Friday, November 27, 2015

"2013 will be a replica of 2012": banker

1st Colonial re-instates its dividend on rising home loans

"2013 will be a replica of 2012": banker


With home loans recovering and profits nearly double last year's level, 1st Colonial Bank, Collingswood, is re-instating its dividend, two years after stopping payments to shareholders because "I wanted to avoid sending the wrong message" during the recession, says boss Gerard M. "Jerry" Banmiller.

The bank's 5% payout will be paid April 15 to shareholders on record April 1. Banmiller says he's paying shareholders because profits for the first nine months of 2012 have risen to $1.04 million, or 33 cents a share, from $573,000, or 18 cents a share.

What's going right? "Residential lending," Banmiller told me. "We've made a good buck making and selling residential mortgage loans. We'll finish the year half a million dollars ahead versus last year." Fannie Mae, Ginnie Mae, the Federal Home Loan Bank Board, and, lately, GMAC  are busy buying loans and packaging them for investors, Banmiller says.

What about next year's prospects? "The fiscal cliff is a load of crap," he told me. President Obama is using it to "extort" higher tax rates from Repbulicans, while "continuing to mess around with the owners of capital," he said. But that won't stall the slow recovery, he added: 1st Colonial expects that "2013 will be a replica of 2012."

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About this blog

PhillyDeals posts interviews, drafts and updates that Joseph N. DiStefano writes alongside his Sunday and Monday columns and ongoing articles about Philadelphia-area business.

DiStefano studied economics, history and a little engineering at Penn. He taught writing and research at St. Joe’s. He has written for the Inquirer since 1989, except when he left a few times to work at Bloomberg and elsewhere. He wrote the book Comcasted, and raised six kids with his wife, who is a saint.

Reach Joseph N. at, 215.854.5194, @PhillyJoeD. Read his blog posts at and his Inquirer columns at Bloomberg posts his items at NH BLG_PHILLYDEAL.

Reach Joseph at or 215 854 5194.

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