1st Colonial Bancorp, Inc. (OTCQB:FCOB), holding company of 1st
Colonial Community Bank, today reported that its net income for the
three months ended September 30, 2014 was $362,000 ($0.11 per
share) compared to $256,000 ($0.08 per share) for the three months
ended September 30, 2013. Net interest income increased $333,000
resulting from an increase in average interest earning assets of
approximately $60 million for the three months ended September 30,
2014 compared to the three months ended September, 2013.
Non-interest income also increased by $69,000.
Offsetting these increases, our provision for loan losses
increased by $100,000 for the quarter ended September 30, 2014 from
the quarter ended September 30, 2013. Non-interest expense also
increased by $104,000 in the three months ended September 30, 2014
compared to the three months ended September 30, 2013, as salaries
and benefits increased by $161,000 offset by a reduction in other
operating expenses of $57,000. The increase in salaries and
benefits was a result of key additions of personnel in the
residential lending area.
Gerry Banmiller, President and Chief Executive Officer,
commented, “We have diversified our loan portfolio in such a way as
to not rely too much on any particular loan type. We will continue
this diversification which will cause our portfolio to increase,
with a concomitant earnings benefit.”
Net income for the nine months ended September 30, 2014 was
$765,000 ($0.22 per share), compared to $720,000 ($0.21 per share)
for the nine months ended September 30, 2013.
At September 30, 2014, 1st Colonial also reported $352.7 million
in total assets, $321.8 million in deposits and $224.8 million in
loans. These amounts reflect increases of $36.8 million in assets,
$36.2 million in deposits and $36.4 million in loans from September
30, 2013. Investment securities also increased by $19.5 million and
other borrowings decreased by $931,000.
Net interest income of $7,665,000 for the nine months ended
September 30, 2014 was $869,000, or 12.8%, higher than the net
interest income of $6,796,000 for the nine months ended September
30, 2013, resulting from an increase in average interest earning
assets of approximately $43 million for the nine months ended
September 30, 2014 compared to the nine months ended September 30,
2013. 1st Colonial’s provision for loan losses was $825,000 for the
nine months ended September 30, 2014 compared to a provision for
loan losses of $800,000 for the nine months ended September 30,
2013.
Non-interest income of $1.28 million for the nine months ended
September 30, 2014 was $436,000 lower than non-interest income for
the nine months ended September 30, 2013. Fees generated by the
origination and sale of residential mortgage loans and SBA loans
decreased by $298,000 and $266,000 respectively, due to a decrease
in the number of such loans closed in 2014 compared to 2013 and a
decision to retain some of the residential loans in the Bank’s
portfolio. These decreases were partially offset by a gain on the
sale of investment securities of $108,000 for the nine months ended
September 30, 2014 compared to no such gain during the nine months
ended September 30, 2013.
Non-interest expense for the nine months ended September 30,
2014 increased $326,000 or 4.8% from the comparable period in 2013.
Occupancy and equipment expenses increased $196,000 due to the
relocation of our Administration and Loan Offices, and salaries and
benefits increased by $98,000 due to the additions to our
residential lending staff mentioned above.
The company also reported that its shareholders equity of $26.2
million and book value per share of $7.44 at September 30, 2014
increased by 5.6% and 5.4% respectively since September 30, 2013.
This was due to a reduction in the unrealized loss in the
investment portfolio, as interest rates moved lower compared to the
prior year, and additions to capital through accretive earnings of
approximately $1 million since September 30, 2013.
During the quarter, the Bank announced that it is closing its
current branch office located at 2802 Route 130 North, Cinnaminson,
New Jersey. This branch will cease all branch banking operations at
the close of business on Friday, December 19, 2014. The Bank
anticipates that closing the branch will save the Bank
approximately $250,000 per year in operating costs, and
significantly more than that when the building is sold. The
building is owned by the Bank, and is for sale. Until the building
can be sold for a suitable price, the Bank intends to maintain the
building as a loan production office after the branch ceases
branching functions.
Highlights as of September 30, 2014 and September 30, 2013, and
comparing the three and nine months ended September 30, 2014 and
the three and nine months ended September 30, 2013, respectively,
include the following (dollars in thousands, except per share
data):
At
At
$ increase/ % increase/
September 30,
2014
September 30,
2013
decrease
decrease
Total assets $352,657 $315,865 $36,792 11.6% Total
loans 224,801 188,408 36,393 19.3% Investments 113,159
99,442 13,717 13.8% Total deposits 321,845 285,634 36,211
12.7% Shareholders' equity 26,171 24,792 1,379 5.6%
Book Value per share (1) $7.44 $7.06 $0.38 5.4%
For the nine months ended
$ increase/ % increase/
September 30,
2014
September 30,
2013
decrease
decrease
Net interest income $7,665 $6,796 $869 12.8%
Provision for loan losses 825 800 25 3.1% Other income 1,277
1,713 (436) -25.5% Non interest expense 7,048 6,722 326 4.8%
Tax expense 304 267 37 13.9% Net income 765 720 45
6.3% Earnings per share (1) $0.22 $0.21 $0.01 6.0%
For the three months
ended
$ increase/ % increase/
September 30,
2014
September 30,
2013
decrease
decrease
Net interest income $2,671 $2,338 $333 14.2%
Provision for loan losses 300 200 100 50.0% Other income 490
421 69 16.4% Non interest expense 2,323 2,219 104 4.7%
Tax expense 176 84 92 109.5% Net income 362 256 106
41.4% Earnings per share (1) $0.11 $0.08 $0.03 43.2%
(1) Adjusted to give effect to the 5% stock dividend distributed
to shareholders on April 15, 2014.
1st Colonial Community 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; unanticipated loan losses, inability
to close loans in our pipeline, lack of liquidity; varying and
unanticipated costs of collection with respect to nonperforming
loans; an inability to dispose of its other real estate owned;
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, customers 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.
1st Colonial Bancorp, Inc.Gerry Banmiller, 856-858-8402
1st Colonial Bancorp (PK) (USOTC:FCOB)
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