NasdaqGM:FCCY

Stock Analysis Report

1st Constitution Bancorp

Executive Summary

1st Constitution Bancorp operates as the bank holding company for 1st Constitution Bank that provides commercial and retail banking services in the central, coastal, and northeastern areas of New Jersey.

Rewards

Trading at 4.3% below its fair value

Earnings are forecast to grow 15.15% per year

Earnings grew by 13.2% over the past year

Risk Analysis

Unstable dividend track record

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

How has 1st Constitution Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FCCY has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.1%

FCCY

-1.5%

US Banks

0.06%

US Market


1 Year Return

10.3%

FCCY

9.7%

US Banks

19.4%

US Market

Return vs Industry: FCCY matched the US Banks industry which returned 9.7% over the past year.

Return vs Market: FCCY underperformed the US Market which returned 19.4% over the past year.


Shareholder returns

FCCYIndustryMarket
7 Day0.1%-1.5%0.06%
30 Day-5.8%-2.8%1.1%
90 Day5.6%0.3%8.9%
1 Year12.2%10.3%12.9%9.7%21.9%19.4%
3 Year12.8%8.1%22.5%13.7%48.9%39.3%
5 Year109.1%99.2%72.4%52.8%71.9%53.1%

Price Volatility Vs. Market

How volatile is 1st Constitution Bancorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is 1st Constitution Bancorp undervalued compared to its fair value and its price relative to the market?

4.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FCCY ($20.6) is trading below our estimate of fair value ($21.52)

Significantly Below Fair Value: FCCY is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: FCCY is poor value based on its PE Ratio (13.4x) compared to the Banks industry average (12.6x).

PE vs Market: FCCY is good value based on its PE Ratio (13.4x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: FCCY is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: FCCY is overvalued based on its PB Ratio (1.2x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is 1st Constitution Bancorp forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

15.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FCCY's forecast earnings growth (15.2% per year) is above the savings rate (1.7%).

Earnings vs Market: FCCY's earnings (15.2% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: FCCY's earnings are forecast to grow, but not significantly.

Revenue vs Market: FCCY's revenue (11.2% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: FCCY's revenue (11.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FCCY's Return on Equity is forecast to be low in 3 years time (9.9%).


Next Steps

Past Performance

How has 1st Constitution Bancorp performed over the past 5 years?

13.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FCCY has high quality earnings.

Growing Profit Margin: FCCY's current net profit margins (25.1%) are higher than last year (24%).


Past Earnings Growth Analysis

Earnings Trend: FCCY's earnings have grown by 13.5% per year over the past 5 years.

Accelerating Growth: FCCY's earnings growth over the past year (13.2%) is below its 5-year average (13.5% per year).

Earnings vs Industry: FCCY earnings growth over the past year (13.2%) exceeded the Banks industry 12.3%.


Return on Equity

High ROE: FCCY's Return on Equity (8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is 1st Constitution Bancorp's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: FCCY has a low level of unsold assets or inventory.

Debt Coverage by Assets: FCCY's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

Asset Level: FCCY's level of assets compared to its equity is low.

Allowance for Bad Loans: FCCY has a sufficient allowance for bad loans.

Low Risk Liabilities: FCCY's liabilities are made up of primarily low risk sources of funding.

Loan Level: FCCY has an acceptable proportion of non-loan assets held.

Low Risk Deposits: FCCY's loans are broadly funded by customer deposits.

Level of Bad Loans: FCCY has an appropriate level of bad loans (0.37%)


Next Steps

Dividend

What is 1st Constitution Bancorp's current dividend yield, its reliability and sustainability?

1.75%

Current Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years1.7%

Current dividend yield vs market & industry

Notable Dividend: FCCY's dividend (1.75%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: FCCY's dividend (1.75%) is low compared to the top 25% of dividend payers in the US market (3.7%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, FCCY has been paying a dividend for less than 10 years.

Growing Dividend: FCCY's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20.5%), FCCY's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FCCY's dividends in 3 years are forecast to be well covered by earnings (19.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.6yrs

Average management tenure


CEO

Robert Mangano (73yo)

US$1,541,840

Compensation

Mr. Robert F. Mangano serves as the Chief Executive Officer and President at 1st Constitution Bancorp and 1st Constitution Bank, a subsidiary of 1st Constitution Bancorp. Mr. Mangano serves as Treasurer of ...


CEO Compensation Analysis

Compensation vs Market: Robert's total compensation ($USD1.54M) is above average for companies of similar size in the US market ($USD1.11M).

Compensation vs Earnings: Robert's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Mangano
President0yrsUS$1.54m5.41% $11.3m
Stephen Gilhooly
Senior VP5.8yrsUS$344.39k0.11% $237.4k
John Andreacio
Executive VP and Chief Lending & Credit Officer5.4yrsUS$571.52k0.19% $394.6k
William Rue
Corporate Secretary & Director21.1yrsUS$35.55k2.48% $5.2m
Naqi Naqvi
Senior VP & Chief Accounting Officer1.8yrsno data0.033% $69.7k
Dorine Nicol
Senior VP & Human Resources Director of 1st Constitution Bank16.4yrsno datano data

5.6yrs

Average Tenure

67yo

Average Age

Experienced Management: FCCY's management team is seasoned and experienced (5.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Mangano
President0yrsUS$1.54m5.41% $11.3m
William Rue
Corporate Secretary & Director21.1yrsUS$35.55k2.48% $5.2m
Roy Tartaglia
Independent Director3.7yrsUS$40.39k0.82% $1.7m
James Aaron
Independent Director3.7yrsUS$37.70k0.20% $421.8k
Charles Crow
Chairman of the Board14.9yrsUS$62.26k0.99% $2.1m
Carmen Penta
Independent Director3.1yrsUS$38.24k0.086% $180.8k
J. Cannon
Independent Director3.7yrsUS$32.46k0.056% $117.1k
Antonio Cruz
Independent Director3.7yrsUS$35.82k1.32% $2.8m
Edwin Pisani
Independent Director3.7yrsUS$50.58k0.24% $498.7k
William Barrett
Independent Director2.9yrsUS$33.37k0.021% $43.1k

3.7yrs

Average Tenure

70yo

Average Age

Experienced Board: FCCY's board of directors are considered experienced (3.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.7%.


Top Shareholders

Company Information

1st Constitution Bancorp's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: 1st Constitution Bancorp
  • Ticker: FCCY
  • Exchange: NasdaqGM
  • Founded: 1989
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$209.031m
  • Shares outstanding: 10.19m
  • Website: https://www.1stconstitution.com

Number of Employees


Location

  • 1st Constitution Bancorp
  • 2650 Route 130
  • PO Box 634
  • Cranbury
  • New Jersey
  • 8512
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FCCYNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDSep 1997
1JBDB (Deutsche Boerse AG)YesCommon StockDEEURSep 1997

Biography

1st Constitution Bancorp operates as the bank holding company for 1st Constitution Bank that provides commercial and retail banking services in the central, coastal, and northeastern areas of New Jersey. The company offers deposit products, including interest bearing demand deposits, such as interest-bearing checking accounts, money market accounts, and negotiable order of withdrawal accounts; and non-interest bearing demand, savings, and time deposits, as well as certificates of deposit. It also provides commercial loans, including term loans, lines of credit, and loans secured by equipment and receivables; secured and unsecured short-to-medium term commercial loans to businesses for working capital, business expansion, and the purchase of equipment and machinery; and construction loans to real estate developers for the acquisition, development, and construction of residential and commercial properties. In addition, the company offers residential first mortgage loans secured by owner-occupied property; construction loans; reverse mortgages; second mortgage home improvement loans; home equity lines of credit; and non-residential consumer loans for automobiles, recreation vehicles, and boats, as well as secured and unsecured personal loans, and deposit account secured loans. It serves corporations, individuals, partnerships, and other community organizations, as well as small businesses and not-for-profit organizations. As of December 31, 2018, the company operated through 19 additional branch offices in Asbury Park, Cranbury, Fair Haven, Fort Lee, Freehold, Hamilton Square, Hightstown, Hillsborough, Hopewell, Jamesburg, Lawrenceville, Little Silver, Neptune City, Perth Amboy, Plainsboro, Skillman, Princeton, Rumson, and Shrewsbury, New Jersey; and 2 residential mortgage loan production offices in Forked River and Jersey City, New Jersey. 1st Constitution Bancorp was founded in 1989 and is based in Cranbury, New Jersey. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 00:04
End of Day Share Price2020/02/18 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.