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 $388 thousand for the three months ended March 31, 2018.
Highlights as of March 31, 2019 and December 31, 2018, and a comparison of the three months ended March 31, 2019 to the three months ended March 31, 2018 include the following:
1st COLONIAL BANCORP, INC.
|For the three months|
|ended March 31,|
|Interest income|| |
|Net Interest Income||4,692||4,413|
|Provision for loan losses||679||278|
|Net interest income after provision for loan losses||4,013||4,135|
|Income before taxes||1,148||1,477|
|Income tax expense||303||388|
|Net Income|| |
|Earnings Per Share – Basic (1)|| |
|Earnings Per Share – Diluted (1)|| |
SELECTED PERFORMANCE RATIOS:
For the three
For the three
|Return on Average Assets||0.62%||0.83%|
|Return on Average Equity||7.71%||11.32%|
|Book value per share (1)||$||9.64||$||8.54|
At March 31, 2018
At December 31, 2018
|Tier 1 Leverage||8.09%||7.98%|
|Total Risk Based Capital||13.51%||13.42%|
|Common Equity Tier 1||12.25%||12.16%|
Adjusted to give effect to the 5% stock dividend distributed to shareholders on April 15, 2019.
1st COLONIAL BANCORP, INC.
|(Unaudited, in thousands)||At March 31, 2019||At December 31, 2018|
|Cash and cash equivalents||$||9,571||$||12,114|
|Mortgage loans held for sale||2,977||2,989|
|Less Allowance for loan losses||(5,890)||(5,627)|
|Loans and leases, net||405,459||398,908|
|Bank owned life insurance||8,426||8,368|
|Premises and equipment, net||739||798|
|Other real estate owned, net||-||-|
|Accrued interest receivable||2,080||1,737|
|Total Shareholders’ Equity||44,960||43,696|
|Total Liabilities and Equity||$||545,616||$||543,938|
1st COLONIAL BANCORP, INC.
|For the three months ended||For the three months ended|
|March 31, 2019||March 31, 2018|
|Cash and cash equivalents||$||13,177||$||63||1.94%||$||22,791||$||76||1.35%|
|Mortgage loans held for sale||4,406||25||2.30%||5,816||47||3.28%|
|Total interest-earning assets||536,170||5,977||4.52%||522,234||5,207||4.04%|
|Non-interest earning assets||12,938||12,475|
|Total average assets||$||549,108||$||534,709|
|NOW and money markets||$||238,823||$||433||0.74%||$||233,099||$||183||0.32%|
|Certificates of deposit||147,942||781||2.14%||132,812||540||1.65%|
|Total interest-bearing deposits||439,601||1,271||1.17%||426,919||790||0.75%|
|Total interest-bearing liabilities||444,009||1,285||1.17%||430,246||794||0.75%|
|Non-interest bearing deposits||59,216||64,313|
|Total average liabilities and equity||$||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.