Profile: 1st Constitution Bancorp (FCCY.O)
6 May 2016
1st Constitution Bancorp, incorporated in February 1999, 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, Somerset and Monmouth Counties of New Jersey. The Bank's Mortgage Warehouse Funding Group offers revolving lines of credit that are available to licensed mortgage banking companies (the Warehouse Line of Credit). The Warehouse Line of Credit is used by the mortgage banker to originate one-to-four family residential mortgage loans that are pre-sold to the secondary mortgage market, which includes state and national banks, national mortgage banking firms, insurance companies and government-sponsored enterprises, including the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation and others.
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 broad 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. Construction financing is provided to businesses to expand their facilities and operations and to real estate developers for the acquisition, development and construction of residential properties. First mortgage construction loans are made to developers and builders primarily for single family homes or smaller multi-family buildings (less than ten units) that are presold, or are to be sold or leased on a speculative basis.
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, reverse mortgages, second mortgage home improvement loans and home equity lines of credit. The Bank finances the construction of individual, owner-occupied single-family houses on the basis of written underwriting and construction loan management guidelines. The Bank sells its originated residential mortgage loans in the secondary market. Non-residential consumer loans made by the Bank include 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 retail companies in its market areas. As of December 31, 2014, total net loans were $647,372,000.
The Bank's investment securities portfolio amounted to $223.8 million, or 23.4% of total assets, as of December 31, 2014. As of December 31, 2014, available-for-sale securities amounted to $80.2 million. The Company's investment portfolio includes 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, other debt securities, Restricted Stock and Mutual Fund.
Sources of Fund
The Bank's deposits include demand deposits (interest bearing and non-interest bearing), savings and time deposits. As of December 31, 2014, total deposits were $817.8 million. Its Interest bearing demand deposits include interest-bearing checking accounts, money market accounts and the Bank's money market product, 1st Choice account. As of December 31, 2014, non-interest bearing demand deposits totaled $162.3 million. Certificates of deposit consist primarily of retail certificates of deposit and certificates of deposit with balances of $100,000 or more. Certificates of deposit as of December 31, 2014 were $167.0 million. Borrowings are mainly comprised of Federal Home Loan Bank (FHLB) borrowings and overnight funds purchased.
The Bank competes with Bank of America, PNC Bank, JP Morgan Chase, Wells Fargo, Santander Bank, Provident Bank, Investors Bank and Hudson City Savings Bank.
1st Constitution Bancorp
2650 Us Highway 130 # 634
CRANBURY NJ 08512-3327