1st Colonial Bancorp Reports a Year-to-Date Profit of $340,000

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, 2009 was $340,000 ($0.12 per share), compared to $511,000 ($0.17 per share) for the six months ended June 30, 2008. Gerry Banmiller, the President and Chief Executive Officer of 1st Colonial announced: “The lower YTD earnings for these two periods were driven by two factors; an increased provision for loan losses, and the FDIC’s special assessment imposed on all banks. The addition to the loan loss provision, as well as the special assessment, are each a function of the overall challenging times most banks are experiencing. The positive news is that we are generating sufficient core earnings to absorb these required additional charges.

At June 30, 2009, 1st Colonial also reported total assets of $239.8 million compared to $228.1 million at June 30, 2008; total loans were $156.3 million, an increase of $17.7 million from June 30, 2008. Deposits were $203.6 million, an increase of $4.5 million from June 30, 2008

1st Colonial’s net interest income of $3.4 million was $374,000, or 12.2%, higher than the six month period ended June 30, 2008. The provision for loan losses was $501,000 compared to $83,000 for the six month period ended June 30, 2008. Non-interest income increased 98.0% or $287,000 from the comparable period in 2008. This increase was primarily due to our new residential lending department. Non-interest expense also increased $568,000 or 21.8% from the comparable period in 2008. Salaries and benefits accounted for $311,000 of the increase due to the addition of our residential lending department and general salary and benefit increases. FDIC assessments increased by $136,000; occupancy and equipment expense increased by $46,000 due to our acquiring additional space in our administrative headquarters to accommodate our growth; and professional fees increased by $25,000. Net income was positively effected by a decrease of $154,000 in tax expense for the six month period ended June 30, 2009 compared to the six month period ended June 30, 2008.

The company also reported that its net income for the three months ended June 30, 2009 was $115,000, a decrease of $163,000 from the comparable period ended June 30, 2008, as the $297,000 increase in the loan loss reserve provision and the $110,000 special assessment imposed by the FDIC was partially offset by $80,000 of non-interest income contributed by our Residential Lending Division, and a decrease of $118,000 in tax expense as a result of our position in tax free earning assets. Additionally, diluted earnings per share decreased from $0.09 for the quarter ended June 30, 2008 to $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, 2009 and April 15, 2008.

Highlights as of June 30, 2009 and June 30, 2008, and comparing the six and three months ended June 30, 2009 and the six and three months ended June 30, 2008, respectively (all unaudited), include the following (dollars in thousands, except per share data):

    
      
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
        
      
      
        
        
        
        
        
          At
        
        
        
        
          At
        
        
        
        
          $ increase/
        
        
        
        
          % increase/
        
        
        
      
      
        
        
        
        
        
          

June 30, 2009

June 30, 2008

(decrease)

(decrease)

        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total assets
        
        
        
        
          $
        
        
          239,812
        
        
        
        
          $
        
        
          228,057
        
        
        
        
        
        
          $
        
        
          11,755
        
        
        
        
        
        
          5.2
        
        
          %
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total loans
        
        
        
        
        
        
          156,284
        
        
        
        
        
        
          138,536
        
        
        
        
        
        
        
        
          17,748
        
        
        
        
        
        
          12.8
        
        
          %
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total deposits
        
        
        
        
        
        
          203,551
        
        
        
        
        
        
          199,069
        
        
        
        
        
        
        
        
          4,482
        
        
        
        
        
        
          2.3
        
        
          %
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Shareholders' equity
        
        
        
        
        
        
          22,425
        
        
        
        
        
        
          21,740
        
        
        
        
        
        
        
        
          685
        
        
        
        
        
        
          3.2
        
        
          %
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          For the six months ended
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
          $ increase/
        
        
        
        
          % increase/
        
        
        
      
      
        
        
        
        
        
          

June 30, 2009

June 30, 2008

(decrease)

(decrease)

        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net interest income
        
        
        
        
          $
        
        
          3,428
        
        
        
        
          $
        
        
          3,054
        
        
        
        
        
        
          $
        
        
          374
        
        
        
        
        
        
          12.2
        
        
          %
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Provision for loan losses
        
        
        
        
        
        
          501
        
        
        
        
        
        
          83
        
        
        
        
        
        
        
        
          418
        
        
        
        
        
        
          503.6
        
        
          %
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Other income
        
        
        
        
        
        
          580
        
        
        
        
        
        
          293
        
        
        
        
        
        
        
        
          287
        
        
        
        
        
        
          98.0
        
        
          %
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Non-interest expense
        
        
        
        
        
        
          3,177
        
        
        
        
        
        
          2,609
        
        
        
        
        
        
        
        
          568
        
        
        
        
        
        
          21.8
        
        
          %
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Tax benefit (expense)
        
        
        
        
        
        
          10
        
        
        
        
        
        
          (144
        
        
          )
        
        
        
        
        
        
          (154
        
        
          )
        
        
        
        
          -106.9
        
        
          %
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net income
        
        
        
        
        
        
          340
        
        
        
        
        
        
          511
        
        
        
        
        
        
        
        
          (171
        
        
          )
        
        
        
        
          -33.5
        
        
          %
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Earnings per share, diluted
        
        
        
        
          $
        
        
          0.12
        
        
        
        
          $
        
        
          0.17
        
        
        
        
        
        
          $
        
        
          (0.05
        
        
          )
        
        
        
        
          -29.4
        
        
          %
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          For the three months ended
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
          $ increase/
        
        
        
        
          % increase/
        
        
        
      
      
        
        
        
        
        
          

June 30, 2009

June 30, 2008

(decrease)

(decrease)

        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net interest income
        
        
        
        
          $
        
        
          1,781
        
        
        
        
          $
        
        
          1,571
        
        
        
        
        
        
          $
        
        
          210
        
        
        
        
        
        
          13.4
        
        
          %
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Provision for loan losses
        
        
        
        
        
        
          350
        
        
        
        
        
        
          53
        
        
        
        
        
        
        
        
          297
        
        
        
        
        
        
          560.4
        
        
          %
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Other income
        
        
        
        
        
        
          374
        
        
        
        
        
        
          147
        
        
        
        
        
        
        
        
          227
        
        
        
        
        
        
          154.4
        
        
          %
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Non-interest expense
        
        
        
        
        
        
          1,742
        
        
        
        
        
        
          1,321
        
        
        
        
        
        
        
        
          421
        
        
        
        
        
        
          31.9
        
        
          %
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Tax benefit (expense)
        
        
        
        
        
        
          52
        
        
        
        
        
        
          (66
        
        
          )
        
        
        
        
        
        
          (118
        
        
          )
        
        
        
        
          -178.8
        
        
          %
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net income
        
        
        
        
        
        
          115
        
        
        
        
        
        
          278
        
        
        
        
        
        
        
        
          (163
        
        
          )
        
        
        
        
          -58.6
        
        
          %
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Earnings per share, diluted
        
        
        
        
          $
        
        
          0.04
        
        
        
        
          $
        
        
          0.09
        
        
        
        
        
        
          $
        
        
          (0.05
        
        
          )
        
        
        
        
          -55.6
        
        
          %
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
    
    

1st Colonial National Bank, the subsidiary of 1st Colonial Bancorp, provides a range of business and consumer financial services, placing emphasis on customer service, access to decision makers and quick turnaround on credit applications. 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, 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.