1st Colonial Bancorp Reports Year-to-Date Profit of $664,000

1st Colonial Bancorp, Inc. (OTCBB:FCOB), holding company of 1st Colonial National Bank, today reported that its net income for the nine months ended September 30, 2010 was $664,000 ($0.21 per share), compared to $449,000 ($0.14 per share) for the nine months ended September 30, 2009.

Gerry Banmiller, President and Chief Executive Officer, commented that “the increase in income and the growth in assets over the prior year period speaks to the banking public’s recognition of 1st Colonial’s superb delivery systems. These results did not come without diligence and hard work by the board, its officers and employees.”

At September 30, 2010, 1st Colonial also reported total assets of $277.4 million compared to $257.4 million at September 30, 2009, and that total loans increased 10.4% since September 30, 2009 to $177.2 million, and deposits were $243.4 million, an increase of 10.1% from September 30, 2009.

1st Colonial’s net interest income of $6.3 million for the nine month period ended September 30, 2010 was 19.8% higher than the $5.2 million in net interest income for the comparable prior year period. This was due to an increase in net interest spread of 0.25% to 3.14% for the nine month period ended September 30, 2010 compared to 2.89% for the nine month period ended September 30, 2009. Non-interest income for the nine month period ended September 30, 2010 was $1,070,000, compared to $902,000 for the nine months ended September 30, 2009. Fees generated by the origination and sale of residential mortgage loans increased by $75,000 and income from bank owned life insurance increased by $32,000. Non-interest expense also increased $467,000 or 9.6% from the comparable period in 2009. Salaries and benefits accounted for $248,000 of the increase and advertising expense increased by $86,000.

1st Colonial’s provision for loan losses increased by $503,000 to $1.3 million for the nine months ended September 30, 2010 compared to the $807,000 provision for the nine months ended September 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 nine months ended September 30, 2010.

The company also reported that its net income for the three months ended September 30, 2010 was $291,000, an increase of $182,000, or 167.0%, from the comparable period ended September 30, 2009. Net interest income increased $313,000. This was due to an increase in net interest spread of 0.19% to 3.08% for the three month period ended September 30, 2010 compared to 2.89% for the three month period ended September 30, 2009. Non-interest income increased $111,000. Included in such non-interest income were fees generated by the origination and sale of residential mortgage loans, which increased by $76,000 in the three months ended September 30, 2010 compared to the same period in 2009. Non-interest expense increased $163,000. Salaries and benefits accounted for $93,000 of the increase and advertising expense increased by $30,000. Income tax expense increased by $70,000 compared to the three months ended September 30, 2009. Additionally, diluted earnings per share increased to $0.09 for the quarter ended September 30, 2010 from $0.03 for the quarter ended September 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 September 30, 2010 and September 30, 2009, and comparing the three and nine months ended September 30, 2010 and the three and nine months ended September 30, 2009, respectively (all unaudited), include the following (dollars in thousands, except per share data):

    
      
        
        
        
           
        
        
          at
        
        
           
        
        
          at
        
        
           
        
        
          

$

increase/

%

increase/

September

30, 2010

September

30, 2009

decrease

decrease

        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total assets
        
        
        
        
          $277,404
        
        
        
        
          $257,371
        
        
        
        
          $20,033
        
        
        
        
          7.8%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total loans
        
        
        
        
          177,160
        
        
        
        
          160,467
        
        
        
        
          16,693
        
        
        
        
          10.4%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total deposits
        
        
        
        
          243,370
        
        
        
        
          221,107
        
        
        
        
          22,263
        
        
        
        
          10.1%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Shareholders' equity
        
        
        
        
          23,973
        
        
        
        
          22,984
        
        
        
        
          989
        
        
        
        
          4.3%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          

For the nine months ended

$

increase/

%

increase/

September

30, 2010

September

30, 2009

decrease

decrease

        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net interest income
        
        
        
        
          $6,277
        
        
        
        
          $5,240
        
        
        
        
          $1,037
        
        
        
        
          19.8%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Provision for loan losses
        
        
        
        
          1,310
        
        
        
        
          807
        
        
        
        
          503
        
        
        
        
          62.3%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Other income
        
        
        
        
          1,070
        
        
        
        
          902
        
        
        
        
          168
        
        
        
        
          18.6%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Non interest expense
        
        
        
        
          5,341
        
        
        
        
          4,874
        
        
        
        
          467
        
        
        
        
          9.6%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net gain on securities/real estate
        
        
        
        
          183
        
        
        
        
          0
        
        
        
        
          183
        
        
        
        
          N/A
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Tax expense
        
        
        
        
          215
        
        
        
        
          12
        
        
        
        
          203
        
        
        
        
          1691.7%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net income
        
        
        
        
          664
        
        
        
        
          449
        
        
        
        
          215
        
        
        
        
          47.9%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Earnings per share (diluted)
        
        
        
        
          $0.21
        
        
        
        
          $0.14
        
        
        
        
          $0.07
        
        
        
        
          50.0%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          

For the three months ended

$

increase/

%

increase/

September

30, 2010

September

30, 2009

decrease

decrease

        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net interest income
        
        
        
        
          $2,135
        
        
        
        
          $1,822
        
        
        
        
          $313
        
        
        
        
          17.2%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Provision for loan losses
        
        
        
        
          315
        
        
        
        
          306
        
        
        
        
          9
        
        
        
        
          2.9%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Other income
        
        
        
        
          422
        
        
        
        
          311
        
        
        
        
          111
        
        
        
        
          35.7%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Non interest expense
        
        
        
        
          1,859
        
        
        
        
          1,696
        
        
        
        
          163
        
        
        
        
          9.6%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Tax expense
        
        
        
        
          92
        
        
        
        
          22
        
        
        
        
          70
        
        
        
        
          318.2%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net income
        
        
        
        
          291
        
        
        
        
          109
        
        
        
        
          182
        
        
        
        
          167.0%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Earnings per share (diluted)
        
        
        
        
          $0.09
        
        
        
        
          $0.03
        
        
        
        
          $0.06
        
        
        
        
          200.0%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
    
    

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 [phone] 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.