1st Colonial Bancorp Reports Second Quarter Net Income Growth and Year to Date Profit of $1,380,000

COLLINGSWOOD, N.J.--(BUSINESS WIRE)--

1st Colonial Bancorp, Inc. FCOB, holding company of 1^st Colonial Community Bank, today reported that its net income for the three months ended June 30, 2015 was $757,000 ($0.20 per share), compared to $291,000 ($0.08 per share) for the three months ended June 30, 2014. Net interest income increased $609,000 resulting from continued growth in interest earning assets. Non-interest income also increased by $486,000, primarily attributable to increased fees from the origination and sale of residential first mortgage loans.

The provision for loan losses increased by $69,000 for the quarter ended June 30, 2015 from the quarter ended June 30, 2014. Non-interest expense increased by $156,000 in the three months ended June 30, 2015 compared to the three months ended June 30, 2014; salaries and benefits increased by $388,000 primarily as a result of key additions of personnel in the residential lending area, offset by a $111,000 decrease in occupancy and equipment costs and a $147,000 decrease in losses on real estate owned during the quarter ended June 30, 2015 compared to the quarter ended June 30, 2014. Income tax expense also increased by $404,000 for the quarter ended June 30, 2015 from the quarter ended June 30, 2014.

Net income for the six months ended June 30, 2015 was $1,380,000 ($0.37 per share), compared to $403,000 ($0.11 per share) for the six months ended June 30, 2014.

Gerry Banmiller, President and Chief Executive Officer, commented, "As is evident in this report, our progress in achieving higher levels of income and growth has been tremendous. Kindly note that consolidated net income year-to-date has increased 242%. Critical ratios, also year-to-date, have improved dramatically. I make special mention of the efficiency ratio and the return on average assets. This could not have been done without the hard and intelligent work of the officers of our bank, augmented by dedicated employees. Of course the support of the Board of Directors has been of significant help."

At June 30, 2015, 1^st Colonial also reported $436 million in total assets, $398 million in deposits, $276 million in loans and $144 million in investment securities. These amounts reflect increases of $72 million in assets, $76.6 million in deposits, $61.4 million in loans and $13.4 million in investment securities from June 30, 2014.

The company also reported that its shareholders equity of $28.6 million and book value per share of $7.74 at June 30, 2015 increased by 10.3% and 10.0%, respectively, since June 30, 2014.

Net interest income of $6,168,000 for the six months ended June 30, 2015 was $1,174,000, or 23.5%, higher than the net interest income of $4,994,000 for the six months ended June 30, 2014, resulting from an increase in average interest earning assets of approximately $76 million for the six months ended June 30, 2015 compared to the six months ended June 30, 2014. In addition, 1^st Colonial's provision for loan losses was $601,000 for the six months ended June 30, 2015 compared to a provision for loan losses of $525,000 for the six months ended June 30, 2014.

Non-interest income of $1,559,000 for the six months ended June 30, 2015 was $772,000 greater than non-interest income for the six months ended June 30, 2014, primarily attributable to increased fees from the origination and sale of residential first mortgage loans.

Non-interest expense for the six months ended June 30, 2015 increased $182,000, or 3.9%, from the comparable period in 2014. Salaries and benefits increased by $653,000 primarily as a result of key additions of personnel in the residential lending area, offset by a $204,000 decrease in occupancy and equipment costs, a $147,000 decrease in losses on real estate owned and a decrease of $120,000 in other operating expenses from the same period in 2014.

Highlights as of June 30, 2015 and June 30, 2014, and comparing the three and six months ended June 30, 2015 and the three and six months ended June 30, 2014, respectively, include the following (dollars in thousands, except per share data):

								$			%
		at			at			increase/			increase/
		June 30, 2015			June 30, 2014			decrease			decrease
Total assets		$	435,905		$	363,512		$	72,393		19.9	%
Total loans			275,917			214,425			61,492		28.7	%
Investments			143,964			130,577			13,387		10.3	%
Total deposits			397,964			321,383			76,581		23.8	%
Shareholders' equity			28,581			25,919			2,662		10.3	%
Book Value (1)		$	7.74		$	7.03		$	0.71		10.0	%
		For the six months ended
								$			%
								increase/			increase/
		June 30, 2015			June 30, 2014			decrease			decrease
Net interest income		$	6,168		$	4,994		$	1,174		23.5	%
Provision for loan losses			601			525			76		14.5	%
Other income			1,559			787			772		98.1	%
Non interest expense			4,907			4,725			182		3.9	%
Tax expense			839			128			711		555.5	%
Net income			1,380			403			977		242.4	%
Earnings per share (1)		$	0.37		$	0.11		$	0.27		253.2	%
		For the three months ended
								$			%
								increase/			increase/
		June 30, 2015			June 30, 2014			decrease			decrease
Net interest income		$	3,159		$	2,550		$	609		23.9	%
Provision for loan losses		$	294		$	225			69		30.7	%
Other income		$	918		$	432			486		112.5	%
Non interest expense		$	2,533		$	2,377			156		6.6	%
Tax expense			493			89			404		453.9	%
Net income			757			291			466		160.1	%
Earnings per share (1)		$	0.20		$	0.08		$	0.13		158.3	%

____________________
(1)		Adjusted to give effect to the 5% stock dividend distributed to shareholders on April 15, 2015.

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 a loan production office in Mantua, Gloucester County. To learn more, call (856) 858-8402 or visit www.1stcolonial.com.

This Release contains forward-looking statements that are not historical facts and includes 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 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 or in the manner in which the regulators enforce such laws and regulations; new technology and other factors affecting our operations, pricing, products and services.

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