Wednesday, July 23, 2014
Inquirer Daily News

"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."

Joseph N. DiStefano
About this blog

PhillyDeals posts raw drafts and updates of Joseph N. DiStefano's columns and stories about Philly-area finance, investment, commercial real estate, tech, hiring and public spending, which he's been writing since 1989, mostly for the Philadelphia Inquirer.

DiStefano studied economics, history and a little engineering at Penn, taught writing at St. Joe's, and has written the book Comcasted, more than a thousand columns, and thousands of articles, and raised six children with his wife, who is a saint.

Reach Joseph N. at JoeD@phillynews.com or 215 854 5194.

Joseph N. DiStefano
Business Videos:
Also on Philly.com:
Stay Connected