FCOB 1st Colonial Bancorp Inc (PK)

1st Colonial Bancorp, Inc. (OTCQB:FCOB), holding company of 1st Colonial Community Bank, today reported that its net income for the three months ended June 30, 2014 was $291,000 ($0.08 per share) compared to $251,000 ($0.06 per share) for the three months ended June 30, 2013. Net interest income increased $319,000 resulting from an increase in average interest earning assets of approximately $46 million for the three months ended June 30, 2014, compared to the three months ended June 30, 2013. In addition, our provision for loan losses decreased by $75,000 for the quarter ended June 30, 2014 from the quarter ended June 30, 2013.

Non-interest income, however, decreased by $355,000, as fees generated by the origination and sale of SBA loans and residential mortgage loans decreased by $249,000 and $212,000, respectively, due to a decrease in the number of such loans closed during the most recent quarter and a decision to retain some of these loans in the Bank’s portfolio. This decrease in fees was partially offset by a $108,000 gain from the sale of investments securities during the three months ended June 30, 2014, compared to no such gain during three months ended June 30, 2013.

Non-interest expense increased by $8,000 in the three months ended June 30, 2014 compared to the three months ended June 30, 2013, as occupancy and equipment expenses increased by $101,000 but salaries and benefits decreased by $73,000. The increase in occupancy and equipment expenses in the quarter was caused by the relocation of our Administration and Loan Offices to Cherry Hill, NJ. The decrease in salaries and benefits was caused by lower commissions in the residential and SBA lending divisions as a result of decreased loan volume.

Net income for the six months ended June 30, 2014 was $403,000 ($0.11 per share), compared to $464,000 ($0.13 per share) for the six months ended June 30, 2013.

Gerry Banmiller, President and Chief Executive Officer, commented, “We are very pleased with our results for the quarter, achieving growth in earnings despite a drop off in our SBA and residential mortgage lending. We have recruited key staff additions to our SBA unit and residential mortgage area that have substantially increased our loan pipeline, which by year end should bring our revenues from this area to a level close to our original projections for 2014.”

At June 30, 2014, 1st Colonial also reported $363.5 million in total assets, $321.4 million in deposits and $214.4 million in loans. These amounts reflect increases of $61.1 million in assets, $55.9 million in deposits and $33.0 million in loans from June 30, 2013. Also increasing were investment securities by $26.2 million and other borrowings by $4.1 million.

Net interest income of $4,944,000 for the six months ended June 30, 2014 was $536,000, or 12%, higher than the net interest income of $4,458,000 for the six months ended June 30, 2013, resulting from an increase in average interest earning assets of approximately $41 million for the six months ended June 30, 2014 compared to the six months ended June 30, 2013. In addition, 1st Colonial’s provision for loan losses was $525,000 for the six months ended June 30, 2014 compared to a provision for loan losses of $600,000 for the six months ended June 30, 2013.

Non-interest income of $787,000 for the six months ended June 30, 2014, however, was $505,000 lower than non-interest income for the six months ended June 30, 2013. Fees generated by the origination and sale of residential mortgage loans and SBA loans decreased by $305,000 and $292,000 respectively, for the reasons set forth above in the quarter to quarter comparison. These decreases were partially offset by a gain on the sale of investment securities of $108,000 for the six months ended June 30, 2014 compared to no such gain during the six months ended June 30, 2013.

Non-interest expense for the six months ended June 30, 2014 increased $222,000 or 4.9% from the comparable period in 2013. Occupancy and equipment expenses increased $182,000 due to the relocation of our Administration and Loan Offices, costs associated with problem loans increased by $80,000, professional fees increased by $37,000 and salaries and benefits decreased by $63,000 due to lower commissions in the residential and SBA lending divisions as a result of decreased loan volume.

The company also reported that its shareholders equity of $25.9 million and book value per share of $7.37 at June 30, 2014 increased by 5.3% and 5.0% respectively since June 30, 2013. This was due to a shift from an unrealized loss to an unrealized gain in the investment portfolio, as interest rates moved lower compared to prior year.

Highlights as of June 30, 2014 and June 30, 2013, and comparing the three and six months ended June 30, 2014 and the three and six months ended June 30, 2013, respectively, include the following (dollars in thousands, except per share data):

        at at $ increase/ % increase/

June 30, 2014

June 30, 2013

decrease

decrease

  Total assets $363,512 $302,450 $61,062 20.2%   Total loans 214,425 181,413 33,012 18.2%   Investments 130,577 104,404 26,173 25.1%   Total deposits 321,383 265,511 55,872 21.0%   Shareholders' equity 25,919 24,626 1,293 5.3%   Book Value per share (1) 7.37 7.01 0.36 5.0%   For the six months ended $ increase/ % increase/

June 30, 2014

June 30, 2013

decrease

decrease

  Net interest income $4,994 $4,458 $536 12.0%   Provision for loan losses 525 600 (75) -12.5%   Other income 787 1,292 (505) -39.1%   Non interest expense 4,725 4,503 222 4.9%   Tax expense 128 183 (55) -30.1%   Net income 403 464 (61) -13.1%   Earnings per share (1) $0.11 $0.13

$(0.02)

-13.3%   For the three months ended $ increase/ % increase/

June 30, 2014

June 30, 2013

decrease

decrease

  Net interest income $2,550 $2,231 $319 14.3%   Provision for loan losses $225 $300 (75) -25.0%   Other income $432 $787 (355) -45.1%   Non interest expense $2,377 $2,369 8 0.3%   Tax expense 89 98 (9) -9.2%   Net income 291 251 40 15.9%   Earnings per share (1) $0.08 $0.06 $0.02 36.1% (1)  

Adjusted to give effect to the 5% stock dividend distributed to shareholders on April 15, 2014.

 

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 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, inability to close loans in our pipeline, 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, 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.

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