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 three months ended March 31, 2010 was $111,000 ($0.04 per share), compared to $225,000 ($0.07 per share) for the three months ended March 31, 2009.

Gerry Banmiller, President and Chief Executive Officer, commented that “although the 2010 first quarter earnings are lower than the prior year, as you consider the other core elements of the bank’s performance, you will notice that there were increases in these areas. The total assets, loans, and deposits had healthy increases. The deterioration in net income springs primarily from a conservative approach to the loan loss reserve which contemplates a realistic examination of certain loan contracts not being honored. We will continue to aggressively attack these non-performers, accepting at the same time the depreciation in real estate values.”

At March 31, 2010, 1st Colonial also reported total assets of $279.8 million compared to $231.0 million at March 31, 2009, an increase in total loans of 14.8% to $171.3 million from March 31, 2009, and deposits of $245.6 million, an increase of 30.8% from March 31, 2009.

For the quarter, 1st Colonial’s net interest income of $2.0 million was $394,000, or 24.0%, higher than the first quarter of 2009. Non-interest income was $277,000, an increase of $66,000 over the first quarter of 2009. Included in such non-interest income were fees generated by the origination and sale of residential mortgage loans, which increased by $37,000 in the first three months of 2010 compared to the same period in 2009. Non-interest expense also increased $275,000 or 19.2% from the comparable period in 2009. Salaries and benefits accounted for $115,000 of the increase; FDIC assessments increased by $66,000; professional fees increased by $30,000 related to legal expenses inherent with enforcing loan contracts, and advertising expense increased by $17,000.

1st Colonial’s provision for loan losses increased by $489,000 to $640,000 for the three months ended March 31, 2010 compared to the $151,000 provision for the three months ended March 31, 2009. Additionally, a $212,000 gain on the sale of investment securities was partially offset by a loss of $29,000 on the sale of other real estate owned. This resulted in a net gain of $183,000 for the quarter ended March 31, 2010.

Highlights as of March 31, 2010 and March 31, 2009, and comparing the three months ended March 31, 2010 and the three months ended March 31, 2009, respectively (all unaudited), include the following (dollars in thousands, except per share data):

        At At $ increase/ % increase/

March 31, 2010

March 31, 2009

(decrease)

(decrease)

  Total assets $ 279,779 $ 230,968 $ 48,811 21.1 %   Total loans 171,305 149,285 22,020 14.8 %   Total deposits 245,634 187,746 57,888 30.8 %   Shareholders' equity 23,032 22,317 715 3.2 %   For the three months ended   $ increase/ % increase/

March 31, 2010

March 31, 2009

(decrease)

(decrease)

  Net interest income $ 2,036 $ 1,642 $ 394 24.0 %   Provision for loan losses 640 151 489 323.8 %   Other income 277 211 66 31.3 %   Non-interest expense 1,710 1,435 275 19.2 %   Gain on securities / real estate 183 - 183 N/A   Tax expense 35 42 (7 ) (16.7 %)   Net income 111 225 (114 ) (50.7 %)   Earnings per share, diluted $ 0.04 $ 0.07 $ (0.03 ) (42.9 %)  

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; unexpected loan losses; lack of liquidity; changes in interest rates, FDIC assessments, deposit flows, loan demand, or real estate values; increased 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.