Overview of 1st Colonial Community Bank
1st Colonial Community Bank is a mid-sized bank that has been operating for many years and that first began operations in the year 2000. The bank’s primary office is located in the city of Collingswood which is found in the state of New Jersey. The Federal Deposit Insurance Corporation has provided insurance to the bank since 2000. The FDIC is one of two governmental agencies that provides deposit insurance to American depositary institutions – the other is the National Credit Union Administration (NCUA). The FDIC’s mandate is mainly to insure deposits, but the agency also examines and supervises financial institutions and manages receiverships. In addition, the FDIC is the primary federal regulator for the bank and is focused on supervising and examining the bank for operational safety and soundness. Mainly because of its relative size, geographic reach and presence, the bank is considered to be a community bank, instead of a national bank. Based on our estimates, we believe its asset base of $684 million ranks it in the 70th percentile of banks in the United States. 1st Colonial Community Bank is essentially a purely domestic bank from an operational standpoint. This is because the bank does not have offices outside of the United States. Within the U.S. the bank currently has 4 offices, all of which are located across multiple states in the country. Finally, the bank currently has a total employee base of 94 people.
Overview of the Bank’s Assets and Liabilities
Some of the key components of the bank’s balance sheet are total assets of $684 million, total loans extended to customers of $529 million and customer deposits of $612 million. Overall, 13% of the bank’s deposits outstanding were transactional deposits. Transactional accounts are accounts like checking accounts which will tend to have more volatile balances. From an operational standpoint non-transactional accounts are more stable and attractive. In terms of the location of depositors, domestic depositors made up 100% of the bank’s total deposit base. Within this, 49% of the domestic deposits outstanding are insured. Loans extended to customers of the bank currently comprise 78% of the bank’s total assets. Loans extended to customers for real estate purposes represented 88% of the total loans outstanding. In addition, 100% of real estate loans were domestic. 1st Colonial Community Bank has $296 million of outstanding 1-4 family residential loans (mortgages), which in total represents 55% of its loans outstanding. Loans to individuals and loans to commercial and industrial interests represent 0% and 11% of loans outstanding, respectively.
Contact and Other Facts For 1st Colonial Community Bank
- Main Office Address: 1040 Haddon Ave., Collingswood, NJ 8108
- Website: http://www.1stcolonial.com
- Total Number of Branches: 4
- Total Number of International Branches: None
- Number of Employees: 94
- FDIC Certificate Number: 35456
- FDIC Community Bank: Yes
- FDIC Field Office: Jamesburg
- Independent or Subsidiary Bank: Independent
- Federal Reserve ID Number: 2920773
- Bank Charter Class: NM
- Primary Regulator: FDIC
Financial Overview
1st Colonial Community Bank has total assets of $684 million which compares with $596 million in the prior year. This implies that over the past year, the bank’s asset base has shown an increase of 14.7%. Moving to the other side of the balance sheet, we see net loans of $529 million which compares with $453 million in the prior year. Therefore its clear that over the past year the bank’s net loans outstanding has reported an increase of 16.6%. Within the loan portfolio, residential mortgages make up 55% of the outstanding loans of the bank, and over the past year have registered an increase of 18.8%. In addition, the bank provides loans to commercial and industrial businesses, which represents 11.2% of its total lending and stood at $60 million based on the latest available information. The bank also provides loans for farm-related activities, which currently amounts to 0.2% of its total loan portfolio. Finally, the bank also engages in the provision of auto loans. These are loans provided to customers to help finance vehicle purchases. Auto loans represent 0.1% of the bank’s total lending.
Bank Liquidity and Funding
How a bank funds its activities is an important area to assess and monitor. As a depositor you want to make sure the bank is conservatively funded, and the same goes for customers. A large and growing deposit base is usually a good sign for a bank’s liquidity and funding. This is because customer deposits are often a cheap source of financing as many of those accounts do not pay interest or much interest. Looking at 1st Colonial Community Bank, they have total customer deposits of $612 million which over the past year has registered an increase of 15.4%. The average bank in the country has a loan to deposit ratio of approximately 82%. In comparison, 1st Colonial Community Bank has a loan to deposit ratio of 86% which is above the average. A lower ratio is generally better as it indicates that the lending activities of a bank are more comfortably covered by its deposit base. Deposits, as noted earlier, are usually a cost effective source of financing. All of the bank’s deposits are sourced from domestic depositors, which is helpful from a risk assessment standpoint.
Bank Performance and Capital Metrics
The above chart provides a brief summary of some of the key performance metrics for 1st Colonial Community Bank. Next to these metrics are the equivalent for the average U.S. bank. Starting with its return on assets, over the past year it has improved. Importantly, on this metric we can also see that the bank is below the average bank. Return on assets tells us how productive a bank is being with its asset base. Next, looking at the bank’s return on equity, which tells us how much of a return the bank has generated for its owners, over the past year it has improved. In addition, we can also see that the bank is above the average bank on this metric. The bank’s total leverage ratio has been relatively stable over the past year and is currently below the national average. Finally, 1st Colonial Community Bank’s Tier 1 capital ratio has declined over the past year. On this metric the bank is below the national average.
Conclusion: 1st Colonial Community Bank
Ultimately, after considering all of the relevant factors we rate 1st Colonial Community Bank 3.1 out of 5.0, which is above average. While for example, the bank shines when it comes to its cost of funds, which is above the national average, its return on assets is a downward force on its rating. On this metric, the bank is below the national average. As a reminder, our rating is based on our proprietary scoring system which uses data from an in-depth nationwide bank study we performed. None of the work presented is intended to be investment advice or advice of any sort and is presented purely for informational purposes.