Exhibit 99
CONTACT:
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Robert F. Mangano
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Joseph M. Reardon
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President & Chief Executive Officer
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Sr. Vice President & Treasurer
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(609) 655-4500
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(609) 655-4500
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PRESS RELEASE - FOR IMMEDIATE RELEASE......
1ST CONSTITUTION BANCORP
REPORTS STRONG FOURTH QUARTER AND ANNUAL RESULTS
FOR THE YEAR ENDED DECEMBER 31, 2013
Cranbury NJ – February 5, 2014....... 1ST Constitution Bancorp (NASDAQ: FCCY), the holding company for 1ST Constitution Bank, reported net income for the fourth quarter of 2013 of $1.4 million, or $0.22 per diluted share, compared to net income for the fourth quarter of 2012 of $1.2 million, or $0.21 per diluted share. During the fourth quarter of 2012, the Company concluded a rights offering to existing shareholders, which resulted in the issuance of 555,555 new shares of common stock and raised approximately $4.8 million of additional equity capital.
Net income for the year ended December 31, 2013 was $5.8 million, or $0.95 per diluted share, compared to $5.1 million, or $0.90 per diluted share, for the year ended December 31, 2012.
Net income, when compared to the same periods in 2012, increased by $134 thousand, or 10.8 percent, for the quarter ended December 31, 2013, and by $720 thousand, or 14.2 percent, for the year ended December 31, 2013. During the fourth quarter of 2013 and the full-year 2013, the Company incurred pretax merger-related expenses of $165 thousand (or $148 thousand after taxes) and $327 thousand (or $303 thousand after taxes) in connection with its proposed merger with Rumson-Fair Haven Bank and Trust Company. Excluding after-tax merger-related expenses, net income for the fourth quarter of 2013 and the year 2013, net income would have been $1.5 million (or $0.25 per diluted share) and $6.1 million (or $1.00 per diluted share), respectively. At December 31, 2013, the Company’s tangible book value per common share was $10.55.
Robert F. Mangano, President and Chief Executive Officer, said “The increase in net income for the year ended December 31, 2013 was principally the result of a 10.6 percent increase in non-interest income, a $1.1 million decline in our loan loss provision, and a 9.9 percent decrease in non-interest expense. These favorable developments were partly offset by a 9.5 percent decline in taxable equivalent net interest income.”
Net interest income on a taxable equivalent basis was $25.8 million for the year ended December 31, 2013, a $2.7 million decrease from the $28.5 million reported for the year ended December 31, 2012. Earnings for the year ended December 31, 2013 were bolstered by the continued generation of non-interest income, which totaled $5.8 million for the year. On a comparative basis, non-interest income for the year ended December 31, 2013 was up by $560 thousand, or 10.6 percent, when compared to results for the year 2012.
The provision for loan losses for the year ended December 31, 2013 totaled $1.1 million, compared to $2.2 million for the year ended December 31, 2012. Net charge-offs for the year ended December 31, 2013 were $1.2 million, compared to net charge-offs of $533 thousand for the year ended December 31, 2012.
At December 31, 2013, the allowance for loan losses was $7.0 million, or 1.89 percent of total loans, compared to $7.2 million, or 1.37 percent of total loans at December 31, 2012. Non-performing assets at December 31, 2013 were $8.5 million, compared to non-performing assets of $14.3 million at December 31, 2012. Non-performing assets at December 31, 2013 included non-performing loans of $6.3 million and other real estate owned of $2.2 million; comparable amounts at December 31, 2012 were non-performing loans of $6.0 million and other real estate owned of $8.3 million, respectively.