1st Colonial Bancorp Reports Year to Date Profit of $1,039,000 and a Quarterly Profit of $417,000

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, 2012 was $1,039,000 ($0.33 per share), compared to $573,000 ($0.18 per share) for the nine months ended September 30, 2011.

Gerry Banmiller, President and Chief Executive Officer, commented, “Current languid economic climate dictates a measured growth plan. We continue to follow this conservative philosophy yet have, as you’ve just read, dramatically increased our profits from September 30, 2011 to September 30, 2012.”

At September 30, 2012, 1st Colonial also reported $280.9 million in total assets, $247.1 million in deposits and $183.9 million in loans. These amounts reflect a decrease in total assets of $559,000, but increases of $1.4 million in deposits and $7.0 million in loans, from September 30, 2011. Loans available for sale accounted for $4.8 million of the $7.0 million increase in loans. The decrease in assets was a result of decreases in cash and due from banks of $10.5 million, most of which was redeployed into loans and investments. Investments increased by $3.0 million. The increase of $1.4 million in deposits was offset by a decrease in other borrowing of $3.4 million.

Net interest income of $7,015,000 for the nine months ended September 30, 2012 was $347,000, or 5.2%, higher than the net interest income of $6,668,000 for the nine months ended September 30, 2011. This was due primarily to an increase of 0.17% in net interest spread to 3.44% for the nine months ended September 30, 2012 compared to 3.27% for the nine months ended September 30, 2011.

1st Colonial’s provision for loan losses was $1,375,000 for the nine months ended September 30, 2012 compared to a provision for loan losses of $1,525,000 for the nine months ended September 30, 2011.

Non-interest income of $1,806,000 for the nine months ended September 30, 2012 was $626,000, or 53.1%, higher than non-interest income for the nine months ended September 30, 2011. Fees generated by the origination and sale of residential mortgage loans and SBA loans increased by $454,000 and $144,000 respectively. Gains on investment securities sold were $30,000 for the nine months ended September 30, 2012 and there was no gain or loss from the sale of investments during the nine months ended September 30, 2011.

Non-interest expense for the nine months ended September 30, 2012 increased $328,000 or 5.8% from the comparable period in 2011. Losses on real estate owned accounted for $176,000 of the increase. Salaries and benefits increased by $149,000 and legal collection expenses increased by $69,000. These increases were partially offset by a decrease in FDIC Assessments of $36,000.

For the nine months ended September 30, 2012, 1st Colonial had income tax expenses of $379,000 compared to income tax expenses of $50,000 for the nine months ended September 30, 2011 representing an increase of $329,000.

The Company also reported that its net income for the three months ended September 30, 2012 was $417,000, an increase of $189,000 from the comparable period ended September 30, 2011. Additionally, diluted earnings per share increased to $0.13 for the quarter ended September 30, 2012 from $0.07 for the quarter ended September 30, 2011. Net interest income of $2,291,000 was relatively unchanged from the prior year’s comparable period of $2,287,000, non-interest income increased by $424,000 primarily from fees generated by the origination and sale of residential mortgage loans and SBA loans. Non-interest expense increased by $193,000 due to increased commission expenses related to loan volume in our residential lending department and the addition of a full time Compliance Officer. In addition, our provision for loan losses decreased by $100,000 for the quarter ended September 30, 2012 from the quarter ended September 30, 2011.

Highlights as of September 30, 2012 and September 30, 2011, and comparing the three and nine months ended September 30, 2012 and the three and nine months ended September 30, 2011, respectively (all unaudited), include the following (dollars in thousands, except per share data):

    
      
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
      
      
        
        
        
        
        
          At
        
        
        
        
          At
        
        
        
        
          $ increase/
        
        
        
        
          % increase/
        
      
      
        
        
        
        
        
          

September 30, 2012

September 30, 2011

(decrease)

(decrease)

        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total assets
        
        
        
        
          $
        
        
          280,895
        
        
        
        
          $
        
        
          281,454
        
        
        
        
          $
        
        
          (559
        
        
          )
        
        
        
        
          -0.2
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total loans
        
        
        
        
        
        
          183,893
        
        
        
        
        
        
          176,845
        
        
        
        
        
        
          7,048
        
        
        
        
        
        
          4.0
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Investments
        
        
        
        
        
        
          81,597
        
        
        
        
        
        
          78,640
        
        
        
        
        
        
          2,957
        
        
        
        
        
        
          3.8
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total deposits
        
        
        
        
        
        
          247,096
        
        
        
        
        
        
          245,639
        
        
        
        
        
        
          1,457
        
        
        
        
        
        
          0.6
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          

Shareholders' equity

        
        
        
        
        
        
          25,438
        
        
        
        
        
        
          

24,124

        
        
        
        
        
        
          1,314
        
        
        
        
        
        
          5.4
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          

Book value per share

        
        
        
        
        
        
          7.99
        
        
        
        
        
        
          7.58
        
        
        
        
        
        
          0.41
        
        
        
        
        
        
          5.4
        
        
          %
        
      
      
        
        
        
        
        
           
        
      
      
        
          

 

        
        
        
        
          For the nine months ended
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
          $ increase/
        
        
        
        
          % increase/
        
      
      
        
        
        
        
        
          

September 30, 2012

September 30, 2011

(decrease)

(decrease)

        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net interest income
        
        
        
        
          $
        
        
          7,015
        
        
        
        
          $
        
        
          6,668
        
        
        
        
          $
        
        
          347
        
        
        
        
        
        
          5.2
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Provision for loan losses
        
        
        
        
        
        
          1,375
        
        
        
        
        
        
          1,525
        
        
        
        
        
        
          (150
        
        
          )
        
        
        
        
          -9.8
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Other income
        
        
        
        
        
        
          1,806
        
        
        
        
        
        
          1,180
        
        
        
        
        
        
          626
        
        
        
        
        
        
          53.1
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Non-interest expense
        
        
        
        
        
        
          6,028
        
        
        
        
        
        
          5,700
        
        
        
        
        
        
          328
        
        
        
        
        
        
          5.8
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Tax expense
        
        
        
        
        
        
          379
        
        
        
        
        
        
          50
        
        
        
        
        
        
          329
        
        
        
        
        
        
          658.0
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net income
        
        
        
        
        
        
          1,039
        
        
        
        
        
        
          573
        
        
        
        
        
        
          466
        
        
        
        
        
        
          81.3
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Earnings per share, diluted
        
        
        
        
          $
        
        
          0.33
        
        
        
        
          $
        
        
          0.18
        
        
        
        
          $
        
        
          0.15
        
        
        
        
        
        
          83.3
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          For the three months ended
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
          $ increase/
        
        
        
        
          % increase/
        
      
      
        
        
        
        
        
          

September 30, 2012

September 30, 2011

(decrease)

(decrease)

        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net interest income
        
        
        
        
          $
        
        
          2,291
        
        
        
        
          $
        
        
          2,287
        
        
        
        
          $
        
        
          4
        
        
        
        
        
        
          0.2
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Provision for loan losses
        
        
        
        
        
        
          525
        
        
        
        
        
        
          625
        
        
        
        
        
        
          (100
        
        
          )
        
        
        
        
          -16.0
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Other income
        
        
        
        
        
        
          904
        
        
        
        
        
        
          480
        
        
        
        
        
        
          424
        
        
        
        
        
        
          88.3
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Non-interest expense
        
        
        
        
        
        
          2,080
        
        
        
        
        
        
          1,887
        
        
        
        
        
        
          193
        
        
        
        
        
        
          10.2
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Tax expense
        
        
        
        
        
        
          173
        
        
        
        
        
        
          27
        
        
        
        
        
        
          146
        
        
        
        
        
        
          540.7
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net income
        
        
        
        
        
        
          417
        
        
        
        
        
        
          228
        
        
        
        
        
        
          189
        
        
        
        
        
        
          82.9
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Earnings per share, diluted
        
        
        
        
          $
        
        
          0.13
        
        
        
        
          $
        
        
          0.07
        
        
        
        
          $
        
        
          0.06
        
        
        
        
        
        
          85.7
        
        
          %
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
    
    

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; 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.