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 March 31, 2013 was $213,000 ($0.07 per share), compared to $383,000 ($0.12 per share) for the three months ended March 31, 2012.

Gerry Banmiller, President and Chief Executive Officer, commented, “Management in its projections for 2013 anticipated a softer year primarily because of a continued decline in yields impacting our investment and loan portfolios. In fact we are on plan in the first quarter of 2013, but off our prior year’s first quarter performance.”

He added, “We have made the necessary and planned adjustments in rates paid on deposit accounts to mitigate the effect of the decline in the investment and loan yields. We will continue to monitor interest rates, expenses, and income to keep them in appropriate balance.

Additionally, “To continue our expansion of our fee income areas, we added staff to residential lending and the SBA unit. As a result, there was a quarter 2012 to quarter 2013 increase in the compensation area. We anticipate these salaries will pay for themselves as the year progresses.”

At March 31, 2013, 1st Colonial also reported $301.1 million in total assets, $268.1 million in deposits and $181.2 million in loans. These amounts reflect increases of $18.8 million in assets and $20.8 million in deposits from March 31, 2012. Also increasing were investment securities by $13.0 million, loans by $3.0 million and cash and due from banks by $2.0 million.

Net interest income of $2,227,000 for the three months ended March 31, 2013 was $150,000 lower than the net interest income of $2,377,000 for the three months ended March 31, 2012. This was the result of a decrease in our net interest spread of 0.50% from 3.46% for the three months ended March 31, 2012 compared to 2.96% for the three months ended March 31, 2013.

1st Colonial’s provision for loan losses was $300,000 for the three months ended March 31, 2013 compared to a provision for loan losses of $450,000 for the three months ended March 31, 2012. The decrease in the provision was a result of lower loan growth and recoveries on previously charged-off loans.

Non-interest income of $505,000 for the three months ended March 31, 2013 was $106,000, or 26.6%, higher than non-interest income for the three months ended March 31, 2012. This was due primarily to fees generated by the origination and sale of residential mortgage loans.

Non-interest expense for the three months ended March 31, 2013 increased $319,000 or 17.6% from the comparable period in 2012. Salaries and benefits increased by $111,000, cost associated with problem loans increased $98,000, data processing expenses increased $25,000 and losses on real estate owned accounted for $16,000 of the increase.

Highlights as of March 31, 2013 and March 31, 2012, and comparing the three months ended March 31, 2013 and the three months ended March 31, 2012, respectively (all unaudited), include the following (dollars in thousands, except per share data):

              At At $ increase/ % increase/ March 31, 2013 March 31, 2012 (decrease) (decrease)   Total assets $ 301,099 $ 282,317 $ 18,782 6.7 %   Total loans 181,215 178,239 2,976 1.7 %   Investments 102,245 89,223 13,022 14.6 %   Total deposits 268,075 247,257 20,818 8.4 %  

Shareholders' equity

25,438 24,670 768 3.1 %  

Book value per share

$ 7.99 $ 7.75 $ 0.24 3.1 %  

 

For the three months ended $ increase/ % increase/ March 31, 2013 March 31, 2012 (decrease) (decrease)   Net interest income $ 2,227 $ 2,377 $ (150 ) -6.3 %   Provision for loan losses 300 450 (150 ) -33.3 %   Other income 505 399 106 26.6 %   Non-interest expense 2,134 1,815 319 17.6 %   Tax expense 85 128 (43 ) -33.6 %   Net income 213 383 (170 ) -44.4 %   Earnings per share, diluted $ 0.07 $ 0.12 ($ 0.05 ) -41.7 %  

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, 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.