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, 2011 was $678,000 ($0.21 per share), compared to $240,000 ($0.08 per share) for the year ended December 31, 2010.

Gerry Banmiller, President and Chief Executive Officer, commented, “We are adjusting to the conditions imposed by the current economic climate. The lack of dramatic growth, driven by lower demand, as well as a smaller pool of qualified borrowers, has caused us to continue monitoring deposit growth, reducing our reliance on higher cost certificates of deposit in favor of lower cost demand deposit accounts.”

He continued, “We will continue to confront the challenges presented by an uncertain economy, high unemployment and low interest rates. I see this continuing for at least one more year.”

At December 31, 2011, 1st Colonial also reported $290.8 million in total assets and $257.0 million in deposits. These amounts reflect increases of $18.1 million in assets and $24.4 million in deposits from December 31, 2010. Loans were relatively unchanged at $176.7 million.

Net interest income of $9.0 million for the year ended December 31, 2011 was $500,000, or 5.9%, higher than the net interest income of $8.5 million for the year ended December 31, 2010. This was due primarily to an increase in net interest spread of 0.16% to 3.31% for the year ended December 31, 2011 compared to 3.15% for the year ended December 31, 2010.

1st Colonial’s provision for loan losses for the year ended December 31, 2011 was $2.5 million compared to the $3.1 million provision for the year ended December 31, 2010.

Non-interest income decreased $65,000 from the prior year. While fees generated by origination and sale of SBA loans increased by $199,000 from 2011 to 2010, there were no gains on the sale of securities for the year ended December 31, 2011 compared to $212,000 in gains on the sale of securities for the year ended December 31, 2010.

Non-interest expense increased $391,000 or 5.4% from the comparable period in 2010. Salaries and benefits accounted for $215,000 of the increase due to increased personnel in our residential lending department and general salary and benefit increases. Expenses related to loans in foreclosure increased by $124,000 and losses on the sale of real estate owned increased $166,000. FDIC assessments decreased $142,000 compared to prior year.

For the year ended December 31, 2011, 1st Colonial had a tax benefit of $2,000 compared to tax benefit $243,000 for the year ended December 31, 2010 representing a decrease of $241,000.

Highlights as of December 31, 2011 and December 31, 2010, and comparing the year ended December 31, 2011 and the year ended December 31, 2010, respectively, include the following (dollars in thousands, except per share data):

                At At $ increase/ % increase/

December 31, 2011

December 31, 2010

(decrease)

(decrease)

(Unaudited) Total assets $ 290,774 $ 272,620 $ 18,154 6.7%   Total loans 176,675 177,310 (635) -0.4%   Investments 95,218 83,529 11,689 14.0%   Total deposits 256,998 232,631 24,367 10.5%  

Shareholders' equity

24,219 23,208 1,011 4.4%  

 

For the year ended $ increase/ % increase/

December 31, 2011

December 31, 2010

(decrease)

(decrease)

(Unaudited) Net interest income $ 8,982 $ 8,482 $ 500 5.9%   Provision for loan losses 2,475 3,110 (635) -20.4%   Other income 1,764 1,829 (65) -3.6%   Non-interest expense 7,595 7,204 391 5.4%   Tax benefit 2 243 (241) -99.2%   Net income 678 240 438 182.5%   Earnings per share, diluted $ 0.21 $ 0.08 $ 0.13 162.5%  

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; varying and unanticipated costs of collection with respect to nonperforming loans; 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 regulations and in the manner in which the regulators enforce same; new technology and other factors affecting our operations, pricing, products and services.