1st Colonial Bancorp Reports Third Quarter Net Income Growth and Year to Date Profit of $2,143,000

COLLINGSWOOD, N.J.--()--1st Colonial Bancorp, Inc. (OOTC: FCOB), holding company of 1st Colonial Community Bank, today reported that its net income for the three months ended September 30, 2015 was $763,000 ($0.21 per share), compared to $362,000 ($0.10 per share) for the three months ended September 30, 2014. Net interest income increased $603,000 resulting from continued growth in interest earning assets. Non-interest income also increased by $451,000, primarily attributable to increased fees from the origination and sale of residential first mortgage loans.

The provision for loan losses decreased by $4,000 for the quarter ended September 30, 2015 from the quarter ended September 30, 2014. Non-interest expense increased by $423,000 in the three months ended September 30, 2015 compared to the three months ended September 30, 2014; salaries and benefits increased by $344,000 primarily as a result of key additions of personnel in the residential lending area; other non-interest expenses increased by $79,000. Income tax expense also increased by $234,000 for the quarter ended September 30, 2015 from the quarter ended September 30, 2014.

Net income for the nine months ended September 30, 2015 was $2,143,000 ($0.58 per share), compared to $765,000 ($0.21 per share) for the nine months ended September 30, 2014.

Gerry Banmiller, President and Chief Executive Officer, commented, “The bank’s performance would not have been possible without the support of its key constituencies: our shareholders, for their initial investments in our bank, the directors, officers and employees for their steady dedication to the bank’s growth and profit, and most importantly, our depositors.”

He continued, “Our customers maintain significant balances in our bank. We attract these large accounts, be they governmental or non-governmental, because of our longevity in the market, our reputation as a trustworthy institution, and the efficiency of our delivery systems.”

At September 30, 2015, 1st Colonial also reported $447 million in total assets, $413 million in deposits and $290 million in loans. These amounts reflect increases of $94 million in assets, $91 million in deposits and $65 million in loans from September 30, 2014.

The company also reported that its shareholders equity of $29.7 million and book value per share of $8.04 at September 30, 2015 increased by 13.5% and 13.3%, respectively, since September 30, 2014.

Net interest income of $9,442,000 for the nine months ended September 30, 2015 was $1,777,000, or 23.2%, higher than the net interest income of $7,665,000 for the nine months ended September 30, 2014, resulting from an increase in average interest earning assets of approximately $80 million for the nine months ended September 30, 2015 compared to the nine months ended September 30, 2014. In addition, 1st Colonial’s provision for loan losses was $897,000 for nine months ended September 30, 2015 compared to a provision for loan losses of $825,000 for the nine months ended September 30, 2014.

Non-interest income of $2,500,000 for the nine months ended September 30, 2015 was $1,223,000 greater than non-interest income for the nine months ended September 30, 2014, primarily attributable to increased fees from the origination and sale of residential first mortgage loans.

Non-interest expense for the nine months ended September 30, 2015 increased $605,000 or 8.6% from the comparable period in 2014. Salaries and benefits increased by $997,000 primarily as a result of key additions of personnel in the residential lending area, offset by a $242,000 decrease in occupancy and equipment costs due to reduced expenses in our new administration facility, a $106,000 decrease in losses on real estate owned and a decrease of $44,000 of other operating expenses from the same period in 2014.

Highlights as of September 30, 2015 and September 30, 2014, and comparing the three and nine months ended September 30, 2015 and the three and nine months ended September 30, 2014, respectively, include the following (dollars in thousands, except per share data):

     
at at

$
increase/

decrease

%
increase/

decrease

September 30,
2015

September 30,
2014

 
Total assets $447,151 $352,657 $94,494 26.8%
 
Total loans 290,074 224,801 65,273 29.0%
 
Investments 141,071 113,159 27,912 24.7%
 
Total deposits 412,890 321,845 91,045 28.3%
 
Shareholders' equity 29,717 26,171 3,546 13.5%
 

Book Value per share (1)

$8.04 $7.10 $0.94 13.3%
 
For the nine months ended

$
increase/

decrease

%
increase/

decrease

September 30,
2015

September 30,
2014

 
Net interest income $9,442 $7,665 $1,777 23.2%
 
Provision for loan losses 897 825 72 8.7%
 
Other income 2,500 1,277 1,223 95.8%
 
Non interest expense 7,653 7,048 605 8.6%
 
Tax expense 1,249 304 945 310.9%
 
Net income 2,143 765 1,378 180.1%
 

Earnings per share (1)

$0.58 $0.21 $0.37 179.5%
 
 
For the three months ended
 

$
increase/

decrease

%
increase/

decrease

September 30,
2015

September 30,
2014

 
Net interest income $3,274 $2,671 $603 22.6%
 
Provision for loan losses $296 $300 (4) -1.3%
 
Other income $941 $490 451 92.1%
 
Non interest expense $2,746 $2,323 423 18.2%
 
Tax expense 410 176 234 133.0%
 
Net income 763 362 401 110.7%
 

Earnings per share (1)

$0.21 $0.10 $0.11 115.3%
 

(1) Adjusted to give effect to the 5% stock dividend distributed to shareholders on April 15, 2015.

 

1st Colonial Community 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 a branch in the New Jersey community of Westville and a loan production office in Mantua, Gloucester County. 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, inability to close loans in our pipeline, lack of liquidity; varying and unanticipated costs of collection with respect to nonperforming loans; an inability to dispose of its real estate owned; 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, customers 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.

Contacts

1st Colonial Bancorp, Inc.
Gerry Banmiller, 856-858-8402

Contacts

1st Colonial Bancorp, Inc.
Gerry Banmiller, 856-858-8402