1st Colonial Bancorp, Inc. Reports Fourth Quarter and Full Year 2025 Results

Key Terms

non-gaap financial

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

net interest margin financial

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

basis points financial

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

prime rate financial

The prime rate is the interest rate banks typically charge their most creditworthy customers for short-term loans and serves as a common baseline for many other interest rates. Think of it as a price tag for borrowing: when the prime rate rises, costs for business loans, mortgages and consumer credit usually go up, which can slow spending, squeeze profits and influence stock prices and interest-sensitive sectors.

brokered certificates of deposit financial

Brokered certificates of deposit are time-deposit savings instruments issued by banks but sold through independent brokerage firms, like buying a fixed-term bond through a shop rather than directly at a bank branch. They matter to investors because they often offer higher interest rates and the ability to buy different bank issuers in one place, but they carry trade-off of reduced liquidity and potential price fluctuations if you sell before maturity; FDIC protection applies up to insured limits per bank.

subordinated debt financial

Subordinated debt is a type of loan that is paid back after other debts have been settled if a company encounters financial trouble. It is considered riskier for lenders because they have lower priority in getting repaid, similar to being last in line during a payout. For investors, this means higher potential returns in exchange for taking on more risk.

allowance for credit losses financial

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

non-performing assets financial

Loans or other credit exposures that are not producing expected income because borrowers have stopped making scheduled payments for a significant period (commonly around 90 days). Think of it like a business lending money that has gone quiet — the cash flow stops while the lender still carries the debt on its books. High levels of non-performing assets matter to investors because they reduce a lender’s earnings, tie up capital that could be used for growth, and signal higher risk of future losses.

Income Statement Highlights include:

• Net income for the fourth quarter of 2025 was $2.2 million, a 95% increase from the third quarter of 2025 and a 17% decrease from $2.7 million for the fourth quarter of 2024.
• Net income for 2025 was $7.3 million, a decrease of $757 thousand, or 9%, from $8.1 million for 2024.
• Core net income (non-GAAP¹) for the fourth quarter of 2025 was $3.1 million, a $450 thousand increase from $2.7 million for the same quarter in 2024 and a $1.2 million increase from $1.9 million for the third quarter of 2025.

• Net interest margin for the fourth quarter of 2025 was 3.32% compared to 3.35% for the third quarter of 2025 and 3.29% for the fourth quarter of 2024.
• Net interest margin for 2025 was 3.28% compared to 3.21% for 2024.
• Provision release for credit losses was $541 thousand for the quarter ended December 31, 2025 compared to a provision release of $42 thousand for the fourth quarter in 2024. The provision for credit losses was $185 thousand for the third quarter of 2025.
• Non-interest income for the quarter ended December 31, 2025 was $1.9 million, a 47% increase from the third quarter of 2025 and a 63% increase from the fourth quarter in 2024.
• Non-interest income for 2025 was $5.8 million, an increase of $2.0 million, or 54%, from 2024 and was favorably affected by payroll tax refunds for the Employee Retention Credit (“ERC”).
• Non-interest expense for the fourth quarter of 2025 was $6.8 million, an 8% increase from the third quarter of 2025 and a 46% increase from the fourth quarter of 2024.
• Non-interest expense for 2025 was $23.5 million, an increase of $4.7 million, or 25%, from 2024 and was impacted by merger-related expenses.
• Diluted earnings per share for the fourth quarter of 2025 was $0.45 compared to $0.55 for the same 2024 period and $.23 for the third quarter of 2025.
• Diluted earnings per share was $1.48 for 2025 compared to $1.64 for 2024.
• Annualized return on average assets for the fourth quarter of 2025, was 1.01% compared to 0.55% for the third quarter of 2025 and 1.29% for the fourth quarter of 2024.
• Return on average assets for 2025 was 0.86% compared to 1.00% for 2024.

Balance Sheet Highlights include:

• Total assets grew $39.4 million, or 5%, to $882.5 million from $843.1 million as of September 30, 2025 and by $41 million, or 5%, from $841.5 million as of December 31, 2024.
• Total loans declined $11.8 million, or 2%, to $611.8 million from $623.6 million as of September 30, 2025, and by $10.7 million, or 2%, from $622.5 million as of December 31, 2024.
• Total deposits grew $67.5 million, or 9%, to $789.6 million from $772.1 million as of September 30, 2025, and by $41.9 million, or 6%, from $747.7 million as of December 31, 2024.
• Annualized return on average equity for the fourth quarter of 2025 was 10.48% compared to 5.50% for the third quarter of 2025 and 13.88% for the fourth quarter of 2024.
• Return on average equity for 2025 was 8.94% compared to 11.10% for 2024.
• Book value per share increased 2% to $17.89 as of December 31, 2025 from $17.56 as of September 30, 2025 and 10% from $16.20 as of December 31, 2024.
• Leverage ratio for the Bank was 9.82% as of December 31, 2025 compared to 10.68% as of December 31, 2024.

MOUNT LAUREL, N.J.--(BUSINESS WIRE)-- 1st Colonial Bancorp, Inc. (OTCPK: FCOB), holding company of 1^st Colonial Community Bank, today reported net income of $2.2 million, or $0.45 per diluted share, for the three months ended December 31, 2025, compared to net income of $2.7 million, or $0.55 per diluted share, for the three months ended December 31, 2024. For the year ended December 31, 2025, net income was $7.3 million, or $1.48 per diluted share, compared to $8.1 million, or $1.64 per diluted share, for the same period in 2024. Excluding the impact of $1.3 million in merger-related expenses and the ERC payment, net income and diluted earnings per share, respectively, were $3.1 million (non-GAAP¹) and $0.63 (non-GAAP¹) for the quarter ended December 31, 2025.

Robert White, President and Chief Executive Officer, commented, “We are pleased to report our fourth quarter and full year 2025 operating results. I’m incredibly proud of our teams focus on our existing clients, as we get closer to completing our previously announced strategic merger with Mid Penn Bancorp. We believe this merger will create extraordinary opportunities for our valued clients, Team Members, and our dedicated shareholders that have trusted us for so many years. The 1st Colonial Team continues to work diligently to provide value added products and services to our client base, which we know will continue to further improve as we become part of the Mid Penn Team. We look forward to our special virtual meeting of shareholders on February 11, 2026 to approve our strategic merger transaction.”

(Non-GAAP¹) Non-GAAP financial measures referenced in this release are used by management to measure performance in operating the business that management believes enhances investors’ ability to better understand the underlying business performance and trends related to core business activities. Reconciliations of non-GAAP operating measures to the most directly comparable GAAP financial measures are included in the non-GAAP reconciliation tables in this release. Non-GAAP measures should not be used as a substitute for the closest comparable GAAP measurements.

Operating Results

Net Interest Income

The net interest margin was 3.32% for the fourth quarter of 2025 compared to 3.35% for the third quarter of 2025 and 3.29% for the fourth quarter of 2024. The average yield on interest-earning assets decreased 14 basis points from 5.38% for the quarter ended December 31, 2024 to 5.24% for the quarter ended December 31, 2025. The average rate paid on average interest-bearing liabilities decreased 21 basis points from 2.49% for the fourth quarter of 2024 to 2.28% for the fourth quarter of 2025. When compared to the third quarter of 2025, the average yield on interest-earning assets declined 17 basis points and the average rate paid on average interest-bearing liabilities improved 19 basis points.

Net interest margin was 3.28% for the year ended December 31, 2025, compared to 3.21% for the year ended December 31, 2024. The average yield on interest-earning assets declined 13 basis points from 5.45% for 2024 to 5.32% for 2025. The average rate paid on average interest-bearing liabilities decreased 24 basis points from 2.66% for 2024 to 2.42% for 2025.

Net interest income for the three months ended December 31, 2025 and 2024 was $7.1 million and $6.6 million, respectively. The $485 thousand increase in net interest income was primarily attributable to a $364 thousand increase in interest income earned on average interest-earning assets combined with a $121 thousand reduction in interest paid on average interest-bearing liabilities. For the fourth quarter of 2025, average interest-earning cash and investment securities increased $47.1 million and $13.3 million from their respective average balances for the fourth quarter of 2024 and led to $567 thousand in additional interest income. For the fourth quarter of 2025, average loan balances decreased $8.6 million to $617.7 million from $626.3 million for the fourth quarter of 2024 and resulted in a $138 thousand decline in interest income. Average commercial and home equity loans and lines outstanding increased $6.6 million and $17.4 million, respectively. Average outstanding constructions loans, which have higher interest rates based on the Wall Street Journal (WSJ) prime rate, declined $12.9 million for the fourth quarter of 2025 when compared to the same period in 2024 and residential mortgages decreased $18.7 million over the same period. When compared to the third quarter of 2025, net interest income increased $330 thousand from $6.8 million. The yield on average loans outstanding was 5.84% for the fourth quarter of 2025 compared to 5.90% for the third quarter of 2025 and 5.87% for the fourth quarter of 2024.

Net interest income for 2025 was $27.0 million and increased $2.0 million from $25.0 million for 2024. The growth in net interest income was primarily attributable to a $1.4 million increase in interest income earned on average interest-earning assets coupled with a $624 thousand decrease in the interest paid on average interest-bearing liabilities. During 2025, the average balances of investment securities and interest-earning cash grew $27.3 million and $25.3 million, respectively, and contributed an additional $1.5 million and $804 thousand, respectively, to interest income. Average loan balances declined $6.1 million, of which $9.9 million was related to construction loans, and resulted in a $1.1 million reduction in interest income. Total interest income earned on average loans declined $759 thousand year over year. The yield on average loans outstanding was 5.84% for 2025 compared to 5.91% for 2024.

For the fourth quarter of 2025, interest expense was $4.1 million and decreased $121 thousand from $4.2 million for the fourth quarter of 2024. For the fourth quarter of 2025, average interest-bearing deposits increased $47.6 million to $711.8 million from $664.2 million for the fourth quarter of 2024. Average interest checking and savings and money market balances increased $18.1 million and $38.9 million, respectively. Average brokered certificates of deposit (CDs) decreased $15.1 million. Deposit interest expense increased $80 thousand from $4.0 million for the fourth quarter of 2024 to $4.1 million for the fourth quarter of 2025. The average rate paid on interest-bearing deposits was 2.28% for the fourth quarter of 2025 compared to 2.40% for the same quarter in 2024. As a result of the $10.75 million in subordinated debt redemption on the first call date of September 1, 2025, average borrowings decreased $10.2 million and led to a $201 thousand reduction in interest expense. When compared to the third quarter of 2025, interest expense on deposits increased $91 thousand from $4.0 million and the average rate paid decreased 12 basis points from 2.40%.

Interest expense decreased $624 thousand from $17.4 million for 2024 to $16.8 million for 2025. For 2025 average interest-bearing deposits increased $51.6 million from the average balance for 2024. Average interest checking and savings and money market accounts grew $23.4 million and $40.4 million, respectively, while average brokered CD balances decreased $12.5 million. Average borrowings decreased $14.3 million to $9.1 million for 2025 compared to $23.4 million for 2024 and led to $890 thousand reduction in interest expense. The average rate paid on interest bearing deposits was 2.36% for 2025 compared to 2.51% for 2024.

Provision for Credit Losses

For the three months ended December 31, 2025, the net provision release for credit losses was $541 thousand and included $506 thousand for loans and $35 thousand for off balance sheet (“OBS”) commitments. For the three months ended December 31, 2024, the net provision release for credit losses was $42 thousand and included a $158 thousand provision release for loans and $116 thousand provision expense for OBS commitments. For the fourth quarter of 2025, net charge-offs were $74 thousand and included $98 thousand in charge-offs for the non-guaranteed portion of one SBA lending relationship. For the fourth quarter of 2024, net charge-offs were $55 thousand and included $125 thousand in charge-offs for the non-guaranteed portion of one SBA lending relationship.

For the year ended December 31, 2025, the net provision for credit losses was $78 thousand and included a $54 thousand provision release for loans and $132 thousand provision expense for OBS commitments. For the year ended December 31, 2024, the net provision release for credit losses was $244 thousand and included a $298 thousand provision release for loans and a $54 thousand provision expense for OBS commitments. For 2025, we recognized net charge-offs of $286 thousand compared to $438 thousand for 2024.

Noninterest Income

Noninterest income for the fourth quarter of 2025 was $1.9 million, an increase of $715 thousand from $1.1 million for the fourth quarter of 2024. Income from the origination and sales of residential mortgages was $628 thousand and grew $113 thousand from the fourth quarter in 2024. In the fourth quarter of 2025, the company received $523 thousand in payroll tax refunds for the ERC related to refund claims filed for certain quarters in 2020 and 2021 and was recorded as other noninterest income. When compared to the third quarter of 2025, noninterest income for the fourth quarter of 2025 increased $592 thousand from $1.3 million and was mainly related to the ERC payment.

For the year ended December 31, 2025, noninterest income was $5.8 million, an increase of $2 million from $3.8 million for 2024. Total payroll tax refunds for the ERC were $1.3 million in 2025. Income from the origination and sales of residential mortgages increased $461 thousand, from $2.2 million for 2024 to $2.7 million for 2025. Additionally, income related to bank owned life insurance policies increased $200 thousand.

Noninterest Expense

Noninterest expense was $6.8 million for the three months ended December 31, 2025, an increase of $2.2 million from $4.6 million for the comparable period in 2024. Total personnel expenses increased $1.6 million mainly due to $1.5 million in merger-related expenses. Additional merger-related expenses of $213 thousand included legal expenses, due diligence costs and preparation expenses for the special meeting of shareholders. Data processing expenses increased $97 thousand in accordance with our 2025 operating budget. When compared to the third quarter of 2025, non-interest expense for the fourth quarter of 2025 increased $501 thousand, which was mainly due to merger-related expenses.

Noninterest expense was $23.5 million for 2025 and increased $4.7 million from $18.8 million for 2024. For 2025, salaries and benefits grew $2.7 million and included $1.5 million in merger-related expenses. Other merger-related expenses totaled $989 thousand and included due diligence costs, legal expenses, investment banking expenses related to delivery of a fairness opinion to its Board of Directors and preparation expenses for the special meeting of shareholders. Data processing and software expenses, loan expenses, occupancy and equipment expenses and marketing expenses increased $318 thousand, $250 thousand, $86 thousand and $63 thousand, respectively.

Income Taxes

For the three and twelve months ended December 31, 2025, income tax expense was $530 thousand and $1.9 million, respectively, compared to $529 thousand and $2.1 million for the three and twelve months ended December 31, 2024, respectively. The 2025 combined effective tax rate improved to 20.8% from 21.1% for 2024.

Financial Condition

Assets

As of December 31, 2025, total assets were $882.5 million and grew $39.4 million from $843.1 million as of September 30, 2025. Total assets increased $40.9 million from $841.5 million as of December 31, 2024. As of December 31, 2025, cash and cash equivalents increased $37.0 million to $100.1 million from $63.1 million as of September 30, 2025. Cash and cash equivalents were $67.4 million as of December 31, 2024.

Total loans were $611.8 million as of December 31, 2025 and declined $11.8 million from $623.6 million as of September 30, 2025. Total loans decreased $10.7 million from $622.5 million as of December 31, 2024. Commercial loans, including commercial real estate and construction loans, declined $8.0 million and residential mortgages declined $22.4 million. Home equity loans and lines of credit increased $17.7 million. Loans held for sale were $9.8 million as of December 31, 2025, compared to $6.6 million as of September 30, 2025 and $6.3 million as of December 31, 2024.

Investments grew $7.5 million to $131.7 million as of December 31, 2025 from $124.2 million as of September 30, 2025. Total investments increased $13.0 million from $118.7 million as of December 31, 2024. During 2025 we purchased $51.5 million in callable U.S. government agency bonds and received $66.6 million in called bond proceeds and maturity payments. Additionally, we purchased $20 million in short-term U.S. Treasury notes and made net investments of $10.6 million in short-term municipal bond anticipation notes. We received $5.3 million in principal paydowns on mortgage-backed securities. The unrealized loss in the investment portfolio was $2.0 million as of December 31, 2025 compared to $4.3 million as of December 31, 2024. Approximately 94% of the available for sale investment portfolio is invested in U.S. government sponsored securities.

Asset Quality

As of December 31, 2025, the allowance for credit losses (“ACL”) for loans was $8.6 million, or 1.41%, of total loans compared to $9.2 million, or 1.47%, of total loans as of September 30, 2025. The allowance for credit losses was $9.0 million, or 1.44% of total loans, as of December 31, 2024. As of December 31, 2025, non-performing assets were $3.7 million compared to $4.3 million as of September 30, 2025 and $1.7 million as of December 31, 2024.

The ACL to non-accrual loans was 230% as of December 31, 2025 compared to 229% as of September 30, 2025. The ACL to non-accrual loans was 617% as of December 31, 2024. As of December 31, 2025, the ratio of non-performing assets to total assets was 0.42% compared to 0.52% as of September 30, 2025 and 0.20% as of December 31, 2024.

Liabilities

Total deposits were $789.6 million as of December 31, 2025, an increase of $67.5 million from $722.1 million as of September 30, 2025. For the year ended December 31, 2025, total deposits increased $41.9 million from $747.7 million as of December 31, 2024. Money markets and savings deposits and interest checking deposits increased $33.6 million and $35.5 million, respectively, while municipal checking and brokered deposits decreased $19.9 million and $7.9 million, respectively. Our refocused marketing strategy had a positive impact on acquiring new customer relationships.

As of December 31, 2025, we had no short-term borrowings due to our growth in deposits. Short-term borrowings were $30.5 million as of September 30, 2025 and $0 as of December 31, 2024.

Due to our strong capital ratios and our confidence in our asset quality we redeemed the Company’s $10.75 million in subordinated debt on the initial call date of September 1, 2025. The subordinated debt coupon was scheduled to reprice at an interest rate that exceeded 11% from the initial fixed coupon of 7%.

Shareholder’s Equity

Total shareholders’ equity was $87.8 million as of December 31, 2025, an increase of $3.5 million from $84.3 million as of September 30, 2025. Total shareholders’ equity increased $9.6 million from $78.2 million as of December 31, 2024. The accumulated comprehensive loss was $1.4 million as of December 31, 2025 compared to $1.8 million as of September 30, 2025 and is related to the unrealized loss in our investment portfolio. The accumulated comprehensive loss was $3.1 million as of December 31, 2024. Tangible book value per share increased $0.33, from $17.56 as of September 30, 2025 to $17.89 as of December 31, 2025. Tangible book value per share was $16.20 as of December 31, 2024. As of December 31, 2025, the Bank’s capital ratios remain strong with a leverage ratio and a total risk-based capital ratio of 9.82% and 17.08%, respectively, compared to 10.68% and 17.51%, respectively, as of December 31, 2024.

Agreement and Plan of Merger with Mid Penn

On September 24, 2025, 1st Colonial and Mid Penn (NASDAQ: MBP) announced that the companies entered into an Agreement and Plan of Merger pursuant to which Mid Penn will acquire 1st Colonial in a cash and stock transaction valued at approximately $101 million (the “Transaction”). The Transaction is expected to close late in the first quarter or early in the second quarter of 2026, subject to the satisfaction of customary closing conditions, including regulatory approvals and approval by 1st Colonial shareholders. A special virtual meeting of 1st Colonial shareholders will be held virtually on February 11, 2026 to approve and adopt the merger agreement. Mr. Robert White commented, “We are thrilled to be joining forces with Mid Penn, a recognized regional banking leader. The combination will allow for an expansion of our product and service offering, as well as bring greater financial capacity for continued investment in our company and our communities.”

 

 

Consolidated Financial Statements and Other Highlights:
1st COLONIAL BANCORP, INC. CONSOLIDATED INCOME STATEMENTS (Unaudited, dollars in thousands, except per share data)
	For the three months ended									For the years
	Dec 31,			Sept 30,			Dec 31,			ended December 31,
	2025			2025				2024			2025			2024
Interest income	$	11,225		$	10,982		$	10,861		$	43,813		$	42,408
Interest expense		4,098			4,185			4,219			16,773			17,397
Net Interest Income		7,127			6,797			6,642			27,040			25,011
(Release of) provision for credit losses		(541	)		185			(42	)		78			(244	)
Net interest income after provision for credit losses		7,668			6,612			6,684			26,962			25,255
Non-interest income		1,857			1,265			1,142			5,799			3,776
Non-interest expense		6,754			6,253			4,613			23,548			18,826
Income before taxes		2,771			1,624			3,213			9,213			10,205
Income tax expense		530			477			529			1,914			2,148
Net Income	$	2,241		$	1,147		$	2,684		$	7,299		$	8,057
Earnings Per Share – Basic	$	0.46		$	0.24		$	0.56		$	1.52		$	1.69
Earnings Per Share – Diluted	$	0.45		$	0.23		$	0.55		$	1.48		$	1.64

 

SELECTED PERFORMANCE RATIOS:
	For the three months ended									For the years
	Dec 31,			Sept 30,			Dec 31,			ended December 31,
		2025			2025			2024			2025			2024
Annualized Return on Average Assets		1.01	%		0.55	%		1.29	%		0.86	%		1.00	%
Annualized Return on Average Equity		10.48	%		5.50	%		13.88	%		8.94	%		11.10	%
Book value per share	$	17.89		$	17.56		$	16.20		$	17.89		$	16.20

	As of December 31, 2025		As of December 31, 2024
Bank Capital Ratios:
Tier 1 Leverage	9.82%		10.68%
Total Risk Based Capital	15.82%		16.25%
Common Equity Tier 1	17.08%		17.51%

 

1st COLONIAL BANCORP, INC. CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)	As of December 31, 2025				As of December 31, 2024
Cash and cash equivalents	$	100,137			$	67,399
Total investments		131,654				118,650
Mortgage loans held for sale		9,845				6,273
Total loans		611,775				622,455
Less Allowance for credit losses		(8,614	)			(8,954	)
Loans and leases, net		603,161				613,501
Bank owned life insurance		22,307				21,502
Premises and equipment, net		1,088				1,450
Other real estate owned		-				258
Accrued interest receivable		3,676				3,434
Other assets		10,617				9,078
Total Assets	$	882,485			$	841,545
Total deposits	$	789,634			$	747,656
Other borrowings		-				-
Subordinated debt		-				10,702
Other liabilities		5,073				4,969
Total Liabilities		794,707				763,327
Total Shareholders’ Equity		87,778				78,218
Total Liabilities and Shareholders’ Equity	$	882,485			$	841,545

 

1st COLONIAL BANCORP, INC. NET INTEREST INCOME AND MARGIN TABLES (Unaudited, in thousands, except percentages)
	For the three months ended
	December 31, 2025									September 30, 2025								December 31, 2024
	Average Balance			Interest			Yield/ Rate			Average Balance			Interest				Yield/ Rate			Average Balance				Interest			Yield/ Rate
Cash and cash equivalents	$	102,027		$	975		3.79	%		$	32,421		$		319		3.90	%		$		54,932		$	617		4.47			%
Investment securities		124,269			1,058		3.38	%			135,779				1,180		3.45	%				110,934			849		3.04			%
Loans held for sale		6,612			96		5.76	%			7,762				128		6.52	%				10,284			161		6.23			%
Loans		617,666			9,096		5.84	%			629,406				9,355		5.90	%				626,296			9,234		5.87			%
Total interest-earning assets		850,574			11,225		5.24	%			805,368				10,982		5.41	%				802,446			10,861		5.38			%
Non-interest earning assets		28,051									28,309											26,920
Total average assets	$	878,625								$	833,677									$		829,366
Interest-bearing deposits
Interest checking accounts	$	439,238		$	1,816		1.64	%		$	386,438		$		1,579		1.62	%		$		421,137		$	1,737		1.64			%
Savings and money markets		120,736			799		2.63	%			118,682				843		2.82	%				81,808			482		2.34			%
Certificates of deposit		76,763			693		3.58	%			78,284				745		3.78	%				71,082			701		3.92			%
Brokered deposits		75,083			785		4.15	%			78,237				835		4.24	%				90,184			1,092		4.82			%
Total interest-bearing deposits		711,820			4,093		2.28	%			661,641				4,002		2.40	%				664,211			4,012		2.40			%
Borrowings		587			6		4.00	%			11,110				183		6.54	%				10,792			207		7.63			%
Total interest-bearing liabilities		712,407			4,098		2.28	%			672,751				4,185		2.47	%				675,003			4,219		2.49			%
Non-interest bearing deposits		75,209									72,228											72,282
Other liabilities		6,155									5,866											5,177
Total average liabilities		793,771									750,844											752,462
Shareholders' equity		84,854									82,833											76,904
Total average liabilities and equity	$	878,625								$	833,677									$		829,366
Net interest income				$	7,127								$		6,797									$	6,642
Net interest margin							3.32	%									3.35	%								3.29				%
Net interest spread							2.95	%									2.94	%								2.90				%

 

1st COLONIAL BANCORP, INC. NET INTEREST INCOME AND MARGIN TABLES – Continued (Unaudited, in thousands, except percentages)
	For the year ended							For the year ended
	December 31, 2025							December 31, 2024
	Average Balance		Interest		Yield/Rate			Average Balance		Interest		Yield/Rate
Cash and cash equivalents	$	54,513	$	2,132	3.91	%		$	29,254	$	1,329	4.54	%
Investment securities		137,746		4,778	3.47	%			110,412		3,328	3.01	%
Mortgage loans held for sale		6,433		403	6.26	%			7,817		493	6.31	%
Loans		624,632		36,500	5.84	%			630,779		37,258	5.91	%
Total interest-earning assets		823,324		43,813	5.32	%			778,262		42,408	5.45	%
Non-interest earning assets		27,819							25,013
Total average assets	$	851,143						$	803,275
Interest-bearing deposits
Interest checking accounts	$	408,908	$	6,455	1.58	%		$	385,531	$	6,378	1.65	%
Savings and money market deposits		112,543		3,088	2.74	%			72,163		1,493	2.07	%
Certificates of deposit		75,927		2,875	3.79	%			75,623		3,005	3.97	%
Brokered deposits		85,302		3,715	4.36	%			97,799		4,991	5.10	%
Total interest-bearing deposits		682,680		16,133	2.36	%			631,116		15,867	2.51	%
Borrowings		9,117		640	7.02	%			23,426		1,530	6.53	%
Total interest-bearing liabilities		691,797		16,773	2.42	%			654,542		17,397	2.66	%
Non-interest bearing deposits		72,183							70,556
Other liabilities		5,541							5,579
Total average liabilities		769,521							730,677
Shareholders' equity		81,622							72,598
Total average liabilities and equity	$	851,143						$	803,275
Net interest income			$	27,040						$	25,011
Net interest margin					3.28	%						3.21	%
Net interest spread					2.90	%						2.79	%

GAAP to NON-GAAP RECONCILIATION
(Unaudited, dollars in thousands, except per share data)

Net income, annualized return on average assets, and annualized return on average equity excluding non-recurring income and expenses are determined by methods other than in accordance with generally accepted accounting principles (“GAAP”) and are considered non-GAAP financial measures. Pre-merger related expenses and the employee retention credit are excluded from core earnings. Management believes that these non-GAAP financial measures are useful because they enhance the ability of management and investors to evaluate and compare our core operating results from period to period.

		For the three months ended										For the years
	Dec 31,				Sept 30,			Dec 31,			ended December 31,
	2025				2025			2024			2025					2024
Net Income (GAAP)	$		2,241		$	1,147		$	2,684		$		7,299		$	8,056
Plus merger expenses			213			772			-				989			-
Plus merger expenses-salaries and benefits, tax effected			1,059			-			-				1,059			-
Less employee retention tax credit, tax effected			(379	)		-			-				(915	)		-
Pre-merger expenses core earnings (non-GAAP)	$		3,134		$	1,919		$	2,684		$		8,432		$	8,056
Adjusted Earnings Per Share – Diluted (non-GAAP)	$		0.63		$	0.39		$	0.54		$		1.71		$	1.64
Adjusted Annualized Return on Average Assets			1.42	%		0.91	%		1.29	%			0.99	%		1.00	%
Adjusted Annualized Return on Average Equity			14.65	%		9.19	%		13.85	%			10.33	%		11.10	%

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 1^st 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.

In addition, factors relating to the Transaction that could cause or contribute to actual results differing materially from those contained or implied in forward-looking statements or historical performance include, in addition to those factors identified elsewhere in this press release the occurrence of any event, change or other circumstances that could give rise to the right of Mid Penn or 1st Colonial to terminate the definitive merger agreement governing the terms and conditions of the Transaction; the outcome of any legal proceedings that may be instituted against Mid Penn or 1st Colonial; the possibility that revenue or expense synergies or the other expected benefits of the Transaction may not fully materialize or may take longer to realize than expected, or may be more costly to achieve than anticipated, including as a result of the impact of, or problems arising from, the integration of the two companies, the strength of the economy and competitive factors in the areas where Mid Penn and 1st Colonial do business, or other unexpected factors or events; the possibility that the Transaction may not be completed when expected or at all because required regulatory, shareholder or other approvals or other conditions to closing are not received or satisfied on a timely basis or at all (and the risk that such approvals may result in the imposition of conditions that could adversely affect Mid Penn or 1st Colonial or the expected benefits of the Transaction); the risk that Mid Penn is unable to successfully and promptly implement its integration strategies; reputational risks and potential adverse reactions from or changes to the relationships with the companies’ customers, employees or other business partners, including resulting from the announcement or the completion of the Transaction; the dilution caused by Mid Penn’s issuance of common stock in connection with the Transaction; diversion of management’s attention and time from ongoing business operations and other opportunities on matters relating to the Transaction; and other factors that may affect the future results of Mid Penn and 1st Colonial, including continued pressures and uncertainties within the banking industry and Mid Penn’s and 1st Colonial’s markets, including changes in interest rates and deposit amounts and composition, adverse developments in the level and direction of loan delinquencies, charge-offs, and estimates of the adequacy of the allowance for loan losses, increased competitive pressures, asset and credit quality deterioration, the impact of proposed or imposed tariffs by the U.S. government or retaliatory tariffs proposed or imposed by U.S. trading partners that could have an adverse impact on customers or any recession or slowdown in economic growth particularly in the markets in which Mid Penn or 1st Colonial operate, and legislative, regulatory, and fiscal policy changes and related compliance costs. These factors are not necessarily all of the factors that could cause Mid Penn’s or 1st Colonial’s actual results, performance, or achievements to differ materially from those expressed in or implied by any of the forward-looking statements. Other unknown or unpredictable factors also could harm Mid Penn’s or 1st Colonial’s results.

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.

ADDITIONAL INFORMATION AND WHERE TO FIND IT

In connection with the Transaction, Mid Penn filed with the Securities and Exchange Commission (the “SEC”) a Registration Statement on Form S-4 (the “Registration Statement”), which became effective on December 19, 2025 and which includes a proxy statement of 1st Colonial and a prospectus of Mid Penn, dated December 19, 2025 (the “proxy statement/prospectus”), as well as other relevant documents concerning the Transaction. The definitive proxy statement/prospectus was mailed to the shareholders of 1st Colonial as of the record date established for voting of the Transaction and other related matters and the vote on such matters will occur at the special virtual meeting of 1st Colonial shareholders on February 11, 2026. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. SHAREHOLDERS OF 1ST COLONIAL ARE URGED TO READ THE REGISTRATION STATEMENT AND THE PROXY STATEMENT/PROSPECTUS AND EACH OTHER RELEVANT DOCUMENT FILED WITH THE SEC BY MID PENN IN CONNECTION WITH THE TRANSACTION, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY CONTAIN IMPORTANT INFORMATION.

The proxy statement/prospectus was mailed to 1^st Colonial shareholders as of the record date on December 30, 2025. Shareholders may also obtain a free copy of the proxy statement/prospectus, as well as other filings containing information about the Transaction, Mid Penn and 1st Colonial, without charge, at the SEC’s website, http://www.sec.gov. Copies of the proxy statement/prospectus and the filings with the SEC that are incorporated by reference in the proxy statement/prospectus can also be obtained, without charge, by directing a request to 1st Colonial’s Investor Relations via email at IR@1stcolonial.com or by contacting Laurel Hill Advisor Group, 1^st Colonial’s proxy solicitor, at 516-933-3100 (for banks and brokers) or 888-742-1305 (for all others).

PARTICIPANTS IN THE SOLICITATION

Mid Penn, 1st Colonial and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of 1st Colonial in connection with the Transaction under the rules of the SEC. Information regarding Mid Penn’s directors and executive officers is available in Mid Penn’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, which was filed with the SEC on March 13, 2025 and in Mid Penn’s definitive proxy statement relating to its 2025 Annual Meeting of Shareholders, which was filed with the SEC on March 28, 2025; and other documents filed by Mid Penn with the SEC. Additional information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, is contained in the proxy statement/prospectus relating to the Transaction. Free copies of this proxy statement/prospectus may also be obtained as described in the preceding paragraph.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260127826431/en/

For more information, contact

Mary Kay Shea at 856‑885-2391

Source: 1st Colonial Bancorp, Inc.