1ST Constitution Bancorp Reports Strong Fourth Quarter and Annual Results for the Year Ended December 31, 2011

Fri Jan 27, 2012 9:15am EST

* Reuters is not responsible for the content in this press release.

  CRANBURY, NJ, Jan 27 (MARKET WIRE) -- 
1ST Constitution Bancorp (NASDAQ: FCCY), the holding company for 1ST
Constitution Bank, reported net income available to common shareholders
for the fourth quarter of 2011 of $1.1 million, or $0.22 per diluted
common share, compared to net income available to common shareholders for
the fourth quarter of 2010 of $441 thousand, or $0.09 per diluted common
share.

    Net income available to common shareholders for the year ended December
31, 2011 was $3.9 million, or $0.77 per diluted common share, compared to
$2.3 million, or $0.45 per diluted common share, for the year ended
December 31, 2010. All per share amounts have been adjusted to give
effect to a five percent stock dividend declared December 15, 2011,
payable on February 2, 2012 to shareholders of record as of the close of
business on January 17, 2012.

    Net income available to common shareholders for the quarter and year
ended December 31, 2011, when compared to the same periods in 2010,
increased by $658 thousand, or 149.2 percent, for the quarter ended
December 31, 2011, and $1.6 million, or 72.0 percent, for the year ended
December 31, 2011. At December 31, 2011, the Company's tangible book
value per common share was $9.73.

    Robert F. Mangano, President and Chief Executive Officer, said, "The
increase in net income available to common shareholders for the year
ended December 31, 2011 was principally the result of an increase in
net-interest income, the continued generation of non-interest income,
partially offset by increased non-interest expense on a comparative basis
commensurate with the growth of the Company." 

    Net interest income was $23.1 million for the year ended December 31,
2011, which was 12.6 percent above the $20.5 million reported for the
year ended December 31, 2010. Earnings for the year ended December 31,
2011 were bolstered by the continued generation of non-interest income,
which totaled $4.5 million for the year. On a comparative basis,
non-interest income for the year ended December 31, 2011 was up by $279
thousand when compared to results for the 2010 year. 

    The provision for loan losses for the year ended December 31, 2011
totaled $2.6 million, compared to $2.3 million for the year ended
December 31, 2010. Net charge-offs for the year ended December 31, 2011
were $2.8 million, compared to net charge-offs of $1.1 million for the
year ended December 31, 2010.

    At December 31, 2011, the allowance for loan losses was $5.5 million, or
1.16 percent of total loans, compared to $5.8 million, or 1.40 percent of
total loans at December 31, 2010. Non-performing assets at December 31,
2011 were $15.4 million, compared to non-performing assets of $13.7
million at December 31, 2010. Non-performing assets at December 31, 2011
included non-performing loans of $3.0 million and other real estate owned
of $12.4 million; comparable amounts at December 31, 2010 were
non-performing loans of $8.8 million and other real estate owned of $4.9
million, respectively.

    Regulatory capital ratios continue to reflect a strong capital position.
The Company's total risk-based capital, Tier 1 capital, and leverage
capital ratios were 12.22 percent, 11.27 percent, and 8.82 percent,
respectively at December 31, 2011. 

    At December 31, 2011, total assets were $791.7 million, an increase of
$147.3 million from total assets at December 31, 2010 of $644.4 million.
Deposits at December 31, 2011 were $623.9 million, up from $543.7 million
in deposits at December 31, 2010.

    1ST Constitution Bancorp, through its primary subsidiary, 1ST
Constitution Bank, 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)          Three Months Ended          Twelve Months Ended
                           December 31,                December 31,
                         2011         2010          2011           2010
                     -----------  -----------  -------------  ------------- 
Income Statement
 Data:
  Interest income    $     8,363  $     7,685  $      29,857  $      29,301 
  Interest expense         1,517        2,035          6,787          8,819 
                     -----------  -----------  -------------  ------------- 
  Net interest
   income                  6,846        5,650         23,070         20,482 
  Provision for
   loan losses             1,275          600          2,558          2,325 
                     -----------  -----------  -------------  ------------- 
  Net interest
   income after
   prov.for loan
   losses                  5,571        5,050         20,512         18,157 
  Non-interest
   income                  1,122        1,285          4,516          4,237 
  Non-interest
   expenses                5,230        5,034         19,806         17,819 
                     -----------  -----------  -------------  ------------- 
  Income before
   income taxes            1,463        1,301          5,222          4,575 
  Income tax
   expense                   364          370          1,291          1,267 
                     -----------  -----------  -------------  ------------- 
  Net income               1,099          931          3,931          3,308 
  Preferred stock
   dividends and
   accretion                   0          490              0          1,022 
                     -----------  -----------  -------------  ------------- 
  Net income
   available to
   common
   shareholders      $     1,099  $       441  $       3,931  $       2,286 
                     ===========  ===========  =============  ============= 

Per Common Share
 Data:
  Earnings per
   common share -
   Basic             $      0.22  $      0.09  $        0.78  $        0.46 
  Earnings per
   common share -
   Diluted           $      0.22  $      0.09  $        0.77  $        0.45 
  Tangible book
   value per common
   share                                       $        9.73  $        9.73 
  Average common
   shares
   outstanding:
    Basic              5,066,839    5,042,407      5,049,797      5,015,649 
    Diluted            5,083,220    5,073,446      5,086,909      5,043,678 

Performance Ratios:
  Return on average
   assets                   0.57%        0.54%          0.54%          0.50%
  Return on average
   equity                   8.04%        7.04%          7.60%          5.78%
  Net interest
   margin (tax-
   equivalent
   basis)                   3.90%        3.52%          3.55%          3.27%
  Efficiency ratio          65.6%        72.6%          71.8%          72.1%

                                                December 31,   December 31, 
                                                    2011           2010
                                               -------------  ------------- 
Balance Sheet Data:
  Total Assets                                 $     791,727  $     644,395 
  Investment
   securities                                        236,158        167,361 
  Loans, including
   loans held for
   sale                                              494,666        433,207 
  Allowance for
   loan losses                                        (5,534)        (5,763)
  Goodwill and
   other intangible
   assets                                              5,426            610 
  Deposits                                           623,862        543,735 
  Shareholders'
   equity                                             55,000         49,681 

Asset Quality Data:
    Loans past due
     over 90 days
     and still
     accruing                                  $           0  $           0 
    Nonaccrual
     loans                                             2,992          8,809 
    OREO property                                     12,409          4,851 
                                               -------------  ------------- 
  Total non-
   performing
   assets                                             15,401         13,660 
  Net charge-offs
   (recoveries)                                        2,787          1,068 
  Allowance for
   loan losses to
   total loans                                          1.16%          1.40%
  Nonperforming
   loans to total
   loans                                                0.63%          2.14%
  Nonperforming
   assets to total
   assets                                               1.95%          2.12%

Capital Ratios:
  1st Constitution
   Bancorp
    Tier 1 capital
     to average
     assets                                             8.82%          9.63%
    Tier 1 capital
     to risk
     weighted
     assets                                            11.27%         12.99%
    Total capital
     to risk
     weighted
     assets                                            12.22%         14.43%
    1st
     Constitution
     Bank
    Tier 1 capital
     to average
     assets                                             8.49%          9.51%
    Tier 1 capital
     to risk
     weighted
     assets                                            10.79%         12.78%
    Total capital
     to risk
     weighted
     assets                                            11.73%         13.92%


    


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

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

Copyright 2012, Market Wire, All rights reserved.

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