1st Colonial Bancorp, Inc. (OTCBB:FCOB), holding company of 1st
Colonial National Bank, today reported that its net income for the
year ended December 31, 2009 was $487,000 ($0.15 per share),
compared to $649,000 ($0.21 per share) for the year ended December
31, 2008.
Gerry Banmiller, President and Chief Executive Officer,
commented that “although the net earnings for 2009 are lower than
the prior year, they must be considered in the context of the
challenges that are currently impacting the banking industry in
this troubled economy. Despite a reduction of net income from
$649,000 in 2008 to $487,000 in 2009, our core earnings increased
in 2009, as we had a one-time net gain from insurance proceeds of
$92,000 in 2008, a special FDIC assessment of $108,000 in 2009 and
an increase in the provision for loan loses of $520,000 in 2009.
Absent these items, our income before taxes and securities
gains/losses increased from $1.3 million in 2008 to $2.0 million in
2009. We achieved this increase in our core earnings despite the
increased expenses that are concomitant with a troubled economy,
such as increased FDIC insurance premiums and legal expenses
inherent with enforcing loan contracts. We are pleased with our
deposit and loan growth, which is a function of the individual
efforts of our officers as well as increased advertising in
newspaper and radio.”
At December 31, 2009, 1st Colonial also reported total assets of
$276.6 million compared to $232.8 million at December 31, 2008,
total loans increased 16.4% to $170.5 million,
and deposits were $232.7 million, an increase of 15.9% from
December 31, 2008.
1st Colonial’s provision for loan losses increased by $520,000
to $1,477,000 for the year ended December 31, 2009 compared to the
$957,000 provision for the year ended December 31, 2008.
Additionally, a loss on investment securities of $68,000 for the
year ended December 31, 2009 compared to a gain of $33,000 for the
year ended December 31, 2008 was caused by an
other-than-temporary-impairment write down of $72,000.
Net interest income of $7,166,000 for the year ended December
31, 2009 was $951,000, or 15.3%, higher than the net interest
income of $6,215,000 for the year ended December 31, 2008.
Non-interest income for 2009 increased $423,000 or 51.3% from 2008
due to an increase in income from our Residential Lending Division.
Fees generated by origination and sale of residential mortgage
loans increased by $581,000 for the year ended December 31, 2009
compared to the prior year. Non-interest income for the year ended
December 31, 2008 was aided by the one time life insurance proceeds
benefit of $232,000.
Non-interest expense also increased $902,000 or 16.1% from the
comparable period in 2008. Salaries and benefits accounted for
$446,000 of the increase. The addition of the residential lending
department, additional staff, and general salary and benefit
increases amounted to $586,000 of the increase, which was offset by
a $140,000 contractual compensation payout in 2008 related to the
life insurance proceeds mentioned above. FDIC assessments increased
by $250,000 in 2009; occupancy and equipment expense increased by
$64,000 due to our acquiring additional space in our administrative
headquarters to accommodate our growth; and professional fees
increased by $80,000 related to legal expenses inherent with
enforcing loan contracts.
Highlights as of December 31, 2009 and December 31, 2008, and
comparing the year ended December 31, 2009 and the year ended
December 31, 2008, respectively, include the following (dollars in
thousands, except per share data):
At At $ increase/ % increase/
December 31, 2009 December 31, 2008
(decrease) (decrease) (Unaudited) Total
assets $ 276,645 $ 232,818 $ 43,827 18.8 % Total loans
170,509 146,468 24,041 16.4 % Total deposits 232,749 200,882
31,867 15.9 % Shareholders' equity 22,828 21,791 1,037 4.8 %
For the year ended $ increase/ % increase/
December 31, 2009 December 31, 2008
(decrease) (decrease) (Unaudited) Net
interest income $ 7,166 $ 6,215 $ 951 15.3 % Provision for
loan losses 1,477 957 520 54.3 % Other income 1,247 824 423
51.3 % Non-interest expense 6,503 5,601 902 16.1 %
Securities gain / (loss) (68 ) 33 (101 ) (306.1 %) Tax
benefit (expense) 122 135 (13 ) (9.6 %) Net income 487 649
(162 ) (25.0 %) Earnings per share, diluted $ 0.15 $ 0.21 $
(0.06 ) (28.6 %)
1st Colonial National Bank, the subsidiary of 1st Colonial
Bancorp, provides a range of business and consumer financial
services, placing emphasis on customer service 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; 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.
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