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