CRANBURY, NJ--(Marketwire - May 5, 2011) - 1ST Constitution Bancorp (NASDAQ: FCCY), parent company of 1ST Constitution Bank, reported net income available to common shareholders of $790 thousand, for the quarter ended March 31, 2011, a 51% increase above the $522 thousand in net income available to common shareholders for the first quarter of 2010. Diluted earnings available to common shareholders were $0.16 per common share for the three months ended March 31, 2011, compared with $0.11 per common share reported for the three months ended March 31, 2010. All share and per share data for the respective reporting periods have been adjusted for a 5% stock dividend paid on common shares on February 2, 2011.
Net income available to common shareholders for the quarter ended March 31, 2010 included a charge of $177 thousand, representing the dividends and discount accretion on preferred stock issued to the United States Treasury. There was no such charge for the quarter ended March 31, 2011, as 1ST Constitution redeemed all 12,000 shares of its preferred stock issued to the Treasury under the TARP program on October 29, 2010.
Total assets as of March 31, 2011 grew to $735.1 million, from $644.4 million at December 31, 2010. Total loans (excluding loans held for sale) at March 31, 2011 were $323.7 million, compared with $412 million at December 31, 2010, total investment securities at March 31, 2011 were $253.9 million, compared to $167.4 million at December 31, 2010, and total deposits at March 31, 2011 increased to $650 million from $543.7 million at December 31, 2010.
Net interest income for the three months ended March 31, 2011 totaled $5.2 million, an increase of 16.3% from $4.4 million earned for the first quarter of 2010. Further supporting earnings was the continued generation of non-interest income which increased by 8.0% to $1.0 million for the quarter ended March 31, 2011, from $948.8 thousand earned for the first quarter of 2010, largely due to a $116 thousand or 36.2% increase in gains on sales of loans, primarily relating to the Company's residential mortgage origination unit and its Small Business Administration lending unit.
Non-interest expense increased to $4.7 million for the first quarter of 2011, compared to $4.1 million for the first quarter of 2010. The key increases in non-interest expense related to other real estate owned expenses, expenses for professional fees, data processing fees associated with the previously announced branch acquisition, and increases in salary and employee benefits primarily relating to merit increases, increased health costs, and overall increases in staffing levels.
Total consolidated assets at March 31, 2011 were $735.1 million, representing an increase of $90.7 million, or 14.1%, from total consolidated assets of $644.4 million at December 31, 2010. The increase in assets was primarily attributable to the purchase of three branch banking offices from another Middlesex County community bank which was completed on March 25, 2011. Included in the acquisition were the assumption of deposit liabilities of $112.1 million, primarily consisting of lower costing core deposits, and the net receipt of cash of approximately $101.6 million. Other assets acquired in the branch acquisition consisted of fixed assets of approximately $4.6 million, which include ownership of the real estate and improvements upon which the branch offices are situated, and loans of $751 thousand. During the quarter ended March 31, 2011, goodwill and intangible assets of approximately $5.2 million were recorded as a result of this branch acquisition.
For the first quarter of 2011, the provision for loan losses was $400 thousand, and net charge-offs were $413 thousand, compared to a provision for loan losses of $300 thousand and net charge-offs of $14 thousand for the first quarter of 2010.
At March 31, 2011, the allowance for loan losses was $5.8 million, or 1.78% of total loans, compared to $5.8 million, or 1.40% of total loans at December 31, 2010. Total non-performing assets, which includes nonaccrual loans and OREO, was, as a percentage of total assets, 1.78% at March 31, 2011 and 2.12% at December 31, 2010.
Regulatory Capital Ratios continue to reflect a strong capital position. The Company's total risk-based capital, Tier I capital, and leverage capital were 15.96%, 14.43%, and 9.49%, respectively, at March 31, 2011. The regulatory requirements to be considered "well-capitalized" for total risk-based capital, Tier 1 capital, and leverage capital are 10%, 6%, and 5%, respectively.
1ST Constitution Bancorp, through its primary subsidiary, 1ST Constitution Bank, had total assets as of March 31, 2011 of $735.1 million, and operates fourteen branch banking offices in Cranbury (2), Fort Lee, Hamilton, Hightstown, Hillsborough, Hopewell, Jamesburg, Lawrenceville, Perth Amboy, Plainsboro, Rocky Hill, 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, 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) For the Three Months
Ended March 31,
2011 2010
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Income Statement Data :
Interest income $ 6,933 $ 6,850
Interest expense 1,769 2,411
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Net interest income 5,164 4,439
Provision for loan losses 400 300
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Net interest income after prov. for loan
losses 4,764 4,139
Non-interest income 1,025 949
Non-interest expense 4,663 4,134
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Income before income taxes 1,126 954
Income tax expense 336 255
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Net income 790 699
Preferred stock dividends and accretion 0 177
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Net income available to common shareholders $ 790 $ 522
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Per Common Share Data (a) :
Earnings per common share - Basic $ 0.16 $ 0.11
Earnings per common share - Diluted $ 0.16 $ 0.11
Tangible book value per common share $ 9.30 $ 9.79
Average common shares outstanding
Basic 4,802,615 4,751,339
Diluted 4,892,068 4,757,335
(a) Includes the effect of the 5% stock
dividend paid February 2, 2011.
Performance Ratios :
Return on average assets 0.49% 0.43%
Return on average equity 6.49% 4.86%
Net interest margin (tax-equivalent basis) 3.54% 2.93%
Efficiency ratio 75.3% 76.7%
March 31, December 31,
2011 2010
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Balance Sheet Data :
Total Assets $ 735,088 $ 644,395
Investment Securities 253,929 167,361
Loans, including loans held for sale 328,673 433,206
Allowance for loan losses (5,750) (5,763)
Goodwill and other intangible assets 5,850 610
Deposits 650,020 543,735
Shareholders' Equity 50,520 49,681
Asset Quality Data :
Loans past due over 90 days and still
accruing $ 0 $ 0
Nonaccrual loans 6,716 8,809
OREO property 6,358 4,851
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Total non-performing assets : 13,074 13,660
Net charge-offs for the quarter and year,
respectively 413 1,068
Allowance for loan losses to total loans 1.78% 1.40%
Nonperforming loans to total loans 2.04% 2.14%
Nonperforming assets to total assets 1.78% 2.12%
Capital Ratios :
1st Constitution Bancorp
Tier 1 capital to average assets 9.49% 9.63%
Tier 1 capital to risk weighted assets 14.43% 12.99%
Total capital to risk weighted assets 15.96% 14.43%
1st Constitution Bank
Tier 1 capital to average assets 9.29% 9.51%
Tier 1 capital to risk weighted assets 14.09% 12.78%
Total capital to risk weighted assets 15.34% 13.92%
Contact Information: CONTACT: Robert F. Mangano President & Chief Executive Officer (609) 655-4500 Joseph M. Reardon Sr. Vice President & Treasurer (609) 655-4500