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1st Colonial Bancorp, Inc. Reports Third Quarter 2019 Net Income

October 30, 2019 GMT

COLLINGSWOOD, N.J.--(BUSINESS WIRE)--Oct 30, 2019--

1st Colonial Bancorp, Inc. (FCOB), holding company of 1 st Colonial Community Bank, today reported net income of $725 thousand, or $0.15 per diluted share, for the three months ended September 30, 2019 compared to net income of $1.2 million, or $0.25 per diluted share, for the three months ended September 30, 2018. For the nine months ended September 30, 2019, net income was $2.7 million, or $0.55 per diluted share, compared to $3.6 million, or $0.76 per diluted share for the same period in 2018. The 2018 earnings per diluted share were adjusted to give effect to the 5% stock dividend distributed to shareholders on April 15, 2019.

Gerry Banmiller, President and Chief Executive Officer, commented, “While the bank continues to recognize a profit, I am dissatisfied with our current results. Expenses associated with our high level of non-performing assets have had a detrimental impact on our financial performance. We continue to proactively work through these impaired credits while we also focus on developing new business relationships. To that end, we recently unveiled a completely redesigned website which vastly improves usability and functionality.”

Highlights for the three and nine months ended September 30, 2019, included:

Balance Sheet Trends:

Income Statement and Other Highlights:

Highlights as of September 30, 2019 and 2018, and a comparison of the three and nine months ended September 30, 2019 to the three and nine months ended September 30, 2018 include the following:

1 st COLONIAL BANCORP, INC.

CONSOLIDATED INCOME STATEMENTS

(Unaudited, dollars in thousands, except per share data)

 

For the three months

For the nine months

ended September 30,

ended September 30,

2019

2018

2019

2018

Interest income

$

6,018

$

5,848

$

18,009

$

16,575

Interest expense

 

1,403

 

1,076

 

4,030

 

2,858

Net Interest Income

 

4,615

 

4,772

 

13,979

 

13,717

Provision for loan losses

 

827

 

499

 

1,806

 

1,088

Net interest income after provision for loan losses

 

3,788

 

4,273

 

12,173

 

12,629

Non-interest income

 

754

 

671

 

2,120

 

2,345

Non-interest expense

 

3,582

 

3,316

 

10,768

 

10,121

Income before taxes

 

960

 

1,628

 

3,525

 

4,853

Income tax expense

 

235

 

424

 

870

 

1,223

Net Income

$

725

$

1,204

$

2,655

$

3,630

Earnings Per Share – Basic (1)

$

0.16

$

0.26

$

0.57

$

0.79

Earnings Per Share – Diluted (1)

$

0.15

$

0.25

$

0.55

$

0.76

SELECTED PERFORMANCE RATIOS:

 

For the three months

 

For the nine months

ended September 30,

 

ended September 30,

2019

 

2018

 

2019

 

2018

Return on Average Assets

 

 

0.52%

 

 

0.86%

 

 

0.65%

 

 

0.89%

Return on Average Equity

 

 

6.14%

 

 

11.57%

 

 

7.78%

 

 

12.10%

Book value per share (1)

 

$

10.09

 

$

9.04

 

$

10.09

 

$

9.04

 

At September 30, 2019

At December 31, 2018

Capital ratios:

Tier 1 Leverage

8.46%

7.98%

Total Risk Based Capital

14.43%

13.42%

Common Equity Tier 1

13.17%

12.16%

(1) Adjusted to give effect to the 5% stock dividend distributed to shareholders on April 15 2019.

 

1 st COLONIAL BANCORP, INC.

CONSOLIDATED BALANCE SHEETS

 

(Unaudited, in thousands)

At September 30, 2019

At December 31, 2018

Cash and cash equivalents

$

19,431

$

12,114

Total investments

 

93,674

 

115,093

Mortgage loans held for sale

 

7,700

 

2,989

Total loans

 

414,607

 

404,535

Less Allowance for loan losses

 

(5,470)

 

(5,627)

Loans and leases, net

 

404,732

 

398,908

Bank owned life insurance

 

8,543

 

8,368

Premises and equipment, net

 

709

 

798

Other real estate owned, net

 

657

 

-

Accrued interest receivable

 

1,740

 

1,737

Other assets

 

3,686

 

3,931

Total Assets

$

545,277

$

543,938

 

Total deposits

$

493,125

$

490,096

Other borrowings

 

3,174

 

8,157

Other liabilities

 

1,773

 

1,989

Total Shareholders’ Equity

 

47,205

 

43,696

Total Liabilities and Equity

$

545,277

$

543,938

1 st COLONIAL BANCORP, INC.

NET INTEREST INCOME AND MARGIN TABLES

(Unaudited, in thousands, except percentages)

 

For the three months ended

 

For the three months ended

September 30, 2019

 

September 30, 2018

Average

Balance

 

Interest

 

Yield

 

Average

Balance

 

Interest

 

Yield

Cash and cash equivalents

 

$

16,520

 

$

70

 

1.68%

 

$

28,756

 

$

135

 

1.86%

Investment securities

 

 

99,296

 

 

521

 

2.08%

 

 

109,927

 

 

527

 

1.90%

Mortgage loans held for sale

 

 

8,680

 

 

74

 

3.38%

 

 

6,034

 

 

53

 

3.48%

Loans

 

 

407,854

 

 

5,353

 

5.21%

 

 

397,850

 

 

5,133

 

5.12%

Total interest-earning assets

 

 

532,350

 

 

6,018

 

4.48%

 

 

542,567

 

 

5,848

 

4.28%

Non-interest earning assets

 

 

15,453

 

 

 

 

 

 

12,595

 

 

 

 

Total average assets

 

$

547,803

 

 

 

 

 

$

555,162

 

 

 

 

 

Interest-bearing deposits

 

 

 

 

 

 

 

 

 

 

 

 

Checking accounts

 

$

202,949

 

$

411

 

0.80%

 

$

225,288

 

$

312

 

0.55%

Money markets and Savings

 

 

60,825

 

 

68

 

0.44%

 

 

74,400

 

 

85

 

0.45%

Certificates of deposit

 

 

169,084

 

 

912

 

2.14%

 

 

147,067

 

 

675

 

1.82%

Total interest-bearing deposits

 

 

432,858

 

 

1,391

 

1.27%

 

 

446,755

 

 

1,072

 

0.95%

Borrowings

 

 

3,824

 

 

12

 

1.24%

 

 

3,166

 

 

4

 

0.50%

Total interest-bearing liabilities

 

 

436,682

 

 

1,403

 

1.27%

 

 

449,921

 

 

1,076

 

0.95%

Non-interest bearing deposits

 

 

62,185

 

 

 

 

 

 

62,465

 

 

 

 

Other liabilities

 

 

2,133

 

 

 

 

 

 

1,474

 

 

 

 

Shareholders' equity

 

 

46,803

 

 

 

 

 

 

41,302

 

 

 

 

Total average liabilities and equity

 

$

547,803

 

 

 

 

 

$

555,162

 

 

 

 

Net interest income

 

 

 

$

4,615

 

 

 

 

 

$

4,772

 

 

Net interest margin

 

 

 

 

 

3.44%

 

 

 

 

 

3.49%

Net interest spread

 

 

 

 

 

3.21%

 

 

 

 

 

3.33%

 

 

 

 

 

 

 

 

 

 

 

 

For the nine months ended

 

For the nine months ended

September 30, 2019

 

September 30, 2018

Average

Balance

 

Interest

 

Yield

 

Average

Balance

 

Interest

 

Yield

Cash and cash equivalents

$

14,048

 

$

190

 

1.81%

 

$

22,719

 

$

261

 

1.54%

Investment securities

 

107,896

 

 

1,722

 

2.13%

 

 

112,634

 

 

1,538

 

1.83%

Mortgage loans held for sale

 

 

6,525

 

 

143

 

2.93%

 

 

6,703

 

 

169

 

3.37%

Loans

 

 

406,701

 

 

15,954

 

5.24%

 

 

388,702

 

 

14,607

 

5.02%

Total interest-earning assets

 

 

535,170

 

 

18,009

 

4.50%

 

 

530,758

 

 

16,575

 

4.18%

Non-interest earning assets

 

14,056

 

 

 

 

 

 

12,552

 

 

 

 

Total average assets

$

549,226

 

 

 

 

 

$

543,310

 

 

 

 

 

Interest-bearing deposits

 

 

 

 

 

 

 

 

 

 

 

Checking accounts

$

215,132

 

$

1,239

 

0.77%

 

$

234,267

 

$

792

 

0.45%

Money markets and Savings

 

63,905

 

 

212

 

0.44%

 

 

58,518

 

 

194

 

0.44%

Certificates of deposit

 

156,110

 

 

2,526

 

2.16%

 

 

143,072

 

 

1,859

 

1.74%

Total interest-bearing deposits

 

435,147

 

 

3,977

 

1.22%

 

 

435,857

 

 

2,845

 

0.87%

Borrowings

 

4,847

 

 

53

 

1.46%

 

 

3,256

 

 

13

 

0.54%

Total interest-bearing liabilities

 

439,994

 

 

4,030

 

1.22%

 

 

439,113

 

 

2,858

 

0.87%

Non-interest bearing deposits

 

61,762

 

 

 

 

 

 

62,633

 

 

 

 

Other liabilities

 

1,866

 

 

 

 

 

 

1,468

 

 

 

 

Shareholders' equity

 

45,604

 

 

 

 

 

 

40,095

 

 

 

 

Total average liabilities and equity

$

549,226

 

 

 

 

 

$

543,310

 

 

 

 

Net interest income

 

 

$

13,979

 

 

 

 

 

$

13,717

 

 

Net interest margin

 

 

 

 

3.49%

 

 

 

 

 

3.46%

Net interest spread

 

 

 

 

3.27%

 

 

 

 

 

3.31%

 

1st Colonial Community Bank, the subsidiary of 1 st 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 a branch in the New Jersey community of Westville and administrative offices in Cherry Hill, New Jersey. 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, changes in or additions to management and/or key employees; lack of liquidity; varying and unanticipated costs of collection with respect to nonperforming loans; an inability to dispose of 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 or theft by employees, customers or outsiders, and the risk of interruptions in and breaches in security of our information systems; 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.

View source version on businesswire.com:https://www.businesswire.com/news/home/20191030006136/en/

Gerry Banmiller at 856‑858‑8402

KEYWORD: NEW JERSEY UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: BANKING PROFESSIONAL SERVICES FINANCE

SOURCE: 1st Colonial Bancorp, Inc.

Copyright Business Wire 2019.

PUB: 10/30/2019 05:29 PM/DISC: 10/30/2019 05:29 PM

http://www.businesswire.com/news/home/20191030006136/en