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 six months ended June 30, 2012 was $622,000 ($0.20 per share), compared to $345,000 ($0.11 per share) for the six months ended June 30, 2011.

Gerry Banmiller, President and Chief Executive Officer, commented, “Of all measures of a bank’s success, certainly net income is of critical importance. Our increased performance in this area speaks for itself.” He added, “We will not grow in size for the sake of growth, but only for profitability.”

At June 30, 2012, 1st Colonial also reported $273.6 million in total assets, $243.2 million in deposits and $178.4 million in loans. These amounts reflect a decrease in assets of $2.7 million and increases of $1.8 million in deposits and $2.3 million in loans from June 30, 2011. Loans available for sale accounted for $1.7 million of the $2.3 million increase in loans. The decrease in assets was a result of decreases in cash and due from banks of $2.8 million and $2.4 million in investments. The increase of $1.8 million in deposits was offset by a decrease in other borrowing of $5.7 million.

Net interest income of $4,724,000 for the six months ended June 30, 2012 was $343,000, or 7.8%, higher than the net interest income of $4,381,000 for the six months ended June 30, 2011. This was due primarily to an increase of 0.24% in net interest spread to 3.48% for the six months ended June 30, 2012 compared to 3.24% for the six months ended June 30, 2011.

1st Colonial’s provision for loan losses was $850,000 for the six months ended June 30, 2012 compared to a provision for loan losses of $900,000 for the six months ended June 30, 2011.

Non-interest income of $902,000 for the six months ended June 30, 2012 was $202,000, or 28.9%, higher than non-interest income for the six months ended June 30, 2011. Fees generated by the origination and sale of residential mortgage loans and SBA loans increased by $88,000 and $63,000 respectively. Gains on investment securities sold were $19,000 for the six months ended June 30, 2012 and there was no gain or loss from the sale of investments during the six months ended June 30, 2011.

Non-interest expense for the six months ended June 30, 2012 increased $135,000 or 3.5% from the comparable period in 2011. Losses on real estate owned accounted for $149,000 of the increase, salaries and benefits increased by $47,000 and legal collection expenses increased by $38,000. These increases were partially offset by a decrease in FDIC Assessments of $78,000.

For the six months ended June 30, 2012, 1st Colonial had income tax expenses of $206,000 compared to income tax expenses of $23,000 for the six months ended June 30, 2011 representing an increase of $140,000.

The company also reported that its net income for the three months ended June 30, 2012 was $239,000, an increase of $64,000 from the comparable period ended June 30, 2011. Additionally, diluted earnings per share increased to $0.08 for the quarter ended June 30, 2012 from $0.06 for the quarter ended June 30, 2011. Net interest income increased $119,000, non-interest income increased by $190,000 primarily from fees generated by the origination and sale of residential mortgage loans and SBA loans. Non-interest expense increased by $252,000 primarily due to an increase in losses on real estate owned of $149,000. In addition, our provision for loan losses decreased by $50,000 for the quarter ended June 30, 2012 from the quarter ended June 30, 2011.

Highlights as of June 30, 2012 and June 30, 2011, and comparing the three and six months ended June 30, 2012 and the three and six months ended June 30, 2011, respectively, include the following (dollars in thousands, except per share data):

          At At $ increase/ % increase/

June 30, 2012

June 30, 2011

(decrease)

(decrease)

  Total assets $ 273,577 $ 276,303 $ (2,726 ) -1.0 %   Total loans 178,418 176,090 2,328 1.3 %   Investments 81,091 83,535 (2,444 ) -2.9 %   Total deposits 243,157 241,300 1,857 0.8 %  

Shareholders' equity

24,954 23,712 1,242 5.0 %  

Book value per share

7.84 7.45 0.39 5.2 %    

 

For the six months ended $ increase/ % increase/

June 30, 2012

June 30, 2011

(decrease)

(decrease)

  Net interest income $ 4,724 $ 4,381 $ 343 7.8 %   Provision for loan losses 850 900 (50 ) -5.6 %   Other income 902 700 202 28.9 %   Non-interest expense 3,948 3,813 135 3.5 %   Tax expense 206 23 183 795.7 %   Net income 622 345 277 80.3 %   Earnings per share, diluted $ 0.20 $ 0.11 $ 0.09 81.8 %     For the three months ended $ increase/ % increase/

June 30, 2012

June 30, 2011

(decrease)

(decrease)

  Net interest income $ 2,347 $ 2,228 $ 119 5.3 %   Provision for loan losses 400 450 (50 ) -11.1 %   Other income 503 313 190 60.7 %   Non-interest expense 2,133 1,881 252 13.4 %   Tax expense 78 35 43 122.9 %   Net income 239 175 64 36.6 %   Earnings per share, diluted $ 0.08 $ 0.06 $ 0.02 33.3 %  

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.