1ST CONSTITUTION BANCORP

CIK:0001141807|SEC Filings

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Consolidated Statements of Income - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
INTEREST INCOME
Loans, including fees	$ 14,995	$ 16,477	$ 45,765	$ 46,656
Securities:
Taxable	545	725	1,569	2,633
Tax-exempt	456	504	1,392	1,438
Federal funds sold and short-term investments	108	2	203	95
Total interest income	16,104	17,708	48,929	50,822
INTEREST EXPENSE
Deposits	1,215	2,171	4,155	8,133
Borrowings	0	95	0	205
Redeemable subordinated debentures	81	90	248	348
Total interest expense	1,296	2,356	4,403	8,686
Net interest income	14,808	15,352	44,526	42,136
PROVISION FOR LOAN LOSSES	600	2,320	2,600	5,340
Net interest income after provision for loan losses	14,208	13,032	41,926	36,796
NON-INTEREST INCOME
Service charges on deposit accounts	116	126	340	471
Gain on sales of loans	2,632	3,396	8,493	6,987
Income on bank-owned life insurance	379	188	721	632
Gain on sales and calls of securities	2	79	6	97
Other income	774	947	2,156	2,105
Total non-interest income	3,903	4,736	11,716	10,292
NON-INTEREST EXPENSES
Salaries and employee benefits	6,623	7,106	20,034	19,276
Occupancy expense	1,221	1,222	3,693	3,597
Data processing expenses	490	486	1,486	1,402
FDIC insurance expense	108	225	533	484
Other real estate owned (recoveries) expenses	(22)	27	33	58
Merger-related expenses	737	0	1,184	64
Other operating expenses	1,684	1,896	5,510	5,711
Total non-interest expenses	10,841	10,962	32,473	30,592
Income before income taxes	7,270	6,806	21,169	16,496
INCOME TAXES	1,840	1,896	5,658	4,475
Net income	$ 5,430	$ 4,910	$ 15,511	$ 12,021
EARNINGS PER COMMON SHARE
Basic (in dollars per share)	$ 0.53	$ 0.48	$ 1.51	$ 1.18
Diluted (in dollars per share)	$ 0.53	$ 0.48	$ 1.51	$ 1.17
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic (in shares)	10,289,434	10,230,488	10,274,787	10,213,601
Diluted (in shares)	10,319,637	10,268,951	10,299,029	10,260,477

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
OPERATING ACTIVITIES:
Net income	$ 15,511	$ 12,021
Adjustments to reconcile net income to net cash provided by (used in) operating activities-
Provision for loan losses	2,600	5,340
Depreciation and amortization	1,426	1,561
Net amortization of premiums and discounts on securities	906	956
SBA loan discount accretion	(256)	(300)
(Gain) loss on sales and calls of securities available for sale	(2)	3
Gain on sales and calls of securities held to maturity	(4)	(100)
Gain on sales of other real estate owned	0	(71)
Write-down of other real estate owned	44	0
Gain on sales of loans held for sale	(8,493)	(6,987)
Originations of loans held for sale	(219,674)	(238,201)
Proceeds from sales of loans held for sale	251,181	222,919
Increase in cash surrender value on bank–owned life insurance	(521)	(557)
Gain on cash surrender value on bank-owned life insurance	(200)	(75)
Share-based compensation expense	831	856
Decrease in deferred tax asset	23	498
Noncash rent and equipment expense	95	144
Decrease (increase) in accrued interest receivable	894	(744)
Increase in other assets	(3,238)	(9,492)
Decrease in accrued interest payable	(426)	(523)
Increase in accrued expenses and other liabilities	26,703	338
Net cash provided by (used in) operating activities	67,400	(12,414)
Purchases of securities:
Available for sale	(108,360)	(23,415)
Held to maturity	(63,192)	(32,665)
Proceeds from sales, calls, maturities and payments of securities:
Available for sale	27,861	45,425
Held to maturity	30,286	21,244
Proceeds from bank-owned life insurance benefits paid	639	179
Net redemption of restricted stock	411	1,753
Net decrease (increase) in loans	234,426	(239,517)
Capital expenditures	(452)	(248)
Proceeds from sales of other real estate owned	0	375
Net cash provided by (used in) investing activities	121,619	(226,869)
FINANCING ACTIVITIES:
Exercise of stock options	172	5
Purchase of treasury shares	(160)	(243)
Cash dividends paid to shareholders	(2,977)	(2,754)
Net increase in deposits	75,722	233,671
(Decrease) increase in short-term borrowings	(9,825)	13,817
Net cash provided by financing activities	62,932	244,496
Increase in cash and cash equivalents	251,951	5,213
Cash and cash equivalents at beginning of period	21,995	14,842
Cash and cash equivalents at end of period	273,946	20,055
Cash paid during the period for -
Interest	4,829	9,209
Income taxes	7,315	4,311
Noncash items
Right-of-use assets	20	250
Lease liability	$ 20	$ 250

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
ASSETS
Cash and due from banks	$ 14,956	$ 3,661
Interest-earning deposits	258,990	18,334
Total cash and cash equivalents	273,946	21,995
Investment securities
Available for sale, at fair value	203,940	125,197
Held to maturity (fair value of $127,234 and $95,640 at September 30, 2021 and December 31, 2020, respectively)	125,198	92,552
Total investment securities	329,138	217,749
Loans held for sale	6,768	29,782
Loans	1,198,455	1,433,706
Less: allowance for loan losses	(17,160)	(15,641)
Net loans	1,181,295	1,418,065
Premises and equipment, net	13,835	14,345
Right-of-use assets	15,282	16,548
Accrued interest receivable	4,379	5,273
Bank-owned life insurance	37,398	37,316
Other real estate owned	48	92
Goodwill and intangible assets	35,765	36,003
Other assets	12,686	9,741
Total assets	1,910,540	1,806,909
Deposits
Non-interest bearing	534,436	425,210
Interest bearing	1,104,125	1,137,629
Total deposits	1,638,561	1,562,839
Short-term borrowings	0	9,825
Redeemable subordinated debentures	18,557	18,557
Accrued interest payable	425	851
Lease liability	16,216	17,387
Accrued expenses and other liabilities	36,858	9,793
Total liabilities	1,710,617	1,619,252
SHAREHOLDERS' EQUITY
Preferred stock, no par value; 5,000,000 shares authorized; none issued	0	0
Common stock, no par value; 30,000,000 shares authorized; 10,376,085 and 10,293,535 shares issued and 10,318,907 and 10,245,826 shares outstanding as of September 30, 2021 and December 31, 2020, respectively	112,138	111,135
Retained earnings	87,735	75,201
Treasury stock, 57,178 and 47,709 shares at September 30, 2021 and December 31, 2020, respectively	(771)	(611)
Accumulated other comprehensive income	821	1,932
Total shareholders' equity	199,923	187,657
Total liabilities and shareholders' equity	$ 1,910,540	$ 1,806,909