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1st Constitution Bancorp

Nasdaq:FCCY
Snowflake Description

Excellent balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FCCY
Nasdaq
$172M
Market Cap
  1. Home
  2. US
  3. Banks
Company description

1st Constitution Bancorp operates as the bank holding company for 1st Constitution Bank that provides commercial and retail banking services in the central and northeastern New Jersey areas. The last earnings update was 183 days ago. More info.


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FCCY Share Price and Events
Price Volatility
FCCY
Industry
5yr Volatility vs Market

FCCY Value

 Is 1st Constitution Bancorp undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of 1st Constitution Bancorp to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for 1st Constitution Bancorp.

NasdaqGM:FCCY Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= $16.02 * 8.2%
$1.32
Book Value of Equity per Share Weighted future Book Value estimates from 2 analysts. $16.02
Discount Rate (Cost of Equity) See below 10.8%
Perpetual Growth Rate 10-Year US Government Bond Rate 3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGM:FCCY
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 3%
Equity Risk Premium S&P Global 7.1%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.6
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.601 (1 + (1- 21%) (79.63%))
1.118
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.12
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (1.118 * 7.05%)
10.83%

Discounted Cash Flow Calculation for NasdaqGM:FCCY using Excess Returns Model Model

The calculations below outline how an intrinsic value for 1st Constitution Bancorp is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NasdaqGM:FCCY Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (8.2% – 10.83%) * $16.02)
$-0.42
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $-0.42 / (10.83% - 2.95%)
$-5.28
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $16.02 + $-5.28
$10.73
NasdaqGM:FCCY Discount to Share Price
Calculation Result
Value per share (USD) From above. $10.73
Current discount Discount to share price of $20.65
= -1 x ($20.65 - $10.73) / $10.73
-92.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of 1st Constitution Bancorp is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for 1st Constitution Bancorp's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are 1st Constitution Bancorp's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGM:FCCY PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-06-30) in USD $0.96
NasdaqGM:FCCY Share Price ** NasdaqGM (2018-09-18) in USD $20.65
United States of America Banks Industry PE Ratio Median Figure of 622 Publicly-Listed Banks Companies 17.87x
United States of America Market PE Ratio Median Figure of 3,820 Publicly-Listed Companies 19.87x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of 1st Constitution Bancorp.

NasdaqGM:FCCY PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGM:FCCY Share Price ÷ EPS (both in USD)

= 20.65 ÷ 0.96

21.62x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 1st Constitution Bancorp is overvalued based on earnings compared to the US Banks industry average.
  • 1st Constitution Bancorp is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does 1st Constitution Bancorp's expected growth come at a high price?
Raw Data
NasdaqGM:FCCY PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 21.62x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
18.9%per year
United States of America Banks Industry PEG Ratio Median Figure of 286 Publicly-Listed Banks Companies 1.18x
United States of America Market PEG Ratio Median Figure of 2,650 Publicly-Listed Companies 1.41x

*Line of best fit is calculated by linear regression .

NasdaqGM:FCCY PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 21.62x ÷ 18.9%

1.14x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 1st Constitution Bancorp is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on 1st Constitution Bancorp's assets?
Raw Data
NasdaqGM:FCCY PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-06-30) in USD $14.36
NasdaqGM:FCCY Share Price * NasdaqGM (2018-09-18) in USD $20.65
United States of America Banks Industry PB Ratio Median Figure of 635 Publicly-Listed Banks Companies 1.43x
United States of America Market PB Ratio Median Figure of 6,378 Publicly-Listed Companies 1.94x
NasdaqGM:FCCY PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGM:FCCY Share Price ÷ Book Value per Share (both in USD)

= 20.65 ÷ 14.36

1.44x

* Primary Listing of 1st Constitution Bancorp.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 1st Constitution Bancorp is overvalued based on assets compared to the US Banks industry average.
X
Value checks
We assess 1st Constitution Bancorp's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. 1st Constitution Bancorp has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

FCCY Future Performance

 How is 1st Constitution Bancorp expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
18.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is 1st Constitution Bancorp expected to grow at an attractive rate?
  • 1st Constitution Bancorp's earnings growth is expected to exceed the low risk savings rate of 3%.
Growth vs Market Checks
  • 1st Constitution Bancorp's earnings growth is expected to exceed the United States of America market average.
  • 1st Constitution Bancorp's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGM:FCCY Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGM:FCCY Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 18.9%
NasdaqGM:FCCY Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 8.4%
United States of America Banks Industry Earnings Growth Rate Market Cap Weighted Average 8.8%
United States of America Banks Industry Revenue Growth Rate Market Cap Weighted Average 5.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 16%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGM:FCCY Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGM:FCCY Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 59 14 1
2019-12-31 55 13 2
2018-12-31 51 11 2
NasdaqGM:FCCY Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-06-30 47 16 8
2018-03-31 45 16 8
2017-12-31 44 22 7
2017-09-30 43 14 8
2017-06-30 42 11 9
2017-03-31 41 7 9
2016-12-31 41 2 9
2016-09-30 40 8 9
2016-06-30 40 17 9
2016-03-31 42 24 9
2015-12-31 40 16 9
2015-09-30 43 19 9

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • 1st Constitution Bancorp's earnings are expected to grow by 18.9% yearly, however this is not considered high growth (20% yearly).
  • 1st Constitution Bancorp's revenue is expected to grow by 8.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGM:FCCY Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from 1st Constitution Bancorp Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:FCCY Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 1.60 1.60 1.60 1.00
2019-12-31 1.50 1.50 1.50 2.00
2018-12-31 1.30 1.31 1.28 2.00
NasdaqGM:FCCY Past Financials Data
Date (Data in USD Millions) EPS *
2018-06-30 0.96
2018-03-31 0.97
2017-12-31 0.86
2017-09-30 1.05
2017-06-30 1.08
2017-03-31 1.13
2016-12-31 1.17
2016-09-30 1.11
2016-06-30 1.09
2016-03-31 1.09
2015-12-31 1.10
2015-09-30 1.15

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • 1st Constitution Bancorp is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess 1st Constitution Bancorp's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
1st Constitution Bancorp has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

FCCY Past Performance

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

  • 1st Constitution Bancorp's last earnings update was 183 days ago.
The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare 1st Constitution Bancorp's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 1st Constitution Bancorp's year on year earnings growth rate has been positive over the past 5 years.
  • 1st Constitution Bancorp's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • 1st Constitution Bancorp's 1-year earnings growth is negative, it can't be compared to the US Banks industry average.
Earnings and Revenue History
1st Constitution Bancorp's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from 1st Constitution Bancorp Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:FCCY Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-06-30 46.76 7.78 24.24
2018-03-31 44.56 7.83 23.70
2017-12-31 43.68 6.93 23.51
2017-09-30 42.84 8.41 23.19
2017-06-30 42.30 8.62 21.89
2017-03-31 41.35 9.01 21.48
2016-12-31 41.20 9.29 21.30
2016-09-30 39.68 8.86 21.14
2016-06-30 39.90 8.63 22.31
2016-03-31 41.81 8.63 22.65
2015-12-31 40.17 8.66 20.44
2015-09-30 42.98 9.05 23.35
2015-06-30 41.77 8.73 22.77
2015-03-31 35.91 5.97 21.85
2014-12-31 33.77 4.36 20.93
2014-09-30 30.19 3.71 19.09
2014-06-30 27.79 3.10 17.98
2014-03-31 29.59 5.10 17.11
2013-12-31 29.49 5.78 16.69
2013-09-30 30.93 5.65 16.69
2013-06-30 31.61 5.48 16.53
2013-03-31 31.54 5.22 16.55
2012-12-31 30.80 5.06 16.15
2012-09-30 29.22 4.92 15.76
2012-06-30 27.62 4.78 15.75
2012-03-31 26.43 4.31 15.46
2011-12-31 25.03 3.93 14.97
2011-09-30 24.67 3.27 14.75

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • 1st Constitution Bancorp has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • 1st Constitution Bancorp used its assets less efficiently than the US Banks industry average last year based on Return on Assets.
  • 1st Constitution Bancorp has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess 1st Constitution Bancorp's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
1st Constitution Bancorp has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

FCCY Health

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

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of 1st Constitution Bancorp's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from 1st Constitution Bancorp Company Filings, last reported 2 months ago.

NasdaqGM:FCCY Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-06-30 120.35 136.78 30.65
2018-03-31 113.23 48.38 16.00
2017-12-31 111.65 39.06 18.75
2017-09-30 111.61 81.58 15.66
2017-06-30 108.85 92.38 14.21
2017-03-31 106.64 28.56 47.91
2016-12-31 104.80 91.61 14.89
2016-09-30 103.95 115.66 16.95
2016-06-30 101.63 168.42 13.65
2016-03-31 98.64 38.81 14.81
2015-12-31 95.96 77.45 11.37
2015-09-30 94.43 83.74 14.87
2015-06-30 91.53 149.29 16.36
2015-03-31 89.53 106.28 11.77
2014-12-31 87.11 43.66 14.55
2014-09-30 84.48 39.36 20.37
2014-06-30 81.67 78.45 23.15
2014-03-31 81.26 39.54 108.92
2013-12-31 68.36 28.56 69.28
2013-09-30 67.15 28.56 123.82
2013-06-30 65.28 28.56 110.11
2013-03-31 66.11 28.56 101.44
2012-12-31 65.05 60.96 14.04
2012-09-30 59.74 69.71 14.00
2012-06-30 57.67 43.86 16.58
2012-03-31 56.34 28.56 27.16
2011-12-31 55.00 106.86 15.20
2011-09-30 54.25 37.56 14.44
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • 1st Constitution Bancorp has an acceptable proportion of non-loan assets held.
  • 1st Constitution Bancorp's liabilities are made up of primarily low risk sources of funding.
  • Loans at 1st Constitution Bancorp are broadly funded by customer deposits.
  • 1st Constitution Bancorp's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • 1st Constitution Bancorp has a low allowance for bad loans.
  • 1st Constitution Bancorp has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess 1st Constitution Bancorp's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. 1st Constitution Bancorp has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

FCCY Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.16%
Current annual income from 1st Constitution Bancorp dividends. Estimated to be 1.27% next year.
If you bought $2,000 of 1st Constitution Bancorp shares you are expected to receive $23 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 1st Constitution Bancorp's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.36%).
  • 1st Constitution Bancorp's dividend is below the markets top 25% of dividend payers in United States of America (3.72%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGM:FCCY Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
United States of America Banks Industry Average Dividend Yield Market Cap Weighted Average of 489 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2649 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGM:FCCY Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 0.28 1.00
2019-12-31 0.28 2.00
2018-12-31 0.24 2.00
NasdaqGM:FCCY Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-08-08 0.240 1.123
2018-07-20 0.240 1.089
2018-05-08 0.240 1.112
2018-04-20 0.240 1.106
2018-03-19 0.240 1.126
2018-02-02 0.240 1.234
2017-10-26 0.240 1.306
2017-06-23 0.200 1.145
2017-03-17 0.200 1.133
2016-12-16 0.200 1.106
2016-09-16 0.200 1.408

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, 1st Constitution Bancorp has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but 1st Constitution Bancorp only paid a dividend in the past 2 years.
Current Payout to shareholders
What portion of 1st Constitution Bancorp's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (5.5x coverage).
X
Income/ dividend checks
We assess 1st Constitution Bancorp's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can 1st Constitution Bancorp afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. 1st Constitution Bancorp has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

FCCY Management

 What is the CEO of 1st Constitution Bancorp's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Robert Mangano, image provided by Google.
Robert Mangano
COMPENSATION $1,487,675
AGE 72
CEO Bio

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 Englewood Hospital & Medical Center and EHS. Mr. Mangano served as the Chief Financial Officer of First Constitution Bancorp. He joined 1st Constitution Bank in 1996. He served as the President and Chief Executive Officer of Urban National Bank, a community bank in the northern part of New Jersey for a period of three years and a Senior Vice President of another bank for one year. He served at the Midlantic Corporation for 21 years. Mr. Mangano has been a Director of 1st Constitution Bancorp since 1999. He serves as a Director of 1st Constitution Bank. Mr. Mangano serves on the Executive Board of the George Washington Council of the Boy Scouts of America and served as Treasurer of the John Harms Theater. He serves as Vice Chairman of the Board of the Hospital and serves as a Director of the Englewood Hospital Medical Center. He serves as Trustee of Englewood Hospital & Medical Center and EHS.

CEO Compensation
  • Robert's compensation has been consistent with company performance over the past year.
  • Robert's compensation is higher than average for a company of this size and profit level.
Management Team Tenure

Average tenure and age of the 1st Constitution Bancorp management team in years:

4.2
Average Tenure
66
Average Age
  • The tenure for the 1st Constitution Bancorp management team is about average.
Management Team

Robert Mangano

TITLE
President
COMPENSATION
$1M
AGE
72

Steve Gilhooly

TITLE
Senior VP
COMPENSATION
$315K
AGE
66
TENURE
4.4 yrs

John Andreacio

TITLE
Executive VP and Chief Lending & Credit Officer
COMPENSATION
$532K
AGE
55
TENURE
4 yrs

Bill Rue

TITLE
Corporate Secretary & Director
COMPENSATION
$29K
AGE
70

Nick Naqvi

TITLE
Senior VP & Chief Accounting Officer
AGE
61
TENURE
0.3 yrs

Dorine Nicol

TITLE
Senior VP & Human Resources Director of 1st Constitution Bank
TENURE
15 yrs
Board of Directors Tenure

Average tenure and age of the 1st Constitution Bancorp board of directors in years:

2.3
Average Tenure
69
Average Age
  • The average tenure for the 1st Constitution Bancorp board of directors is less than 3 years, this suggests a new board.
Board of Directors

Charles Crow

TITLE
Chairman of the Board
COMPENSATION
$53K
AGE
68
TENURE
13.5 yrs

Robert Mangano

TITLE
President
COMPENSATION
$1M
AGE
72
TENURE
19.6 yrs

Bill Rue

TITLE
Corporate Secretary & Director
COMPENSATION
$29K
AGE
70
TENURE
7.7 yrs

Edwin Pisani

TITLE
Director
COMPENSATION
$41K
AGE
68
TENURE
2.3 yrs

James Aaron

TITLE
Director
COMPENSATION
$33K
AGE
73
TENURE
2.3 yrs

J. Cannon

TITLE
Director
COMPENSATION
$26K
AGE
71
TENURE
2.3 yrs

Antonio Cruz

TITLE
Director
COMPENSATION
$32K
AGE
62
TENURE
2.3 yrs

Roy Tartaglia

TITLE
Director
COMPENSATION
$35K
AGE
67
TENURE
2.3 yrs

Carmen Penta

TITLE
Director
COMPENSATION
$29K
AGE
74
TENURE
1.7 yrs

Bill Barrett

TITLE
Director
AGE
62
TENURE
1.5 yrs
Recent Insider Trading
  • More shares have been bought than sold by 1st Constitution Bancorp insiders in the past 3 months.
Who owns this company?
X
Management checks
We assess 1st Constitution Bancorp's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of market cap)? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 1st Constitution Bancorp has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

FCCY News

External News
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Simply Wall St News

Should You Buy 1st Constitution Bancorp (NASDAQ:FCCY) For Its Dividend?

1st Constitution Bancorp (NASDAQ:FCCY) has recently paid dividends to shareholders, and currently yields 1.1%. … Does 1st Constitution Bancorp tick all the boxes of a great dividend stock? … Check out our latest analysis for 1st Constitution Bancorp

Simply Wall St -

Three Key Risks For 1st Constitution Bancorp (NASDAQ:FCCY) You Should Know

As a small-cap bank with a market capitalisation of US$183.93m, 1st Constitution Bancorp’s (NASDAQ:FCCY) profit and value are directly affected by economic activity. … Risk associate with repayment is measured by the level of bad debt which is an expense written off 1st Constitution Bancorp’s bottom line. … Looking through a risk-lens is a useful way to assess the attractiveness of 1st Constitution Bancorp's a stock investment.

Simply Wall St -

Is It Too Late To Buy 1st Constitution Bancorp (NASDAQ:FCCY) At Its July Price?

Looking at 1st Constitution Bancorp’s (NASDAQ:FCCY) fundamentals some investors are wondering if its last closing price of $22.35 represents a good value for money for this high growth stock. … Where's the growth. … One reason why investors are attracted to FCCY is the high growth potential in the near future

Simply Wall St -

Understated Factors To Consider Before Investing In 1st Constitution Bancorp (NASDAQ:FCCY)

As a small-cap finance stock with a market capitalisation of US$181.07m, the risk and profitability of 1st Constitution Bancorp (NASDAQ:FCCY) are largely tied to the underlying economic growth of the region it operates in US. … After the Financial Crisis in 2008, a set of reforms called Basel III was created with the purpose of strengthening regulation, risk management and supervision in the banking sector. … Today we will be measuring 1st Constitution Bancorp’s financial risk position by looking at three leverage and liquidity metrics.

Simply Wall St -

What You Must Know About 1st Constitution Bancorp's (NASDAQ:FCCY) 6.92% ROE

and looking to gauge the potential return on investment in 1st Constitution Bancorp (NASDAQ:FCCY). … With an ROE of 6.92%, 1st Constitution Bancorp (NASDAQ:FCCY) returned in-line to its own industry which delivered 8.45% over the past year. … But what is more interesting is whether FCCY can sustain or improve on this level of return

Simply Wall St -

Why 1st Constitution Bancorp (NASDAQ:FCCY) Is An Attractive Investment

Attractive stocks have exceptional fundamentals. … In the case of 1st Constitution Bancorp (NASDAQ:FCCY), there's. … Below, I've touched on some key aspects you should know on a high level.

Simply Wall St -

With An ROE Of 6.92%, Has 1st Constitution Bancorp's (NASDAQ:FCCY) Management Done Well?

View our latest analysis for 1st Constitution Bancorp What you must know about ROE Firstly, Return on Equity, or ROE, is simply the percentage of last years’ earning against the book value of shareholders’ equity. … For now, let’s just look at the cost of equity number for 1st Constitution Bancorp, which is 9.92%. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NasdaqGM:FCCY Last Perf May 6th 18 Basically, profit margin measures how much of revenue trickles down into earnings which illustrates how efficient the business is with its cost management.

Simply Wall St -

Should You Buy 1st Constitution Bancorp (NASDAQ:FCCY) Now?

1st Constitution Bancorp (NASDAQ:FCCY), operating in the financial services industry based in United States, saw a double-digit share price rise of over 10% in the past couple of months on the NasdaqGM. … This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again. … FCCY’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value.

Simply Wall St -

Are You Considering All The Risks For 1st Constitution Bancorp’s (NASDAQ:FCCY)?

Risk associate with repayment is measured by the level of bad debt which is an expense written off 1st Constitution Bancorp’s bottom line. … 1st Constitution Bancorp’s ability to forecast and provision for its bad loans indicates it has a good understanding of the level of risk it is taking on. … This may mean the bank is too cautious with its level of its safer form of borrowing and has plenty of headroom to take on risker forms of liability.Next Steps: 1st Constitution Bancorp shows prudent management of risky assets and lending behaviour.

Simply Wall St -

Should You Be Concerned About 1st Constitution Bancorp’s (NASDAQ:FCCY) Liquidity?

A low level of leverage subjects a bank to less risk and enhances its ability to pay back its debtors. … This means the bank has a sensibly high level of equity compared to the level of debt it has taken on to maintain operations which places it in a strong position to pay back its debt in unforeseen circumstances. … Compared to the appropriate industry loan to deposit level of 90%, 1st Constitution Bancorp’s ratio of over 87.86% is sensibly lower and within the safe margin, which places the bank in a relatively safe liquidity position given it has not excessively lent out its deposits and has maintained a suitable level for compliance.Conclusion The bank’s prudent management of its risk levels is reflected in its sensible leverage and liquidity ratios.

Simply Wall St -

FCCY Company Info

Map
Description

1st Constitution Bancorp operates as the bank holding company for 1st Constitution Bank that provides commercial and retail banking services in the central and northeastern New Jersey areas. The company offers deposit products, including interest bearing demand deposits, such as interest-bearing checking accounts, money market accounts, and NOW 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, 2017, the company operated through 17 branch offices, as well as 2 residential mortgage loan production offices in New Jersey. 1st Constitution Bancorp was founded in 1989 and is based in Cranbury, New Jersey.

Details
Name: 1st Constitution Bancorp
FCCY
Exchange: NasdaqGM
Founded: 1989
$171,776,511
8,379,342
Website: http://www.1stconstitution.com
Address: 1st Constitution Bancorp
2650 Route 130,
PO Box 634,
Cranbury,
New Jersey, 08512,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGM FCCY Common Stock Nasdaq Global Market US USD 23. Sep 1997
DB 1JB Common Stock Deutsche Boerse AG DE EUR 23. Sep 1997
Number of employees
Current staff
Staff numbers
181
1st Constitution Bancorp employees.
Industry
Regional Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/09/18 21:04
End of day share price update: 2018/09/18 00:00
Last estimates confirmation: 2018/07/23
Last earnings update: 2018/06/30
Last annual earnings update: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.