Maryland
|
333-171913
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45-1496206
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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¨
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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¨
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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¨
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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¨
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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TABLE OF CONTENTS
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Item 2.02
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Results of Operations and Financial Conditions
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Item 9.01
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Financial Statements and Exhibits
|
SIGNATURES
|
|
EXHIBIT INDEX
|
|
EX-99.1
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Press Release
|
Item 2.02
|
Results of Operations and Financial Conditions
|
On May 2, 2012, First Connecticut Bancorp, Inc., the holding company for Farmington Bank, issued a Press Release describing its results of operation for the first quarter ended March 31, 2012. A copy of the Press Release is included as Exhibit 99.1 to this current Form 8-K and is incorporated herein by reference.
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Item 9.01
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Financial Statements and Exhibits
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(a)
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Not applicable.
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(b)
|
Not applicable.
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(c)
|
Not applicable.
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(d)
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Exhibits.
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Exhibit Number
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Description
|
99.1
|
Press Release dated May 2, 2012.
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SIGNATURES
|
|
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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FIRST CONNECTICUT BANCORP, INC.
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Registrant
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May 2, 2012
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By: /s/ John J. Patrick, Jr.
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John J. Patrick, Jr.
|
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Chairman, President and
|
|
and Chief Executive Officer
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Exhibit Number
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Description
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99.1
|
Press Release dated May 2, 2012.
|
·
|
Strong asset growth occurred as total assets increased $59.6 million or 4% for the quarter to $1.7 billion at March 31, 2012 and $222.6 million or 15% from a year ago.
|
·
|
Sustained loan growth was achieved as total loans increased $30.7 million or 2% for the quarter and $164.8 million or 14% when compared to a year ago, despite the impact of our previously announced strategic exit from the Resort Finance business. Resort Finance loans decreased $5.6 million at March 31, 2012 when compared to the prior quarter and $32.7 million when compared to a year ago. Loan growth when compared to the prior year primarily occurred in Residential Real Estate, 15%, Commercial Real Estate, 15%, Commercial Loans, 43% and Home Equity Lines of Credit, 41%.
|
·
|
Asset quality continues to remain stable as non-performing loans increased slightly to $16.3 million at March 31, 2012 from $15.5 million at December 31, 2011, while loan delinquencies 30 days and greater decreased $579,000 at March 31, 2012 to $18.3 million compared to $18.8 million at December 31, 2011. Impaired loans also decreased $1.9 million to $39.1 million at March 31, 2012 from $41.0 million at December 31, 2011.
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·
|
Net interest income increased $1.0 million for the three months ended March 31, 2012 when compared to the same period in the prior year driven by growth in average earning assets, partially offset by a net interest margin decline due to a lower rate environment and the significant liquidity generated from our public offering coupled with our deposit growth.
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·
|
We paid a cash dividend of $.03 per share on March 26, 2012. This marks the second consecutive quarter we have paid a dividend since First Connecticut Bancorp, Inc. became a public company on June 29, 2011.
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At or for the Three Months Ended | ||||||||||||||||||||
(Dollars in thousands, except per share data)
|
March 31,
2012
|
December
31, 2011
|
September
30, 2011
|
June 30,
2011
|
March 31,
2011
|
|||||||||||||||
Selected Financial Condition Data:
|
||||||||||||||||||||
Total assets
|
$ | 1,677,229 | $ | 1,617,650 | $ | 1,696,576 | $ | 1,632,269 | $ | 1,454,639 | ||||||||||
Cash and cash equivalents
|
131,280 | 90,296 | 240,554 | 238,662 | 75,465 | |||||||||||||||
Held to maturity securities
|
3,216 | 3,216 | 3,621 | 3,621 | 3,672 | |||||||||||||||
Available for sale securities
|
115,956 | 135,170 | 160,743 | 135,823 | 142,548 | |||||||||||||||
Federal Home Loan Bank stock
|
7,137 | 7,449 | 7,449 | 7,449 | 7,449 | |||||||||||||||
Loans receivable, net
|
1,326,107 | 1,295,177 | 1,211,514 | 1,177,571 | 1,157,835 | |||||||||||||||
Deposits
|
1,249,583 | 1,176,682 | 1,248,236 | 1,187,707 | 1,171,496 | |||||||||||||||
Federal Home Loan Bank advances
|
63,000 | 63,000 | 63,000 | 68,000 | 68,000 | |||||||||||||||
Total stockholders equity
|
250,196 | 251,980 | 257,912 | 263,047 | 95,977 | |||||||||||||||
Allowance for loan losses
|
17,727 | 17,533 | 16,094 | 15,912 | 20,562 | |||||||||||||||
Non-performing loans
|
16,338 | 15,501 | 18,442 | 18,699 | 21,377 | |||||||||||||||
Selected Operating Data:
|
||||||||||||||||||||
Interest income
|
$ | 15,427 | $ | 14,825 | $ | 14,659 | $ | 14,810 | $ | 14,731 | ||||||||||
Interest expense
|
2,473 | 2,614 | 2,672 | 2,760 | 2,780 | |||||||||||||||
Net Interest Income
|
12,954 | 12,211 | 11,987 | 12,050 | 11,951 | |||||||||||||||
Provision for allowance for loan losses
|
330 | 3,190 | 300 | 300 | 300 | |||||||||||||||
Net interest income after provision for loan losses
|
12,624 | 9,021 | 11,687 | 11,750 | 11,651 | |||||||||||||||
Noninterest income
|
1,313 | 1,386 | 1,728 | 1,293 | 1,281 | |||||||||||||||
Noninterest expense, excluding contribution to
|
||||||||||||||||||||
charitable foundation (*)
|
12,629 | 12,779 | 11,945 | 13,050 | 11,661 | |||||||||||||||
Contribution to charitable foundation (*)
|
- | - | - | 6,877 | - | |||||||||||||||
Total noninterest expense
|
12,629 | 12,779 | 11,945 | 19,927 | 11,661 | |||||||||||||||
Income (loss) before income taxes
|
1,308 | (2,372 | ) | 1,470 | (6,884 | ) | 1,271 | |||||||||||||
Provision (benefit) for income taxes
|
317 | (918 | ) | 427 | (2,239 | ) | 255 | |||||||||||||
Net income (loss)
|
$ | 991 | $ | (1,454 | ) | $ | 1,043 | $ | (4,645 | ) | $ | 1,016 | ||||||||
Performance Ratios (annualized):
|
||||||||||||||||||||
Return on average assets
|
0.24 | % | -0.35 | % | 0.25 | % | -1.22 | % | 0.28 | % | ||||||||||
Return average equity
|
1.57 | % | -2.24 | % | 1.60 | % | -18.26 | % | 4.19 | % | ||||||||||
Interest rate spread (1)
|
3.20 | % | 2.93 | % | 2.78 | % | 3.18 | % | 3.42 | % | ||||||||||
Net interest rate margin (2)
|
3.41 | % | 3.15 | % | 2.99 | % | 3.35 | % | 3.55 | % | ||||||||||
Non-interest expense to average assets
|
3.08 | % | 3.08 | % | 2.85 | % | 3.44 | % | 3.21 | % | ||||||||||
Efficiency ratio (3)
|
88.52 | % | 93.98 | % | 87.09 | % | 149.34 | % | 88.13 | % | ||||||||||
Efficiency ratio, excluding foundation contribution (4)
|
88.52 | % | 93.98 | % | 87.09 | % | 97.80 | % | 88.13 | % | ||||||||||
Average interest-earning assets to average
|
||||||||||||||||||||
interest-bearing liabilities
|
132.04 | % | 132.19 | % | 130.83 | % | 122.40 | % | 116.47 | % | ||||||||||
(*) In connection with the Conversion and Reorganization on June 29, 2011, the Company established Farmington Bank Community
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||||||||||||||||||||
Foundation, Inc., a non-profit charitable organization, which was funded with a contribution of 687,000 shares of the Company's
common stock.
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||||||||||||||||||||
(1) Represents the difference between the weighted-average yield on average interest-earning assets and the weighted-average cost of the
|
||||||||||||||||||||
interest-bearing liabilities.
|
||||||||||||||||||||
(2) Represents net interest income as a percent of average interest-earning assets.
|
||||||||||||||||||||
(3) Represents noninterest expense divided by the sum of net interest income and noninterest income.
|
||||||||||||||||||||
(4) Represents noninterest expense (excluding $6.9 million contribution to Farmington Bank Community Foundation, Inc. in June 2011)
|
||||||||||||||||||||
divided by the sum of net interest income and noninterest income.
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At or for the Three Months Ended | ||||||||||||||||||||
March 31,
2012
|
December 31, 2011
|
September
30, 2011
|
June 30,
2011
|
March 31,
2011
|
||||||||||||||||
Asset Quality Ratios:
|
||||||||||||||||||||
Allowance for loan losses as a percent of total loans
|
1.32 | % | 1.34 | % | 1.31 | % | 1.33 | % | 1.74 | % | ||||||||||
Allowance for loan losses as a percent of
|
||||||||||||||||||||
non-performing loans
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108.50 | % | 113.11 | % | 87.27 | % | 85.10 | % | 96.19 | % | ||||||||||
Net charge-offs to average loans (annualized)
|
0.04 | % | 0.56 | % | 0.04 | % | 1.67 | % | 0.16 | % | ||||||||||
Non-performing loans as a percent of total loans
|
1.22 | % | 1.18 | % | 1.50 | % | 1.57 | % | 1.81 | % | ||||||||||
Non-performing loans as a percent of total assets
|
0.97 | % | 0.96 | % | 1.09 | % | 1.15 | % | 1.47 | % | ||||||||||
Per Share Related Data:
|
||||||||||||||||||||
Basic and diluted earnings per share
|
$ | 0.06 | $ | (0.09 | ) | $ | 0.06 | $ | (0.26 | ) | n/a | |||||||||
Dividends declared per share
|
$ | 0.03 | $ | 0.03 | $ | - | $ | - | n/a | |||||||||||
Capital Ratios:
|
||||||||||||||||||||
Equity to total assets at end of period
|
14.92 | % | 15.58 | % | 15.20 | % | 16.12 | % | 6.60 | % | ||||||||||
Average equity to average assets
|
15.36 | % | 15.65 | % | 15.60 | % | 6.70 | % | 6.68 | % | ||||||||||
Total capital to risk-weighted assets
|
21.84 | % | 22.38 | % | 24.21 | % | 25.46 | % | 10.38 | % | ||||||||||
Tier I capital to risk-weighted assets
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20.59 | % | 21.13 | % | 22.96 | % | 24.20 | % | 9.13 | % | ||||||||||
Tier I capital to total average assets
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15.58 | % | 15.51 | % | 15.55 | % | 17.48 | % | 6.77 | % | ||||||||||
Total equity to total average assets
|
15.27 | % | 15.20 | % | 15.40 | % | 17.32 | % | 6.61 | % |
March 31, 2012
|
December 31,
2011
|
March 31, 2011
|
||||||||||
(Dollars in thousands)
|
(Unaudited)
|
(Audited)
|
(Unaudited)
|
|||||||||
Assets
|
||||||||||||
Cash and due from banks
|
$ | 38,280 | $ | 40,296 | $ | 25,465 | ||||||
Federal funds sold
|
93,000 | 50,000 | 50,000 | |||||||||
Cash and cash equivalents
|
131,280 | 90,296 | 75,465 | |||||||||
Securities held-to-maturity, at amortized cost
|
3,216 | 3,216 | 3,672 | |||||||||
Securities available-for-sale, at fair value
|
115,956 | 135,170 | 142,548 | |||||||||
Loans held for sale
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3,408 | 1,039 | 378 | |||||||||
Loans, net
|
1,326,107 | 1,295,177 | 1,157,835 | |||||||||
Premises and equipment, net
|
21,293 | 21,379 | 21,741 | |||||||||
Federal Home Loan Bank of Boston stock, at cost
|
7,137 | 7,449 | 7,449 | |||||||||
Accrued income receivable
|
4,304 | 4,185 | 4,154 | |||||||||
Bank-owned life insurance
|
36,701 | 30,382 | 19,830 | |||||||||
Deferred income taxes
|
13,672 | 13,907 | 11,424 | |||||||||
Prepaid expenses and other assets
|
14,155 | 15,450 | 10,143 | |||||||||
Total assets
|
$ | 1,677,229 | $ | 1,617,650 | $ | 1,454,639 | ||||||
Liabilities and Stockholders' Equity
|
||||||||||||
Deposits
|
||||||||||||
Interest-bearing
|
$ | 1,033,981 | $ | 981,057 | $ | 1,008,576 | ||||||
Noninterest-bearing
|
215,602 | 195,625 | 162,920 | |||||||||
1,249,583 | 1,176,682 | 1,171,496 | ||||||||||
FHLB advances
|
63,000 | 63,000 | 68,000 | |||||||||
Repurchase agreement borrowings
|
21,000 | 21,000 | 21,000 | |||||||||
Repurchase liabilities
|
55,713 | 64,466 | 70,209 | |||||||||
Accrued expenses and other liabilities
|
37,737 | 40,522 | 27,957 | |||||||||
Total liabilities
|
1,427,033 | 1,365,670 | 1,358,662 | |||||||||
Commitments and contingencies
|
- | - | - | |||||||||
Stockholders' Equity
|
||||||||||||
Common stock
|
179 | 179 | - | |||||||||
Additional paid-in-capital
|
174,884 | 174,836 | - | |||||||||
Unallocated common stock held by ESOP
|
(13,031 | ) | (10,490 | ) | - | |||||||
Retained earnings
|
93,392 | 92,937 | 98,529 | |||||||||
Accumulated other comprehensive loss
|
(5,228 | ) | (5,482 | ) | (2,552 | ) | ||||||
Total stockholders' equity
|
250,196 | 251,980 | 95,977 | |||||||||
Total liabilities and stockholders' equity
|
$ | 1,677,229 | $ | 1,617,650 | $ | 1,454,639 |
Three Months Ended
|
||||||||
March 31,
|
||||||||
2012
|
2011
|
|||||||
(Dollars in thousands, except per share data)
|
||||||||
Interest income
|
||||||||
Interest and fees on loans
|
||||||||
Mortgage | $ | 11,110 | $ | 10,548 | ||||
Other | 3,889 | 3,612 | ||||||
Interest and dividends on investments
|
||||||||
United States Government and agency obligations | 266 | 435 | ||||||
Other bonds | 58 | 52 | ||||||
Corporate stocks
|
70 | 67 | ||||||
Other interest income
|
34 | 17 | ||||||
Total interest income
|
15,427 | 14,731 | ||||||
Interest expense
|
||||||||
Deposits
|
1,755 | 1,952 | ||||||
Interest on borrowed funds
|
481 | 525 | ||||||
Interest on repo borrowings
|
180 | 179 | ||||||
Interest on repurchase liabilities
|
57 | 124 | ||||||
Total interest expense
|
2,473 | 2,780 | ||||||
Net interest income
|
12,954 | 11,951 | ||||||
Provision for allowance for loan losses
|
330 | 300 | ||||||
Net interest income after provision for loan losses
|
12,624 | 11,651 | ||||||
Noninterest income
|
||||||||
Fees for customer services
|
816 | 787 | ||||||
Net gain on loans sold
|
98 | 146 | ||||||
Brokerage and insurance fee income
|
25 | 124 | ||||||
Bank owned life insurance income
|
319 | 174 | ||||||
Other
|
55 | 50 | ||||||
Total noninterest income
|
1,313 | 1,281 | ||||||
Noninterest expense
|
||||||||
Salaries and employee benefits
|
7,424 | 6,568 | ||||||
Occupancy expense
|
1,190 | 1,237 | ||||||
Furniture and equipment expense
|
1,099 | 975 | ||||||
FDIC assessment
|
279 | 541 | ||||||
Marketing
|
606 | 473 | ||||||
Other operating expenses
|
2,031 | 1,867 | ||||||
Total noninterest expense
|
12,629 | 11,661 | ||||||
Income before income taxes
|
1,308 | 1,271 | ||||||
Provision for income taxes
|
317 | 255 | ||||||
Net income
|
$ | 991 | $ | 1,016 | ||||
Net income per share:
|
||||||||
Basic and Diluted
|
$ | 0.06 | N/A | |||||
Weighted average shares outstanding:
|
||||||||
Basic and Diluted
|
16,784,974 | N/A | ||||||
Pro forma net income per share (1):
|
||||||||
Basic and Diluted
|
N/A | $ | 0.06 | |||||
(1)= Pro forma net income per share assumes the Company's shares are outstanding for all periods
|
||||||||
prior to the completion of the Plan of Conversion and Reorganization on June 29, 2011.
|
Three Months Ended March 31,
|
||||||||||||||||||||||||
2012
|
2011
|
|||||||||||||||||||||||
Average
Balance
|
Interest
and
Dividends
|
Yield/Cost
|
Average
Balance
|
Interest and Dividends
|
Yield/Cost
|
|||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans receivable, net
|
$ | 1,315,786 | $ | 14,999 | 4.57 | % | $ | 1,163,411 | $ | 14,160 | 4.94 | % | ||||||||||||
Securities
|
132,561 | 385 | 1.16 | % | 160,924 | 548 | 1.38 | % | ||||||||||||||||
Federal Home Loan Bank of Boston stock
|
7,370 | 9 | 0.49 | % | 7,449 | 6 | 0.33 | % | ||||||||||||||||
Fed Funds and other earning assets
|
66,714 | 34 | 0.20 | % | 33,731 | 17 | 0.20 | % | ||||||||||||||||
Total interest-earning assets
|
1,522,431 | 15,427 | 4.06 | % | 1,365,515 | 14,731 | 4.38 | % | ||||||||||||||||
Noninterest-earning assets
|
116,374 | 87,224 | ||||||||||||||||||||||
Total assets
|
$ | 1,638,805 | $ | 1,452,739 | ||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
NOW accounts
|
$ | 204,932 | $ | 89 | 0.17 | % | $ | 239,925 | $ | 183 | 0.31 | % | ||||||||||||
Money market
|
262,320 | 544 | 0.83 | % | 179,600 | 412 | 0.93 | % | ||||||||||||||||
Savings accounts
|
161,626 | 61 | 0.15 | % | 140,055 | 69 | 0.20 | % | ||||||||||||||||
Certificates of deposit
|
381,985 | 1,061 | 1.11 | % | 441,597 | 1,288 | 1.18 | % | ||||||||||||||||
Total interest-bearing deposits
|
1,010,863 | 1,755 | 0.70 | % | 1,001,177 | 1,952 | 0.79 | % | ||||||||||||||||
Advances from the Federal Home Loan Bank
|
63,042 | 481 | 3.06 | % | 68,100 | 525 | 3.13 | % | ||||||||||||||||
Repurchase Agreement Borrowing
|
21,000 | 180 | 3.44 | % | 21,000 | 179 | 3.46 | % | ||||||||||||||||
Repurchase liabilities
|
58,067 | 57 | 0.39 | % | 82,122 | 124 | 0.61 | % | ||||||||||||||||
Total interest-bearing liabilities
|
1,152,972 | 2,473 | 0.86 | % | 1,172,399 | 2,780 | 0.96 | % | ||||||||||||||||
Noninterest-bearing deposits
|
195,192 | 155,790 | ||||||||||||||||||||||
Other noninterest-bearing liabilities
|
38,932 | 27,515 | ||||||||||||||||||||||
Total liabilities
|
1,387,096 | 1,355,704 | ||||||||||||||||||||||
Stockholders' equity
|
251,709 | 97,035 | ||||||||||||||||||||||
Total liabilities and stockholders' equity
|
$ | 1,638,805 | $ | 1,452,739 | ||||||||||||||||||||
Net interest income
|
$ | 12,954 | $ | 11,951 | ||||||||||||||||||||
Net interest rate spread (1)
|
3.20 | % | 3.42 | % | ||||||||||||||||||||
Net interest-earning assets (2)
|
$ | 369,459 | $ | 193,116 | ||||||||||||||||||||
Net interest margin (3)
|
3.41 | % | 3.55 | % | ||||||||||||||||||||
Average interest-earning assets to
average interest-bearing liabilities
|
132.04 | % | 116.47 | % | ||||||||||||||||||||
(1) Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost
|
||||||||||||||||||||||||
of average interest-bearing liabilities.
|
||||||||||||||||||||||||
(2) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
|
||||||||||||||||||||||||
(3) Net interest margin represents net interest income divided by average total interest-earning assets.
|