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1ST Constitution Bancorp Reports Operating Results for the Third Quarter and the Nine Months Ended September 30, 2010

CRANBURY, NJ -- (Marketwire) -- 11/05/10 -- 1ST Constitution Bancorp (NASDAQ: FCCY), the parent company of 1ST Constitution Bank, reported net income of $881,599 for the quarter ended September 30, 2010, or $0.15 per diluted common share, compared to net income of $621,234 for the quarter ended September 30, 2009, or $0.10 per diluted common share.

For the nine months ended September 30, 2010, the Company reported net income of $2,376,416, or $0.40 per diluted common share, compared with net income of $1,632,534, or $0.24 per diluted common share, for the first nine months of 2009.

The growth in net income for the quarter and the nine months ended September 30, 2010 as compared to the prior year periods represents an increase in net income of 41.9% and 45.6%, respectively. At September 30, 2010, the Company's tangible book value per common share was $10.66, up from $10.22 at September 30, 2009.

Earnings per common share for the third quarter and nine months ended September 30, 2010 and 2009 reflect the impact of accrued dividends and discount accretion on the preferred stock issued to the United States Treasury on December 23, 2008. The 2009 per common share amounts have been restated to give effect to a 5 percent stock dividend paid on common shares on February 3, 2010.

Robert F. Mangano, President and Chief Executive Officer, said, "The increase in net income through the nine months ended September 30, 2010 was principally the result of increases in net-interest income, the continued generation of non-interest income, and stability in non-interest expense."

Net interest income for the quarter ended September 30, 2010 increased to $5,543,247, up $1,193,718, or 27.4 percent, from the $4,349,529 reported for the third quarter of 2009. Further supporting earnings for the third quarter of 2010 was the continued generation of non-interest income, which totaled $996,697 and exceeded the corresponding quarter in 2009 by $20,604, or 2.1 percent.

For the quarter ended September 30, 2010, non-interest expenses were $4,372,297, an increase of $279,295, or 6.8 percent from the quarter ended September 30, 2009.

The provision for loan losses for the quarter ended September 30, 2010 totaled $875,000 compared to $505,000 for the same period in 2009. Net charge-offs for the nine months ended September 30, 2010 were $504,255, compared to $865,850 for the same period in 2009.

At September 30, 2010, the allowance for loan losses was $5,726,132, an increase of $1,220,745 from December 31, 2009. The ratio of the allowance for loan losses to total loans was 1.30 percent at September 30, 2010, and 1.19 percent at December 31, 2009.

Total assets at September 30, 2010 reached $692.5 million, representing an increase of $14.5 million, compared to total assets of $678.0 million at December 31, 2009. Deposits at September 30, 2010 were $537.9 million, a decrease of $34.3 million from $572.2 million at December 31, 2009, and total loans increased by $62.2 million, to $442.1 million from $379.9 million at December 31, 2009. Short term borrowing increased to $47.6 million to $70.1 million at September 30, 2010, from $22.5 million at December 31, 2009.

At September 30, 2010, 1ST Constitution Bank's capital ratios were all above the levels required to be categorized as "well capitalized." The Bank's total risk-based capital, Tier I risk-based capital, and leverage capital were 15.46 percent, 14.37 percent, and 11.10 percent, respectively. The regulatory requirements to be considered "well capitalized" for total risk-based capital, Tier I capital, and leverage capital are 10 percent, 6 percent, and 5 percent, respectively. As previously reported, on October 27, 2010, the Company redeemed the preferred stock it had issued to the Treasury under the TARP program. Funding for this redemption was provided by 1st Constitution Bank, which reduced its capital by $12,000,000. If the redemption had occurred on September 30, 2010, 1st Constitution Bank's capital ratios would have met all the requirements to be considered "well capitalized."

1ST Constitution Bancorp, through its primary subsidiary, 1ST Constitution Bank, operates twelve branch banking offices in Cranbury (2), Fort Lee, Hamilton, Hightstown, Jamesburg, Lawrenceville, Montgomery, Perth Amboy, Plainsboro, West Windsor and Princeton, New Jersey.

1ST Constitution Bancorp common stock is traded on the Nasdaq Global Market under the trading symbol "FCCY". Information about 1ST Constitution Bancorp can be accessed via the Internet at www.1STCONSTITUTION.com.

The foregoing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management's confidence and strategies and management's expectations about new and existing programs and products, relationships, opportunities, taxation, technology and market conditions. These statements may be identified by such forward-looking terminology as "expect," "look," "believe," "anticipate," "may," "will," or similar statements or variations of such terms. Actual results may differ materially from such forward-looking statements. Factors that may cause results to differ materially from such forward-looking statements include, but are not limited to, changes in the direction of the economy in New Jersey, the direction of interest rates, effective income tax rates, loan prepayment assumptions, continued levels of loan quality and origination volume, continued relationships with major customers including sources for loans, a higher level of net loan charge-offs and delinquencies than anticipated, bank regulatory rules, regulations or policies that restrict or direct certain actions, the adoption, interpretation and implementation of new or pre-existing accounting pronouncements, a change in legal and regulatory barriers including issues related to compliance with anti-money laundering and bank secrecy act laws, as well as the effects of general economic conditions and legal and regulatory barriers and structure. 1ST Constitution Bancorp assumes no obligation for updating any such forward-looking statements at any time, except as required by law.




                          1st Constitution Bancorp
                    Selected Consolidated Financial Data
                               ( Unaudited )

 ($ in thousands except
    per share amounts)      Three Months Ended         Nine Months Ended
                               September 30,             September 30,
                             2010         2009         2010         2009
                         -----------  -----------  -----------  -----------
Income Statement Data :
  Interest income        $     7,690  $     7,467  $    21,616  $    22,473
  Interest expense             2,147        3,118        6,785        9,404
                         -----------  -----------  -----------  -----------
  Net interest income          5,543        4,349       14,831       13,069
  Provision for loan
   losses                        875          505        1,725        1,293
                         -----------  -----------  -----------  -----------
  Net interest income
   after prov. for loan
   losses                      4,668        3,844       13,106       11,776
  Non-interest income            997          976        2,952        2,766
  Non-interest expenses        4,372        4,093       12,785       12,905
                         -----------  -----------  -----------  -----------
  Income before income
   taxes                       1,293          727        3,273        1,637
  Income tax expense             411          106          897            4
                         -----------  -----------  -----------  -----------
  Net income                     882          621        2,376        1,633
  Preferred stock
   dividends and
   accretion                     177          177          531          543
                         -----------  -----------  -----------  -----------
  Net income available
   to common
   shareholders          $       705  $       444  $     1,845  $     1,090
                         ===========  ===========  ===========  ===========

Per Common Share Data :
  Earnings per common
   share - Basic         $      0.15  $      0.10  $      0.41  $      0.24
  Earnings per common
   share - Diluted       $      0.15  $      0.10  $      0.40  $      0.24
  Tangible book value
   per common share                                $     10.66  $     10.22
  Average common shares
   outstanding :
    Basic                  4,569,401    4,480,994    4,541,164    4,459,308
    Diluted                4,596,124    4,503,124    4,571,026    4,471,425

Performance Ratios :
  Return on average
   assets                       0.51%        0.38%        0.48%        0.36%
  Return on average
   equity                       5.82%        4.34%        5.40%        3.89%
  Net interest margin
   (tax-equivalent
   basis)                       3.42%        2.87%        3.18%        3.08%
  Efficiency ratio              66.9%        76.9%        71.9%        81.5%



                                                     September    December
                                                        30,          31,
                                                       2010         2009
                                                   -----------  -----------
Balance Sheet Data:
  Total Assets                                     $   692,516  $   677,996
  Investment securities                                195,987      227,728
  Loans, including loans
   held for sale                                   $   459,800      401,461
  Allowance for loan
   losses                                               (5,726)      (4,505)
  Goodwill and other
   intangible assets                                       619          646
  Deposits                                             537,853      572,155
  Shareholders' equity                                  60,913       57,401

Asset Quality Data :
    Loans past due over
     90 days and still
     accruing                                      $         4  $       146
    Nonaccrual loans                                     8,881        4,161
    OREO property                                        1,730        1,363
                                                   -----------  -----------
  Total non-performing
   assets                                               10,615        5,670
  Net charge-offs for
   the nine-month period
   and year,
   respectively                                            504        1,732
  Allowance for loan
   losses to total loans                                  1.30%        1.19%
  Nonperforming loans to
   total loans                                            2.01%        1.13%
  Nonperforming assets
   to total assets                                        1.53%        0.84%

Capital Ratios :
  1st Constitution
   Bancorp
    Tier 1 capital to
     average assets                                      11.40%       10.99%
    Tier 1 capital to
     risk weighted
     assets                                              14.83%       16.25%
    Total capital to
     risk weighted
     assets                                              15.92%       17.23%
  1st Constitution Bank
    Tier 1 capital to
     average assets                                      11.10%       10.78%
    Tier 1 capital to
     risk weighted
     assets                                              14.37%       15.91%
    Total capital to
     risk weighted
     assets                                              15.46%       16.90%

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