1st Colonial Bancorp Reports Fourth Quarter Net Income Growth and Fiscal Year 2016 Profit of $3,661,000

COLLINGSWOOD, N.J.--()--1st Colonial Bancorp, Inc. (FCOB), holding company of 1st Colonial Community Bank, today reported that its net income for the three months ended December 31, 2016 was $881,000 ($0.22 per share), compared to $865,000 ($0.22 per share) for the three months ended December 31, 2015. Increases in net interest income and non-interest income, plus a reduction in the provision for loan losses, were mostly offset by increases in non-interest expense and income tax expense.

Net interest income increased $588,000 resulting from continued growth in interest earning assets. Non-interest income also increased by $57,000, primarily attributable to increased fees from the origination and sale of residential first mortgage loans. The provision for loan losses decreased by $150,000 for the quarter ended December 31, 2016 from the quarter ended December 31, 2015 due to the improving economy and improved credit quality in the loan portfolio. Non-interest expense increased by $644,000 in the three months ended December 31, 2016 compared to the three months ended December 31, 2015; salaries and benefits increased by $401,000 primarily as a result of key additions of personnel in the residential lending area and support personnel in compliance and other areas, general operating costs increased by $203,000 due to the growth of the Bank, losses on real estate owned increased by $4,000 and occupancy and equipment costs increased $36,000. Income tax expense also increased by $68,000 for the quarter ended December 31, 2016 from the quarter ended December 31, 2015.

Net income for the year ended December 31, 2016 was $3,661,000 ($0.94 per share), compared to $3,008,000 ($0.78 per share) for the year ended December 31, 2015.

On January 25, 2017, 1st Colonial’s Board of Directors declared a five percent stock dividend to the company's shareholders to be distributed on April 17, 2017 with respect to all issued and outstanding shares held of record as of April 3, 2017.

1st Colonial's President and Chief Executive Officer, Gerard M. Banmiller, stated: “We are once again very pleased to announce our results for both the quarter and year ended December 31, and we are equally pleased to be able to provide another stock dividend to our shareholders in appreciation of their support. The capital that our shareholders have provided since our formation in June 2000 has allowed us to grow to a $488 million asset bank. We plan on continuing that growth in 2017 and beyond.”

At December 31, 2016, 1st Colonial also reported $446 million in deposits and $352 million in loans. These amounts reflect increases of $25 million in assets, $18 million in deposits and $53 million in loans from December 31, 2015. The company also reported that its shareholders’ equity of $34 million and book value per share of $8.79 at December 31, 2016 both increased by 13.3% since December 31, 2015.

Net interest income of $15,052,000 for the year ended December 31, 2016 was $2,166,000, or 16.8%, higher than the net interest income of $12,886,000 for the year ended December 31, 2015, resulting from an increase in average interest earning assets of approximately $51 million for the year ended December 31, 2016 compared to the year ended December 31, 2015. In addition, 1st Colonial’s provision for loan losses was $975,000 for the year ended December 31, 2016 compared to a provision for loan losses of $1,222,000 for the year ended December 31, 2015.

Non-interest income of $3,906,000 for the year ended December 31, 2016 was $533,000 greater than non-interest income for the year ended December 31, 2015, primarily attributable to increased fees from the origination and sale of residential first mortgage loans.

Non-interest expense for the year ended December 31, 2016 increased $1,839,000 or 17.8% from the comparable period in 2015. Salaries and benefits increased by $1,169,000 primarily as a result of key additions of personnel in the residential lending area and support personnel in compliance and other areas. In addition, occupancy and equipment costs increased by $131,000, and other operating expenses increased $610,000 due to the growth of the Bank. These negative variances were offset in part by the fact that losses on the sale of real estate owned decreased by $70,000.

Highlights as of December 31, 2016 and 2015, and comparing the three months and year ended December 31, 2016 and the three months and year ended December 31, 2015 include the following (dollars in thousands, except per share data):

     
at at

$
increase/

%
increase/

December 31, 2016 December 31, 2015 decrease decrease
 
Total assets $487,820 $463,227 $24,593 5.3%
 
Total loans 359,261 304,566 54,695 18.0%
 
Investments 114,840 142,931 (28,091) -19.7%
 
Total deposits 446,404 428,298 18,106 4.2%
 
Shareholders' equity 34,100 30,086 4,014 13.3%
 
Book Value (1) $8.79 $7.75 $1.03 13.3%
 
 

For the year ended

$
increase/

%
increase/

December 31, 2016 December 31, 2015 decrease decrease
 
Net interest income $15,052 $12,886 $2,166 16.8%
 
Provision for loan losses 975 1,222 (247) -20.2%
 
Other income 3,906 3,373 533 15.8%
 
Non interest expense 12,150 10,311 1,839 17.8%
 
Tax expense 2,172 1,718 454 26.4%
 
Net income 3,661 3,008 653 21.7%
 
Earnings per share (1) $0.94 $0.78 $0.17 21.7%
 

 

 

For the three months ended

 

$
increase/

%
increase/

December 31, 2016 December 31, 2015 decrease decrease
 
Net interest income $3,965 $3,444 $521 15.1%
 
Provision for loan losses 175 325 (150) -46.2%
 
Other income 929 873 56 6.4%
 
Non interest expense 3,302 2,658 644 24.2%
 
Tax expense 537 469 68 14.5%
 
Net income 881 865 16 1.8%
 
Earnings per share (1) $0.22 $0.22 $0.00 0.3%
 

(1) Adjusted to give effect to the 5% stock dividend distributed to shareholders on April 15, 2016.

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 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, 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 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; the inability to comply with the Bank’s consent order from the FDIC; new technology and other factors affecting our operations, pricing, products and services.

Contacts

1st Colonial Bancorp, Inc.
Gerry Banmiller, 856-858-8402

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