COLLINGSWOOD, N.J.–(BUSINESS WIRE)–1st Colonial Bancorp, Inc. (FCOB), holding company of 1st
Colonial Community Bank, today reported net income of $845 thousand, or
$0.18 per diluted share, for the three months ended March 31, 2019
compared to net income of $1.1 million, or $0.23 per diluted share for
the three months ended March 31, 2018. The decrease in net income is due
to a $401 thousand increase in the loan loss provision, a $149,000
increase in non-interest expense, and a $58,000 decrease in non-interest
income, each for the reasons explained below and which offset a $279,000
increase in net interest income. The 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, “We
are focused on our future. We plan on growing revenue through the
addition of veteran relationship managers and the implementation of our
digital strategy. Later this year, we will debut a modernized
website, offer Zelle to our customers, and design a refresh of our
branches. Collectively these initiatives will position us to grow
our customer base and increase shareholder value.”
Highlights for the three months ended March 31, 2019, included:
Balance Sheet Trends:
-
At March 31, 2019, total assets were $545.6 million and grew $1.7
million from $543.9 million at December 31, 2018. -
Total loans were $411.3 million at March 31, 2019, an increase of $6.8
million, or 1.7%, from $404.5 million at December 31, 2018. Increases
were recognized in commercial loans secured by real estate and
residential mortgage loans. -
Total deposits were $487.5 million at March 31, 2019, a slight
decrease of $2.6 million, or 0.5%, from $490.1 million at December 31,
2018. Certificates of deposit, demand deposits and savings accounts
increased $7.3 million, $6.3 million and $2.6 million, respectively.
Brokered deposits, money market accounts, and municipal deposits
declined $11.9 million, $3.6 million and $2.7 million, respectively. -
Total shareholders’ equity was $45.0 million at March 31, 2019, an
increase of $1.3 million, or 2.9%, from $43.7 million at December 31,
2018. -
1st Colonial’s non-performing assets at March 31, 2019 were
$4.0 million compared to $2.7 million at December 31, 2018.
Non-performing assets to total assets at March 31, 2019 were 0.74%
compared to 0.50% at December 31, 2018. During March we had one large
relationship that rapidly deteriorated and was placed on non-accrual.
Income Statement and Other Highlights:
-
Net interest income for the three months ended March 31, 2019
increased $279 thousand, or 6.3%, to $4.7 million from $4.4 million
for the three months ended March 31, 2018. The growth in net interest
income was primarily related to an increase in interest income on
loans and in the average yield earned on average interest-earning
assets. During the past twelve months, the 75 basis point increase in
the fed funds rate since March 2018 has had a positive impact on our
variable rate loans and our interest-earning deposits. The improvement
in interest income was partially offset by an increase in the interest
paid on interest-bearing deposits. -
The net interest margin was 3.55% for the first quarter of 2019
compared to 3.43% for the first quarter of 2018. The increase in net
interest margin was directly related to an increase in the yield on
average interest-earning assets. -
For the three months ended March 31, 2018, we recorded a provision to
the allowance for loan losses of $679 thousand compared to $278
thousand for the three months ended March 31, 2018. The increase in
the quarter over quarter provision was related to an increase in
specific reserves required on impaired loans. The loan loss allowance
as a percentage of total loans was 1.43% at March 31, 2019 compared to
1.39% at December 31, 2018. -
Non-interest income for the first quarter of 2019 was $592 thousand, a
decrease of $58 thousand, or 8.9%, from $650 thousand for the first
quarter of 2018. Gains on the sale of residential mortgages and the
sale of small business administration (“SBA”) loans declined $39
thousand and $15 thousand, respectively, due to a decline in the
volume of loans sold. -
Non-interest expense was $3.5 million for the quarter ended March 31,
2019 and increased $149 thousand, or 4.5%, from $3.3 million for the
comparable period in 2018. Contributing to the increase in
non-interest expense for the first quarter of 2019 were increases of
$76 thousand and $53 thousand in salaries and benefits and data
processing expenses, respectively. During 2018 we added personnel in
commercial lending and in the lending support functions. -
For the three months ended March 31, 2019, income tax expense was $303
thousand compared to $388 thousand for the three months ended March
31, 2018.
Highlights as of March 31, 2019 and December 31, 2018, and a comparison
of the three months ended March 31, 2019 to the three months ended March
31, 2018 include the following:
|
1st COLONIAL BANCORP, INC. |
|||||||||
| For the three months | |||||||||
| ended March 31, | |||||||||
|
2019 |
2018 |
||||||||
| Interest income |
$ |
5,977 |
$ | 5,207 | |||||
| Interest expense | 1,285 | 794 | |||||||
| Net Interest Income | 4,692 | 4,413 | |||||||
| Provision for loan losses | 679 | 278 | |||||||
| Net interest income after provision for loan losses | 4,013 | 4,135 | |||||||
| Non-interest income | 592 | 650 | |||||||
| Non-interest expense | 3,457 | 3,308 | |||||||
| Income before taxes | 1,148 | 1,477 | |||||||
| Income tax expense | 303 | 388 | |||||||
| Net Income |
$ |
845 |
$ | 1,089 | |||||
| Earnings Per Share – Basic (1) |
$ |
0.18 |
$ | 0.24 | |||||
| Earnings Per Share – Diluted (1) |
$ |
0.18 |
$ | 0.23 | |||||
|
SELECTED PERFORMANCE RATIOS: |
||||||||
|
For the three |
For the three |
|||||||
|
2019 |
2018 |
|||||||
| Return on Average Assets | 0.62% | 0.83% | ||||||
| Return on Average Equity | 7.71% | 11.32% | ||||||
| Book value per share (1) | $ | 9.64 | $ | 8.54 | ||||
|
At March 31, 2018 |
At December 31, 2018 |
|||||||
| Capital ratios: | ||||||||
| Tier 1 Leverage | 8.09% | 7.98% | ||||||
| Total Risk Based Capital | 13.51% | 13.42% | ||||||
| Common Equity Tier 1 | 12.25% | 12.16% | ||||||
|
(1) |
Adjusted to give effect to the 5% stock dividend distributed to |
|
|
1st COLONIAL BANCORP, INC. |
||||||||
| (Unaudited, in thousands) | At March 31, 2019 | At December 31, 2018 | ||||||
| Cash and cash equivalents | $ | 9,571 | $ | 12,114 | ||||
| Total investments | 112,918 | 115,093 | ||||||
| Mortgage loans held for sale | 2,977 | 2,989 | ||||||
| Total loans | 411,349 | 404,535 | ||||||
| Less Allowance for loan losses | (5,890) | (5,627) | ||||||
| Loans and leases, net | 405,459 | 398,908 | ||||||
| Bank owned life insurance | 8,426 | 8,368 | ||||||
| Premises and equipment, net | 739 | 798 | ||||||
| Other real estate owned, net | – | – | ||||||
| Accrued interest receivable | 2,080 | 1,737 | ||||||
| Other assets | 3,446 | 3,931 | ||||||
| Total Assets | $ | 545,616 | $ | 543,938 | ||||
| Total deposits | $ | 487,518 | $ | 490,096 | ||||
| Other borrowings | 11,168 | 8,157 | ||||||
| Other liabilities | 1,970 | 1,989 | ||||||
| Total Shareholders’ Equity | 44,960 | 43,696 | ||||||
| Total Liabilities and Equity | $ | 545,616 | $ | 543,938 | ||||
|
1st COLONIAL BANCORP, INC. |
||||||||||||||||||||||
| For the three months ended | For the three months ended | |||||||||||||||||||||
| March 31, 2019 | March 31, 2018 | |||||||||||||||||||||
|
Average |
Interest | Yield |
Average |
Interest | Yield | |||||||||||||||||
| Cash and cash equivalents | $ | 13,177 | $ | 63 | 1.94% | $ | 22,791 | $ | 76 | 1.35% | ||||||||||||
| Investment securities | 113,876 | 609 | 2.17% | 116,314 | 512 | 1.79% | ||||||||||||||||
| Mortgage loans held for sale | 4,406 | 25 | 2.30% | 5,816 | 47 | 3.28% | ||||||||||||||||
| Loans | 404,711 | 5,280 | 5.29% | 377,313 | 4,572 | 4.91% | ||||||||||||||||
| Total interest-earning assets | 536,170 | 5,977 | 4.52% | 522,234 | 5,207 | 4.04% | ||||||||||||||||
| Non-interest earning assets | 12,938 | 12,475 | ||||||||||||||||||||
| Total average assets | $ | 549,108 | $ | 534,709 | ||||||||||||||||||
|
Interest-bearing deposits |
||||||||||||||||||||||
| NOW and money markets | $ | 238,823 | $ | 433 | 0.74% | $ | 233,099 | $ | 183 | 0.32% | ||||||||||||
| Savings | 52,836 | 57 | 0.44% | 61,008 | 67 | 0.45% | ||||||||||||||||
| Certificates of deposit | 147,942 | 781 | 2.14% | 132,812 | 540 | 1.65% | ||||||||||||||||
| Total interest-bearing deposits | 439,601 | 1,271 | 1.17% | 426,919 | 790 | 0.75% | ||||||||||||||||
| Borrowings | 4,408 | 14 | 1.29% | 3,327 | 4 | 0.49% | ||||||||||||||||
| Total interest-bearing liabilities | 444,009 | 1,285 | 1.17% | 430,246 | 794 | 0.75% | ||||||||||||||||
| Non-interest bearing deposits | 59,216 | 64,313 | ||||||||||||||||||||
| Other liabilities | 1,443 | 1,420 | ||||||||||||||||||||
| Shareholders’ equity | 44,440 | 38,578 | ||||||||||||||||||||
| Total average liabilities and equity | $ | 549,108 | $ | 534,557 | ||||||||||||||||||
| Net interest income | $ | 4,692 | $ | 4,413 | ||||||||||||||||||
| Net interest margin | 3.55% | 3.43% | ||||||||||||||||||||
| Net interest spread | 3.35% | 3.30% | ||||||||||||||||||||
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; new technology and other factors
affecting our operations, pricing, products and services.
Contacts
Gerry Banmiller at 856-858-8402
