Colonial Financial Services, Inc operates as the holding company for Colonial Bank, FSB that provides various banking products and services. It offers various deposit accounts, which include certificates of deposit, savings accounts, NOW accounts, checking accounts, money market deposit accounts, club accounts, and individual retirement accounts, as well as commercial checking accounts for businesses and municipalities. The company’s loan portfolio comprises one- to four-family residential real estate loans, home equity loans and lines of credit, commercial real estate loans, commercial business loans, construction loans, consumer loans, and multi-family mortgage loans. It has branch offices in Bridgeton, Cedarville, Mantua, Millville, Upper Deerfield, Vineland, and Sewell, New Jersey. The company is headquartered in Vineland, New Jersey.

Total assets at June 30, 2011 totaled $601.2 million compared to $590.3 million as of December 31, 2010, an increase of $10.9 million. Colonial Financial Services also reported earnings of $0.77 for the twelve months ended June 30. The stock is trading in line with its competitors, based on fundamental measures like the price-to-earnings and price-to-sales ratios.

Investors in the stock of the company have enjoyed an increase in the share price of more than 25 percent, about five times the gains of the S&P 500.

Recently, Colonial Financial Services announced that its Board of Directors has adopted a stock repurchase program. Under the repurchase program, the Company may repurchase up to 209,422 shares of its common stock, or approximately 5 percent of the current outstanding shares.

Share repurchase programs are often completed when the Board of Directors feel the company’s stock offers good value. In its most recent quarterly report, Colonial Financial Services showed that it had more than $3.50 a share in cash on its balance sheet. The Board of Directors would have evaluated possible uses for that cash, and determined that one of the best options available was to buy the company’s stock.

Buybacks are more commonly seen after a stock suffers a decline. They can also be used by a Board of Directors to signal the market that they think the stock is undervalued. In this case, the announcement came after the stock had performed five times better than the overall market. Investors can view this as an indication that the Board of Colonial Financial Services thinks the stock represents a solid investment at these levels and sees more growth potential ahead of the company.