1st Colonial Bancorp Reports Increases in Net Income, Assets, Deposits and Loans.

COLLINGSWOOD, N.J. -- 1st Colonial Bancorp, Inc. (OTC:FCOB), the holding company for 1st Colonial National Bank, today announced that for the six months ended June 30, 2005, it had net income of $371,000, representing a $138,000 or 59.2% increase over the prior year. For the three months ended June 30, 2005, net income was $190,000 compared to $124,000 for the comparable period ended June 30, 2004. It also reported that its total assets and loans had increased by 27.1% and 13.8% respectively since June 30, 2004.

Gerry Banmiller, the President and Chief Executive Officer of 1st Colonial, said, "We have made great strides deploying the capital raised in our public offering that closed in April, 2004. As a leading community bank in our market area, we intend to continue to strive to meet the banking needs of our local businesses and residents. Our efforts to do so will be facilitated by our planned full service branch office to be located at 2802 Route 130, Cinnaminson, New Jersey. On July 18, 2005, the Bank received OCC approval for this branch, and we anticipate that the office will be opened by the fourth quarter of this year."

The Bank also announced that it has completed the distribution of the five percent stock dividend declared on January 19, 2005. The dividend was distributed on April 15, 2005 on all issued and outstanding shares of common stock held of record as of April 1, 2005. "This stock dividend is a token of our appreciation to our shareholders for their support," said Mr. Banmiller.

At June 30, 2005, 1st Colonial reported $158.3 million in assets and $84.8 million in loans. These amounts reflect an increase of $33.8 million in assets and $10.3 million in loans from June 30, 2004. Deposits were $131.8 million, an increase of $28.7 million or 27.8% from June 30, 2004.

1st Colonial also reported a 21.1% increase in net interest income, to $2.3 million for the six months ended June 30, 2005 from $1.9 million for the comparable period ended June 30, 2004. For the three-month period ended June 30, 2005, the Company's reported a 20.7% increase in net interest income from the comparable period last year. Net interest income for the three-month period was $1.2 million compared to $953,000 for the three months ended June 30, 2004. According to Gerry Banmiller, "strong growth in our loan portfolio has resulted in substantial net interest income growth."

1st Colonial's 59.2% increase in net income for the six months ended June 30, 2005 compared to the comparable period in 2004, enabled its diluted earnings per share to increase to $0.15 compared to $0.12 in the prior period. For the three months ended June 30, 2005, net income increased 53.2% from $124,000 in 2004 to $190,000 in 2005. Diluted earnings per share increased from $.06 for the three months ended June 30, 2004 to $0.07 for the most recent three-month period. This increase was the result of the deployment of capital raised during the second quarter of 2004. These funds were fully deployed for the entire second quarter of 2005. The earnings per share numbers for both periods have been adjusted to reflect the 5% stock dividend paid on April 15, 2005.

For the six months ended June 30, 2005, other income increased approximately $26,000 or 18.4% compared to the comparable prior period. This was due primarily to increased account fees of $14,000, an increase in ATM fees of $10,000, the receipt $5,000 as a tentative settlement in a class action lawsuit of which the Bank participated as a member of the Pulse EFT network, offset by lower gains on loans sold of $8,000. The remaining increase was volume related. There was no significant change in other income for the three months ended June 30, 2005 compared the comparable prior period.

For the six months ended June 30, 2005, other expense increased approximately $221,000 or 14.8% from the comparable prior period. Most of these increases were growth related. Employee salaries and benefits increased $116,000. Due to increased staffing levels, occupancy and equipment expenses increased approximately $38,000. Advertising expenses increased $47,000 for the six months ended June 30, 2005 as compared to the six months ended June 30, 2004. Professional fees increased $14,000 for the six months ended June 30, 2005 compared to the comparable prior period. For the three months ended June 30, 2005, other expense increased approximately $132,000 or 17.3% as compared to the comparable period in 2004. As with the six-month comparison, most of these increases were growth related. Employee related expenses increased $70,000, occupancy and equipment increased $20,000, and advertising increased $27,000. Professional fees and all other expenses accounted for the remaining $15,000 increase.

At the Company's annual meeting held on April 27, 2005, the following Class 1 directors were elected to serve a term of three years: Gerard M. Banmiller, Mary R. Burke, Thomas A. Clark, III and Letitia G. Colombi. Amendments to increase the number of shares available for issuance in the Employee Stock Option Plan from 78,750 to 150,000 and the number of shares available for issuance in the Stock Option Plan for Non-Employee Directors from 52,500 to 100,000 were also approved. The Shareholders also ratified the audit committee's appointment of KMPG LLP as 1st Colonial Bancorp's independent auditors for the fiscal year ending December 31, 2005.

The Company announced that during the six months ended June 30, 2005, certain warrants to purchase 17,894 shares were exercised resulting in $150,000 in additional capital. These warrants were issued in the 2002 unit offering. In addition, in June 2005, warrants that had been issued in its initial public offering in June 2000 were exercised, resulting in the Company's issuance of 63,592 shares and $579,000 in additional capital to the Company. The remaining year 2000 warrants representing 38,282 shares were not exercised and expired on June 29, 2005.

Highlights as of June 30, 2005 and June 30, 2004, and comparing the three and six months ended June 30, 2005 to the three and six months ended June 30, 2004, respectively (all unaudited), include the following (dollars in thousands, except per share data):

At            At        $ increase/   % increase/
               June 30, 2005 June 30, 2004  (decrease)    (decrease)
               ------------- ------------- ------------- -------------

Total assets   $    158,343  $    124,555  $     33,788          27.1%

Total loans          84,843        74,538        10,305          13.8%

Total deposits      131,806       103,149        28,657          27.8%

Shareholders'
 equity              18,408        16,795         1,613           9.6%


                             For the three months ended
               -------------------------------------------------------

                                            $ increase/   % increase/
               June 30, 2005 June 30, 2004  (decrease)    (decrease)
               ------------- ------------- ------------- -------------

Net interest
 income        $      1,151  $        953  $        198          20.8%

Provision for
 loan losses             30            68           (38)        -55.9%

Other income             83            82             1           1.2%

Other expense           897           833            64           7.7%

Net income              190           123            67          54.5%

Earnings per
 share,
 diluted       $       0.07  $       0.06  $       0.01          16.7%


                              For the six months ended
               -------------------------------------------------------

                                            $ increase/   % increase/
               June 30, 2005 June 30, 2004  (decrease)    (decrease)
               ------------- ------------- ------------- -------------

Net interest
 income        $      2,258  $      1,864  $        394          21.1%

Provision for
 loan losses            105           125           (20)        -16.0%

Other income            167           141            26          18.4%

Other expense         1,715         1,494           221          14.8%

Net income              371           233           138          59.2%

Earnings per
 share,
 diluted       $       0.15  $       0.12  $       0.03          25.0%


                                    At and for the
                                   six months ended
                             ---------------------------
                             June 30, 2005 June 30, 2004
                             ------------- -------------
Key financial
 ratios
Return on
 average
 assets (1)                          0.51%         0.39%

Return of
 average
 equity (1)                          4.23%         3.50%

Net interest
 margin                              3.32%         3.32%

Efficiency
 ratio (1) (2)                      70.72%        74.51%

Non-interest
 income/
 operating
 revenue                             6.89%         7.03%

Non-performing
 assets/assets                       0.03%         0.00%

Net charge
 offs/average
 loans (1)                           0.00%         0.00%

Allowance for
 loan
 losses/loans                        1.28%         1.21%


(1) Annualized

(2) Efficiency ratio is total other expense divided by the sum of net
    interest income and total other income.

1st Colonial National Bank is a locally managed community bank headquartered in Collingswood, New Jersey. Through its two branches, the Bank strives to offer highly personalized service combined with extended lobby and drive-through hours, and low fees and charges. The Bank services consumers as well as small- to mid-sized businesses. Services include free personal checking, savings, money market and certificates of deposit accounts. In addition, the bank offers consumer and commercial loans, lines of credit, home equity loans, ATM cards, debit cards, free Internet banking and free telephone banking.