Business & Finance
Business and Finance
Business and Finance 
Tue, November 3, 2009
Mon, November 2, 2009
1ST Constitution Bancorp Reports Operating Results for the Third Quarter and Nine Months Ended September 30, 2009
CRANBURY, NJ--(Marketwire - November 2, 2009) - 1ST Constitution Bancorp (
For the nine months ended September 30, 2009, the Company reported net income of $1,632,534, or $0.26 per diluted common share, compared with net income of $2,302,437, or $0.54 per diluted common share, for the first nine months of 2008.
At September 30, 2009, the Company's tangible book value per common share was $10.73, up from $10.11 at September 30, 2008.
Earnings per common share for the third quarter of 2009 and for the nine months ended September 30, 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 2008 per common share amounts have been restated to give effect to a 5 percent stock dividend paid on common shares on February 2, 2009.
Robert F. Mangano, President and Chief Executive Officer, said, "The decline in net income for the quarter ended September 30, 2009 as compared to the same quarter in 2008 was principally the result of increases in non-interest expenses relating primarily to FDIC insurance premiums, salaries and employee benefits, and an increased provision for loan losses."
Interest income for the quarter ended September 30, 2009 increased to $7,467,175, up $77,922, or 10.5 percent, from the $7,389,253 reported for the third quarter of 2008. Further supporting earnings for the quarter was the continued generation of non-interest income, which reached $1,233,197, up $276,423, or 28.9 percent, above the same prior year quarter.
The provision for loan losses for the quarter ended September 30, 2009 totaled $505,000 compared to $175,000 for the same period last year. Net charge-offs for the nine months ended September 30, 2009 were $865,850, compared to $303,316 for the year ended December 31, 2008.
At September 30, 2009, the allowance for loan losses was $4,111,914, an increase of $427,150 from December 31, 2008. The ratio of the allowance for loan losses to total loans was 1.09 percent at September 30, 2009, and 0.98 percent at December 31, 2008.
Total assets at September 30, 2009 reached $667.6 million, representing an increase of $121.3 million compared to total assets of $546.3 million at December 31, 2008. Deposits at September 30, 2009 grew to $556.2 million, up from $414.7 million at December 31, 2008.
At September 30, 2009 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 ratios were 17.81 percent, 16.86 percent, and 11.09 percent, respectively, at September 30, 2009. The regulatory requirements to be considered "well capitalized" for total risk-based capital, Tier I risk-based capital, and leverage capital ratios are 10 percent, 6 percent, and 5 percent, respectively.
1ST Constitution Bancorp, through its primary subsidiary, 1ST Constitution Bank, 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 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, 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 (unaudited) ($ in thousands except per share amounts) Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 2009 2008 --------- --------- --------- --------- Income Statement Data: Interest income $ 7,467 $ 7,389 $ 22,473 $ 21,748 Interest expense 3,117 3,202 9,404 9,547 --------- --------- --------- --------- Net interest income 4,350 4,187 13,069 12,201 Provision for loan losses 505 175 1,293 535 --------- --------- --------- --------- Net interest income after prov. for loan losses 3,845 4,012 11,776 11,666 Non-interest income 1,233 957 3,023 2,548 Non-interest expenses 4,350 3,909 13,162 10,940 --------- --------- --------- --------- Income before income taxes 728 1,060 1,637 3,274 Income tax expense 107 278 4 972 --------- --------- --------- --------- Net income 621 782 1,633 2,302 Preferred stock dividends and accretion 177 0 543 0 --------- --------- --------- --------- Net income available to common shareholders $ 444 $ 782 $ 1,090 $ 2,302 ========= ========= ========= ========= Balance Sheet Data: Total Assets $ 667,641 $ 513,562 Loans, including loans held for sale 392,510 374,934 Allowance for loan losses (4,112) (3,729) Securities available for sale 133,257 87,064 Securities held to maturity 36,139 16,131 Deposits 556,173 390,577 Shareholders' Equity 57,903 43,069 Performance Ratios: Return on average assets 0.38% 0.62% 0.36% 0.64% Return on average equity 4.34% 7.39% 3.89% 7.36% Net interest margin (tax-equivalent basis) 2.87% 3.61% 3.09% 3.69% Efficiency ratio 77.9% 76.0% 81.8% 74.2% Asset Quality: Loans past due over 90 days and still accruing $ 6 $ 0 Nonaccrual loans 5,015 2,482 OREO property 2,711 5,007 Net charge-offs (recoveries) 866 154 Allowance for loan losses to total loans 1.09% 1.03% Nonperforming loans to total loans 1.34% 0.66% Per Common Share Data: Earnings per share - Basic $ 0.10 $ 0.19 $ 0.26 $ 0.55 Earnings per share - Diluted $ 0.10 $ 0.18 $ 0.26 $ 0.54 Book value per share $ 10.89 $ 10.27 Tangible book value per share $ 10.73 $ 10.11