SOURCE: 1ST Constitution Bancorp

February 03, 2010 09:15 ET

1ST Constitution Bancorp Reports Fourth Quarter and Annual Results for the Year Ended December 31, 2009

CRANBURY, NJ--(Marketwire - February 3, 2010) - 1ST Constitution Bancorp (NASDAQ: FCCY), the holding company for 1ST Constitution Bank, reported net income for the fourth quarter of 2009 of $928,228, or $0.17 per diluted common share, compared to net income for the fourth quarter of 2008 of $457,021, or $0.10 per diluted common share.

Net income for the year ended December 31, 2009 was $2,560,762, or $0.41 per diluted common share compared to $2,759,458, or $0.62 per diluted common share, for the year ended December 31, 2008. All per share amounts have been adjusted to give effect to a five percent stock dividend declared December 17, 2009, payable on February 3, 2010 to shareholders of record at the close of business on January 19, 2010.

Net income for the year and quarter ended December 31, 2009, when compared to the same period in 2008, was negatively impacted by the Company's cost to carry preferred stock issued under the TARP Capital Repurchase Program. Diluted earnings per common share were further negatively impacted by an increase in the provision for loan losses, increased and special FDIC assessments caused, in part, by the economic downturn, as well as a $363,783 pre-tax other-than-temporary impairment (OTTI) charge on investment securities recognized in the fourth quarter of 2009.

Net interest income was $17,880,768 for the year ended December 31, 2009, which was approximately 9.1 percent above the $16,387,864 achieved for the year ended December 31, 2008. Earnings for the year ended December 31, 2009 were bolstered by the continued generation of non-interest income, which reached $4,505,076 for the year, up 37.4 percent from the $3,279,876 reported for the calendar year 2008.

The provision for loan losses for the year ended December 31, 2009 totaled $2,553,000, compared to $640,000 for the year ended December 31, 2008. Net charge-offs for the year ended December 31, 2009 were $1,732,000, compared to net charge-offs of $303,000 for the year ended December 31, 2008.

At December 31, 2009, the allowance for loan losses was $4,505,387, or 1.19 percent of total loans, compared to $3,684,764, or 0.98 percent of total loans at December 31, 2008. Non-performing assets at December 31, 2009 were $5,670,000, down $1,979,000, or 25.9 percent, compared to non-performing assets of $7,649,000 at December 31, 2008. Non-performing assets at December 31, 2009 included non-performing loans of $4,307,000 and other real estate owned of $1,363,000; comparable amounts at December 31, 2008 were non-performing loans of $3,352,000 and other real estate owned of $4,297,000, respectively. The reduction in other real estate owned was achieved primarily through property sales without the incurrence of loss.

Regulatory capital ratios continue to reflect a strong capital position. The Company's total risk-based capital, Tier 1 capital, and leverage capital were 17.19 percent, 16.21 percent, and 10.96 percent, respectively at December 31, 2009. The regulatory requirements to be considered "well-capitalized" for total risk-based capital, Tier 1 capital, and leverage capital are 10 percent, 6 percent, and 5 percent, respectively.

At December 31, 2009, total assets reached $677.8 million, an increase of $131.5 million from total assets at December 31, 2008, of $546.3 million. Deposits at December 31, 2009 grew to $572.2 million, up from $414.7 million in deposits at December 31, 2008.

1ST Constitution Bancorp, through its primary subsidiary, 1ST Constitution Bank, had total assets as of December 31, 2009 of $677.8 million and operates eleven branch banking offices in Cranbury (2), Fort Lee, Hamilton, Hightstown, Jamesburg, Montgomery, Perth Amboy, Plainsboro, West Windsor and Princeton, New Jersey.

1ST Constitution Bancorp is traded on the Nasdaq Global Market under the trading symbol "FCCY," and can be accessed through 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, passage by Congress of a law which unilaterally amends the terms of the Treasury's preferred stock investment in 1ST Constitution Bancorp in a way that adversely affects 1ST Constitution Bancorp, 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





($ in thousands except per
 share amounts)                  Three Months Ended     12 Months Ended
                                    December 31,          December 31,
                                  2009       2008       2009       2008
                                ---------  ---------  ---------  ---------
Income Statement Data:
 Interest income                $   7,663  $   7,372  $  30,136  $  29,120
 Interest expense                   2,851      3,186     12,255     12,732
                                ---------  ---------  ---------  ---------
 Net interest income                4,812      4,186     17,881     16,388
 Provision for loan losses          1,260        105      2,553        640
                                ---------  ---------  ---------  ---------
 Net interest income after
  prov. for loan losses             3,552      4,081     15,328     15,748
 Non-interest income                1,482        731      4,505      3,279
 Non-interest expense               3,954      4,088     17,116     15,029
                                ---------  ---------  ---------  ---------
 Income before income taxes         1,080        724      2,717      3,998
 Income tax expense                   152        267        156      1,239
                                ---------  ---------  ---------  ---------
 Net income                           928        457      2,561      2,759
 Preferred stock dividends and
  accretion                           177          -        720          -
                                ---------  ---------  ---------  ---------
 Net income available to common
  shareholders                  $     751  $     457  $   1,841  $   2,759
                                =========  =========  =========  =========



Balance Sheet Data:
 Total Assets                                         $ 677,809  $ 546,287
 Loans, including loans held
  for sale                                              401,460    383,050
 Allowance for loan losses                               (4,505)    (3,685)
 Securities available for sale                          204,119     93,477
 Securities held to maturity                             23,609     36,551
 Deposits                                               572,155    414,685
 Shareholders' Equity                                    57,214     55,620

Performance Ratios:
 Return on average assets            0.54%      0.35%      0.41%      0.56%
 Return on average equity            6.34%      4.14%      4.52%      6.52%
 Efficiency ratio                    62.8%      83.1%      76.5%      76.4%
 Net interest margin
  (tax-equivalent basis)                                   3.28%      3.64%

Asset Quality:
 Non-performing assets
     Loans past due over 90
      days and still accruing                         $     145  $       0
     Nonaccrual loans                                     4,162      3,352
     OREO property                                        1,363      4,297
 Net charge-offs (recoveries)                             1,732        303
 Allowance for loan losses to
  total loans                                              1.19%      0.98%
 Nonperforming loans to total
  loans                                                    1.13%      0.89%

Per Share Data:
 Earnings per common share -
  Basic                         $    0.17  $    0.10  $    0.41  $    0.63
 Earnings per common share -
  Diluted                       $    0.17  $    0.10  $    0.41  $    0.62
 Tangible book value per common
  share (a)                                           $    9.99  $    9.88

(a) Includes the effect of the 5% stock dividend to be paid
    February 3, 2010.

Contact Information

  • CONTACT:
    Robert F. Mangano
    President & Chief Executive Officer
    (609) 655-4500

    Joseph M. Reardon
    Sr. Vice President & Treasurer
    (609) 655-4500