CRANBURY, NJ--(Marketwire - October 23, 2008) - 1ST Constitution Bancorp (
NASDAQ:
FCCY) today
reported net income of $782,000, or $0.19 per diluted share, for the
quarter ended September 30, 2008 compared with net income of $1,436,000, or
$0.36 per diluted share, for the third quarter of 2007.
For the first nine months of 2008, the Company earned net income of
$2,302,000, or $0.57 per diluted share, compared with net income of
$4,180,000, or $1.04 per diluted share, for the same period a year ago.
The 2007 per share amounts have been restated to give effect to a 6 percent
stock dividend paid on February 6, 2008.
Net income for the quarter ended September 30, 2008 was impacted by short
term interest rates which resulted in lower interest income being generated
from the Company's floating rate loan portfolio, as well as increases in
non-interest expense primarily relating to start up costs associated with
the Company's Mortgage Warehousing unit and other professional fees.
Also, based on the challenging credit environment, and the continued growth
in the Company's loan portfolio, the provision for loan losses was
increased for the third quarter of 2008 when compared to the provision for
the third quarter of 2007.
Net interest income declined by 7.32 percent in the third quarter of 2008
to $4,188,000 from $4,519,000 reported for the third quarter of 2007, while
net interest income for the third quarter of 2008 increased by
approximately $177,000 over the second quarter of 2008.
Supporting earnings for the third quarter of 2008 was the continued
generation of non-interest income, which reached $976,000, up $330,000, or
51 percent, from the same prior year quarter.
At September 30, 2008 the allowance for loan and lease losses stood at
$3,729,000, or 0.99 percent of total loans. During the third quarter of
2008, the Company increased its provision for loan losses to $175,000 from
$30,000 provided during the corresponding quarter last year.
At September 30, 2008, total loans increased by 25 percent to $374.9
million and deposits grew to $390.6 million, up 17 percent, when compared
to the results reported at the end of the third quarter of 2007.
Total assets at September 30, 2008 reached $513.6 million, representing an
increase of $83.5 million, or 19.4 percent, over September 30, 2007 total
assets of $430.1 million.
Robert F. Mangano, President and Chief Executive Officer, stated, "We are
pleased to report profitable quarter and nine month results considering the
overall trends in the financial services industry. Management has remained
focused on its primary business, the consumer and small business, and is
cautiously optimistic that recent government action will assist to
stabilize the financial markets over time." Mr. Mangano also indicated
that the Company does not have any direct exposure to the sub-prime
residential mortgage market, nor does it own any investments in Fannie Mae
or Freddie Mac preferred securities, which have adversely affected many
money center, regional and community banks across the country.
1ST Constitution Bancorp, through its primary subsidiary 1ST Constitution
Bank, operates 11 branch banking offices in Cranbury (2), Jamesburg, Fort
Lee, Hamilton, Hightstown, Montgomery, Perth Amboy, Plainsboro, Princeton,
and West Windsor. 1ST Constitution also operates
1stconstitutiondirect.com, which is an internet bank available for its
clients who prefer to bank from their computer rather than traveling to a
branch office.
1ST Constitution Bancorp common stock is traded on the Nasdaq Global Market
under the trading symbol "FCCY." Information about 1ST Constitution
Bancorp can be accessed via 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, 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.
1ST Constitution Bancorp
Selected Consolidated Financial Data
($ in thousands except per
share amounts) Three Months Ended Nine Months Ended
September 30, September 30,
2008 2007 2008 2007
--------- --------- --------- ---------
Income Statement Data:
Interest income $ 7,389 $ 7,826 $ 21,748 $ 22,660
Interest expense 3,202 3,307 9,546 9,369
--------- --------- --------- ---------
Net interest income 4,187 4,519 12,202 13,291
Provision for loan losses 175 30 535 100
--------- --------- --------- ---------
Net interest income after
prov.for loan losses 4,012 4,489 11,667 13,191
Non-interest income 976 645 2,567 1,938
Non-interest expenses 3,928 3,011 10,960 8,961
--------- --------- --------- ---------
Income before income taxes 1,060 2,123 3,274 6,168
Income tax expense 278 687 972 1,988
--------- --------- --------- ---------
Net income $ 782 $ 1,436 $ 2,302 $ 4,180
========= ========= ========= =========
Balance Sheet Data:
Total Assets $ 513,562 $ 430,143
Loans, including loans held
for sale 374,934 299,835
Allowance for loan losses (3,729) (3,318)
Securities available for sale 87,064 79,816
Securities held to maturity 16,131 26,112
Deposits 390,577 332,945
Shareholders' Equity 43,069 39,222
Performance Ratios:
Return on average assets 0.62% 1.32% 0.64% 1.33%
Return on average equity 7.39% 14.84% 7.36% 15.04%
Net interest margin
(tax-equivalent basis) 3.61% 4.51% 3.69% 4.60%
Efficiency ratio 76.1% 58.3% 74.2% 58.8%
Asset Quality:
Loans past due over 90 days
and still accruing $ 0 $ 0
Nonaccrual loans 2,482 4,021
OREO property 5,007 0
Net charge-offs (recoveries) 154 10
Allowance for loan losses to
total loans 0.99% 1.11%
Nonperforming loans to total
loans, including loans held
for sale 0.66% 1.34%
Per Share Data:
Earnings per share - Basic $ 0.20 $ 0.36 $ 0.58 $ 1.05
Earnings per share - Diluted $ 0.19 $ 0.36 $ 0.57 $ 1.04
Book value per share $ 10.78 $ 10.47
Contact Information: CONTACT:
Robert F. Mangano
President & Chief Executive Officer
(609) 655-4500
Joseph M. Reardon
Sr. Vice President and Treasurer
(609) 655-4500