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, 2012 was $383,000 ($0.12 per share), compared to $170,000 ($0.05 per share) for the three months ended March 31, 2011.

Gerry Banmiller, President and Chief Executive Officer, commented, “In prior messages I promised we would attack the cost of deposits by reducing our Certificate of Deposit portfolio. Kindly note that as of March 31st, the time deposit interest expense decreased from $248,000 to $109,000. Yet, even with this reduction, we still have a conservative loan-to-deposit ratio of 70%. Our dramatic increase in net income for the first quarter resulted from this level of intense focus on expense control.”

He added, “We are continuing our efforts to produce more fee income through our participation in the SBA loan program. Due to the Small Business Administration’s guaranty of these loans, this lending function has minimal risk to the Bank, and is therefore made for these challenging economic times.”

At March 31, 2012, 1st Colonial also reported $282.3 million in total assets and $247.3 million in deposits. These amounts reflect increases of $6.2 million in assets and $6.6 million in deposits from March 31, 2011. As noted above, the deposit mix changed as a result of a decrease of $25.8 million in certificates of deposits and an increase of $22.9 million in transaction accounts and $9.5 million in savings accounts. Loans were relatively unchanged at $178.2 million.

Net interest income of $2,377,000 for the three months ended March 31, 2012 was $224,000, or 10.4%, higher than the net interest income of $2,153,000 for the three months ended March 31, 2011. This was due primarily to an increase of 0.28% in net interest spread to 3.45% for the three months ended March 31, 2012 compared to 3.17% for the three months ended March 31, 2011.

1st Colonial’s provision for loan losses was $450,000 for the three months ended March 31, 2012 and March 31, 2011.

Non-interest income of $399,000 for the three months ended March 31, 2012 was $12,000 higher than the first quarter of 2011.

Non-interest expense for the three months ended March 31, 2012 decreased $117,000 or 6.1% from the comparable period in 2011. FDIC Assessments decreased $41,000, expenses related to loans in foreclosure decreased by $38,000 and occupancy and equipment expenses decreased by $21,000.

For the three months ended March 31, 2012, 1st Colonial had income tax expenses of $128,000 compared to tax benefit of $12,000 for the three months ended March 31, 2011 representing an increase of $140,000.

Highlights as of March 31, 2012 and March 31, 2011, and comparing the three months ended March 31, 2012 and the three months ended March 31, 2011, respectively, include the following (dollars in thousands, except per share data):

                At At $ increase/ % increase/

March 31, 2012

March 31, 2011

(decrease)

(decrease)

  Total assets $ 282,317 $ 276,090 $ 6,227 2.3 %   Total loans 178,239 177,820 419 0.2 %   Investments 89,223 83,329 5,894 7.1 %   Total deposits 247,257 240,635 6,622 2.8 %  

Shareholders' equity

24,670 23,374 1,296 5.5 %  

Book value per share

$ 7.75 $ 7.34 $ 0.41 5.5 %    

 

For the three months ended $ increase/ % increase/

March 31, 2012

March 31, 2011

(decrease)

(decrease)

  Net interest income $ 2,377 $ 2,153 $ 224 10.4 %   Provision for loan losses 450 450 0 0.0 %   Other income 399 387 12 3.1 %   Non-interest expense 1,815 1,932 (117 ) -6.1 %   Tax expense (benefit) 128 (12 ) 140 -1,166.7 %   Net income 383 170 213 125.3 %   Earnings per share, diluted $ 0.12 $ 0.05 $ 0.08 140.0 %  

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; changes in relationships with major customers; operational risks, including the risk of fraud by employees or outsiders; 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.