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, 2010 was $373,000 ($0.12 per share), compared to $340,000 ($0.11 per share) for the six months ended June 30, 2009. Additionally, diluted earnings per share increased to $0.12 for the six months ended June 30, 2010 from $0.11 for the six months ended June 30, 2009.

Gerry Banmiller, President and Chief Executive Officer, commented that “These results, in face of recessionary pressures and other economic challenges, are a positive commentary on the strength of our sound community banking model.

At June 30, 2010, 1st Colonial also reported total assets of $276.9 million compared to $239.8 million at June 30, 2009, total loans increased 10.9% to $173.3 million, and deposits were $239.1 million, an increase of 17.5% from June 30, 2009.

1st Colonial’s net interest income of $4.1 million was $724,000, or 21.2%, higher than the six month period ended June 30, 2009. Non-interest income was $648,000, compared to $591,000 for the six months ended June 30, 2009. Non-interest expense also increased $304,000 or 9.6% from the comparable period in 2009. Salaries and benefits accounted for $155,000 of the increase; professional fees increased by $43,000 related to legal expenses inherent with enforcing loan contracts, and advertising expense increased by $56,000.

1st Colonial’s provision for loan losses increased by $494,000 to $995,000 for the six months ended June 30, 2010 compared to the $501,000 provision for the six months ended June 30, 2009. Additionally, a $212,000 gain on the sale of investment securities was partially offset by a loss of $29,000 on the sale of other real estate owned. This resulted in a net gain of $183,000 for the six months ended June 30, 2010 compared to $0 for the six months ended June 30, 2010.

The company also reported that its net income for the three months ended June 30, 2010 was $262,000, an increase of $147,000 from the comparable period ended June 30, 2009. Net interest income increased $330,000, or 18.6%, offset by an increase in income tax expense of $140,000 compared to the three months ended June 30, 2009. Additionally, diluted earnings per share increased to $0.08 for the quarter ended June 30, 2010 from $0.04 for the quarter ended June 30, 2009. The earnings per share numbers stated herein for all periods have been adjusted to reflect the 5% stock dividends paid on April 15, 2010 and April 15, 2009.

Highlights as of June 30, 2010 and June 30, 2009, and comparing the three and six months ended June 30, 2010 and the three and six months ended June 30, 2009, respectively (all unaudited), include the following (dollars in thousands, except per share data):

      $   % at at increase/ increase/ June 30, June 30,

2010

2009

decrease

decrease

  Total assets $276,897 $239,812 $37,085 15.5 %   Total loans 173,315 156,284 17,031 10.9 %   Total deposits 239,134 203,551 35,583 17.5 %   Shareholders' equity 23,658 22,425 1,233 5.5 %  

For the six months ended

$ % increase/ increase/ June 30, June 30,

2010

2009

decrease

decrease

  Net interest income $4,142 $3,418 $724 21.2 %   Provision for loan losses 995 501 494 98.6 %   Other income 648 591 57 9.6 %   Non interest expense 3,482 3,178 304 9.6 %   Gain on securities/real estate 183 0 183 N/A   Tax expense (benefit) 123 (10 ) 133 -1330.0 %   Net income 373 340 33 9.7 %   Earnings per share (diluted) $0.12 $0.11 $0.01 9.1 %  

For the three months ended

  $ % increase/ increase/ June 30, June 30,

2010

2009

decrease

decrease

  Net interest income $2,106 $1,776 $330 18.6 %   Provision for loan losses 355 350 5 1.4 %   Other income 371 380 (9 ) -2.4 %   Non interest expense 1,772 1,743 29 1.7 %   Tax expense (benefit) 88 (52 ) 140 -269.2 %   Net income 262 115 147 127.8 %   Earnings per share (diluted) $0.08 $0.04 $0.04 100.0 %  

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; lack of liquidity; changes in interest rates, changes in FDIC assessments, deposit flows, loan demand, and real estate values; competition; changes in accounting principles, policies or guidelines; changes in laws or regulation; new technology and other factors affecting our operations, pricing, products and services.