1st Colonial Bancorp Announces Increases in Assets (up 6.7%), Loans (up 18.7%) and Deposits (up 5.9%)

1st Colonial's net income for the year ended December 31, 2008 was $649,000, a decrease of 26.8% or $238,000 below the net income for the 2007 fiscal year. Additionally, diluted earnings per share decreased to $0.22 for the year ended December 31, 2008 from $0.31 for the year ended December 31, 2007. Net interest income increased 18.6% or $973,000 for the year ended December 31, 2008 over 2007's results. Other income increased $277,000 or 47.8% to $857,000 for the year ended December 31, 2008. One time death benefits from bank owned life insurance accounted for $236,000 of that increase and gains on investment securities sold accounted for $33,000. Non-interest expense also increased $1,078,000 or 23.8% from the year ended 2007. Salaries and benefits accounted for $581,000 of the increase largely because of an increase in staff to accommodate our growth; occupancy and equipment expense increased by $141,000 due to a full year in our new administrative headquarters; FDIC and OCC assessments increased by $145,000 due to an increase in assessment rates and our growth; advertising increased by $62,000; professional fees increased by $62,000; and postage and delivery increased by $30,000.

1st Colonial's provision for loan losses increased by $795,000 to $957,000 for the year ended December 31, 2008 compared to the $162,000 provision for the year ended December 31, 2007. This increase was prompted by overall economic conditions causing impairment in the value of real estate collateral, and slowing of contractual payments on some real estate secured loans.

Highlights as of December 31, 2008 and December 31, 2007, and comparing the year ended December 31, 2008 and the year ended December 31, 2007, respectively, include the following (dollars in thousands, except per share data):

At At $ increase/ % increase/ December 31, 2008 December 31, 2007 (decrease) (decrease) (Unaudited) Total assets $ 232,818 $ 218,295 $ 14,523 6.7 % Total loans 146,468 123,381 23,087 18.7 % Total deposits 200,882 189,622 11,260 5.9 % Shareholders' equity 21,791 21,722 69 0.3 % For the year ended $ increase/ % increase/ December 31, 2008 December 31, 2007 (decrease) (decrease) (Unaudited) Net interest income $ 6,215 $ 5,242 $ 973 18.6 % Provision for loan losses 957 162 795 490.7 % Other income 857 580 277 47.8 % Non-interest expense 5,601 4,523 1,078 23.8 % Tax benefit (expense) 135 (250 ) (385 ) 154.0 % Net income 649 887 (238 ) (26.8 %) Earnings per share, diluted $ 0.22 $ 0.31 $ (0.09 ) (29.0 %)

1st Colonial National Bank, the subsidiary of 1st Colonial Bancorp, provides a range of business and consumer financial services, placing emphasis on customer service, access to decision makers and quick turnaround on credit applications. Headquartered in Collingswood, New Jersey, the Bank also has branches in the New Jersey communities of Westville and Cinnaminson. 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; changes in interest rates, deposit flows, loan demand, and real estate values; competition; changes in accounting principles, policies or guidelines; changes in laws or regulation; new technology and other factors affecting our operations, pricing, products and services.

SOURCE: 1st Colonial National Bank

1st Colonial National Bank Gerry Banmiller, 856-858-8402