SOURCE: 1ST Constitution Bancorp

April 16, 2008 09:00 ET

1ST Constitution Bancorp Reports Record Income Up 15.2 Percent for the Year Ended December 31, 2007

CRANBURY, NJ--(Marketwire - April 16, 2008) - 1ST Constitution Bancorp (NASDAQ: FCCY) reported record net income for the year ended December 31, 2007. For the year ended December 31, 2007, net income reached $5,442,782, or $1.35 per diluted share. These results represent a 15.2 percent increase in earnings and a 14.4 percent increase in diluted earnings per share compared to net income of $4,724,962, or $1.18 per diluted share reported for the year ended December 31, 2006. Returns on average assets and average equity for the year ended December 31, 2007 were 1.29 percent and 14.32 percent, respectively, as compared to 1.24 percent and 14.73 percent, respectively, for the year ended December 31, 2006.

For the quarter ended December 31, 2007, net income reached $1,263,069, or $0.31 per diluted share, compared to net income of $1,200,136, or $0.29 per diluted share reported for the quarter ended December 31, 2006. All per share amounts have been adjusted to give effect to a six percent stock dividend declared December 20, 2007, payable on February 6, 2008 to shareholders of record at the close of business on January 23, 2008.

Net interest income reached $17,778,005 for the year ended December 31, 2007 and was virtually even with the $17,787,685 achieved for the year ended December 31, 2006. Also bolstering earnings for 2007 was the continued generation of non-interest income, which reached $2,558,329 for the year.

The provision for loan and lease losses for the year ended December 31, 2007 totaled $130,000, compared to $893,500 for the year ended December 31, 2006. Net loan charge-offs for the year were $10,000, compared to net charge-offs of $26,515 for the year ended December 31, 2006.

At December 31, 2007, the allowance for loan and lease losses was $3,348,080, or 1.10 percent of total loans, compared to 1.16 percent at December 31, 2006. Non-performing assets at December 31, 2007 were $4,997,585, an increase of $804,376 from the level of non-performing assets at December 31, 2006. There were no loans greater than 90 days past due and still accruing as of December 31, 2007 and December 31, 2006.

At December 31, 2007, total assets reached $429.1 million, an increase of $36.2 million from total assets at December 31, 2006. Deposits at December 31, 2007 grew to $329.3 million, up from $312.7 million in deposits at December 31, 2006.

1ST Constitution Bancorp, through its primary subsidiary, 1ST Constitution Bank, has total assets of $429.1 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.

The foregoing discussion of financial results reflects the restatement of 1ST Constitution Bancorp's financial statements for 2006 and the first three quarters of 2007. 1ST Constitution Bancorp first disclosed the restatement in a Form 8-K filed with the Securities and Exchange Commission on March 14, 2008.

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, as well as the effects of general economic conditions and legal and regulatory barriers and structure. 1ST Constitution assumes no obligation for updating any such forward-looking statements at any time.

                         1ST Constitution Bancorp
                   Selected Consolidated Financial Data

($ in thousands except per
 share amounts)                  Three Months Ended     12 Months Ended
                                     December 31,          December 31,
                                   2007       2006       2007       2006
                                ---------- ---------- ---------  ---------
                                           (restated)            (restated)
Income Statement Data:
 Interest income                $    7,708 $    7,199 $  30,368  $  27,305
 Interest expense                    3,221      2,764    12,590      9,517
                                ---------- ---------- ---------  ---------
 Net interest income                 4,487      4,435    17,778     17,788
 Provision for loan losses              30        454       130        894
                                ---------- ---------- ---------  ---------
 Net interest income after
  prov. for loan losses              4,457      3,981    17,648     16,894
 Non-interest income                   620        629     2,558      2,571
 Non-interest expense                3,140      2,677    12,101     12,014
                                ---------- ---------- ---------  ---------
 Income before income taxes          1,937      1,933     8,105      7,451
 Income tax expense                    674        733     2,662      2,726
                                ---------- ---------- ---------  ---------
 Net income                     $    1,263 $    1,200 $   5,443  $   4,725
                                ========== ========== =========  =========

Balance Sheet Data:
 Total Assets                                         $ 429,151  $ 392,931
 Loans, including loans held
  for sale                                              305,082    278,751
 Allowance for possible loan
  losses                                                  3,348      3,228
 Securities available for sale                           75,192     70,421
 Securities held to maturity                             23,512     19,254
 Deposits                                               329,332    312,724
 Shareholders' Equity                                    40,973     34,947

Performance Ratios:
 Return on average assets                                  1.29%      1.24%
 Return on average equity                                 14.32%     14.73%
 Efficiency ratio                                          59.5%      59.0%
 Net interest margin                                       4.57%      5.03%


Asset Quality:
 Loans past due over 90 days
  and still accruing                                  $       0  $       0
 Nonaccrual loans                                         2,037      4,193
 OREO property                                            2,961          0
 Net charge-offs (recoveries)                                10         27

 Allowance for loan losses to
  total loans                                              1.10%      1.16%
 Nonperforming loans to total
  loans                                                    0.67%      1.50%

Per Share Data:
 Earnings per share (Basic)     $     0.32 $     0.30 $    1.37  $    1.21
 Earnings per share (Diluted)   $     0.31 $     0.29 $    1.35  $    1.18
 Book value per share                                 $   10.26  $    8.81

Contact Information

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

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