FCOB 1st Colonial Bancorp Inc (PK)

1st Colonial Bancorp, Inc. (OTC Bulletin Board: FCOB), the holding company for 1st Colonial National Bank, today announced that for the year ended December 31, 2005, it had net income of $708,000, representing an $83,000 or 13.3% increase over the prior year. It also reported that its total assets, loans and deposits had increased by 20.7%, 20.3% and 20.7%, respectively, since December 31, 2004. Gerry Banmiller, the President and Chief Executive Officer of 1st Colonial, said "Our 20% growth in 2005 speaks volumes about the continued success of our bank, and we achieved this growth while maintaining sound loan underwriting that has limited our non-performing assets to just 0.02% of our total assets at year end 2004 and 2005. As a leading community bank in our market area, we will continue to focus our efforts on the banking needs of our local businesses and residents. Our efforts have been facilitated by the opening of a full service branch office at 2802 Route 130, Cinnaminson, New Jersey. This office opened on September 6, 2005." During the fourth quarter of 2005, the Company declared a 5% stock dividend to be paid on April 15, 2006 to all shareholders of record on April 1, 2005. This is the fifth consecutive year that the Company has paid a stock dividend. At December 31, 2005, 1st Colonial reported $164.1 million in assets and $93.1 million in loans. These amounts reflect an increase of $28.1 million in assets and $15.7 million in loans from December 31, 2004. Deposits were $134.2 million at December 31, 2005, an increase of $23.0 million or 20.7% from December 31, 2004. 1st Colonial also reported a 15.2% increase in net interest income, to $4.6 million for the year ended December 31, 2005 from $4.0 million for the comparable period ended December 31, 2004. According to Gerry Banmiller, "strong growth in our loan portfolio and an increase in interest rates has resulted in substantial net interest income growth." Although 1st Colonial's net income increased 13.3% for the year ended December 31, 2005 compared to the comparable period in 2004, its diluted earnings per share decreased 3.4% to $0.28 compared to $0.29 in the prior period. This decline was due largely to the increase in the number of shares outstanding during 2005. During the year, warrants issued in 2000 and 2002 were exercised resulting in the issuance of approximately 237,000 shares of 1st Colonial common stock. The earnings per share numbers for both periods have been adjusted to reflect the 5% stock dividend paid on April 15, 2005. For the year ended December 31, 2005, other income increased approximately $122,000 or 40.5% compared to the comparable prior period. This was due primarily to increased account fees of $44,000, income of $75,000 on Bank Owned Life Insurance ("BOLI"), an increase in ATM fees of $13,000, and the receipt of $5,000 as a tentative settlement in a class action lawsuit in which the Bank participated as a member of the Pulse EFT network, as offset by a $14,000 decrease in gains on loans sold. The remaining increase was volume related. For the year ended December 31, 2005, other expense increased approximately $632,000 or 20.3% from the comparable prior period. Most of these increases were growth related. Due to increased staff for our new Cinnaminson office and normal salary adjustments, salaries and benefits increased by $353,000, or 26.3%. Occupancy and equipment expenses increased by approximately $92,000, or 23.2%. Of that amount, $41,000 was directly related to the Cinnaminson office. Advertising expenses increased $104,000, or by 88.7% for the year ended December 31, 2005 as compared to the year ended December 31, 2004, due largely to the promotion of our Cinnaminson office. Data processing increased $36,000 for the year ended December 31, 2005 compared to the comparable prior period due to our growth in accounts. With respect to the warrants exercised during the year ended December 31, 2005, 63,600 shares were issued upon the exercise of warrants issued in 2000 and 173,000 shares were issued upon the exercise of warrants issued in 2002. These exercises resulted in $2,014,000 in additional capital. 38,300 warrants issued in 2000 were not exercised and expired on June 29, 2005. 108,300 warrants issued in 2002 were not exercised and expired on December 16, 2005. Highlights as of December 31, 2005 and December 31, 2004, and a comparison of the year ended December 31, 2005 to the year ended December 31, 2004, respectively (all unaudited), include the following (dollars in thousands, except per share data): -0- *T At At $ % December December increase/ increase/ 31, 2005 31, 2004 (decrease) (decrease) --------- --------- ---------- ---------- Total assets $164,107 $135,973 $ 28,134 20.7% Total loans 93,090 77,390 15,700 20.3% Total deposits 134,201 111,186 23,015 20.7% Shareholders' equity 19,810 17,399 2,411 13.9% For the year ended ----------------------------------------- $ % December December increase/ increase/ 31, 2005 31, 2004 (decrease) (decrease) --------- --------- ---------- ---------- Net interest income $ 4,646 $ 4,033 $ 613 15.2% Provision for loan losses 228 218 10 4.6% Other income 423 301 122 40.5% Other expense 3,740 3,108 632 20.3% Net income 708 625 83 13.3% Earnings per share, diluted $ 0.28 $ 0.29 $ (0.01) -3.4% At and for the year ended ------------------------- December 31, December 31, 2005 2004 ------------ ------------ Key financial ratios Return on average assets 0.45% 0.49% Return on average equity 3.91% 3.94% Net interest margin 3.20% 3.32% Efficiency ratio (1) 73.78% 71.69% Non-interest income/operating revenue 8.34% 6.95% Non-performing assets/assets 0.02% 0.02% Net charge offs/average loans 0.05% 0.02% Allowance for loan losses/loans 1.24% 1.25% (1) Efficiency ratio is total other expense divided by the sum of net interest income and total other income. *T 1st Colonial National Bank is a locally managed community bank headquartered in Collingswood, New Jersey. Through its three branches, the Bank strives to offer highly personalized service combined with extended lobby and drive-through hours, and low fees and charges. The Bank services consumers as well as small- to mid-sized businesses. Services include free personal checking, savings, money market and certificates of deposit accounts. In addition, the bank offers consumer and commercial loans, lines of credit, home equity loans, ATM cards, debit cards, free internet banking and free telephone banking. This Release contains forward-looking statements. These statements are not historical facts and include statements about management's strategies and expectations about programs, products, and opportunities. Such forward-looking statements involve certain risks and uncertainties. Because of such risks and uncertainties, actual results and performance may be materially different from results indicated by these forward-looking statements. Factors that might cause a difference include, but are not limited to, general economic conditions; changes in interest rates, deposit flows, loan demand, real estate values and competition; changes in accounting principles, policies or guidelines; changes in legislation or regulation; and other economic, competitive, governmental, regulatory and technological factors affecting the bank's operations, pricing, products and services. More detailed information concerning 1st Colonial's financial condition and results of operations can be found in the company's 2005 annual report to shareholders, which should be available shortly. If you would like a copy when it becomes available, please send a written request to Robert C. Faix, Corporate Secretary, at 1040 Haddon Avenue, Collingswood, New Jersey 08108. More information on 1st Colonial can be found online at www.1stColonial.com or by telephoning 1st Colonial's main branch at 856-858-1100.