December 31, 2009 was $487,000 ($0.15 per share), compared to $649,000 ($0.21 per share) for the year ended December 31, 2008.

Gerry Banmiller, President and Chief Executive Officer, commented that “although the net earnings for 2009 are lower than the prior year, they must be considered in the context of the challenges that are currently impacting the banking industry in this troubled economy. Despite a reduction of net income from $649,000 in 2008 to $487,000 in 2009, our core earnings increased in 2009, as we had a one-time net gain from insurance proceeds of $92,000 in 2008, a special FDIC assessment of $108,000 in 2009 and an increase in the provision for loan loses of $520,000 in 2009. Absent these items, our income before taxes and securities gains/losses increased from $1.3 million in 2008 to $2.0 million in 2009. We achieved this increase in our core earnings despite the increased expenses that are concomitant with a troubled economy, such as increased FDIC insurance premiums and legal expenses inherent with enforcing loan contracts. We are pleased with our deposit and loan growth, which is a function of the individual efforts of our officers as well as increased advertising in newspaper and radio.”

At December 31, 2009, 1st Colonial also reported total assets of $276.6 million compared to $232.8 million at December 31, 2008, total loans increased 16.4% to $170.5 million, and deposits were $232.7 million, an increase of 15.9% from December 31, 2008.

1st Colonial’s provision for loan losses increased by $520,000 to $1,477,000 for the year ended December 31, 2009 compared to the $957,000 provision for the year ended December 31, 2008. Additionally, a loss on investment securities of $68,000 for the year ended December 31, 2009 compared to a gain of $33,000 for the year ended December 31, 2008 was caused by an other-than-temporary-impairment write down of $72,000.

Net interest income of $7,166,000 for the year ended December 31, 2009 was $951,000, or 15.3%, higher than the net interest income of $6,215,000 for the year ended December 31, 2008. Non-interest income for 2009 increased $423,000 or 51.3% from 2008 due to an increase in income from our Residential Lending Division. Fees generated by origination and sale of residential mortgage loans increased by $581,000 for the year ended December 31, 2009 compared to the prior year. Non-interest income for the year ended December 31, 2008 was aided by the one time life insurance proceeds benefit of $232,000.

Non-interest expense also increased $902,000 or 16.1% from the comparable period in 2008. Salaries and benefits accounted for $446,000 of the increase. The addition of the residential lending department, additional staff, and general salary and benefit increases amounted to $586,000 of the increase, which was offset by a $140,000 contractual compensation payout in 2008 related to the life insurance proceeds mentioned above. FDIC assessments increased by $250,000 in 2009; occupancy and equipment expense increased by $64,000 due to our acquiring additional space in our administrative headquarters to accommodate our growth; and professional fees increased by $80,000 related to legal expenses inherent with enforcing loan contracts.

Highlights as of December 31, 2009 and December 31, 2008, and comparing the year ended December 31, 2009 and the year ended December 31, 2008, respectively, include the following (dollars in thousands, except per share data):

  At   At   $ increase/   % increase/ December 31, 2009 December 31, 2008 (decrease) (decrease) (Unaudited) Total assets $ 276,645 $ 232,818 $ 43,827 18.8 %   Total loans 170,509 146,468 24,041 16.4 %   Total deposits 232,749 200,882 31,867 15.9 %   Shareholders' equity 22,828 21,791 1,037 4.8 %   For the year ended   $ increase/ % increase/ December 31, 2009 December 31, 2008 (decrease) (decrease) (Unaudited) Net interest income $ 7,166 $ 6,215 $ 951 15.3 %   Provision for loan losses 1,477 957 520 54.3 %   Other income 1,247 824 423 51.3 %   Non-interest expense 6,503 5,601 902 16.1 %   Securities gain / (loss) (68 ) 33 (101 ) (306.1 %)   Tax benefit (expense) 122 135 (13 ) (9.6 %)   Net income 487 649 (162 ) (25.0 %)   Earnings per share, diluted $ 0.15 $ 0.21 $ (0.06 ) (28.6 %)

1st Colonial National Bank, the subsidiary of 1st Colonial Bancorp, provides a range of business and consumer financial services, placing emphasis on customer service and access to decision makers. Headquartered in Collingswood, New Jersey, the Bank also has branches in the New Jersey communities of Westville and Cinnaminson. To learn more, call (856) 858-8402 or visit www.1stcolonial.com.

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; lack of liquidity; changes in interest rates, changes in FDIC assessments, 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.