----

----

| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2010 |
|---|---------------------------------------------------------------------------------------------------------------------------------------------|

| o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ |
|---|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1ST CONSTITUTION BANCORP                               |   |
|--------|--------------------------------------------------------|--------|
|   | (Exact Name of Registrant as Specified in Its Charter) |   |

| New Jersey                                                    |   | 22-3665653                           |
|---------------------------------------------------------------|--------|--------------------------------------|
| (State of Other Jurisdictionof Incorporation or Organization) |   | (I.R.S. Employer Identification No.) |

| 2650 Route 130, P.O. Box 634, Cranbury, NJ |   | 08512      |
|--------------------------------------------|--------|------------|
| (Address of Principal Executive Offices)   |   | (Zip Code) |

| (609) 655-4500                                         |
|--------------------------------------------------------|
| (Issuer’s Telephone Number, Including Area Code) |

|                                                                               |
|------------------------------------------------------------------------------------|
| (Former name, former address and former fiscal year, if changed since last report) |

| Large accelerated filer                                            | o | Accelerated filer         | o |
|--------------------------------------------------------------------|---|---------------------------|---|
| Non-accelerated filer(Do not check if a smaller reporting company) | o | Smaller reporting company | x |

----

----

----

1ST CONSTITUTION BANCORP

|       |                                                              | Page   |
|------------|-------------------------------------------------------------------|--------|
|       |                                                              |   |
| PART I.    | FINANCIAL INFORMATION                                             |   |
|       |                                                              |   |
| Item 1.    | Financial Statements                                              | 1      |
|       |                                                              |   |
|       | Consolidated Balance Sheets                                       |   |
|       | (unaudited) at March 31, 2010                                     |   |
|       | and December 31, 2009                                             | 1      |
|       |                                                              |   |
|       | Consolidated Statements of Income                                 |   |
|       | (unaudited) for the Three Months Ended                            |   |
|       | March 31, 2010 and March 31, 2009                                 | 2      |
|       |                                                              |   |
|       | Consolidated Statements of Changes in Shareholders’ Equity  |   |
|       | (unaudited) for the Three Months Ended                            |   |
|       | March 31, 2010 and March 31, 2009                                 | 3      |
|       |                                                              |   |
|       | Consolidated Statements of Cash Flows                             |   |
|       | (unaudited) for the Three Months Ended                            |   |
|       | March 31, 2010 and March 31, 2009                                 | 4      |
|       |                                                              |   |
|       | Notes to Consolidated Financial Statements (unaudited)            | 5      |
|       |                                                              |   |
| Item 2.    | Management’s Discussion and Analysis of Financial Condition |   |
|       | and Results of Operations                                         | 17     |
|       |                                                              |   |
| Item 3.    | Quantitative and Qualitative Disclosures About Market Risk        | 31     |
|       |                                                              |   |
| Item 4.    | Controls and Procedures                                           | 31     |
|       |                                                              |   |
| PART II.   | OTHER INFORMATION                                                 |   |
|       |                                                              |   |
| Item 2.    | Unregistered Sales of Equity Securities and Use of Proceeds       | 32     |
|       |                                                              |   |
| Item 6.    | Exhibits                                                          | 32     |
|       |                                                              |   |
| SIGNATURES | 33                                                                |

----

Table of Contents

Item 1.               Financial Statements.

1st Constitution Bancorp and Subsidiaries

|                                                                                                                                                                                                                                                              |   | March 31, 2010 |                            |   | December 31, 2009 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|---------------------------------|--------|-------------------|--------|
| ASSETS                                                                                                                                                                                                                                                            |   |           |                            |   |              |   |
| CASH AND DUE FROM BANKS                                                                                                                                                                                                                                           |   | $              | 21,025,740                      |   |              | $      | 25,842,901 |   |
|                                                                                                                                                                                                                                                              |   |           |                            |   |              |   |   |   |
| FEDERAL FUNDS SOLD / SHORT-TERM INVESTMENTS                                                                                                                                                                                                                       |   |           | 11,386                          |   |              |   | 11,384 |   |
|                                                                                                                                                                                                                                                              |   |           |                            |   |              |   |   |   |
| Total cash and cash equivalents                                                                                                                                                                                                                                   |   |           | 21,037,126                      |   |              |   | 25,854,285 |   |
|                                                                                                                                                                                                                                                              |   |           |                            |   |              |   |   |   |
| INVESTMENT SECURITIES:                                                                                                                                                                                                                                            |   |           |                            |   |              |   |   |   |
| Available for sale, at fair value                                                                                                                                                                                                                                 |   |           | 195,401,251                     |   |              |   | 204,118,850 |   |
| Held to maturity (fair value of $22,771,783 and $24,215,530 at March 31, 2010 and December 31, 2009, respectively)                                                                                                                                                |   |           | 22,118,590                      |   |              |   | 23,608,980 |   |
|                                                                                                                                                                                                                                                              |   |           |                            |   |              |   |   |   |
| Total investment securities                                                                                                                                                                                                                                       |   |           | 217,519,841                     |   |              |   | 227,727,830 |   |
|                                                                                                                                                                                                                                                              |   |           |                            |   |              |   |   |   |
| LOANS HELD FOR SALE                                                                                                                                                                                                                                               |   |           | 16,325,840                      |   |              |   | 21,514,785 |   |
|                                                                                                                                                                                                                                                              |   |           |                            |   |              |   |   |   |
| LOANS                                                                                                                                                                                                                                                             |   |           | 361,448,384                     |   |              |   | 379,945,735 |   |
| Less- Allowance for loan losses                                                                                                                                                                                                                                   |   |           | (4,791,297                      | )      |              |   | (4,505,387 | ) |
|                                                                                                                                                                                                                                                              |   |           |                            |   |              |   |   |   |
| Net loans                                                                                                                                                                                                                                                         |   |           | 356,657,087                     |   |              |   | 375,440,348 |   |
| PREMISES AND EQUIPMENT, net                                                                                                                                                                                                                                       |   |           | 5,335,690                       |   |              |   | 4,899,091 |   |
| ACCRUED INTEREST RECEIVABLE                                                                                                                                                                                                                                       |   |           | 2,454,004                       |   |              |   | 2,274,087 |   |
| BANK-OWNED LIFE INSURANCE                                                                                                                                                                                                                                         |   |           | 11,165,694                      |   |              |   | 10,319,055 |   |
| OTHER REAL ESTATE OWNED                                                                                                                                                                                                                                           |   |           | 1,340,613                       |   |              |   | 1,362,621 |   |
| OTHER ASSETS                                                                                                                                                                                                                                                      |   |           | 8,060,583                       |   |              |   | 8,604,378 |   |
|                                                                                                                                                                                                                                                              |   |           |                            |   |              |   |   |   |
| Total assets                                                                                                                                                                                                                                                      |   | $              | 639,896,478                     |   |              | $      | 677,996,480 |   |
|  LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                                                                                                                                                  |   |           |                            |   |              |   |   |   |
| LIABILITIES:                                                                                                                                                                                                                                                      |   |           |                            |   |              |   |   |   |
| Deposits                                                                                                                                                                                                                                                          |   |           |                            |   |              |   |   |   |
| Non-interest bearing                                                                                                                                                                                                                                              |   | $              | 88,057,439                      |   |              | $      | 82,473,328 |   |
| Interest bearing                                                                                                                                                                                                                                                  |   |           | 445,643,577                     |   |              |   | 489,682,026 |   |
|                                                                                                                                                                                                                                                              |   |           |                            |   |              |   |   |   |
| Total deposits                                                                                                                                                                                                                                                    |   |           | 533,701,016                     |   |              |   | 572,155,354 |   |
|                                                                                                                                                                                                                                                              |   |           |                            |   |              |   |   |   |
| BORROWINGS                                                                                                                                                                                                                                                        |   |           | 22,500,000                      |   |              |   | 22,500,000 |   |
| REDEEMABLE SUBORDINATED DEBENTURES                                                                                                                                                                                                                                |   |           | 18,557,000                      |   |              |   | 18,557,000 |   |
| ACCRUED INTEREST PAYABLE                                                                                                                                                                                                                                          |   |           | 1,536,505                       |   |              |   | 1,757,151 |   |
| ACCRUED EXPENSES AND OTHER LIABILITIES                                                                                                                                                                                                                            |   |           | 4,955,992                       |   |              |   | 5,625,922 |   |
|                                                                                                                                                                                                                                                              |   |           |                            |   |              |   |   |   |
| Total liabilities                                                                                                                                                                                                                                                 |   |           | 581,250,513                     |   |              |   | 620,595,427 |   |
|                                                                                                                                                                                                                                                              |   |           |                            |   |              |   |   |   |
| COMMITMENTS AND CONTINGENCIES                                                                                                                                                                                                                                     |   |           |                            |   |              |   |   |   |
|                                                                                                                                                                                                                                                              |   |           |                            |   |              |   |   |   |
| SHAREHOLDERS’ EQUITY:                                                                                                                                                                                                                                       |   |           |                            |   |              |   |   |   |
|                                                                                                                                                                                                                                                              |   |           |                            |   |              |   |   |   |
| Preferred Stock, no par value; 5,000,000 shares authorized, of which 12,000shares of Series B, $1,000 liquidation preference, 5% cumulative increasing to 9% cumulative on February 15, 2014, were issued and outstanding at March 31, 2010 and December 31, 2009 |   |           |       11,500,246 |   |              |   |      11,473,262 |   |
|                                                                                                                                                                                                                                                              |   |           |                            |   |              |   |   |   |
| Common stock, no par value; 30,000,000 shares authorized; 4,537,010 and 4,526,827 shares issued and 4,526,107 and 4,515,924 shares outstanding at March 31, 2010 and December 31, 2009, respectively                                                              |   |           |     36,845,074        |   |              |   |   36,774,621 |   |
| Retained earnings                                                                                                                                                                                                                                                 |   |           | 10,829,605                      |   |              |   | 10,307,331 |   |
| Treasury Stock, at cost, 10,903 shares at March 31, 2010 and December 31, 2009                                                                                                                                                                                    |   |           | (73,492                         | )      |              |   | (73,492 | ) |
| Accumulated other comprehensive loss                                                                                                                                                                                                                              |   |           | (455,468                        | )      |              |   | (1,080,669 | ) |
|                                                                                                                                                                                                                                                              |   |           |                            |   |              |   |   |   |
| Total shareholders’ equity                                                                                                                                                                                                                                  |   |           | 58,645,965                      |   |              |   | 57,401,053 |   |
|                                                                                                                                                                                                                                                              |   |           |                            |   |              |   |   |   |
| Total liabilities and shareholders’ equity                                                                                                                                                                                                                  |   | $              | 639,896,478                     |   |              | $      | 677,996,480 |   |

----

Table of Contents

1st Constitution Bancorp and Subsidiaries

|                                                |   | Three Months Ended March 31, |      |
|-----------------------------------------------------|--------|------------------------------|-----------|
|                                                |   | 2010                         |      |   | 2009 |   |
| INTEREST INCOME:                                    |   |                         |      |   |   |   |
| Loans, including fees                               |   | $                            | 5,328,865 |   |   | $ | 6,039,601 |   |
| Securities:                                         |   |                         |      |   |   |   |   |   |
| Taxable                                             |   |                         | 1,393,886 |   |   |   | 1,237,655 |   |
| Tax-exempt                                          |   |                         | 107,930   |   |   |   | 128,555 |   |
| Federal funds sold and short-term investments       |   |                         | 19,709    |   |   |   | 8,594 |   |
|                                                |   |
| Total interest income                               |   |                         | 6,850,390 |   |   |   | 7,414,405 |   |
|                                                |   |
| INTEREST EXPENSE:                                   |   |                         |      |   |   |   |   |   |
| Deposits                                            |   |                         | 1,880,668 |   |   |   | 2,584,951 |   |
| Borrowings                                          |   |                         | 266,415   |   |   |   | 363,230 |   |
| Redeemable subordinated debentures                  |   |                         | 264,150   |   |   |   | 266,235 |   |
| Total interest expense                              |   |                         | 2,411,233 |   |   |   | 3,214,416 |   |
| Net interest income                                 |   |                         | 4,439,157 |   |   |   | 4,199,989 |   |
|                                                |   |                         |      |   |   |   |   |   |
| PROVISION FOR LOAN LOSSES                           |   |                         | 300,000   |   |   |   | 463,000 |   |
| Net interest income after provision for loan losses |   |                         | 4,139,157 |   |   |   | 3,736,989 |   |
|                                                |   |
| NON-INTEREST INCOME:                                |   |                         |      |   |   |   |   |   |
| Service charges on deposit accounts                 |   |                         | 176,356   |   |   |   | 238,519 |   |
| Gain on sales of loans                              |   |                         | 320,544   |   |   |   | 272,193 |   |
| Income on Bank-owned life insurance                 |   |                         | 96,639    |   |   |   | 91,022 |   |
| Other income                                        |   |                         | 355,307   |   |   |   | 245,318 |   |
|                                                |   |                         |      |   |   |   |   |   |
| Total non-interest income                           |   |                         | 948,846   |   |   |   | 847,052 |   |
|                                                |   |
| NON-INTEREST EXPENSE:                               |   |
| Salaries and employee benefits                      |   |                         | 2,376,700 |   |   |   | 2,227,329 |   |
| Occupancy expense                                   |   |                         | 445,927   |   |   |   | 452,665 |   |
| FDIC insurance expense                              |   |                         | 247,683   |   |   |   | 99,758 |   |
| Data processing expenses                            |   |                         | 258,807   |   |   |   | 259,683 |   |
| Other operating expenses                            |   |                         | 804,829   |   |   |   | 981,178 |   |
| Total non-interest expenses                         |   |                         | 4,133,946 |   |   |   | 4,020,613 |   |
|                                                |   |                         |      |   |   |   |   |   |
| Income before income taxes                          |   |                         | 954,057   |   |   |   | 563,428 |   |
| Income taxes                                        |   |                         | 254,799   |   |   |   | 86,738 |   |
| Net income                                          |   |                         | 699,258   |   |   |   | 476,690 |   |
| Dividends on preferred stock and accretion          |   |                         | 176,984   |   |   |   | 188,650 |   |
| Net income available to common shareholders         |   | $                            | 522,274   |   |   | $ | 288,040 |   |
|                                                |   |
| NET INCOME PER COMMON SHARE:                        |   |
| Basic                                          |   | $                            | 0.12      |   |   | $ | 0.07 |   |
| Diluted                                        |   | $                            | 0.12      |   |   | $ | 0.06 |   |

----

Table of Contents

1st Constitution Bancorp and Subsidiaries

|                                                                                                                                                                       |   |     PreferredStock |       |   |     CommonStock |   |       |     RetainedEarnings |   |   |     TreasuryStock |   |   | AccumulatedOtherComprehensiveLoss |    |   |   TotalShareholders’Equity |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|------------|--------|---------------------------|--------|------------|--------------------------------|--------|--------|-----------------------------|--------|--------|-----------------------------------|---------|--------|---------------------------------------|--------|
|                                                                                                                                                                       |   |                         |       |   |                      |   |       |                           |   |   |                        |   |   |                              |    |   |                                  |   |   |   |   |   |   |   |
| BALANCE, January 1, 2009                                                                                                                                                   |   | $                            | 11,387,828 |   |                      | $      | 35,180,433 |                           |   | $      | 9,653,923                   |   |   | $                                 | (53,331 | )      |                                  | $      | (549,201 | ) |   | $ | 55,619,652 |   |
|                                                                                                                                                                       |   |                         |       |   |                      |   |       |                           |   |   |                        |   |   |                              |    |   |                                  |   |   |   |   |   |   |   |
| Share-based compensation                                                                                                                                                   |   |                         |       |   |                      |   | 19,445     |                           |   |   |                        |   |   |                              |    |   |                                  |   |   |   |   |   | 19,445 |   |
|                                                                                                                                                                       |   |                         |       |   |                      |   |       |                           |   |   |                        |   |   |                              |    |   |                                  |   |   |   |   |   |   |   |
| Treasury stock purchased (5,935 shares)                                                                                                                                    |   |                         |       |   |                      |   |       |                           |   |   |                        |   |   |                              | (36,382 | )      |                                  |   |   |   |   |   | (36,382 | ) |
|                                                                                                                                                                       |   |                         |       |   |                      |   |       |                           |   |   |                        |   |   |                              |    |   |                                  |   |   |   |   |   |   |   |
| Exercise of stock options (7,283 shares)                                                                                                                                   |   |                         |       |   |                      |   | (24,513    | )                              |   |   |                        |   |   |                              | 58,305  |   |                                  |   |   |   |   |   | 33,792 |   |
|                                                                                                                                                                       |   |                         |       |   |                      |   |       |                           |   |   |                        |   |   |                              |    |   |                                  |   |   |   |   |   |   |   |
| Dividends on preferred stock                                                                                                                                               |   |                         |       |   |                      |   |       |                           |   |   | (161,666                    | )      |   |                              |    |   |                                  |   |   |   |   |   | (161,666 | ) |
|                                                                                                                                                                       |   |                         |       |   |                      |   |       |                           |   |   |                        |   |   |                              |    |   |                                  |   |   |   |   |   |   |   |
| Preferred stock issuance costs                                                                                                                                             |   |                         | (22,500    | )      |                      |   |       |                           |   |   |                        |   |   |                              |    |   |                                  |   |   |   |   |   | (22,500 | ) |
|                                                                                                                                                                       |   |                         |       |   |                      |   |       |                           |   |   |                        |   |   |                              |    |   |                                  |   |   |   |   |   |   |   |
| Accretion of discount on preferred stock                                                                                                                                   |   |                         | 26,984     |   |                      |   |       |                           |   |   | (26,984                     | )      |   |                              |    |   |                                  |   |   |   |   |   |   |   |
|                                                                                                                                                                       |   |                         |       |   |                      |   |       |                           |   |   |                        |   |   |                              |    |   |                                  |   |   |   |   |   |   |   |
| Comprehensive Income:                                                                                                                                                      |   |                         |       |   |                      |   |       |                           |   |   |                        |   |   |                              |    |   |                                  |   |   |   |   |   |   |   |
|     Net Income for the three months   ended March 31, 2009                                                                              |   |                         |       |   |                      |   |       |                           |   |   | 476,690                     |   |   |                              |    |   |                                  |   |   |   |   |   | 476,690 |   |
|     Minimum pension liability net of tax benefit                                                                                                       |   |                         |       |   |                      |   |       |                           |   |   |                        |   |   |                              |    |   |                                  |   | 29,687 |   |   |   | 29,687 |   |
|                                                                                                                                                                       |   |                         |       |   |                      |   |       |                           |   |   |                        |   |   |                              |    |   |                                  |   |   |   |   |   |   |   |
|     Unrealized gain on securities available for salenet of tax                                                                                         |   |                         |       |   |                      |   |       |                           |   |   |                        |   |   |                              |    |   |                                  |   | 210,536 |   |   |   | 210,536 |   |
|        Unrealized gain on interest rate swap contract            net of tax |   |                         |       |   |                      |   |       |                           |   |   |                        |   |   |                              |    |   |                                  |   | 17,646 |   |   |   | 17,646 |   |
|                                                                                                                                                                       |   |                         |       |   |                      |   |       |                           |   |   |                        |   |   |                              |    |   |                                  |   |   |   |   |   |   |   |
| Comprehensive Income                                                                                                                                                       |   |                         |       |   |                      |   |       |                           |   |   |                        |   |   |                              |    |   |                                  |   |   |   |   |   | 734,559 |   |
|                                                                                                                                                                       |   |                         |       |   |                      |   |       |                           |   |   |                        |   |   |                              |    |   |                                  |   |   |   |   |   |   |   |
| Balance, March 31, 2009                                                                                                                                                    |   | $                            | 11,392,312 |   |                      | $      | 35,175,365 |                           |   | $      | 9,941,963                   |   |   | $                                 | (31,408 | )      |                                  | $      | (291,332 | ) |   | $ | 56,186,900 |   |
|                                                                                                                                                                       |   |                         |       |   |                      |   |       |                           |   |   |                        |   |   |                              |    |   |                                  |   |   |   |   |   |   |   |
| Balance, January 1, 2010                                                                                                                                                   |   | $                            | 11,473,262 |   |                      | $      | 36,774,621 |                           |   | $      | 10,307,331                  |   |   | $                                 | (73,492 | )      |                                  | $      | (1,080,669 | ) |   | $ | 57,401,053 |   |
| Issuance of vested shares under employee            benefit program (10,042 shares)                            |   |                         |       |   |                      |   | 56,165     |                           |   |   |                        |   |   |                              |    |   |                                  |   |   |   |   |   | 56,165 |   |
|                                                                                                                                                                       |   |                         |       |   |                      |   |       |                           |   |   |                        |   |   |                              |    |   |                                  |   |   |   |   |   |   |   |
| Share-based compensation                                                                                                                                                   |   |                         |       |   |                      |   | 14,288     |                           |   |   |                        |   |   |                              |    |   |                                  |   |   |   |   |   | 14,288 |   |
|                                                                                                                                                                       |   |                         |       |   |                      |   |       |                           |   |   |                        |   |   |                              |    |   |                                  |   |   |   |   |   |   |   |
| Dividends on preferred stock                                                                                                                                               |   |                         |       |   |                      |   |       |                           |   |   | (150,000                    | )      |   |                              |    |   |                                  |   |   |   |   |   | (150,000 | ) |
|                                                                                                                                                                       |   |                         |       |   |                      |   |       |                           |   |   |                        |   |   |                              |    |   |                                  |   |   |   |   |   |   |   |
| Accretion of discount on preferred stock                                                                                                                                   |   |                         | 26,984     |   |                      |   |       |                           |   |   | (26,984                     | )      |   |                              |    |   |                                  |   |   |   |   |   |   |   |
|                                                                                                                                                                       |   |                         |       |   |                      |   |       |                           |   |   |                        |   |   |                              |    |   |                                  |   |   |   |   |   |   |   |
| Comprehensive Income:                                                                                                                                                      |   |                         |       |   |                      |   |       |                           |   |   |                        |   |   |                              |    |   |                                  |   |   |   |   |   |   |   |
|     Net Income for the three months   ended March 31, 2010                                                                              |   |                         |       |   |                      |   |       |                           |   |   | 699,258                     |   |   |                              |    |   |                                  |   |   |   |   |   | 699,258 |   |
|                                                                                                                                                                       |   |                         |       |   |                      |   |       |                           |   |   |                        |   |   |                              |    |   |                                  |   |   |   |   |   |   |   |
|     Minimum pension liability, net of tax benefit                                                                                                      |   |                         |       |   |                      |   |       |                           |   |   |                        |   |   |                              |    |   |                                  |   | 69,230 |   |   |   | 69,230 |   |
|                                                                                                                                                                       |   |                         |       |   |                      |   |       |                           |   |   |                        |   |   |                              |    |   |                                  |   |   |   |   |   |   |   |
|     Unrealized gain on securities available forsale net of tax benefit                                                                                 |   |                         |       |   |                      |   |       |                           |   |   |                        |   |   |                              |    |   |                                  |   | 519,932 |   |   |   | 519,932 |   |
|    Unrealized gain on interest rate swap contractnet of tax benefit                                                                                         |   |                         |       |   |                      |   |       |                           |   |   |                        |   |   |                              |    |   |                                  |   | 36,039 |   |   |   | 36,039 |   |
|                                                                                                                                                                       |   |                         |       |   |                      |   |       |                           |   |   |                        |   |   |                              |    |   |                                  |   |   |   |   |   |   |   |
| Comprehensive Income                                                                                                                                                       |   |                         |       |   |                      |   |       |                           |   |   |                        |   |   |                              |    |   |                                  |   |   |   |   |   | 1,324,459 |   |
|                                                                                                                                                                       |   |                         |       |   |                      |   |       |                           |   |   |                        |   |   |                              |    |   |                                  |   |   |   |   |   |   |   |
| Balance, March 31, 2010                                                                                                                                                    |   | $                            | 11,500,246 |   |                      | $      | 36,845,074 |                           |   | $      | 10,829,605                  |   |   | $                                 | (73,492 | )      |                                  | $      | (455,468 | ) |   | $ | 58,645,965 |   |

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1st Constitution Bancorp and Subsidiaries

|                                                                             |   | Three Months EndedMarch 31, |        |
|----------------------------------------------------------------------------------|--------|-----------------------------|-------------|
|                                                                             |   | 2010                        |        |   | 2009 |   |
| OPERATING ACTIVITIES:                                                       |   |                        |        |   |   |   |
| Net income                                                                  |   | $                           | 699,258     |   |   | $ | 476,690 |   |
| Adjustments to reconcile net income                                         |   |                        |        |   |   |   |   |   |
| to net cash provided by (used in) operating activities-                     |   |                        |        |   |   |   |   |   |
| Provision for loan losses                                                   |   |                        | 300,000     |   |   |   | 463,000 |   |
| Depreciation and amortization                                               |   |                        | 137,241     |   |   |   | 166,843 |   |
| Net amortization of premiums and discounts on securities                    |   |                        | 192,923     |   |   |   | 19,438 |   |
| Gains on sales of loans held for sale                                            |   |                        | (320,544    | ) |   |   | (272,193 | ) |
| Originations of loans held for sale                                         |   |                        | (26,796,844 | ) |   |   | (31,521,021 | ) |
| Proceeds from sales of loans held for sale                                  |   |                        | 32,306,333  |   |   |   | 24,741,138 |   |
| Income on Bank – owned life insurance                                 |   |                        | (96,639     | ) |   |   | (91,022 | ) |
| Share-based compensation expense                                                 |   |                        | 49,288      |   |   |   | 71,605 |   |
| (Increase) decrease in accrued interest receivable                               |   |                        | (179,917    | ) |   |   | 133,740 |   |
| Decrease (increase) in other assets                                         |   |                        | 169,351     |   |   |   | (1,456,121 | ) |
| Decrease in accrued interest payable                                        |   |                        | (220,646    | ) |   |   | (91,085 | ) |
| (Decrease) increase in accrued expenses and other liabilities               |   |                        | (523,663    | ) |   |   | 1,167,289 |   |
|                                                                             |
| Net cash provided by (used in) operating activities                         |   |                        | 5,716,141   |   |   |   | (6,191,699 | ) |
| INVESTING ACTIVITIES:                                                            |   |                        |        |   |   |   |   |   |
| Purchases of securities -                                                   |   |                        |        |   |   |   |   |   |
| Available for sale                                                          |   |                        | (32,936,864 | ) |   |   | (4,424,641 | ) |
| Held to maturity                                                            |   |                        | -           |   |   |   | (1,619,834 | ) |
| Proceeds from maturities and prepayments of securities -                    |   |                        |        |   |   |   |   |   |
| Available for sale                                                          |   |                        | 42,312,938  |   |   |   | 16,118,915 |   |
| Held to maturity                                                            |   |                        | 1,471,850   |   |   |   | 1,003,482 |   |
| Net (increase) decrease in loans                                            |   |                        | 18,483,261  |   |   |   | (33,312,594 | ) |
| Purchase of bank owned life insurance                                            |   |                        | (750,000    | ) |   |   | - |   |
| Capital expenditures                                                        |   |                        | (564,662    | ) |   |   | (5,016 | ) |
| Additional investment in other real estate owned                                 |   |                        | (1,650      | ) |   |   | (179,123 | ) |
| Proceeds from sales of other real estate owned                                   |   |                        | -           |   |   |   | 1,180,975 |   |
|                                                                             |
| Net cash provided by (used in) investing activities                         |   |                        | 28,014,873  |   |   |   | (21,237,836 | ) |
|                                                                             |
| FINANCING ACTIVITIES:                                                       |   |                        |        |   |   |   |   |   |
| Exercise of stock options and issuance of vested shares                          |   |                        | 56,165      |   |   |   | 33,792 |   |
| Purchase of Treasury Stock                                                       |   |                        | -           |   |   |   | (36,382 | ) |
| Dividend paid on preferred stock                                                 |   |                        | (150,000    | ) |   |   | (86,666 | ) |
| Preferred stock issuance costs paid                                              |   |                        | -           |   |   |   | (22,500 | ) |
| Net (decrease) increase  in demand, savings and time deposits     |   |                        | (38,454,338 | ) |   |   | 59,962,694 |   |
| Net (decrease) in borrowings                                                     |   |                        | -           |   |   |   | (21,000,000 | ) |
|                                                                             |
| Net cash (used in) provided by  financing activities              |   |                        | (38,548,173 | ) |   |   | 38,850,938 |   |
|                                                                             |
| (Decrease) increase  in cash and cash equivalents                 |   |                        | (4,817,159  | ) |   |   | 11,421,403 |   |
|                                                                             |
| CASH AND CASH EQUIVALENTS                                                   |   |                        |        |   |   |   |   |   |
|      AT BEGINNING OF PERIOD                                       |   |                        | 25,854,285  |   |   |   | 14,333,119 |   |
|                                                                             |
| CASH AND CASH EQUIVALENTS                                                   |   |                        |        |   |   |   |   |   |
|      AT END OF PERIOD                                        |   | $                           | 21,037,126  |   |   | $ | 25,754,522 |   |
|                                                                             |
| SUPPLEMENTAL DISCLOSURES                                                    |   |                        |        |   |   |   |   |   |
|      OF CASH FLOW INFORMATION:                               |   |                        |        |   |   |   |   |   |
|            Cash paid during the period for -  |   |                        |        |   |   |   |   |   |
| Interest                                                                    |   | $                           | 2,631,879   |   |   | $ | 3,305,501 |   |
| Income taxes                                                                |   |                        | -           |   |   |   | - |   |
| Non-cash investing activities                                                    |   |                        |        |   |   |   |   |   |
| Real estate acquired in full satisfaction of loans in foreclosure                |   |                        | -           |   |   | $ | 1,031,527 |   |

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1st Constitution Bancorp and Subsidiaries

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Table of Contents

|                                                                                               |   | Three Months Ended March 31, 2010 |     |
|----------------------------------------------------------------------------------------------------|--------|-----------------------------------|----------|
|                                                                                               |   |    Income               |     |   | Weighted-averageshares |   |   |   Per shareamount |   |
| Basic Earnings Per Common Share                                                                    |   |                              |     |   |   |   |   |   |   |
| Net income                                                                                         |   | $                                 | 699,258  |   |   |   |   |   |   |   |
| Preferred stock dividends and accretion                                                            |   |                              | (176,984 | ) |   |   |   |   |   |   |
| Income available to common shareholders                                                            |   |                              | 522,274  |   |   |   | 4,525,085 |   |   | $ | 0.12 |   |
|                                                                                               |   |                              |     |   |   |   |   |   |   |   |   |   |
| Effect of dilutive securities                                                                      |   |                              |     |   |   |   |   |   |   |   |   |   |
| Stock options and unvested stock awards                                                            |   |                              |     |   |   |   | 5,710 |   |   |   |   |   |
|                                                                                               |   |                              |     |   |   |   |   |   |   |   |   |   |
| Diluted Earnings Per Common Share                                                                  |   |                              |     |   |   |   |   |   |   |   |   |   |
| Income available to common shareholders      plus assumed conversion |   | $                                 | 522,274  |   |   |   | 4,530,795 |   |   | $ | 0.12 |   |

|                                                                                                   |   | Three Months Ended March 31, 2009 |     |
|--------------------------------------------------------------------------------------------------------|--------|-----------------------------------|----------|
|                                                                                                   |   |    Income               |     |   | Weighted-averageshares |   |   |   Per shareAmount |   |
| Basic Earnings Per Common Share                                                                        |   |                              |     |   |   |   |   |   |   |
| Net income                                                                                             |   | $                                 | 476,690  |   |   |   |   |   |   |   |
| Preferred stock dividends and accretion                                                                |   |                              | (188,650 | ) |   |   |   |   |   |   |
| Income available to common shareholders                                                                |   |                              | 288,040  |   |   |   | 4,429,633 |   |   | $ | 0.07 |   |
|                                                                                                   |   |                              |     |   |   |   |   |   |   |   |   |   |
| Effect of dilutive securities                                                                          |   |                              |     |   |   |   |   |   |   |   |   |   |
| Stock options and unvested stock awards                                                                |   |                              |     |   |   |   | 18,104 |   |   |   |   |   |
|                                                                                                   |   |                              |     |   |   |   |   |   |   |   |   |   |
| Diluted Earnings Per Common Share                                                                      |   |                              |     |   |   |   |   |   |   |   |   |   |
| Net income available to common shareholders      plus assumed conversion |   | $                                 | 288,040  |   |   |   | 4,447,737 |   |   | $ | 0.06 |   |

|                                                                                                                   |   |      |        |   | Gross      |   |      | Gross      |   |   |       |   |
|------------------------------------------------------------------------------------------------------------------------|--------|-----------|-------------|--------|------------|--------|-----------|------------|--------|--------|------------|--------|
|                                                                                                                   |   | Amortized |        |   | Unrealized |   |      | Unrealized |   |   | Fair       |   |
| March 31, 2010                                                                                                    |   | Cost      |        |   | Gains      |   |      | Losses     |   |   | Value      |   |
|                                                                                                                   |   |      |        |   |       |   |      |       |   |   |       |   |
| Available for sale-                                                                                                    |   |      |        |   |       |   |      |       |   |   |       |   |
| U. S. Treasury securities and                                                                                          |   |      |        |   |       |   |      |       |   |   |       |   |
| obligations of U.S. Government                                                                                         |   |      |        |   |       |   |      |       |   |   |       |   |
| sponsored corporations and agencies                                                                                    |   | $         | 133,342,505 |   |       | $      | 282,452   |       |   | $      | (199,780   | )      |   | $ | 133,425,177 |   |
|    Residential collateralized        mortgage obligations       |   |      | 32,231,410  |   |       |   | 283,763   |       |   |   | (140,420   | )      |   |   | 32,374,753 |   |
| Residential mortgage     backed securities                                                    |   |      | 22,339,026  |   |       |   | 1,502,024 |       |   |   | 0          |   |   |   | 23,841,050 |   |
| Obligations of State and                                                                                               |   |      |        |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Political subdivisions                                                                                                 |   |      | 2,451,846   |   |       |   | 59,287    |       |   |   | (73,969    | )      |   |   | 2,437,164 |   |
|     Trust preferred debt securities                                                                |   |      | 2,457,962   |   |       |   | 0         |       |   |   | (624,755   | )      |   |   | 1,833,207 |   |
|     Restricted stock                                                                               |   |      | 1,464,900   |   |       |   | 0         |       |   |   | 0          |   |   |   | 1,464,900 |   |
|     Mutual fund                                                                                    |   |      | 25,000      |   |       |   | 0         |       |   |   | 0          |   |   |   | 25,000 |   |
|                                                                                                                   |   |      |        |   |       |   |      |       |   |   |       |   |   |   |   |   |
|                                                                                                                   |   | $         | 194,312,649 |   |       | $      | 2,127,526 |       |   | $      | (1,038,924 | )      |   | $ | 195,401,251 |   |
|                                                                                                                   |   |      |        |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Held to maturity-                                                                                                      |   |      |        |   |       |   |      |       |   |   |       |   |   |   |   |   |
|     Residential collateralized        mortgage obligations |   | $         | 3,916,118   |   |       | $      | 132,491   |       |   | $      | 0          |   |   | $ | 4,048,609 |   |
| Residential mortgage     backed securities                                                    |   |      | 5,711,205   |   |       |   | 104,183   |       |   |   | (21,960    | )      |   |   | 5,793,428 |   |
| Obligations of State and                                                                                               |   |      |        |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Political subdivisions                                                                                                 |   |      | 8,479,030   |   |       |   | 340,731   |       |   |   | (1,613     | )      |   |   | 8,818,148 |   |
|     Trust preferred debt securities                                                                |   |      | 134,937     |   |       |   | 198       |       |   |   | 0          |   |   |   | 135,135 |   |
|     Corporate debt securities                                                                      |   |      | 3,877,300   |   |       |   | 99,163    |       |   |   | 0          |   |   |   | 3,976,463 |   |
|                                                                                                                   |   |      |        |   |       |   |      |       |   |   |       |   |   |   |   |   |
|                                                                                                                   |   | $         | 22,118,590  |   |       | $      | 676,766   |       |   | $      | (23,573    | )      |   | $ | 22,771,783 |   |

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|                                                                                                                                                                         |   |      |        |   | Gross      |   |      | Gross      |   |   |       |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|-------------|--------|------------|--------|-----------|------------|--------|--------|------------|--------|
|                                                                                                                                                                         |   | Amortized |        |   | Unrealized |   |      | Unrealized |   |   | Fair       |   |
| December 31, 2009                                                                                                                                                            |   | Cost      |        |   | Gains      |   |      | Losses     |   |   | Value      |   |
|                                                                                                                                                                         |   |      |        |   |       |   |      |       |   |   |       |   |
| Available for sale-                                                                                                                                                          |   |      |        |   |       |   |      |       |   |   |
| U. S. Treasury securities and                                                                                                                                                |   |      |        |   |       |   |      |       |   |   |       |   |
| obligations of U.S. Government                                                                                                                                               |   |      |        |   |       |   |      |       |   |   |       |   |
| sponsored corporations and agencies                                                                                                                                          |   | $         | 138,351,028 |   |       | $      | 291,906   |       |   | $      | (673,252   | )      |   | $ | 137,969,682 |   |
|        Residential collateralized mortgage            obligations             |   |      | 34,749,123  |   |       |   | 172,698   |       |   |   | (252,023   | )      |   |   | 34,669,798 |   |
| Residential mortgage backed securities                                                                                                                                       |   |      | 24,182,584  |   |       |   | 1,449,071 |       |   |   | 0          |   |   |   | 25,631,655 |   |
| Obligations of State and                                                                                                                                                     |   |      |        |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Political subdivisions                                                                                                                                                       |   |      | 2,633,210   |   |       |   | 45,644    |       |   |   | (91,212    | )      |   |   | 2,587,642 |   |
|         Trust preferred debt securities                                                                                              |   |      | 2,457,262   |   |       |   | 0         |       |   |   | (687,089   | )      |   |   | 1,770,173 |   |
|         Restricted Stock                                                                                                             |   |      | 1,464,900   |   |       |   | 0         |       |   |   | 0          |   |   |   | 1,464,900 |   |
|         Mutual Fund                                                                                                                  |   |      | 25,000      |   |       |   | 0         |       |   |   | 0          |   |   |   | 25,000 |   |
|                                                                                                                                                                         |   |      |        |   |       |   |      |       |   |   |       |   |   |   |   |   |
|                                                                                                                                                                         |   | $         | 203,863,107 |   |       | $      | 1,959,319 |       |   | $      | (1,703,576 | )      |   | $ | 204,118,850 |   |
|                                                                                                                                                                         |   |      |        |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Held to maturity-                                                                                                                                                            |   |      |        |   |       |   |      |       |   |   |       |   |   |   |   |   |
|         Residential collateralized mortgage             obligations |   | $         | 4,881,475   |   |       | $      | 150,055   |       |   | $      | 0          |   |   | $ | 5,031,530 |   |
| Residential mortgage backed securities                                                                                                                                       |   |      | 6,111,131   |   |       |   | 97,782    |       |   |   | (29,521    | )      |   |   | 6,179,392 |   |
| Obligations of State and                                                                                                                                                     |   |      |        |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Political subdivisions                                                                                                                                                       |   |      | 8,600,596   |   |       |   | 270,947   |       |   |   | 0          |   |   |   | 8,871,543 |   |
| Trust preferred debt securities                                                                                                                                              |   |      | 133,054     |   |       |   | 0         |       |   |   | 0          |   |   |   | 133,054 |   |
| Corporate debt securities                                                                                                                                                    |   |      | 3,882,724   |   |       |   | 117,287   |       |   |   | 0          |   |   |   | 4,000,011 |   |
|                                                                                                                                                                         |   |      |        |   |       |   |      |       |   |   |       |   |   |   |   |   |
|                                                                                                                                                                         |   | $         | 23,608,980  |   |       | $      | 636,071   |       |   | $      | (29,521    | )      |   | $ | 24,215,530 |   |

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Table of Contents

|                                                                 |   | AmortizedCost |        |   | FairValue |   |
|----------------------------------------------------------------------|--------|---------------|-------------|--------|-----------|--------|
| Available for sale-                                                  |   |          |        |
|      Due in one year or less                |   | $             | 38,821,847  |   |      | $      | 38,860,475 |   |
|      Due after one year through five years  |   |          | 66,191,425  |   |      |   | 66,347,665 |   |
|      Due after five years through ten years |   |          | 23,140,421  |   |      |   | 23,652,664 |   |
|      Due after ten years                    |   |          | 66,158,956  |   |      |   | 66,540,447 |   |
| Total                                                                |   | $             | 194,312,649 |   |      | $      | 195,401,251 |   |
|                                                                 |   |          |        |   |      |   |   |   |
| Held to maturity-                                                    |   |          |        |   |      |   |   |   |
|      Due in one year or less                |   | $             | 4,119,150   |   |      | $      | 4,169,272 |   |
|      Due after one year through five years  |   |          | 3,264,533   |   |      |   | 3,442,159 |   |
|      Due after five years through ten years |   |          | 6,256,568   |   |      |   | 6,519,220 |   |
|      Due after ten years                    |   |          | 8,478,339   |   |      |   | 8,641,132 |   |
| Total                                                                |   | $             | 22,118,590  |   |      | $      | 22,771,783 |   |

| March 31, 2010                                                                                                                                                                                |   |                |   |   | Less than 12 months |   |       | 12 months or longer |   |   | Total      |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|--------|---------------------|--------|------------|---------------------|--------|--------|------------|--------|
|                                                                                                                                                                                          |   | Number ofSecurities |   |   | Fair Value          |   |       | Unrealized Losses   |   |   | Fair Value |   |   | Unrealized Losses |   |   | Fair Value |   |   | Unrealized Losses |   |
| U.S. Treasury securities and obligations      of U.S. Government sponsored          corporations and agencies |   |                | 32     |   |                | $      | 60,539,088 |                |   | $      | (199,780   | )      |   | $ | - |   |   | $ | - |   |   | $ | 60,539,088 |   |   | $ | (199,780 | ) |
|                                                                                                                                                                                          |   |                |   |   |                |   |       |                |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential collateralized mortgage obligations                                                                                                                                               |   |                | 4      |   |                |   | 6,626,156  |                |   |   | (52,908    | )      |   |   | 418,840 |   |   |   | (87,512 | ) |   |   | 7,044,996 |   |   |   | (140,420 | ) |
|                                                                                                                                                                                          |   |                |   |   |                |   |       |                |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential mortgage backed securities                                                                                                                                                        |   |                | 1      |   |                |   | 2,880,797  |                |   |   | (21,960    | )      |   |   | - |   |   |   | - |   |   |   | 2,880,797 |   |   |   | (21,960 | ) |
|                                                                                                                                                                                          |   |                |   |   |                |   |       |                |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Obligations of State and Political    Subdivisions                                                                                                                        |   |                | 2      |   |                |   | 1,291,255  |                |   |   | (75,582    | )      |   |   | - |   |   |   | - |   |   |   | 1,291,255 |   |   |   | (75,582 | ) |
|                                                                                                                                                                                          |   |                |   |   |                |   |       |                |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Trust preferred securities                                                                                                                                                                    |   |                | 4      |   |                |   | -          |                |   |   | -          |   |   |   | 1,833,207 |   |   |   | (624,755 | ) |   |   | 1,833,207 |   |   |   | (624,755 | ) |
|                                                                                                                                                                                          |   |                |   |   |                |   |       |                |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                          |   |                |   |   |                |   |       |                |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Total temporarily impaired securities                                                                                                                                             |   |                | 43     |   |                | $      | 71,337,296 |                |   | $      | (350,230   | )      |   | $ | 2,252,047 |   |   | $ | (712,267 | ) |   | $ | 73,589,343 |   |   | $ | (1,062,497 | ) |

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Table of Contents

| December 31, 2009                                                                |   |                |   |   | Less than 12 months |   |       | 12 months or longer |   |   | Total            |   |
|----------------------------------------------------------------------------------|--------|---------------------|--------|--------|---------------------|--------|------------|---------------------|--------|--------|------------------|--------|
|                                                                             |   | Number ofSecurities |   |   |  Fair Value    |   |       | Unrealized Losses   |   |   |  Fair Value |   |   | Unrealized Losses |   |   |  Fair Value |   |   | Unrealized Losses |   |
| U.S. Government sponsored     corporations and agencies |   |                | 33     |   |                | $      | 73,177,106 |                |   | $      | (673,252         | )      |   | $ | - |   |   | $ | - |   |   | $ | 73,177,106 |   |   | $ | (673,252 | ) |
|                                                                             |   |                |   |   |                |   |       |                |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential collateralized mortgage obligations                                  |   |                | 5      |   |                |   | 9,399,574  |                |   |   | (158,696         | )      |   |   | 428,264 |   |   |   | (93,327 | ) |   |   | 9,827,838 |   |   |   | (252,023 | ) |
|                                                                             |   |                |   |   |                |   |       |                |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential mortgage backed securities                                           |   |                | 1      |   |                |   | 2,885,660  |                |   |   | (29,521          | )      |   |   | - |   |   |   | - |   |   |   | 2,885,660 |   |   |   | (29,521 | ) |
|                                                                             |   |                |   |   |                |   |       |                |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Obligations of State and Political     Subdivisions     |   |                | 1      |   |                |   | 924,549    |                |   |   | (91,212          | )      |   |   | - |   |   |   | - |   |   |   | 924,549 |   |   |   | (91,212 | ) |
|                                                                             |   |                |   |   |                |   |       |                |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Trust preferred debt securities                                                  |   |                | 4      |   |                |   | -          |                |   |   | -                |   |   |   | 1,770,172 |   |   |   | (687,089 | ) |   |   | 1,770,172 |   |   |   | (687,089 | ) |
|                                                                             |   |                |   |   |                |   |       |                |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Total temporarily impaired securities                                |   |                | 44     |   |                | $      | 86,386,889 |                |   | $      | (952,681         | )      |   | $ | 2,198,436 |   |   | $ | (780,416 | ) |   | $ | 88,585,325 |   |   | $ | (1,733,097 | ) |

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|                           |   | Three months endedMarch 31, 2010 |   |
|--------------------------------|--------|---------------------------------------|--------|
| Balance at beginning of period |   | $                                     | 364    |   |
| Change during the period       |   |                                  | -      |   |
| Balance at end of period       |   | $                                     | 364    |   |

| Stock Options                                   |   | Number ofShares |    |   | WeightedAverageExercise Price |   |   | WeightedAverageRemainingContractualTerm (years) |   |   | AggregateIntrinsicValue |   |
|-------------------------------------------------|--------|-----------------|---------|--------|-------------------------------|--------|--------|-------------------------------------------------|--------|--------|-------------------------|--------|
| Outstanding at January 1, 2010                  |   |            | 154,710 |   |                          | $      | 11.04  |                                            |   |   | 6.1                     |   |   | $ | 11,274 |   |
|      Options Granted   |   |            | -       |   |                          |   | -      |                                            |   |   |                    |   |   |   |   |   |
|      Options Exercised |   |            | -       |   |                          |   | -      |                                            |   |   |                    |   |   |   |   |   |
|      Options Forfeited |   |            | (1,969  | )      |                          |   | 9.86   |                                            |   |   |                    |   |   |   |   |   |
|      Options Expired   |   |            | -       |   |                          |   | -      |                                            |   |   |                    |   |   |   |   |   |
| Outstanding at March 31, 2010                   |   |            | 152,741 |   |                          | $      | 11.07  |                                            |   |   | 5.9                     |   |   | $ | 49,878 |   |
|                                            |   |            |    |   |                          |   |   |                                            |   |   |                    |   |   |   |   |   |
| Exercisable at March 31, 2010                   |   |            | 111,248 |   |                          | $      | 11.49  |                                            |   |   | 4.9                     |   |   | $ | 49,878 |   |

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| Nonvested shares                           |   | Number ofShares |   |   | Average Grant Date Fair Value |   |
|--------------------------------------------|--------|-----------------|--------|--------|-------------------------------|--------|
| Non-vested stock awards at January 1, 2010 |   |            | 75,769 |   |                          | $      | 9.53 |   |
| Shares granted                             |   |            | 12,075 |   |                          |   | 5.25 |   |
| Shares vested                              |   |            | (5,565 | )      |                          |   | 10.00 |   |
| Shares forfeited                           |   |            | (2,941 | )      |                          |   | 10.11 |   |
| Non-vested stock awards at March 31, 2010  |   |            | 79,338 |   |                          | $      | 8.82 |   |

|                          |   | Three months endedMarch 31, |    |
|-------------------------------|--------|-----------------------------|---------|
|                          |   | 2010                        |    |   | 2009 |   |
|                          |   |                        |    |   |   |   |
| Service cost                  |   | $                           | 56,514  |   |   | $ | 61,094 |   |
| Interest cost                 |   |                        | 48,435  |   |   |   | 45,630 |   |
| Actuarial loss recognized     |   |                        | 38,517  |   |   |   | 21,744 |   |
| Prior service cost recognized |   |                        | 24,858  |   |   |   | 24,858 |   |
|                          |   | $                           | 168,324 |   |   | $ | 153,326 |   |

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|                                                                                       |   | March 31, |      |   | December 31, |   |
|--------------------------------------------------------------------------------------------|--------|-----------|-----------|--------|--------------|--------|
|                                                                                       |   | 2010      |      |   | 2009         |   |
| Unrealized holding gains on                                                                |   |      |      |   |         |   |
| securities available for sale                                                              |   | $         | 1,088,602 |   |         | $      | 255,744 |   |
| Related income tax effect                                                                  |   |      | (399,879  | )      |         |   | (86,953 | ) |
|                                                                                       |   |      | 688,723   |   |         |   | 168,791 |   |
|                                                                                       |   |      |      |   |         |   |   |   |
| Unrealized impairment loss      On held to maturity security |   |      | (500,944  | )      |         |   | (500,944 | ) |
| Related income tax effect                                                                  |   |      | 170,321   |   |         |   | 170,321 |   |
|                                                                                       |   |      | (330,623  | )      |         |   | (330,623 | ) |
| Unrealized loss on interest rate swap contract                                             |   |      | (816,462  | )      |         |   | (883,806 | ) |
| Related income tax effect                                                                  |   |      | 322,467   |   |         |   | 353,772 |   |
|                                                                                       |   |      | (493,995  | )      |         |   | (530,034 | ) |
|                                                                                       |   |      |      |   |         |   |   |   |
| Pension liability                                                                          |   |      | (533,305  | )      |         |   | (647,228 | ) |
| Related income tax effect                                                                  |   |      | 213,732   |   |         |   | 258,425 |   |
|                                                                                       |   |      | (319,573  |   |         |   | (388,803 | ) |
|                                                                                       |   |      |      |   |         |   |   |   |
| Accumulated other comprehensive (loss)                                                     |   | $         | (455,468  | )      |         | $      | (1,080,669 | ) |

|                        |   | Net Unrealized Gains (Losses)on Available forSale Securities |    |   | Net Unrealized Impairment Loss On Held toMaturity Security |   |     | Net Change inFair Value ofInterest RateSwap Contract |   |   | Net Change Related to Defined Benefit Pension Plans |   |   | AccumulatedOther Comprehensive Loss |     |
|-----------------------------|--------|-------------------------------------------------------------------|---------|--------|----------------------------------------------------------------------|--------|----------|------------------------------------------------------|--------|--------|----------------------------------------------------------|--------|--------|-------------------------------------|----------|
| Balances, December 31, 2009 |   | $                                                                 | 168,791 |   |                                                                 | $      | (330,623 | )                                                    |   | $      | (530,034                                                 | )      |   | $                                   | (388,803 | ) |   | $ | (1,080,669 | ) |
|                        |   |                                                              |    |   |                                                                 |   |     |                                                 |   |   |                                                     |   |   |                                |     |   |   |   |   |   |
| Net change                  |   |                                                              | 519,932 |   |                                                                 |   | -        |                                                 |   |   | 36,039                                                   |   |   |                                | 69,230   |   |   |   | 625,201 |   |
|                        |   |                                                              |    |   |                                                                 |   |     |                                                 |   |   |                                                     |   |   |                                |     |   |   |   |   |   |
| Balance, March 31, 2010     |   | $                                                                 | 688,723 |   |                                                                 | $      | (330,623 | )                                                    |   | $      | (493,995                                                 | )      |   | $                                   | (319,573 | ) |   | $ | (455,468 | ) |

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| Level 1: | Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------|

| Level 2: | Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability. |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Level 3: | Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported with little or no market activity). |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                      |   | Level 1 Inputs |   |   | Level 2 Inputs |   |        | Level 3 Inputs |   |   | Total Fair Value |   |
|-------------------------------------------|--------|----------------|--------|--------|----------------|--------|-------------|----------------|--------|--------|------------------|--------|
| March 31, 2010:                           |   |           |   |   |           |   |        |           |   |   |             |   |
|   Securities available for sale |   |           | -      |   |           | $      | 195,401,251 |           |   |   | -                |   |   | $ | 195,401,251 |   |
|   Derivative liabilities        |   |           | -      |   |           |   | (816,462    | )              |   |   | -                |   |   |   | (816,462 | ) |
|                                      |   |           |   |   |           |   |        |           |   |   |             |   |   |   |   |   |
| December 31, 2009:                        |   |           |   |   |           |   |        |           |   |   |             |   |   |   |   |   |
|   Securities available for sale |   |           | -      |   |           | $      | 204,118,850 |           |   |   | -                |   |   | $ | 204,118,850 |   |
|   Derivative liabilities        |   |           | -      |   |           |   | (883,806    | )              |   |   | -                |   |   |   | (883,806 | ) |

|                      |   | Level 1 Inputs |   |   | Level 2 Inputs |   |    | Level 3 Inputs |   |   | Total Fair Value |   |
|---------------------------|--------|----------------|--------|--------|----------------|--------|---------|----------------|--------|--------|------------------|--------|
| March 31, 2010:           |   |           |   |   |           |   |    |           |   |   |             |   |
| Impaired loans            |   |           | -      |   |           |   | -       |           |   | $      | 715,907          |   |   | $ | 715,907 |   |
|                      |   |           |   |   |           |   |    |           |   |   |             |   |   |   |   |   |
| December 31, 2009:        |   |           |   |   |           |   |    |           |   |   |             |   |   |   |   |   |
| Impaired loans            |   |           | -      |   |           |   | -       |           |   | $      | 1,116,129        |   |   | $ | 1,116,129 |   |
| Other real estate owned   |   |           | -      |   |           |   | -       |           |   |   | 1,362,621        |   |   |   | 1,362,621 |   |
| Security held to maturity |   |           | -      |   |           |   | 133,054 |           |   |   | -                |   |   |   | 133,054 |   |

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|                                     |   | March 31, 2010 |         |    | December 31, 2009 |   |
|------------------------------------------|--------|----------------|--------------|---------|-------------------|--------|
|                                     |   | Carrying       |         |    | Estimated         |   |   | Carrying |   |   | Estimated |   |
|                                     |   | Value          |         |    | Fair Value        |   |   | Value |   |   | Fair Value |   |
|                                     |   |           |         |    |              |   |   |   |   |   |   |   |
| Cash and cash equivalents                |   | $              | 21,037,126   |    |              | $      | $21,037,126 |   |   | $ | 25,854,285 |   |   | $ | 25,854,285 |   |
| Securities available for sale       |   |           | 195,401,251  |    |              |   | 195,401,251 |   |   |   | 204,118,850 |   |   |   | 204,118,850 |   |
| Securities held to maturity         |   |           | 22,118,590   |    |              |   | 22,771,783 |   |   |   | 23,608,980 |   |   |   | 24,215,530 |   |
| Loans held for sale                 |   |           | 16,325,840   |    |              |   | 16,325,840 |   |   |   | 21,514,785 |   |   |   | 21,514,785 |   |
| Gross loans                         |   |           | 361,448,384  |    |              |   | 359,642,000 |   |   |   | 379,945,735 |   |   |   | 379,617,000 |   |
| Accrued interest receivable              |   |           | 2,454,004    |    |              |   | 2,454,004 |   |   |   | 2,274,087 |   |   |   | 2,274,087 |   |
| Deposits                            |   |           | (533,701,016 | )  |              |   | (535,049,000 | )  |   |   | (572,155,354 | )  |   |   | (573,596,000 | )  |
| Other borrowings                    |   |           | (22,500,000  | )  |              |   | (25,079,000 | )  |   |   | (22,500,000 | )  |   |   | (25,321,000 | )  |
| Redeemable subordinated debentures  |   |           | (18,557,000  | )  |              |   | (18,557,000 | )  |   |   | (18,557,000 | )  |   |   | (18,557,000 | )  |
| Interest rate swap contract         |   |           | (816,462     | )  |              |   | (816,462 | )  |   |   | (883,806 | ) |   |   | (883,806 | ) |
| Accrued interest payable                 |   |           | (1,536,505   | )       |              |   | (1,536,505 | ) |   |   | (1,757,151 | ) |   |   | (1,757,151 | ) |

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|  Maturity |  Hedged Liability | NotionalAmounts | Swap FixedInterest Rates | Swap VariableInterest Rates        |
|----------------|------------------------|-----------------|--------------------------|------------------------------------|
|           |                   |            |                     |                               |
| June 15, 2011  | Subordinated Debenture | $18,000,000     | 5.87%                    | 3 month LIBOR plus165 basis points |

Item 2.       Management’s Discussion and Analysis of Financial Condition and Results of Operations

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| Average Balance Sheets with Resultant Interest and Rates |   |
|----------------------------------------------------------|--------|
| (yields on a tax-equivalent basis)                       |   | Three months ended March 31, 2010 |   |   | Three months ended March 31, 2009 |   |
|                                                     |   | AverageBalance |   |   | Interest |   |   | AverageRate |   |   | AverageBalance |   |   | Interest |   |   | AverageRate |   |
| Assets:                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Federal Funds Sold/Short-Term Investments                |   | $ | 33,468,885 |   |   | $ | 19,709 |   |   |   | 0.24 | % |   | $ | 1,689,465 |   |   | $ | 8,594 |   |   |   | 2.06 | % |
| Investment Securities:                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                  |   |   | 215,869,321 |   |   |   | 1,393,886 |   |   |   | 2.62 | % |   |   | 107,599,793 |   |   |   | 1,237,655 |   |   |   | 4.66 | % |
| Tax-exempt                                               |   |   | 11,141,881 |   |   |   | 159,737 |   |   |   | 5.81 | % |   |   | 13,185,747 |   |   |   | 190,262 |   |   |   | 5.85 | % |
| Total                                                    |   |   | 227,011,202 |   |   |   | 1,553,623 |   |   |   | 2.78 | % |   |   | 120,785,540 |   |   |   | 1,427,917 |   |   |   | 4.79 | % |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loan Portfolio:                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Construction                                             |   |   | 75,945,075 |   |   |   | 1,130,873 |   |   |   | 6.04 | % |   |   | 92,670,610 |   |   |   | 1,396,767 |   |   |   | 6.11 | % |
| Residential real estate                                  |   |   | 10,993,906 |   |   |   | 150,048 |   |   |   | 5.54 | % |   |   | 11,165,216 |   |   |   | 175,975 |   |   |   | 6.39 | % |
| Home Equity                                              |   |   | 14,279,859 |   |   |   | 207,612 |   |   |   | 5.90 | % |   |   | 15,536,040 |   |   |   | 225,505 |   |   |   | 5.89 | % |
| Commercial and commercial real estate                    |   |   | 140,028,435 |   |   |   | 2,314,906 |   |   |   | 6.70 | % |   |   | 135,866,767 |   |   |   | 2,328,972 |   |   |   | 6.95 | % |
| Mortgage warehouse lines                                 |   |   | 86,430,196 |   |   |   | 1,002,820 |   |   |   | 4.71 | % |   |   | 116,887,876 |   |   |   | 1,332,358 |   |   |   | 4.62 | % |
| Installment                                              |   |   | 654,263 |   |   |   | 12,058 |   |   |   | 7.47 | % |   |   | 825,581 |   |   |   | 16,543 |   |   |   | 8.13 | % |
| All Other Loans                                          |   |   | 33,019,974 |   |   |   | 510,548 |   |   |   | 6.27 | % |   |   | 29,059,088 |   |   |   | 563,481 |   |   |   | 7.86 | % |
| Total                                                    |   |   | 361,351,708 |   |   |   | 5,328,865 |   |   |   | 5.98 | % |   |   | 402,011,178 |   |   |   | 6,039,601 |   |   |   | 6.09 | % |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Interest-Earning Assets                            |   |   | 621,831,795 |   |   |   | 6,902,197 |   |   |   | 4.50 | % |   |   | 524,486,183 |   |   |   | 7,476,112 |   |   |   | 5.78 | % |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for Loan Losses                                |   |   | (4,681,971 | ) |   |   |   |   |   |   |   |   |   |   | (3,789,419 | ) |   |   |   |   |   |   |   |   |
| Cash and Due From Bank                                   |   |   | 10,529,273 |   |   |   |   |   |   |   |   |   |   |   | 29,821,054 |   |   |   |   |   |   |   |   |   |
| Other Assets                                             |   |   | 28,143,654 |   |   |   |   |   |   |   |   |   |   |   | 21,043,796 |   |   |   |   |   |   |   |   |   |
| Total Assets                                             |   | $ | 655,822,751 |   |   |   |   |   |   |   |   |   |   | $ | 571,561,614 |   |   |   |   |   |   |   |   |   |
|  Interest-Bearing Liabilities:                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Money Market and NOW Accounts                            |   | $ | 121,295,956 |   |   | $ | 506,120 |   |   |   | 1.69 | % |   | $ | 97,318,705 |   |   | $ | 490,133 |   |   |   | 2.04 | % |
| Savings Accounts                                         |   |   | 180,685,199 |   |   |   | 547,258 |   |   |   | 1.23 | % |   |   | 105,534,945 |   |   |   | 618,651 |   |   |   | 2.38 | % |
| Certificates of Deposit                                  |   |   | 166,844,079 |   |   |   | 827,290 |   |   |   | 2.01 | % |   |   | 178,417,901 |   |   |   | 1,476,167 |   |   |   | 3.36 | % |
| Other Borrowed Funds                                     |   |   | 22,552,111 |   |   |   | 266,415 |   |   |   | 4.79 | % |   |   | 34,463,333 |   |   |   | 363,230 |   |   |   | 4.27 | % |
| Trust Preferred Securities                               |   |   | 18,557,000 |   |   |   | 264,150 |   |   |   | 5.77 | % |   |   | 18,557,000 |   |   |   | 266,235 |   |   |   | 5.82 | % |
| Total Interest-Bearing Liabilities                       |   |   | 509,934,345 |   |   |   | 2,411,233 |   |   |   | 1.92 | % |   |   | 434,291,884 |   |   |   | 3,214,416 |   |   |   | 3.00 | % |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Interest Spread                                      |   |   |   |   |   |   |   |   |   |   | 2.58 | % |   |   |   |   |   |   |   |   |   |   | 2.78 | % |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand Deposits                                          |   |   | 80,196,321 |   |   |   |   |   |   |   |   |   |   |   | 76,552,970 |   |   |   |   |   |   |   |   |   |
| Other Liabilities                                        |   |   | 8,108,614 |   |   |   |   |   |   |   |   |   |   |   | 5,336,952 |   |   |   |   |   |   |   |   |   |
| Total Liabilities                                        |   |   | 598,239,280 |   |   |   |   |   |   |   |   |   |   |   | 516,181,806 |   |   |   |   |   |   |   |   |   |
| Shareholders’ Equity                               |   |   | 57,583,471 |   |   |   |   |   |   |   |   |   |   |   | 55,379,808 |   |   |   |   |   |   |   |   |   |
| Total Liabilities and Shareholders’Equity          |   | $ | 655,822,751 |   |   |   |   |   |   |   |   |   |   | $ | 571,561,614 |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Interest Margin                                      |   |   |   |   |   | $ | 4,490,964 |   |   |   | 2.93 | % |   |   |   |   |   | $ | 4,261,696 |   |   |   | 3.30 | % |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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| Non-interest Expenses                   |   |                         |      |   |   |   |
|-----------------------------------------|--------|------------------------------|-----------|--------|--------|--------|
|                                    |   | Three months ended March 31, |      |
|                                    |   | 2010                         |      |   | 2009   |   |
| Salaries and employee benefits          |   | $                            | 2,376,700 |   |   | $      | 2,227,329 |   |
| Occupancy expenses                      |   |                         | 445,927   |   |   |   | 452,665 |   |
| Data processing services                |   |                         | 258,807   |   |   |   | 259,683 |   |
| Equipment expense                       |   |                         | 151,985   |   |   |   | 155,079 |   |
| Marketing                               |   |                         | 23,450    |   |   |   | 39,441 |   |
| Regulatory, professional and other fees |   |                         | 172,584   |   |   |   | 313,056 |   |
| Office expense                          |   |                         | 169,593   |   |   |   | 128,037 |   |
| FDIC insurance expense                  |   |                         | 247,683   |   |   |   | 99,758 |   |
| Directors’ fees                   |   |                         | 26,500    |   |   |   | 32,000 |   |
| Other real estate owned expenses        |   |                         | 17,790    |   |   |   | 50,353 |   |
| All other expenses                      |   |                         | 242,927   |   |   |   | 263,212 |   |
|                                    |   | $                            | 4,133,946 |   |   | $      | 4,020,613 |   |
|                                    |   |                         |      |   |   |   |   |   |

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| Loan Portfolio Composition    |   | March 31, 2010 |        |   | December 31, 2009 |   |
|-------------------------------|--------|----------------|-------------|--------|-------------------|--------|
| Component                     |   | Amount         |        |   | %of total         |   |   | Amount |   |   | %of total |   |
| Construction loans            |   | $              | 73,156,434  |   |              |   | 20% |   |   | $ | 79,805,278 |   |   |   | 21% |   |
| Residential real estate loans |   |           | 11,418,114  |   |              |   | 3% |   |   |   | 10,253,895 |   |   |   | 3% |   |
| Commercial business           |   |           | 55,807,635  |   |              |   | 15% |   |   |   | 57,925,392 |   |   |   | 15% |   |
| Commercial real estate        |   |           | 94,318,521  |   |              |   | 26% |   |   |   | 96,306,097 |   |   |   | 25% |   |
| Mortgage warehouse lines      |   |           | 111,799,238 |   |              |   | 31% |   |   |   | 119,382,078 |   |   |   | 32% |   |
| Loans to individuals          |   |           | 14,314,749  |   |              |   | 4% |   |   |   | 15,554,027 |   |   |   | 4% |   |
| Deferred loan fees and costs  |   |           | 421,625     |   |              |   | 0% |   |   |   | 489,809 |   |   |   | 0% |   |
| All other loans               |   |           | 212,068     |   |              |   | 0% |   |   |   | 229,159 |   |   |   | 0% |   |
|                          |   | $              | 361,448,384 |   |              |   | 100% |   |   | $ | 379,945,735 |   |   |   | 100% |   |

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|                                         |   |      |      |   |         |   |
|---------------------------------------------------|--------|-----------|-----------|--------|--------------|--------|
| Non-Performing Assets and Loans                   |   | March 31, |      |   | December 31, |   |
|                                              |   | 2010      |      |   | 2009         |   |
| Non-Performing loans:                             |   |      |      |   |         |   |
| Loans 90 days or more past due and still accruing |   | $         | 4,996     |   |         | $      | 145,898 |   |
| Non-accrual loans                                 |   |      | 8,527,762 |   |         |   | 4,161,628 |   |
| Total non-performing loans                        |   |      | 8,532,758 |   |         |   | 4,307,526 |   |
| Other real estate owned                           |   |      | 1,340,613 |   |         |   | 1,362,621 |   |
| Total non-performing assets                       |   | $         | 9,873,371 |   |         | $      | 5,670,147 |   |
|                                              |   |      |      |   |         |   |   |   |
| Non-performing loans to total loans               |   |      | 2.36      | %      |         |   | 1.13 | % |
| Non-performing assets to total assets             |   |      | 1.54      | %      |         |   | 0.84 | % |

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|   | · | General economic conditions. |
|--------|--------|------------------------------|

|   | · | Trends in charge-offs. |
|--------|--------|------------------------|

|   | · | Trends and levels of delinquent loans. |
|--------|--------|----------------------------------------|

|   | · | Trends and levels of non-performing loans, including loans over 90 days delinquent. |
|--------|--------|-------------------------------------------------------------------------------------|

|   | · | Trends in volume and terms of loans. |
|--------|--------|--------------------------------------|

|   | · | Levels of allowance for specific classified loans. |
|--------|--------|----------------------------------------------------|

|   | · | Credit concentrations. |
|--------|--------|------------------------|

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| Allowance for Loan Losses                               |   | Three Months EndedMarch 31, 2010 |        |   | Year EndedDecember 31,2009 |   |        | Three Months EndedMarch 31, 2009 |   |
|---------------------------------------------------------|--------|----------------------------------|-------------|--------|----------------------------|--------|-------------|----------------------------------|--------|
| Balance, beginning of period                            |   | $                                | 4,505,387   |   |                       | $      | 3,684,764   |                             |   | $ | 3,684,764 |   |
| Provision charged to operating expenses                 |   |                             | 300,000     |   |                       |   | 2,553,000   |                             |   |   | 463,000 |   |
|                                                    |   |                             |        |   |                       |   |        |                             |   |   |   |   |
| Loans charged off:                                      |   |                             |        |   |                       |   |        |                             |   |   |   |   |
| Construction loans                                      |   |                             | -           |   |                       |   | (1,226,754  | )                                |   |   | - |   |
| Residential real estate loans                           |   |                             | -           |   |                       |   | -           |                             |   |   | - |   |
| Commercial and commercial real estate                   |   |                             | -           |   |                       |   | (511,791    | )                                |   |   | (17,500 | ) |
| Loans to individuals                                    |   |                             | (16,988     | )      |                       |   | (1,973      | )                                |   |   | - |   |
| Lease financing                                         |   |                             | (365        | )      |                       |   | -           |                             |   |   | - |   |
| All other loans                                         |   |                             | -           |   |                       |   | -           |                             |   |   | - |   |
|                                                    |   |                             | (17,354     | )      |                       |   | (1,740,518  | )                                |   |   | (17,500 | ) |
| Recoveries:                                             |   |                             |        |   |                       |   |        |                             |   |   |   |   |
| Construction loans                                      |   |                             | -           |   |                       |   | -           |                             |   |   | - |   |
| Residential real estate loans                           |   |                             | -           |   |                       |   | -           |                             |   |   | - |   |
| Commercial and commercial real estate                   |   |                             | 3,264       |   |                       |   | 2,575       |                             |   |   | - |   |
| Loans to individuals                                    |   |                             | -           |   |                       |   | 5,566       |                             |   |   | - |   |
| Lease financing                                         |   |                             | -           |   |                       |   | -           |                             |   |   | - |   |
| All other loans                                         |   |                             | -           |   |                       |   | -           |                             |   |   | - |   |
|                                                    |   |                             | 3,264       |   |                       |   | 8,141       |                             |   |   | 0 |   |
|                                                    |   |                             |        |   |                       |   |        |                             |   |   |   |   |
| Net charge offs                                         |   |                             | (14,090     | )      |                       |   | (1,732,377  | )                                |   |   | (17,500 | ) |
| Balance, end of period                                  |   | $                                | 4,791,297   |   |                       | $      | 4,505,387   |                             |   | $ | 4,130,264 |   |
|                                                    |   |                             |        |   |                       |   |        |                             |   |   |   |   |
| Loans:                                                  |   |                             |        |   |                       |   |        |                             |   |   |   |   |
| At period end                                           |   | $                                | 361,448,384 |   |                       | $      | 379,945,735 |                             |   | $ | 409,611,983 |   |
| Average during the period                               |   |                             | 340,637,863 |   |                       |   | 384,314,052 |                             |   |   | 388,118,429 |   |
| Net annualized charge offs to average loans outstanding |   |                             | (0.02%      | )      |                       |   | (0.45%      | )                                |   |   | (0.02% | ) |
| Allowance for loan losses to:                           |   |                             |        |   |                       |   |        |                             |   |   |   |   |
| Total loans at period end                               |   |                             | 1.33%       |   |                       |   | 1.19%       |                             |   |   | 1.01% |   |
| Non-performing loans                                    |   |                             | 56.15%      |   |                       |   | 104.59%     |                             |   |   | 85.13% |   |
|                                                    |   |                             |        |   |                       |   |        |                             |   |   |   |   |

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|                                         |   | March 31, 2010 |        |   | December 31, 2009 |   |
|----------------------------------------------|--------|----------------|-------------|--------|-------------------|--------|
| Demand                                       |   |           |        |   |              |   |
|     Non-interest bearing |   | $              | 88,057,439  |   |              | $      | 82,473,328 |   |
|     Interest bearing     |   |           | 112,631,765 |   |              |   | 125,529,223 |   |
| Savings                                      |   |           | 164,762,418 |   |              |   | 193,369,640 |   |
| Time                                         |   |           | 168,249,394 |   |              |   | 170,783,163 |   |
|                                         |   | $              | 533,701,016 |   |              | $      | 572,155,354 |   |
|                                         |   |           |        |   |              |   |   |   |

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|                                   |   | Actual |       |   | For CapitalAdequacy Purposes |   |   | To Be Well Capitalized Under Prompt Corrective Action Provision |   |
|----------------------------------------|--------|--------|------------|--------|------------------------------|--------|--------|-----------------------------------------------------------------|--------|
|                                   |   | Amount |       |   | Ratio                        |   |   | Amount                                                          |   |   |   | Ratio |   |   | Amount |   |   |   | Ratio |   |
| As of March 31, 2010                   |   |   |       |   |                         |   |   |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Company                                |   |   |       |   |                         |   |   |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Capital to Risk Weighted Assets  |   | $      | 81,258,595 |   |                         |   | 18.67% |                                                            |   | $ | 34,822,215 |   |   |   | >8% |   |   |   | N/A |   |   |   | N/A |   |
| Tier 1 Capital to Risk Weighted Assets |   |   | 76,467,297 |   |                         |   | 17.57% |                                                            |   |   | 17,411,107 |   |   |   | >4% |   |   |   | N/A |   |   |   | N/A |   |
| Tier 1 Capital to Average Assets       |   |   | 76,467,297 |   |                         |   | 11.67% |                                                            |   |   | 26,207,545 |   |   |   | >4% |   |   |   | N/A |   |   |   | N/A |   |
| Bank                                   |   |   |       |   |                         |   |   |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Capital to Risk Weighted Assets  |   | $      | 78,909,247 |   |                         |   | 18.17% |                                                            |   | $ | 34,744,880 |   |   |   | >8% |   |   | $ | 43,431,100 |   |   |   | >10% |   |
| Tier 1 Capital to Risk Weighted Assets |   |   | 74,117,949 |   |                         |   | 17.07% |                                                            |   |   | 17,372,440 |   |   |   | >4% |   |   |   | 26,058,660 |   |   |   | >6% |   |
| Tier 1 Capital to Average Assets       |   |   | 74,117,949 |   |                         |   | 11.36% |                                                            |   |   | 26,105,075 |   |   |   | >4% |   |   |   | 32,631,343 |   |   |   | >5% |   |

|  As of December 31, 2009          |   |   |       |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |       |   |
|----------------------------------------|--------|--------|------------|--------|--------|--------|--------|--------|--------|--------|------------|--------|--------|--------|--------|--------|--------|--------|------------|--------|
| Company                                |   |   |       |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |       |   |
| Total Capital to Risk Weighted Assets  |   | $      | 79,091,277 |   |   |   | 17.23% |   |   | $      | 36,713,599 |   |   |   | >8% |   |   |   | N/A        |   |   |   | N/A |   |
| Tier 1 Capital to Risk Weighted Assets |   |   | 74,585,890 |   |   |   | 16.25% |   |   |   | 18,356,800 |   |   |   | >4% |   |   |   | N/A        |   |   |   | N/A |   |
| Tier 1 Capital to Average Assets       |   |   | 74,585,890 |   |   |   | 10.99% |   |   |   | 27,143,523 |   |   |   | >4% |   |   |   | N/A        |   |   |   | N/A |   |
| Bank                                   |   |   |       |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |       |   |   |   |   |   |
| Total Capital to Risk Weighted Assets  |   | $      | 77,370,821 |   |   |   | 16.90% |   |   | $      | 36,633,760 |   |   |   | >8% |   |   | $      | 45,792,200 |   |   |   | >10% |   |
| Tier 1 Capital to Risk Weighted Assets |   |   | 72,865,434 |   |   |   | 15.91% |   |   |   | 18,316,040 |   |   |   | >4% |   |   |   | 27,475,320 |   |   |   | >6% |   |
| Tier 1 Capital to Average Assets       |   |   | 72,865,434 |   |   |   | 10.78% |   |   |   | 27,043,305 |   |   |   | >4% |   |   |   | 33,804,131 |   |   |   | >5% |   |
|                                   |   |   |       |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |       |   |   |   |   |   |

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Item 3.                    Quantitative and Qualitative Disclosures About Market Risk.

Item 4.                    Controls and Procedures.

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Item 2.                    Unregistered Sales of Equity Securities and Use of Proceeds.

|      Period |              |    Total Number of Shares Purchased |   |   |     Average Price Paid Per Share |   |   |   Total Number of Shares Purchased As Part of Publicly Announced Plan or Program |   |   | Maximum Number of Shares That May Yet be Purchased Under the Plan or Program |   |
|--------------------------------------|-------------------|-----------------------------------------------|--------|--------|-------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------------|--------|
|  Beginning                      |  Ending      |                                          |   |   |                                            |   |   |                                                                                  |   |   |                                                                         |   |   |
| January 1, 2010                      | January 31, 2010  |                                          |   | -      |                                            |   |   | -                                                                                     |   |   |                                                                         | -      |   |   |   | 163,233 |   |
| February 1, 2010                     | February 28, 2010 |                                          |   | -      |                                            |   |   | -                                                                                     |   |   |                                                                         | -      |   |   |   | 163,233 |   |
| March 1, 2010                        | March 31, 2010    |                                          |   | -      |                                            |   |   | -                                                                                     |   |   |                                                                         | -      |   |   |   | 163,233 |   |
|  Total                          |              |                                          | -      |   |                                            |   | -      |                                                                                  |   |   | -                                                                            |   |   |   | 163,233 |   |

| (1) | The Company’s common stock repurchase program covers a maximum of 195,076 shares of common stock of the Company, representing 5% of the outstanding common stock of the Company on July 21, 2005, as adjusted for the subsequent stock dividends. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Item 6. | Exhibits. |
|---------|-----------|

| 31.1   | *      | Certification of Robert F. Mangano, principal executive officer of the Company, pursuant to Securities Exchange Act Rule 13a-14(a)                                                                                                                                  |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                |
| 31.2   | *      | Certification of Joseph M. Reardon, principal financial officer of the Company, pursuant to Securities Exchange Act Rule 13a-14(a)                                                                                                                                  |
|   |   |                                                                                                                                                                                                                                                                |
| 32     | *      | Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of The Sarbanes-Oxley Act of 2002, signed by Robert F. Mangano, principal executive officer of the Company, and Joseph M. Reardon, principal financial officer of the Company |

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SIGNATURES

|                                                                     | 1ST CONSTITUTION BANCORP |                                         |
|--------------------------------------------------------------------------|--------------------------|----------------------------------------------|
|                                                                     |                     |                                         |   |
|                                                                     |                     |                                         |   |
| Date: May 14, 2010          | By:                      | /s/ ROBERT F. MANGANO                   |   |
|                                                                     |                     | Robert F. Mangano                            |   |
|                                                                     |                     | President and Chief Executive Officer        |   |
|                                                                     |                     | (Principal Executive Officer)                |   |
|                                                                     |                     |                                         |   |
|                                                                     |                     |                                         |   |
| Date: May 14, 2010                                   | By:                      | /s/ JOSEPH M. REARDON                   |   |
|                                                                     |                     | Joseph M. Reardon                            |   |
|                                                                     |                     | Senior Vice President and Treasurer          |   |
|                                                                     |                     | (Principal Financial and Accounting Officer) |   |

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