1st Colonial Bancorp, Inc. Reports First Quarter 2025 Net Income

Income Statement Highlights include:

• Net income was $1.7 million for the first quarter of 2025, a 5% increase from the first quarter of 2024.
• Net interest income for the quarter ended March 31, 2025 was $6.6 million, a 5% increase from the first quarter of 2024.
• Net interest margin for the quarter ended March 31, 2025 was 3.27% compared to 3.29% for the first quarter of 2024.
• Noninterest income for the quarter ended March 31, 2025 was $878 thousand, a 22% increase from the comparable quarter in 2024.
• Noninterest expense for the quarter ended March 31, 2025 was $5.2 million, a 9% increase from the same period in 2024.
• For the first quarter of 2025, diluted earnings per share was $0.34, compared to $0.32 per diluted share for the first quarter of 2024.
• Annualized return on average assets for the first quarter of 2025 was 0.79% compared to 0.80% for the first quarter of 2024.

Balance Sheet Highlights include:

• Total assets grew $26.9 million, or 3%, to $868.5 million as of March 31, 2025 from $841.5 million as of December 31, 2024.
• Total loans increased $4.5 million, or 1%, to $627.0 million as of March 31, 2025 from $622.5 million as of December 31, 2024.
• Total deposits increased $9.7 million, or 1%, from $747.7 million as of December 31, 2024 to $757.4 million as of March 31, 2025.
• Book value per share increased 3% to $16.70 as of March 31, 2025 from $16.20 as of December 31, 2024.
• Annualized return on average equity for the first quarter of 2025 was 8.56% compared to 13.88% for the fourth quarter of December 31, 2024 and 9.23% for the first quarter of 2024.
• Leverage ratio for the Bank was 10.68% as of March 31, 2025 compared to 10.68% as of December 31, 2024.

1st Colonial Bancorp, Inc. (FCOB), holding company of 1^st Colonial Community Bank, today reported net income of $1.7 million, or $0.34 per diluted share, for the three months ended March 31, 2025, compared to net income of $1.6 million, or $0.32 per diluted share, for the three months ended March 31, 2024.

Robert White, President and Chief Executive Officer, commented, “We are pleased to report our operating results for the first quarter of 2025. Our team continues to perform at a high level and demonstrates our ability to proactively pivot based on market conditions and our customers’ needs. We are optimistic that we will continue to see modest growth in both assets and liabilities in future periods. Our tangible book value per share continues to grow, with increases of 3% from December 31, 2024 and 14% from March 31, 2024. We remain very targeted in our investments in technology enhancements and Team Members, which is reflected in our expected increase in noninterest expenses for the current period.”

“Our asset quality metrics are stable and we continue to monitor our portfolio 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 continued economic uncertainties.”

Operating Results

Net Interest Income

The net interest margin was 3.27% for the first quarter of 2025 compared to 3.29% for the first and fourth quarters of 2024. The average yield on interest-earning assets declined 16 basis points from 5.48% for the quarter ended March 31, 2024 to 5.32% for the quarter ended March 31, 2025. The average yield on earning assets for the first quarter of 2024 was positively impacted by $138 thousand in nonaccrual interest received from the resolution of a nonaccrual loan. The average rate paid on average interest-bearing liabilities decreased 19 basis points from 2.61% for the first quarter of 2024 to 2.42% for the first quarter of 2025. When compared to the fourth quarter of 2024, the first quarter 2025 net interest margin declined two (2) basis points from 3.29%.

Net interest income for the three months ended March 31, 2025 and 2024 was $6.6 million and $6.3 million, respectively. The $301 thousand increase in net interest income was attributable to a $238 thousand increase in interest income on average interest-earning assets combined with a $63 thousand reduction in interest paid on average interest-bearing liabilities. For the first quarter of 2025, average interest-earning cash and investment securities increased $38.3 million and $26.5 million from their respective average balances for the first quarter of 2024 and contributed an additional $766 thousand in interest income. For the first quarter of 2025, average loan balances decreased $16.1 million to $623.2 million from $639.4 million for the first quarter of 2024 and resulted in a $520 thousand decline in interest income. Average commercial loans and lines outstanding increased $4.9 million while average commercial real estate and construction loans outstanding decreased $9.8 million and $4.2 million, respectively. When compared to the fourth quarter of 2024, net interest income declined $44 thousand.

For the first quarter of 2025, interest expense was $4.1 million, a decrease of $63 thousand from $4.2 million for the first quarter of 2024. For the first quarter of 2025, average interest-bearing deposits increased $61.8 million, or 10%, from $618.2 million for the first quarter of 2024 and contributed an additional $175 thousand in interest expense. Average interest checking and savings and money market balances accounts increased $45.7 million and $35.1 million from their respective balances for the first quarter of 2024. Average retail certificates of deposit (CDs) and brokered CDs declined $13.0 million and $6.0 million, respectively. As a result of the increase in average deposits, average borrowings declined $16.8 million and resulted in a $238 thousand reduction in interest expense. When compared to the fourth quarter of 2024, total interest expense decreased $74 thousand from $4.2 million. The average rate paid on interest bearing liabilities was 2.42% for the first quarter of 2025 compared to 2.61% for the first quarter of 2024 and 2.49% for the fourth quarter of 2024.

Provision for Credit Losses

For the three months ended March 31, 2025, the provision for credit losses was $182 thousand and included $136 thousand for loans and $46 thousand for off balance sheet (“OBS”) commitments, which are the Bank’s commitments to fund loans. For the three months ended March 31, 2024, the provision for credit losses was $155 thousand and included $120 thousand for loans and $35 thousand for OBS commitments. For the fourth quarter of 2024, the net provision release for credit losses was $42 thousand and included a $158 thousand provision release for loans and $116 thousand provision for OBS commitments. Net recoveries were $27 thousand for the first quarter of 2025 compared to $116 thousand for the first quarter of 2024.

Noninterest Income

Noninterest income for the first quarter of 2025 was $878 thousand, an increase of $157 thousand, or 22%, from $721 thousand for the first quarter of 2024. Income from the origination and sales of residential mortgages increased $93 thousand from $442 thousand for the first quarter in 2024 to $535 thousand for the first quarter in 2025. While mortgage originations were approximately the same, we sold 92% of the originations in the first quarter of 2025 compared to 82% in the first quarter of 2024.

When compared to the fourth quarter of 2024, noninterest income for the first quarter of 2025 declined $264 thousand from $1.1 million. There were no gains on the sale of SBA loans in the first quarter of 2025 compared to $314 thousand in gains on the sale of SBA loans for the fourth quarter of 2024.

Noninterest Expense

Noninterest expense was $5.2 million for the quarter ended March 31, 2025, and increased $450 thousand, or 9%, from $4.8 million for the quarter ended March 31, 2024. Salaries and benefits, marketing and community, and data processing expenses respectively increased $245 thousand, $91 thousand and $65 thousand in accordance with our 2025 operating budget as we continue to make investments in the company.

When compared to the fourth quarter of 2024, noninterest expense for the first quarter of 2025 increased $610 thousand from $4.6 million. Salaries and benefits, marketing and community expenses, professional fees, increased $251 thousand, $113 thousand, and $98 thousand, respectively. The increase in salaries and benefits was mainly due to an increase in employee benefits costs, including social security and unemployment taxes, which are typically higher at the start of the new year.

Income Taxes

For the first quarter of 2025, income tax expense was $413 thousand compared to $508 thousand for the first quarter of 2024 and $529 thousand for the fourth quarter of 2024. For the first quarter of 2025, nontaxable income increased $224 thousand from the respective 2024 period and had a favorable impact on income taxes.

Financial Condition

Assets

As of March 31, 2025, total assets were $868.5 million and increased $26.9 million, or 3%, from $841.5 million as of December 31, 2024.

Total loans were $627.0 million as of March 31, 2025 compared to $622.5 million as of December 31, 2024. During the first quarter, home equity loans and lines of credit and commercial mortgages increased $7.7 million and $4.5 million, respectively. Construction loans declined $5.1 million. Loans held for sale decreased $1.7 million from $6.3 million as of December 31, 2024 to $4.6 million as of March 31, 2025.

Investments increased $39.4 million to $158.0 million as of March 31, 2025 from $118.6 million as of December 31, 2024. During the first quarter of 2025, we made net investments of $21.5 million in callable U.S. government agency bonds and $18.4 million in short-term municipal bond anticipation notes. We received $1.3 million in principal paydowns on mortgage-backed securities. The unrealized loss in the investment portfolio was $3.4 million as of March 31, 2025 compared to $4.3 million as of December 31, 2024. Cash and cash equivalents declined $17.0 million to $50.4 million as of March 31, 2025 compared to $67.4 million as of December 31, 2024.

Asset Quality

As of 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. Nonperforming assets as of March 31, 2025, were $2.4 million compared to $1.7 million as of December 31, 2024. During the first quarter of 2025, we moved three SBA relationships with a carrying value of $615 thousand to nonaccrual. For one of the SBA relationships, a $174 thousand specific reserve was included in the ACL as of March 31, 2025. Total specific reserves on individually evaluated loans were $297 thousand as of March 31, 2025 compared to $140 thousand as of December 31, 2024. The ACL to non-accrual loans was 421% as of March 31, 2025 compared to 617% as of December 31, 2024. As of March 31, 2025, the ratio of non-performing assets to total assets was 0.39% compared to 0.27% as of December 31, 2024.

Liabilities

Total deposits were $757.4 million as of March 31, 2025 and grew $9.7 million from $747.7 million as of December 31, 2024. Savings and brokered CDs grew $16.7 million and $20.8 million, respectively. Municipal and interest checking accounts declined $16.4 million and $8.9 million, respectively. The decline in municipal balances is consistent with the cyclical behavior of these accounts. Short-term borrowings increased $15.2 million to supplement our funding requirements.

Shareholder’s Equity

Total shareholders’ equity was $79.8 million as of March 31, 2025, compared to $78.2 million as of December 31, 2024. The accumulated comprehensive loss was $2.5 million as of March 31, 2025 compared to $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 $0.50 from $16.20 as of December 31, 2024 to $16.70 as of March 31, 2025. As of March 31, 2025, the Bank’s capital ratios remain strong with a leverage ratio and a total risk-based capital ratio of 10.69% and 17.47%, respectively, compared to 10.68% and 17.51%, respectively, as of December 31, 2024.

On January 24, 2025, we announced the adoption of a stock repurchase program which reflects our intent to maximize shareholder value as we continue to focus on profitable growth. As of March 31, 2025, we have repurchased 54,303 shares for a total cost of $811 thousand through a trading plan under Rule 10b5-1 under the Securities Exchange Act of 1934.

Consolidated Financial Statements and Other Highlights:

1^st COLONIAL BANCORP, INC.

CONSOLIDATED INCOME STATEMENTS

(Unaudited for March 31, 2025 and 2024, dollars in thousands, except per share data)

SELECTED PERFORMANCE RATIOS:

1^st COLONIAL BANCORP, INC.

CONSOLIDATED BALANCE SHEETS

1^st COLONIAL BANCORP, INC.

NET INTEREST INCOME AND MARGIN

(Unaudited, in thousands, except percentages)

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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Our team continues to perform at a high level and demonstrates our ability to proactively pivot based on market conditions and our customers’ needs.