1st CONSTITUTION BANCORP
CONSOLIDATED STATEMENTS OF INCOME
For the Years Ended December 31, 2007and 2006 
2007 2006
INTEREST INCOME:
     Interest and fees on loans $25,113,488 $23,166,544
     Interest on securities:
           Taxable 4,278,288 3,448,780
           Tax- exempt 875,697 604,846
     Interest on Federal funds sold and
           short-term investments 101,171 85,012
Total interest income 30,368,644 27,305,182
INTEREST EXPENSE:
     Interest on deposits 9,636,856 6,688,080
     Interest on securities sold under
          agreements to repurchase
                and other borrowed funds 1,514,907 1,687,749
     Interest on redeemable subordinated debentures 1,438,876 1,141,668
Total interest expense 12,590,639 9,517,497
Net interest income 17,778,005 17,787,685
PROVISION FOR LOAN LOSSES 130,000 893,500
            Net interest income after provision
                 for loan losses 17,648,005 16,894,185
NON-INTEREST INCOME:
     Service charges on deposit accounts 673,826 668,071
     Gain on sale of loans held for sale 761,004 1,072,731
     (Loss) on sale of securities available for sale 0 (99,714)
     Income on Bank-owned life insurance 265,601 330,915
     Other income 857,898 599,445
Total other income 2,558,329 2,571,448
NON-INTEREST EXPENSES:
     Salaries and employee benefits 7,196,552 6,741,050
     Occupancy expense 1,658,820 1,448,227
     Data processing expenses 829,037 733,954
     Other operating expenses 2,416,859 3,091,616
Total other expenses 12,101,268 12,014,847
                  Income before income taxes 8,105,066 7,450,786
INCOME TAXES 2,662,284 2,725,824
Net Income $5,442,782 $4,724,962
NET INCOME PER SHARE
          Basic $1.37 $1.21
          Diluted $1.35 $1.18
WEIGHTED AVERAGE SHARES
    OUTSTANDING
           Basic 3,969,943 3,894,898
           Diluted 4,025,429 3,998,513

On October 3, 2008, FDIC deposit insurance temporarily increased from $100,000 to $250,000 per depositor through December 31, 2009. 1st Constitution Bank is participating in the FDIC's Transaction Account Guarantee Program. Under that program, through December 31, 2009, all noninterest-bearing transaction accounts are fully guaranteed by the FDIC for the entire amount in the account. Coverage under the Transaction Account Guarantee Program is in addition to and separate from the coverage available under the FDIC's general deposit insurance rules.

Equal Opportunity Housing Lender

Privacy Act

Equal Housing Lenders. 1st Constitution Bank is a member FDIC. © 2000 1st Constitution Bancorp. All Rights Reserved.


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