UNITED STATES
                SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C. 20549

                           FORM 10-QSB

(X)  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
     SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended June 30, 2003.

                               OR

( )  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
     SECURITIES EXCHANGE ACT OF 1934.

Commission file number 333-84114


                   1st Colonial Bancorp, Inc.
      (Exact name of registrant as specified in its charter)

             Pennsylvania                      01-0715542
    (State or other jurisdiction of        (I.R.S. Employer
     incorporation or organization)        Identification No.)

          1040 Haddon Avenue                       08108
            Collingswood, NJ                     (Zip Code)
         (Address of Principal
           Executive Offices)

                          (856) 858-1100
         (Registrant's telephone number, including area code)

Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the Registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

                         Yes  X           No

Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practicable
date:

                                    Number of Shares Outstanding
         Class                          as of August 12, 2003

Common Stock, without par value               1,343,790



                       INDEX TO FORM 10-QSB

PART I.  FINANCIAL INFORMATION                              PAGE

  Item 1.  Financial Statements

           Consolidated Statements of Financial Condition
           June 30, 2003 (Unaudited) and
           December 31, 2002                                  4

           Consolidated Statements of Income and
           Comprehensive Income (Unaudited) - For the
           Three and Six Months Ended June 30, 2003
           and 2002                                           6

           Consolidated Statements of Cash Flows -
           (Unaudited) For the Six Months Ended
           June 30, 2003 and 2002                             8

           Notes to Financial Statements                     10

  Item 2.  Management's Discussion and Analysis of
           Financial Condition and Results of Operations     18

  Item 3.  Controls and Procedures                           26


PART II.   OTHER INFORMATION

  Item 4.  Submission of Matters to a Vote of
           Security Holders                                  27

  Item 6.  Exhibits and Reports on Form 8-K                  28

  Signatures                                                 30



                 PART 1 - FINANCIAL INFORMATION
            1st COLONIAL BANCORP, INC. AND SUBSIDIARY
         CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Dollars in thousands)

<TABLE>
<CAPTION>
                                                   June 30,     December 31,
                                                     2003            2002
                                                 -------------   ------------
                                                   (unaudited)

                                              <c>             <c>
Assets:
Cash and due from banks                             $  5,229       $ 6,156
Federal funds sold                                    10,413         6,005
Investments held to maturity                           5,091         1,220
Securities available for sale (amortized
  cost of $26,856 at June 30, 2003 and
  $29,776 at December 31, 2002)                       27,037        29,934
Mortgages loans available for sale                       963            63
Loans                                                 58,478        54,198
  Less: Allowance for loan losses                       (695)         (576)
                                                     -------       -------
  Net loans                                           57,783        53,622
Bank premises and equipment, net                         961           763
Accrued interest receivable                              351           341
Deferred tax assets                                      174           181
Other assets                                             123            35
                                                     -------       -------
Total Assets                                        $108,125       $98,320
                                                     =======       =======
Liabilities:
Demand deposits                                     $ 52,754      $ 46,371
Savings deposits                                      23,117        19,671
Other time deposits                                   19,606        16,906
                                                     -------       -------
  Total deposits                                      95,477        82,948

Short-term borrowings                                  3,073         6,033
Accrued interest payable                                  12            10
Taxes payable                                             28            51
Other liabilities                                        101            76
                                                     -------       -------
Total liabilities                                   $ 98,691      $ 89,118
                                                     =======       =======
Shareholders' equity:
Common Stock (no par value)
    Authorized: 5,000,000 shares, issued
    and outstanding: 1,343,790 shares at
    June 30, 2003 and 1,343,580 shares
    at December 31, 2002
  Additional paid in capital                           9,208         8,935
  Retained earnings                                      111           166
  Accumulated other comprehensive income, net            115           101
                                                     -------       -------
      Total shareholders' equity                       9,434         9,202
                                                     -------       -------
      Total liabilities & shareholders' equity      $108,125      $ 98,320
                                                     =======       =======
</TABLE>

The accompanying notes are an integral part of these statements.



            1st COLONIAL BANCORP, INC. AND SUBSIDIARY
                CONSOLIDATED STATEMENTS OF INCOME
              AND COMPREHENSIVE INCOME (UNAUDITED)
      FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2003 AND 2002

(Dollars in thousands, except per share data)

<TABLE>
<CAPTION>

                                                     Three months ended    Six months ended
                                                           June 30,           June 30,
                                                     ------------------   -----------------
                                                      2003        2002      2003      2002
                                                     -----       ------   -------   -------

                                                  <c>         <c>      <c>       <c>
Interest income:
Interest and fees on loans                          $  921       $ 789    $1,820    $1,469
Interest on federal funds sold                          32          27        45        83
Interest and dividends on investments:
  Taxable                                              207         169       452       364
  Nontaxable                                            10           2        15         4
                                                     -----       -----    ------    ------
    Total interest income                            1,170         987     2,332     1,920
                                                     -----       -----    ------    ------

Interest expense:
Interest on demand deposits                            133          99       253       153
Interest on savings deposits                            38          41        81       120
Interest on time deposits                              142          77       282       166
Interest on short-term borrowings                       12          22        24        45
                                                     -----       -----    ------    ------
    Total interest expense                             325         239       640       484
                                                     -----       -----    ------    ------
Net interest income                                    845         748     1,692     1,436
Provision for loan losses                               60          75       120       175
                                                     -----       -----    ------    ------
Net interest income after
  provision for loan losses                            785         673     1,572     1,261

Other income:
  Service charges on deposit accounts                   35          18        68        33
  Gain on sale of mortgage loans                        30          10        50        23
  Other income, service charges and fees                17           9        25        11
  Gain on sale of investments                            -           1         -         1
                                                     -----       -----    ------    ------
    Total other income                                  82          38       143        68

Other expenses:
  Salaries, wages and employee benefits                291         178       570       369
  Occupancy and equipment expenses                      78          49       160        93
  Advertising expense                                   44          18        78        25
  Data processing expense                               69          42       131        83
  Organization expenses                                  -           3         -         3
  Other Operating Expenses                             199         182       399       335
                                                     -----       -----    ------    ------
    Total other expenses                               681         472     1,338       908

Income before income taxes                             186         239       377       421
Income tax expense                                      75          96       152       169
                                                     -----       -----    ------    ------
Net income                                           $ 111       $ 143    $  225    $  252
                                                     -----       -----    ------    ------
Other comprehensive income                              53          61        14       (12)
                                                     -----       -----    ------    ------
    Total comprehensive income                       $ 164       $ 204   $  239    $  240
                                                     =====       =====    ======    ======

Net income per share information:
  Basic earnings per share                           $0.08       $0.13     $0.17     $0.23
  Diluted earnings per share                         $0.08       $0.13     $0.17     $0.23
</TABLE>

The accompanying notes are an integral part of these statements.



            1st COLONIAL BANCORP, INC. AND SUBSIDIARY
        CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Dollars in thousands)

<TABLE>
<CAPTION>
                                                    For the Six Months Ended
                                                            June 30,
                                                    -------------------------
                                                       2003            2002
                                                    ---------       ---------

                                                 <c>            <c>

  Net income                                        $    225        $    252
Adjustments to reconcile net income to net
  cash used/(provided) by operating activities:
  Depreciation and amortization                           52              42
  Amortization of premium (discount)on securities, net    90               9
  Amortization of deferred loan fees/cost, net            23              14
  Gain on sale of mortgage loans available for sale      (50)            (23)
  Gain on sale of securities                               -              (1)
  Provision for loan losses                              120             175
  Cash disbursed for mortgage banking activities     (11,327)         (4,283)
  Cash received for mortgage banking activities       10,477           4,486
  (Increase)decrease in accrued interest receivable      (10)             14
  (Increase)decrease in deferred tax asset               ( 2)             18
  Increase in other assets                               (88)            ( 5)
  Increase(decrease)in accrued interest payable            2             (19)
  Decrease in income taxes payable                       (23)            (15)
  Increase(decrease)in other liabilities                  25             (13)
                                                    --------         -------
  Total Adjustments                                     (711)            399
                                                    ---------        --------
Net cash (used)/provided by operating activities        (486)            651

Cash flows used in investing activities:
  Proceeds from maturity and sale of securities
    available-for-sale                                21,801           7,992
  Proceeds from maturity of securities held
    to maturity                                           95             931
  Purchases of securities available-for-sale         (21,259)         (3,000)
  Purchases of securities held to maturity            (3,966)           ( 95)
  Repayment of principal of securities
    available-for-sale                                 2,288             417
  Increase in loans receivable, net                   (4,304)        (11,082)
  Capital expenditures                                  (250)            (49)
                                                     --------        --------
Net cash used in investing activities                 (5,595)         (4,886)

Cash flows provided/(used) in financing activities:
  Net increase(decrease) in deposits                  12,529          (6,375)
  Net (decrease)increase in short-term borrowings     (2,960)          1,574
  Exercise of warrants                                     2               -
  Expenses for issuance of common stock                   (9)              -
                                                     --------        --------
Net cash provided/(used) in financing activities        9,562         (4,801)
Net increase(decrease) in cash and cash equivalents     3,481         (9,036)
Cash and cash equivalents as of beginning of period    12,161         23,930
                                                     --------        --------
Cash and cash equivalents as of June 30,            $  15,642        $ 14,894
                                                     ========        ========

Supplemental disclosure of cash flow information:
Cash paid during the period for:
  Interest                                           $    638        $   503
  Income taxes                                            213            166
Noncash items:
  Change in unrealized gains for securities
   available-for-sale, net of taxes of $9 for
   2003 and $7 for 2002                                   14            ( 12)
  Transferred from retained earnings to additional
   paid in capital as a result of the 5% stock
   dividend                                              280
</TABLE>

The accompanying notes are an integral part of these statements.



                  NOTES TO FINANCIAL STATEMENTS

Note 1.  General

     1st Colonial Bancorp, Inc. (the "Company") was formed on
February 26, 2002 pursuant to the filing of Articles of
Incorporation with the Commonwealth of Pennsylvania.  Prior to
June 30, 2002, the Company did not have any material assets or
liabilities.  On June 30, 2002, the Company acquired 1st
Colonial National Bank (the "Bank") pursuant to the merger of
the Bank with and into Interim 1st Colonial National Bank
("Interim"), a wholly-owned subsidiary of the Company.  The
acquisition was part of the reorganization of the Bank from a
stand-alone national bank to a bank holding company structure.
The reorganization was approved by the Office of the Comptroller
of the Currency and by the Federal Reserve Bank of Philadelphia
on June 6, 2002.

     In the reorganization, each existing shareholder of the
Bank received an equal number of shares of the Company's common
stock in exchange for his or her Bank common stock.  The shares
of the Company's common stock issued in the reorganization were
registered under the Securities Act of 1933, as amended,
pursuant to the Company's Registration Statement No. 333-84114
filed with the SEC.

     The reorganization was accounted for in a manner similar to
a pooling of interests.  The Bank's business and operations were
unchanged by the reorganization and merger.  All of the
directors of the Company are directors of the Bank.

Note 2.  Summary of Significant Accounting Policies

     The consolidated financial statements include the accounts
of the Company and its wholly owned subsidiary, 1st Colonial
National Bank.  Any material intercompany balances and
transactions have been eliminated in consolidation.

     In the opinion of management, the accompanying unaudited
financial statements contain adjustments consisting only of
normal recurring adjustments, necessary to present fairly the
consolidated financial position of the Company as of June 30,
2003 and December 31, 2002 and the consolidated results of
operations for the three and six month periods ended June 30,
2003 and 2002.  The accounting policies and reporting practices
of the Company are in accordance with accounting principles
generally accepted in the United States of America and have been
followed on a consistent basis.

     The accompanying financial statements have been prepared in
accordance with instructions for Form 10-QSB and accordingly do
not include all of the detailed schedules, information and notes
necessary for a fair presentation of financial condition,
results of operations and cash flows in accordance with
accounting principles generally accepted in the United States of
America.

     The results of operations for the three and six months
ended June 30, 2003 are not necessarily indicative of the
results to be expected for the full year.

     The preparation of financial statements in conformity with
accounting principles generally accepted in the United States of
America requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of income and
expenses during the reporting period. Actual results could
differ from those estimates.  Material estimates that are
particularly susceptible to significant change in the near-term
relate to the determination of the allowance for loan losses and
the valuation of the deferred tax assets.

Note 3.  Earnings Per Share

     Basic earnings per common share is calculated on the basis
of the weighted average number of common shares outstanding.
Diluted earnings per common share includes dilutive common stock
equivalents as computed under the treasury stock method using
average common stock prices for the respective period.  All
calculations have been adjusted to account for the 5% stock
dividend paid on April 15, 2003.  Options and warrants to
purchase 435,132 and 142,343 shares of common stock were
outstanding at June 30, 2003 and 2002, respectively, and to the
extent dilutive, were included in the computation of earnings
per diluted common share.

     The following is a reconciliation of the numerators and
denominators of the basic and diluted earnings per common share
calculations.

         (Dollars are in thousands, except per share data)

<TABLE>
<CAPTION>
                                              Three months       Six months
                                                   ended            ended
                                                 June 30,         June 30,
                                              --------------   --------------
                                               2003     2002    2003     2002
                                              ------    ----   ------   -----

                                           <c>      <c>     <c>      <c>
Numerator:
  Net Income                                  $  111   $ 143   $  225   $ 252

Denominator for basic earnings per share-
  weighted average shares                      1,344   1,076    1,344   1,076

Effect of dilutive securities(1):
  Director and employee stock options             10      15        8      12
  Warrants                                        11       0        5       0

Denominator for diluted earnings per
  share- adjusted weighted average
  shares and assumed exercised                 1,365   1,091    1,357   1,088

Basic earnings per share                      $ 0.08   $0.13   $ 0.17   $0.23
Diluted earnings per share                    $ 0.08   $0.13   $ 0.17   $0.23

(1) For the three and six months ended June 30, 2003, 92,400 warrants and
    10,501 options are anti-dilutive and are not included in the above
    calculations.

</TABLE>

     Of the following warrants and options, those that were
issued prior to June 30, 2002 were issued by the Bank with
respect to Bank common stock.  Pursuant to the Agreement and
Plan of Reorganization and Merger dated as of March 5, 2002
among the Company, the Bank and Interim, as of June 30, 2002
these outstanding warrants and stock options became warrants and
stock options to purchase the common stock of the Company.

     Warrants were issued to the Bank's underwriter in
connection with its initial public offering of common stock in
June 2000.  Total warrants outstanding at June 30, 2003 entitled
the holders to purchase 92,400 shares of common stock at a
purchase price of $10.04 per share.  These warrants are
exercisable until June 29, 2006.

     On June 29, 2000, the Bank issued stock options to the
Bank's employees entitling them to purchase a total of 16,403
shares of Bank common stock.  These options will vest and become
exercisable in five equal annual installments commencing on the
first anniversary of the date of grant and continuing on each
successive anniversary of such date.  These options are
exercisable at $6.93 per share for a period of ten years after
the grant date.  At June 30, 2003, all of these options were
still outstanding.

     On June 29, 2000, the Bank also issued stock options to the
Bank's directors entitling them to purchase a total of 4,981
shares of Bank common stock.  These options are exercisable at
$6.93 per share for a period of ten years after the date of the
grant.  These options have fully vested.  Of these options, at
June 30, 2003, options to purchase 4,395 shares of the Company's
common stock were still outstanding.

     In April 2001, options to purchase a total of 6,930 shares
of Bank common stock were granted to the Bank's directors at an
exercise price of $8.66 per share.  These options are fully
vested and expire ten years from the date of the grant.  Of
these options, as of June 30, 2003, options to purchase 6,069
shares of the Company's common stock were still outstanding.

     In June 2001, options to purchase a total of 4,109 shares
of Bank common stock were granted to certain Bank employees at
an exercise price of $8.66 per share, of which 20% become vested
on each anniversary of the grant date.  These options expire ten
years from the date of the grant.  At June 30, 2003, all of
these options were still outstanding.

     On February 20, 2002, options to purchase a total of 10,501
shares of common stock were granted to certain Bank employees at
an exercise price of $9.76 per share, of which 20% become vested
on each anniversary of the grant date.  These options expire ten
years from the date of the grant.  At June 30, 2003, all of
these options were still outstanding.

     On June 12, 2002, options to purchase a total of 8,466
shares of common stock were granted to the Bank's directors at
an exercise price of $9.12 per share.  These options become
fully vested eleven months from the date of the grant and expire
ten years from the date of the grant.  At June 30, 2003, all of
these options were still outstanding.

     Warrants were issued to purchasers of the Company's common
stock in an offering that closed on December 16, 2002.  Warrants
were issued for 267,119 shares of the Company's common stock at
a price of $9.14 per share.  All of these warrants are
exercisable and expire three years from issue date.  On March
25, 2003, warrants for 210 shares were exercised.  At June 30,
2003, of the warrants issued on December 16, 2002, warrants for
266,909 were still outstanding.

     On January 15, 2003, options to purchase a total of 10,500
shares of common stock were granted to certain Bank employees at
an exercise price of $8.21 per share, of which 20% become vested
on each anniversary of the grant date.  These options expire ten
years from the date of the grant.  At June 30, 2003, all of
these options were still outstanding.

     On January 15, 2003, options to purchase a total of 7,880
shares of common stock were granted to the Bank's directors at
an exercise price of $8.21 per share.  These options become
fully vested eleven months from the date of the grant and expire
ten years from the date of the grant.  At June 30, 2003, all of
these options were still outstanding.

     On April 22, 2003, options to purchase a total of 7,500
shares of common stock were granted to the Bank's directors at
an exercise price of $9.15 per share.  These options become
fully vested eleven months from the date of the grant and expire
ten years from the date of the grant.  At June 30, 2003, all of
these options were still outstanding.

Note 4.  Allowance for Loan Losses

     The allowance for loan losses is established through a
provision for loan losses charged to operations.  The allowance
is maintained at a level that management believes will be
adequate to absorb estimated losses on existing loans based on
the collectibility of the loans and prior loss experience.
Management uses significant estimates to determine the allowance
for loan losses.  Management's evaluations consider such factors
as concentrations of credit risk, changes in the nature and
volume of the portfolio, overall portfolio quality, review of
specific problem loans, current economic conditions and trends
that may affect the borrowers' ability to pay, and prior loss
experience within various categories of the portfolio.  All
loans greater than $100,000 and all classified loans are
analyzed individually.  While management believes the allowance
for loan losses is currently appropriate, future additions to
the allowance may be necessary based on changes in general
economic conditions and/or the condition of specific borrowers.

     In addition, regulatory authorities, as an integral part of
their examinations, periodically review the allowance for loan
losses.  They may require additions to the allowance based upon
their judgments about information available  to them at the time
of examination.

     In addition to management review, an external service
provides a detailed loan review analysis.  In the course of a
year, all loans in excess of $100,000 are reviewed and rated.
In addition, other smaller loans are reviewed on a random basis.
At each quarterly review cycle, all classified loans are
assigned a specific reserve allocation based on the guidelines
established in the Bank's credit policy which was approved by
the Board of Directors.

     The balance of any rated loan is deducted from the
remaining general portfolio classification.  The general
category is currently segregated by commercial real estate,
commercial and industrial loans, home equity loans and other
consumer loans.  Each category of loan is then assigned loss
factors based on a review of the following areas:  (i)
historical losses (due to limited loss experience, we use the
loss experience of peer banks as reported in the Uniform Bank
Performance Report); (ii) policies and procedures;
(iii) economic conditions; (iv) nature and volume;
(v) management; (vi) oversight; (vii) concentrations; and
(viii) external factors.  The sum of the assigned loss factors
is then applied to the outstanding balance of the respective
category.

     The Bank has no credit exposure to foreign countries or
foreign borrowers or highly leverages transactions.

     Loans charged off will represent the Bank's recognition of
losses previously provided for in the overall allowance for loan
losses through the provisions charged to operations in the
respective periods.

Note 5.  Litigation

     At June 30, 2003, the Company was neither engaged in any
existing nor aware of any pending material legal proceedings.
From time to time, the Company is a party to legal proceedings
within the normal course of business wherein it enforces its
security interest in loans made by it, and other matters of a
similar nature.

Note 6.  Stock Options

     At June 30, 2003, the Company has two stock-based
compensation plans, which are described more fully in note 3.
The Company accounts for those plans under the recognition and
measurement principles of APB Opinion No. 25, Accounting for
Stock Issued to Employees, and related interpretations.  No
stock-based employee compensation cost is reflected in net
income, as all options granted under those plans had an exercise
price equal to the market value of the underlying common stock
on the date of grant.  The following table illustrates the
effect on net income and earnings per share if the Company had
applied the fair value recognition provision of FASB Statement
No. 123, Accounting for Stock-Based Compensation, to stock-based
employee compensation.

<table>
<caption>

                                              Three Months Ended
                      ---------------------------------------------------------------------
                              June 30, 2003                         June 30, 2002
                      ---------------------------------   ---------------------------------
                                  Compensation                        Compensation
                      As reported   expense   Pro forma   As reported   expense   Pro forma
                      -----------   -------   ---------   -----------   -------   ---------

                   <c>           <c>       <c>         <c>           <c>       <c>

Net income            $   111          23         88            143          5        138
Basic earnings
  per share              0.08        0.01       0.07           0.13       0.00       0.13
Dilutive earnings
  per share              0.08        0.02       0.06           0.13       0.00       0.13


<caption>
                                              Six Months Ended
                      ---------------------------------------------------------------------
                              June 30, 2003                         June 30, 2002
                      ---------------------------------   ---------------------------------
                                  Compensation                        Compensation
                      As reported   expense   Pro forma   As reported   expense   Pro forma
                      -----------   -------   ---------   -----------   -------   ---------

                   <c>           <c>       <c>         <c>           <c>       <c>

Net income            $   225          42        183            252         13        239
Basic earnings
  per share              0.17        0.03       0.14           0.23       0.01       0.22
Dilutive earnings
  per share              0.17        0.04       0.13           0.23       0.01       0.22
</table>


Note 7.  Recent Accounting Pronouncements

           Accounting for Stock-Based Compensation

           In December 2002, FASB issued SFAS No. 148,
           Accounting for Stock-Based Compensation - Transition
           and Disclosure- an amendment of FASB Statement
           No. 123. SFAS No. 148 amends FASB Statement No. 123,
           Accounting for Stock-Based Compensation, to provide
           alternative methods of transition for a voluntary
           change to the fair value based method of accounting
           for stock-based employee compensation.  SFAS No. 148
           amends the disclosure requirements of Statement 123
           to require prominent disclosures in both annual and
           interim financial statements about the method of
           accounting for stock-based employee compensation and
           the effect of the method used on reported results.
           The provisions of SFAS No. 148 are effective for
           fiscal years ending after December 15, 2002.
           Adoption of SFAS No. 148 did not impact the Bank's
           earnings, financial condition, or equity.  However,
           the Company did modify its disclosures related to the
           method of accounting for stock-based employee
           compensation in accordance with SFAS No. 148.

           Grantor's Accounting and Disclosure Requirements for
           Guarantees

           During 2002, FASB Interpretation No. 45, Guarantor's
           Accounting and Disclosure Requirements for Guarantees
           Including Indirect Guarantees of Indebtedness of
           Others, was issued.  FASB Interpretation No. 45
           requires a guarantor to include disclosure of certain
           obligations, and if applicable, at the inception of
           the guarantee, recognize a liability for the fair
           value of other certain obligations undertaken in
           issuing a guarantee.  The recognition requirement is
           effective for guarantees issued or modified after
           December 31, 2002.  Adoption of FASB Interpretation
           No. 45 did not have an impact on the Company's
           earnings, financial condition, or equity.

           Consolidation of Variable Interest Entities

           During 2002, FASB Interpretation No. 46,
           Consolidation of Variable Interest Entities, was
           issued.  FASB Interpretation No. 46 clarifies the
           application of Accounting Research Bulletin No. 51
           and applies immediately to any variable interest
           entities created after January 31, 2003 and to
           variable interest entities in which an interest is
           obtained after that date.  Adoption of FASB
           Interpretation No. 46 did not have an impact on the
           Company's earnings, financial condition, or equity.

           Derivative Instruments and Hedging Activities

           In April 2003, the FASB issued Statement No. 149,
           Amendment of Statement 133 on Derivative Instruments
           and Hedging Activities.  This Statement amends and
           clarifies financial accounting and reporting for
           derivative instruments, including certain derivative
           instruments embedded in other contracts (collectively
           referred to as derivatives) and for hedging
           activities under FASB Statement No. 133, Accounting
           for Derivative Instruments and Hedging Activities.
           With some exceptions, this Statement is effective for
           contracts entered into or modified after June 30,
           2003.  The Company does not expect the adoption of
           this Statement to have an impact on its earnings,
           financial condition, or equity.

           Financial Instruments with Debt and Equity
           Characteristics

          In May 2003, the FASB issued SFAS No. 150, Accounting
          for Certain Financial Instruments with Characteristics
          of both Liabilities and Equity.  This Statement
          establishes standards for how an issuer classifies and
          measures certain financial instruments with
          characteristics of both liabilities and equity.  It
          requires that an issuer classify a financial
          instrument that is within its scope as a liability (or
          an asset in some circumstances).  SFAS No. 150 is
          effective for financial instruments entered into or
          modified after May 31, 2003, and otherwise is
          effective at the beginning of the first interim period
          beginning after June 15, 2003, except for mandatorily
          redeemable financial instruments of nonpublic
          entities.  The Company does not expect the adoption of
          this Statement to have an impact on its financial
          position or results of operations.

Item 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
          CONDITION AND RESULTS OF OPERATIONS

GENERAL

     The Company was formed in February 2002 and had no material
assets until its acquisition of the Bank on June 30, 2002.  See
Note 1 to the Financial Statements for a description of this
acquisition and the related transactions.  Therefore, prior to
June 30, 2002 it had no results of operations. Further, as of
this filing, the only material asset of the Company is the
common stock of the Bank. Accordingly, the following discussion
and analysis relates to the financial condition and results of
operations of the Bank, and should be read in conjunction with
the financial statements and related notes appearing on the
preceding pages as well as in the Company's Annual Report on
Form 10-KSB for the fiscal year ended December 31, 2002 filed
with Securities and Exchange Commission.  Unaudited results of
operations for the three and six months ended June 30, 2003 are
compared to the unaudited results of operations for the
comparable periods ended June 30, 2002.  Such information is
based upon the historical financial information available as of
the dates indicated.  Results of operations for the three and
six months ended June 30, 2003 are not necessarily indicative of
results to be attained for any other period.

     Statements regarding the Company's expectations as to
financial results and other aspects of its business set forth in
this Form 10-QSB or otherwise made in writing or orally by the
Company may constitute forward looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Although the Company believes that its expectations are based on
reasonable assumptions within the bounds of its knowledge of its
business and operations, there can be no assurance that actual
results will not differ materially from its expectations.
Factors that might cause or contribute to such differences
include, but are not limited to, the Bank's ability to establish
and grow additional branches, the uncertainty of future
profitability, changing economic conditions and monetary
policies, uncertainty of interest rates, risks inherent in
banking transactions, competition, extent of government
regulations, and delay in or failure in obtaining regulatory
approvals.

     The Company is a bank holding company, and its only
subsidiary is the Bank. The Bank conducts community banking
activities by accepting deposits from the public and investing
the proceeds in loans and investment securities.  The Bank's
lending products include commercial loans and lines of credit,
consumer and home equity loans, and multi-family residential and
non-residential real estate loans.  In order to manage its
liquidity and interest rate risk, the Bank maintains an
investment portfolio consisting of municipal, U.S. government
and mortgage-backed securities, most of which are investment
grade.  The Bank's loan and investment portfolios are funded
with deposits as well as collateralized borrowings secured by
the Bank's investment securities.  The Bank's earnings are
largely dependent upon its net interest income (the difference
between what it earns on its loans and investments and what it
pays on its deposits and borrowings).  In addition to net
interest income, the Bank's net income is impacted by its loan
loss provision, non-interest income (mostly deposit fees and
income from sale of loans held for sale) and non-interest
expense (such as salaries and benefits, professional fees,
occupancy cost and data processing expenses).

     On December 18, 2002, the Company's Board of Directors
voted to declare a five percent stock dividend to the Company's
shareholders.  The dividend was distributed on April 15, 2003 to
the holders of record of all issued and outstanding shares of
Company common stock as of April 1, 2003.  The total number of
shares issued pursuant to the 5% stock dividend was 64,047
shares.  The total number of shares outstanding immediately
after the payment of this dividend was 1,343,790 shares.

     On December 20, 2002, the Company completed its public
offering of units of common stock and warrants.  In the
offering, the Company sold 254,399 units at an offering price of
$8.50 per unit.  Each unit consisted of one share of common
stock and a warrant to purchase an additional share of common
stock during the three year period ending December 20, 2005 at a
price of $9.60 per share.  As a result of the 5% stock dividend
discussed above, there are currently warrants outstanding to
purchase 266,909 shares of the Company's common stock at a price
of $9.14 per share. 1st Colonial raised net proceeds of $1.93
million in the offering.  These proceeds are being used to fund,
among other things, the continued growth of the Bank, including
the establishment of additional branches.

     The Bank's main office is located at 1040 Haddon Avenue,
Collingswood, New Jersey.  On January 16, 2003, the Bank opened
a branch office at 321 Broadway, Westville, New Jersey.

     At June 30, 2003, the Bank had 20 full-time and 3 part-time
employees.

CRITICAL ACCOUNTING MATTERS

     The preparation of financial statements in conformity with
accounting principles generally accepted in the United States of
America requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of income and
expenses during the reporting period.  Actual results could
differ from those estimates.  Material estimates that are
particularly susceptible to significant change in the near-term
relate to the determination of the allowance for loan losses and
the valuation of the deferred tax assets.

     See note 4 to the financial statements in Item 1 above for
a description of the Bank's policies with respect to the
allowance for loan losses.

     Deferred tax assets and liabilities are recognized for the
future tax consequences attributable to differences between the
financial statement carrying amounts of existing assets and
liabilities and their respective tax bases, as well as operating
loss carryforwards.  Deferred tax assets and liabilities are
measured using enacted tax rates expected to apply to taxable
income in the years in which those temporary differences are
expected to be recovered or settled.  The effect on deferred tax
assets and liabilities of a change in tax rates is recognized in
income in the period that includes the enactment date.  A
valuation allowance is established against deferred tax assets
when, in the judgment of management, it is more likely that not
that such deferred tax assets will not become available.

     The realizability of deferred tax assets is dependent upon
various factors, including the generation of future taxable
income, the existence of taxes paid and recoverable, the
reversal of deferred tax liabilities, and tax planning
strategies.  Based upon these and other factors, management
determined that it is more likely than not that the Bank will
realize the benefits of these deferred tax assets.

FINANCIAL CONDITION

     The Company's assets totaled $108.1 million at June 30,
2003, as compared to $98.3 million at December 31, 2002, an
increase of $9.8 million or 10.0%. This increase was caused
principally by an increase in the Bank's deposits of $12.5
million offset by a $3.0 million reduction in short-term
borrowings.  The Bank's assets at June 30, 2003, consisted
primarily of cash and cash equivalents, including federal funds
sold, which totaled $15.6 million, investment securities, which
totaled $32.1 million and loans, including loans available for
sale, which totaled $59.4 million.  The Bank's premises and
equipment totaled $961,000 at June 30, 2003, consisting
primarily of leasehold improvements at the Collingswood branch
and land and improvements for the Westville branch.  The Bank's
assets at December 31, 2002 consisted primarily of cash and cash
equivalents, including federal funds sold, which totaled $12.2
million, investment securities which totaled $31.2 million, and
loans which totaled $54.3 million.

     During the first six months of 2003, the Bank continued to
concentrate its efforts in building its loan portfolio.  While
the growth slowed during the second quarter, total loans,
including loans available for sale, increased during such period
by $5.2 million, or 9.6%.  Deposits totaled $95.5 million at
June 30, 2003, as compared to $82.9 million at December 31,
2002, an increase of $12.5 million or 15.1%.  This is
attributable to the opening of the Bank's new Westville branch
in January 2003, increased municipal deposits and a $3.1 million
increase in a attorney's trust account.  Non-interest bearing
demand deposits totaled $20.3 million and interest-bearing
demand deposits totaled $32.5 million at June 30, 2003, as
compared to $16.6 million and $29.8 million, respectively, at
December 31, 2002.  This increase in demand deposits was the
result of the growth mentioned above.  Savings deposits totaled
$23.1 million and certificates of deposit totaled $19.6 million
at June 30, 2003, as compared to $19.7 and $16.9 million,
respectively, at December 31, 2002.

RESULTS OF OPERATIONS

     Three Months Ended June 30, 2003 Compared to Three Months
Ended June 30, 2002.  Net income for the three months ended
June 30, 2003 was $111,000 as compared to $143,000 for the three
months ended June 30, 2002.  This decrease was largely due to a
$209,000 increase in non-interest expenses discussed below,
which was only partially offset by increases in net interest
income and other income.

     Interest income increased by $183,000 to $1.2 million,
primarily due to a $30.9 million increase in average earning
assets, including the growth in the Bank's loan portfolio
discussed above.  Interest and fees on loans for the quarter
increased by $132,000 for the three months ended June 30, 2003,
due to an increase in average loans and loans available for sale
outstanding of $11.0 million or 23.8% from the prior period.
Interest on federal funds sold increased by $5,000 due to an
increase of $3.8 million in average balances.  Interest and
dividends on investments increased by $46,000 for the period due
to an increase of $16.2 million in average outstanding balances.
The increase was moderated by an overall decline in market
interest rates.

     Total interest expense increased $86,000 from the prior
period due principally to a $28.0 million increase in average
interest bearing liabilities.  The increase in interest expense
was ameliorated by the lower rates paid on deposit accounts.
The Bank's net interest margin was 3.45% for the quarter ended
June 30, 2003 as compared to 4.46% during the quarter ended
June 30, 2002.

     The growth in the loan portfolio from the quarter ended
June 30, 2002 to the quarter ended June 30, 2003 was slower than
the growth from the same period in 2001 to that period in 2002.
As a result, the provision for loan losses decreased to $60,000
for the three months ended June 30, 2003 compared to $75,000 for
the prior period.

     Non-interest income, primarily service charges on deposit
accounts, other fees and gains on sale of mortgages and
investments held for sale, increased $44,000 to $82,000 for the
quarter ended June 30, 2003 principally due to increases in
service charges on deposit accounts of $17,000 and an increase
of $20,000 in gains on sale of mortgages held for sale.

     Non-interest expense increased to $681,000 for the three
months ended June 30, 2003 compared to $472,000 for the prior
period.  Most of this increase related to growth-related
increases in salary and benefits, occupancy and equipment
expense, data processing costs and postage and courier fees.
The Bank recorded additional expenses of approximately $61,000
related to the new Westville office.

     The Bank recorded income tax expense for the three months
ended June 30, 2003 of $75,000 compared to $96,000 in the prior
period.  The decrease in income tax expense is due to lower pre-
tax book income for the three-months ended June 30, 2003 versus
the prior period.  The effective rate for the three-months ended
June 30, 2003 and 2002 was 40.3% and 40.1%, respectively.

     Six Months Ended June 30, 2003 Compared to Six Months Ended
June 30, 2002.  Net income for the six months ended June 30,
2003 was $225,000 as compared to $252,000 for the six months
ended June 30, 2002.  This decreased was largely due to a
$430,000 increase in non-interest expenses described below,
which was only partially offset by increases in net interest
income and other income.

     Interest income increased by $412,000 to $2.3 million,
primarily due to a $27.0 million increase in average earning
assets.  Interest and fees on loans increased by $351,000 for
the six months ended June 30, 2003, due to an increase in
average loans and loans available for sale outstanding of $13.6
million or 31.7% from the prior period.  Interest on federal
funds sold decreased by $38,000 due to a decrease of $2.1
million in average balances and lower yields caused by market
rate declines.   Interest and dividends on investments increased
by $99,000 for the period due to an increase of $15.5 million in
average outstanding balances.  The increase was moderated by an
overall decline in market interest rates.

     Total interest expense increased $156,000 from the prior
period, due principally to a $23.3 million increase in average
interest bearing liabilities.  The increase in interest expense
was ameliorated by the lower rates paid on deposit accounts.
The Bank's net interest margin was 3.61% for the six months
ended June 30, 2003 as compared to 4.27% during the six months
ended June 30, 2002.

     The growth in the loan portfolio from the six months ended
June 30, 2002 to the six months ended June 30, 2003 was slower
than the growth from the same period in 2001 to that period in
2002.  As a result, the provision for loan losses decreased to
$120,000 for the six months ended June 30, 2003 compared to
$175,000 for the prior period.

     Non-interest income, primarily service charges on deposit
accounts, other fees and gains on sale of mortgages and
investments held for sale, increased $75,000 to $143,000 for the
six months ended June 30, 2003, principally due to increases in
service charges on deposit accounts of $35,000 and an increase
of $27,000 in its gain on sale of mortgages held for sale.

     Non-interest expense increased to $1.3 million for the six
months ended June 30, 2003 compared to $908,000 for the prior
period.  Most of this increase related to growth-related
increases in salary and benefits, occupancy and equipment
expense, data processing costs and postage and courier fees.
The Bank recorded additional expenses of approximately $123,000
related to the new Westville office.

     The Bank recorded income tax expense for the six months
ended June 30, 2003 of $152,000 compared to $169,000 in the
prior period.  The decrease in income tax expense is due to
lower pre-tax book income for the six-months ended June 30, 2003
versus the prior period.  The effective rate for the six-months
ended June 30, 2003 and 2002 was 40.3% and 40.1%, respectively.

LIQUIDITY

     Liquidity represents the ability to meet present and future
financial obligations through either the sale or maturity of
existing assets or the acquisition of additional funds through
deposits and borrowings.  Liquid assets include cash, federal
funds sold, securities classified as available for sale, and
loans maturing within one year.  As a result of the Bank's
management of liquid assets, and the ability to generate
liquidity through deposits and short-term customer repos,
management believes that the Bank maintains overall liquidity
sufficient to satisfy its deposit requirements and meet its
customers' credit needs.  In addition, the Bank maintains a $1.8
million secured line of credit and a $2.0 million unsecured line
of credit with certain commercial banks.  As of June 30, 2003
there were no outstanding balances on these lines of credit.

     At June 30, 2003, cash, securities classified as available
for sale, and federal funds sold were 39.5% of total assets.
Asset liquidity is also provided by managing loans and the
maturity of investment securities.  To the extent possible,
loans are funded with deposits or other funding with coinciding
maturity or repricing dates.

     Net cash used by operating activities for the six months
ended June 30, 2003 was $486,000 as compared to cash provided by
operating activities of $651,000 in the prior period.  The
change relates primarily to the change in the level of mortgage
loans held for sale.  Net cash used in investing activities was
$5.6 million compared to $4.9 million in the prior period.  The
net change was due to proceeds from maturing and called
investments being reinvested in securities and being used to
fund loan growth.  Funds provided by financing activities were
$9.6 million for the period ended June 30, 2003 compared to
funds used by financing activities of $4.8 million for the prior
period.  The primary reason was an anticipated decline in 2002
in deposit balances that had built up during the quarter ended
December 31, 2001 compared to growth in deposits in the current
period.  The deposit growth was somewhat offset by a decline in
short-term borrowings.

CAPITAL RESOURCES

     The assessment of capital adequacy depends on a number of
factors such as asset quality, liquidity, earnings performance,
changing competitive conditions, economic forces and growth and
expansion activities.  The Bank seeks to maintain a capital base
to support its growth and expansion activities, to provide
stability to current operations and to promote public
confidence.

     The Bank's capital position exceeds regulatory minimums.
The primary indicators relied on by the Office of the
Comptroller of the Currency and other bank regulators in
measuring strength of capital position are the Tier 1 Risk-Based
Capital Ratio, Total Risk-Based Capital Ratio and Leverage
Ratio.  Tier 1 Capital consists of common and qualifying
preferred stockholders equity less goodwill.  Total Capital
consists of Tier 1 Capital, and a portion of the allowance for
possible loan losses.  Risk-based capital ratios are calculated
with reference to risk weighted assets, which consist of both on
and off balance sheet risks (such as letters of credit and
unused lines of credit).

     The Bank manages capital ratios to exceed regulatory
minimums.  The Bank's Tier 1 Risk-Based Capital Ratio was 14.4%
at June 30, 2003.  The Bank's Total Risk-Based Capital Ratio was
15.5% at June 30, 2003.  These ratios are in excess of the
mandated minimum requirements of 4.00% and 8.00% respectively.
The Leverage Ratio consists of Tier 1 capital divided by
quarterly average assets.  At June 30, 2003, the Bank's Leverage
Ratio was 9.0%, which exceeded the required minimum leverage
ratio of 8.00%.  Management anticipates these ratios to decline
as capital is leveraged in support of deposit and asset growth.
As a new bank, the Bank was required to maintain a minimum
leverage ratio of 8.0% for the first three years of operation.
As of July 1, 2003, this restriction was lifted.  The Bank's
required leverage ratio is currently 4.0%.

     The following table shows the Bank's regulatory capital
ratios and shareholders' equity to total assets as of June 30,
2003:

                                              June 30, 2003
                                           Regulatory   Actual
                                             Minimum    Ratio

Tier 1 risk-based capital ratio                4.0%      14.4%
Total risk-based capital ratio                 8.0%      15.5%
Tier 1 leverage ratio                          8.0%       9.0%
Shareholders' equity to total assets           None       8.7%

Item 3.  Controls and Procedures

     (a)  Evaluation of Disclosure Controls and Procedures.  An
evaluation was performed, under the supervision and with the
participation of 1st Colonial Bancorp's management, including
the principal executive officer and principal financial officer,
of the effectiveness of the design and operation of 1st Colonial
Bancorp's disclosure controls and procedures pursuant to Rule
15d-15(e) under the Securities Exchange Act of 1934, as amended
(the "Exchange Act").  Based on that evaluation, 1st Colonial
Bancorp's principal executive officer and principal financial
officer concluded that 1st Colonial's disclosure controls and
procedures were effective as of June 30, 2003.

     (b)  Changes in Internal Controls.  There has been no
change in 1st Colonial Bancorp's internal control over financial
reporting during the quarter ended June 30, 2003, that has
materially affected, or is reasonably likely to materially
affect, 1st Colonial Bancorp's internal control over financial
reporting.

                    PART II - OTHER INFORMATION

Item 4.  Submission of Matters to a Vote of Security Holders

1st Colonial Bancorp, Inc.'s annual meeting of the shareholders
was held on April 22, 2003.  The results of the items voted on
are listed below.

<table>
<caption>

Issue              Description                    For      Withhold
-----  --------------------------------------   -------    --------

    <c>                                      <c>        <c>
1.     Election of Directors for a
       three-year term

       Gerald J. DeFelicis                      938,592     5,938
       John J. Donnelly, IV                     941,092     3,438
       Eduardo F. Enriquez                      940,892     3,638

Issue              Description                    For       Against   Abstain
-----  --------------------------------------   -------    --------  --------

2.     Proposal to approve the 1st Colonial     672,637     4,637      2,950
       Bancorp, Inc. Employee Stock Option
       Plan

Issue              Description                    For       Against   Abstain
-----  --------------------------------------   -------    --------  --------

3.     Proposal to approve the 1st Colonial     662,808     12,190     5,226
       Bancorp, Inc. Stock Option Plan for
       Non-Employee Directors

Issue              Description                    For       Against   Abstain
-----  --------------------------------------   -------    --------  --------

4.     Proposal to amend the Articles of        658,297     19,977     1,950
       Incorporation of 1st Colonial
       Bancorp, Inc. to authorize 1,000,000
       shares of preferred stock
</table>

As the results of Issue 1 above indicate, Messrs. DeFelicis,
Donnelly and Enriquez were elected as directors of 1st Colonial
Bancorp at the 2003 annual meeting.  The other directors whose
terms of office as directors continued after the meeting were
Gerard M. Banmiller, Thomas A. Clark, III, Letitia G. Colombi,
Stanley H. Molotsky and Linda M. Rohrer.

Item 6.  Exhibits and Reports on Form 8-K.

     (a)  Exhibits

Number    Title
------    -----

  3.1     Amended and Restated Articles of Incorporation of 1st
          Colonial Bancorp, Inc.

  3.2     Bylaws of 1st Colonial Bancorp, Inc. (Incorporated by
          reference to Exhibit 3.2 to 1st Colonial Bancorp,
          Inc.'s Registration Statement No. 333-84114 on Form S-
          4 filed with the Securities and Exchange Commission)

  4.1     Form of certificate evidencing shares of 1st Colonial
          Bancorp, Inc. 1st Colonial Bancorp, Inc.'s Common
          Stock (Incorporated by reference to Exhibit 4.1 to 1st
          Colonial Bancorp, Inc.'s Registration Statement No.
          333-84114 on Form S-4 filed with the Securities and
          Exchange Commission)

10.9 1st Colonial Bancorp, Inc. Employee Stock Option Plan

 10.10    1st Colonial Bancorp, Inc. Stock Option Plan for Non-
          Employee Directors

 31.1     Certification of the Chief Executive Officer of the
          Small Business Issuer pursuant to Rule 13a-14(a) or
          Rule 15d-14(a).

 31.2     Certification of the Chief Financial Officer of the
          Small Business Issuer pursuant to Rule 13a-14(a) or
          Rule 15d-14(a).

 32.1     Certification of the Chief Executive Officer of the
          Small Business Issuer pursuant to 18 U.S.C. Section
          1350, as adopted Pursuant to Section 906 of the
          Sarbanes-Oxley Act of 2002

 32.2     Certification of the Chief Financial Officer of the
          Small Business Issuer pursuant to 18 U.S.C. Section
          1350, as adopted Pursuant to Section 906 of the
          Sarbanes-Oxley Act of 2002

     (b)  Reports on Form 8-K

          No reports on Form 8-K were filed by 1st Colonial
          Bancorp during the quarter ended June 30, 2003.



                          SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.

                              1ST COLONIAL BANCORP, INC.


Date:  August 13, 2003        /s/  Gerard M. Banmiller
                              ----------------------------
                              Gerard M. Banmiller
                              President and
                              Chief Executive Officer

Date:  August 13, 2003        /s/  Robert C. Faix
                              ---------------------------
                              Robert C. Faix
                              Senior Vice President and
                              Chief Financial Officer