1st Colonial Bancorp, Inc. (OTCQB:FCOB), holding company of 1st Colonial Community Bank, today reported that its net income for the three months ended December 31, 2014 was $561,000 ($0.14 per share), compared to $153,000 ($0.04 per share) for the three months ended December 31, 2013. Net interest income increased $483,000 resulting from continued growth in interest earning assets. Non-interest income also increased by $202,000, primarily attributable to increased fees from the origination and sale of residential first mortgage loans.

The provision for loan losses increased by $185,000 for the quarter ended December 31, 2014 from the quarter ended December 31, 2013. Non-interest expense decreased by $141,000 in the three months ended December 31, 2014 compared to the three months ended December 31, 2013; salaries and benefits increased by $385,000 primarily as a result of key additions of personnel in the residential lending area, offset by a $500,000 decrease in costs related to the collection of problem loans during the quarter ended December 31, 2014 compared to the quarter ended December 31, 2013.

Gerry Banmiller, President and Chief Executive Officer, commented, “We have continued to diversify our loan portfolio in such a way as to not rely too much on any particular loan type.”

Net income for the year ended December 31, 2014 was $1.33 million ($0.36 per share), compared to $873,000 ($0.26 per share) for the year ended December 31, 2013.

At December 31, 2014, 1st Colonial also reported $409 million in total assets, $377.8 million in deposits and $249.2 million in loans. These amounts reflect increases of $72.8 million in assets, $71.0 million in deposits, $57.2 million in loans and $14.2 million in investment securities from December 31, 2013.

Net interest income of $10.55 million for the year ended December 31, 2014 was $1.35 million, or 14.7%, higher than the net interest income of $9.20 million for the year ended December 31, 2013, resulting from an increase in average interest earning assets of approximately $40 million for the year ended December 31, 2014 compared to the year ended December 31, 2013. 1st Colonial’s provision for loan losses was $1.23 million for the year ended December 31, 2014 compared to a provision for loan losses of $1.02 million for the year ended December 31, 2013.

Non-interest income of $2.06 million for the year ended December 31, 2014 was $234,000 lower than non-interest income for the year ended December 31, 2013. Fees generated by the origination and sale of residential mortgage loans and SBA loans decreased by $10,000 and $352,000 respectively, due to a decrease in the number of such loans closed in 2014 compared to 2013 and a decision to retain some of the residential loans in the Bank’s portfolio. These decreases were partially offset by a gain on the sale of investment securities of $108,000 for the year ended December 31, 2014 compared to no such gain during the year ended December 31, 2013.

Non-interest expense for the year ended December 31, 2014 increased $185,000 or 2.0% from the year ended December 31, 2013. Occupancy and equipment expenses increased $202,000 due to the relocation of our Administration and Loan Offices from Collingswood to Cherry Hill, and salaries and benefits increased by $520,000 due to the additions to our residential lending staff mentioned above, additional support personnel and normal increases; however, these increases were partially offset by a decrease in expenses related the collection of problem assets of $409,000 and other expense decreases.

The company also reported that its shareholders equity of $27.0 million and book value per share of $7.67 at December 31, 2014 increased by 8.9% and 8.8%, respectively, since December 31, 2013. This was due to a reduction in the unrealized loss in the investment portfolio, as interest rates moved lower compared to prior year, and additions to capital through accretive earnings of $1.36 million for the year ended December 31, 2013.

During the quarter, the Bank closed its current branch office located at 2802 Route 130 North, Cinnaminson, New Jersey. This branch ceased all branch banking operations at the close of business on Friday, December 19, 2014. The Bank anticipates that closing the branch will save the Bank approximately $250,000 per year in operating costs, and significantly more than that when the building is sold.

Highlights as of December 31, 2014 and December 31, 2013, and comparing the three months and year ended December 31, 2014 and the three months and year ended December 31, 2013, respectively, include the following (dollars in thousands, except per share data):

        At At $ %

December 31,

December 31,

increase/ increase/

2014

2013

decrease decrease   Total assets $409,000 $336,172 $72,828

21.7%

  Total loans 249,238 192,077 57,161

29.8%

  Investments 137,613 123,461 14,152

11.5%

  Total deposits 377,934 306,979 70,955

23.1%

  Shareholders' equity 26,984 24,777 2,207

8.9%

  Book Value Per Share (1) 7.67 7.05 0.62

8.8%

    For the year ended

$

%

December 31,

December 31,

increase/

increase/

2014

2013

decrease decrease   Net interest income $10,549 $9,197 $1,352

14.7%

  Provision for loan losses 1,225 1,015 210

20.7%

  Other income 2,060 2,294

(234)

-10.2%

  Non interest expense 9,451 9,266 185

2.0%

  Tax expense 607 337 270

80.1%

  Net income 1,326 873 453

51.9%

  Earnings per share (1) $0.36 $0.25 $0.11

43.0%

    For the three months ended

$

%

December 31,

December 31,

increase/

increase/

2014

2013

decrease decrease   Net interest income $2,884 $2,401 $483

20.1%

  Provision for loan losses $400 $215 185

86.0%

  Other income $783 $581 202

34.8%

  Non interest expense $2,403 $2,544

(141)

-5.5%

  Tax expense 303 70 233

332.9%

  Net income 561 153 408

266.7%

  Earnings per share (1) $0.14 $0.04 $0.10

227.5%

  (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 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.

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

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