Profile: 1st Constitution Bancorp (FCCY.O)
21 Jul 2017
1st Constitution Bancorp, incorporated in February, 1999, is the 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. The Company operates through the Community Banking segment. The Community Banking segment consists of construction, commercial, retail and mortgage banking operations. 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 various 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 other lenders. The Bank offers a range 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. 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 and commercial properties. First mortgage construction loans are made to developers and builders primarily for single family homes or smaller multi-family buildings that are presold, or are to be sold or leased on a speculative basis.
The Bank's lending activities include 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. 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's total net loans are approximately $674.56 million.
The Bank's investment activities are classified as available for sale and held to maturity securities. The Bank's investment securities portfolio includes the United States Government agency and sponsored enterprises obligations, the United States Government agency and sponsored enterprises' mortgage backed securities and municipal securities. The Bank's investment securities available for sale include the United States Treasury securities and obligations of the United States Government sponsored corporations (GSE) and agencies, residential collateralized mortgage obligations-GSE, residential mortgage backed securities-GSE, obligations of state and political subdivisions, trust preferred debt securities-single issuer, corporate debt securities, other debt securities and restricted stock. Its available-for-sale securities have a total fair value of approximately $94.7 million. The bank's investment securities held to maturity include residential collateralized mortgage obligations-GSE, residential mortgage backed securities-GSE, obligations of state and political subdivisions, trust preferred debt securities-pooled, and other debt securities. The Bank's held to maturity securities have a total fair value of $127.16 million. The Bank's investment portfolio amounts to approximately $218 million.
Sources of Fund
The Bank's sources of funding are deposits, which include demand deposits (interest bearing and non-interest bearing), savings deposits and certificates of deposit. The Bank's interest bearing demand deposits include interest-bearing checking accounts, money market accounts and the Bank's money market product, 1st Choice account. Certificates of deposit consist primarily of retail certificates of deposit and certificates of deposit with balances of over $100,000 or more. Borrowings include Federal Home Loan Bank (FHLB) borrowings and overnight funds purchased. Its total deposits are approximately $786.76 million.
The Bank competes with Bank of America, PNC Bank, JP Morgan Chase, Wells Fargo, Santander Bank, Provident Bank and Investors Bank.
1st Constitution Bancorp
2650 Us Highway 130 # 634
CRANBURY NJ 08512-3327