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, 2011 was $170,000 ($0.05 per share), compared to $111,000 ($0.03 per share) for the three months ended March 31, 2010.

Gerry Banmiller, President and Chief Executive Officer, commented, “As lowering interest expense is a key component of the income statement, we continue to focus on the elimination of high priced deposits. Critical, as well, to a successful year is interest income derived from loans. We will be especially attentive to these two elements of our performance for the remainder of the year. Also, through our residential lending division and SBA lending programs we are creating the core earnings to allow us to continue to add to our loan loss reserve and absorb additional expenses related to loans in foreclosure and still provide positive earnings for our shareholders.”

At March 31, 2011, 1st Colonial also reported $276.1 million in total assets and $240.6 million in deposits. These amounts reflect a decrease of $3.7 million in assets from March 31, 2010, largely due to the decrease in deposits of $5.0 million or 2.0% from March 31, 2010. Total loans were $177.8 million, an increase of $6.5 million or 3.8% from March 31, 2010. Investments were $83.3 million, a decrease of $5.8 million from March 31, 2010.

Net interest income of $2,153,000 for the three months ended March 31, 2011 was $117,000, or 5.7%, higher than the net interest income of $2,036,000 for the three months ended March 31, 2010. This was due primarily to a 0.28% increase in net interest spread to 3.21% for the three months ended March 31, 2011 compared to 2.93% for the three months ended March 31, 2010.

1st Colonial’s provision for loan losses for the three months ended March 31, 2011 was $450,000 compared to the $640,000 provision for the three months ended March 31, 2010.

Non-interest income decreased $102,000 or 20.9% from the prior year. Non-interest income for the three months ended March 31, 2010 included a gain on sale of investments of $212,000. Fees generated by the origination and sale of residential mortgage loans increased by $107,000.

Non-interest expense increased $193,000 or 11.1% from the comparable period in 2010. Salaries and benefits accounted for $136,000 of the increase due to increased expenses related to loan volume in our residential lending department and general salary and benefit increases. Expenses related to loans in foreclosure and legal expenses inherent with enforcing loan contracts increased by $63,000.

Highlights as of March 31, 2011 and March 31, 2010, and comparing the three months ended March 31, 2011 and the three months ended March 31, 2010, respectively (all unaudited), include the following (dollars in thousands, except per share data):

        at at $ increase/ % increase/

March 31, 2011

March 31, 2010

Decrease

decrease

  Total assets $276,090 $279,779 ($3,689) -1.3%   Total loans 177,820 171,305 6,515 3.8%   Investments 83,329 89,159 (5,830) -6.5%   Total deposits 240,635 245,634 (4,999) -2.0%   Shareholders' equity 23,374 23,032 342 1.5%  

For the three months ended

$ increase/ % increase/

March 31, 2011

March 31, 2010

Decrease

decrease

  Net interest income $2,153 $2,036 $117 5.7%   Provision for loan losses 450 640 (190) -29.7%   Other income 387 489 (102) -20.9%   Non interest expense 1,932 1,739 193 11.1%   Tax expense (benefit) (12) 35 (47) -134.3%  

Net income

170 111 59 53.2%   Earnings per share (diluted) $0.05 $0.03 $0.02 66.7%  

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; unanticipated loan losses, 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.