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All 36 S&P 500 Buffer ETFs from Innovator have successfully rebalanced and reset at least once

Defined Outcome ETFs seek to provide S&P 500 exposure up to a cap, with downside buffer levels of 9%, 15% or 30% over one-year Outcome Period

CHICAGO, May 03, 2021 (GLOBE NEWSWIRE) — Innovator Capital Management, LLC (Innovator) today announced the upside caps and return profiles for the May series of the S&P 500 Buffer ETFs™ – Innovator S&P 500 Buffer ETF™ – May (BMAY), Innovator S&P 500 Power Buffer ETF™ – May (PMAY) and Innovator S&P 500 Ultra Buffer ETF™ – May (UMAY) – which completed their first outcome period and reset at the end of the month. The May ETFs were the final series of the S&P 500 Buffer ETF™ suite to list in 2020, completing monthly issuance of Innovator’s flagship Defined Outcome ETF™ lineup.

The 36 total ETFs, which now have all successfully rebalanced at least once, provide investors with upside participation, to a cap, in Large-cap U.S. stocks via options on the S&P 500 with buffers against market losses of 9%, 15% or 30% over one year periods. The return profiles for the three ETFs in the May S&P 500 Buffer ETF™ series will span the year from today to April 30^th, 2022.

Return profiles for the Innovator S&P 500 Buffer ETFs
™
– May Series, as of 5/03/2021

Ticker	Name	Buffer Level		Caps*		Outcome Period
BMAY	Innovator S&P 500 Buffer ETF™ – May	9.00%		13.60%		12 months 5/01/21 – 4/30/22
PMAY	Innovator S&P 500 Power Buffer ETF™ – May	15.00%		8.62%		12 months 5/01/21 – 4/30/22
UMAY	Innovator S&P 500 Ultra Buffer ETF™ – May	30.00% (-5% to -35%)		6.60%		12 months 5/01/21 – 4/30/22

* The Caps above are shown gross of the 0.79% management fee for each ETF. “Cap” refers to the
maximum potential return, before fees and expenses and any shareholder transaction fees and any extraordinary expenses, if held over the full Outcome Period. “Buffer” refers to the amount of downside protection the fund seeks to provide, before fees and expenses, over the full Outcome Period. Outcome Period is the intended length of time over which the defined outcomes are sought. Upon commencement of the Outcome Period, the Caps can be found on a daily basis via www.innovatoretfs.com.

The May Series of the S&P 500 Buffer ETFs reset with large-cap U.S. stocks continuing to reach new records after an extended period of higher-than-average volatility and a historic rally over the past year. Though a significant contingent (67%) of 152 advisors polled by Barron’s for their semi-annual Big Money Poll, published April 26^th, describe themselves as “bullish”, those advisors see the S&P 500 Index trading basically flat at 4207 at the end of 2021 and at 4341, about 5% higher than its current level, by the end of June 2022. This highlights the lower upside, range-bound expectations that advisors who are optimistic about equities have for domestic stocks on average and reflects their belief that volatility will persist and increase from current levels¹ as the market remains sensitive to monetary policy blunders, tax policy changes, inflation, coronavirus variants and global Covid-19 surges, as well as rising rates. Self-proclaimed “bears” see the S&P 500 trading at 3721 at the end of the year and, similarly, 3723 at the end of June 2022.

“Advisors face a conundrum investing money for risk-averse clients today,” said Bruce Bond, CEO of Innovator ETFs. “Equities are at record highs and bonds don’t pay you much, yet they pack on interest rate risk. Strategists remind us that synchronized monetary and fiscal stimulus could keep the party going but many worry about what could be around the corner after such an impressive run. With 40% of advisors calling the U.S. stock market overvalued, according to the latest Barron’s Big Money Poll, and 65% of those professionals saying it is overvalued by at least 11%, we are finding that many fiduciaries are seeking the comfort of a known buffer against potential market losses over the coming year and the knowledge of a set level of upside participation in the event that stocks continue to climb.”

If held for the full outcome period, Innovator’s Defined Outcome S&P 500 Buffer ETFs – May Series can potentially help advisors capture the gains within the Bull scenario outlined in the Barron’s poll but also provide buffers against a significant portion of the downside forecast in their outlined Bear case, all while decreasing volatility, beta and drawdowns relative to the S&P 500 during the outcome period.

The ETFs reset annually and can be held indefinitely. For additional information, visit the Innovator Defined Outcome ETF Pricing Tool.

Innovator Defined Outcome ETFs – Benefits to Advisors

• Pioneer and creator of Defined Outcome ETFs™ with 65 ETFs and almost $4.4 billion AUM across family²
• Tax-efficient exposure to five broad equity benchmarks (S&P 500, NASDAQ-100, Russell 2000, MSCI EAFE, MSCI EM), the 20+ Year U.S. Treasury Market and now including the Stacker ETFs, the world’s first ETFs to offer a “stacked” exposure to two or three benchmark equity index ETFs on the upside, to a cap, with downside exposure to the S&P 500 only, and the Accelerated ETFs™, the world’s first ETFs to seek to offer a multiple of the upside return of a reference asset, up to a cap, with approximately single exposure on the downside.
• Monthly issuance on the S&P 500 with three buffer levels (9,15, or 30%)

Innovator’s Defined Outcome ETFs™ are the subject of a patent application filed with the U.S. Patent and Trademark Office.

In 2021, starting with the January series, Innovator will be transitioning reference assets of the underlying options within its Defined Outcome Equity Buffer ETFs™ to achieve the stated outcomes with ETF-based, or fund-based, options rather than index-based options. Innovator’s Equity Buffer ETFs™ have traditionally used index-based options while the Defined Outcome Bond ETFs and Stacker ETFs™ have been constructed using fund-based options. This change is intended to streamline market making and increase the operational efficiencies of the tax-efficient Buffer ETFs™ and will not materially impact shareholders. The Buffer ETFs™ will continue to draw from the same deeply liquid options markets pools that underpin the strategies, the level of the upside caps achieved should be unaffected and no tax event will be triggered given the options can be transferred in-kind. “These operational changes are intended to harness the power and efficiencies of the ETF wrapper even further for the benefit of our Defined Outcome Buffer ETF™ investors,” stated Bond.

The Funds have characteristics unlike many other traditional investment products and may not be suitable for all investors. For more information regarding whether an investment in the Fund is right for you, please see “Investor Suitability” in the prospectus.

About Innovator Defined Outcome ETFs™
Defined Outcome ETFs™ are the world’s first ETFs that seek to provide investors with known ranges of future investment outcomes prior to investing. These outcome ranges include multiple and single upside exposure, to a cap, with defined levels of downside risk with buffers and floors over a set amount of time. The Innovator Defined Outcome ETFs™ cover a large spectrum of domestic and international equities and bonds. Innovator’s category-creating Defined Outcome ETF™ family includes Buffer ETFs™, Stacker ETFs™ and Floor ETFs™. 

The Buffer ETFs™ seek to provide the upside performance of broadly recognized benchmarks (e.g., S&P 500, NASDAQ-100, Russell 2000, MSCI EAFE, and MSCI Emerging Markets, as well as the iShares 20+ Year Treasury Bond ETF (TLT)) to a cap, with built-in buffers, over an outcome period of one year. The ETFs reset annually and can be held indefinitely.

Each Buffer ETF™ in Innovator’s Defined Outcome ETF™ suite seeks to provide a defined exposure to a broad market benchmark where the downside buffer level, upside growth potential to a cap, and Outcome Period are all known, prior to investing. In 2019, Innovator began expanding its suite of S&P 500 Buffer ETFs™ into a monthly series to provide investors more opportunities to purchase shares as close to the beginning of their respective Outcome Periods as possible.

Investors can purchase shares of a previously listed Defined Outcome ETF™ throughout the entire Outcome Period, obtaining a current set of defined outcome parameters, which are disclosed daily through a web tool available at: http://innovatoretfs.com/define.

Innovator is focused on delivering defined outcome-based solutions inside the benefit-rich ETF wrapper, retaining many of the features that have contributed to the success of structured products³ (e.g., downside buffer levels, upside participation, defined outcome parameters), but with the added benefits of transparency, liquidity, the elimination of credit risk and lower costs afforded by the ETF structure.

About Innovator Capital Management, LLC

Awarded ETF.com’s “ETF Issuer of the Year – 2019”, Innovator Capital Management LLC (Innovator) is an SEC-registered investment advisor (RIA) based in Wheaton, IL. Formed in 2014, the firm is currently headed by ETF visionaries Bruce Bond and John Southard, founders of one of the largest ETF providers in the world. Bond and Southard reentered the asset management industry to bring to market first-of-their-kind investment opportunities, including the Defined Outcome ETFs™, products that they felt would change the investing landscape and bring more certainty to the financial planning process. Innovator’s category-creating Defined Outcome ETF™ family includes Buffer ETFs™, Stacker ETFs™ and Floor ETFs. Buffer ETFs™ and Floor ETFs™ seek to provide investors structured exposures to broad markets, where the upside growth potential, buffer or floor against the downside, and outcome period are all known, prior to investing. Stacker ETFs™ are the world’s first ETFs to offer a multiple or “stacked” exposure to two or three benchmark index ETFs (SPY, QQQ, IWM) to a cap, with only downside exposure to the SPY over a one year outcome period. Having launched the first Defined Outcome ETFs™ in 2018 — the flagship Innovator S&P 500 Buffer ETF™ Suite – Innovator’s solutions allow advisors to construct diversified portfolios with known outcome ranges to aid in risk management and financial planning. Built on a foundation of innovation and driven by a commitment to help investors better control their financial outcomes, Innovator is leading the Defined Outcome ETF Revolution™. For additional information, visit www.innovatoretfs.com.

About Cboe Global Markets, Inc.
Cboe Global Markets (Cboe: CBOE) is one of the world’s largest exchange-holding companies, offering cutting-edge trading and investment solutions to investors around the world. For more information, visit www.cboe.com.

About Milliman Financial Risk Management LLC

Milliman Financial Risk Management LLC (Milliman FRM) is a global leader in financial risk management to the retirement industry, providing investment advisory, hedging, and consulting services on approximately $150 billion in global assets (as of December 31, 2020). Milliman FRM is one of the largest and fastest-growing subadvisors of ETFs. For more information about Milliman FRM, visit www.Milliman.com/FRM.

Media Contact

Paul Damon
+1 (802) 999-5526
[email protected]

Interim Period Shareholders

Unlike structured notes, which offer limited liquidity, Innovator Defined Outcome ETFs™ trade throughout the day on an exchange, like a stock. As a result, investors purchasing shares of a Fund after its launch date may achieve a different payoff profile than those who entered the Fund on day one. Innovator recognizes this as a benefit of the Funds and provides a web-based tool that allows investors to know, in real-time throughout the trading day, their potential defined outcome return profile before they invest, based on the current ETF price and the Outcome Period remaining. Innovator’s web tool can be accessed at http://www.innovatoretfs.com/define.

Although each Fund seeks to achieve the defined outcomes stated in its investment objective, there is no guarantee that it will do so. The returns that the Funds seek to provide do not include the costs associated with purchasing shares of the Fund and certain expenses incurred by the Fund.

Investing involves risks. Loss of principal is possible. The Funds face numerous market trading risks, including active markets risk, authorized participation concentration risk, buffered loss risk, cap change risk, capped upside return risk, correlation risk, liquidity risk, management risk, market maker risk, market risk, non-diversification risk, operation risk, options risk, trading issues risk, upside participation risk and valuation risk. For a detail list of fund risks see the prospectus.

Market Disruptions Resulting from COVID-19. The outbreak of COVID-19 has negatively affected the worldwide economy, individual countries, individual companies and the market in general. The future impact of COVID-19 is currently unknown, and it may exacerbate other risks that apply to the Fund.

Foreign and Emerging Markets Risk Non-U.S. securities and Emerging Markets are subject to higher volatility than securities of domestic issuers due to possible adverse political, social or economic developments, restrictions on foreign investment or exchange of securities, lack of liquidity, currency exchange rates, excessive taxation, government seizure of assets, different legal or accounting standards, and less government supervision and regulation of securities exchanges in foreign countries.

Technology Sector Risk Companies in the technology sector are often smaller and can be characterized by relatively higher volatility in price performance when compared to other economic sectors. They can face intense competition, which may have an adverse effect on profit margins.

Small-Cap Risk Small-cap companies may be more volatile and susceptible to adverse developments than their mid- and large-cap counterpart. In addition, the small-cap companies may be less liquid than larger companies.

FLEX Options Risk The Fund will utilize FLEX Options issued and guaranteed for settlement by the Options Clearing Corporation (OCC). In the unlikely event that the OCC becomes insolvent or is otherwise unable to meet its settlement obligations, the Fund could suffer significant losses. Additionally, FLEX Options may be less liquid than standard options. In a less liquid market for the FLEX Options, the Fund may have difficulty closing out certain FLEX Options positions at desired times and prices. The values of FLEX Options do not increase or decrease at the same rate as the reference asset and may vary due to factors other than the price of reference asset.

These Funds are designed to provide point-to-point exposure to the price return of the Reference Asset via a basket of Flex Options. As a result, the ETFs are not expected to move directly in line with the Reference Asset during the interim period.

Investors purchasing shares after an outcome period has begun may experience very different results than funds’ investment objective. Initial outcome periods are approximately 1-year beginning on the funds’ inception date. Following the initial outcome period, each subsequent outcome period will begin on the first day of the month the fund was incepted. After the conclusion of an outcome period, another will begin.

Fund shareholders are subject to an upside return cap (the “Cap”) that represents the maximum percentage return an investor can achieve from an investment in the funds’ for the Outcome Period, before fees and expenses. If the Outcome Period has begun and the Fund has increased in value to a level near to the Cap, an investor purchasing at that price has little or no ability to achieve gains but remains vulnerable to downside risks. Additionally, the Cap may rise or fall from one Outcome Period to the next. The Cap, and the Fund’s position relative to it, should be considered before investing in the Fund. The Funds’ website, www.innovatoretfs.com, provides important Fund information as well information relating to the potential outcomes of an investment in a Fund on a daily basis.

The Funds with buffer mechanisms only seek to provide shareholders that hold shares for the entire Outcome Period with their respective buffer level against Reference Asset losses during the Outcome Period. You will bear all Reference Asset losses exceeding 9, 15 or 30%. Depending upon market conditions at the time of purchase, a shareholder that purchases shares after the Outcome Period has begun may also lose their entire investment. For instance, if the Outcome Period has begun and the Fund has decreased in value beyond the pre-determined buffer, an investor purchasing shares at that price may not benefit from the buffer. Similarly, if the Outcome Period has begun and the Fund has increased in value, an investor purchasing shares at that price may not benefit from the buffer until the Fund’s value has decreased to its value at the commencement of the Outcome Period.

THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT(S).

Cboe Global Markets, Inc., and its affiliates do not recommend or make any representation as to possible Benefits from any securities, futures or investments, or third-party products or services. Cboe Global Markets, Inc., is not affiliated with S&P DJI, Milliman, or Innovator Capital Management. Investors should undertake their own due diligence regarding their securities, futures and investment practices.

Cboe Global Markets, Inc., and its affiliates make no warranty, expressed or implied, including, without limitation, any warranties as of merchantability, fitness for a particular purpose, accuracy, completeness or timeliness, or as to the results to be obtained by recipients of the products.

* ETF.com’s editorial team chose the finalists and then the ETF.com Awards Selection Committee, an independent panel comprised of fifteen of the ETF industry’s leading analysts, consultants and investors, decided the winners.

Innovator ETFs™, Defined Outcome ETF™, Buffer ETF™, Enhanced ETF™, Define Your Future™, Leading the Defined Outcome ETF Revolution™ and other service marks and trademarks related to these marks are the exclusive property of Innovator Capital Management, LLC.

The Funds’ investment objectives, risks, charges and expenses should be considered before investing. The prospectus contains this and other important information, and it may be obtained at innovatoretfs.com. Read it carefully before investing.

Innovator ETFs are distributed by Foreside Fund Services, LLC.

Copyright © 2021 Innovator Capital Management, LLC.

800.208.5212        

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¹ The Big Money poll found the average of the 152 advisors’ expectations for the VIX to be at 21.59 at the end of 2021, up from under 20 as of the end of April.

² AUM in all Innovator Defined Outcome ETFs as of 4.30.2021.

³ Structured notes and structured annuities are financial instruments designed and created to afford investors exposure to an underlying asset through a derivative contract. It is important to note that these ETFs are not structured notes or structured annuities.

COS COB, Conn., May 03, 2021 (GLOBE NEWSWIRE) — Chicken Soup for the Soul Entertainment, Inc. (Nasdaq: CSSE), one of the leading operators of streaming advertising-supported video-on-demand (AVOD) networks, today announced at the 2021 NewFronts the formation of Halcyon Television. The company will launch Halcyon Television, a high-end premium scripted television studio led by David Ellender as CEO upon the closing of the Sonar asset acquisition that was announced on April 9^th, 2020. The closing on the 1,300 title television and film library, scripted development portfolio and the existing TV series drama production is expected to occur in the near future.

“The formation of Halcyon Television will help accelerate our company’s strategy to build the leading independent AVOD network in three ways. It will expand our original content development pipeline with high-end content, increase our IP rights ownership and provide a faster path to growing our international TV production and distribution activities,” said William J. Rouhana Jr, CEO of Chicken Soup for the Soul Entertainment.   

Halcyon Television has a robust drama development pipeline of more than 20 projects embracing library based and original IP sourced in the U.S. and Europe. Halcyon Television will focus on development, financing and production in the U.S. as well as forging creative partnerships in Europe with financing backed by the company and distribution by Halcyon Television’s sister affiliate Screen Media.

“We look forward to building a valued asset library for the company and creating a new vision for the future of TV while continuing the company’s mission of positive entertainment that lifts the human spirit,” said David Ellender, CEO of Halcyon Television. 

Joining Mr. Ellender at Halcyon Television will be Matt Loze as President – Scripted Entertainment, as the first of a number of executives from Sonar who will be brought to Halcyon Television. Mr. Loze added, “Halcyon Television seems a fitting name to highlight a new commitment to supporting artist’s visions in telling moving stories that resonate globally.” 

In addition to aggressively building from IP and library assets, the shared vision of Chicken Soup for the Soul Entertainment and Halcyon Television is to build a nimble and flexible company that will be additive strategically and creatively for partners across the fast-changing TV landscape.

ABOUT CHICKEN SOUP FOR THE SOUL ENTERTAINMENT

Chicken Soup for the Soul Entertainment, Inc. (Nasdaq: CSSE) operates streaming video-on-demand networks (VOD). The company owns Crackle Plus, which owns and operates a variety of ad-supported and subscription-based VOD networks including Crackle, Popcornflix, Popcornflix Kids, Truli, Pivotshare, Españolflix and FrightPix. The company also acquires and distributes video content through its Screen Media subsidiary and produces original long and short-form content through Landmark Studio Group, its Chicken Soup for the Soul Originals division and APlus.com. Chicken Soup for the Soul Entertainment is a subsidiary of Chicken Soup for the Soul, LLC, which publishes the famous book series and produces super-premium pet food under the Chicken Soup for the Soul brand name.

ABOUT HALCYON TELEVISION
Halcyon Television, LLC was created in 2020 by Chicken Soup for the Soul Entertainment, Inc. Led by industry veteran David Ellender, Halcyon Television creates high-end premium scripted television content. The content is distributed by sister affiliate Screen Media Ventures. Projects of Halcyon Television include “Hunters” on Amazon Prime and “Mysterious Benedicts Society” on Disney Plus. Chicken Soup for the Soul Entertainment, Inc. announced the signing of a definitive asset purchase agreement with Sonar Entertainment, Inc. and certain of its subsidiaries by press release on April 9, 2021 and filed with the SEC on that same date a Current Report on Form 8-K summarizing the terms of the proposed asset purchase.

FORWARD-LOOKING STATEMENTS

This press release includes forward-looking statements within the meaning of the federal securities laws. Forward-looking statements are statements that are not historical facts. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of management and are not predictions of actual performance. Forward-looking statements are subject to known and unknown risks and uncertainties, including but not limited to those risks set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. These forward-looking statements speak only as of the date hereof and the Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

INVESTOR RELATIONS
Taylor Krafchik
Ellipsis
[email protected]
(646) 776-0886

MEDIA CONTACT
Kate Barrette
RooneyPartners LLC
[email protected]
(212) 223-0561

CRANBURY, N.J., May 03, 2021 (GLOBE NEWSWIRE) — 1^ST Constitution Bancorp (NASDAQ: FCCY), the holding company (the “Company”) for 1^ST Constitution Bank (the “Bank”), today reported net income of $4.9 million and diluted earnings per share of $0.48 for the three months ended March 31, 2021 compared to net income of $3.4 million and diluted earnings per share of $0.33 for the three months ended March 31, 2020.

The Board of Directors declared a quarterly cash dividend of $0.10 per share of common stock, representing an increase of 11%, compared to the dividend of $0.09 per share of common stock paid on February 26, 2021. The dividend will be paid on May 28, 2021 to shareholders of record on May 14, 2021.

Robert F. Mangano, President and Chief Executive Officer, stated, “Our first quarter financial results reflect our strong operating fundamentals and the Company’s diversified lending platforms as our mortgage warehouse and residential mortgage banking lending operations continued to drive revenue and profitability. We maintained our focus on assisting customers with the SBA PPP lending programs, which resulted in the forgiveness of $34.4 million of existing PPP loans and the funding of $34.2 million of new PPP loans.”

Mr. Mangano added, “We observed improvement in economic conditions in our market in the first quarter of 2021 and anticipate further improvement in economic conditions due to the COVID-19 vaccines becoming more widely distributed and the potential easing of governmental restrictions. We continue to closely monitor the performance of our loan portfolio and believe it was appropriate to strengthen our allowance for loan losses during this period of continuing economic uncertainty caused by the pandemic. Despite the economic uncertainty, our asset quality was stable and only one commercial real estate loan was on deferral at the end of March.”

FIRST QUARTER 2021 HIGHLIGHTS

• Net income increased $1.5 million, or 44%, to $4.9 million as compared to the first quarter of 2020. Return on average total assets and return on average shareholders’ equity were 1.10% and 10.59%, respectively.
• Net interest income was $15.3 million and the net interest margin was 3.67% on a tax equivalent basis.
• A provision for loan losses of $1.4 million was recorded and net recoveries were $3,000.
• Total loans were $1.3 billion at March 31, 2021 and decreased $138.7 million from December 31, 2020. During the first quarter of 2021, mortgage warehouse lines decreased $120.8 million to $267.6 million at March 31, 2021, reflecting primarily a lower volume of funding of home purchase mortgages due to the seasonal nature of home purchases in the Bank’s market. Residential mortgage loans held in portfolio decreased $13.2 million due to sales and pay-offs of loans.
• Non-interest income increased $1.6 million for the first quarter of 2021, as residential mortgage banking operations originated $88.2 million of residential mortgages, sold $102.2 million of residential mortgages and recorded a $2.9 million gain on sales of loans.
• Non-performing assets were $15.4 million, or 0.85% of total assets at March 31, 2021, representing a decrease of $1.9 million from December 31, 2020 and included $48,000 of other real estate owned (“OREO”).

COVID-19 Impact and Response

As the Company conducts its daily operations, the health and safety of our employees and customers remains our primary concern and we continue to maintain the same measures and protective procedures that we implemented in 2020. In addition, the Company is providing paid time off to employees to obtain COVID-19 vaccinations.

During the first quarter of 2021, the Company continued working with customers impacted by the economic disruption. In addition, management increased the allowance for loan losses in response to the higher estimated incurred losses in the loan portfolio. Management may further adjust the provision and allowance for loan losses in response to changes in economic conditions and the performance of the loan portfolio in future periods.

To support our loan and deposit customers and the communities we serve:

• We continue to provide access to additional credit and forbearance on loan interest and or principal payments for up to 90 days where management has determined that it is warranted. As of March 31, 2021, all loans that had previously received deferrals were no longer deferred, except for two hotel loans that were placed on non-accrual in the second quarter of 2020 and one residential mortgage loan for $871,000 that was placed on non-accrual in the first quarter of 2021. One commercial real estate loan with a balance of $1.4 million received an additional deferral of principal payments up to 90 days in the first quarter of 2021.
• As a long-standing SBA preferred lender, we actively participated in the SBA’s PPP lending program established under the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”). In 2020, we funded 467 SBA PPP loans totaling $75.6 million, $50.2 million of which had been forgiven by the SBA through the end of the first quarter of 2021.
• The Economic Aid to Hard-Hit Small Business, Not for Profits and Venues Act (“Economic Aid Act”) was enacted in December 2020 in further response to the COVID-19 pandemic. Among other things, the Economic Aid Act provides relief to borrowers to access additional credit through the SBA’s PPP. We continue to actively participate in the PPP and have accepted 303 applications for PPP loans totaling $35.9 million through April 30, 2021. The SBA has approved 298 of such applications totaling $35.3 million of PPP loans, all of which have been funded.

Modification of Loans and Deferral of Payments

As of March 31, 2021, all commercial business, commercial real estate and consumer loans that had previously received deferrals in 2020 were no longer deferred and had made the contractually due payments, except for two hotel loans totaling $4.6 million that were placed on non-accrual in the third quarter of 2020 and one residential mortgage loan for $871,000 that was placed on non-accrual in the first quarter of 2021. One commercial real estate loan with a balance of $1.4 million received an additional deferral of principal payments up to 90 days in the first quarter of 2021.

Allowance for Loan Losses

Management reviewed the loan portfolio at March 31, 2021 in connection with the evaluation of the adequacy of the allowance for loan losses. As part of this review, management reviewed over 98% of the $132.1 million of commercial business and commercial real estate loans that had been modified to defer interest and or principal for up to 90 days in 2020 and 2021. Loans with balances of less than $250,000 were generally excluded from management’s review. As a result of management’s review of the loan portfolio at March 31, 2021, a provision for loan losses of $1.4 million was recorded for the first quarter of 2021 and the allowance for loan losses was increased to $17.0 million at March 31, 2021. The provision for loan losses reflected primarily a $1.7 million increase in specific reserves to $3.8 million for impaired loans.

At March 31, 2021, the allowance for loan losses included $649,000 for loans that were rated Pass-Watch and had received a deferral. This reflects management’s previously reported determination that “Pass-Watch” credit rated loans with modifications or deferrals suggest a weaker financial strength of the borrower than “Pass” credit rated loans, thereby warranting additional reserves for loan losses than would ordinarily be reserved for “Pass-Watch” credit rated loans.

Within the loan portfolio, hotel and restaurant-food service industries have been adversely impacted by the economic disruption caused by the COVID-19 pandemic. At March 31, 2021 loans to hotel and restaurant-food service industries were $67.8 million and $64.4 million, respectively. Management reviewed over 99% of the hotel loans and over 93% of the restaurant-food service loans.

All construction loans are closely monitored on a quarterly basis and are reviewed to assess the progress of construction relative to the plan and budget and lease-up or sales of units.

Management also reviewed loans to schools that are private educational institutions that are generally sponsored or affiliated with religious organizations. These loans totaled $24.6 million at March 31, 2021, and 98% of these loans were reviewed.

The expanded review also included $6.3 million, or over 40%, of commercial loans made under the SBA 7(a) loan program, totaling $15.5 million at March 31, 2021.

As a result of this first quarter of 2021 review, loans totaling $3.2 million and $871,000 were down-graded to “Special Mention” and “Substandard,” respectively. In addition, a $2.8 million shared national credit loan was down-graded to “Substandard.”

Discussion of Financial Results

Net income was $4.9 million, or $0.48 per diluted share, for the first quarter of 2021 compared to net income of $3.4 million, or $0.33 per diluted share, for the first quarter of 2020. For the three months ended March 31, 2021, net interest income increased $2.3 million compared to the three months ended March 31, 2020 driven primarily by the increase in the average balance of loans since March 31, 2020. Gain on sales of loans for the first quarter of 2021 increased $1.6 million compared to the first quarter of 2020 due primarily to the higher volume of residential mortgage loans sold. The provision for loan losses was $1.4 million for the first quarter of 2021 compared to $895,000 for the first quarter of 2020. This increase reflected management’s estimate of loan losses that were incurred due to the economic disruption caused by the COVID-19 pandemic and changes in the mix and risk factors of the loan portfolio. Non-interest expenses were $11.1 million for the first quarter of 2021, representing an increase of $1.3 million compared to $9.8 million for the first quarter of 2020.

Net interest income was $15.3 million for the first quarter of 2021 and increased $2.3 million compared to net interest income of $12.9 million for the first quarter of 2020. Total interest income was $17.0 million for the three months ended March 31, 2021 compared to $16.4 million for the three months ended March 31, 2020. The increase in total interest income was primarily due to a net increase of $170.6 million in average loans, reflecting growth in commercial real estate, mortgage warehouse and commercial business loans, including SBA PPP loans. Average interest-earning assets were $1.7 billion, with a tax-equivalent yield of 4.07%, for the first quarter of 2021 compared to average interest-earning assets of $1.4 billion, with a tax-equivalent yield of 4.66% for the first quarter of 2020. The tax-equivalent yield on average interest-earning assets for the first quarter of 2021 declined 59 basis points to 4.07%, due primarily to the decline in market interest rates during 2020 to a low level that continued through the first quarter of 2021 and the higher average balance of federal funds sold/short-term investments with a yield of 0.10%. The Federal Reserve reduced the targeted federal funds rate 150 basis points in March 2020 in response to the economic uncertainty resulting from the COVID-19 pandemic. As a result of the reductions in the targeted federal funds rate, the prime rate declined to 3.25% in March 2020 and was unchanged through the first quarter of 2021. The Bank had approximately $455.5 million of loans with an interest rate tied to the prime rate and approximately $49.3 million of loans with an interest rate tied to either 1- or 3-month LIBOR at March 31, 2021.

Interest expense on average interest-bearing liabilities was $1.7 million, with an interest cost of 0.59%, for the first quarter of 2021, compared to $2.0 million, with an interest cost of 0.65%, for the fourth quarter of 2020 and $3.5 million, with an interest cost of 1.30%, for the first quarter of 2020. Despite an increase of $94.7 million in average interest-bearing liabilities for the first quarter of 2021 compared to the first quarter of 2020, interest expense declined $1.8 million due largely to the decline in interest rates paid on deposits and the redeemable subordinated debentures as a direct result of the lower interest rate environment. The average cost of interest-bearing deposits was 0.57% for the first quarter of 2021, 0.64% for the fourth quarter of 2020 and 1.27% for the first quarter of 2020. The lower interest cost of interest-bearing deposits for the first quarter of 2021 compared to the first quarter of 2020 reflected primarily lower market interest rates since March 2020. The interest rates paid on deposits generally do not adjust quickly to rapid changes in market interest rates and decline over time in a falling interest rate environment. Of the total increase in average interest-bearing liabilities, money market and NOW accounts increased $56.9 million, savings accounts increased $89.3 million and certificates of deposit and short-term borrowings decreased $33.0 million and $18.6 million, respectively, for the first quarter of 2021. At March 31, 2021, there were $135.1 million of retail certificates of deposits with an average interest cost of 1.20% that mature within the following 12 months. Management will continue to monitor and adjust the interest rates paid on deposits to reflect the then current interest rate environment and competitive factors.

The net interest margin on a tax-equivalent basis was 3.67% for the first quarter of 2021 compared to 3.68% for the first quarter of 2020. The net interest margin for the first quarter of 2021 was negatively impacted by the higher average balance of federal funds sold/short-term investments resulting from the growth in the average balance of deposits. Interest income for the first quarter of 2021 included $398,000 of fee income related to PPP loans that were forgiven and paid-off by the SBA, $151,000 of interest income collected on a PCI commercial real estate loan that was paid-off and $50,000 of prepayment fees collected on commercial real estate loans that were paid-off. Excluding the effect of the higher average balance of federal funds sold/short-term investments, the net interest margin was approximately 3.95% for the first quarter of 2021.

The Company recorded a provision for loan losses of $1.4 million for the first quarter of 2021 compared to a provision for loan losses of $895,000 for the first quarter of 2020. The increase in the provision for loan losses in the first quarter of 2021 reflected primarily a $1.6 million increase in specific reserves on impaired loans. This provision also reflected changes in loan ratings and mix of the loan portfolio at March 31, 2021. At March 31, 2021, total loans were $1.3 billion and the allowance for loan losses was $17.0 million, or 1.32% of total loans, compared to total loans of $1.2 billion and an allowance for loan losses of $10.0 million, or 0.82% of total loans, at March 31, 2020. The allowance for loan losses, excluding the allocated reserve for mortgage warehouse lines, was $15.8 million, or 1.54% of total loans excluding mortgage warehouse lines at March 31, 2021. In addition, at March 31, 2021, there were $59.5 million of SBA PPP loans which are 100% guaranteed by the SBA and, accordingly, no reserve was provided.

Non-interest income was $4.1 million for the first quarter of 2021, representing an increase of $1.6 million, or 66.0%, compared to $2.5 million for the first quarter of 2020. The significant increase in non-interest income was driven primarily by a $1.6 million increase in gain on sales of loans. In the first quarter of 2021, residential mortgage banking operations originated $88.2 million of residential mortgages, sold $102.2 million of residential mortgages and recorded a $2.9 million gain on sales of loans compared to $73.4 million of residential mortgages originated, $34.0 million of residential mortgage loans sold and a $1.2 million gain on sales of loans recorded in the first quarter of 2020. The residential mortgage loan pipeline was $32.1 million at March 31, 2021. Management believes that the increase in residential mortgage loans originated and sold was due primarily to increased residential mortgage refinancing activity as a result of continued lower mortgage interest rates. In the first quarter of 2021, $1.8 million of SBA loans were sold and gains of $190,000 were recorded compared to $2.7 million of SBA loans sold and gains of $226,000 recorded in the first quarter of 2020. Service charges on deposit accounts decreased $96,000 for the first quarter of 2021 compared to the first quarter of 2020, due primarily to lower overdraft fees. Other income increased $105,000 in the first quarter of 2021 compared to the first quarter of 2020 due primarily to recoveries on PCI loans in excess of the fair value of the acquired loans.

Non-interest expenses were $11.1 million for the first quarter of 2021 and increased $1.3 million, or 13.4%, compared to $9.8 million for the first quarter of 2020. Salaries and employee benefits expense increased $783,000 or 12.7%, for the first quarter of 2021 compared to the first quarter of 2020 due primarily to a $729,000 increase in mortgage commissions resulting from significantly higher residential mortgage lending activity, $75,000 in temporary staffing costs and $171,000 in merit increases and increases in employee benefit expenses, which were partially offset by higher deferred loan origination expenses of approximately $180,000. Occupancy expense increased $141,000 in the first quarter of 2021 compared to the first quarter of 2020 primarily due to higher snow removal costs. FDIC insurance expense increased $236,000 due to the growth of assets, a credit of $106,000 from the FDIC related to the fourth quarter of 2019 assessment and a higher FDIC assessment rate in the first quarter of 2021 compared to the assessment rate in the first quarter of 2020. Other operating expenses increased $68,000, or 3.5%, for the first quarter of 2021 compared to the first quarter of 2020, resulting primarily from net increases in various components of other operating expenses.

Income tax expense was $1.9 million for the first quarter of 2021, resulting in an effective tax rate of 28.1%, compared to income tax expense of $1.3 million, which resulted in an effective tax rate of 27.3% for the first quarter of 2020. The increase in income tax expense was due to an increase of $2.2 million in pre-tax income in the first quarter of 2021 compared to the first quarter of 2020. The higher effective tax rate in the first quarter of 2021 reflected the higher New Jersey statutory tax rate in effect compared to the statutory tax rate in effect in the first quarter of 2020.

Total assets were $1.81 billion at March 31, 2021, relatively unchanged from December 31, 2020. Total cash and cash equivalents increased $143.9 million and total investment securities increased $8.5 million, which amounts were offset by decreases of $138.7 million in total portfolio loans and $14.1 million in loans held for sale. Total portfolio loans at March 31, 2021 were $1.29 billion, compared to $1.43 billion at December 31, 2020. The $138.7 million decrease in portfolio loans was due primarily to a decrease of $120.8 million in mortgage warehouse lines as a result of lower funding volume, a decrease of $10.9 million in commercial real estate loans as a result of pay-offs and a decrease of $13.2 million in residential real estate loans, and was partially offset by a $9.7 million increase in construction loans. Loans held for sale decreased $14.1 million due to loan sales in excess of originations. Total investment securities were $226.3 million at March 31, 2021, representing an increase of $8.5 million from $217.7 million at December 31, 2020. Investment securities available for sale increased $5.7 million and investment securities held to maturity increased $2.8 million at March 31, 2021 from December 31, 2020.

Total deposits were $1.56 billion at March 31, 2021, relatively unchanged from December 31, 2020. Non-interest-bearing demand deposits increased $44.1 million due in part to funding of the SBA PPP loans while interest-bearing deposits decreased $45.7 million. Of the total decrease in interest-bearing deposits, certificates of deposit decreased $95.2 million primarily due to the maturity of $72 million of short-term internet listing service certificates of deposit. Savings deposits increased $42.5 million and interest-bearing demand deposits increased $7.0 million. There were no short-term borrowings at March 31, 2021 compared to $9.8 million at December 31, 2020.

Regulatory capital ratios for the Company and the Bank continue to reflect a strong capital position. Under applicable regulatory capital standards, the Company’s estimated common equity Tier 1 to risk-based assets (“CET1”), total risk-based capital, Tier I capital, and leverage ratios were 10.89%, 13.37%, 12.16% and 9.64%, respectively, at March 31, 2021. The Bank’s estimated CET1, total risk-based capital, Tier 1 capital and leverage ratios were 12.16%, 13.37%, 12.16% and 9.63%, respectively, at March 31, 2021. The Company and the Bank are considered “well capitalized” under these capital standards.

Asset Quality

Non-accrual loans were $15.3 million at March 31, 2021 compared to $16.4 million at December 31, 2020. During the quarter ended March 31, 2021, $967,000 of loans were placed on non-accrual status and consisted of a $96,000 home equity loan and an $871,000 residential mortgage loan. During the first quarter of 2021, $2.0 million of non-performing loans were resolved as a result of pay-downs and pay-offs, which included $782,000 of purchased credit impaired loans that were repaid.

Non-performing loans represented 1.18% of total loans and non-performing assets represented 0.85% of total assets at March 31, 2021 compared to 1.20% and 0.96% at December 31, 2020, respectively.

OREO decreased $44,000 to $48,000 at March 31, 2021 compared to $92,000 at December 31, 2020, due to the write-down of the asset. The asset consisted of one parcel of land.

About 1

^ST

Constitution Bancorp

1^ST Constitution Bancorp, through its primary subsidiary, 1^ST Constitution Bank, operates 25 branch banking offices in Asbury Park, Cranbury (2), Fair Haven, Fort Lee, Freehold, Hamilton, Hightstown, Hillsborough, Hopewell, Jackson, Jamesburg, Lawrenceville, Little Silver, Long Branch, Manahawkin, Neptune City, Perth Amboy, Plainsboro, Princeton, Rocky Hill, Rumson, Shrewsbury and Toms River (2), New Jersey.

1^ST Constitution Bancorp is traded on the Nasdaq Global Market under the trading symbol “FCCY” and information about the Company can be accessed through the Internet at www.1STCONSTITUTION.com

Cautionary Language Concerning Forward-Looking Statements

The foregoing contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 relating to, without limitation, our future economic performance, plans and objectives for future operations, and projections of revenues and other financial items that are based on our beliefs, as well as assumptions made by and information currently available to us. The words “may,” “will,” “anticipate,” “should,” “would,” “believe,” “contemplate,” “could,” “project,” “predict,” “expect,” “estimate,” “continue,” and “intend,” as well as other similar words and expressions of the future, are intended to identify forward-looking statements.

These forward-looking statements are based upon our opinions and estimates as of the date they are made and are not guarantees of future performance. Although we believe that the expectations reflected in these forward-looking statements are reasonable, such forward-looking statements are subject to known and unknown risks and uncertainties that may be beyond our control, which could cause actual results, performance and achievements to differ materially from results, performance and achievements projected, expected, expressed or implied by the forward-looking statements.

Examples of factors or events that could cause actual results to differ materially from historical results or those anticipated, expressed or implied include, without limitation, changes in the overall economy and interest rate changes; inflation, market and monetary fluctuations; the ability of our customers to repay their obligations; the accuracy of our financial statement estimates and assumptions, including the adequacy of the estimates made in connection with determining the adequacy of the allowance for loan losses; increased competition and its effect on the availability and pricing of deposits and loans; significant changes in accounting, tax or regulatory practices and requirements; changes in deposit flows, loan demand or real estate values; the enactment of legislation or regulatory changes; changes in monetary and fiscal policies of the U.S. government; changes to the method that LIBOR rates are determined and to the phasing out of LIBOR after 2021; changes in loan delinquency rates or in our levels of non-performing assets; our ability to declare and pay dividends; changes in the economic climate in the market areas in which we operate; the frequency and magnitude of foreclosure of our loans; changes in consumer spending and saving habits; the effects of the health and soundness of other financial institutions, including the need of the FDIC to increase the Deposit Insurance Fund assessments; technological changes; the effects of climate change and harsh weather conditions, including hurricanes and man-made disasters; the economic impact of any future terrorist threats and attacks, acts of war or threats thereof and the response of the United States to any such threats and attacks; our ability to integrate acquisitions and achieve cost savings; other risks described from time to time in our filings with the Securities and Exchange Commission; and our ability to manage the risks involved in the foregoing. Further, the foregoing factors may be exacerbated by the ultimate impact of the COVID-19 pandemic, which is unknown at this time.

In addition, statements about the COVID-19 pandemic and the potential effects and impacts of the COVID-19 pandemic on the Company’s business, financial condition, liquidity and results of operations may constitute forward-looking statements and are subject to the risk that actual results may differ, possibly materially, from what is reflected in such forward-looking statements due to factors and future developments that are uncertain, unpredictable and, in many cases, beyond our control, including the scope, duration and extent of the pandemic, actions taken by governmental authorities in response to the pandemic and the direct and indirect impact of the pandemic on our employees, customers, business and third-parties with which we conduct business.

Although management has taken certain steps to mitigate any negative effect of the aforementioned factors, significant unfavorable changes could severely impact the assumptions used and have an adverse effect on profitability. Any forward-looking statements made by us or on our behalf speak only as of the date they are made, and we do not undertake any obligation to update any forward-looking statement to reflect the impact of subsequent events or circumstances, except as required by law.

1

^ST

Constitution Bancorp

Selected Consolidated Financial Data

(Dollars in thousands, except per share data)

(Unaudited)

	Three Months Ended March 31,
	2021					2020
Per share data:
Earnings per share – basic	$	0.48				$	0.34
Earnings per share – diluted	0.48					0.33
Book value per share at end of period	18.63					16.97
Tangible book value per common share at end of period(1)	15.13					13.38
Weighted average shares outstanding – basic	10,261,718					10,200,836
Weighted average shares outstanding – diluted	10,307,559					10,262,047
Shares outstanding at end of period	10,265,163					10,201,298
Performance ratios/data:
Return on average total assets	1.10			%		0.89			%
Return on average shareholders’ equity	10.59			%		8.01			%
Net interest income (tax-equivalent basis)(2)	$	15,405				$	13,053
Net interest margin (tax-equivalent basis)(3)	3.67			%		3.68			%
Efficiency ratio (tax-equivalent basis)(4)	56.98			%		63.14			%
Loan portfolio composition:	March 31, 2021					December 31, 2020
Commercial real estate	$	608,033				$	618,978
Mortgage warehouse lines	267,580					388,366
Construction loans	138,924					129,245
Commercial business	187,389					188,728
Residential real estate	75,048					88,261
Loans to individuals	19,441					21,269
Other loans	103					113
Gross loans	1,296,518					1,434,960
Deferred (fees) costs, net	(1,530		)			(1,254		)
Total loans	$	1,294,988				$	1,433,706
Asset quality data:
Loans past due over 90 days and still accruing	$	—				$	871
Non-accrual loans	15,333					16,361
OREO property	48					92
Total non-performing assets	$	15,381				$	17,324
Net recoveries (charge-offs)	$	3				$	(328	)
Allowance for loan losses to total loans	1.32			%		1.09			%
Allowance for loan losses to total loans excluding mortgage   warehouse lines and related allowance	1.54			%		1.32			%
Allowance for loan losses to non-performing loans	111.16			%		90.77			%
Non-performing loans to total loans	1.18			%		1.20			%
Non-performing assets to total assets	0.85			%		0.96			%
Capital ratios:
1 ST Constitution Bancorp
Common equity tier 1 capital to risk-weighted assets	10.89			%		9.92			%
Total capital to risk-weighted assets	13.37			%		12.16			%
Tier 1 capital to risk-weighted assets	12.16			%		11.12			%
Tier 1 leverage ratio	9.64			%		9.41			%
1 ST Constitution Bank
Common equity tier 1 capital to risk-weighted assets	12.16			%		11.11			%
Total capital to risk-weighted assets	13.37			%		12.15			%
Tier 1 capital to risk-weighted assets	12.16			%		11.11			%
Tier 1 leverage ratio	9.63			%		9.40			%

(1)	Tangible book value per common share is a non-GAAP financial measure and is calculated by subtracting goodwill and other intangible assets from shareholders’ equity and dividing it by common shares outstanding.
(2)	The tax-equivalent adjustment was $127 and $117 for the three months ended March 31, 2021 and 2020, respectively.
(3)	Represents net interest income on a tax-equivalent basis as a percent of average interest-earning assets.
(4)	Represents non-interest expenses divided by the sum of net interest income on a tax-equivalent basis and non-interest income.

1

^ST

Constitution Bancorp

Consolidated Balance Sheets

(Dollars in thousands)

(Unaudited)

	March 31, 2021				December 31, 2020
ASSETS
Cash and due from banks	$	7,483			$	3,661
Interest-earning deposits	158,418				18,334
Total cash and cash equivalents	165,901				21,995
Investment securities:
Available for sale, at fair value	130,897				125,197
Held to maturity (fair value of $97,899 and $95,640 at March 31,   2021 and December 31, 2020, respectively)	95,371				92,552
Total investment securities	226,268				217,749
Loans held for sale	15,679				29,782
Loans	1,294,988				1,433,706
Less: allowance for loan losses	(17,044		)		(15,641		)
Net loans	1,277,944				1,418,065
Premises and equipment, net	14,207				14,345
Right-of-use assets	16,121				16,548
Accrued interest receivable	4,663				5,273
Bank-owned life insurance	37,490				37,316
Other real estate owned	48				92
Goodwill and intangible assets	35,922				36,003
Other assets	11,988				9,741
Total assets	$	1,806,231			$	1,806,909
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
Deposits
Non-interest bearing	$	469,339			$	425,210
Interest bearing	1,091,880				1,137,629
Total deposits	1,561,219				1,562,839
Short-term borrowings	—				9,825
Redeemable subordinated debentures	18,557				18,557
Accrued interest payable	699				851
Lease liability	16,993				17,387
Accrued expense and other liabilities	17,500				9,793
Total liabilities	1,614,968				1,619,252
SHAREHOLDERS EQUITY
Preferred stock, no par value; 5,000,000 shares authorized;   none issued	—				—
Common stock, no par value; 30,000,000 shares authorized; 10,320,866 and 10,293,535 shares issued and 10,265,163 and 10,245,826 shares outstanding as of March 31, 2021 and December 31, 2020, respectively	111,460				111,135
Retained earnings	79,208				75,201
Treasury stock, 55,703 and 47,709 shares at March 31, 2021 and December 31, 2020, respectively	(739		)		(611		)
Accumulated other comprehensive income	1,334				1,932
Total shareholders’ equity	191,263				187,657
Total liabilities and shareholders’ equity	$	1,806,231			$	1,806,909

1

^ST

Constitution Bancorp

Consolidated Statements of Income

(Dollars in thousands, except per share data)

(Unaudited)

	Three Months Ended March 31,
	2021				2020
INTEREST INCOME
Loans, including fees	$	15,925			$	14,805
Securities:
Taxable	520				1,056
Tax-exempt	478				438
Federal funds sold and short-term investments	37				89
Total interest income	16,960				16,388
INTEREST EXPENSE
Deposits	1,598				3,238
Borrowings	—				62
Redeemable subordinated debentures	84				152
Total interest expense	1,682				3,452
Net interest income	15,278				12,936
PROVISION FOR LOAN LOSSES	1,400				895
Net interest income after provision for loan losses	13,878				12,041
NON-INTEREST INCOME
Service charges on deposit accounts	117				213
Gain on sales of loans, net	3,095				1,470
Income on bank-owned life insurance	174				180
Gain on sales/calls of securities	2				8
Other income	690				585
Total non-interest income	4,078				2,456
NON-INTEREST EXPENSES
Salaries and employee benefits	6,952				6,169
Occupancy expense	1,311				1,170
Data processing expenses	491				446
FDIC insurance expense	270				34
Other real estate owned expenses	52				17
Other operating expenses	2,025				1,957
Total non-interest expenses	11,101				9,793
Income before income taxes	6,855				4,704
INCOME TAXES	1,926				1,283
Net income	$	4,929			$	3,421
EARNINGS PER COMMON SHARE
Basic	$	0.48			$	0.34
Diluted	0.48				0.33
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic	10,261,718				10,200,836
Diluted	10,307,559				10,262,047

1

^ST

Constitution Bancorp

Net Interest Margin Analysis

(Unaudited)

	Three months ended March 31, 2021											Three months ended March 31, 2020
(In thousands except yield/cost information)	Average								Average			Average								Average
Assets	Balance				Interest				Yield/Cost			Balance				Interest				Yield/Cost
Interest-earning assets:
Federal funds sold/short term investments	$	147,948			$	37			0.10	%		$	24,557			$	89			1.46	%
Investment securities:
Taxable	129,217				520				1.61	%		168,376				1,056				2.51	%
Tax-exempt (1)	88,800				605				2.73	%		65,194				555				3.40	%
Total investment securities	218,017				1,125				2.06	%		233,570				1,611				2.76	%
Loans: (2)
Commercial real estate	612,363				7,677				5.01	%		574,640				7,355				5.06	%
Mortgage warehouse lines	279,739				2,785				3.98	%		175,275				2,035				4.64	%
Construction	133,160				1,822				5.47	%		147,496				2,179				5.94	%
Commercial business	128,481				1,272				4.02	%		142,793				1,803				5.08	%
SBA PPP loans	61,610				1,023				6.73	%		—				—				—	%
Residential real estate	81,020				949				4.69	%		90,360				996				4.36	%
Loans to individuals	19,490				220				4.58	%		30,497				392				5.08	%
Loans held for sale	22,158				170				3.07	%		3,986				35				3.51	%
All other loans	563				7				4.97	%		1,350				10				2.96	%
Deferred (fees) costs, net	(1,141		)		—				—	%		453				—				—	%
Total loans	1,337,443				15,925				4.83	%		1,166,850				14,805				5.10	%
Total interest-earning assets	1,703,408				$	17,087			4.07	%		1,424,977				$	16,505			4.66	%
Non-interest-earning assets:
Allowance for loan losses	(16,044		)									(9,454		)
Cash and due from bank	12,513											13,383
Other assets	119,620											122,482
Total non-interest-earning assets	116,089											126,411
Total assets	$	1,819,497										$	1,551,388
Liabilities and shareholders’ equity:
Interest-bearing liabilities:
Money market and NOW accounts	$	458,734			$	464			0.41	%		$	401,837			$	760			0.76	%
Savings accounts	354,378				427				0.49	%		265,053				604				0.92	%
Certificates of deposit	326,930				707				0.88	%		359,881				1,874				2.09	%
Short-term borrowings	328				—				—	%		18,915				62				1.32	%
Redeemable subordinated debentures	18,557				84				1.81	%		18,557				152				3.24	%
Total interest-bearing liabilities	1,158,927				$	1,682			0.59	%		1,064,243				$	3,452			1.30	%
Non-interest-bearing liabilities:
Demand deposits	440,632											283,520
Other liabilities	31,252											31,793
Total non-interest-bearing liabilities	471,884											315,313
Shareholders’ equity	188,686											171,832
Total liabilities and      shareholders’ equity	$	1,819,497										$	1,551,388
Net interest spread (3)									3.48	%										3.36	%
Net interest income and margin (4)					$	15,405			3.67	%						$	13,053			3.68	%

(1)	Tax-equivalent basis, using 21% federal tax rate in 2021 and 2020.
(2)	Loan origination fees and costs are considered an adjustment to interest income. For the purpose of calculating loan yields, average loan balances include non-accrual loans with no related interest income and the average balance of loans held for sale.
(3)	The net interest spread is the difference between the average yield on interest-earning assets and the average rate paid on interest-bearing liabilities.
(4)	The net interest margin is equal to net interest income divided by average interest-earning assets.

CONTACT:	Robert F. Mangano	Stephen J. Gilhooly
	President & Chief Executive Officer	Sr. Vice President & Chief Financial Officer
	(609) 655-4500	(609) 655-4500

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“Network hours watched


went up 941%
week-over-week to 349,735 hours. Unique userswent up 1,841% week-over-week to 1,858,434 uniques. New application installs went up 465.9%, as we saw growth across all viewing outlets including televisions, tablets, mobile phones, computers, and game consoles, as well as growth across all the viewing platforms of Kartoon Channel!, including Apple, Android, Roku, Amazon, You Tube, Samsung, LG, and others, with full episode viewing exceeding industry norms as well. We can already see the 2^nd weekend dramatically building on the 1^st.”

Celebrating the Superhero Kindergarten milestone, Schwarzenegger stated: “Over 9 million views is an incredible start in this wonderful adventure, and I know that Stan would be extremely proud. I’m personally quite pleased, because it is positive content, for both kids and their parents. As Kelly Clarkson said this week on her show after airing a clip, ‘I love when a program comes out that my kids want to watch, and I want to watch as well. ” (Click to view Arnold Schwarzenegger’s recent appearances on The Kelly Clarkson Show and Jimmy Kimmel Live!)

“The world is migrating to streaming, and being free and family friendly, are distinguishing factors to drive Kartoon Channel! success,” said Genius Brands CEO, Andy Heyward. “Warren Buffett calls this type of differentiation a ‘moat,’ where an economic castle enjoys a material competitive advantage. There is no monthly subscription fee on Kartoon Channel!, as is required by many streaming services, because we are ad-supported. No less important is that we are producing very cool original content of the highest quality, which today’s kids and families want to see.”

“The importance of the Superhero Kindergarten performance is that successful viewership drives advertising revenue to the Kartoon Channel!, making the channel the valuable asset for Genius Brands we have been aiming towards from its launch. Second, retailers, toy companies, and consumer product licensees track series performance closely, as they determine what brands they go after and devote shelf space to. Though we can’t compare apples to oranges, the most successful animated series on television for many years has been the Simpsons. It is broadcast on linear television, and averages about 3.1 million views per episode. While, Superhero Kindergarten is streaming, not linear television, we couldn’t help but notice that by the end of the second weekend, the series has amassed more than 9 million views with only 3 episodes released so far.”

Genius Brands will continue rolling out new episodes each week with episode four debuting this Friday! The series is available by downloading the free Kartoon Channel! streaming app on Apple and Android devices; on Amazon Prime, on connected TVs and devices by Samsung, LG, Roku, Tubi, Amazon Fire Stick; on YouTube; and more; or by visiting www.kartoonchannel.com.

Stan Lee’s Superhero Kindergarten is geared towards kids and families and focuses on the adventures of six unique kids who are learning to master their super skills, along with their ABCs. With the help of their teacher Arnold Armstrong (AKA ‘Captain Fantastic’, the greatest superhero to ever live!).

It all began five years ago when Arnold Armstrong faced off in a final fight against his nemesis, the evil Dr. Superior, that left him powerless. Little did anyone know that during the fight, super-energy particles rained down on a group of unsuspecting toddlers. Now, those toddlers are kindergarten students at Greenville Elementary School who, with the help of Arnold Armstrong, must learn to control their powers as they go on super adventures! Arnold Armstrong’s mission: to train these kids to use their super-powers safely without revealing their identities. They learn the values of teamwork, health, diversity and anti-bullying while also protecting their town from rivals, and the nefarious Dr. Superior who has returned as Headmaster Danforth of the Academy for Superior Children across town.

Fun for the whole family, the series opens up the superhero genre for a whole new demographic and draws kids in with action and comedy, while parents can appreciate the quality of content synonymous with Stan Lee. Season one of the series includes 26 half-hour long episodes that began with a two-episode double feature and will be rolled out on a weekly basis every Friday.

Stan Lee’s Superhero Kindergarten features Schwarzenegger, voice-directed by John Landis, one of the most successful movie directors of all time, with Steven Banks, former head writer for SpongeBob SquarePants, serving as head writer for the series. The series is produced by Genius Brands and Stan Lee’s POW! Entertainment in association with Schwarzenegger’s Oak Productions. Gill Champion, CEO of Stan Lee’s POW! Entertainment; Andy Heyward, Chairman & CEO of Genius Brands; Schwarzenegger; and Paul Wachter of Main Street Advisors serve as executive producers.

About Kartoon Channel!

Available everywhere and anywhere kids are today, Genius Brands’ streaming network, Kartoon Channel!, is a family entertainment destination that delivers enduring childhood moments of humor, adventure, and discovery.

Delivering 1000’s of episodes of carefully curated free family-friendly content, the channel features animated classics for little kids, including The Wubbulous World of Dr. Seuss, Babar, Mello Dees, Super Simple Songs and Baby Genius, and hit content for bigger kids, such as Pac-Man, Angry Birds, and Yu-Gi-Oh, to original programming like Stan Lee’s Superhero Kindergarten, starring Arnold Schwarzenegger, KC! Pop Quiz coming in spring 2021, and Shaq’s Garage, starring Shaquille O’Neal for 2022. Kartoon Channel! also offers STEM-based content through its Kartoon Classroom!, including Baby Einstein, and More.

Kartoon Channel! delivers positive and purposeful content that is widely available and easily accessible across all platforms (Comcast, Cox, DISH, Sling TV, Amazon Prime, Amazon Fire, Apple TV, Android TV, Android Mobile, Google Play, Xumo, Roku, Tubi, Samsung Smart TVs, and LGTVs).

Kartoon Channel! can also be streamed on TVs and mobiles device by downloading the app, or on desktops by visiting www.kartoonchannel.com

About Genius Brands International

Genius Brands International, Inc. (Nasdaq: GNUS) is a leading global kids media company developing, producing, marketing and licensing branded children’s entertainment properties and consumer products for media and retail distribution. The Company’s ‘content with a purpose’ portfolio includes Stan Lee’s Superhero Kindergarten, starring Arnold Schwarzenegger, on Kartoon Channel!; Shaq’s Garage, starring Shaquille O’Neal on Kartoon Channel!; Rainbow Rangers on Kartoon Channel! and Netflix; Llama Llama, starring Jennifer Garner, on Netflix; award-winning toddler brand Baby Genius; adventure comedy STEM series Thomas Edison’s Secret Lab; and entrepreneurship series Warren Buffett’s Secret Millionaires Club. Through licensing agreements with leading partners, characters from Genius Brands’ IP also appear on a wide range of consumer products for the worldwide retail marketplace. The Company’s Kartoon Channel! and Kartoon Classroom! are available in over 100 million U.S. television households via a broad range of distribution platforms, including Comcast, Cox, DISH, Sling TV, Amazon Prime, Amazon Fire, Apple TV, Apple iOS, Android TV, Android Mobil, Google Play, Xumo, Roku, Tubi, YouTube, KartoonChannel.com, Samsung Smart TVs and LG TVs. For additional information, please visit www.gnusbrands.com.

Forward Looking Statements: Certain statements in this press release constitute “forward-looking statements” within the meaning of the federal securities laws. Words such as “may,” “might,” “will,” “should,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” “predict,” “forecast,” “project,” “plan,” “intend” or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including without limitation, our ability to generate revenue or achieve profitability; our ability to obtain additional financing on acceptable terms, if at all; the potential issuance of a significant number of shares, which will dilute our equity holders; fluctuations in the results of our operations from period to period; general economic and financial conditions; our ability to anticipate changes in popular culture, media and movies, fashion and technology; competitive pressure from other distributors of content and within the retail market; our reliance on and relationships with third-party production and animation studios; our ability to market and advertise our products; our reliance on third-parties to promote our products; our ability to keep pace with technological advances; our ability to protect our intellectual property and those other risk factors set forth in the “Risk Factors” section of the Company’s most recent Annual Report on Form 10-K and in the Company’s subsequent filings with the Securities and Exchange Commission (the “SEC”). Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.

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NEW YORK, May 03, 2021 (GLOBE NEWSWIRE) — Lowey Dannenberg P.C. is investigating claims of violations of federal securities laws on behalf of investors in Credit Suisse Group AG American Depository Receipts (“ADRs”) (NYSE: CS).   If you are an investor in Credit Suisse ADRs with more than $200,000 in losses, you should contact the Firm.

The financial services giant is accused of concealing material defects in its risk policies to allow high-risk clients to take on excessive leverage, including Greensill Capital and Archegos Capital Management.  This has exposed Credit Suisse to billions of dollars in losses.  Not only did the company conceal these operational landmines from Credit Suisse investors, but they also undertook actions indicating that Credit Suisse securities were substantially undervalued, such as a massive stock buy-back program worth USD $1.6 billion.

In March 2021, Credit Suisse was required to close and liquidate several investment funds tied to the activities of Greensill Capital. The investors in the funds, which totaled assets of approximately $10 billion, lost over $3 billion. A few days later, the meltdown at Archegos, the family run business of investor Bill Hwang, unfolded as some of his biggest wagers started to move against him – positions he built with significant amounts of  money.  When Credit Suisse and other banks that had extended credit to Archegos saw Hwang’s bets turn south, they required the firm to put up more money to cover the decline. When it could not, they began to liquidate Hwang’s portfolio, with Credit Suisse sustaining billions of dollars in losses.  Following these disclosures, the ADRs lost more than $3 billion in market value.   

In April 2021, at least seven top executives were removed from their posts after Credit Suisse reported losses of $4.7 billion linked to its prime brokerage services provided to Archegos Capital.  Among others, the Company’s Chairman of the Board has resigned, the Chairman of the Board’s Risk Committee has stepped down, and the Chief Risk and Compliance Officer was terminated.

A class action lawsuit has been filed. The complaint alleges that Credit Suisse ignored numerous red flags in connection with the Greensill funds, and conspired with Bill Hwang to allow Archegos to covertly take on billions of dollars in excessively concentrated and risky positions that injured Credit Suisse and its investors. If you purchased or otherwise acquired Credit Suisse ADRs between October 29, 2020 and March 31, 2021, and wish to participate, learn more, or discuss the issues surrounding the investigation, please contact our attorneys at (914) 733-7228 or (914) 733-7226, or via email at [email protected].   If you suffered a loss in Credit Suisse ADRs you have until June 15, 2021 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn’t require that you serve as a lead plaintiff.

Whistleblowers: Persons with non-public information regarding RIDE should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC.

About Lowey Dannenberg

Lowey Dannenberg is a national firm representing institutional and individual investors, who suffered financial losses resulting from corporate fraud and malfeasance in violation of federal securities and antitrust laws. The firm has significant experience in prosecuting multi-million-dollar lawsuits and has previously recovered billions of dollars on behalf of investors.

Contact

Lowey Dannenberg P.C.
44 South Broadway, Suite 1100 
White Plains, NY 10601
Tel: (914) 733-7228 or (914) 733-7226
Email: [email protected]