1ST CONSTITUTION BANCORP
CONSOLIDATED STATEMENTS OF INCOME
For the Years Ended December 31, 2008 and 2007 
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
     Securities sold under
          agreements to repurchase
                and other borrowed funds 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

Deposits at FDIC insured institutions are now insured up to at least $250,000 per depositor through December 31, 2013. On January 1, 2014 the standard insurance amount will return to $100,000 per depositor for all account categories except for IRA's and other certain retirement accounts will remain at $250,000. (This supersedes the October 2, 2008 changes.) 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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IMPORTANT INFORMATION ABOUT PROCEDURES

FOR OPENING A NEW ACCOUNT

To help the government fight the funding of terrorism and money laundering activities, Federal Law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account.

What this means to you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.