ý
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
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1ST CONSTITUTION BANCORP
|
(Exact Name of Registrant as Specified in Its Charter)
|
New Jersey
|
|
22-3665653
|
(State of Other Jurisdiction
of Incorporation or Organization)
|
|
(I.R.S. Employer Identification No.)
|
2650 Route 130, P.O. Box 634, Cranbury, NJ
|
|
08512
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(Address of Principal Executive Offices)
|
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(Zip Code)
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(609) 655-4500
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(Issuer’s Telephone Number, Including Area Code)
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|
(Former name, former address and former fiscal year, if changed since last report)
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Page
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PART I.
|
FINANCIAL INFORMATION
|
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Item 1.
|
Financial Statements
|
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|
|
|
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Consolidated Balance Sheets (unaudited) at June 30, 2017 and December 31, 2016
|
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Consolidated Statements of Income for the Three and Six Months Ended June 30, 2017 and June 30, 2016 (unaudited)
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Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2017 and June 30, 2016 (unaudited)
|
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Consolidated Statements of Changes in Shareholders' Equity for the Six Months Ended June 30, 2017 and June 30, 2016 (unaudited)
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Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2017 and June 30, 2016 (unaudited)
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Notes to Consolidated Financial Statements (unaudited)
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Item 2.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations
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Item 3.
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Quantitative and Qualitative Disclosures About Market Risk
|
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Item 4.
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Controls and Procedures
|
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PART II.
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OTHER INFORMATION
|
|
|
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Item 1.
|
Legal Proceedings
|
|
|
|
|
Item 1A.
|
Risk Factors
|
|
|
|
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Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
|
|
|
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Item 3.
|
Defaults Upon Senior Securities
|
|
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Item 4.
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Mine Safety Disclosures
|
|
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Item 5.
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Other Information
|
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Item 6.
|
Exhibits
|
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SIGNATURES
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||
ASSETS
|
|
|
|
|
||||
Cash and Due From Banks
|
|
$
|
14,211
|
|
|
$
|
14,886
|
|
Total cash and cash equivalents
|
|
14,211
|
|
|
14,886
|
|
||
Investment Securities:
|
|
|
|
|
|
|
||
Available for sale, at fair value
|
|
112,952
|
|
|
103,794
|
|
||
Held to maturity (fair value of $127,075 and $128,559
at June 30, 2017 and December 31, 2016, respectively) |
|
124,922
|
|
|
126,810
|
|
||
Total investment securities
|
|
237,874
|
|
|
230,604
|
|
||
|
|
|
|
|
||||
Loans Held for Sale
|
|
3,594
|
|
|
14,829
|
|
||
Loans
|
|
762,619
|
|
|
724,808
|
|
||
Less- Allowance for loan losses
|
|
(7,707
|
)
|
|
(7,494
|
)
|
||
Net loans
|
|
754,912
|
|
|
717,314
|
|
||
|
|
|
|
|
||||
Premises and Equipment, Net
|
|
10,691
|
|
|
10,673
|
|
||
Accrued Interest Receivable
|
|
3,060
|
|
|
3,095
|
|
||
Bank-Owned Life Insurance
|
|
22,444
|
|
|
22,184
|
|
||
Other Real Estate Owned
|
|
356
|
|
|
166
|
|
||
Goodwill and Intangible Assets
|
|
12,687
|
|
|
12,880
|
|
||
Other Assets
|
|
12,245
|
|
|
11,582
|
|
||
Total assets
|
|
$
|
1,072,074
|
|
|
$
|
1,038,213
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
||
LIABILITIES
|
|
|
|
|
|
|
||
Deposits
|
|
|
|
|
|
|
||
Non-interest bearing
|
|
$
|
189,653
|
|
|
$
|
170,854
|
|
Interest bearing
|
|
674,762
|
|
|
663,662
|
|
||
Total deposits
|
|
864,415
|
|
|
834,516
|
|
||
|
|
|
|
|
||||
Borrowings
|
|
73,825
|
|
|
73,050
|
|
||
Redeemable Subordinated Debentures
|
|
18,557
|
|
|
18,557
|
|
||
Accrued Interest Payable
|
|
812
|
|
|
866
|
|
||
Accrued Expenses and Other Liabilities
|
|
5,617
|
|
|
6,423
|
|
||
Total liabilities
|
|
963,226
|
|
|
933,412
|
|
||
|
|
|
|
|
||||
SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
||
Preferred stock, no par value; 5,000,000 shares authorized, none issued
|
|
—
|
|
|
—
|
|
||
Common Stock, no par value; 30,000,000 shares authorized; 8,079,495 and 8,027,087 shares issued and 8,046,197 and 7,993,789 shares outstanding as of June 30, 2017 and December 31, 2016, respectively
|
|
72,292
|
|
|
71,695
|
|
||
Retained earnings
|
|
37,139
|
|
|
34,074
|
|
||
Treasury Stock, 33,298 shares at June 30, 2017 and December 31, 2016, respectively
|
|
(368
|
)
|
|
(368
|
)
|
||
Accumulated other comprehensive loss
|
|
(215
|
)
|
|
(600
|
)
|
||
Total shareholders’ equity
|
|
108,848
|
|
|
104,801
|
|
||
Total liabilities and shareholders’ equity
|
|
$
|
1,072,074
|
|
|
$
|
1,038,213
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
INTEREST INCOME
|
|
|
|
|
|
|
|
||||||||
Loans, including fees
|
$
|
8,697
|
|
|
$
|
8,133
|
|
|
$
|
16,745
|
|
|
$
|
16,070
|
|
Securities:
|
|
|
|
|
|
|
|
||||||||
Taxable
|
839
|
|
|
815
|
|
|
1,654
|
|
|
1,632
|
|
||||
Tax-exempt
|
548
|
|
|
520
|
|
|
1,101
|
|
|
1,040
|
|
||||
Federal funds sold and short-term investments
|
86
|
|
|
18
|
|
|
158
|
|
|
67
|
|
||||
Total interest income
|
10,170
|
|
|
9,486
|
|
|
19,658
|
|
|
18,809
|
|
||||
|
|
|
|
|
|
|
|
||||||||
INTEREST EXPENSE
|
|
|
|
|
|
|
|
||||||||
Deposits
|
1,104
|
|
|
988
|
|
|
2,147
|
|
|
1,938
|
|
||||
Borrowings
|
109
|
|
|
165
|
|
|
236
|
|
|
301
|
|
||||
Redeemable subordinated debentures
|
127
|
|
|
104
|
|
|
246
|
|
|
203
|
|
||||
Total interest expense
|
1,340
|
|
|
1,257
|
|
|
2,629
|
|
|
2,442
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net interest income
|
8,830
|
|
|
8,229
|
|
|
17,029
|
|
|
16,367
|
|
||||
PROVISION (CREDIT) FOR LOAN LOSSES
|
150
|
|
|
(100
|
)
|
|
300
|
|
|
(300
|
)
|
||||
Net interest income after provision (credit) for loan losses
|
8,680
|
|
|
8,329
|
|
|
16,729
|
|
|
16,667
|
|
||||
|
|
|
|
|
|
|
|
||||||||
NON-INTEREST INCOME
|
|
|
|
|
|
|
|
||||||||
Service charges on deposit accounts
|
149
|
|
|
176
|
|
|
303
|
|
|
373
|
|
||||
Gain on sales of loans, net
|
1,018
|
|
|
747
|
|
|
2,607
|
|
|
1,650
|
|
||||
Income on Bank-owned life insurance
|
130
|
|
|
157
|
|
|
260
|
|
|
301
|
|
||||
(Loss) gain on sales of securities
|
(2
|
)
|
|
—
|
|
|
104
|
|
|
—
|
|
||||
Other income
|
471
|
|
|
456
|
|
|
895
|
|
|
808
|
|
||||
Total non-interest income
|
1,766
|
|
|
1,536
|
|
|
4,169
|
|
|
3,132
|
|
||||
|
|
|
|
|
|
|
|
||||||||
NON-INTEREST EXPENSES
|
|
|
|
|
|
|
|
||||||||
Salaries and employee benefits
|
5,127
|
|
|
4,291
|
|
|
10,050
|
|
|
8,607
|
|
||||
Occupancy expense
|
820
|
|
|
835
|
|
|
1,739
|
|
|
1,708
|
|
||||
Data processing expenses
|
326
|
|
|
314
|
|
|
645
|
|
|
627
|
|
||||
FDIC insurance expense
|
80
|
|
|
105
|
|
|
160
|
|
|
223
|
|
||||
Other real estate owned expenses
|
11
|
|
|
35
|
|
|
15
|
|
|
65
|
|
||||
Other operating expenses
|
1,322
|
|
|
858
|
|
|
2,728
|
|
|
1,872
|
|
||||
Total non-interest expenses
|
7,686
|
|
|
6,438
|
|
|
15,337
|
|
|
13,102
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Income before income taxes
|
2,760
|
|
|
3,427
|
|
|
5,561
|
|
|
6,697
|
|
||||
INCOME TAXES
|
841
|
|
|
1,113
|
|
|
1,693
|
|
|
2,161
|
|
||||
Net income
|
$
|
1,919
|
|
|
$
|
2,314
|
|
|
$
|
3,868
|
|
|
$
|
4,536
|
|
|
|
|
|
|
|
|
|
||||||||
NET INCOME PER COMMON SHARE
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.24
|
|
|
$
|
0.29
|
|
|
$
|
0.48
|
|
|
$
|
0.57
|
|
Diluted
|
$
|
0.23
|
|
|
$
|
0.28
|
|
|
$
|
0.47
|
|
|
$
|
0.56
|
|
|
|
|
|
|
|
|
|
||||||||
WEIGHTED AVERAGE SHARES OUTSTANDING
|
|
|
|
|
|
|
|
||||||||
Basic
|
8,033,299
|
|
|
7,947,146
|
|
|
8,029,690
|
|
|
7,944,069
|
|
||||
Diluted
|
8,301,939
|
|
|
8,151,796
|
|
|
8,301,431
|
|
|
8,144,458
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net income
|
$
|
1,919
|
|
|
$
|
2,314
|
|
|
$
|
3,868
|
|
|
$
|
4,536
|
|
Other comprehensive income:
|
|
|
|
|
|
|
|
||||||||
Unrealized holding gains on securities available for sale
|
545
|
|
|
738
|
|
|
726
|
|
|
1,257
|
|
||||
Tax effect
|
(198
|
)
|
|
(268
|
)
|
|
(267
|
)
|
|
(457
|
)
|
||||
Net of tax amount
|
347
|
|
|
470
|
|
|
459
|
|
|
800
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Reclassification adjustment for losses (gains) on securities available for sale (1)
|
2
|
|
|
—
|
|
|
(80
|
)
|
|
—
|
|
||||
Tax effect (2)
|
(1
|
)
|
|
—
|
|
|
32
|
|
|
—
|
|
||||
Net of tax amount
|
1
|
|
|
—
|
|
|
(48
|
)
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Pension liability
|
—
|
|
|
34
|
|
|
—
|
|
|
34
|
|
||||
Tax effect
|
—
|
|
|
(14
|
)
|
|
—
|
|
|
(14
|
)
|
||||
Net of tax amount
|
—
|
|
|
20
|
|
|
—
|
|
|
20
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Reclassification adjustment for actuarial gains for unfunded pension liability
|
|
|
|
|
|
|
|
||||||||
Income (3)
|
(24
|
)
|
|
(46
|
)
|
|
(43
|
)
|
|
(72
|
)
|
||||
Tax effect (2)
|
10
|
|
|
18
|
|
|
17
|
|
|
29
|
|
||||
Net of tax amount
|
(14
|
)
|
|
(28
|
)
|
|
(26
|
)
|
|
(43
|
)
|
||||
Total other comprehensive income
|
334
|
|
|
462
|
|
|
385
|
|
|
777
|
|
||||
Comprehensive income
|
$
|
2,253
|
|
|
$
|
2,776
|
|
|
$
|
4,253
|
|
|
$
|
5,313
|
|
|
|
Common
Stock
|
|
Retained
Earnings
|
|
Treasury
Stock
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Total
Shareholders’
Equity
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance, January 1, 2016
|
|
$
|
70,845
|
|
|
$
|
25,589
|
|
|
$
|
(344
|
)
|
|
$
|
(130
|
)
|
|
$
|
95,960
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Exercise of stock options (3,564)
|
|
17
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Share-based compensation
|
|
362
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
362
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Treasury stock purchased (2,000 shares)
|
|
—
|
|
|
—
|
|
|
(24
|
)
|
|
—
|
|
|
(24
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income for the six months ended
June 30, 2016 |
|
—
|
|
|
4,536
|
|
|
—
|
|
|
—
|
|
|
4,536
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
777
|
|
|
777
|
|
|||||
Balance, June 30, 2016
|
|
$
|
71,224
|
|
|
$
|
30,125
|
|
|
$
|
(368
|
)
|
|
$
|
647
|
|
|
$
|
101,628
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance, January 1, 2017
|
|
$
|
71,695
|
|
|
$
|
34,074
|
|
|
$
|
(368
|
)
|
|
$
|
(600
|
)
|
|
$
|
104,801
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Exercise of stock options (12,361)
|
|
113
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
113
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Share-based compensation
|
|
484
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
484
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash dividends declared
|
|
—
|
|
|
(803
|
)
|
|
—
|
|
|
—
|
|
|
(803
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income for the six months ended
June 30, 2017 |
|
—
|
|
|
3,868
|
|
|
—
|
|
|
—
|
|
|
3,868
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
385
|
|
|
385
|
|
|||||
Balance, June 30, 2017
|
|
$
|
72,292
|
|
|
$
|
37,139
|
|
|
$
|
(368
|
)
|
|
$
|
(215
|
)
|
|
$
|
108,848
|
|
|
Six Months Ended June 30,
|
||||||
|
2017
|
|
2016
|
||||
OPERATING ACTIVITIES:
|
|
|
|
||||
Net income
|
$
|
3,868
|
|
|
$
|
4,536
|
|
Adjustments to reconcile net income to net cash provided by operating activities-
|
|
|
|
||||
Provision (credit) for loan losses
|
300
|
|
|
(300
|
)
|
||
Depreciation and amortization
|
694
|
|
|
646
|
|
||
Net amortization of premiums and discounts on securities
|
482
|
|
|
547
|
|
||
Gains on sales of securities
|
(104
|
)
|
|
—
|
|
||
Gains on sales of other real estate owned
|
(14
|
)
|
|
(31
|
)
|
||
Gains on sales of loans held for sale
|
(2,607
|
)
|
|
(1,650
|
)
|
||
Originations of loans held for sale
|
(52,391
|
)
|
|
(35,727
|
)
|
||
Proceeds from sales of loans held for sale
|
66,233
|
|
|
38,497
|
|
||
Income on bank–owned life insurance
|
(260
|
)
|
|
(301
|
)
|
||
Share-based compensation expense
|
484
|
|
|
362
|
|
||
Decrease (increase) in accrued interest receivable
|
35
|
|
|
(198
|
)
|
||
(Increase) decrease in other assets
|
(899
|
)
|
|
175
|
|
||
(Decrease) increase in accrued interest payable
|
(54
|
)
|
|
—
|
|
||
(Decrease) in accrued expenses and other liabilities
|
(806
|
)
|
|
(621
|
)
|
||
Net cash provided by operating activities
|
14,961
|
|
|
5,935
|
|
||
INVESTING ACTIVITIES:
|
|
|
|
||||
Purchases of securities -
|
|
|
|
||||
Available for sale
|
(25,752
|
)
|
|
(26,138
|
)
|
||
Held to maturity
|
(16,460
|
)
|
|
(13,997
|
)
|
||
Proceeds from maturities and payments of securities -
|
|
|
|
||||
Available for sale
|
11,231
|
|
|
7,591
|
|
||
Held to maturity
|
17,645
|
|
|
14,581
|
|
||
Proceeds from sales of securities available for sale
|
5,728
|
|
|
—
|
|
||
Proceeds from sales of securities held to maturity
|
606
|
|
|
—
|
|
||
Proceeds from Bank-owned life insurance benefits paid
|
—
|
|
|
248
|
|
||
Purchase of restricted stock
|
(105
|
)
|
|
(2,670
|
)
|
||
Net increase in loans
|
(38,353
|
)
|
|
(79,451
|
)
|
||
Capital expenditures
|
(439
|
)
|
|
(181
|
)
|
||
Cost of improvement to OREO
|
(5
|
)
|
|
(60
|
)
|
||
Proceeds from sales of other real estate owned
|
284
|
|
|
1,033
|
|
||
Purchase of Bank-owned life insurance
|
—
|
|
|
(300
|
)
|
||
Net cash used in investing activities
|
(45,620
|
)
|
|
(99,344
|
)
|
||
FINANCING ACTIVITIES:
|
|
|
|
||||
Exercise of stock options
|
113
|
|
|
17
|
|
||
Purchase of treasury stock
|
—
|
|
|
(24
|
)
|
||
Cash dividends paid to shareholders
|
(803
|
)
|
|
—
|
|
||
Net increase in deposits
|
29,899
|
|
|
4,729
|
|
||
Net increase in borrowings
|
775
|
|
|
90,969
|
|
||
Net cash provided by financing activities
|
29,984
|
|
|
95,691
|
|
||
(Decrease) increase in cash and cash equivalents
|
(675
|
)
|
|
2,282
|
|
||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
14,886
|
|
|
11,368
|
|
||
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
$
|
14,211
|
|
|
$
|
13,650
|
|
SUPPLEMENTAL DISCLOSURES OF CASHFLOW INFORMATION
|
|
|
|
||||
Cash paid during the period for -
|
|
|
|
||||
Interest
|
$
|
2,683
|
|
|
$
|
2,442
|
|
Income taxes
|
1,577
|
|
|
2,161
|
|
||
Non-cash items: Transfer of loans to other real estate owned
|
455
|
|
|
142
|
|
(Dollars in thousands, except per share data)
|
|
Three Months Ended June 30, 2017
|
|||||||||
|
|
Net
Income
|
|
Weighted-average
shares
|
|
Per share
amount
|
|||||
Basic earnings per common share:
Net income
|
|
$
|
1,919
|
|
|
8,033,299
|
|
|
$
|
0.24
|
|
Effect of dilutive securities:
|
|
|
|
|
|
|
|||||
Stock options and warrants
|
|
|
|
268,640
|
|
|
|
||||
Diluted EPS:
|
|
|
|
|
|
|
|||||
Net income plus assumed conversion
|
|
$
|
1,919
|
|
|
8,301,939
|
|
|
$
|
0.23
|
|
(Dollars in thousands, except per share data)
|
|
Three Months Ended June 30, 2016
|
|||||||||
|
|
Net
Income
|
|
Weighted-average
shares
|
|
Per share
amount
|
|||||
Basic earnings per common share:
|
|
|
|
|
|
|
|||||
Net income
|
|
$
|
2,314
|
|
|
7,947,146
|
|
|
$
|
0.29
|
|
Effect of dilutive securities:
|
|
|
|
|
|
|
|||||
Stock options and warrants
|
|
|
|
204,650
|
|
|
|
||||
Diluted EPS:
|
|
|
|
|
|
|
|||||
Net income plus assumed conversion
|
|
$
|
2,314
|
|
|
8,151,796
|
|
|
$
|
0.28
|
|
(Dollars in thousands, except per share data)
|
|
Six Months Ended June 30, 2017
|
|||||||||
|
|
Net
Income
|
|
Weighted-average
shares
|
|
Per share
amount
|
|||||
Basic earnings per common share:
Net income
|
|
$
|
3,868
|
|
|
8,029,690
|
|
|
$
|
0.48
|
|
Effect of dilutive securities:
|
|
|
|
|
|
|
|
|
|
||
Stock options and warrants
|
|
|
|
|
271,741
|
|
|
|
|
||
Diluted EPS:
|
|
|
|
|
|
|
|
|
|
||
Net income plus assumed conversion
|
|
$
|
3,868
|
|
|
8,301,431
|
|
|
$
|
0.47
|
|
(Dollars in thousands, except per share data)
|
|
Six Months Ended June 30, 2016
|
|||||||||
|
|
Net
Income
|
|
Weighted-average
shares
|
|
Per share
amount
|
|||||
Basic earnings per common share:
|
|
|
|
|
|
|
|||||
Net income
|
|
$
|
4,536
|
|
|
7,944,069
|
|
|
$
|
0.57
|
|
Effect of dilutive securities:
|
|
|
|
|
|
|
|
|
|
||
Stock options and warrants
|
|
|
|
|
200,389
|
|
|
|
|
||
Diluted EPS:
|
|
|
|
|
|
|
|
|
|
||
Net income plus assumed conversion
|
|
$
|
4,536
|
|
|
8,144,458
|
|
|
$
|
0.56
|
|
|
|
|
|
|
|
|
|
|
||||||||
June 30, 2017
|
|
Amortized
Cost
|
|
|
Gross
Unrealized
Gains
|
|
|
Gross
Unrealized
Losses
|
|
|
Fair
Value
|
|
||||
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
||||||||
Available for sale
|
|
|
|
|
|
|
|
|
||||||||
U. S. Treasury securities and obligations of U.S. Government sponsored corporations (“GSE”) and agencies
|
|
$
|
3,510
|
|
|
$
|
—
|
|
|
$
|
(10
|
)
|
|
$
|
3,500
|
|
Residential collateralized mortgage obligations- GSE
|
|
25,739
|
|
|
52
|
|
|
(121
|
)
|
|
25,670
|
|
||||
Residential mortgage backed securities – GSE
|
|
22,825
|
|
|
213
|
|
|
(39
|
)
|
|
22,999
|
|
||||
Obligations of state and political subdivisions
|
|
20,134
|
|
|
256
|
|
|
(62
|
)
|
|
20,328
|
|
||||
Trust preferred debt securities – single issuer
|
|
2,480
|
|
|
—
|
|
|
(114
|
)
|
|
2,366
|
|
||||
Corporate debt securities
|
|
24,965
|
|
|
148
|
|
|
(147
|
)
|
|
24,966
|
|
||||
Other debt securities
|
|
13,117
|
|
|
15
|
|
|
(9
|
)
|
|
13,123
|
|
||||
|
|
$
|
112,770
|
|
|
$
|
684
|
|
|
$
|
(502
|
)
|
|
$
|
112,952
|
|
June 30, 2017
|
|
Amortized
Cost
|
|
Other-Than-
Temporary
Impairment
Recognized In
Accumulated
Other
Comprehensive
Loss
|
|
Carrying
Value
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||||||
Held to maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U. S. Treasury securities and obligations of U.S. Government
sponsored corporations (“GSE”) and agencies |
|
$
|
3,448
|
|
|
$
|
—
|
|
|
$
|
3,448
|
|
|
$
|
—
|
|
|
$
|
(67
|
)
|
|
$
|
3,381
|
|
Residential collateralized mortgage obligations – GSE
|
|
10,218
|
|
|
—
|
|
|
10,218
|
|
|
187
|
|
|
(103
|
)
|
|
10,302
|
|
||||||
Residential mortgage backed securities – GSE
|
|
38,326
|
|
|
—
|
|
|
38,326
|
|
|
415
|
|
|
(94
|
)
|
|
38,647
|
|
||||||
Obligations of state and political subdivisions
|
|
72,394
|
|
|
—
|
|
|
72,394
|
|
|
1,488
|
|
|
(62
|
)
|
|
73,820
|
|
||||||
Trust preferred debt securities-pooled
|
|
657
|
|
|
(501
|
)
|
|
156
|
|
|
389
|
|
|
—
|
|
|
545
|
|
||||||
Other debt securities
|
|
380
|
|
|
—
|
|
|
380
|
|
|
—
|
|
|
—
|
|
|
380
|
|
||||||
|
|
$
|
125,423
|
|
|
$
|
(501
|
)
|
|
$
|
124,922
|
|
|
$
|
2,479
|
|
|
$
|
(326
|
)
|
|
$
|
127,075
|
|
December 31, 2016
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
||||||||
Available for sale
|
|
|
|
|
|
|
|
|
||||||||
U. S. Treasury securities and obligations of U.S. Government sponsored corporations ("GSE") and agencies
|
|
$
|
3,514
|
|
|
$
|
—
|
|
|
$
|
(35
|
)
|
|
$
|
3,479
|
|
Residential collateralized mortgage obligations- GSE
|
|
22,647
|
|
|
58
|
|
|
(145
|
)
|
|
22,560
|
|
||||
Residential mortgage backed securities - GSE
|
|
31,207
|
|
|
388
|
|
|
(119
|
)
|
|
31,476
|
|
||||
Obligations of state and political subdivisions
|
|
21,604
|
|
|
152
|
|
|
(356
|
)
|
|
21,400
|
|
||||
Trust preferred debt securities-single issuer
|
|
2,478
|
|
|
—
|
|
|
(206
|
)
|
|
2,272
|
|
||||
Corporate debt securities
|
|
21,963
|
|
|
10
|
|
|
(205
|
)
|
|
21,768
|
|
||||
Other debt securities
|
|
845
|
|
|
—
|
|
|
(6
|
)
|
|
839
|
|
||||
|
|
$
|
104,258
|
|
|
$
|
608
|
|
|
$
|
(1,072
|
)
|
|
$
|
103,794
|
|
December 31, 2016
|
|
Amortized
Cost
|
|
Other-Than-
Temporary
Impairment
Recognized In
Accumulated
Other
Comprehensive
Loss
|
|
Carrying
Value
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||||||
Held to maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U. S. Treasury securities and obligations of U.S. Government sponsored corporations ("GSE") and agencies
|
|
$
|
3,727
|
|
|
$
|
—
|
|
|
$
|
3,727
|
|
|
$
|
—
|
|
|
$
|
(116
|
)
|
|
$
|
3,611
|
|
Residential collateralized
mortgage obligations-GSE
|
|
11,882
|
|
|
—
|
|
|
11,882
|
|
|
247
|
|
|
(130
|
)
|
|
11,999
|
|
||||||
Residential mortgage backed
securities - GSE
|
|
40,565
|
|
|
—
|
|
|
40,565
|
|
|
540
|
|
|
(113
|
)
|
|
40,992
|
|
||||||
Obligations of state and political subdivisions
|
|
70,017
|
|
|
—
|
|
|
70,017
|
|
|
1,274
|
|
|
(255
|
)
|
|
71,036
|
|
||||||
Trust preferred debt securities - pooled
|
|
657
|
|
|
(501
|
)
|
|
156
|
|
|
303
|
|
|
—
|
|
|
459
|
|
||||||
Other debt securities
|
|
463
|
|
|
—
|
|
|
463
|
|
|
—
|
|
|
(1
|
)
|
|
462
|
|
||||||
|
|
$
|
127,311
|
|
|
$
|
(501
|
)
|
|
$
|
126,810
|
|
|
$
|
2,364
|
|
|
$
|
(615
|
)
|
|
$
|
128,559
|
|
June 30, 2017
|
|
|
|
Less than 12 months
|
|
12 months or longer
|
|
Total
|
||||||||||||||||||
(Dollars in thousands)
|
|
Number
of
Securities
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
||||||||||||
U.S. Treasury securities and
obligations of U.S.
Government sponsored
corporations (GSE) and
agencies
|
|
3
|
|
$
|
6,881
|
|
|
$
|
(77
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,881
|
|
|
$
|
(77
|
)
|
Residential collateralized
mortgage obligations –GSE
|
|
8
|
|
17,025
|
|
|
(201
|
)
|
|
1,646
|
|
|
(23
|
)
|
|
18,671
|
|
|
(224
|
)
|
||||||
Residential mortgage backed
securities-GSE
|
|
30
|
|
25,807
|
|
|
(133
|
)
|
|
—
|
|
|
—
|
|
|
25,807
|
|
|
(133
|
)
|
||||||
Obligations of state and
political subdivisions
|
|
32
|
|
12,224
|
|
|
(124
|
)
|
|
—
|
|
|
—
|
|
|
12,224
|
|
|
(124
|
)
|
||||||
Trust preferred debt securities-
single issuer
|
|
4
|
|
—
|
|
|
—
|
|
|
2,366
|
|
|
(114
|
)
|
|
2,366
|
|
|
(114
|
)
|
||||||
Corporate debt securities
|
|
3
|
|
2,786
|
|
|
(57
|
)
|
|
4,910
|
|
|
(90
|
)
|
|
7,696
|
|
|
(147
|
)
|
||||||
Other debt securities
|
|
3
|
|
3,008
|
|
|
(7
|
)
|
|
719
|
|
|
(2
|
)
|
|
3,727
|
|
|
(9
|
)
|
||||||
Total temporarily impaired
securities
|
|
83
|
|
$
|
67,731
|
|
|
$
|
(599
|
)
|
|
$
|
9,641
|
|
|
$
|
(229
|
)
|
|
$
|
77,372
|
|
|
$
|
(828
|
)
|
December 31, 2016
|
|
|
|
Less than 12 months
|
|
12 months or longer
|
|
Total
|
||||||||||||||||||
(Dollars in thousands)
|
|
Number
of
Securities
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
||||||||||||
U.S. Treasury securities and
obligations of U.S.
Government sponsored
corporations (GSE) and
agencies
|
|
3
|
|
$
|
7,090
|
|
|
$
|
(151
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7,090
|
|
|
$
|
(151
|
)
|
Residential collateralized
mortgage obligations –GSE
|
|
7
|
|
17,242
|
|
|
(275
|
)
|
|
—
|
|
|
—
|
|
|
17,242
|
|
|
(275
|
)
|
||||||
Residential mortgage backed
securities - GSE
|
|
29
|
|
26,581
|
|
|
(216
|
)
|
|
3,542
|
|
|
(16
|
)
|
|
30,123
|
|
|
(232
|
)
|
||||||
Obligations of state and
political subdivisions
|
|
74
|
|
25,545
|
|
|
(611
|
)
|
|
—
|
|
|
—
|
|
|
25,545
|
|
|
(611
|
)
|
||||||
Trust preferred debt securities- single issuer
|
|
4
|
|
—
|
|
|
—
|
|
|
2,272
|
|
|
(206
|
)
|
|
2,272
|
|
|
(206
|
)
|
||||||
Corporate debt securities
|
|
6
|
|
12,700
|
|
|
(204
|
)
|
|
1,999
|
|
|
(1
|
)
|
|
14,699
|
|
|
(205
|
)
|
||||||
Other debt securities
|
|
3
|
|
—
|
|
|
—
|
|
|
1,276
|
|
|
(7
|
)
|
|
1,276
|
|
|
(7
|
)
|
||||||
Total temporarily impaired
securities
|
|
126
|
|
$
|
89,158
|
|
|
$
|
(1,457
|
)
|
|
$
|
9,089
|
|
|
$
|
(230
|
)
|
|
$
|
98,247
|
|
|
$
|
(1,687
|
)
|
(Dollars in thousands)
|
|
June 30, 2017
|
||||||||
|
|
Amortized Cost
|
|
Fair Value
|
|
Yield
|
||||
Available for sale
|
|
|
|
|
|
|
||||
Due in one year or less
|
|
$
|
3,508
|
|
|
$
|
3,502
|
|
|
3.01%
|
Due after one year through five years
|
|
20,639
|
|
|
20,747
|
|
|
2.18%
|
||
Due after five years through ten years
|
|
34,307
|
|
|
34,422
|
|
|
2.60%
|
||
Due after ten years
|
|
54,316
|
|
|
54,281
|
|
|
2.62%
|
||
Total
|
|
$
|
112,770
|
|
|
$
|
112,952
|
|
|
2.54%
|
|
|
|
|
|
|
|
||||
|
|
Carrying Value
|
|
Fair Value
|
|
Yield
|
||||
Held to maturity
|
|
|
|
|
|
|
|
|
||
Due in one year or less
|
|
$
|
33,723
|
|
|
$
|
33,739
|
|
|
1.56%
|
Due after one year through five years
|
|
17,087
|
|
|
17,756
|
|
|
4.57%
|
||
Due after five years through ten years
|
|
20,523
|
|
|
21,077
|
|
|
3.50%
|
||
Due after ten years
|
|
53,589
|
|
|
54,503
|
|
|
3.26%
|
||
Total
|
|
$
|
124,922
|
|
|
$
|
127,075
|
|
|
3.02%
|
(Dollars in thousands)
|
|
30-59 Days
|
|
60-89
Days
|
|
Greater
than 90
Days
|
|
Total Past
Due
|
|
Current
|
|
Total
Loans
Receivable
|
|
Recorded
Investment
> 90 Days
Accruing
|
|
Non-accrual
Loans
|
||||||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Construction Loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
116,464
|
|
|
$
|
116,464
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Commercial Business
|
|
122
|
|
|
192
|
|
|
408
|
|
|
722
|
|
|
93,513
|
|
|
94,235
|
|
|
46
|
|
|
3,454
|
|
||||||||
Commercial Real Estate
|
|
712
|
|
|
—
|
|
|
1,868
|
|
|
2,580
|
|
|
283,340
|
|
|
285,920
|
|
|
—
|
|
|
2,180
|
|
||||||||
Mortgage Warehouse Lines
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
200,380
|
|
|
200,380
|
|
|
—
|
|
|
—
|
|
||||||||
Residential Real Estate Loans
|
|
—
|
|
|
—
|
|
|
80
|
|
|
80
|
|
|
41,936
|
|
|
42,016
|
|
|
—
|
|
|
80
|
|
||||||||
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Loans to Individuals
|
|
32
|
|
|
22
|
|
|
70
|
|
|
124
|
|
|
22,587
|
|
|
22,711
|
|
|
—
|
|
|
310
|
|
||||||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
182
|
|
|
182
|
|
|
—
|
|
|
—
|
|
||||||||
Total loans
|
|
866
|
|
|
214
|
|
|
2,426
|
|
|
3,506
|
|
|
758,402
|
|
|
761,908
|
|
|
46
|
|
|
6,024
|
|
||||||||
Deferred loan fees and costs, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
711
|
|
|
711
|
|
|
—
|
|
|
—
|
|
||||||||
Total loans, net
|
|
$
|
866
|
|
|
$
|
214
|
|
|
$
|
2,426
|
|
|
$
|
3,506
|
|
|
$
|
759,113
|
|
|
$
|
762,619
|
|
|
$
|
46
|
|
|
$
|
6,024
|
|
(Dollars in thousands)
|
|
30-59 Days
|
|
60-89
Days
|
|
Greater than
90 Days
|
|
Total Past
Due
|
|
Current
|
|
Total
Loans
Receivable
|
|
Recorded
Investment
> 90 Days
Accruing
|
|
Non-accrual
Loans
|
||||||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Construction Loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
186
|
|
|
$
|
186
|
|
|
$
|
95,849
|
|
|
$
|
96,035
|
|
|
$
|
—
|
|
|
$
|
186
|
|
Commercial Business
|
|
113
|
|
|
115
|
|
|
790
|
|
|
1,018
|
|
|
98,632
|
|
|
99,650
|
|
|
—
|
|
|
920
|
|
||||||||
Commercial Real Estate
|
|
741
|
|
|
942
|
|
|
2,707
|
|
|
4,390
|
|
|
238,003
|
|
|
242,393
|
|
|
—
|
|
|
3,187
|
|
||||||||
Mortgage Warehouse Lines
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
216,259
|
|
|
216,259
|
|
|
—
|
|
|
—
|
|
||||||||
Residential Real Estate Loans
|
|
564
|
|
|
—
|
|
|
392
|
|
|
956
|
|
|
43,835
|
|
|
44,791
|
|
|
—
|
|
|
544
|
|
||||||||
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Loans to Individuals
|
|
—
|
|
|
29
|
|
|
361
|
|
|
390
|
|
|
23,346
|
|
|
23,736
|
|
|
24
|
|
|
337
|
|
||||||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
207
|
|
|
207
|
|
|
—
|
|
|
—
|
|
||||||||
Total loans
|
|
1,418
|
|
|
1,086
|
|
|
4,436
|
|
|
6,940
|
|
|
716,131
|
|
|
723,071
|
|
|
24
|
|
|
5,174
|
|
||||||||
Deferred loan fees and costs, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,737
|
|
|
1,737
|
|
|
—
|
|
|
—
|
|
||||||||
Total loans, net
|
|
$
|
1,418
|
|
|
$
|
1,086
|
|
|
$
|
4,436
|
|
|
$
|
6,940
|
|
|
$
|
717,868
|
|
|
$
|
724,808
|
|
|
$
|
24
|
|
|
$
|
5,174
|
|
Consumer Credit Exposure -
By Payment Activity
|
|
Loans To
Individuals
|
|
Other
|
||||
|
|
|
|
|
||||
Performing
|
|
$
|
22,401
|
|
|
$
|
182
|
|
Nonperforming
|
|
310
|
|
|
—
|
|
||
Total
|
|
$
|
22,711
|
|
|
$
|
182
|
|
Consumer Credit Exposure - By
Payment Activity
|
|
Loans To
Individuals
|
|
Other
|
||||
Performing
|
|
$
|
23,375
|
|
|
$
|
207
|
|
Nonperforming
|
|
361
|
|
|
—
|
|
||
Total
|
|
$
|
23,736
|
|
|
$
|
207
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
|
Construction
|
|
|
Commercial
Business
|
|
Commercial
Real Estate
|
|
|
Mortgage
Warehouse Lines
|
|
Residential
Real Estate
|
|
|
Loans to
Individuals
|
|
Other
|
|
|
Unallocated
|
|
|
Deferred
Loan
Fees/Costs
|
|
Total
|
|||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Individually evaluated for impairment
|
|
$
|
—
|
|
|
$
|
255
|
|
|
$
|
87
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
342
|
|
Loans acquired with deteriorated credit quality
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Collectively evaluated for impairment
|
|
1,455
|
|
|
1,182
|
|
|
2,904
|
|
|
902
|
|
|
385
|
|
|
120
|
|
|
—
|
|
|
417
|
|
|
—
|
|
|
7,365
|
|
||||||||||
Ending Balance
|
|
$
|
1,455
|
|
|
$
|
1,437
|
|
|
$
|
2,991
|
|
|
$
|
902
|
|
|
$
|
385
|
|
|
$
|
120
|
|
|
$
|
—
|
|
|
$
|
417
|
|
|
$
|
—
|
|
|
$
|
7,707
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Loans receivable:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Individually evaluated for impairment
|
|
$
|
205
|
|
|
$
|
3,492
|
|
|
$
|
5,142
|
|
|
$
|
—
|
|
|
$
|
80
|
|
|
$
|
310
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9,229
|
|
Loans acquired with deteriorated credit quality
|
|
—
|
|
|
252
|
|
|
602
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
854
|
|
||||||||||
Collectively evaluated for impairment
|
|
116,259
|
|
|
90,491
|
|
|
280,176
|
|
|
200,380
|
|
|
41,936
|
|
|
22,401
|
|
|
182
|
|
|
—
|
|
|
711
|
|
|
752,536
|
|
||||||||||
Ending Balance
|
|
$
|
116,464
|
|
|
$
|
94,235
|
|
|
$
|
285,920
|
|
|
$
|
200,380
|
|
|
$
|
42,016
|
|
|
$
|
22,711
|
|
|
$
|
182
|
|
|
$
|
—
|
|
|
$
|
711
|
|
|
$
|
762,619
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
|
Construction
|
|
Commercial
Business
|
|
Commercial
Real Estate
|
|
Mortgage
Warehouse Lines
|
|
Residential
Real Estate
|
|
Loans to
Individuals
|
|
Other
|
|
Unallocated
|
|
Deferred
Loan
Fees/Costs
|
|
Total
|
||||||||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Individually evaluated for impairment
|
|
$
|
7
|
|
|
$
|
101
|
|
|
$
|
114
|
|
|
$
|
—
|
|
|
$
|
38
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
260
|
|
Loans acquired with deteriorated credit quality
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Collectively evaluated for impairment
|
|
1,197
|
|
|
1,631
|
|
|
2,460
|
|
|
973
|
|
|
329
|
|
|
112
|
|
|
—
|
|
|
532
|
|
|
—
|
|
|
7,234
|
|
||||||||||
Ending Balance
|
|
$
|
1,204
|
|
|
$
|
1,732
|
|
|
$
|
2,574
|
|
|
$
|
973
|
|
|
$
|
367
|
|
|
$
|
112
|
|
|
$
|
—
|
|
|
$
|
532
|
|
|
$
|
—
|
|
|
$
|
7,494
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Loans receivable:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Individually evaluated for impairment
|
|
$
|
391
|
|
|
$
|
947
|
|
|
$
|
3,817
|
|
|
$
|
—
|
|
|
$
|
544
|
|
|
$
|
337
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,036
|
|
Loans acquired with deteriorated credit quality
|
|
—
|
|
|
191
|
|
|
930
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,121
|
|
||||||||||
Collectively evaluated for impairment
|
|
95,644
|
|
|
98,512
|
|
|
237,646
|
|
|
216,259
|
|
|
44,247
|
|
|
23,399
|
|
|
207
|
|
|
—
|
|
|
1,737
|
|
|
717,651
|
|
||||||||||
Ending Balance
|
|
$
|
96,035
|
|
|
$
|
99,650
|
|
|
$
|
242,393
|
|
|
$
|
216,259
|
|
|
$
|
44,791
|
|
|
$
|
23,736
|
|
|
$
|
207
|
|
|
$
|
—
|
|
|
$
|
1,737
|
|
|
$
|
724,808
|
|
(Dollars in thousands)
|
|
Construction
|
|
Commercial
Business
|
|
Commercial
Real Estate
|
|
Mortgage
Warehouse Lines
|
|
Residential
Real Estate
|
|
Loans to Individuals
|
|
Other
|
|
Unallocated
|
|
Total
|
||||||||||||||||||
Balance - December 31, 2016
|
|
$
|
1,204
|
|
|
$
|
1,732
|
|
|
$
|
2,574
|
|
|
$
|
973
|
|
|
$
|
367
|
|
|
$
|
112
|
|
|
$
|
—
|
|
|
$
|
532
|
|
|
$
|
7,494
|
|
Provision (Credit) charged to operations
|
|
166
|
|
|
88
|
|
|
56
|
|
|
(331
|
)
|
|
99
|
|
|
9
|
|
|
—
|
|
|
63
|
|
|
150
|
|
|||||||||
Loans charged off
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(101
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(101
|
)
|
|||||||||
Recoveries of loans charged off
|
|
—
|
|
|
2
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|||||||||
Balance - March 31, 2017
|
|
$
|
1,370
|
|
|
$
|
1,822
|
|
|
$
|
2,634
|
|
|
$
|
642
|
|
|
$
|
365
|
|
|
$
|
122
|
|
|
$
|
—
|
|
|
$
|
595
|
|
|
$
|
7,550
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Provision (Credit) charged to operations
|
|
85
|
|
|
(386
|
)
|
|
352
|
|
|
260
|
|
|
20
|
|
|
(3
|
)
|
|
—
|
|
|
(178
|
)
|
|
150
|
|
|||||||||
Loans charged off
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Recoveries of loans charged off
|
|
—
|
|
|
1
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|||||||||
Balance - June 30, 2017
|
|
$
|
1,455
|
|
|
$
|
1,437
|
|
|
$
|
2,991
|
|
|
$
|
902
|
|
|
$
|
385
|
|
|
$
|
120
|
|
|
$
|
—
|
|
|
$
|
417
|
|
|
$
|
7,707
|
|
(Dollars in thousands)
|
|
Construction
|
|
Commercial
Business
|
|
Commercial
Real Estate
|
|
Mortgage
Warehouse Lines
|
|
Residential
Real Estate
|
|
Loans to Individuals
|
|
Other
|
|
Unallocated
|
|
Total
|
||||||||||||||||||
Balance - December 31, 2015
|
|
$
|
1,025
|
|
|
$
|
2,005
|
|
|
$
|
3,049
|
|
|
$
|
866
|
|
|
$
|
288
|
|
|
$
|
109
|
|
|
$
|
—
|
|
|
$
|
218
|
|
|
$
|
7,560
|
|
(Credit) Provision charged to operations
|
|
(44
|
)
|
|
(657
|
)
|
|
311
|
|
|
1
|
|
|
(96
|
)
|
|
(92
|
)
|
|
—
|
|
|
377
|
|
|
(200
|
)
|
|||||||||
Loans charged off
|
|
—
|
|
|
—
|
|
|
(60
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(60
|
)
|
|||||||||
Recoveries of loans charged off
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||||||
Balance - March 31, 2016
|
|
$
|
981
|
|
|
$
|
1,348
|
|
|
$
|
3,300
|
|
|
$
|
867
|
|
|
$
|
192
|
|
|
$
|
19
|
|
|
$
|
—
|
|
|
$
|
595
|
|
|
$
|
7,302
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
(Credit) Provision charged to operations
|
|
(6
|
)
|
|
(284
|
)
|
|
(263
|
)
|
|
323
|
|
|
85
|
|
|
3
|
|
|
—
|
|
|
42
|
|
|
(100
|
)
|
|||||||||
Loans charged off
|
|
—
|
|
|
(101
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(101
|
)
|
|||||||||
Recoveries of loans charged off
|
|
—
|
|
|
1
|
|
|
378
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
381
|
|
|||||||||
Balance - June 30, 2016
|
|
$
|
975
|
|
|
$
|
964
|
|
|
$
|
3,415
|
|
|
$
|
1,190
|
|
|
$
|
277
|
|
|
$
|
24
|
|
|
$
|
—
|
|
|
$
|
637
|
|
|
$
|
7,482
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2017
|
|
Six Months Ended June 30, 2017
|
||||||||||||||||||
|
|
Recorded
Investment
|
|
|
Unpaid
Principal
Balance
|
|
|
Related
Allowance
|
|
|
Average
Recorded
Investment
|
|
|
Interest
Income
Recognized
|
|
|
Average
Recorded Investment |
|
|
Interest
Income Recognized |
|
|||||||
With no allowance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction
|
|
$
|
205
|
|
|
$
|
205
|
|
|
$
|
—
|
|
|
$
|
188
|
|
|
$
|
3
|
|
|
$
|
186
|
|
|
$
|
6
|
|
Commercial Business
|
|
702
|
|
|
857
|
|
|
—
|
|
|
688
|
|
|
82
|
|
|
741
|
|
|
86
|
|
|||||||
Commercial Real Estate
|
|
2,756
|
|
|
2,771
|
|
|
—
|
|
|
2,723
|
|
|
92
|
|
|
2,772
|
|
|
105
|
|
|||||||
Mortgage Warehouse Lines
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Subtotal
|
|
3,663
|
|
|
3,833
|
|
|
—
|
|
|
3,599
|
|
|
177
|
|
|
3,699
|
|
|
197
|
|
|||||||
Residential Real Estate
|
|
80
|
|
|
80
|
|
|
—
|
|
|
181
|
|
|
—
|
|
|
210
|
|
|
—
|
|
|||||||
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans to Individuals
|
|
310
|
|
|
310
|
|
|
—
|
|
|
297
|
|
|
—
|
|
|
316
|
|
|
—
|
|
|||||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Subtotal
|
|
310
|
|
|
310
|
|
|
—
|
|
|
297
|
|
|
—
|
|
|
316
|
|
|
—
|
|
|||||||
With no allowance:
|
|
$
|
4,053
|
|
|
$
|
4,223
|
|
|
$
|
—
|
|
|
$
|
4,077
|
|
|
$
|
177
|
|
|
$
|
4,225
|
|
|
$
|
197
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
With an allowance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
137
|
|
|
$
|
—
|
|
|
$
|
171
|
|
|
$
|
—
|
|
Commercial Business
|
|
3,042
|
|
|
3,042
|
|
|
255
|
|
|
3,680
|
|
|
60
|
|
|
2,595
|
|
|
127
|
|
|||||||
Commercial Real Estate
|
|
2,988
|
|
|
2,988
|
|
|
87
|
|
|
2,989
|
|
|
43
|
|
|
2,600
|
|
|
85
|
|
|||||||
Mortgage Warehouse Lines
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Subtotal
|
|
6,030
|
|
|
6,030
|
|
|
342
|
|
|
6,806
|
|
|
103
|
|
|
5,366
|
|
|
212
|
|
|||||||
Residential Real Estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
100
|
|
|
—
|
|
|||||||
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Loans to Individuals
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Subtotal
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
With an allowance:
|
|
$
|
6,030
|
|
|
$
|
6,030
|
|
|
$
|
342
|
|
|
$
|
6,806
|
|
|
$
|
103
|
|
|
$
|
5,466
|
|
|
$
|
212
|
|
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction
|
|
205
|
|
|
205
|
|
|
—
|
|
|
325
|
|
|
3
|
|
|
357
|
|
|
6
|
|
|||||||
Commercial Business
|
|
3,744
|
|
|
3,899
|
|
|
255
|
|
|
4,368
|
|
|
142
|
|
|
3,336
|
|
|
213
|
|
|||||||
Commercial Real Estate
|
|
5,744
|
|
|
5,759
|
|
|
87
|
|
|
5,712
|
|
|
135
|
|
|
5,372
|
|
|
190
|
|
|||||||
Mortgage Warehouse Lines
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Residential Real Estate
|
|
80
|
|
|
80
|
|
|
—
|
|
|
181
|
|
|
—
|
|
|
310
|
|
|
—
|
|
|||||||
Consumer
|
|
310
|
|
|
310
|
|
|
—
|
|
|
297
|
|
|
—
|
|
|
316
|
|
|
—
|
|
|||||||
Total
|
|
$
|
10,083
|
|
|
$
|
10,253
|
|
|
$
|
342
|
|
|
$
|
10,883
|
|
|
$
|
280
|
|
|
$
|
9,691
|
|
|
$
|
409
|
|
(Dollars in thousands
|
|
|
|
|
|
|
||||||
|
|
Recorded
Investment
|
|
|
Unpaid
Principal Balance
|
|
|
Related
Allowance
|
|
|||
With no allowance:
|
|
|
|
|
|
|
||||||
Construction
|
|
$
|
186
|
|
|
$
|
186
|
|
|
$
|
—
|
|
Commercial Business
|
|
883
|
|
|
1,054
|
|
|
—
|
|
|||
Commercial Real Estate
|
|
1,380
|
|
|
1,380
|
|
|
—
|
|
|||
Mortgage Warehouse Lines
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Subtotal
|
|
2,449
|
|
|
2,620
|
|
|
—
|
|
|||
Residential Real Estate
|
|
244
|
|
|
244
|
|
|
—
|
|
|||
Consumer
|
|
|
|
|
|
|
||||||
Loans to Individuals
|
|
337
|
|
|
337
|
|
|
—
|
|
|||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Subtotal
|
|
337
|
|
|
337
|
|
|
—
|
|
|||
With no allowance
|
|
$
|
3,030
|
|
|
$
|
3,201
|
|
|
$
|
—
|
|
With an allowance:
|
|
|
|
|
|
|
||||||
Construction
|
|
$
|
205
|
|
|
$
|
205
|
|
|
$
|
7
|
|
Commercial Business
|
|
255
|
|
|
255
|
|
|
101
|
|
|||
Commercial Real Estate
|
|
3,367
|
|
|
3,367
|
|
|
114
|
|
|||
Mortgage Warehouse Lines
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Subtotal
|
|
3,827
|
|
|
3,827
|
|
|
222
|
|
|||
Residential Real Estate
|
|
300
|
|
|
316
|
|
|
38
|
|
|||
Consumer
|
|
|
|
|
|
|
||||||
Loans to Individuals
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Subtotal
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
With an allowance
|
|
$
|
4,127
|
|
|
$
|
4,143
|
|
|
$
|
260
|
|
|
|
|
|
|
|
|
||||||
Total:
|
|
|
|
|
|
|
||||||
Construction
|
|
391
|
|
|
391
|
|
|
7
|
|
|||
Commercial Business
|
|
1,138
|
|
|
1,309
|
|
|
101
|
|
|||
Commercial Real Estate
|
|
4,747
|
|
|
4,747
|
|
|
114
|
|
|||
Mortgage Warehouse Lines
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential Real Estate
|
|
544
|
|
|
560
|
|
|
38
|
|
|||
Consumer
|
|
337
|
|
|
337
|
|
|
—
|
|
|||
Total
|
|
$
|
7,157
|
|
|
$
|
7,344
|
|
|
$
|
260
|
|
Impaired Loans Receivables (By Class) – June 30, 2016
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended June 30, 2016
|
|
Six Months Ended June 30, 2016
|
||||||||||||
(Dollars in thousands)
|
|
Average
Recorded
Investment
|
|
Interest Income Recognized
|
|
Average
Recorded Investment |
|
Interest Income Recognized
|
||||||||
With no allowance:
|
|
|
|
|
|
|
|
|
||||||||
Construction
|
|
$
|
317
|
|
|
$
|
2
|
|
|
$
|
255
|
|
|
$
|
4
|
|
Commercial Business
|
|
448
|
|
|
10
|
|
|
434
|
|
|
21
|
|
||||
Commercial Real Estate
|
|
1,251
|
|
|
20
|
|
|
1,545
|
|
|
30
|
|
||||
Mortgage Warehouse Lines
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Subtotal
|
|
2,016
|
|
|
32
|
|
|
2,234
|
|
|
55
|
|
||||
Residential Real Estate
|
|
1,298
|
|
|
—
|
|
|
1,198
|
|
|
(2
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Consumer
|
|
|
|
|
|
|
|
|
|
|
||||||
Loans to Individuals
|
|
263
|
|
|
—
|
|
|
263
|
|
|
—
|
|
||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Subtotal
|
|
263
|
|
|
—
|
|
|
263
|
|
|
—
|
|
||||
With no allowance:
|
|
$
|
3,577
|
|
|
$
|
32
|
|
|
$
|
3,695
|
|
|
$
|
53
|
|
With an allowance:
|
|
|
|
|
|
|
|
|
|
|
||||||
Construction
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Commercial Business
|
|
143
|
|
|
—
|
|
|
177
|
|
|
—
|
|
||||
Commercial Real Estate
|
|
3,888
|
|
|
22
|
|
|
3,836
|
|
|
38
|
|
||||
Mortgage Warehouse Lines
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Subtotal
|
|
4,031
|
|
|
22
|
|
|
4,013
|
|
|
38
|
|
||||
Residential Real Estate
|
|
—
|
|
|
—
|
|
|
100
|
|
|
—
|
|
||||
Consumer
|
|
|
|
|
|
|
|
|
|
|
||||||
Loans to Individuals
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Subtotal
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
With an allowance:
|
|
$
|
4,031
|
|
|
$
|
22
|
|
|
$
|
4,113
|
|
|
$
|
38
|
|
Total:
|
|
|
|
|
|
|
|
|
|
|
||||||
Construction
|
|
317
|
|
|
2
|
|
|
255
|
|
|
4
|
|
||||
Commercial Business
|
|
591
|
|
|
10
|
|
|
611
|
|
|
21
|
|
||||
Commercial Real Estate
|
|
5,139
|
|
|
42
|
|
|
5,381
|
|
|
68
|
|
||||
Mortgage Warehouse Lines
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Residential Real Estate
|
|
1,298
|
|
|
—
|
|
|
1,298
|
|
|
(2
|
)
|
||||
Consumer
|
|
263
|
|
|
—
|
|
|
263
|
|
|
—
|
|
||||
Total
|
|
$
|
7,608
|
|
|
$
|
54
|
|
|
$
|
7,808
|
|
|
$
|
91
|
|
(Dollars in thousands)
|
|
|
|
|
||||
|
|
June 30, 2017
|
|
|
December 31, 2016
|
|
||
Outstanding balance
|
|
$
|
1,042
|
|
|
$
|
1,470
|
|
Carrying amount
|
|
$
|
854
|
|
|
$
|
1,121
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
||||||||
Balance at beginning of period
|
|
$
|
23
|
|
|
$
|
52
|
|
|
$
|
30
|
|
|
$
|
73
|
|
Transfer from non-accretable discount
|
|
161
|
|
|
—
|
|
|
161
|
|
|
—
|
|
||||
Accretion of discount
|
|
(13
|
)
|
|
(8
|
)
|
|
(20
|
)
|
|
(29
|
)
|
||||
Balance at end of period
|
|
$
|
171
|
|
|
$
|
44
|
|
|
$
|
171
|
|
|
$
|
44
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
||||
|
||||||||||
June 30, 2017
|
|
December 31, 2016
|
||||||||
Number
of loans
|
|
Recorded
Investment
|
|
Number of
loans
|
|
Recorded
Investment
|
||||
1
|
|
$
|
80
|
|
|
3
|
|
$
|
524
|
|
(Dollars in thousands, except share amounts)
|
|
Number of
|
|
Weighted
Average
|
|
Weighted
Average
Remaining
Contractual
|
|
Aggregate
Intrinsic
|
|||||
Stock Options
|
|
Shares
|
|
Exercise Price
|
|
Term (years)
|
|
Value
|
|||||
Outstanding at January 1, 2017
|
|
165,801
|
|
|
$
|
7.35
|
|
|
|
|
|
||
Granted
|
|
9,900
|
|
|
18.65
|
|
|
|
|
|
|||
Exercised
|
|
(12,361
|
)
|
|
7.85
|
|
|
|
|
|
|||
Forfeited
|
|
(715
|
)
|
|
15.71
|
|
|
|
|
|
|||
Expired
|
|
—
|
|
|
—
|
|
|
|
|
|
|||
Outstanding at June 30, 2017
|
|
162,625
|
|
|
$
|
7.97
|
|
|
4.7
|
|
$
|
1,574
|
|
Exercisable at June 30, 2017
|
|
132,566
|
|
|
$
|
6.88
|
|
|
3.9
|
|
$
|
1,428
|
|
|
|
||
Fair value of options granted
|
$
|
6.05
|
|
Risk-free rate of return
|
2.45
|
%
|
|
Expected option life in years
|
7
|
|
|
Expected volatility
|
31.25
|
%
|
|
Expected dividends (1)
|
1.19
|
%
|
|
|
Number of
|
|
Average
Grant-Date
|
|||
Non-vested shares
|
|
Shares
|
|
Fair Value
|
|||
Non-vested at January 1, 2017
|
|
143,259
|
|
|
$
|
9.02
|
|
Granted
|
|
39,100
|
|
|
18.26
|
|
|
Vested
|
|
(26,210
|
)
|
|
11.08
|
|
|
Forfeited
|
|
(1,287
|
)
|
|
14.94
|
|
|
Non-vested at June 30, 2017
|
|
154,862
|
|
|
$
|
10.96
|
|
(Dollars in thousands)
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
||||
Service cost
|
|
$
|
79
|
|
|
$
|
56
|
|
|
$
|
112
|
|
|
$
|
105
|
|
Interest cost
|
|
33
|
|
|
47
|
|
|
78
|
|
|
85
|
|
||||
Actuarial gain recognized
|
|
(24
|
)
|
|
(46
|
)
|
|
(43
|
)
|
|
(72
|
)
|
||||
Total
|
|
$
|
88
|
|
|
$
|
57
|
|
|
$
|
147
|
|
|
$
|
118
|
|
|
|
Before-Tax
Amount |
|
Income Tax
Effect |
|
Net-of-Tax
Amount |
||||||
(Dollars in thousands)
|
|
|
|
|
|
|
||||||
June 30, 2017
|
|
|
|
|
|
|
||||||
Unrealized net holding gains on available-for-sale securities
|
|
$
|
182
|
|
|
$
|
(106
|
)
|
|
$
|
76
|
|
Reclassification adjustment for loss realized in income
|
|
2
|
|
|
(1
|
)
|
|
1
|
|
|||
Other comprehensive income on available for sale securities
|
|
184
|
|
|
(107
|
)
|
|
77
|
|
|||
Unrealized impairment loss on held to maturity security
|
|
(501
|
)
|
|
170
|
|
|
(331
|
)
|
|||
Unfunded pension liability:
|
|
|
|
|
|
|
|
|
|
|||
Plan actuarial gains included in other comprehensive income
|
|
66
|
|
|
(27
|
)
|
|
39
|
|
|||
Accumulated other comprehensive loss
|
|
$
|
(251
|
)
|
|
$
|
36
|
|
|
$
|
(215
|
)
|
|
|
Before-Tax
Amount
|
|
Income Tax
Effect
|
|
Net-of-Tax
Amount
|
||||||
December 31, 2016
|
|
|
|
|
|
|
||||||
Unrealized net holding losses on available-for-sale securities
|
|
$
|
(464
|
)
|
|
$
|
130
|
|
|
$
|
(334
|
)
|
Reclassification adjustment for (gains) losses realized in income
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Other comprehensive loss on securities available for sale
|
|
(464
|
)
|
|
130
|
|
|
(334
|
)
|
|||
Unrealized impairment loss on held to maturity security
|
|
(501
|
)
|
|
170
|
|
|
(331
|
)
|
|||
Unfunded pension liability:
|
|
|
|
|
|
|
||||||
Changes from plan actuarial gains and losses included in other comprehensive income
|
|
269
|
|
|
(108
|
)
|
|
161
|
|
|||
Reclassification adjustment for gains realized in income
|
|
$
|
(160
|
)
|
|
$
|
64
|
|
|
$
|
(96
|
)
|
Other comprehensive gain from plan actuarial gains
|
|
$
|
109
|
|
|
$
|
(44
|
)
|
|
$
|
65
|
|
Accumulated other comprehensive loss
|
|
$
|
(856
|
)
|
|
$
|
256
|
|
|
$
|
(600
|
)
|
|
|
Unrealized
Holding
Gains
(Losses) on
Available for Sale
Securities
|
|
Unrealized
Impairment
Loss on
Held to Maturity
Security
|
|
Unfunded
Pension
Liability
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
||||||||
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
||||||||
Three Months Ended June 30, 2017:
|
|
|
|
|
|
|
|
|
||||||||
Balance, beginning of period
|
|
$
|
(271
|
)
|
|
$
|
(331
|
)
|
|
$
|
53
|
|
|
$
|
(549
|
)
|
Other comprehensive income before reclassifications
|
|
347
|
|
|
—
|
|
|
—
|
|
|
347
|
|
||||
Amounts reclassified from accumulated other comprehensive income (loss)
|
|
—
|
|
|
—
|
|
|
(14
|
)
|
|
(14
|
)
|
||||
Reclassification adjustment for loss realized in income
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
Other comprehensive income
|
|
348
|
|
|
—
|
|
|
(14
|
)
|
|
334
|
|
||||
Balance, end of period
|
|
$
|
77
|
|
|
$
|
(331
|
)
|
|
$
|
39
|
|
|
$
|
(215
|
)
|
|
|
Unrealized
Holding
Gains
(Losses) on
Available for
Sale Securities
|
|
Unrealized
Impairment
Loss on
Held to Maturity
Security
|
|
Unfunded
Pension
Liability
|
|
Accumulated
Other
Comprehensive
Income
|
||||||||
Three Months Ended June 30, 2016:
|
|
|
|
|
|
|
|
|
||||||||
Balance, beginning of period
|
|
$
|
420
|
|
|
$
|
(331
|
)
|
|
$
|
96
|
|
|
$
|
185
|
|
Other comprehensive income before reclassifications
|
|
470
|
|
|
—
|
|
|
20
|
|
|
490
|
|
||||
Amounts reclassified from accumulated other comprehensive income
|
|
—
|
|
|
—
|
|
|
(28
|
)
|
|
(28
|
)
|
||||
Other comprehensive income
|
|
470
|
|
|
—
|
|
|
(8
|
)
|
|
462
|
|
||||
Balance, end of period
|
|
$
|
890
|
|
|
$
|
(331
|
)
|
|
$
|
88
|
|
|
$
|
647
|
|
|
|
Unrealized
Holding Gains (Losses) on Available for Sale Securities |
|
Unrealized
Impairment Loss on Held to Maturity Security |
|
Unfunded
Pension Liability |
|
Accumulated
Other Comprehensive Loss |
||||||||
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
||||||||
Six Months Ended June 30, 2017:
|
|
|
|
|
|
|
|
|
||||||||
Balance, beginning of period
|
|
$
|
(334
|
)
|
|
$
|
(331
|
)
|
|
$
|
65
|
|
|
$
|
(600
|
)
|
Other comprehensive income before reclassifications
|
|
459
|
|
|
—
|
|
|
—
|
|
|
459
|
|
||||
Amounts reclassified from accumulated other comprehensive income (loss)
|
|
—
|
|
|
—
|
|
|
(26
|
)
|
|
(26
|
)
|
||||
Reclassification adjustment for gains realized in income
|
|
(48
|
)
|
|
|
|
—
|
|
|
(48
|
)
|
|||||
Other comprehensive income
|
|
411
|
|
|
—
|
|
|
(26
|
)
|
|
385
|
|
||||
Balance, end of period
|
|
$
|
77
|
|
|
$
|
(331
|
)
|
|
$
|
39
|
|
|
$
|
(215
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Unrealized
Holding Gains (Losses) on Available for Sale Securities |
|
Unrealized
Impairment Loss on Held to Maturity Security |
|
Unfunded
Pension Liability |
|
Accumulated
Other Comprehensive Income (Loss) |
||||||||
Six Months Ended June 30, 2016:
|
|
|
|
|
|
|
|
|
||||||||
Balance, beginning of period
|
|
$
|
90
|
|
|
$
|
(331
|
)
|
|
$
|
111
|
|
|
$
|
(130
|
)
|
Other comprehensive income before reclassifications
|
|
800
|
|
|
—
|
|
|
20
|
|
|
820
|
|
||||
Amounts reclassified from accumulated other comprehensive income
|
|
—
|
|
|
—
|
|
|
(43
|
)
|
|
(43
|
)
|
||||
Other comprehensive income
|
|
800
|
|
|
—
|
|
|
(23
|
)
|
|
777
|
|
||||
Balance, end of period
|
|
$
|
890
|
|
|
$
|
(331
|
)
|
|
$
|
88
|
|
|
$
|
647
|
|
Level 1:
|
Unadjusted quoted prices in active markets that are accessible at the measurement date for identical unrestricted assets or liabilities.
|
Level 2:
|
Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability.
|
Level 3:
|
Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported with little or no market activity).
|
(Dollars in thousands)
|
|
Level 1
Inputs
|
|
Level 2
Inputs
|
|
Level 3
Inputs
|
|
Total Fair
Value
|
||||||||
June 30, 2017:
|
|
|
|
|
|
|
|
|
||||||||
Securities available for sale:
|
|
|
|
|
|
|
|
|
||||||||
U. S. Treasury securities and obligations of U.S. Government
sponsored corporations (“GSE”) and agencies
|
|
$
|
—
|
|
|
$
|
3,500
|
|
|
$
|
—
|
|
|
$
|
3,500
|
|
Residential collateralized mortgage obligations- GSE
|
|
—
|
|
|
25,670
|
|
|
—
|
|
|
25,670
|
|
||||
Residential mortgage backed securities – GSE
|
|
—
|
|
|
22,999
|
|
|
—
|
|
|
22,999
|
|
||||
Obligations of state and political subdivisions
|
|
—
|
|
|
20,328
|
|
|
—
|
|
|
20,328
|
|
||||
Trust preferred debt securities – single issuer
|
|
945
|
|
|
1,421
|
|
|
—
|
|
|
2,366
|
|
||||
Corporate debt securities
|
|
16,257
|
|
|
8,709
|
|
|
—
|
|
|
24,966
|
|
||||
Other debt securities
|
|
—
|
|
|
13,123
|
|
|
—
|
|
|
13,123
|
|
||||
Total
|
|
$
|
17,202
|
|
|
$
|
95,750
|
|
|
$
|
—
|
|
|
$
|
112,952
|
|
(Dollars in thousands)
|
|
Level 1
Inputs
|
|
Level 2
Inputs
|
|
Level 3
Inputs
|
|
Total Fair
Value
|
||||||||
December 31, 2016:
|
|
|
|
|
|
|
|
|
||||||||
Securities available for sale:
|
|
|
|
|
|
|
|
|
||||||||
U. S. Treasury securities and obligations of U.S. Government
sponsored corporations (“GSE”) and agencies
|
|
$
|
—
|
|
|
$
|
3,479
|
|
|
$
|
—
|
|
|
$
|
3,479
|
|
Residential collateralized mortgage obligations- GSE
|
|
—
|
|
|
22,560
|
|
|
—
|
|
|
22,560
|
|
||||
Residential mortgage backed securities – GSE
|
|
—
|
|
|
31,476
|
|
|
—
|
|
|
31,476
|
|
||||
Obligations of state and political subdivisions
|
|
—
|
|
|
21,400
|
|
|
—
|
|
|
21,400
|
|
||||
Trust preferred debt securities – single issuer
|
|
—
|
|
|
2,272
|
|
|
—
|
|
|
2,272
|
|
||||
Corporate debt securities
|
|
12,826
|
|
|
8,942
|
|
|
—
|
|
|
21,768
|
|
||||
Other debt securities
|
|
—
|
|
|
839
|
|
|
—
|
|
|
839
|
|
||||
Total
|
|
$
|
12,826
|
|
|
$
|
90,968
|
|
|
$
|
—
|
|
|
$
|
103,794
|
|
(Dollars in thousands)
|
|
Level 1
Inputs
|
|
Level 2
Inputs
|
|
Level 3
Inputs
|
|
Total Fair
Value
|
||||||||
June 30, 2017:
|
|
|
|
|
|
|
|
|
||||||||
Impaired loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,124
|
|
|
$
|
6,124
|
|
Other real estate owned
|
|
—
|
|
|
—
|
|
|
190
|
|
|
190
|
|
||||
December 31, 2016:
|
|
|
|
|
|
|
|
|
||||||||
Impaired loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,130
|
|
|
$
|
4,130
|
|
(1)
|
Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable.
|
(2)
|
Includes quantitative adjustments by management and estimated liquidation expenses.
|
June 30, 2017
|
||||||||||||||||||||
(Dollars in thousands)
|
|
Carrying
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Fair
|
||||||||||
|
|
Value
|
|
Inputs
|
|
Inputs
|
|
Inputs
|
|
Value
|
||||||||||
Cash and cash equivalents
|
|
$
|
14,211
|
|
|
$
|
14,211
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14,211
|
|
Securities available for sale
|
|
112,952
|
|
|
17,202
|
|
|
95,750
|
|
|
—
|
|
|
112,952
|
|
|||||
Securities held to maturity
|
|
124,922
|
|
|
—
|
|
|
127,075
|
|
|
—
|
|
|
127,075
|
|
|||||
Loans held for sale
|
|
3,594
|
|
|
—
|
|
|
3,651
|
|
|
—
|
|
|
3,651
|
|
|||||
Loans, net
|
|
754,912
|
|
|
—
|
|
|
—
|
|
|
762,068
|
|
|
762,068
|
|
|||||
SBA servicing asset
|
|
665
|
|
|
—
|
|
|
822
|
|
|
—
|
|
|
822
|
|
|||||
Interest rate lock derivative
|
|
145
|
|
|
—
|
|
|
145
|
|
|
—
|
|
|
145
|
|
|||||
Accrued interest receivable
|
|
3,060
|
|
|
—
|
|
|
3,060
|
|
|
—
|
|
|
3,060
|
|
|||||
FHLB stock
|
|
4,003
|
|
|
—
|
|
|
4,003
|
|
|
—
|
|
|
4,003
|
|
|||||
Deposits
|
|
(864,415
|
)
|
|
—
|
|
|
(863,537
|
)
|
|
—
|
|
|
(863,537
|
)
|
|||||
Borrowings
|
|
(73,825
|
)
|
|
—
|
|
|
(73,848
|
)
|
|
—
|
|
|
(73,848
|
)
|
|||||
Redeemable subordinated debentures
|
|
(18,557
|
)
|
|
—
|
|
|
(12,150
|
)
|
|
—
|
|
|
(12,150
|
)
|
|||||
Accrued interest payable
|
|
(812
|
)
|
|
—
|
|
|
(812
|
)
|
|
—
|
|
|
(812
|
)
|
December 31, 2016
|
||||||||||||||||||||
(Dollars in thousands)
|
|
Carrying
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Fair
|
||||||||||
|
|
Value
|
|
Inputs
|
|
Inputs
|
|
Inputs
|
|
Value
|
||||||||||
Cash and cash equivalents
|
|
$
|
14,886
|
|
|
$
|
14,668
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14,668
|
|
Securities available for sale
|
|
103,794
|
|
|
12,826
|
|
|
90,968
|
|
|
—
|
|
|
103,794
|
|
|||||
Securities held to maturity
|
|
126,810
|
|
|
—
|
|
|
128,559
|
|
|
—
|
|
|
128,559
|
|
|||||
Loans held for sale
|
|
14,829
|
|
|
—
|
|
|
15,103
|
|
|
—
|
|
|
15,103
|
|
|||||
Loans, net
|
|
717,314
|
|
|
—
|
|
|
—
|
|
|
721,285
|
|
|
721,285
|
|
|||||
SBA servicing asset
|
|
605
|
|
|
—
|
|
|
822
|
|
|
—
|
|
|
822
|
|
|||||
Interest rate lock derivative
|
|
123
|
|
|
—
|
|
|
123
|
|
|
—
|
|
|
123
|
|
|||||
Accrued interest receivable
|
|
3,095
|
|
|
—
|
|
|
3,095
|
|
|
—
|
|
|
3,095
|
|
|||||
FHLB stock
|
|
3,962
|
|
|
—
|
|
|
3,962
|
|
|
—
|
|
|
3,962
|
|
|||||
Deposits
|
|
(834,516
|
)
|
|
—
|
|
|
(834,050
|
)
|
|
—
|
|
|
(834,050
|
)
|
|||||
Borrowings
|
|
(73,050
|
)
|
|
—
|
|
|
(73,222
|
)
|
|
—
|
|
|
(73,222
|
)
|
|||||
Redeemable subordinated debentures
|
|
(18,557
|
)
|
|
—
|
|
|
(11,922
|
)
|
|
—
|
|
|
(11,922
|
)
|
|||||
Accrued interest payable
|
|
(866
|
)
|
|
—
|
|
|
(866
|
)
|
|
—
|
|
|
(866
|
)
|
•
|
Net interest income was $8.8 million in the second quarter of 2017, an increase of $601,000 from $8.2 million in the second quarter of 2016, and the net interest margin was 3.79% and 3.69% on a tax equivalent basis for the respective periods.
|
•
|
Non-interest income increased $230,000 to $1.8 million for the three months ended June 30, 2017 compared to $1.5 million for the three months ended June 30, 2016.
|
•
|
Non-performing assets were $6.4 million or 0.60% of assets at June 30, 2017 compared to $5.4 million and 0.52% of assets at December 31, 2016.
|
•
|
The Bank recorded a provision for loan losses in the amount of $150,000 in the second quarter of 2017, and net recoveries of loans previously charged-off were $7,000.
|
•
|
Commercial business, commercial real estate and construction loans totaled $496.6 million at June 30, 2017 and increased $75.2 million compared to $421.4 million at June 30, 2016 and increased $58.5 million compared to $438.1 million at December 31, 2016, respectively.
|
•
|
On June 23, 2017, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.05 per common share, which was paid on July 25, 2017 to all shareholders of record as of the close of business on July 3, 2017.
|
•
|
In June 2017, the Bank launched Momentum Mortgage powered by 1ST Constitution Bank, a digital residential mortgage platform that allows applicants to upload documents, communicate with their loan officer and experience an easier, faster and more convenient mortgage application process entirely online, utilizing any device anywhere.
|
(Dollars in thousands)
|
Three months ended June 30, 2017
|
|
Three months ended June 30, 2016
|
||||||||||||||||||
|
Average
Balance |
|
Interest
|
|
Average
Yield |
|
Average
Balance |
|
Interest
|
|
Average
Yield |
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Federal Funds Sold/Short-Term Investments
|
$
|
38,469
|
|
|
$
|
86
|
|
|
0.89
|
%
|
|
$
|
18,659
|
|
|
$
|
18
|
|
|
0.38
|
%
|
Investment Securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Taxable
|
144,790
|
|
|
839
|
|
|
2.32
|
%
|
|
149,629
|
|
|
815
|
|
|
2.18
|
%
|
||||
Tax-exempt (4)
|
93,415
|
|
|
811
|
|
|
3.47
|
%
|
|
80,036
|
|
|
770
|
|
|
3.85
|
%
|
||||
Total
|
238,205
|
|
|
1,650
|
|
|
2.77
|
%
|
|
229,665
|
|
|
1,585
|
|
|
2.76
|
%
|
||||
Loan Portfolio: (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Construction
|
110,994
|
|
|
1,699
|
|
|
6.05
|
%
|
|
92,650
|
|
|
1,309
|
|
|
5.59
|
%
|
||||
Residential real estate
|
41,275
|
|
|
460
|
|
|
4.46
|
%
|
|
42,125
|
|
|
449
|
|
|
4.26
|
%
|
||||
Loans to Individuals
|
22,466
|
|
|
232
|
|
|
4.14
|
%
|
|
23,895
|
|
|
235
|
|
|
3.96
|
%
|
||||
Commercial Real Estate
|
264,778
|
|
|
3,290
|
|
|
4.92
|
%
|
|
210,133
|
|
|
2,863
|
|
|
5.39
|
%
|
||||
Commercial Business
|
76,517
|
|
|
1,087
|
|
|
5.62
|
%
|
|
87,098
|
|
|
988
|
|
|
4.49
|
%
|
||||
SBA Loans
|
22,527
|
|
|
354
|
|
|
6.30
|
%
|
|
20,513
|
|
|
294
|
|
|
5.77
|
%
|
||||
Mortgage Warehouse Lines
|
140,469
|
|
|
1,530
|
|
|
4.31
|
%
|
|
192,553
|
|
|
1,966
|
|
|
4.04
|
%
|
||||
Loans Held for Sale
|
4,303
|
|
|
39
|
|
|
3.64
|
%
|
|
3,039
|
|
|
16
|
|
|
2.16
|
%
|
||||
All Other Loans
|
1,677
|
|
|
6
|
|
|
1.47
|
%
|
|
2,156
|
|
|
13
|
|
|
2.34
|
%
|
||||
Total
|
685,006
|
|
|
8,697
|
|
|
5.09
|
%
|
|
674,162
|
|
|
8,133
|
|
|
4.85
|
%
|
||||
Total Interest-Earning Assets
|
961,680
|
|
|
$
|
10,433
|
|
|
4.35
|
%
|
|
922,486
|
|
|
$
|
9,736
|
|
|
4.24
|
%
|
||
Allowance for Loan Losses
|
(7,617
|
)
|
|
|
|
|
|
(7,432
|
)
|
|
|
|
|
||||||||
Cash and Due From Bank
|
4,978
|
|
|
|
|
|
|
5,065
|
|
|
|
|
|
||||||||
Other Assets
|
58,346
|
|
|
|
|
|
|
60,092
|
|
|
|
|
|
||||||||
Total Assets
|
$
|
1,017,387
|
|
|
|
|
|
|
$
|
980,211
|
|
|
|
|
|
||||||
Liabilities and Shareholders’ Equity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Money Market and NOW Accounts
|
$
|
341,704
|
|
|
$
|
358
|
|
|
0.42
|
%
|
|
$
|
294,048
|
|
|
$
|
270
|
|
|
0.37
|
%
|
Savings Accounts
|
209,719
|
|
|
331
|
|
|
0.63
|
%
|
|
205,997
|
|
|
302
|
|
|
0.59
|
%
|
||||
Certificates of Deposit
|
139,931
|
|
|
415
|
|
|
1.19
|
%
|
|
143,057
|
|
|
416
|
|
|
1.17
|
%
|
||||
Other Borrowed Funds
|
12,367
|
|
|
109
|
|
|
3.54
|
%
|
|
47,028
|
|
|
165
|
|
|
1.41
|
%
|
||||
Redeemable Subordinated Debt
|
18,557
|
|
|
127
|
|
|
2.72
|
%
|
|
18,557
|
|
|
104
|
|
|
2.22
|
%
|
||||
Total Interest-Bearing Liabilities
|
722,278
|
|
|
$
|
1,340
|
|
|
0.74
|
%
|
|
708,687
|
|
|
$
|
1,257
|
|
|
0.71
|
%
|
||
Net Interest Spread (2)
|
|
|
|
|
3.61
|
%
|
|
|
|
|
|
3.53
|
%
|
||||||||
Demand Deposits
|
181,446
|
|
|
|
|
|
|
165,396
|
|
|
|
|
|
||||||||
Other Liabilities
|
5,901
|
|
|
|
|
|
|
6,737
|
|
|
|
|
|
||||||||
Total Liabilities
|
909,625
|
|
|
|
|
|
|
880,820
|
|
|
|
|
|
||||||||
Shareholders’ Equity
|
107,762
|
|
|
|
|
|
|
99,391
|
|
|
|
|
|
||||||||
Total Liabilities and Shareholders’ Equity
|
$
|
1,017,387
|
|
|
|
|
|
|
$
|
980,211
|
|
|
|
|
|
||||||
Net Interest Income and Net Interest Margin (3)
|
|
|
$
|
9,093
|
|
|
3.79
|
%
|
|
|
|
$
|
8,479
|
|
|
3.69
|
%
|
(1)
|
Loan origination fees are considered an adjustment to interest income. For the purpose of calculating loan yields, average loan balances include non-accrual loans with no related interest income and the average balance of loans held for sale. Please refer to Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operation under the heading “Non-Performing Assets” for a discussion of the Bank’s policy with regard to non-accrual loans.
|
(2)
|
The net interest rate spread is the difference between the average yield on interest-earning assets and the average rate paid on interest-bearing liabilities.
|
(3)
|
The net interest margin is equal to net interest income divided by average interest-earning assets.
|
(4)
|
Tax-equivalent basis. The tax equivalent adjustment was $263 and $250 for the three months ended June 30, 2017 and June 30, 2016, respectively.
|
(Dollars in thousands)
|
Six months ended June 30, 2017
|
|
Six months ended June 30, 2016
|
||||||||||||||||||
|
Average
Balance
|
|
Interest
|
|
Average
Yield
|
|
Average
Balance
|
|
Interest
|
|
Average
Yield
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Federal Funds Sold/Short-Term Investments
|
$
|
38,917
|
|
|
$
|
158
|
|
|
0.82
|
%
|
|
$
|
30,611
|
|
|
$
|
67
|
|
|
0.44
|
%
|
Investment Securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Taxable
|
141,312
|
|
|
1,654
|
|
|
2.34
|
%
|
|
142,420
|
|
|
1,632
|
|
|
2.29
|
%
|
||||
Tax-exempt (4)
|
94,022
|
|
|
1,629
|
|
|
3.46
|
%
|
|
80,348
|
|
|
1,540
|
|
|
3.83
|
%
|
||||
Total
|
235,334
|
|
|
3,283
|
|
|
2.79
|
%
|
|
222,768
|
|
|
3,172
|
|
|
2.85
|
%
|
||||
Loan Portfolio: (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Construction
|
105,140
|
|
|
3,140
|
|
|
5.94
|
%
|
|
92,547
|
|
|
2,661
|
|
|
5.69
|
%
|
||||
Residential real estate
|
41,983
|
|
|
915
|
|
|
4.36
|
%
|
|
40,583
|
|
|
858
|
|
|
4.23
|
%
|
||||
Loans to Individuals
|
22,452
|
|
|
477
|
|
|
4.29
|
%
|
|
23,539
|
|
|
461
|
|
|
3.94
|
%
|
||||
Commercial Real Estate
|
257,649
|
|
|
6,283
|
|
|
4.85
|
%
|
|
207,244
|
|
|
5,747
|
|
|
5.49
|
%
|
||||
Commercial Business
|
74,541
|
|
|
1,966
|
|
|
5.24
|
%
|
|
85,508
|
|
|
1,970
|
|
|
4.56
|
%
|
||||
SBA Loans
|
22,513
|
|
|
718
|
|
|
6.43
|
%
|
|
20,748
|
|
|
601
|
|
|
5.83
|
%
|
||||
Mortgage Warehouse Lines
|
146,171
|
|
|
3,100
|
|
|
4.22
|
%
|
|
178,912
|
|
|
3,679
|
|
|
4.07
|
%
|
||||
Loans Held for Sale
|
4,761
|
|
|
128
|
|
|
5.41
|
%
|
|
4,670
|
|
|
69
|
|
|
2.96
|
%
|
||||
All Other Loans
|
1,981
|
|
|
18
|
|
|
1.82
|
%
|
|
2,079
|
|
|
24
|
|
|
2.33
|
%
|
||||
Total
|
677,191
|
|
|
16,745
|
|
|
4.99
|
%
|
|
655,830
|
|
|
16,070
|
|
|
4.93
|
%
|
||||
Total Interest-Earning Assets
|
951,442
|
|
|
$
|
20,186
|
|
|
4.27
|
%
|
|
909,209
|
|
|
$
|
19,309
|
|
|
4.27
|
%
|
||
Allowance for Loan Losses
|
(7,583
|
)
|
|
|
|
|
|
(7,525
|
)
|
|
|
|
|
||||||||
Cash and Due From Bank
|
5,502
|
|
|
|
|
|
|
5,120
|
|
|
|
|
|
||||||||
Other Assets
|
58,275
|
|
|
|
|
|
|
59,534
|
|
|
|
|
|
||||||||
Total Assets
|
$
|
1,007,636
|
|
|
|
|
|
|
$
|
966,338
|
|
|
|
|
|
||||||
Liabilities and Shareholders’ Equity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Money Market and NOW Accounts
|
$
|
331,197
|
|
|
$
|
675
|
|
|
0.41
|
%
|
|
$
|
295,382
|
|
|
$
|
539
|
|
|
0.37
|
%
|
Savings Accounts
|
210,822
|
|
|
654
|
|
|
0.63
|
%
|
|
204,663
|
|
|
573
|
|
|
0.56
|
%
|
||||
Certificates of Deposit
|
141,199
|
|
|
818
|
|
|
1.17
|
%
|
|
143,379
|
|
|
826
|
|
|
1.16
|
%
|
||||
Other Borrowed Funds
|
16,917
|
|
|
236
|
|
|
2.81
|
%
|
|
37,054
|
|
|
301
|
|
|
1.63
|
%
|
||||
Trust Preferred Securities
|
18,557
|
|
|
246
|
|
|
2.64
|
%
|
|
18,557
|
|
|
203
|
|
|
2.19
|
%
|
||||
Total Interest-Bearing Liabilities
|
718,692
|
|
|
$
|
2,629
|
|
|
0.74
|
%
|
|
699,035
|
|
|
$
|
2,442
|
|
|
0.70
|
%
|
||
Net Interest Spread (2)
|
|
|
|
|
3.53
|
%
|
|
|
|
|
|
3.57
|
%
|
||||||||
Demand Deposits
|
175,770
|
|
|
|
|
|
|
161,593
|
|
|
|
|
|
||||||||
Other Liabilities
|
6,511
|
|
|
|
|
|
|
7,435
|
|
|
|
|
|
||||||||
Total Liabilities
|
900,973
|
|
|
|
|
|
|
868,063
|
|
|
|
|
|
||||||||
Shareholders’ Equity
|
106,663
|
|
|
|
|
|
|
98,275
|
|
|
|
|
|
||||||||
Total Liabilities and Shareholders’ Equity
|
$
|
1,007,636
|
|
|
|
|
|
|
$
|
966,338
|
|
|
|
|
|
||||||
Net Interest Income and Net Interest Margin (3)
|
|
|
$
|
17,557
|
|
|
3.72
|
%
|
|
|
|
$
|
16,867
|
|
|
3.73
|
%
|
(1)
|
Loan origination fees are considered an adjustment to interest income. For the purpose of calculating loan yields, average loan balances include non-accrual loans with no related interest income and the average balance of loans held for sale. Please refer to Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operation under the heading “Non-Performing Assets” for a discussion of the Bank’s policy with regard to non-accrual loans.
|
(2)
|
The net interest rate spread is the difference between the average yield on interest-earning assets and the average rate paid on interest-bearing liabilities.
|
(3)
|
The net interest margin is equal to net interest income divided by average interest-earning assets.
|
(4)
|
Tax-equivalent basis. The tax equivalent adjustment was $528 and $500 for the six months ended June 30, 2017 and June 30, 2016, respectively.
|
Non-interest Expenses
|
|
|
|
|
|
|
|
||||||||
(Dollars in thousands)
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
||||
Salaries and employee benefits
|
$
|
5,127
|
|
|
$
|
4,291
|
|
|
$
|
10,050
|
|
|
$
|
8,607
|
|
Occupancy expense
|
820
|
|
|
835
|
|
|
1,739
|
|
|
1,708
|
|
||||
Data processing expenses
|
326
|
|
|
314
|
|
|
645
|
|
|
627
|
|
||||
FDIC insurance expense
|
80
|
|
|
105
|
|
|
160
|
|
|
223
|
|
||||
Other real estate owned expenses
|
11
|
|
|
35
|
|
|
15
|
|
|
65
|
|
||||
Equipment expense
|
161
|
|
|
125
|
|
|
284
|
|
|
248
|
|
||||
Marketing
|
68
|
|
|
57
|
|
|
140
|
|
|
104
|
|
||||
Regulatory, professional and other fees
|
677
|
|
|
456
|
|
|
1,137
|
|
|
818
|
|
||||
Directors’ fees
|
25
|
|
|
23
|
|
|
48
|
|
|
47
|
|
||||
Amortization of intangible assets
|
96
|
|
|
97
|
|
|
193
|
|
|
202
|
|
||||
Other expenses
|
295
|
|
|
100
|
|
|
926
|
|
|
453
|
|
||||
Total
|
$
|
7,686
|
|
|
$
|
6,438
|
|
|
$
|
15,337
|
|
|
$
|
13,102
|
|
Loan Portfolio Composition
|
|
|
|
|
|
|
|
|
||||||
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
||||||
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||
Component
|
|
Amount
|
|
%
|
|
Amount
|
|
%
|
||||||
Construction loans
|
|
$
|
116,464
|
|
|
15
|
%
|
|
$
|
96,035
|
|
|
13
|
%
|
Residential real estate loans
|
|
42,016
|
|
|
6
|
%
|
|
44,791
|
|
|
6
|
%
|
||
Commercial business
|
|
94,235
|
|
|
13
|
%
|
|
99,650
|
|
|
15
|
%
|
||
Commercial real estate
|
|
285,920
|
|
|
37
|
%
|
|
242,393
|
|
|
33
|
%
|
||
Mortgage warehouse lines
|
|
200,380
|
|
|
26
|
%
|
|
216,259
|
|
|
30
|
%
|
||
Loans to individuals
|
|
22,711
|
|
|
3
|
%
|
|
23,736
|
|
|
3
|
%
|
||
All other loans
|
|
182
|
|
|
—
|
%
|
|
207
|
|
|
—
|
%
|
||
Gross loans
|
|
761,908
|
|
|
|
|
|
723,071
|
|
|
|
|
||
Deferred loan fees and costs, net
|
|
711
|
|
|
|
|
1,737
|
|
|
|
||||
Total loans
|
|
$
|
762,619
|
|
|
100
|
%
|
|
$
|
724,808
|
|
|
100
|
%
|
Non-Performing Assets and Loans
|
June 30,
|
|
December 31,
|
||||
(Dollars in thousands)
|
2017
|
|
2016
|
||||
Non-performing loans:
|
|
|
|
||||
Loans 90 days or more past due and still accruing
|
$
|
46
|
|
|
$
|
24
|
|
Non-accrual loans
|
6,024
|
|
|
5,174
|
|
||
Total non-performing loans
|
6,070
|
|
|
5,198
|
|
||
Other real estate owned
|
356
|
|
|
166
|
|
||
Total non-performing assets
|
6,426
|
|
|
5,364
|
|
||
Performing troubled debt restructurings
|
3,205
|
|
|
864
|
|
||
Performing troubled debt restructurings and total non-performing assets
|
$
|
9,631
|
|
|
$
|
6,228
|
|
|
|
|
|
||||
Non-performing loans to total loans
|
0.80
|
%
|
|
0.72
|
%
|
||
Non-performing loans to total loans excluding mortgage warehouse lines
|
1.08
|
%
|
|
1.02
|
%
|
||
Non-performing assets to total assets
|
0.60
|
%
|
|
0.52
|
%
|
||
Non-performing assets to total assets excluding mortgage warehouse lines
|
0.74
|
%
|
|
0.65
|
%
|
||
Total non-performing assets and performing troubled debt restructurings to total assets
|
0.90
|
%
|
|
0.60
|
%
|
•
|
Delinquencies and non-accruals
|
•
|
Portfolio quality
|
•
|
Concentration of credit
|
•
|
Trends in volume of loans
|
•
|
Quality of collateral
|
•
|
Policy and procedures
|
•
|
Experience, ability and depth of management
|
•
|
Economic trends – national and local
|
•
|
External factors – competition, legal and regulatory
|
•
|
Consumer credit scores
|
•
|
Internal credit risk grades
|
•
|
Loan-to-value ratios
|
•
|
Collateral
|
•
|
Collection experience
|
Allowance for Loan Losses (Dollars in thousands)
|
|
|
|
|
|
|
||||||
|
|
Six Months Ended June 30,
|
|
Year Ended
December 31,
|
|
Six Months Ended June 30,
|
||||||
|
|
2017
|
|
2016
|
|
2016
|
||||||
Balance, beginning of period
|
|
$
|
7,494
|
|
|
$
|
7,560
|
|
|
$
|
7,560
|
|
Provision (credit) charged to operating expenses
|
|
300
|
|
|
(300
|
)
|
|
(300
|
)
|
|||
Loans charged off :
|
|
|
|
|
|
|
||||||
Residential real estate loans
|
|
(101
|
)
|
|
—
|
|
|
—
|
|
|||
Commercial business and commercial real estate
|
|
—
|
|
|
(157
|
)
|
|
(161
|
)
|
|||
All other loans
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|||
|
|
(101
|
)
|
|
(158
|
)
|
|
(161
|
)
|
|||
Recoveries
|
|
|
|
|
|
|
||||||
Commercial business and commercial real estate
|
|
12
|
|
|
386
|
|
|
380
|
|
|||
Loans to individuals
|
|
2
|
|
|
6
|
|
|
3
|
|
|||
|
|
14
|
|
|
392
|
|
|
383
|
|
|||
Net (charge offs) recoveries
|
|
(87
|
)
|
|
234
|
|
|
222
|
|
|||
Balance, end of period
|
|
$
|
7,707
|
|
|
$
|
7,494
|
|
|
$
|
7,482
|
|
Loans :
|
|
|
|
|
|
|
||||||
At period end
|
|
$
|
762,619
|
|
|
$
|
724,808
|
|
|
$
|
761,572
|
|
Average during the period
|
|
672,431
|
|
|
691,180
|
|
|
651,160
|
|
|||
Net (charge offs) recoveries to average loans outstanding
|
|
(0.01
|
)%
|
|
0.03
|
%
|
|
0.03
|
%
|
|||
Net (charge offs) recoveries to average loans outstanding, excluding mortgage warehouse loans
|
|
(0.02
|
)%
|
|
0.05
|
%
|
|
0.04
|
%
|
|||
Allowance for loan losses to :
|
|
|
|
|
|
|
||||||
Total loans at period end
|
|
1.01
|
%
|
|
1.03
|
%
|
|
0.98
|
%
|
|||
Total loans at period end excluding mortgage warehouse
loans |
|
1.21
|
%
|
|
1.28
|
%
|
|
1.27
|
%
|
|||
Non-performing loans
|
|
126.98
|
%
|
|
144.18
|
%
|
|
145.03
|
%
|
|||
|
|
|
|
|
|
|
(Dollars in thousands)
|
|
Actual
|
|
For Capital
Adequacy Purposes
|
|
To Be Well Capitalized
Under Prompt
Corrective Action
Provision
|
||||||||||||
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
||||||
As of June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Company
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Common equity Tier 1 (CET1)
|
|
$
|
96,389
|
|
|
10.04%
|
|
$
|
43,197
|
|
|
>4.5%
|
|
N/A
|
|
N/A
|
||
Total Capital to Risk Weighted Assets
|
|
122,096
|
|
|
12.72%
|
|
76,795
|
|
|
>8%
|
|
N/A
|
|
N/A
|
||||
Tier 1 Capital to Risk Weighted Assets
|
|
114,389
|
|
|
11.92%
|
|
57,596
|
|
|
>6%
|
|
N/A
|
|
N/A
|
||||
Tier 1 Leverage Capital
|
|
114,389
|
|
|
11.39%
|
|
40,188
|
|
|
>4%
|
|
N/A
|
|
N/A
|
||||
Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Common equity Tier 1 (CET1)
|
|
$
|
111,802
|
|
|
11.65%
|
|
$
|
43,197
|
|
|
>4.5%
|
|
$
|
62,396
|
|
|
≥6.5%
|
Total Capital to Risk Weighted Assets
|
|
119,509
|
|
|
12.45%
|
|
76,795
|
|
|
>8%
|
|
95,994
|
|
|
≥10%
|
|||
Tier 1 Capital to Risk Weighted Assets
|
|
111,802
|
|
|
11.65%
|
|
57,596
|
|
|
>6%
|
|
76,795
|
|
|
≥8%
|
|||
Tier 1 Leverage Capital
|
|
111,802
|
|
|
11.13%
|
|
40,188
|
|
|
>4%
|
|
50,236
|
|
|
>5%
|
As of December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Company
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Common equity Tier 1 (CET1)
|
|
$
|
93,101
|
|
|
10.40%
|
|
$
|
40,302
|
|
|
>4.5%
|
|
N/A
|
|
N/A
|
||
Total Capital to Risk Weighted Assets
|
|
118,595
|
|
|
13.24%
|
|
71,648
|
|
|
>8%
|
|
N/A
|
|
N/A
|
||||
Tier 1 Capital to Risk Weighted Assets
|
|
111,101
|
|
|
12.41%
|
|
53,736
|
|
|
>6%
|
|
N/A
|
|
N/A
|
||||
Tier 1 Leverage Capital
|
|
111,101
|
|
|
10.93%
|
|
40,658
|
|
|
>4%
|
|
N/A
|
|
N/A
|
||||
Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Common equity Tier 1 (CET1)
|
|
$
|
108,606
|
|
|
12.13%
|
|
$
|
40,302
|
|
|
>4.5%
|
|
$
|
58,214
|
|
|
≥6.5%
|
Total Capital to Risk Weighted Assets
|
|
116,100
|
|
|
12.96%
|
|
71,648
|
|
|
>8%
|
|
89,560
|
|
|
>10%
|
|||
Tier 1 Capital to Risk Weighted Assets
|
|
108,606
|
|
|
12.13%
|
|
53,736
|
|
|
>6%
|
|
71,648
|
|
|
≥8%
|
|||
Tier 1 Leverage Capital
|
|
108,606
|
|
|
10.68%
|
|
40,658
|
|
|
>4%
|
|
50,823
|
|
|
>5%
|
(Dollars in thousands)
|
|
|
|
Next 12 Months
Net Interest Income |
|
|
|
Economic Value of Equity (2)
|
||||||||||||||
Interest Rate Change in Basis Points (1)
|
|
Dollar Amount
|
|
$ Change
|
|
% Change
|
|
Dollar Amount
|
|
$ Change
|
|
% Change
|
||||||||||
+300
|
|
$
|
43,281
|
|
|
$
|
2,747
|
|
|
6.78
|
%
|
|
$
|
143,200
|
|
|
$
|
(1,132
|
)
|
|
(0.78
|
)%
|
+200
|
|
42,351
|
|
|
1,817
|
|
|
4.48
|
%
|
|
144,007
|
|
|
(325
|
)
|
|
(0.23
|
)%
|
||||
—
|
|
40,534
|
|
|
—
|
|
—
|
%
|
|
144,332
|
|
|
—
|
|
—
|
%
|
(1)
|
Assumes an instantaneous and parallel shift in interest rates at all maturities.
|
(2)
|
Economic value of equity is the discounted present value of expected cash flows from assets, liabilities and off-balance sheet contracts.
|
Period
|
|
Total
Number of
Shares
Purchased
|
|
Average
Price Paid
Per Share
|
|
Total Number of
Shares
Purchased As
Part of Publicly
Announced Plan
or Program
|
|
Maximum Number
of Shares That May
Yet be Purchased
Under the Plan or
Program
|
||||||
Beginning
|
Ending
|
|
|
|
|
|
|
|
|
|||||
April 1, 2017
|
April 30, 2017
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
394,141
|
|
May 1, 2017
|
May 31, 2017
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
394,141
|
|
June 1, 2017
|
June 30, 2017
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
394,141
|
|
Total
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
394,141
|
|
(1)
|
The Company’s common stock repurchase program covers a maximum of 396,141 shares of common stock of the Company, representing 5% of the outstanding common stock of the Company on January 21, 2016, as adjusted for subsequent common stock dividends.`
|
3(i)(A)
|
|
Certificate of Incorporation of the Company (conformed copy) (incorporated by reference to Exhibit 3(i)(A) to the Company’s Form 10-K (SEC File No. 000-32891) filed with the SEC on March 27, 2009)
|
|
|
|
3(ii)(A)
|
|
By-laws of the Company, as amended (conformed copy) (incorporated by reference to Exhibit 3(ii)(A) to the Company’s Form 8-K filed with the SEC on March 23, 2016)
|
|
|
|
10.1
|
|
Third Amendment, effective as of April 7, 2017, to the Amended and Restated Employment Agreement, dated as of July 1, 2010, by and between the Company and Robert F. Mangano, as amended (incorporated by reference to Exhibit 10.1 to the Company's Form 8-K filed with the SEC on April 12, 2017)
|
|
|
|
10.2
|
*
|
Form of Restricted Stock Agreement for Non-Employee Directors under the 1st Constitution Bancorp 2015 Directors Stock Plan
|
|
|
|
31.1
|
*
|
Certification of Robert F. Mangano, principal executive officer of the Company, pursuant to Securities Exchange Act Rule 13a-14(a)
|
|
|
|
31.2
|
*
|
Certification of Stephen J. Gilhooly, principal financial officer of the Company, pursuant to Securities Exchange Act Rule 13a-14(a)
|
|
|
|
32
|
*
|
Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of The Sarbanes-Oxley Act of 2002, signed by Robert F. Mangano, principal executive officer of the Company, and Stephen J. Gilhooly, principal financial officer of the Company
|
|
|
|
101.INS
|
*
|
XBRL Instance Document
|
|
|
|
101.SCH
|
*
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
101.CAL
|
*
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
101.DEF
|
*
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
101.LAB
|
*
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
101.PRE
|
*
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
1ST CONSTITUTION BANCORP
|
|
|
|
|
|
|
|
|
|
|
Date: August 10, 2017
|
By:
|
/s/ ROBERT F. MANGANO
|
|
|
|
Robert F. Mangano
|
|
|
|
President and Chief Executive Officer
|
|
|
|
(Principal Executive Officer)
|
|
|
|
|
|
|
|
|
|
Date: August 10, 2017
|
By:
|
/s/ STEPHEN J. GILHOOLY
|
|
|
|
Stephen J. Gilhooly
|
|
|
|
Senior Vice President, Treasurer and Chief Financial Officer
|
|
|
|
(Principal Financial Officer)
|
|
3(i)(A)
|
|
Certificate of Incorporation of the Company (conformed copy) (incorporated by reference to Exhibit 3(i)(A) to the Company’s Form 10-K (SEC File No. 000-32891) filed with the SEC on March 27, 2009)
|
|
|
|
3(ii)(A)
|
|
By-laws of the Company, as amended (conformed copy) (incorporated by reference to Exhibit 3(ii)(A) to the Company’s Form 8-K filed with the SEC on March 23, 2016)
|
|
|
|
10.1
|
|
Third Amendment, effective as of April 7, 2017, to the Amended and Restated Employment Agreement, dated as of July 1, 2010, by and between the Company and Robert F. Mangano, as amended (incorporated by reference to Exhibit 10.1 to the Company's Form 8-K filed with the SEC on April 12, 2017)
|
|
|
|
10.2
|
*
|
Form of Restricted Stock Agreement for Non-Employee Directors under the 1st Constitution Bancorp 2015 Directors Stock Plan
|
|
|
|
31.1
|
*
|
Certification of Robert F. Mangano, principal executive officer of the Company, pursuant to Securities Exchange Act Rule 13a-14(a)
|
|
|
|
31.2
|
*
|
Certification of Stephen J. Gilhooly, principal financial officer of the Company, pursuant to Securities Exchange Act Rule 13a-14(a)
|
|
|
|
32
|
*
|
Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of The Sarbanes-Oxley Act of 2002, signed by Robert F. Mangano, principal executive officer of the Company, and Stephen J. Gilhooly, principal financial officer of the Company
|
|
|
|
101.INS
|
*
|
XBRL Instance Document
|
|
|
|
101.SCH
|
*
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
101.CAL
|
*
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
101.DEF
|
*
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
101.LAB
|
*
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
101.PRE
|
*
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
1.
|
I have reviewed this quarterly report on Form 10-Q of 1st Constitution Bancorp;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
1.
|
I have reviewed this quarterly report on Form 10-Q of 1st Constitution Bancorp;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|