1ST Constitution Bancorp Reports a 57% Increase in Net Income for the Second Quarter Ended June 30, 2012

Mon Jul 30, 2012 9:15am EDT

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  CRANBURY, NJ, Jul 30 (Marketwire) -- 
1ST Constitution Bancorp (NASDAQ: FCCY), parent company of 1ST
Constitution Bank, reported net income of $1.3 million, or $0.25 per
diluted common share, for the quarter ended June 30, 2012, a 57% increase
above the $829 thousand in net income, or $0.16 per diluted common share,
reported for the second quarter of 2011. 

    For the six months ended June 30, 2012, the Company reported net income
of $2.5 million, or $0.48 per diluted common share, compared with net
income of $1.6 million, or $0.32 per diluted common share, for the first
six months of 2011. 

    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, 2012. At June 30, 2012, the Company's tangible book value per common
share was $10.28.

    Robert F. Mangano, President and Chief Executive Officer, said, "The
growth in net income for the quarter and the six months ended June 30,
2012 was principally the result of an increase in the Company's mortgage
banking business, both retail and wholesale, partially offset by the
increased non-interest expenses primarily associated with carrying costs
and write-downs of foreclosed real estate."

    Total assets at June 30, 2012 decreased to $777.5 million from $791.7
million at December 31, 2011. Gross portfolio loans at June 30, 2012 were
$479.8 million, compared with $475.4 million at December 31, 2011; total
investment securities at June 30, 2012 were $220.5 million, compared to
$236.2 million at December 31, 2011, and total deposits at June 30, 2012
were $669.1 million, up from $623.9 million at December 31, 2011.

    Net interest income for the quarter ended June 30, 2012 totaled $6.6
million, an increase of 27.1% from $5.2 million earned for the second
quarter of 2011. Further supporting earnings was the continued generation
of non-interest income, which increased by 4.2% to $1.2 million for the
quarter ended June 30, 2012, from $1.1 million earned for the second
quarter of 2011.

    Non-interest expense increased to $5.4 million for the second quarter of
2012, compared to $5.2 million for the second quarter of 2011. The key
increases in non-interest expense related to other real estate owned
expenses, occupancy expense associated with the acquisition of branches
in March 2011, and increases in salary and employee benefits primarily
relating to merit increases, increased health costs, and overall
increases in staffing levels.

    For the second quarter of 2012, the provision for loan losses was $550
thousand, and net charge-offs were $175 thousand, compared to a provision
for loan losses of $275 thousand and net charge-offs of $155 thousand for
the second quarter of 2011. 

    At June 30, 2012, the allowance for loan losses was $6.3 million, or
1.30% of total loans, compared to $5.5 million, or 1.16% of total loans,
at December 31, 2011. Total non-performing assets, which includes
nonaccrual loans and OREO, was, as a percentage of total assets, 1.84% at
June 30, 2012 and 1.95% at December 31, 2011.

    Regulatory capital ratios continue to reflect a strong capital position.
The Company's total risk-based capital, Tier I capital, and leverage
capital were 12.51%, 11.47%, and 9.16%, respectively, at June 30, 2012.
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, operate 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          Six Months Ended
                               June 30,                   June 30,
                           2012         2011         2012          2011
                       -----------  -----------  ------------  ------------ 
Income Statement
 Data:
  Interest income      $     7,907  $     7,085  $     15,941  $     14,019 
  Interest expense           1,279        1,871         2,683         3,640 
                       -----------  -----------  ------------  ------------ 
  Net interest income        6,628        5,214        13,258        10,379 
  Provision for loan
   losses                      550          275         1,150           675 
                       -----------  -----------  ------------  ------------ 
  Net interest income
   after prov.for
   loan losses               6,078        4,939        12,108         9,704 
  Non-interest income        1,188        1,141         2,353         2,165 
  Non-interest
   expenses                  5,374        5,156        10,986         9,819 
                       -----------  -----------  ------------  ------------ 
  Income before
   income taxes              1,892          924         3,475         2,050 
  Income tax expense           594           95         1,010           431 
                       -----------  -----------  ------------  ------------ 
  Net income           $     1,298  $       829  $      2,465  $      1,619 
                       ===========  ===========  ============  ============ 

Per Common Share Data
 (a):
  Earnings per common
   share - Basic       $      0.25  $      0.16  $       0.48  $       0.32 
  Earnings per common
   share - Diluted     $      0.25  $      0.16  $       0.48  $       0.32 
  Tangible book value
   per common share                              $      10.28  $       9.75 
  Average common
   shares
   outstanding:
    Basic                5,096,317    5,043,504     5,096,252     5,043,324 
    Diluted              5,198,411    5,092,442     5,177,314     5,105,046 

  (a) Includes the
   effect of the 5%
   stock dividend
   paid February 2,
   2011.

Performance Ratios:
  Return on average
   assets                     0.68%        0.45%         0.65%         0.47%
  Return on average
   equity                     9.18%        6.55%         8.81%         6.52%
  Net interest margin
   (tax-equivalent
   basis)                     3.87%        3.25%         3.92%         3.38%
  Efficiency ratio            68.8%        81.1%         70.4%         78.3%

                                                   June 30,    December 31, 
                                                     2012          2011
                                                 ------------  ------------ 
Balance Sheet Data:
  Total Assets                                   $    777,499  $    791,727 
  Investment
   Securities                                         220,530       236,158 
  Loans                                               479,795       475,432 
  Loans held for sale                                  16,596        19,234 
  Allowance for loan
   losses                                              (6,257)       (5,534)
  Goodwill and other
   intangible assets                                    5,292         5,426 
  Deposits                                            669,071       623,862 
  Shareholders'
   Equity                                              57,673        55,000 

Asset Quality Data:
    Loans past due
     over 90 days and
     still accruing                              $          0  $          0 
    Nonaccrual loans                                    2,699         2,991 
    OREO property                                      11,605        12,409 
                                                 ------------  ------------ 
  Total non-
   performing assets                                   14,304        15,400 
  Net charge-offs for
   the six-month
   period and year,
   respectively                                           427         2,787 
  Allowance for loan
   losses to total
   loans                                                 1.30%         1.16%
  Nonperforming loans
   to total loans                                        0.56%         0.63%
  Nonperforming
   assets to total
   assets                                                1.84%         1.95%

Capital Ratios:
  1st Constitution
   Bancorp
    Tier 1 capital to
     average assets                                      9.16%         8.82%
    Tier 1 capital to
     risk weighted
     assets                                             11.47%        11.27%
    Total capital to
     risk weighted
     assets                                             12.51%        12.22%
  1st Constitution
   Bank
    Tier 1 capital to
     average assets                                      8.83%         8.49%
    Tier 1 capital to
     risk weighted
     assets                                             11.02%        10.79%
    Total capital to
     risk weighted
     assets                                             12.06%        11.73%

    


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

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

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