Profile: 1st Constitution Bancorp (FCCY.O)
10 Dec 2013
1st Constitution Bancorp is a bank holding company for 1st Constitution Bank (the Bank). The Bank is a commercial bank, which is engaged in the business of commercial and retail banking. As a community bank, the Bank offers a range of services (including demand, savings and time deposits and commercial and consumer/installment loans) to individuals, small businesses and not-for-profit organizations principally in the Fort Lee area of Bergen County and in Middlesex, Mercer and Somerset Counties, New Jersey. The Bank conducts its operations through its main office located in Cranbury, New Jersey, and operates 13 additional branch offices in downtown Cranbury, Hamilton Square, Hightstown, Jamesburg, Lawrenceville, Montgomery, Perth Amboy, Plainsboro, West Windsor, Fort Lee and Princeton, New Jersey. The Bank’s deposits are insured up to applicable legal limits by the Federal Deposit Insurance Corporation (FDIC).
The Bank’s lending activities include both commercial and consumer loans. Loan originations are derived from a number of sources, including real estate broker referrals, mortgage loan companies, direct solicitation by the Bank’s loan officers, existing depositors and borrowers, builders, attorneys, walk-in customers and, in some instances, other lenders. The Bank offers a variety of commercial loan services, including term loans, lines of credit, and loans secured by equipment and receivables. A range of short-to-medium term commercial loans, both secured and unsecured, are made available to businesses for working capital (including inventory and receivables), business expansion (including acquisition and development of real estate and improvements), and the purchase of equipment and machinery. The Bank also makes construction loans to real estate developers for the acquisition, development and construction of residential subdivisions.
A portion of the Bank’s lending activities consists of the origination of fixed and adjustable rate residential first mortgage loans secured by owner-occupied property located in the Bank’s primary market areas. The Bank also offers construction loans, second mortgage home improvement loans and home equity lines of credit. The Bank finances the construction of individual, owner-occupied houses on the basis of written underwriting and construction loan management guidelines. The Bank makes residential construction loans to individuals who intend to erect owner occupied housing on a purchased parcel of real estate. Non-residential consumer loans made by the Bank includes loans for automobiles, recreation vehicles, and boats, as well as personal loans (secured and unsecured) and deposit account secured loans. The Bank also conducts various indirect lending activities through established retail companies in its market areas.
The investment securities portfolio amounted to $236,158,197 or 29.8% of total assets, as of December 31, 2011. As of December 31, 2011, available-for-sale securities amounted to $93,683,774. The Company’s investment portfolio include the United States Treasury securities and obligations of the United States Government sponsored corporations and agencies, Residential collateralized mortgage obligations, Residential mortgage backed securities, Obligations of State and political subdivisions, Trust preferred debt securities, Corporate debt securities, Restricted Stock and Mutual Fund.
Sources of Fund
Deposits include demand deposits (interest bearing and non-interest bearing), savings and time deposits. As of December 31, 2011, total deposits were $623,862,485. Time deposits consist primarily of retail certificates of deposit and certificates of deposit of $100,000 or more. As of December 31, 2011, time deposits were $140,205,284. Certificates of deposit of $100,000 or more are used primarily as an alternative to other sources of borrowed funds. As of December 31, 2011, non-interest bearing demand deposits totaled $105,470,543. Non-interest bearing demand deposits made up 16.9% of the total deposits during the year ended December 31, 2011. Borrowings are mainly comprised of Federal Home Loan Bank (FHLB) borrowings and overnight funds purchased. These borrowings are primarily used to fund asset growth not supported by deposit generation.
1st Constitution Bancorp
2650 Route 130 & DeyRoad,
P.O. Box 634
CRANBURY NJ 08512