Company Announcements

Income Statement Highlights include:

• Net income was $2.3 million for the second quarter of 2025, an increase of $300 thousand, or 15% from the same quarter in 2024 and a $595 thousand, or 36%, increase from the first quarter of 2025.
• Net interest income for the quarter ended June 30, 2025 was $6.5 million, an increase of $615 thousand, or 10% from the same period in 2024.
• Net interest margin for the quarter ended June 30, 2025 was 3.19% compared to 3.11% for the same period in 2024 and 3.27% for the quarter ended March 31, 2025.
• Provision for credit losses was $252 thousand for the quarter ended June 30, 2025 compared to a provision release of $439 thousand for the second quarter in 2024. The provision for credit losses was $182 thousand for the first quarter of 2025.
• The allowance for credit losses (ACL) was 1.45% of total loans as of June 30, 2025 and March 31, 2025. The ACL was 1.44% as of December 31, 2024.
• Noninterest income for the quarter ended June 30, 2025 was $1.8 million, an increase of 85%, from the comparable quarter in 2024 and more than double from the first quarter of 2025.
• Noninterest expense for the quarter ended June 30, 2025 was $5.3 million, an increase of 11% from the same period in 2024 and 2% from the first quarter of 2025.
• Diluted earnings per share was $0.46 for the quarter ended June 30, 2025 compared to $0.40 for the quarter ended June 30, 2024 and $0.34 for the first quarter of 2025.
• Annualized return on average assets for the second quarter of 2025 was 1.07% compared to 1.00% for the second quarter of 2024 and 0.79% for the first quarter of 2025.

Balance Sheet Highlights include:

• Total assets grew $35.5 million, or 4%, to $877.1 million as of June 30, 2025 from $841.5 million as of December 31, 2024.
• Total loans increased $6.0 million, or 1%, to $628.5 million as of June 30, 2025 from $622.5 million as of December 31, 2024.
• Total deposits declined $4.2 million, or 1%, from $747.7 million as of December 31, 2024 to $743.5 million as of June 30, 2025.
• Book value per share increased 6% to $17.21 as of June 30, 2025 from $16.20 as of December 31, 2024.
• For the second quarter of 2025, annualized return on average equity was 11.21% compared to 11.22% for the same period in 2024 and 8.60% for the first quarter of 2025.
• Leverage ratio for the Bank grew to 10.97% as of June 30, 2025 from 10.68% as of December 31, 2024. 

MOUNT LAUREL, N.J.--(BUSINESS WIRE)--Jul. 22, 2025-- 1st Colonial Bancorp, Inc. (FCOB), holding company of 1^st Colonial Community Bank, today reported net income of $2.3 million, or $0.46 per diluted share, for the three months ended June 30, 2025, compared to net income of $2.0 million, or $0.40 per diluted share, for the three months ended June 30, 2024. For the six months ended June 30, 2025, net income was $3.9 million, or $0.79 per diluted share, compared to $3.5 million, or $0.72 per diluted share, for the same period in 2024.

Robert White, President and Chief Executive Officer, commented, “We are pleased to report our operating results for the second quarter of 2025. Our team continues to remain focused on delivering exceptional service to our clients, as we continue to grow and expand our customer base. We remain focused on originating new relationships with high quality loans and deposits that deliver superior value to both our existing and new clients. The second quarter also showed steady signs of increased loan demand, as businesses appear to be making investments in growth opportunities and infrastructure. Our tangible book value per share continues to grow, with increases of 6% from December 31, 2024 and 14% from June 30, 2024. We remain very targeted in our investments in technology enhancements and new Team Members, which is reflected in our nominal increase in noninterest expenses for the current period.”

“Our asset quality metrics are stable, which we attribute to our disciplined underwriting practices. We continue to demonstrate enhanced risk management practices through our portfolio management and monitoring process as we look for any signs of stress related to the economic environment. Our capital levels remain strong and can support our focus on long range planning and expansion opportunities, while navigating through fluid market conditions.”

Operating Results

Net Interest Income

The net interest margin was 3.19% for the second quarter of 2025 compared to 3.11% for the second quarter of 2024. The average yield on interest-earning assets decreased ten basis points from 5.42% for the quarter ended June 30, 2024 to 5.32% for the quarter ended June 30, 2025. The average rate paid on average interest-bearing liabilities decreased 21 basis points from 2.74% for the second quarter of 2024 to 2.53% for the second quarter of 2025. When compared to the first quarter of 2025, the second quarter 2025 net interest margin declined eight basis points from 3.27% and was mainly related to an 11 basis point increase in the average rate paid on average interest-bearing deposits.

Net interest margin was 3.23% for the six months ended June 30, 2025 compared to 3.20% for the six months ended June 30, 2024. The average yield on average loans outstanding declined eight basis points while the average rate paid on average interest-bearing deposits decreased ten basis points.

Net interest income for the three months ended June 30, 2025 and 2024 was $6.5 million and $5.9 million, respectively. The $615 thousand increase in net interest income was primarily attributable to a $565 thousand increase in interest income earned on average interest-earning investment securities coupled with a $40 thousand reduction in interest paid on average interest-bearing liabilities. For the second quarter of 2025, average investment securities and average interest-earning cash grew $45.0 million and $16.5 million from their respective average balances for the second quarter of 2024 and contributed an additional $695 thousand in interest income. For the second quarter of 2025, average loan balances decreased $5.6 million to $628.2 million from $633.8 million for the second quarter of 2024 and resulted in a $100 thousand decline in interest income. Average commercial and commercial real estate loans outstanding increased $6.9 million and $2.4 million, respectively. Average outstanding constructions loans, which have higher interest rates based on the Wall Street Journal (WSJ) prime rate, declined $9.5 million for the second quarter of 2025 compared to the same period in 2024 and residential mortgages decreased $6.8 million over the same period. When compared to the first quarter of 2025, net interest income declined by $80 thousand.

For the first six months of 2025, net interest income grew $916 thousand, or 7.5%, to $13.1 million from $12.2 million for the same period in 2024. The growth in net interest income was primarily attributable to an $813 thousand increase in interest income earned on average interest-earning assets coupled with a $103 thousand decreased in the interest paid on average interest-bearing liabilities. During the first six months of 2025, the average balances of investment securities and interest-earning cash grew $35.8 million and $27.3 million, respectively, and contributed an additional $927 thousand and $535 thousand, respectively, to interest income. Average loan balances declined $10.8 million, of which $6.9 million was related to construction loans, and resulted in a $621 thousand reduction in interest income.

For the second quarter of 2025, interest expense was $4.3 million, a decrease of $40 thousand from $4.4 million for the second quarter of 2024. For the second quarter of 2025, average interest-bearing deposits increased $66.4 million, or 10.9%, from the second quarter of 2024 and contributed an additional $247 thousand in interest expense. Average interest checking and savings and money market balances accounts increased $25.8 million and $41.6 million from their respective balances for the second quarter of 2024. Average brokered CDs declined $3.9 million from the average balance for the second quarter of 2024. Partially, due to the increase in average deposits, average borrowings declined $20.5 million and led to a $287 thousand reduction in interest expense. When compared to the first quarter of 2025, total interest expense increased $209 thousand from $4.1 million. The average rate paid on interest bearing liabilities was 2.53% for the second quarter of 2025 compared to 2.42% for the first quarter of 2025 and 2.74% for the second quarter of 2024.

For the first six months of 2025, interest expense was $8.5 million, a decrease of $103 thousand from $8.6 million for the first six months of 2024. For the first six months of 2025, average interest-bearing deposits increased $64.1 million, or 10.4%, from the average balance for the comparable 2024 period and contributed an additional $423 thousand in interest expense. Average interest checking and savings and money market accounts grew $35.7 million and $38.4 million, respectively while average retail and brokered CD balances decreased $5.1 million and $4.9 million, respectively. Average borrowings decreased $18.7 million, or 60%, during the first six months of 2025 compared to the same period in 2024 and resulted in a $526 thousand reduction in interest expense. The average rate paid on interest bearing liabilities was 2.48% for the first two quarters of 2025 compared to 2.68% for the first two quarters of 2024.

Provision for Credit Losses

For the three months ended June 30, 2025, the provision for credit losses was $252 thousand and included $176 thousand for loans and $76 thousand for off balance sheet (“OBS”) commitments, which are the Bank’s commitments to fund loans. For the three months ended June 30, 2024, the provision for credit losses was a net release of $439 thousand and included $380 thousand for loans and $59 thousand for OBS commitments. The 2024 release was mainly due to the sale of $15 million in home equity lines of credit in June 2024. For the second quarter of 2025 net charge-offs were $183 thousand and were related to the non-guaranteed portion of two SBA lending relationships. We recorded net charge-offs of $208 thousand in the second quarter of 2024 and net recoveries of $27 thousand in the first quarter of 2025.

For the six months ended June 30, 2025, the provision for credit losses was $434 thousand and included $313 thousand for loans and $121 thousand for OBS commitments. For the six months ended June 30, 2024, the provision for credit losses was a net release of $284 thousand and included $260 thousand for loans and $24 thousand for OBS commitments. Net charge-offs were $156 thousand for the first half of 2025 compared to $92 thousand for the same period in 2024.

Noninterest Income

Noninterest income for the second quarter of 2025 was $1.8 million, an increase of $829 thousand, or 85%, from $969 thousand for the second quarter of 2024. In the second quarter of 2025, the company received payroll tax refunds for the Employee Retention Credit in the amount of $779 thousand related to refund claims filed for certain quarters in 2020 and 2021 and was recorded as other noninterest income. Income from the origination and sales of residential mortgages grew $63 thousand, or 10%, from the second quarter in 2024. In the second quarter of 2025, we sold 100% of the originations compared to 92% in the second quarter of 2024. When compared to the first quarter of 2025, non-interest income for the second quarter of 2025 increased $920 thousand, or 1.05 times, from $878 thousand.

For the six months ended June 30, 2025, noninterest income was $2.7 million, an increase of $986 thousand, or 58%, from $1.7 million for the same period in 2024. As previously cited, we received payroll tax refunds for the Employee Retention Credit in the amount of $779 thousand in the second quarter of 2025. Income from the origination and sales of residential mortgages grew $155 thousand, or 14%, from $1.1 million for the first two quarters of 2024 to $1.2 million for the first two quarters in 2025. For the first half of 2025, we sold 97% of the mortgage loan originations compared to 88% of the mortgage loan originations for the first half of 2024.

Noninterest Expense

For the three months ended June 30, 2025, noninterest expense was $5.3 million and increased $515 thousand, or 10.7%, from $4.8 million for the comparable period in 2024. Salaries and benefits and data processing expenses increased $306 thousand and $82 thousand in accordance with our 2025 operating budget as we continue to make investments in the Company. When compared to the first quarter of 2025, non-interest expense for the second quarter of 2025 increased $94 thousand and was mainly related to lending expenses.

Noninterest expense was $10.5 million for the six months ended June 30, 2025 and increased $965 thousand, or 10.1%, from $9.6 million for the same period in 2024. Salaries and benefits grew $552 thousand, or 9.7%, mainly due to an increase in personnel and annual merit increases. Data processing, lending, and marketing expenses increased $147 thousand, $79 thousand and $61 thousand, respectively. The increase in data processing expenses was mostly related to technology enhancements. The increase in marketing expenses associated with the execution of our marketing strategy has led to the growth in new deposit customer relationships.

Income Taxes

For the three and six months ended June 30, 2024, income tax expenses were $494 thousand and $907 thousand, respectively, compared to $556 thousand and $1.1 million for the three and six months ended June 30, 2024, respectively. Income taxes were favorably impacted by the increase in tax-exempt investment income.

Financial Condition

Assets

As of June 30, 2025, total assets were $877.1 million and increased $8.6 million, or 0.99%, from $868.5 million as of March 31, 2025. Total assets grew $35.5 million, or 4.2% from $841.5 million as of December 31, 2024.

Total loans were $628.5 million as of June 30, 2025, an increase of $1.5 million from $627.0 million as of March 31, 2025. Total loans increased $6.1 million, or 0.97%, from $622.5 million as of December 31, 2024. Home equity loans and lines of credit, commercial real estate and commercial loans grew $14.3 million, $4.2 million and $3.7 million during the first half of 2025. Construction loans and residential mortgages declined $10.9 million and $5.2 million, respectively. As of June 30, 2025, loans held for sale were $10.2 million and increased $5.6 million and $4.0 million from $4.6 million as of March 31, 2025 and $6.3 million as of December 31, 2024, respectively.

Investments decreased $6.0 million, or 3.8%, to $152.0 million as of June 30, 2025 from $158.0 million as of March 31, 2025. Investments were $118.7 million as of December 31, 2024. During the first two quarters of 2025, we made net investments of $21.5 million in callable U.S. government agency bonds and $13.3 million in short-term municipal bond anticipation notes. We received $2.7 million in principal paydowns on mortgage-backed securities. The unrealized loss in the investment portfolio was $3.0 million as of June 30, 2025 compared to $3.4 million as of March 31, 2025 and $4.3 million as of December 31, 2024. Cash and cash equivalents increased $6.9 million from $50.4 million as of March 31, 2025 to $57.4 million as of June 30, 2025. Cash and cash equivalents were $67.4 million as of December 31, 2024.

Asset Quality

As of June 30, 2025 and March 31, 2025, the allowance for credit losses (“ACL”) for loans was $9.1 million, or 1.45%, of total loans compared to $9.0 million, or 1.44%, of total loans as of December 31, 2024. As of June 30, 2025, non-performing assets were $4.1 million compared to $2.4 million as of March 31, 2025 and $1.7 million as of December 31, 2024. During the second quarter of 2025 a $1.7 million residential mortgage was transferred to nonaccrual for being past due 90 days. We have sufficient collateral and are working with the borrower on a repayment plan. The ACL to non-accrual loans was 233.92% as of June 30, 2025 compared to 420.55% as of March 31, 2025 and 616.68% as of December 31, 2024. As of June 30, 2025, the ratio of non-performing assets to total assets was 0.47% compared to 0.28% as of March 31, 2025 and 0.20% as of December 31, 2024.

Liabilities

Total deposits were $743.5 million as of June 30, 2025, a decrease of $13.9 million, or 1.8%, from $757.4 million as of March 31, 2025. For the first six months of 2025, total deposits declined $4.2 million, or 0.56%, from $747.7 million as of December 31, 2024. Municipal interest checking accounts, interest checking deposits, and money market accounts decreased $50 million, $6.0 million, and $1.3 million, respectively, while savings accounts increased $28.0 million. Brokered and retail CDs increased $11.4 million and $5.0 million, respectively. The decline in municipal balances is due to the cyclical nature of these balances and was expected.

As of June 30, 2025, short-term borrowings were $35.0 million and increased $19.9 million from March 31, 2025 and $35.0 million from December 31, 2024. The increase in short-term borrowings was to supplement funding requirements.

Shareholder’s Equity

Total shareholders’ equity was $82.6 million as of June 30, 2025, compared to $79.8 million as of March 31, 2025 and $78.2 million as of December 31, 2024. The accumulated comprehensive loss improved to $2.2 million as of June 30, 2025 compared to $2.5 million for March 31, 2025 and $3.1 million as of December 31, 2024. The accumulated comprehensive loss is related to the unrealized loss in our investment portfolio. Tangible book value per share increased $0.51 from $16.70 as of March 31, 2025 to $17.21 as of June 30, 2025. Tangible book value per share was $16.20 as of December 31, 2024.

Consolidated Financial Statements and Other Highlights:

About 1^st Colonial Bancorp, Inc.

1st Colonial Bancorp, Inc, is a Pennsylvania corporation headquartered in Mount Laurel, New Jersey, and the parent company of 1st Colonial Community Bank (the “Bank”). The Bank 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 has branches in Westville, New Jersey and Limerick, Pennsylvania. The bank also has administrative offices in Mount Laurel, New Jersey. To learn more, call (877) 785-8550 or visit www.1stcolonial.com.

“Safe Harbor” Statement

In addition to historical information, this press release may contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements with respect to 1st Colonial Bancorp, Inc.’s strategies, goals, beliefs, expectations, estimates, intentions, capital raising efforts, financial condition and results of operations, future performance, and business. Statements preceded by, followed by, or that include the words “may,” “could,” “should,” “pro forma,” “looking forward,” “would,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” or similar expressions generally indicate a forward-looking statement. These forward-looking statements involve risks and uncertainties that are subject to change based on various important factors (some of which, in whole or in part, are beyond 1st Colonial Bancorp, Inc.’s control). Numerous competitive, economic, regulatory, legal and technological factors, risks and uncertainties that could cause actual results to differ materially include, without limitation, the impact of the ongoing pandemic and government responses thereto; on the U.S. economy, including the markets in which we operate; actions that we and our customers take in response to these factors and the effects such actions have on our operations, products, services and customer relationships; increased competitive pressures; changes in the interest rate environment; changes in general economic conditions and conditions within the securities markets; legislative and regulatory changes; escalating tariff and other trade policies and the resulting impacts on market volatility and global trade; and the effects of inflation, a potential recession, among others, could cause 1st Colonial Bancorp, Inc.’s financial performance to differ materially from the goals, plans, objectives, intentions and expectations expressed in such forward-looking statements. 1st Colonial Bancorp, Inc. cautions that the foregoing factors are not exclusive, and neither such factors nor any such forward-looking statement takes into account the impact of any future events. All forward-looking statements and information set forth herein are based on management’s current beliefs and assumptions as of the date hereof and speak only as of the date they are made. 1st Colonial Bancorp, Inc. does not undertake to update any forward-looking statement whether written or oral, that may be made from time to time by 1st Colonial Bancorp, Inc. or by or on behalf of 1st Colonial Community Bank.

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For more information, contact
Mary Kay Shea at 856‑885‑2391

Source: 1st Colonial Bancorp, Inc.