New
Jersey
|
22-3665653
|
|
(State
or Other Jurisdiction of
Incorporation
or Organization)
|
IRS
Employer Identification Number)
|
2650
Route 130, P.O. Box 634, Cranbury, NJ 08512
|
||
(Address
of Principal Executive Offices, including Zip Code)
|
(609)
655-4500
|
||
(Registrant’s
telephone number, including area code)
|
Common
Stock, No Par Value
Stock
Purchase Rights Relating to Common Stock, No Par Value
|
None
|
||
(Title
of Class)
|
Large
accelerated filer
|
o |
Accelerated
filer
|
o | |||
Non-accelerated
filer
|
o |
Smaller
reporting company
|
x | |||
(Do
not check if a smaller reporting company)
|
FORM
10-K
|
|||
TABLE OF
CONTENTS
|
|||
PART
I
|
|||
Item
1.
|
Business
|
1
|
|
Item
1A.
|
Risk
Factors
|
11
|
|
Item
1B.
|
Unresolved
Staff Comments
|
17
|
|
Item
2.
|
Properties
|
17
|
|
Item
3.
|
Legal
Proceedings
|
18
|
|
Item
4.
|
Submission
of Matters to a Vote of Security Holders
|
18
|
|
PART
II
|
|||
Item
5.
|
Market
for Registrant’s Common Equity, Related Shareholder Matters
and Issuer
Purchases
of Equity Securities
|
18
|
|
Item
6.
|
Selected
Financial Data
|
19
|
|
Item
7.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operation
|
19
|
|
Item
7A.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
38
|
|
Item
8.
|
Financial
Statements and Supplementary Data
|
38
|
|
Item
9.
|
Changes
in and Disagreements With Accountants on Accounting and Financial
Disclosure
|
38
|
|
Item
9A.
|
Controls
and Procedures
|
38
|
|
Item
9B.
|
Other
Information
|
39
|
|
PART
III
|
|||
Item
10.
|
Directors,
Executive Officers and Corporate Governance
|
39
|
|
Item
11.
|
Executive
Compensation
|
39
|
|
Item
12.
|
Security
Ownership of Certain Beneficial Owners and Management and Related
Shareholder
Matters
|
40
|
|
Item
13.
|
Certain
Relationships and Related Transactions, and Director
Independence
|
41
|
|
Item
14.
|
Principal
Accounting Fees and Services
|
41
|
|
PART
IV
|
|||
Item
15.
|
Exhibits,
Financial Statement Schedules
|
41
|
|
SIGNATURES
|
45
|
|
·
|
personal
service;
|
|
·
|
expansion
of its branch network;
|
|
·
|
innovative
product offerings; and
|
|
·
|
technological
advances and e-commerce.
|
|
·
|
allows
bank holding companies meeting management, capital and Community
Reinvestment Act standards to engage in a substantially broader range of
non-banking activities than is permissible for a bank holding company,
including insurance underwriting and making merchant banking investments
in commercial and financial companies; if a bank holding company elects to
become a financial holding company, it files a certification, effective in
30 days, and thereafter may engage in certain financial activities without
further approvals;
|
|
·
|
allows
banks to establish subsidiaries to engage in certain activities which a
financial holding company could engage in, if the bank meets certain
management, capital and Community Reinvestment Act
standards;
|
|
·
|
allows
insurers and other financial services companies to acquire banks and
removes various restrictions that currently apply to bank holding company
ownership of securities firms and mutual fund advisory companies; and
establishes the overall regulatory structure applicable to financial
holding companies that also engage in insurance and securities
operations.
|
|
·
|
a
prohibition on personal loans made or arranged by the issuer to its
directors and executive officers (except for loans made by a bank subject
to Regulation O);
|
|
·
|
independence
requirements for audit committee
members;
|
|
·
|
disclosure
of whether at least one member of the audit committee is a “financial
expert” (as such term is defined by the SEC) and if not, why
not;
|
|
·
|
independence
requirements for outside auditors;
|
|
·
|
a
prohibition by a company’s registered public accounting firm from
performing statutorily mandated audit services for the company if the
company’s chief executive officer, chief financial officer, comptroller,
chief accounting officer or any person serving in equivalent positions had
been employed by such firm and participated in the audit of such company
during the one-year period preceding the audit initiation
date;
|
|
·
|
certification
of financial statements and annual and quarterly reports by the principal
executive officer and the principal financial
officer;
|
|
·
|
the
forfeiture of bonuses or other incentive-based compensation and profits
from the sale of an issuer’s securities by directors and senior officers
in the twelve month period following initial publication of any financial
statements that later require restatement due to corporate
misconduct;
|
|
·
|
disclosure
of off-balance sheet transactions;
|
|
·
|
two-business
day filing requirements for insiders filing Forms
4;
|
|
·
|
disclosure
of a code of ethics for financial officers and filing a Form 8-K for a
change or waiver of such code;
|
|
·
|
“real
time” filing of periodic reports;
|
|
·
|
posting
of certain SEC filings and other information on the company
website;
|
|
·
|
the
reporting of securities violations “up the ladder” by both in-house and
outside attorneys;
|
|
·
|
restrictions
on the use of non-GAAP financial
measures;
|
|
·
|
the
formation of a public accounting oversight board;
and
|
|
·
|
various
increased criminal penalties for violations of securities
laws.
|
|
·
|
quarterly
fluctuations in our operating and financial
results;
|
|
·
|
operating
results that vary from the expectations of management, securities analysts
and investors;
|
|
·
|
changes
in expectations as to our future financial performance, including
financial estimates by securities analysts and
investors;
|
|
·
|
events
negatively impacting the financial services industry which result in a
general decline in the market valuation of our common
stock;
|
|
·
|
announcements
of material developments affecting our operations or our dividend
policy;
|
|
·
|
future
sales of our equity securities;
|
|
·
|
new
laws or regulations or new interpretations of existing laws or regulations
applicable to our business;
|
|
·
|
changes
in accounting standards, policies, guidance, interpretations or
principles; and
|
|
·
|
general
domestic economic and market
conditions.
|
Location
|
Leased
or
Owned
|
Original
Year Leased
or
Acquired
|
Year
of Lease
Expiration
|
|
Main
Office
|
||||
2650
Route 130
|
Leased
|
1989
|
2010
|
|
Cranbury,
New Jersey
|
||||
Village
Office
|
||||
74
North Main Street
|
Owned
|
2005
|
||
Cranbury,
New Jersey
|
||||
Montgomery
Office
|
||||
947
State Road
|
Leased
|
1995
|
2013
|
|
Princeton,
New Jersey
|
||||
Plainsboro
Office
|
||||
Plainsboro Village Center
|
Leased
|
1998
|
2021
|
|
11
Shalks Crossing Road
|
||||
Plainsboro,
New Jersey
|
||||
Hamilton
Office
|
||||
3659
Nottingham Way
|
Leased
|
1999
|
2014
|
|
Hamilton,
New Jersey
|
||||
Princeton
Office
|
||||
The
Windrows at Princeton Forrestal
|
Leased
|
2001
|
2011
|
|
200
Windrow Drive
|
||||
Princeton,
New Jersey
|
||||
Perth
Amboy Office
|
||||
145
Fayette Street
|
Leased
|
2003
|
2018
|
|
Perth
Amboy, New Jersey
|
||||
Jamesburg
Office
|
||||
1
Harrison Street
|
Owned
|
2002
|
||
Jamesburg,
New Jersey
|
||||
West
Windsor Office
|
||||
44
Washington Road
|
Leased
|
2004
|
2019
|
|
Princeton Jct,
New Jersey
|
Fort
Lee Office
|
||||
180
Main Street
|
Leased
|
2006
|
2014
|
|
Fort
Lee, New Jersey
|
||||
Hightstown
Office
|
||||
140
Mercer Street
|
Leased
|
2007
|
2014
|
|
Hightstown,
New Jersey
|
||||
Mortgage
Warehouse Funding Office
|
Leased
|
2008
|
2009
|
|
580
Howard Avenue
|
||||
Franklin Township,
New Jersey
|
2008
|
2007
|
||||||||||||||||
High
|
Low
|
High
|
Low
|
||||||||||||||
First
Quarter
|
$ | 14.10 | $ | 10.47 | (1) | $ | 17.38 | $ | 15.30 | (1) | |||||||
Second
Quarter
|
12.68 | 10.20 |
(1)
|
|
16.75 | 15.16 |
(1)
|
||||||||||
Third
Quarter
|
11.33 | 7.75 |
(1)
|
15.96 | 13.08 |
(1)
|
|||||||||||
Fourth
Quarter
|
12.15 | 6.44 |
(1)
|
14.90 | 12.62 |
(1)
|
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
|
||||||||||||||||
October
1, 2008
|
October
31, 2008
|
-
|
$
|
-
|
-
|
165,761
|
|||||||||||
November
1, 2008
|
November
30, 2008
|
1,786
|
8.48
|
1,786
|
163,975
|
||||||||||||
December
1, 2008
|
December
31, 2008
|
1,114
|
8.05
|
1,114
|
162,861
|
||||||||||||
Total
|
2,900
|
$
|
8.31
|
2,900
|
162,861
|
(1)
|
The
Company’s common stock repurchase program covers a maximum of 195,076
shares of common stock of the Company, representing 5% of the outstanding
common stock of the Company on July 21, 2005, as adjusted for subsequent
stock dividends.
|
(yields
on a tax-equivalent basis)
|
2008
|
2007
|
2006
|
|||||||||||||||||||||||||||||||||
Average
|
Average
|
Average
|
Average
|
Average
|
Average
|
|||||||||||||||||||||||||||||||
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
||||||||||||||||||||||||||||
Assets:
|
||||||||||||||||||||||||||||||||||||
Federal
Funds Sold/Short-Term
Investments
|
$
|
4,667,073
|
$
|
112,427
|
2.41
|
%
|
$
|
1,653,896
|
$
|
101,171
|
6.12
|
%
|
$
|
1,457,568
|
$
|
85,012
|
5.14
|
%
|
||||||||||||||||||
Investment
Securities:
|
||||||||||||||||||||||||||||||||||||
Taxable
|
84,611,384
|
4,158,923
|
4.92
|
%
|
80,876,181
|
4,278,288
|
5.29
|
%
|
70,048,748
|
3,448,780
|
4.92
|
%
|
||||||||||||||||||||||||
Tax-exempt
(4)
|
14,471,144
|
829,249
|
5.73
|
%
|
22,968,401
|
1,296,032
|
5.64
|
%
|
16,198,497
|
895,172
|
5.53
|
%
|
||||||||||||||||||||||||
Total
|
99,082,528
|
4,988,172
|
5.03
|
%
|
103,844,582
|
5,574,320
|
5.37
|
%
|
86,247,245
|
4,343,952
|
5.04
|
%
|
||||||||||||||||||||||||
Loan
Portfolio:
|
||||||||||||||||||||||||||||||||||||
Construction
|
115,517,676
|
8,090,444
|
7.00
|
%
|
129,285,776
|
11,486,481
|
8.88
|
%
|
125,022,769
|
11,129,600
|
8.90
|
%
|
||||||||||||||||||||||||
Residential
Real Estate
|
10,376,822
|
652,728
|
6.29
|
%
|
8,878,427
|
657,928
|
7.41
|
%
|
8,072,109
|
517,146
|
6.41
|
%
|
||||||||||||||||||||||||
Home
Equity
|
15,490,320
|
986,117
|
6.37
|
%
|
14,118,025
|
1,063,025
|
7.53
|
%
|
14,604,243
|
1,109,996
|
7.60
|
%
|
||||||||||||||||||||||||
Commercial
and Commercial
Real
Estate
|
127,377,980
|
9,302,815
|
7.30
|
%
|
117,463,693
|
9,140,693
|
7.78
|
%
|
99,521,245
|
7,706,864
|
7.74
|
%
|
||||||||||||||||||||||||
Mortgage
warehouse lines
|
57,477,364
|
2,755,003
|
4.79
|
%
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||
Installment
|
1,204,297
|
96,375
|
8.00
|
%
|
1,542,082
|
129,483
|
8.40
|
%
|
2,013,438
|
167,126
|
8.30
|
%
|
||||||||||||||||||||||||
All
Other Loans
|
26,660,793
|
2,405,176
|
9.02
|
%
|
21,083,348
|
2,635,877
|
12.50
|
%
|
22,506,843
|
2,535,812
|
11.27
|
%
|
||||||||||||||||||||||||
Total
(1)
|
354,105,252
|
24,288,658
|
6.86
|
%
|
292,371,351
|
25,113,487
|
8.59
|
%
|
271,740,647
|
23,166,544
|
8.53
|
%
|
||||||||||||||||||||||||
Total
Interest-Earning Assets
|
457,854,853
|
29,389,257
|
6.42
|
%
|
397,869,829
|
30,788,978
|
7.74
|
%
|
359,445,460
|
27,595,508
|
7.68
|
%
|
||||||||||||||||||||||||
Allowance
for Loan Losses
|
(3,612,156
|
)
|
(3,270,810
|
)
|
(2,662,370
|
)
|
||||||||||||||||||||||||||||||
Cash
and Due From Banks
|
12,446,849
|
10,254,911
|
9,391,415
|
|||||||||||||||||||||||||||||||||
Other
Assets
|
22,180,579
|
17,648,099
|
15,422,593
|
|||||||||||||||||||||||||||||||||
Total
Assets
|
$
|
488,870,125
|
$
|
425,502,029
|
$
|
381,597,098
|
||||||||||||||||||||||||||||||
Liabilities
and Shareholders' Equity:
|
||||||||||||||||||||||||||||||||||||
Interest-Bearing
Liabilities:
|
||||||||||||||||||||||||||||||||||||
Money
Market and NOW Accounts
|
$
|
89,274,785
|
$
|
2,164,369
|
2.42
|
%
|
$
|
83,597,940
|
$
|
1,737,487
|
2.08
|
%
|
$
|
87,135,125
|
$
|
1,455,755
|
1.67
|
%
|
||||||||||||||||||
Savings
Accounts
|
79,864,816
|
1,990,479
|
2.49
|
%
|
64,408,442
|
2,017,580
|
3.13
|
%
|
44,867,384
|
939,324
|
2.09
|
%
|
||||||||||||||||||||||||
Certificates
of Deposit under $100,000
|
76,921,495
|
3,096,986
|
4.03
|
%
|
67,236,813
|
3,170,322
|
4.72
|
%
|
58,183,657
|
2,907,883
|
5.00
|
%
|
||||||||||||||||||||||||
Certificates
of Deposit of
$100,000
and Over
|
70,297,311
|
2,855,024
|
4.06
|
%
|
54,252,087
|
2,711,467
|
5.00
|
%
|
43,870,647
|
1,385,119
|
3.16
|
%
|
||||||||||||||||||||||||
Other
Borrowed Funds
|
37,111,612
|
1,556,238
|
4.19
|
%
|
29,580,685
|
1,514,907
|
5.12
|
%
|
32,539,699
|
1,687,749
|
5.19
|
%
|
||||||||||||||||||||||||
Trust
Preferred Securities
|
18,000,000
|
1,069,351
|
5.94
|
%
|
19,534,247
|
1,438,876
|
7.37
|
%
|
14,863,014
|
1,141,667
|
7.68
|
%
|
||||||||||||||||||||||||
Total
Interest-Bearing Liabilities
|
371,470,019
|
12,732,447
|
3.43
|
%
|
318,610,214
|
12,590,639
|
3.95
|
%
|
281,459,526
|
9,517,497
|
3.38
|
%
|
||||||||||||||||||||||||
Net
Interest Spread (2)
|
2.99
|
%
|
3.79
|
%
|
3.80
|
%
|
||||||||||||||||||||||||||||||
Non-interest
Bearing
Demand
Deposits
|
69,907,048
|
60,892,433
|
63,040,519
|
|||||||||||||||||||||||||||||||||
Other
Liabilities
|
5,165,108
|
4,989,809
|
5,013,813
|
|||||||||||||||||||||||||||||||||
Total
Liabilities
|
446,542,175
|
384,492,456
|
349,513,858
|
|||||||||||||||||||||||||||||||||
Shareholders'
Equity
|
42,327,950
|
38,009,573
|
32,083,240
|
|||||||||||||||||||||||||||||||||
Total
Liabilities and Shareholders' Equity
|
$
|
488,870,125
|
$
|
422,502,029
|
$
|
381,597,098
|
||||||||||||||||||||||||||||||
Net
Interest Margin (3)
|
$
|
16,656,810
|
3.64
|
%
|
$
|
18,198,339
|
4.57
|
%
|
$
|
18,078,001
|
5.03
|
%
|
(1)
|
Loan
origination fees are considered an adjustment to interest
income. For the purpose of calculating loan yields, average
loan balances include nonaccrual loans with no related interest
income.
|
(2)
|
The
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.
|
Rate/Volume
Table
|
Amount
of Increase (Decrease)
|
|||||||||||||||||||||||
Year
Ended December 31,
2008
versus 2007
|
Year
Ended December 31,
2007
versus 2006
|
|||||||||||||||||||||||
Due
to Change in:
|
Due
to Change in:
|
|||||||||||||||||||||||
(Tax-equivalent
basis)
|
Volume
|
Rate
|
Total
|
Volume
|
Rate
|
Total
|
||||||||||||||||||
Interest
Income:
|
||||||||||||||||||||||||
Loans:
|
||||||||||||||||||||||||
Construction
|
$
|
(1,094,267
|
)
|
$
|
(2,302,233
|
)
|
$
|
(3,396,500
|
)
|
$
|
382,349
|
$
|
(25,005
|
)
|
$
|
357,344
|
||||||||
Residential
Real Estate
|
94,238
|
(99,438
|
)
|
(5,200
|
)
|
55,873
|
84,909
|
140,782
|
||||||||||||||||
Home
Equity
|
95,054
|
(172,050
|
)
|
(76,996
|
)
|
(36,807
|
)
|
(10,076
|
)
|
(46,883
|
)
|
|||||||||||||
Commercial
and Commercial Real Estate
|
748,916
|
(586,243
|
)
|
162,673
|
1,393,469
|
39,808
|
1,433,278
|
|||||||||||||||||
Mortgage
Warehouse Lines
|
2,755,003
|
0
|
2,755,003
|
-
|
-
|
-
|
||||||||||||||||||
Installment
|
(26,940
|
)
|
(6,168
|
)
|
(33,108
|
)
|
(39,657
|
)
|
2,013
|
(37,643
|
)
|
|||||||||||||
All
Other Loans
|
600,091
|
(830,792
|
)
|
(230,791
|
)
|
(158,402
|
)
|
258,466
|
100,064
|
|||||||||||||||
Total
Loans
|
3,172,095
|
(3,996,924
|
)
|
(824,829
|
)
|
1,596,826
|
350,117
|
1,946,942
|
||||||||||||||||
Investment
Securities :
|
||||||||||||||||||||||||
Taxable
|
188,735
|
(308,100
|
)
|
(119,365
|
)
|
551,519
|
277,989
|
829,508
|
||||||||||||||||
Tax-exempt
|
(483,349
|
)
|
16,566
|
(466,783
|
)
|
378,709
|
22,151
|
400,860
|
||||||||||||||||
Total
Investment Securities
|
(294,614
|
)
|
(291,534
|
)
|
(586,148
|
)
|
930,227
|
300,141
|
1,230,368
|
|||||||||||||||
Federal
Funds Sold / Short-Term Investments
|
128,512
|
(117,256
|
)
|
11,256
|
15,721
|
438
|
16,159
|
|||||||||||||||||
Total
Interest Income
|
3,005,993
|
(4,405,714
|
)
|
(1,399,721
|
)
|
2,542,775
|
650,695
|
3,193,470
|
||||||||||||||||
Interest
Expense :
|
||||||||||||||||||||||||
Money
Market and NOW Accounts
|
130,364
|
296,518
|
$
|
426,882
|
(67,296
|
)
|
349,028
|
281,732
|
||||||||||||||||
Savings
Accounts
|
434,450
|
(461,551
|
)
|
(27,101
|
)
|
510,021
|
568,235
|
1,078,256
|
||||||||||||||||
Certificates
of Deposit under $100,000
|
423,858
|
(497,194
|
)
|
(73,336
|
)
|
439,006
|
(176,567
|
)
|
262,439
|
|||||||||||||||
Certificates
of Deposit of $100,000 and Over
|
727,894
|
(584,337
|
)
|
143,557
|
423,591
|
902,757
|
1,326,347
|
|||||||||||||||||
Other
Borrowed Funds
|
351,007
|
(309,676
|
)
|
41,331
|
(151,819
|
)
|
(21,023
|
)
|
(172,842
|
)
|
||||||||||||||
Trust
Preferred Securities
|
(84,797
|
)
|
(284,728
|
)
|
(369,525
|
)
|
364,138
|
(66,929
|
)
|
297,209
|
||||||||||||||
Total
Interest Expense
|
1,982,776
|
(1,840,968
|
)
|
141,808
|
1,517,640
|
1,555,501
|
3,073,142
|
|||||||||||||||||
Net
Interest Income
|
$
|
1,023,217
|
$
|
(2,564,746
|
)
|
$
|
(1,541,529
|
)
|
$
|
1,025,134
|
$
|
(904,806
|
)
|
$
|
120,328
|
|||||||||
Non-interest
Expenses
|
||||||||
2008
|
2007
|
|||||||
Salaries
and employee benefits
|
$
|
8,426,729
|
$
|
7,196,552
|
||||
Occupancy
expense
|
1,802,723
|
1,658,820
|
||||||
Data
processing services
|
896,724
|
829,037
|
||||||
Equipment
expense
|
626,467
|
485,792
|
||||||
Marketing
|
246,879
|
106,862
|
||||||
Regulatory,
professional and consulting fees
|
861,006
|
296,667
|
||||||
Office
expense
|
649,461
|
572,293
|
||||||
FDIC
deposit insurance
|
196,072
|
38,422
|
||||||
Directors’
fees
|
108,000
|
100,375
|
||||||
Other
real estate owned expenses
|
136,648
|
11,871
|
||||||
All
other expenses
|
1,100,315
|
804,577
|
||||||
Total
|
$
|
15,051,024
|
$
|
12,101,268
|
||||
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
200
8
|
Cost
|
Gains
|
Losses
|
Value
|
||||||||||||
Available
for sale-
|
||||||||||||||||
U.
S. Treasury securities and
|
||||||||||||||||
obligations
of U.S. Government
|
||||||||||||||||
sponsored
corporations and agencies
|
$
|
22,802,334
|
$
|
415,626
|
$
|
0
|
$
|
23,217,960
|
||||||||
Collateralized
mortgage obligations
|
7,014,272
|
16,792
|
(253,432
|
)
|
6,777,632
|
|||||||||||
Mortgage
backed securities
|
54,727,033
|
1,930,299
|
(594
|
)
|
56,656,738
|
|||||||||||
Obligations
of State and
|
||||||||||||||||
Political
subdivisions
|
2,868,049
|
6,872
|
(16,234
|
)
|
2,858,687
|
|||||||||||
Corporate
debt securities
|
2,454,969
|
0
|
(1,173,163
|
)
|
1,281,806
|
|||||||||||
Restricted
Stock
|
2,659,200
|
0
|
0
|
2,659,200
|
||||||||||||
Mutual
Fund
|
25,000
|
0
|
0
|
25,000
|
||||||||||||
$
|
92,550,857
|
$
|
2,369,589
|
$
|
(1,443,423)
|
$
|
93,477,023
|
|||||||||
Held
to maturity-
|
||||||||||||||||
U.
S. Treasury securities and
|
||||||||||||||||
obligations
of U.S. Government
|
||||||||||||||||
sponsored
corporations and agencies
|
$
|
10,000,000
|
$
|
193,800
|
$
|
0
|
$
|
10,193,800
|
||||||||
Collateralized
mortgage obligations
|
8,727,315
|
49,897
|
(9,675
|
)
|
8,767,537
|
|||||||||||
Mortgage
backed securities
|
3,794,931
|
33,007
|
(212
|
)
|
3,827,726
|
|||||||||||
Obligations
of State and
|
||||||||||||||||
Political
subdivisions
|
10,516,726
|
75,515
|
(93,502
|
)
|
10,498,739
|
|||||||||||
Corporate
debt securities
|
3,511,605
|
0
|
(659,028
|
)
|
2,852,577
|
|||||||||||
$
|
36,550,577
|
$
|
352,219
|
$
|
(762,417
|
)
|
$
|
36,140,379
|
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
2007
|
Cost
|
Gains
|
Losses
|
Value
|
||||||||||||
Available
for sale-
|
||||||||||||||||
U.
S. Treasury securities and
|
||||||||||||||||
obligations
of U.S. Government
|
||||||||||||||||
sponsored
corporations and agencies
|
$
|
21,455,563
|
$
|
315,075
|
$
|
(14,043
|
)
|
$
|
21,756,595
|
|||||||
Collateralized
mortgage obligations
|
8,106,154
|
2,170
|
(407,560
|
)
|
7,700,764
|
|||||||||||
Mortgage
backed securities
|
37,769,517
|
457,725
|
(57,365
|
)
|
38,169,877
|
|||||||||||
Obligations
of State and
|
||||||||||||||||
Political
subdivisions
|
3,446,517
|
14,778
|
(7,713
|
)
|
3,453,582
|
|||||||||||
Corporate
debt securities
|
2,451,122
|
0
|
(272,504
|
)
|
2,178,618
|
|||||||||||
Restricted
stock
|
1,907,701
|
0
|
0
|
1,907,701
|
||||||||||||
Mutual
fund
|
25,000
|
0
|
0
|
25,000
|
||||||||||||
$
|
75,161,574
|
$
|
789,748
|
$
|
(759,185
|
)
|
$
|
75,192,137
|
||||||||
Held
to maturity-
|
||||||||||||||||
Mortgage
backed securities
|
$
|
4,502,574
|
$
|
2,132
|
$
|
121,197
|
$
|
4,383,509
|
||||||||
Obligations
of State and
|
||||||||||||||||
Political
subdivisions
|
18,013,721
|
142,232
|
4,718
|
18,151,235
|
||||||||||||
Corporate
debt securities
|
996,051
|
0
|
119,526
|
876,525
|
||||||||||||
$
|
23,512,346
|
$
|
144,364
|
$
|
245,441
|
$
|
23,411,269
|
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
2006
|
Cost
|
Gains
|
Losses
|
Value
|
||||||||||||
Available
for sale-
|
||||||||||||||||
U.
S. Treasury securities and
|
||||||||||||||||
obligations
of U.S. Government
|
||||||||||||||||
sponsored
corporations and agencies
|
$
|
26,192,204
|
$
|
122,343
|
$
|
(227,579
|
)
|
$
|
26,086,968
|
|||||||
Collateralized
mortgage obligations
|
9,432,978
|
1,801
|
(466,682
|
)
|
8,968,097
|
|||||||||||
Mortgage
backed securities
|
28,305,557
|
113,353
|
(216,111
|
)
|
28,202,799
|
|||||||||||
Obligations
of State and
|
||||||||||||||||
Political
subdivisions
|
3,655,197
|
15,902
|
(31,749
|
)
|
3,639,350
|
|||||||||||
Corporate
debt securities
|
2,449,302
|
304
|
(30,949
|
)
|
2,418,658
|
|||||||||||
Restricted
stock
|
1,080,457
|
0
|
0
|
1,080,457
|
||||||||||||
Mutual
fund
|
25,000
|
0
|
0
|
25,000
|
||||||||||||
$
|
71,140,695
|
$
|
253,703
|
$
|
(973,069
|
)
|
$
|
70,421,328
|
||||||||
Held
to maturity-
|
||||||||||||||||
Mortgage
backed securities
|
$
|
5,189,016
|
$
|
2,015
|
$
|
(175,827
|
)
|
$
|
5,366,859
|
|||||||
Obligations
of State and
|
||||||||||||||||
Political
subdivisions
|
13,617,923
|
131,955
|
(47,941
|
)
|
13,797,820
|
|||||||||||
$
|
19,254,476
|
$
|
133,970
|
$
|
(223,768
|
)
|
$
|
19,164,679
|
||||||||
Amortized
Cost
|
Fair
Value
|
Weighted
Average
Yield*
|
||||||||||
Available
for sale-
|
||||||||||||
Due
in one year or less
|
$
|
6,094,198
|
$
|
6,144,721
|
3.83
|
%
|
||||||
Due
after one year through five years
|
17,656,903
|
17,974,754
|
4.21
|
%
|
||||||||
Due
after five years through ten years
|
13,032,530
|
13,242,004
|
4.96
|
%
|
||||||||
Due
after ten years
|
55,767,226
|
56,115,544
|
5.38
|
%
|
||||||||
Total
|
$
|
92,550,857
|
$
|
93,477,023
|
5.00
|
%
|
||||||
Held
to maturity-
|
||||||||||||
Due
in one year or less
|
$
|
10,955,710
|
$
|
11,155,504
|
3.45
|
%
|
||||||
Due
after one year through five years
|
4,535,579
|
4,521,258
|
4.72
|
%
|
||||||||
Due
after five years through ten years
|
5,817,643
|
5,804,321
|
5.66
|
%
|
||||||||
Due
after ten years
|
15,241,645
|
14,659,296
|
4.03
|
%
|
||||||||
Total
|
$
|
36,550,577
|
$
|
36,140,379
|
4.20
|
%
|
December
31,
|
||||||||||||||||||||||||||||||||||||||||
2008
|
2007
|
2006
|
2005
|
2004
|
||||||||||||||||||||||||||||||||||||
Amount
|
%
|
Amount
|
%
|
Amount
|
%
|
Amount
|
%
|
Amount
|
%
|
|||||||||||||||||||||||||||||||
Construction
loans
|
$
|
94,163,997
|
25
|
%
|
$
|
132,735,920
|
45
|
%
|
$
|
125,268,871
|
47
|
%
|
$
|
109,862,614
|
46
|
%
|
$
|
88,027,024
|
42
|
%
|
||||||||||||||||||||
Residential
real estate
loans
|
11,078,402
|
3
|
%
|
10,088,515
|
3
|
%
|
7,670,370
|
3
|
%
|
8,602,975
|
4
|
%
|
9,815,366
|
5
|
%
|
|||||||||||||||||||||||||
Commercial
business
|
57,528,879
|
15
|
%
|
57,232,295
|
19
|
%
|
48,112,857
|
18
|
%
|
47,869,396
|
19
|
%
|
41,198,502
|
20
|
%
|
|||||||||||||||||||||||||
Commercial
real estate
|
90,904,418
|
24
|
%
|
77,896,347
|
27
|
%
|
66,784,183
|
26
|
%
|
56,578,800
|
24
|
%
|
54,822,575
|
26
|
%
|
|||||||||||||||||||||||||
Mortgage
warehouse
lines
|
106,000,231
|
28
|
%
|
-
|
0
|
%
|
-
|
0
|
%
|
-
|
0
|
%
|
-
|
0
|
%
|
|||||||||||||||||||||||||
Loans
to individuals
|
16,797,194
|
5
|
%
|
16,324,817
|
6
|
%
|
16,728,025
|
6
|
%
|
16,441,994
|
7
|
%
|
16,002,619
|
7
|
%
|
|||||||||||||||||||||||||
Lease
financing
|
0
|
0
|
%
|
0
|
0
|
%
|
0
|
0
|
%
|
21,073
|
0
|
%
|
74,543
|
0
|
%
|
|||||||||||||||||||||||||
Deferred
loan fees
|
647,673
|
0
|
%
|
302,818
|
0
|
%
|
404,074
|
0
|
%
|
466,678
|
0
|
%
|
512,416
|
0
|
%
|
|||||||||||||||||||||||||
All
other loans
|
227,622
|
0
|
%
|
180,006
|
0
|
%
|
173,933
|
0
|
%
|
170,819
|
0
|
%
|
200,118
|
0
|
%
|
|||||||||||||||||||||||||
Total
|
$
|
377,348,416
|
100
|
%
|
$
|
294,760,718
|
100
|
%
|
$
|
265,142,313
|
100
|
%
|
$
|
240,014,349
|
100
|
%
|
$
|
210,653,163
|
100
|
%
|
||||||||||||||||||||
Maturity Range
|
||||||||||||||||
Type
|
Within
One
Year
|
After
One But
Within
Five
Years
|
After
Five
Years
|
Total
|
||||||||||||
Commercial
& commercial real estate
|
$
|
24,384,967
|
$
|
39,177,582
|
$
|
84,870,748
|
$
|
148,433,297
|
||||||||
Construction
|
86,550,387
|
6,664,862
|
948,748
|
94,163,997
|
||||||||||||
Total
|
$
|
110,935,354
|
$
|
45,842,445
|
$
|
85,819,495
|
$
|
242,597,294
|
||||||||
Fixed
rate loans
|
$
|
4,414,527
|
$
|
20,917,181
|
$
|
11,655,612
|
$
|
36,987,320
|
||||||||
Floating
rate loans
|
106,520,827
|
24,925,264
|
74,163,883
|
205,609,974
|
||||||||||||
Total
|
$
|
110,935,354
|
$
|
45,842,445
|
$
|
85,819,495
|
$
|
242,597,294
|
Non-Performing
Assets and Loans
|
||||||||||||||||||||
2008
|
2007
|
2006
|
2005
|
2004
|
||||||||||||||||
Non-Performing
loans:
|
||||||||||||||||||||
Loans
90 days or more past due and still accruing
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
209
|
$
|
63,130
|
||||||||||
Non-accrual
loans
|
3,351,777
|
2,036,858
|
4,193,209
|
833,150
|
1,049,411
|
|||||||||||||||
Total
non-performing loans
|
3,351,777
|
2,036,858
|
4,193,209
|
833,359
|
1,112,541
|
|||||||||||||||
Other
real estate owned
|
4,296,536
|
2,960,727
|
0
|
0
|
0
|
|||||||||||||||
Total
non-performing assets
|
$
|
7,648,313
|
$
|
4,997,585
|
$
|
4,193,209
|
$
|
833,359
|
$
|
1,112,541
|
||||||||||
Non-performing
loans to total loans
|
0.89
|
%
|
0.67
|
%
|
1.50
|
%
|
0.32
|
%
|
0.50
|
%
|
||||||||||
Non-performing
assets to total assets
|
1.40
|
%
|
1.16
|
%
|
1.07
|
%
|
0.22
|
%
|
0.33
|
%
|
||||||||||
|
·
|
General
economic conditions.
|
|
·
|
Trends
in charge-offs.
|
|
·
|
Trends
and levels of delinquent loans.
|
|
·
|
Trends
and levels of non-performing loans, including loans over 90 days
delinquent.
|
|
·
|
Trends
in volume and terms of loans.
|
|
·
|
Levels
of allowance for specific classified
loans.
|
|
·
|
Credit
concentrations.
|
Allowance
for Loan Losses
|
||||||||||||||||||||
2008
|
2007
|
2006
|
2005
|
2004
|
||||||||||||||||
Balance,
beginning of year
|
$
|
3,348,080
|
$
|
3,228,360
|
$
|
2,361,375
|
$
|
2,005,169
|
$
|
1,786,632
|
||||||||||
Provision
charged to operating expenses
|
640,000
|
130,000
|
893,500
|
405,000
|
240,000
|
|||||||||||||||
Loans
charged off:
|
||||||||||||||||||||
Construction
loans
|
(53,946
|
)
|
- |
-
|
-
|
-
|
||||||||||||||
Residential
real estate loans
|
(31,865
|
)
|
- |
-
|
-
|
-
|
||||||||||||||
Commercial
and commercial real
estate
loans
|
(220,565
|
)
|
(88,891
|
)
|
(11,154
|
)
|
(39,150
|
)
|
(17,070
|
)
|
||||||||||
Loans
to individuals
|
-
|
(1,614
|
)
|
(18,314
|
)
|
(13,653
|
)
|
(5,203
|
)
|
|||||||||||
Lease
financing
|
-
|
(478
|
)
|
-
|
-
|
-
|
||||||||||||||
All
other loans
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
(306,376
|
)
|
(90,983
|
)
|
(29,468
|
)
|
(52,803
|
)
|
(22,273
|
)
|
|||||||||||
Recoveries:
|
||||||||||||||||||||
Construction
loans
|
-
|
75,000
|
-
|
-
|
-
|
|||||||||||||||
Residential
real estate loans
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Commercial
and commercial real
estate
loans
|
3,060
|
0
|
153
|
1,498
|
750
|
|||||||||||||||
Loans
to individuals
|
-
|
5,703
|
2,800
|
2,511
|
60
|
|||||||||||||||
Lease
financing
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
All
other loans
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
3,060
|
80,703
|
2,953
|
4,009
|
810
|
||||||||||||||||
Net
(charge offs) / recoveries
|
(303,316
|
)
|
(10,280
|
)
|
(26,515
|
)
|
(48,794
|
)
|
(21,463
|
)
|
||||||||||
Balance,
end of year
|
$
|
3,684,764
|
$
|
3,348,080
|
$
|
3,228,360
|
$
|
2,361,375
|
$
|
2,005,169
|
||||||||||
Loans:
|
||||||||||||||||||||
At
year end
|
$
|
377,348,416
|
$
|
294,760,718
|
$
|
265,142,313
|
$
|
240,014,349
|
$
|
210,653,051
|
||||||||||
Average
during the year
|
340,666,744
|
281,176,955
|
259,397,578
|
220,475,472
|
186,557,414
|
|||||||||||||||
Net
(charge offs) recoveries to average
loans
outstanding
|
(0.09
|
%)
|
0.00
|
%
|
(0.01
|
%)
|
(0.02
|
%)
|
(0.01
|
%)
|
||||||||||
Allowance
for loan losses to:
|
||||||||||||||||||||
Total
loans at year end
|
0.98
|
%
|
1.14
|
%
|
1.22
|
%
|
0.98
|
%
|
0.95
|
%
|
||||||||||
Non-performing
loans
|
109.93
|
%
|
164.37
|
%
|
76.99
|
%
|
283.36
|
%
|
180.23
|
%
|
Average
Deposit Balances
|
||||||||||||||||||||||||
2008
|
2007
|
2006
|
||||||||||||||||||||||
Average
Balance
|
Percentage
of
Total
|
Average
Balance
|
Percentage
of
Total
|
Average
Balance
|
Percentage
of
Total
|
|||||||||||||||||||
Non-interest
bearing demand
Deposits
|
$
|
69,907,048
|
18
|
%
|
$
|
60,892,433
|
18
|
%
|
$
|
63,040,519
|
21
|
%
|
||||||||||||
Interest
bearing demand deposits
|
89,274,785
|
23
|
%
|
83,597,940
|
25
|
%
|
87,135,125
|
29
|
%
|
|||||||||||||||
Savings
deposits
|
79,864,816
|
21
|
%
|
64,408,442
|
19
|
%
|
44,867,384
|
15
|
%
|
|||||||||||||||
Certificates
of deposit of $100,000
or
more
|
70,297,311
|
18
|
%
|
54,252,087
|
16
|
%
|
43,870,647
|
15
|
%
|
|||||||||||||||
Other
certificates of deposit
|
76,921,495
|
20
|
%
|
67,236,813
|
20
|
%
|
58,183,657
|
20
|
%
|
|||||||||||||||
Total
|
$
|
386,265,455
|
100
|
%
|
$
|
330,387,715
|
100
|
%
|
$
|
297,097,332
|
100
|
%
|
||||||||||||
One
Year
or
Less
|
One
to
Three
Years
|
Three
to
Five
Years
|
Over
Five
Years
|
Total
|
||||||||||||||||
Standby
letters of credit
|
$
|
3,946,649
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
3,946,649
|
||||||||||
Commitments
to extend credit
|
$
|
180,965,000
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
180,965,000
|
||||||||||
Commitments
to sell residential loans
|
$
|
5,702,082
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
5,702,082
|
|
·
|
pertain
to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the
Company;
|
|
·
|
provide
reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted
accounting principles, and that the receipts and expenditures of the
Company are being made only in accordance with authorizations of its
management and directors; and
|
|
·
|
provide
reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use or disposition of the Company’s assets that
could have a material effect on its financial
statements.
|
Plan
category
|
Number
of securities to
be
issued upon exercise
of
outstanding options,
warrants
and rights
(a)
|
Weighted-average
exercise
price
of outstanding options,
warrants
and rights
(b)
|
Number
of securities
remaining
available for
future
issuance under equity
compensation
plans
(excluding
securities
reflected
in column (a))
(c)
|
|||||||||
Equity
compensation plans approved by security holders (1)
|
96,781
|
$
|
12.76
|
349,236
|
||||||||
Equity
compensation plans not approved by security holders (2)
|
67,260
|
$
|
5.83
|
-
|
||||||||
Total
|
164,041
|
$
|
9.92
|
349,236
|
|
(1)
|
Includes
the Company’s 1990 Employee Stock Option Plan for Key Employees, 1996
Employee Stock Option Plan, 2000 Employee Stock Option and Restricted
Stock Plan, 2005 Equity Incentive Plan and 2006 Directors Stock
Plan.
The
1990 Employee Stock Option Plan for Key Employees was adopted by the Board
of the Bank and approved by the shareholders of the Bank in March 1990.
The 1996 Employee Stock Option Plan was adopted by the Board of the Bank
and approved by shareholders of the Bank in March 1997. In 1999, as part
of the formation of the Company as a holding company for the Bank, these
plans were each amended so that no further grants may be made thereunder,
and each option to purchase one share of Bank common stock was converted
into an option to purchase one share of Company common stock.
The
Company’s 2000 Employee Stock Option and Restricted Stock Plan was adopted
by the Board of the Company and approved by the shareholders in April
2000, the Company’s 2005 Equity Incentive Plan was adopted by the Board of
the Company on February 17, 2005 and approved by the shareholders in May
2005 and the Company’s 2006 Directors Stock Plan was adopted by the Board
of the Company on March 23, 2006 and approved by the shareholders in May
2006.
|
|
(2)
|
Directors
Stock Option and Restricted Stock Plan.
The
Company’s Directors Stock Option and Restricted Stock Plan was adopted by
the Board, and became effective, on April 22, 1999, prior to the listing
of the Company’s common stock on the Nasdaq National Market System. The
plan provides for grants of non-qualified stock options and restricted
stock awards to directors of the Company and its subsidiaries.
Participants in the plan may be granted non-qualified stock options or
restricted stock. All stock option grants have an exercise price per share
of no less than the fair market value per share of common stock on the
grant date and may have a term of no longer than 10 years after the grant
date.
|
Exhibit No.
|
Description
|
||
3
|
(i)(A)
|
*
|
Certificate
of Incorporation of the Company (conformed copy)
|
3
|
(i)(B)
|
Certificate
of Amendment to the Certificate of Incorporation increasing the number of
shares designated as Series A Junior Participating Preferred Stock
(incorporated by reference to Exhibit 3.1 to the Company’s Form 8-K filed
with the SEC on December 23, 2008)
|
|
3
|
(i)(C)
|
Certificate
of Amendment to the Certificate of Incorporation establishing the terms of
the Fixed Rate Cumulative Perpetual Preferred Stock, Series B
(incorporated by reference to Exhibit 3.2 to the Company’s Form 8-K
filed with the SEC on December 23, 2008)
|
|
3
|
(ii)(A)
|
Bylaws
of the Company (conformed copy) (incorporated by reference to Exhibit
3(ii)(A) to the Company’s Form 8-K filed with the SEC on October 22,
2007)
|
|
3
|
(ii)(B)
|
Amendment
No. 2 to By-laws of the Company (incorporated by reference to Exhibit
3(ii)(B) to the Company’s Form 8-K filed with the SEC on October 22,
2007)
|
|
4.1
|
Specimen
Share of Common Stock (incorporated by reference to the Company’s Form
10-KSB filed with the SEC on March 22, 2002)
|
||
4.2
|
Amended
and Restated Declaration of Trust of 1st Constitution Capital Trust I
dated as of April 10, 2002 among the Registrant, as sponsor, Wilmington
Trust Company, as Delaware and institutional trustee, and the
Administrators named therein (incorporated by reference to the Company’s
Form 10-QSB filed with the SEC on May 8, 2002)
|
||
4.3
|
Indenture
dated as of April 10, 2002 between the Registrant, as issuer, and
Wilmington Trust Company, as trustee, relating to the Floating Rate Junior
Subordinated Debt Securities due 2032 (incorporated by reference to the
Company’s Form 10-QSB filed with the SEC on May 8,
2002)
|
Exhibit No.
|
Description
|
||
4.4
|
Guarantee
Agreement dated as of April 10, 2002 between the Registrant and the
Wilmington Trust Company, as guarantee trustee (incorporated by reference
to the Company’s Form 10-QSB filed with the SEC on May 8,
2002)
|
||
4.5
|
Rights
Agreement, dated as of March 18, 2004, between 1st Constitution Bancorp
and Registrar and Transfer Company, as Rights Agent, including the form of
Certificate of Amendment to the Company’s Certificate of Incorporation as
Exhibit A thereto, the form of Rights Certificates as Exhibit B thereto,
and the Summary of Rights as Exhibit C thereto. Pursuant to the Rights
Agreement, printed Rights Certificates will not be mailed until after the
Distribution Date (as such term is defined in the Rights Agreement)
(incorporated by reference to the Company’s Form 8-A12G filed with the SEC
on March 18, 2004)
|
||
4.6
|
Warrant,
dated December 23, 2008, to purchase shares of 1st Constitution Bancorp
common stock (incorporated by reference to Exhibit 3.3 to the
Company’s Form 8-K filed with the SEC on December 23,
2008)
|
||
10.1
|
#
|
1st
Constitution Bancorp Supplemental Executive Retirement Plan, dated as of
October 1, 2002 (Incorporated by reference to the Company’s Form 10-QSB
filed with the SEC on November 13, 2002)
|
|
10.2
|
#
|
Amended
and Restated 1st Constitution Bancorp Directors’ Insurance Plan, effective
as of June 16, 2005 (incorporated by reference to Exhibit No. 10 to the
Company’s Form 8-K filed with the SEC on March 24,
2006)
|
|
10.3
|
#
|
1st
Constitution Bancorp Form of Executive Life Insurance Agreement
(Incorporated by reference to the Company’s Form 10-QSB filed with the SEC
on November 13, 2002)
|
|
10.4
|
#
|
Amended
and Restated 1990 Stock Option Plan for Key Employees, as amended
(incorporated by reference to Exhibit No. 10.1 to the Company’s Form
10-QSB filed with the SEC on August 9, 2002)
|
|
10.5
|
#
|
1996
Employee Stock Option Plan, as amended (incorporated by reference to
Exhibit No. 10.2 to the Company’s Form 10-QSB filed with the SEC on August
9, 2002)
|
|
10.6
|
#
|
2000
Employee Stock Option and Restricted Stock Plan (incorporated by reference
to Exhibit No. 6.3 to the Company’s Form 10-SB filed with the SEC on June
15, 2001)
|
|
10.7
|
#
|
Directors
Stock Option and Restricted Stock Plan (incorporated by reference to
Exhibit No. 6.4 to the Company’s Form 10-SB filed with the SEC on June 15,
2001)
|
|
10.8
|
#
|
Employment
Agreement between the Company and Robert F. Mangano dated April 22, 1999
(incorporated by reference to Exhibit No. 6.5 to the Company’s Form 10-SB
filed with the SEC on June 15, 2001)
|
|
10.9
|
#
|
Amendment
No. 1 to 1st Constitution Bancorp Supplemental Executive Retirement Plan,
effective January 1, 2004 (incorporated by reference to Exhibit 10.12 to
the Company’s Form 10-Q filed with the SEC on August 11,
2004)
|
|
10.10
|
#
|
Change
of Control Agreement, effective as of April 1, 2004, by and between the
Company and Joseph M. Reardon (incorporated by reference to Exhibit 10.13
to the Company’s Form 10-Q filed with the SEC on August 11,
2004)
|
Exhibit No.
|
Description
|
||
10.11
|
#
|
Form
of Stock Option Agreement under the 1st Constitution
Bancorp Employee Stock Option and Restricted Stock Plan
(incorporated by reference to Exhibit 10.14 to the Company’s Form 8-K
filed with the SEC on December 22, 2004)
|
|
10.12
|
#
|
Form
of Restricted Stock Agreement under the 1st Constitution
Bancorp Employee Stock Option and Restricted Stock Plan
(incorporated by reference to Exhibit 10.15 to the Company’s Form 8-K
filed with the SEC on December 22, 2004)
|
|
10.13
|
#
|
Employment
Agreement between the Company and Robert F. Mangano dated February 22,
2005 (incorporated by reference to Exhibit No. 10.16 to the Company’s Form
8-K filed with the SEC on February 24, 2005)
|
|
10.14
|
#
|
The
1st Constitution Bancorp 2005 Equity Incentive Plan (incorporated by
reference to Appendix A of the Company's proxy statement filed on April
15, 2005)
|
|
10.15
|
#
|
Form
of Restricted Stock Agreement under the 1st Constitution Bancorp 2005
Equity Incentive Plan (incorporated by reference to Exhibit 10.18 to the
Company’s Form 10-Q filed with the SEC on August 8,
2005)
|
|
10.16
|
#
|
Form
of Nonqualified Stock Option Agreement under the 1st Constitution Bancorp
2005 Equity Incentive Plan (incorporated by reference to Exhibit 10.19 to
the Company’s Form 10-Q filed with the SEC on August 8,
2005)
|
|
10.17
|
#
|
Form
of Incentive Stock Option Agreement under the 1st Constitution Bancorp
2005 Equity Incentive Plan (incorporated by reference to Exhibit 10.20 to
the Company’s Form 10-Q filed with the SEC on August 8,
2005)
|
|
10.18
|
#
|
1st
Constitution Bancorp 2006 Directors Stock Plan (incorporated by reference
to Exhibit 10.1 to the Company’s Form 8-K filed with the SEC on May 19,
2006)
|
|
10.19
|
#
|
Form
of Nonqualified Stock Option Agreement under the 1st Constitution Bancorp
2006 Directors Stock Plan (incorporated by reference to Exhibit 10.2 to
the Company’s Form 8-K filed with the SEC on May 19,
2006)
|
|
10.20
|
#
|
Form
of Restricted Stock Agreement under the 1st Constitution Bancorp 2006
Directors Stock Plan (incorporated by reference to Exhibit 10.3 to the
Company’s Form 8-K filed with the SEC on May 19, 2006)
|
|
10.21
|
Amended
and Restated Declaration of Trust of 1st Constitution Capital Trust II,
dated as of June 15, 2006, among 1st Constitution Bancorp, as sponsor, the
Delaware and institutional trustee named therein, and the administrators
named therein (incorporated by reference to Exhibit 10.1 to the Company’s
Form 8-K filed with the SEC on June 16, 2006)
|
||
10.22
|
Indenture,
dated as of June 15, 2006, between 1st Constitution Bancorp, as issuer,
and the trustee named therein, relating to the Floating Rate Junior
Subordinated Debt Securities due 2036 (incorporated by reference to
Exhibit 10.2 to the Company’s Form 8-K filed with the SEC on June 16,
2006)
|
||
10.23
|
Guarantee
Agreement, dated as of June 15, 2006, between 1st Constitution Bancorp and
the guarantee trustee named therein (incorporated by reference to Exhibit
10.3 to the Company’s Form 8-K filed with the SEC on June 16,
2006)
|
Exhibit No.
|
Description
|
||
10.24
|
#
|
Amendment
No. 2 to 1st Constitution Bancorp Supplemental Executive Retirement
Plan, effective as of December 31, 2004 (incorporated by reference to
Exhibit 10.24 to the Company’s Form 10-K filed with the SEC on April 15,
2008)
|
|
10.25
|
#
|
1st
Constitution Bancorp 2005 Supplemental Executive Retirement Plan,
effective as of January 1, 2005 (incorporated by reference to Exhibit 10.1
to the Company’s Form 8-K filed with the SEC on December 28,
2006)
|
|
10.26
|
Branch
Purchase and Assumption Agreement, dated as of November 6, 2006, by and
between 1st Constitution Bank and Sun National Bank (incorporated by
reference to Exhibit 10.1 to the Company’s Form 8-K filed with the SEC on
November 13, 2006)
|
||
10.27
|
Letter
Agreement, dated December 23, 2008, including Securities Purchase
Agreement – Standard Terms incorporated by reference therein, between 1st
Constitution Bancorp and the U.S. Department of the Treasury (incorporated
by reference to Exhibit 10 to the Company’s Form S-3 filed with the SEC on
January 29, 2009)
|
||
10.28
|
#
|
Form
of Waiver, executed by each of Messrs. Robert Mangano and Joseph M.
Reardon (incorporated by reference to Exhibit 10.2 to the Company’s
Form 8-K filed with the SEC on December 23, 2008)
|
|
10.29
|
#
|
Form
of Senior Executive Officer Agreement, executed by each of Messrs. Robert
Mangano and Joseph M. Reardon (incorporated by reference to Exhibit
10.3 to the Company’s Form 8-K filed with the SEC on December 23,
2008)
|
|
14
|
Code
of Business Conduct and Ethics (incorporated by reference to Exhibit 14 to
the Company’s Form 10-K filed with the SEC on March 25,
2004)
|
||
16
|
Letter
from Grant Thornton LLP to the SEC dated April 23, 2008 (incorporated by
reference to Exhibit 16.1 to the Company’s Form 8-K filed with the
SEC on April 23, 2008)
|
||
21
|
Subsidiaries
of the Company (incorporated by reference to Exhibit 21 to the Company’s
Form 10-K filed with the SEC on April 15, 2008)
|
||
23.1
|
*
|
Consent
of Independent Registered Public Accounting Firm
|
|
23.2
|
*
|
Consent
of Independent Registered Public Accounting Firm
|
|
31.1
|
*
|
Certification
of the principal executive officer of the Company, pursuant to Securities
Exchange Act Rule 13a-14(a)
|
|
31.2
|
*
|
Certification
of the 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 the principal executive officer
and the principal financial officer of the
Company
|
Page
|
|
Report
of Independent Registered Public Accounting
Firm
|
F-2
|
Report
of Independent Registered Public Accounting
Firm
|
F-3
|
Consolidated
Balance Sheets – December 31, 2008 and
2007
|
F-4
|
Consolidated
Statements of Income – For the Years Ended December 31, 2008 and
2007
|
F-5
|
Consolidated
Statements of Changes in Shareholders’ Equity - For the Years
Ended
December 31, 2008 and 2007
|
F-6
|
Consolidated
Statements of Cash Flows - For the Years Ended December 31, 2008 and
2007
|
F-7
|
Notes
to Consolidated Financial
Statements
|
F-8
|
/s/ Beard Miller Company LLP |
2008
|
2007
|
|||||||
INTEREST
INCOME:
|
||||||||
Loans,
including fees
|
$
|
24,288,658
|
$
|
25,113,488
|
||||
Securities:
|
||||||||
Taxable
|
4,158,923
|
4,278,288
|
||||||
Tax-exempt
|
560,303
|
875,697
|
||||||
Federal
funds sold and
|
||||||||
short-term
investments
|
112,427
|
101,171
|
||||||
Total
interest income
|
29,120,311
|
30,368,644
|
||||||
INTEREST
EXPENSE:
|
||||||||
Deposits
|
10,106,856
|
9,636,856
|
||||||
Borrowings
|
1,556,240
|
1,514,907
|
||||||
Redeemable
subordinated debentures
|
1,069,351
|
1,438,876
|
||||||
Total
interest expense
|
12,732,447
|
12,590,639
|
||||||
Net
interest income
|
16,387,864
|
17,778,005
|
||||||
PROVISION
FOR LOAN LOSSES
|
640,000
|
130,000
|
||||||
Net
interest income after provision
|
||||||||
for
loan losses
|
15,747,864
|
17,648,005
|
||||||
NON-INTEREST
INCOME:
|
||||||||
Service
charges on deposit accounts
|
883,882
|
673,826
|
||||||
Gain
on sales of loans
|
1,040,916
|
761,004
|
||||||
Income
on Bank-owned life insurance
|
378,852
|
365,601
|
||||||
Other
income
|
998,309
|
757,898
|
||||||
Total
other income
|
3,301,959
|
2,558,329
|
||||||
NON-INTEREST
EXPENSES:
|
||||||||
Salaries
and employee benefits
|
8,426,729
|
7,196,552
|
||||||
Occupancy
expense
|
1,802,723
|
1,658,820
|
||||||
Data
processing expenses
|
896,724
|
829,037
|
||||||
Other
operating expenses
|
3,924,848
|
2,416,859
|
||||||
Total
other expenses
|
15,051,024
|
12,101,268
|
||||||
Income
before income taxes
|
3,998,799
|
8,105,066
|
||||||
INCOME
TAXES
|
1,239,341
|
2,662,284
|
||||||
Net
income
|
$
|
2,759,458
|
$
|
5,442,782
|
||||
NET
INCOME PER SHARE
|
||||||||
Basic
|
$
|
0.66
|
$
|
1.31
|
||||
Diluted
|
$
|
0.65
|
$
|
1.29
|
||||
WEIGHTED
AVERAGE SHARES
|
||||||||
OUTSTANDING
|
||||||||
Basic
|
4,192,731
|
4,168,440
|
||||||
Diluted
|
4,215,003
|
4,226,700
|
Accumulated
|
||||||||||||||||||||||||
Other
|
Total
|
|||||||||||||||||||||||
Preferred
|
Common
|
Retained
|
Treasury
|
Comprehensive
|
Shareholders'
|
|||||||||||||||||||
Stock
|
Stock
|
Earnings
|
Stock
|
Loss
|
Equity
|
|||||||||||||||||||
BALANCE,
January 1, 2007
|
$ | - | $ | 28,886,105 | $ | 7,010,211 | $ | (3,545 | ) | $ | (945,726 | ) | $ | 34,947,045 | ||||||||||
Exercise
of stock options, net and issuance of vested
|
||||||||||||||||||||||||
shares
under employee benefit programs
|
78,773 | 232,060 | 310,833 | |||||||||||||||||||||
FAS
123R share-based compensation
|
107,020 | 107,020 | ||||||||||||||||||||||
Treasury
Stock purchased (13,548 shares)
|
(246,903 | ) | (246,903 | ) | ||||||||||||||||||||
6%
stock dividend declared December 2007
|
3,443,038 | (3,443,038 | ) | |||||||||||||||||||||
Comprehensive
Income:
|
||||||||||||||||||||||||
Net
Income - 2007
|
5,442,782 | 5,442,782 | ||||||||||||||||||||||
Pension
liability
|
||||||||||||||||||||||||
net
of tax benefit of $24,758
|
(37,231 | ) | (37,231 | ) | ||||||||||||||||||||
Unrealized
loss on interest rate swap contract
|
||||||||||||||||||||||||
net
of tax benefit of $39,842
|
(59,912 | ) | (59,912 | ) | ||||||||||||||||||||
Unrealized
gain on securities available for sale
|
||||||||||||||||||||||||
net
of tax of $240,247
|
509,683 | 509,683 | ||||||||||||||||||||||
Comprehensive
Income
|
5,855,322 | |||||||||||||||||||||||
BALANCE,
December 31, 2007
|
- | 32,514,936 | 9,009,955 | (18,388 | ) | (533,186 | ) | 40,973,317 | ||||||||||||||||
Adjustment
to initially apply EITF 06-4
|
(329,706 | ) | (329,706 | ) | ||||||||||||||||||||
Proceeds
from issuance of preferred
stock
and warrants, net
|
11,387,828 | 562,172 | 11,950,000 | |||||||||||||||||||||
Exercise
of stock options, net and issuance of vested
|
||||||||||||||||||||||||
shares
under employee benefit programs
|
195,325 | 35,584 | 230,909 | |||||||||||||||||||||
FAS
123R share-based compensation
|
122,216 | 122,216 | ||||||||||||||||||||||
Treasury
Stock purchased (6,111 shares)
|
(70,527 | ) | (70,527 | ) | ||||||||||||||||||||
5%
stock dividend declared December 2008
|
1,785,784 | (1,785,784 | ) | - | ||||||||||||||||||||
Comprehensive
Income:
|
||||||||||||||||||||||||
Net
Income - 2008
|
2,759,458 | 2,759,458 | ||||||||||||||||||||||
Pension
liability
|
||||||||||||||||||||||||
net
of tax of $23,267
|
33,637 | 33,637 | ||||||||||||||||||||||
Unrealized
loss on interest rate swap contract
|
||||||||||||||||||||||||
net
of tax benefit of $423,906
|
(635,496 | ) | (635,496 | ) | ||||||||||||||||||||
Unrealized
gain on securities available for sale
|
||||||||||||||||||||||||
net
of tax of $309,759
|
585,844 | 585,844 | ||||||||||||||||||||||
Comprehensive
Income
|
2,743,443 | |||||||||||||||||||||||
BALANCE,
December 31, 2008
|
$ | 11,387,828 | $ | 35,180,433 | $ | 9,653,923 | $ | (53,331 | ) | $ | (549,201 | ) | $ | 55,619,652 | ||||||||||
Year
Ended December 31, 2007
|
||||||||||||
Income
|
Weighted-
average
shares
|
Per
share
Amount
|
||||||||||
Basic
EPS
|
||||||||||||
Net
income available to common stockholders
|
$
|
5,442,782
|
4,168,440
|
$
|
1.31
|
|||||||
Effect
of dilutive securities
|
||||||||||||
Options
and Grants
|
-
|
58,260
|
(0.02
|
)
|
||||||||
Diluted
EPS
|
||||||||||||
Net
income available to common stockholders plus assumed
conversion
|
$
|
5,442,782
|
4,226,700
|
$
|
1.29
|
Gross
|
Gross
|
||||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
||||||||||||||
2008
|
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
Available
for sale-
|
|||||||||||||||||
U.
S. Treasury securities and
|
|||||||||||||||||
obligations
of U.S. Government
|
|||||||||||||||||
sponsored
corporations and agencies
|
$
|
22,802,334
|
$
|
415,626
|
$
|
0
|
$
|
23,217,960
|
|||||||||
Collateralized
mortgage obligations
|
7,014,272
|
16,792
|
(253,432
|
)
|
6,777,632
|
||||||||||||
Mortgage
backed securities
|
54,727,033
|
1,930,299
|
(594
|
)
|
56,656,738
|
||||||||||||
Obligations
of State and
|
|||||||||||||||||
Political
subdivisions
|
2,868,049
|
6,872
|
(16,234
|
)
|
2,858,687
|
||||||||||||
Corporate
debt securities
|
2,454,969
|
0
|
(1,173,163
|
)
|
1,281,806
|
||||||||||||
Restricted
stock
|
2,659,200
|
0
|
0
|
2,659,200
|
|||||||||||||
Mutual
fund
|
25,000
|
0
|
0
|
25,000
|
|||||||||||||
$
|
92,550,857
|
$
|
2,369,589
|
$
|
(1,443,423
|
)
|
$
|
93,477,023
|
|||||||||
Held
to maturity-
|
|||||||||||||||||
U.
S. Treasury securities and
|
|||||||||||||||||
obligations
of U.S. Government sponsored corporations and agencies
|
$
|
10,000,000
|
$
|
193,800
|
$
|
0
|
$
|
10,193,800
|
|||||||||
Collateralized
mortgage obligations
|
8,727,315
|
49,897
|
(9,675
|
)
|
8,767,537
|
||||||||||||
Mortgage
backed securities
|
3,794,931
|
33,007
|
(212
|
)
|
3,827,726
|
||||||||||||
Obligations
of State and
|
|||||||||||||||||
Political
subdivisions
|
10,516,726
|
75,515
|
(93,502
|
)
|
10,498,739
|
||||||||||||
Corporate
debt securities
|
3,511,605
|
0
|
(659,028
|
)
|
2,852,577
|
||||||||||||
$
|
36,550,577
|
$
|
352,219
|
$
|
(762,417
|
)
|
$
|
36,140,379
|
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
2007
|
Cost
|
Gains
|
Losses
|
Value
|
||||||||||||
Available
for sale-
|
||||||||||||||||
U.
S. Treasury securities and
|
||||||||||||||||
obligations
of U.S. Government
|
||||||||||||||||
sponsored
corporations and agencies
|
$
|
21,455,563
|
$
|
315,075
|
$
|
(14,043
|
)
|
$
|
21,756,595
|
|||||||
Collateralized
mortgage obligations
|
8,106,154
|
2,170
|
(407,560
|
)
|
7,700,764
|
|||||||||||
Mortgage
backed securities
|
37,769,517
|
457,725
|
(57,365
|
)
|
38,169,877
|
|||||||||||
Obligations
of State and
|
||||||||||||||||
Political
subdivisions
|
3,446,517
|
14,778
|
(7,713
|
)
|
3,453,582
|
|||||||||||
Corporate
debt securities
|
2,451,122
|
0
|
(272,504
|
)
|
2,178,618
|
|||||||||||
Restricted
stock
|
1,907,701
|
0
|
0
|
1,907,701
|
||||||||||||
Mutual
fund
|
25,000
|
0
|
0
|
25,000
|
||||||||||||
$
|
75,161,574
|
$
|
789,748
|
$
|
(759,185
|
)
|
$
|
75,192,137
|
||||||||
Held
to maturity-
|
||||||||||||||||
Mortgage
backed securities
|
$
|
4,502,574
|
$
|
2,132
|
$
|
(121,197
|
)
|
$
|
4,383,509
|
|||||||
Obligations
of State and
|
||||||||||||||||
Political
subdivisions
|
18,013,721
|
142,232
|
(4,718
|
)
|
18,151,235
|
|||||||||||
Corporate
debt securities
|
996,051
|
0
|
(119,526
|
)
|
876,525
|
|||||||||||
$
|
23,512,346
|
$
|
144,364
|
$
|
(245,441
|
)
|
$
|
23,411,269
|
Amortized
Cost
|
Fair
Value
|
Weighted
Average
Yield*
|
||||||||||
Available
for sale-
|
||||||||||||
Due
in one year or less
|
$
|
6,094,198
|
$
|
6,144,721
|
3.83
|
%
|
||||||
Due
after one year through five years
|
17,656,903
|
17,974,754
|
4.21
|
%
|
||||||||
Due
after five years through ten years
|
13,032,530
|
13,242,004
|
4.96
|
%
|
||||||||
Due
after ten years
|
55,767,226
|
56,115,544
|
5.38
|
%
|
||||||||
Total
|
$
|
92,550,857
|
$
|
93,477,023
|
5.00
|
%
|
||||||
Held
to maturity-
|
||||||||||||
Due
in one year or less
|
$
|
10,955,710
|
$
|
11,155,504
|
3.45
|
%
|
||||||
Due
after one year through five years
|
4,535,579
|
4,521,258
|
4.72
|
%
|
||||||||
Due
after five years through ten years
|
5,817,643
|
5,804,321
|
5.66
|
%
|
||||||||
Due
after ten years
|
15,241,645
|
14,659,296
|
4.03
|
%
|
||||||||
Total
|
$
|
36,550,577
|
$
|
36,140,379
|
4.20
|
%
|
2008
|
Less
than 12 months
|
12
months or longer
|
Total
|
||||
Number
of
Securities
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
|
Collateralized
mortgage obligations
|
18
|
$3,283,040
|
($15,797)
|
$5,245,569
|
($247,310)
|
$8,528,609
|
($263,107)
|
Mortgage
backed securities
|
3
|
283,264
|
(806)
|
0
|
0
|
283,264
|
(806)
|
Obligations
of State and Political Subdivisions
|
16
|
5,551,850
|
(109,736)
|
0
|
0
|
5,551,850
|
(109,736)
|
Corporate
debt securities
|
8
|
2,001,805
|
(23,856)
|
1,628,794
|
(1,808,335)
|
3,630,599
|
(1,832,191)
|
Total
temporarily impaired securities
|
45
|
$11,119,959
|
($150,195)
|
$6,874,363
|
($2,055,645)
|
$17,994,322
|
($2,205,840)
|
2007
|
Less
than 12 months
|
12
months or longer
|
Total
|
||||||
Number
of
Securities
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
Fair Value
|
Unrealized
Losses
|
|||
Collateralized
mortgage obligations
|
25
|
$1,491,803
|
($33,117)
|
$9,418,035
|
($388,486)
|
$10,909,838
|
($421,603)
|
||
Mortgage
backed securities
|
15
|
4,278,329
|
(121,197)
|
5,230,207
|
(57,365)
|
9,508,536
|
(178,562)
|
||
Obligations
of State and Political Subdivisions
|
16
|
0
|
0
|
3,260,125
|
(12,431)
|
3,260,125
|
(12,431)
|
||
Corporate
debt securities
|
5
|
2,596,788
|
(354,198)
|
458,355
|
(37,832)
|
3,055,143
|
(392,030)
|
||
Total
temporarily impaired securities
|
61
|
$8,366,920
|
($508,512)
|
$18,366,722
|
($496,114)
|
$26,733,642
|
($1,004,626)
|
||
2008
|
2007
|
|||||||
|
||||||||
Commercial
business
|
$
|
57,528,879
|
$
|
57,232,295
|
||||
Commercial
real estate
|
90,904,418
|
77,896,347
|
||||||
Mortgage
warehouse lines
|
106,000,231
|
-
|
||||||
Construction
loans
|
94,163,997
|
132,735,920
|
||||||
Residential
real estate loans
|
11,078,402
|
10,088,515
|
||||||
Loans
to individuals
|
16,797,194
|
16,324,817
|
||||||
Deferred
loan fees
|
647,673
|
302,818
|
||||||
All
other loans
|
227,622
|
180,006
|
||||||
$
|
377,348,416
|
$
|
294,760,718
|
2008
|
2007
|
|||||||
Balance,
beginning of year
|
$
|
3,348,080
|
$
|
3,228,360
|
||||
Provision
charged to operations
|
640,000
|
130,000
|
||||||
Loans
charged off
|
(303,376)
|
(90,983
|
)
|
|||||
Recoveries
of loans charged off
|
3,060
|
80,703
|
||||||
Balance,
end of year
|
$
|
3,684,764
|
$
|
3,348,080
|
2008
|
2007
|
|||||||
Balance,
beginning of year
|
$
|
3,856,430
|
$
|
5,124,060
|
||||
Loans
granted
|
1,996,042
|
140,000
|
||||||
Repayments
of loans
|
(1,479,459
|
)
|
(1,407,630
|
)
|
||||
Balance,
end of year
|
$
|
4,373,013
|
$
|
3,856,430
|
Estimated
Useful
Lives
|
2008
|
2007
|
|||||||
Land
|
$
|
241,784
|
$
|
241,784
|
|||||
Building
|
40
Years
|
735,579
|
735,579
|
||||||
Leasehold
improvements
|
10
Years
|
2,225,660
|
2,187,879
|
||||||
Furniture
and equipment
|
3 –
15 Years
|
2,709,525
|
2,634,361
|
||||||
5,912,548
|
5,799,603
|
||||||||
Less
Accumulated depreciation
|
(3,610,059
|
)
|
(3,039,400
|
)
|
|||||
$
|
2,302,489
|
$
|
2,760,203
|
2008
|
2007
|
|||||||
Goodwill
|
$ | 472,726 | $ | 472,726 | ||||
Core
deposits intangible
|
210,358 | 247,070 | ||||||
Total
|
$ | 683,084 | $ | 719,796 |
2009
|
$
|
36,712
|
||
2010
|
36,712
|
|||
2011
|
36,712
|
|||
2012
|
36,712
|
|||
2013
|
36,712
|
|||
Thereafter
|
26,798
|
2008
|
2007
|
|||||||
Demand
|
||||||||
Non-interest
bearing
|
$
|
71,772,486
|
$
|
59,055,803
|
||||
Interest
bearing
|
82,842,413
|
86,168,444
|
||||||
Savings
|
83,410,405
|
62,094,432
|
||||||
Time
|
176,659,427
|
122,013,689
|
||||||
$
|
414,684,731
|
$
|
329,332,368
|
Year
|
Amount
|
|
2009
|
$165,671,370
|
|
2010
|
5,864,498
|
|
2011
|
3,056,083
|
|
2012
|
1,388,641
|
|
2013
|
678,835
|
|
$176,659,427
|
Maturity Range
|
Amount
|
|||
Three
months or less
|
$
|
54,745,731
|
||
Over
three months through six months
|
14,886,374
|
|||
Over
six months through twelve months
|
23,174,101
|
|||
Over
twelve months
|
4,945,862
|
|||
$
|
97,752,068
|
2008
|
||||
2009
|
$
|
8,000,000
|
||
2010
|
12,500,000
|
|||
2011
|
-
|
|||
2012
|
-
|
|||
2013
|
-
|
|||
Thereafter
|
10,000,000
|
|||
$
|
30,500,000
|
2008
|
2007
|
|||||||
Federal-
|
||||||||
Current
|
$
|
1,322,618
|
$
|
2,464,723
|
||||
Deferred
|
(282,481
|
)
|
(192,456
|
)
|
||||
|
1,040,137
|
2,272,267
|
||||||
State-
|
||||||||
Current
|
281,374
|
446,000
|
||||||
Deferred
|
(82,170
|
)
|
(55,983
|
)
|
||||
199,204
|
390,017
|
|||||||
$
|
1,239,341
|
$
|
2,662,284
|
2008
|
2007
|
||||||
Federal
income tax
|
$
|
1,359,592
|
$
|
2,755,722
|
|||
Add
(deduct) effect of:
|
|||||||
State income taxes net of federal income tax
effect
|
131,475
|
256,015
|
|||||
Tax-exempt interest income
|
(190,503
|
)
|
(297,737
|
)
|
|||
Bank-owned life insurance
|
(128,809
|
)
|
(124,304
|
)
|
|||
Other items, net
|
67,586
|
72,588
|
|||||
Provision
for income taxes
|
$
|
1,239,341
|
$
|
2,662,284
|
2008
|
2007
|
|||||||
Deferred
tax assets (liabilities):
|
||||||||
Allowance for loan losses
|
$
|
1,471,694
|
$
|
1,337,223
|
||||
Employee benefits
|
95,861
|
85,670
|
||||||
Unrealized gain on securities available for
sale
|
(322,639
|
)
|
(12,880
|
)
|
||||
SERP Liability
|
1,216,250
|
1,018,988
|
||||||
Unrealized loss on interest rate swap
|
463,748
|
39,842
|
||||||
Other
|
(94,414
|
)
|
(94,415
|
)
|
||||
Net
deferred tax assets
|
$
|
2,830,500
|
$
|
2,374,428
|
December
31,
2008
|
December
31,
2007
|
|||||||
Unrealized
holding gains on securities available for sale
|
$ | 926,166 | $ | 30,563 | ||||
Related
income tax effect
|
(322,639 | ) | (12,880 | ) | ||||
603,527 | 17,683 | |||||||
Unrealized
holding loss interest rate swap contract
|
(1,159,156 | ) | (99,754 | ) | ||||
Related
income tax effect
|
463,748 | 39,842 | ||||||
(695,408 | ) | (59,912 | ) | |||||
Pension
Liability
|
(761,439 | ) | (818,343 | ) | ||||
Related
income tax effect
|
304,119 | 327,386 | ||||||
(457,320 | ) | (490,957 | ) | |||||
Accumulated
other comprehensive loss
|
$ | (549,201 | ) | $ | (533,186 | ) |
Net
Unrealized
Gains
(Losses)
On
Available for
Sale
Securities
|
Net
Change in
Fair
Value of
Interest
Rate
Swap
Contract
|
Net
Change
Related
to
Defined
Benefit
Pension
Plans
|
Accumulated
Other
Comprehensive
Income
(Loss)
|
|||||
Balance,
December 31, 2006
|
($492,000)
|
$ -
|
($453,726)
|
($945,726)
|
||||
Net
Change
|
509,683
|
(59,912)
|
(37,231)
|
412,540
|
||||
Balance,
December 31, 2007
|
17,683
|
(59,912)
|
(490,957)
|
(533,186)
|
||||
Net
Change
|
585,844
|
(635,496)
|
33,637
|
(16,015)
|
||||
Balance,
December 31, 2008
|
$603,527
|
($695,408)
|
($457,320)
|
($549,201)
|
2008
|
2007
|
|||||||
Change
in Benefit Obligation
|
||||||||
Liability
for pension, beginning
|
$
|
2,551,295
|
$
|
2,006,288
|
||||
Service
cost
|
230,546
|
227,165
|
||||||
Interest
cost
|
159,320
|
131,555
|
||||||
Actuarial
loss
|
104,032
|
186,288
|
||||||
Liability
for pension, ending
|
$
|
3,045,192
|
$
|
2,551,295
|
||||
Amount
Recognized in Consolidated Balance Sheets
|
||||||||
Liability
for pension
|
$
|
(3,045,192
|
)
|
$
|
(2,551,295
|
)
|
||
Net
actuarial loss included in accumulated other comprehensive
income
|
355,265
|
312,736
|
||||||
Prior
service cost included in accumulated other comprehensive
income
|
406,174
|
505,607
|
||||||
Net
recognized pension expense
|
$
|
(2,283,753
|
)
|
$
|
(1,732,952
|
)
|
||
Information
for pension plans with an accumulated
benefit
obligation in excess of plan assets
|
||||||||
Projected
benefit obligation
|
$
|
3,045,192
|
$
|
2,551,295
|
||||
Accumulated
benefit obligation
|
2,754,427
|
2,221,495
|
||||||
Components
of Net Periodic Benefit Cost
|
2008
|
2007
|
||||||
Service
cost
|
$
|
230,546
|
$
|
227,165
|
||||
Interest
cost
|
159,320
|
131,555
|
||||||
Amortization
of prior service cost
|
99,432
|
99,432
|
||||||
Recognized
net actuarial gain
|
61,502
|
24,867
|
||||||
Net
periodic benefit expense
|
$
|
550,800
|
$
|
483,019
|
Weighted-Average
Assumptions, December 31
|
2008
|
2007
|
||||||
Discount
Rate
|
6.00
|
%
|
6.00
|
%
|
||||
Salary
Scale
|
4.00
|
%
|
4.00
|
%
|
Stock
Options
|
Shares
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Remaining
Contractual
Term
(years)
|
Aggregate
Intrinsic
Value
|
|||||||||||
Outstanding
at January 1, 2007
|
147,863
|
$
|
9.50
|
||||||||||||
Granted
|
17,808
|
13.35
|
|||||||||||||
Exercised
|
(991
|
)
|
2.96
|
||||||||||||
Forfeited
|
-
|
-
|
|||||||||||||
Expired
|
-
|
-
|
|||||||||||||
Outstanding
at December 31, 2007
|
164,680
|
9.92
|
5.3
|
$ |
876,204
|
||||||||||
Granted
|
-
|
-
|
|||||||||||||
Exercised
|
(639
|
)
|
3.24
|
||||||||||||
Forfeited
|
-
|
-
|
|||||||||||||
Expired
|
-
|
-
|
|||||||||||||
Outstanding
at December 31, 2008
|
164,041
|
$
|
9.92
|
4.3
|
$ |
342,658
|
|||||||||
Exercisable
at December 31, 2008
|
141,955
|
$
|
9.16
|
3.7 | $ |
342,658
|
Outstanding
Options
|
Exercisable
Options
|
|||||||||||||||||||||||||
Exercise
Price
Range
|
Number
|
Average
Life
in
Years
|
Average
Exercise
Price
|
Number
|
Average
Life
in
Years
|
Average
Exercise
Price
|
||||||||||||||||||||
$ 3.33 to $6.91 | 74,322 | 1.2 | $ | 5.01 | 74,322 | 1.2 | $ | 5.01 | ||||||||||||||||||
$ 9.67 to $10.76 | 18,682 | 4.5 | $ | 10.24 | 18,682 | 4.5 | $ | 10.24 | ||||||||||||||||||
$ 13.05 to $16.74 | 71,037 | 7.4 | $ | 14.97 | 48,951 | 7.1 | $ | 15.06 | ||||||||||||||||||
164,041 | 4.3 | $ | 9.92 | 141,955 | 3.7 | $ | 9.16 |
Nonvested
Shares
|
Number
of
Shares
|
Average
Grant-Date
Fair
Value
|
||||||
Nonvested
at January 1, 2007
|
47,613
|
$
|
14.41
|
|||||
Granted
|
20,980
|
14.01
|
||||||
Vested
|
(18,200
|
)
|
13.70
|
|||||
Forfeited
|
-
|
-
|
||||||
Nonvested
at December 31, 2007
|
50,393
|
14.62
|
||||||
Granted
|
-
|
-
|
||||||
Vested
|
(19,923
|
)
|
14.35
|
|||||
Forfeited
|
-
|
-
|
||||||
Nonvested
at December 31, 2008
|
30,470
|
$
|
14.80
|
2009
|
$
|
899,100
|
||
2010
|
933,599
|
|||
2011
|
763,710
|
|||
2012
|
789,660
|
|||
2013
|
790,418
|
|||
Thereafter
|
2,284,354
|
|||
$
|
6,460,841
|
|
2008
|
2007
|
||||||
Equipment
expense
|
$
|
626,467
|
$
|
485,792
|
||||
Marketing
|
246,879
|
106,822
|
||||||
Regulatory,
professional and other
consulting
fees
|
861,006
|
296,667
|
||||||
Office
expense
|
649,461
|
572,293
|
||||||
FDIC
deposit insurance
|
196,072
|
38,422
|
||||||
Directors’
fees
|
108,000
|
100,375
|
||||||
Other
real estate owned expenses
|
136,648
|
11,871
|
||||||
All
other expenses
|
1,100,315
|
804,577
|
||||||
$
|
3,924,848
|
$
|
2,416,859
|
To
Be Well Capitalized
|
||||||||||||||||||||||||
Under
Prompt
|
||||||||||||||||||||||||
For
Capital
|
Corrective
|
|||||||||||||||||||||||
Actual
|
Adequacy
Purposes
|
Action
Provisions
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
As of
December 31, 200
8
-
|
||||||||||||||||||||||||
Company
|
||||||||||||||||||||||||
Total Capital (to Risk Weighted Assets)
|
$
|
76,475,124
|
17.90
|
%
|
$
|
34,184,717
|
>8
|
%
|
N/A
|
N/A
|
||||||||||||||
Tier I Capital (to Risk Weighted Assets)
|
72,790,360
|
17.03
|
%
|
17,092,359
|
>4
|
%
|
N/A
|
N/A
|
||||||||||||||||
Tier I Capital (to Average Assets)
|
72,790,360
|
14.05
|
%
|
20,715,932
|
>4
|
%
|
N/A
|
N/A
|
||||||||||||||||
Bank
|
||||||||||||||||||||||||
Total Capital (to Risk Weighted Assets)
|
$
|
75,316,536
|
17.67
|
%
|
$
|
34,096,080
|
>8
|
%
|
$
|
42,620,100
|
>10
|
%
|
||||||||||||
Tier I Capital (to Risk Weighted Assets)
|
71,631,772
|
16.81
|
%
|
17,048,040
|
>4
|
%
|
25,572,060
|
>6
|
%
|
|||||||||||||||
Tier I Capital (to Average Assets)
|
71,631,772
|
13.88
|
%
|
20,636,440
|
>4
|
%
|
25,795,550
|
>5
|
%
|
|||||||||||||||
As
of December 31, 2007
|
||||||||||||||||||||||||
Company
|
||||||||||||||||||||||||
Total Capital (to Risk Weighted Assets)
|
$
|
62,006,573
|
17.75
|
%
|
$
|
27,949,600
|
>8
|
%
|
N/A
|
N/A
|
||||||||||||||
Tier I Capital (to Risk Weighted Assets)
|
54,437,463
|
15.58
|
%
|
13,974,800
|
>4
|
%
|
N/A
|
N/A
|
||||||||||||||||
Tier I Capital (to Average Assets)
|
54,437,463
|
12.66
|
%
|
17,196,222
|
>4
|
%
|
N/A
|
N/A
|
||||||||||||||||
Bank
|
||||||||||||||||||||||||
Total Capital (to Risk Weighted Assets)
|
$
|
59,961,320
|
17.16
|
%
|
$
|
27,949,600
|
>8
|
%
|
$
|
34,937,000
|
>10
|
%
|
||||||||||||
Tier I Capital (to Risk Weighted Assets)
|
56,613,240
|
16.20
|
%
|
13,974,800
|
>4
|
%
|
20,962,200
|
>6
|
%
|
|||||||||||||||
Tier I Capital (to Average Assets)
|
56,613,240
|
13.20
|
%
|
17,152,520
|
>4
|
%
|
21,440,650
|
>5
|
%
|
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).
|
Level
1 Inputs
|
Level
2 Inputs
|
Level
3 Inputs
|
Total
Fair Value
|
|||||||||||||
Securities
available for sale
|
$ | - | $ | 93,477,023 | $ | - | $ | 93,477,023 | ||||||||
Derivative
liabilities
|
- | (1,159,156 | ) | - | (1,159,156 | ) |
Level
1 Inputs
|
Level
2 Inputs
|
Level
3 Inputs
|
Total
Fair Value
|
|||||||||||||
Impaired
Loans
|
$ | - | $ | - | $ | 1,427,673 | $ | 1,427,673 |
December
31, 2008
|
December
31, 2007
|
|||||||||||||||
Carrying
|
Estimated
|
Carrying
|
Estimated
|
|||||||||||||
Value
|
Fair
Value
|
Value
|
Fair
Value
|
|||||||||||||
Cash
and cash equivalents
|
$
|
14,433,119
|
$
|
14,433,119
|
$
|
7,548,102
|
$
|
7,548,102
|
||||||||
Securities
available for sale
|
93,477,023
|
93,477,023
|
75,192,137
|
75,192,137
|
||||||||||||
Securities
held to maturity
|
36,550,557
|
36,140,379
|
23,512,346
|
23,411,269
|
||||||||||||
Loans
held for sale
|
5,702,082
|
5,702,082
|
10,322,005
|
10,321,000
|
||||||||||||
Gross
loans
|
377,348,416
|
382,020,000
|
294,760,718
|
294,845,000
|
||||||||||||
Accrued
interest receivable
|
2,192,601
|
2,192,601
|
2,495,732
|
2,495,732
|
||||||||||||
Deposits
|
(414,684,731
|
)
|
(416,809,000
|
)
|
(329,332,368
|
)
|
(329,561,000
|
)
|
||||||||
Other
borrowings
|
(51,500,000
|
)
|
(54,486,000
|
)
|
(35,600,000
|
)
|
(36,630,000
|
)
|
||||||||
Redeemable
subordinated debentures
|
(18,557,000
|
)
|
(18,583,000
|
)
|
(18,557,000
|
)
|
(18,557,013
|
)
|
||||||||
Interest
rate swap contract
|
(1,159,156
|
)
|
(1,159,156
|
)
|
(99,754
|
)
|
(99,754
|
)
|
||||||||
Accrued
interest payable
|
(1,984,102
|
)
|
(1,984,102
|
)
|
(1,992,187
|
)
|
(1,992,187
|
)
|
December
31,
2008
|
December
31,
2007
|
|||||||
Assets
:
|
||||||||
Cash
|
$
|
658,093
|
$
|
938,826
|
||||
Investment
securities available for sale
|
557,000
|
557,000
|
||||||
Investment
in subsidiaries
|
71,898,891
|
56,927,524
|
||||||
Other
assets
|
1,062,668
|
1,106,427
|
||||||
Total
Assets
|
$
|
74,176,652
|
$
|
59,529,777
|
||||
Liabilities
And Shareholders’ Equity
|
||||||||
Subordinated
debentures
|
18,557,000
|
18,557,000
|
||||||
Shareholders’
equity
|
55,619,652
|
40,972,777
|
||||||
Total
Liabilities and Shareholder’s Equity
|
$
|
74,176,652
|
$
|
59,529,777
|
Year
ended December 31,
|
||||||||
2008
|
2007
|
|||||||
Income:
|
||||||||
Interest
|
$
|
36,347
|
$
|
76,123
|
||||
Total
Income
|
36,347
|
76,123
|
||||||
Expense:
|
||||||||
Interest
|
1,096,756
|
1,483,399
|
||||||
Other
|
0
|
11,481
|
||||||
Total
Expense
|
1,096,756
|
1,494,880
|
||||||
Loss
before income taxes and equity in undistributed income of
Subsidiaries
|
(1,060,409
|
)
|
(1,418,757
|
)
|
||||
Federal
income tax benefit
|
(352,152
|
)
|
(432,258
|
)
|
||||
Loss
before equity in undistributed income of subsidiaries
|
(708,257
|
)
|
(986,499
|
)
|
||||
Equity
in undistributed income of subsidiaries
|
3,467,715
|
6,429,281
|
||||||
Net
Income
|
$
|
2,759,458
|
$
|
5,442,782
|
Year
ended December 31,
|
||||||||
2008
|
2007
|
|||||||
Operating
Activities:
|
||||||||
Net
Income
|
$
|
2,759,458
|
$
|
5,442,782
|
||||
Adjustments:
|
||||||||
Decrease
in investment securities available for sale
|
0
|
155,000
|
||||||
(Increase)
decrease in other assets
|
43,760
|
(587,772
|
)
|
|||||
Equity
in undistributed income of subsidiaries
|
(3,467,715
|
)
|
(6,429,281
|
)
|
||||
Net
cash used in operating activities
|
(664,497
|
)
|
(1,419,271
|
)
|
||||
Investing
Activities:
|
||||||||
Investment
in subsidiaries
|
(12,000,000
|
)
|
0
|
|||||
Repayment
of investments in subsidiaries
|
273,382
|
0
|
||||||
Net
cash (used in) provided by investing activities
|
(11,726,618
|
)
|
0
|
|||||
Financing
Activities:
|
||||||||
Issuance
of common stock, net
|
230,909
|
310,833
|
||||||
Purchase
of treasury stock
|
(70,527
|
)
|
(246,903
|
)
|
||||
Issuance
of preferred stock and warrants, net
|
11,950,000
|
0
|
||||||
Repayments
of subordinated debentures
|
0
|
(5,155,000
|
)
|
|||||
Net
cash provided by (used in) financing activities
|
12,110,382
|
(5,091,070
|
)
|
|||||
Net
decrease in cash
|
(280,733
|
)
|
(6,510,341
|
)
|
||||
Cash
as of beginning of year
|
938,826
|
7,449,167
|
||||||
Cash
as of end of year
|
$
|
658,093
|
$
|
938,826
|
2008
|
||||||||||||||||||||
Dec.
31
|
Sept.
30
|
June
30
|
March
31
|
|||||||||||||||||
Summary
of Operations
|
||||||||||||||||||||
Interest
income
|
$
|
7,371,872
|
$
|
7,389,253
|
$
|
7,192,130
|
$
|
7,167,056
|
||||||||||||
Interest
expense
|
3,185,601
|
3,201,563
|
3,181,357
|
3,163,926
|
||||||||||||||||
Net
interest income
|
4,186,271
|
4,187,690
|
4,010,773
|
4,003,130
|
||||||||||||||||
Provision
for loan losses
|
105,000
|
175,000
|
195,000
|
165,000
|
||||||||||||||||
Net
interest income after provision
|
||||||||||||||||||||
for
loan losses
|
4,081,271
|
4,012,690
|
3,815,773
|
3,838,130
|
||||||||||||||||
Non-interest
income
|
734,467
|
976,211
|
804,904
|
786,377
|
||||||||||||||||
Non-interest
expense
|
4,091,269
|
3,928,263
|
3,617,142
|
3,414,350
|
||||||||||||||||
Income
before income taxes
|
724,469
|
1,060,638
|
1,003,535
|
1,210,157
|
||||||||||||||||
Income
taxes
|
267,448
|
278,244
|
285,689
|
407,960
|
||||||||||||||||
Net income
|
$
|
457,021
|
$
|
782,394
|
$
|
717,846
|
$
|
802,197
|
||||||||||||
Net
income per share :
|
||||||||||||||||||||
Basic
|
$
|
0.11
|
$
|
0.19
|
$
|
0.17
|
$
|
0.19
|
||||||||||||
Diluted
|
$
|
0.11
|
$
|
0.18
|
$
|
0.17
|
$
|
0.19
|
||||||||||||
2007
|
||||||||||||||||||||
Dec.
31
|
Sept.
30
|
June
30
|
March
31
|
|||||||||||||||||
Summary
of Operations
|
||||||||||||||||||||
Interest
income
|
$
|
7,708,264
|
$
|
7,825,738
|
$
|
7,445,478
|
$
|
7,389,164
|
||||||||||||
Interest
expense
|
3,220,991
|
3,307,196
|
3,130,961
|
2,931,491
|
||||||||||||||||
Net
interest income
|
4,487,273
|
4,518,542
|
4,314,517
|
4,457,673
|
||||||||||||||||
Provision
for loan losses
|
30,000
|
30,000
|
30,000
|
40,000
|
||||||||||||||||
Net
interest income after provision
|
||||||||||||||||||||
For
loan losses
|
4,457,273
|
4,488,542
|
4,284,517
|
4,417,673
|
||||||||||||||||
Non-interest
income
|
620,459
|
645,706
|
648,423
|
643,741
|
||||||||||||||||
Non-interest
expense
|
3,140,326
|
3,011,371
|
2,875,337
|
3,074,224
|
||||||||||||||||
Income
before income taxes
|
1,937,406
|
2,122,877
|
2,057,603
|
1,987,190
|
||||||||||||||||
Income
taxes
|
674,337
|
687,147
|
639,504
|
661,296
|
||||||||||||||||
Net income
|
$
|
1,263,069
|
$
|
1,435,730
|
$
|
1,418,099
|
$
|
1,325,894
|
||||||||||||
Net
income per share :
|
||||||||||||||||||||
Basic
|
$
|
0.30
|
$
|
0.34
|
$
|
0.34
|
$
|
0.31
|
||||||||||||
Diluted
|
$
|
0.30
|
$
|
0.34
|
$
|
0.33
|
$
|
0.31
|
Maturity
|
Hedged Liability
|
Notional
Amounts
|
Swap
Fixed
Interest Rates
|
Swap
Variable
Interest Rates
|
June
15, 2011
|
Trust
Preferred Securities
|
$18,000,000
|
5.87%
|
3
month LIBOR plus
165
basis
points
|
1st
CONSTITUTION BANCORP
|
|||
Date: March 27,
2009
|
By:
|
/s/ ROBERT
F. MANGANO
|
|
Robert
F. Mangano
|
|||
President
and Chief Executive Officer
|
|||
(Principal
Executive Officer)
|
Signature
|
Capacity
|
Date
|
||
/s/
ROBERT F. MANGANO
|
President,
Chief Executive Officer and Director
|
March 27,
2009
|
||
Robert
F. Mangano
/s/
CHARLES S. CROW, III
|
(Principal
Executive Officer)
Chairman
of the Board
|
March 27,
2009
|
||
Charles
S. Crow, III
/s/
DAVID C. REED
|
Director
|
March 27,
2009
|
||
David
C. Reed
/s/
WILLIAM M. RUE
|
Director
|
March 27,
2009
|
||
William
M. Rue
/s/
FRANK E. WALSH, III
|
Director
|
March 27,
2009
|
||
Frank
E. Walsh, III
/s/
JOSEPH M. REARDON
|
Senior
Vice President and Treasurer
|
March 27,
2009
|
||
Joseph
M. Reardon
|
(Principal
Accounting and Financial Officer)
|
1.
|
I
have reviewed this annual report on Form 10-K of 1
st
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):
|
Date: March 27, 2009 | |
|
|
/s/ ROBERT F. MANGANO |
Name: | Robert F. Mangano |
Title: | President and Chief Executive Officer |
|
1.
|
I
have reviewed this annual report on Form 10-K of 1
st
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):
|
Date: March 27, 2009 | |
|
|
/s/ JOSEPH M. REARDON |
Name: | Joseph M. Reardon |
Title: |
Senior
Vice President and
Treasurer
|
|
(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.
|
/s/
ROBERT F. MANGANO
|
|
Name:
|
Robert F. Mangano | |
Title: | President and Chief Executive Officer | |
Date: | March 27, 2009 |
/s/
JOSEPH M. REARDON
|
|
Name:
|
Joseph M. Reardon | |
Title: | Senior Vice President and Treasurer | |
Date: | March 27, 2009 |