EX-99.1 2 ex99-1.htm EXHIBIT 99.1 PRESS RELEASE ex99-1.htm
 


First Connecticut Bancorp, Inc. Announces Fourth Quarter 2012 Results

Farmington, Connecticut, March 1, 2013 – First Connecticut Bancorp, Inc. (the “Company”) (NASDAQ: FBNK), the holding company for Farmington Bank (the “Bank”), reported net income of $3.4 million or $0.20 per diluted share for the quarter ended December 31, 2012 compared to a net loss of $1.1 million or ($0.07) per diluted share for the quarter ended September 30, 2012.  For the year ended December 31, 2012, net income was $4.2 million or $0.25 per diluted share compared to a net loss of $4.0 million or ($0.29) per diluted share for the year ended December 31, 2011.

“We are pleased with our results for the quarter and year end, which are beginning to reflect the significant strategic investments made in our company over the past several years. Demonstrated organic loan and deposit growth in the markets we operate, will continue to build franchise and shareholder value,” stated John J. Patrick, Jr., First Connecticut Bancorp’s Chairman, President & CEO.

“We opened two new branches during 2012, increasing our geographical footprint and opened our 20th branch location in Newington CT on February 26, 2013 as we continue to strategically expand within our market,” added Patrick.

Financial Highlights

·  
Net interest income remained strong increasing $705,000 or 5% to $14.1 million for the quarter ended December 31, 2012 and $5.0 million or 10% to $53.2 million for the year ended December 31, 2012, despite a faster than anticipated decline in our resort loans as we continue our planned exit of the resort financing market.

·  
Strong organic loan growth continued as total loans increased $34.1 million or 2% to $1.5 billion during the quarter ended December 31, 2012 and increased $223.9 million or 17% for the year ended December 31, 2012.  This growth was achieved despite resort loans decreasing $18.5 million or 37% to $31.2 million for the quarter ended December 31, 2012 and decreasing $44.1 million or 59% for the year ended December 31, 2012.

·  
Overall deposits increased $72.5 million or 6% to $1.3 billion during the quarter ended December 31, 2012 and increased $153.8 million or 13% for the year ended December 31, 2012.
 
·
Checking accounts grew by 4% or 1,258 net new accounts for the quarter ended December 31, 2012 and 17% or 5,066 net new accounts for the year ended December 31, 2012.
 
 
 
 
·
Continued expansion of the secondary market residential lending program led to an increase in the net gain on loans sold of $1.3 million or 182% to $1.9 million for the quarter ended December 31, 2012 compared to $687,000 for the quarter ended September 30, 2012. The net gain on loans sold increased $2.5 million or 370% to $3.2 million for the year ended December 31, 2012 compared to $671,000 for the year ended December 31, 2011.

·  
Asset quality remains strong as loan delinquencies 30 days and greater decreased $751,000 at December 31, 2012 to $17.1 million compared to $17.8 million at September 30, 2012.  Non-performing loans totaled $13.8 million or 0.90% of total loans at December 31, 2012 compared to $13.2 million or 0.88% of total loans at September 30, 2012.  Net charge-offs totaled $1.7 million or 0.12% of average loans outstanding for the year ended December 31, 2012 as compared to net charge-offs of $7.3 million or 0.61% of average loans outstanding for the year ended December 31, 2011.

·  
On December 27, 2012, the Company announced the freeze of its non-contributory defined benefit and other post-retirement plans effective February 28, 2013 limiting future growth in the Company’s pension and other post-retirement liabilities.  As a result, the Company recognized a $1.9 million reduction in pension and other post-retirement benefit expenses related to unrecognized prior service costs for the quarter ended December 31, 2012.  For 2013, it is expected the net incremental decrease in pension and other post-retirement expenses will be approximately $606,000.

·  
We paid a cash dividend of $0.03 per share on December 27, 2012. This marks the fifth consecutive quarter we have paid a dividend since First Connecticut Bancorp, Inc. became a public company on June 29, 2011.

Earnings Summary

Fourth quarter 2012 compared with third quarter 2012

For the quarter ended December 31, 2012, net income increased by $4.5 million to $3.4 million compared to a net loss of $1.1 million for the quarter ended September 30, 2012.  The increase in net income primarily resulted from a decrease in noninterest expenses due to the initial vesting of the 2012 Stock Incentive Plan (the “Plan”) awards granted during the quarter ended September 30, 2012 and the impact of the freeze of our non-contributory defined benefit and other post-retirement benefit plans.  The increase also resulted from an increase in net interest income due to prepayment penalty fees and an increase in noninterest income as we continue to expand our secondary market residential lending program.

Net interest income for the quarter ended December 31, 2012 increased $705,000 to $14.1 million compared to $13.4 million for the quarter ended September 30, 2012, primarily as a result of a $761,000 increase in prepayment penalty fees received from commercial borrowers during the quarter ended December 31, 2012.  The net interest margin increased 9 basis points to 3.37% for the quarter ended December 31, 2012 compared to 3.28% for the quarter ended September 30, 2012 and the yield on average interest-earning assets increased 9 basis points to 3.95% for the quarter ended December 31, 2012 from 3.86% for the quarter ended September 30, 2012.  The cost of average interest-earning liabilities decreased 1 basis point to 0.76% for the quarter ended December 31, 2012, reflecting the low funding cost environment.

Provision for loan losses was $315,000 for the quarter ended December 31, 2012 compared to $215,000 for the quarter ended September 30, 2012.  The increase in the provision was primarily due to growth in our residential and commercial loan portfolios.  The provision recorded was based upon management’s analysis of the adequacy of allowance for loan losses as of December 31, 2012.
 
 
 
 
Noninterest income increased $1.9 million or 89% to $4.1 million for the quarter ended December 31, 2012 compared to $2.1 million for the quarter ended September 30, 2012, primarily due to a $1.3 million increase in the gain on sale of fixed-rate residential mortgage loans due to an expansion in our secondary market residential lending program, an increase of $245,000 in bank-owned life insurance income and an increase of $320,000 in other noninterest income, primarily related to an increase in mortgage banking derivatives.
 
Noninterest expense decreased $3.9 million for the quarter ended December 31, 2012 to $13.0 million compared to $16.9 million for the quarter ended September 30, 2012 primarily due to decreases in employee benefits and other operating expenses.  Salaries and employee benefits decreased $3.1 million to $7.1 million compared to $10.2 million for the quarter ended September 30, 2012.  The decrease was due to a $1.9 million reduction in pension and other post-retirement benefits expense related to unrecognized prior service costs as a result of the freeze of our non-contributory defined benefit and other post-retirement benefit plans.  The decrease was also due to $2.1 million incurred from the initial vesting of the Plan awards granted during the quarter ended September 30, 2012, offset by a $533,000 increase in compensation expense related to incentive compensation and additional staff to support our growth.  Other operating expenses decreased $875,000 to $2.8 million compared to $3.7 million for the quarter ended September 30, 2012.  The decrease was primarily due to directors’ stock compensation expense totaling $228,000 related to the Plan for the quarter ended December 31, 2012 compared to $977,000 in directors’ stock compensation expense incurred related to the Plan, of which $914,000 resulted from the initial vesting of the Plan awards and a $394,000 loss on the sale of non-strategic properties during the quarter ended September 30, 2012.

Income taxes increased $1.9 million resulting in a tax expense of $1.4 million for the quarter ended December 31, 2012 compared to a tax benefit of $519,000 for the quarter ended September 30, 2012.

Year ended 2012 compared with year ended 2011

For the year ended December 31, 2012, net income increased by $8.2 million to $4.2 million compared to a net loss of $4.0 million for the year ended December 31, 2011, which primarily resulted from a $5.2 million expense incurred, net of taxes, for a stock contribution made to the Farmington Bank Community Foundation, Inc. and an $851,000 expense incurred to complete the phase out the Phantom Stock Plan. The improved performance also resulted from increases in net interest income and noninterest income, and decreases in the provision for loan losses and noninterest expenses.

Net interest income increased $5.0 million or 10% to $53.2 million for the year ended December 31, 2012 compared to $48.2 million for the year ended December 31, 2011, driven by loan growth, an increase in prepayment penalty fees and lower funding costs.  The net interest margin increased 12 basis points to 3.35% for the year ended December 31, 2012 compared to 3.23% for the year ended December 31, 2011.  The yield on average interest-earning assets remained flat at 3.96% as a result of offsetting record low residential rates with an increase in our commercial lending and an increase in prepayment penalty fees.  The average net loans receivable yield decreased 41 basis points to 4.35%, which was offset with an $846,000 increase in prepayment penalty fees and average loan balances increasing $216.0 million or 18% for the year ended December 31, 2012.  The cost of average interest-earning liabilities decreased 11 basis points to 0.80% for the year ended December 31, 2012 reflecting lower funding costs.
 
 
 
Provision for loan losses was $1.4 million for the year ended December 31, 2012 compared to $4.1 million for the year ended December 31, 2011. The decrease in the provision resulted from reserving approximately $3.2 million in the fourth quarter of 2011 due to deterioration in commercial real estate loans originated prior to 2008.  The provision recorded was based upon management’s analysis of the allowance for loan losses as of December 31, 2012.

Noninterest income increased $3.8 million or 67% to $9.5 million for the year ended December 31, 2012 compared to $5.7 million for the year ended December 31, 2011.  Gain on sale of fixed-rate residential mortgage loans increased $2.5 million or 370% to $3.2 million compared to $671,000 for the year ended December 31, 2011 due to an expansion in our secondary market residential lending program.  Bank-owned life insurance income increased $812,000 reflecting the purchase of additional insurance within the past twelve months.  Fees for customer services increased $359,000 or 11% and other income increased $306,000 primarily due to an increase in the mortgage banking derivatives.

Noninterest expense decreased $620,000 or 1% to $55.7 million for the year ended December 31, 2012 compared to $56.3 million for the year ended December 31, 2011.  Salaries and employee benefits increased $3.8 million to $32.4 million compared to $28.6 million for the year ended December 31, 2011.  Excluding the $1.9 million reduction in pension and other post-retirement benefits expense due to the freeze of our non-contributory defined benefit and other post-retirement benefit plans and the $851,000 incurred to phase out the Phantom Stock Plan for the year ended December 31, 2011, salaries and employee benefits increased $6.5 million for the year ended December 31, 2012.  The increase was due to supporting our de novo branch growth, providing the resources to sustain our strategic growth and $2.8 million of employees’ stock compensation expense incurred related to the Plan.  Other operating expenses increased $2.4 million to $10.7 million compared to $8.3 million for the year ended December 31, 2011.  The increase was primarily due to directors’ stock compensation expense totaling $1.2 million related to the Plan implemented in the current year, a $394,000 loss on the sale of non-strategic properties and a $430,000 increase in office expense to support our growth.

Income taxes increased $3.9 million resulting in a tax expense of $1.5 million for the year ended December 31, 2012 compared to a tax benefit of $2.5 million for the year ended December 31, 2011 primarily due to the tax treatment for the $6.9 million funding of the Farmington Bank Community Foundation, Inc. in the prior year.

Balance Sheet Activity

Total assets increased $66.8 million or 4% at December 31, 2012 to $1.8 billion compared to September 30, 2012 reflecting an increase in loans and cash and cash equivalents.

Net loans increased $34.9 million at December 31, 2012 to $1.5 billion compared to September 30, 2012 due to our continued focus on commercial and residential lending which, combined, increased $53.4 million offset by an $18.5 million decrease in resort loans due to a strategic decision in 2010 to gradually exit the resort financing market.  Loan portfolios grew as follows: Commercial Real Estate, $25.1 million or 6%; Construction Real Estate, $9.4 million or 17%; Residential Real Estate, $15.2 million or 3% and Home Equity Lines of Credit, $8.2 million or 6%.

Deposits increased $72.5 million at December 31, 2012 compared to September 30, 2012, primarily due to continued growth in de novo branches, a $15.0 million increase in non-interest bearing deposits due to individual and commercial account growth and a $17.5 million increase in municipal deposits.  We opened our 19th branch in South Windsor, Connecticut in November 2012.
 
 
 
Asset Quality

The allowance for loan losses decreased $691,000 to $17.2 million at December 31, 2012 compared to $17.9 million at September 30, 2012.  Impaired loans decreased 3% to $36.9 million as of December 31, 2012 from $37.9 million as of September 30, 2012.  Non-performing loans increased $542,000 to $13.8 million at December 31, 2012 from $13.2 million at September 30, 2012 and remained stable at 0.90% of total loans. At December 31, 2012, the allowance for loan losses represented 1.12% of total loans and 125.01% of non-performing loans, compared to 1.19% of total loans and 135.35% of non-performing loans at September 30, 2012.  Net charge-offs for the quarter ended December 31, 2012 were $1.0 million or 0.27% (annualized), compared to net charge-offs for the quarter ended September 30, 2012 of $222,000 or 0.06% (annualized). Loan delinquencies 30 days and greater decreased $751,000 at December 31, 2012 to $17.1 million compared to $17.8 million at September 30, 2012.

Capital and Liquidity

The Company remained well-capitalized with an estimated total capital to risk-weighted asset ratio of 18.85% at December 31, 2012.

At December 31, 2012, the Company continued to have adequate liquidity including significant unused borrowing capacity at the Federal Home Loan Bank and the Federal Reserve Bank, as well as access to funding through brokered deposits.

About First Connecticut Bancorp, Inc.

First Connecticut Bancorp, Inc. (NASDAQ: FBNK) is a Maryland-chartered stock holding company, that wholly owns Farmington Bank. Farmington Bank is a full-service, community bank with 20 branch locations throughout central Connecticut. Established in 1851, Farmington Bank is a diversified consumer and commercial bank with an ongoing commitment to contribute to the betterment of the communities in our region. For more information regarding the Bank’s products and services and for First Connecticut Bancorp, Inc. investor relations information, please visit www.farmingtonbankct.com.

Forward Looking Statements

In addition to historical information, this earnings release may contain forward-looking statements for purposes of applicable securities laws. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Such forward-looking statements may or may not include words such as “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” Forward-looking statements are subject to numerous assumptions, risks and uncertainties. There are a number of important factors described in documents previously filed by the Company with the Securities and Exchange Commission, and other factors that could cause the Company's actual results to differ materially from those contemplated by such forward-looking statements. The Company undertakes no obligation to publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.

Financial information contained in this release should be considered to be an estimate pending the filing with the Securities and Exchange Commission of the Company's Annual Report on Form 10-K for the year ended December 31, 2012. While the Company is not aware of any need to revise the results disclosed in this release, accounting literature may require adverse information received by management between the date of this release and the filing of the 10-K to be reflected in the results of the period, even though the new information was received by management subsequent to the date of this release.
 
 
 
First Connecticut Bancorp, Inc.
Selected Financial Data (Unaudited)
    At or for the Three Months Ended
(Dollars in thousands, except per share data)
December 31,
2012
September
30, 2012
June 30,
2012
March 31,
2012
December 31,
2011
Selected Financial Condition Data:
                  
                   
Total assets
 $    1,822,946
  
 $  1,756,133
  
 $1,687,431
  
 $  1,677,229
  
 $    1,617,650
Cash and cash equivalents
           50,641
  
         33,021
  
       36,727
  
        131,280
  
           90,296
Held to maturity securities
             3,006
  
           3,007
  
         3,007
  
           3,216
  
             3,216
Available for sale securities
         138,481
  
       125,854
  
      130,386
  
        115,956
  
          135,170
Federal Home Loan Bank of Boston stock, at cost
             8,939
  
           8,056
  
         7,137
  
           7,137
  
             7,449
Loans receivable, net
       1,520,170
  
    1,485,275
  
   1,415,732
  
     1,326,107
  
       1,295,177
Deposits
       1,330,455
  
    1,257,987
  
   1,218,743
  
     1,249,583
  
       1,176,682
Federal Home Loan Bank of Boston advances
         128,000
  
       125,200
  
       91,000
  
          63,000
  
           63,000
Total stockholders' equity
         241,522
  
       242,199
  
      248,105
  
        250,196
  
          251,980
Allowance for loan losses
           17,229
  
         17,920
  
       17,927
  
          17,727
  
           17,533
Non-performing loans
           13,782
  
         13,240
  
       13,478
  
          16,338
  
           15,501
                   
Selected Operating Data:
                  
                   
Interest income
 $        16,507
  
 $      15,780
  
 $     15,146
  
 $       15,427
  
 $         14,961
Interest expense
             2,415
  
           2,393
  
         2,347
  
           2,473
  
             2,614
    Net Interest Income
           14,092
  
         13,387
  
       12,799
  
          12,954
  
           12,347
    Provision for allowance for loan losses
                315
  
             215
  
            520
  
              330
  
             3,190
Net interest income after provision for loan losses
           13,777
  
         13,172
 
       12,279
  
          12,624
  
             9,157
Noninterest income
             4,054
  
           2,145
  
         1,978
  
           1,313
  
             1,250
Noninterest expense
           13,025
  
         16,905
  
       13,133
  
          12,629
  
           12,779
Income (loss) before income taxes
             4,806
  
          (1,588)
  
         1,124
  
           1,308
  
            (2,372)
Provision (benefit) for income taxes
             1,381
  
            (519)
  
            293
  
              317
  
               (918)
                   
Net income (loss)
 $          3,425
  
 $       (1,069)
 
 $         831
 
 $           991
  
 $         (1,454)
                   
Performance Ratios (annualized):
                  
                   
Return on average assets
0.77%
  
-0.25%
  
0.20%
  
0.24%
  
-0.35%
Return average equity
5.62%
  
-1.74%
  
1.32%
  
1.57%
  
-2.24%
Interest rate spread (1)
3.19%
  
3.09%
  
3.12%
  
3.20%
  
2.93%
Net interest rate margin (2)
3.37%
  
3.28%
  
3.32%
  
3.41%
  
3.15%
Non-interest expense to average assets
2.92%
  
3.89%
  
3.16%
  
3.08%
  
3.08%
Efficiency ratio (3)
71.78%
  
108.84%
  
88.87%
  
88.52%
  
93.98%
Average interest-earning assets to average
                
     interest-bearing liabilities
131.82%
  
131.77%
  
132.88%
  
132.04%
  
132.19%
                   
Asset Quality Ratios:
                  
                   
Allowance for loan losses as a percent of total loans
1.12%
  
1.19%
  
1.25%
  
1.32%
  
1.34%
Allowance for loan losses as a percent of
                
     non-performing loans
125.01%
  
135.35%
  
133.01%
  
108.50%
  
113.11%
Net charge-offs to average loans (annualized)
0.27%
  
0.06%
  
0.09%
  
0.04%
  
0.56%
Non-performing loans as a percent of total loans
0.90%
  
0.88%
  
0.94%
  
1.22%
  
1.18%
Non-performing loans as a percent of total assets
0.76%
  
0.75%
  
0.80%
  
0.97%
  
0.96%
                   
Per Share Related Data:
                  
                   
Basic earnings (loss) per share
 $            0.20
  
 $         (0.07)
  
 $        0.05
  
 $          0.06
  
 $           (0.09)
Diluted earnings (loss) per share
 $            0.20
  
 $         (0.07)
  
 $        0.05
  
 $          0.06
  
 $           (0.09)
Dividends declared per share
 $            0.03
  
 $          0.03
  
 $        0.03
  
 $          0.03
  
 $            0.03
                   
Capital Ratios:
                  
                   
Equity to total assets at end of period
13.25%
  
13.79%
  
14.70%
  
14.92%
  
15.58%
Average equity to average assets
13.68%
  
14.19%
  
15.09%
  
15.36%
  
15.65%
Total capital to risk-weighted assets
18.85%
  
19.15%
  
20.43%
  
21.84%
  
22.38%
Tier I capital to risk-weighted assets
17.60%
  
17.90%
  
19.18%
  
20.59%
  
21.13%
Tier I capital to total average assets
13.94%
  
14.24%
  
15.21%
  
15.58%
  
15.51%
Total equity to total average assets
13.56%
  
13.95%
  
14.90%
  
15.27%
  
15.20%
                   
                   
(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.
    
 
 
First Connecticut Bancorp, Inc.
Consolidated Statements of Condition
 
             
December 31,
2012
September 30,
2012
December 31,
2011
(Dollars in thousands)
(Unaudited)
  
(Unaudited)
    
Assets
                
Cash and due from banks
$            50,641
  
$            33,021
  
$            40,296
Federal funds sold
-
  
-
  
50,000
 
Cash and cash equivalents
50,641
  
33,021
  
90,296
Securities held-to-maturity, at amortized cost
3,006
  
3,007
  
3,216
Securities available-for-sale, at fair value
138,481
  
125,854
  
135,170
Loans held for sale
9,626
  
4,569
  
1,039
Loans, net
  
1,520,170
  
1,485,275
  
1,295,177
Premises and equipment, net
19,967
  
19,231
  
21,379
Federal Home Loan Bank of Boston stock, at cost
8,939
  
8,056
  
7,449
Accrued income receivable
4,415
  
4,502
  
4,185
Bank-owned life insurance
37,449
  
37,348
  
30,382
Deferred income taxes
15,682
  
14,038
  
13,907
Prepaid expenses and other assets
14,570
  
21,232
  
15,450
         
Total assets
$       1,822,946
  
$       1,756,133
  
$       1,617,650
Liabilities and Stockholders' Equity
          
Deposits
              
 
Interest-bearing
$       1,082,869
  
$       1,036,523
  
$          981,057
 
Noninterest-bearing
247,586
  
221,464
  
195,625
             
1,330,455
  
1,257,987
  
1,176,682
Federal Home Loan Bank of Boston advances
128,000
  
125,200
  
63,000
Repurchase agreement borrowings
21,000
  
21,000
  
21,000
Repurchase liabilities
54,187
  
66,096
  
64,466
Accrued expenses and other liabilities
47,782
  
43,651
  
40,522
         
Total liabilities
1,581,424
  
1,513,934
  
1,365,670
                       
Commitments and contingencies
-
  
-
  
-
Stockholders' Equity
          
 
Common stock
181
  
181
  
179
 
Additional paid-in-capital
172,247
  
171,419
  
174,836
 
Unallocated common stock held by ESOP
(14,806)
  
(15,073)
  
(10,490)
 
Treasury stock, at cost
(4,860)
  
(1,174)
  
                    -
 
Retained earnings
95,145
  
92,076
  
92,937
 
Accumulated other comprehensive loss
(6,385)
  
(5,230)
  
(5,482)
         
Total stockholders' equity
241,522
  
242,199
  
251,980
         
Total liabilities and stockholders' equity
$       1,822,946
  
$       1,756,133
  
$       1,617,650
 
 
 
 
First Connecticut Bancorp, Inc.
Consolidated Statements of Operations (Unaudited)
 
   
Three Months Ended
    
For The Years Ended
  
   
Dec 31,
    
Sept 30
    
Dec 31,
    
Dec 31,
  
(Dollars in thousands, except per share data)
  
2012
    
2012
    
2011
    
2012
    
2011
  
Interest income
                              
Interest and fees on loans
                              
Mortgage
   $ 12,415     $ 11,460     $ 10,836     $ 45,867     $ 42,552  
Other
     3,770       3,927       3,652       15,445       14,331  
Interest and dividends on investments
                                        
United States Government and agency obligations
     190       234       269       939       1,373  
Other bonds
     61       87       51       266       191  
Corporate stocks
     66       69       69       275       275  
Other interest income
     5       3       84       68       303  
Total interest income
     16,507       15,780       14,961       62,860       59,025  
Interest expense
                                        
Deposits
     1,649       1,644       1,873       6,691       7,665  
Interest on borrowed funds
     511       499       486       1,953       2,061  
Interest on repo borrowings
     187       179       181       727       721  
Interest on repurchase liabilities
     68       71       74       257       379  
Total interest expense
     2,415       2,393       2,614       9,628       10,826  
Net interest income
     14,092       13,387       12,347       53,232       48,199  
Provision for allowance for loan losses
     315       215       3,190       1,380       4,090  
Net interest income
                                        
after provision for loan losses
     13,777       13,172       9,157       51,852       44,109  
Noninterest income
                                        
Fees for customer services
     1,048       950       856       3,714       3,355  
Net gain on sale of investments
     -       -       -       -       89  
Net gain on loans sold
     1,935       687       42       3,151       671  
Brokerage and insurance fee income
     32       34       25       123       189  
Bank owned life insurance income
     571       326       200       1,537       725  
Other
     468       148       127       965       659  
Total noninterest income
     4,054       2,145       1,250       9,490       5,688  
Noninterest expense
                                        
Salaries and employee benefits
     7,156       10,243       7,499       32,442       28,605  
Occupancy expense
     1,095       1,108       1,074       4,491       4,534  
Furniture and equipment expense
     1,050       1,120       1,044       4,381       4,047  
FDIC assessment
     342       255       340       1,170       1,466  
Marketing
     587       509       838       2,455       2,474  
Contribution to Farmington Bank
                                        
Community Foundation, Inc.
     -       -       -       -       6,877  
Other operating expenses
     2,795       3,670       1,984       10,753       8,309  
Total noninterest expense
     13,025       16,905       12,779       55,692       56,312  
Income (loss) before income taxes
     4,806       (1,588 )     (2,372 )     5,650       (6,515 )
Provision for (benefit from) income taxes
     1,381       (519 )     (918 )     1,472       (2,475 )
Net income (loss)
   $ 3,425     $ (1,069 )   $ (1,454 )   $ 4,178     $ (4,040 )
                                         
Earnings (loss) per share (1):
                                        
Basic and Diluted
   $ 0.20     $ (0.07 )   $ (0.09 )   $ 0.25     $ (0.29 )
                                         
Weighted average shares outstanding:
                                        
Basic and Diluted
     17,192,767       16,309,325       17,344,666       16,643,566       17,145,031  
                                         
Pro forma net loss per share (2):
                                        
Basic and Diluted
     N/A       N/A       N/A       N/A     $ (0.23 )
                                         
(1)= For the year ended December 31, 2011, net loss per share reflects earnings for the period from June 29, 2011, the date the Company completed a Plan of Conversion and Reorganization to December 31, 2011.
  
(2)= Pro forma net loss 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.
  
 
 
 
First Connecticut Bancorp, Inc.
Consolidated Average Balances, Yields and Rates (Unaudited)
 
Three Months Ended
Three Months Ended
Three Months Ended
 
December 31, 2012
September 30, 2012
December 31, 2011
 
Average
Balance
Interest and Dividends
Yield/
Cost
Average Balance
Interest and Dividends
Yield/
Cost
Average
Balance
Interest and Dividends
Yield/
Cost
(Dollars in thousands)
                      
Interest-earning assets:
                      
Loans, net
 $ 1,504,834
 $ 16,185
4.28%
  
 $ 1,460,686
 $ 15,387
4.18%
  
 $1,251,274
14,488
4.59%
Securities
139,636
308
0.88%
  
141,607
380
1.06%
  
149,503
389
1.03%
Federal Home Loan Bank of Boston stock
8,670
9
0.41%
  
7,671
10
0.52%
  
7,449
            -
0.00%
Federal funds and other earning assets
10,598
5
0.19%
  
10,317
3
0.12%
  
148,832
84
0.22%
Total interest-earning assets
1,663,738
16,507
3.95%
  
1,620,281
15,780
3.86%
  
1,557,058
14,961
3.81%
Noninterest-earning assets
118,033
      
115,860
      
100,189
    
Total assets
 $ 1,781,771
      
 $ 1,736,141
      
 $1,657,247
    
                       
Interest-bearing liabilities:
                      
NOW accounts
 $    215,266
 $      117
0.22%
  
 $    207,763
 $      100
0.19%
  
 $   233,946
116
0.20%
Money market
       299,408
         487
0.65%
  
       280,572
         498
0.70%
  
233,650
510
0.87%
Savings accounts
178,959
99
0.22%
  
172,494
67
0.15%
  
155,990
129
0.33%
Certificates of deposit
358,047
946
1.05%
  
361,648
979
1.07%
  
398,210
1,118
1.11%
Total interest-bearing deposits
1,051,680
1,649
0.62%
  
1,022,477
1,644
0.64%
  
1,021,796
1,873
0.73%
Advances from the Federal Home Loan Bank
118,339
511
1.72%
  
112,850
499
1.75%
  
63,001
486
3.06%
Repurchase agreement borrowings
21,000
187
3.54%
  
21,000
179
3.38%
  
21,000
181
3.42%
Repurchase liabilities
71,115
68
0.38%
  
73,268
71
0.38%
  
72,112
74
0.41%
Total interest-bearing liabilities
1,262,134
2,415
0.76%
  
1,229,595
2,393
0.77%
  
1,177,909
2,614
0.88%
Noninterest-bearing deposits
232,286
      
216,205
      
187,008
    
Other noninterest-bearing liabilities
43,663
      
43,965
      
32,938
    
Total liabilities
1,538,083
      
1,489,765
      
1,397,855
    
Stockholders' equity
243,688
      
246,376
      
259,392
    
Total liabilities and stockholders' equity
 $ 1,781,771
      
 $ 1,736,141
      
 $1,657,247
    
                       
Net interest income
  
 $ 14,092
      
 $ 13,387
      
 $ 12,347
  
Net interest rate spread (1)
    
3.19%
      
3.09%
      
2.93%
Net interest-earning assets (2)
 $    401,604
      
 $    390,686
      
 $   379,149
    
Net interest margin (3)
    
3.37%
      
3.28%
      
3.15%
Average interest-earning assets
                      
   to average interest-bearing liabilities
  
131.82%
      
131.77%
      
132.19%
  
                       
(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.
 
 
 
 
 
First Connecticut Bancorp, Inc.
Consolidated Average Balances, Yields and Rates (Unaudited)
 
For The Years Ended December 31,
               
 
2012
  
2011
 
Average
Balance
Interest and
Dividends
Yield/Cost
  
Average
Balance
Interest and
Dividends
Yield/Cost
(Dollars in thousands)
              
Interest-earning assets:
              
Loans, net
 $     1,410,822
 $     61,312
4.35%
  
 $     1,194,804
 $      56,883
4.76%
Securities
           136,302
          1,443
1.06%
  
           152,213
           1,823
1.20%
Federal Home Loan Bank of Boston stock
7,714
37
0.48%
  
7,449
16
0.21%
Federal funds and other earning assets
33,521
68
0.20%
  
135,973
303
0.22%
Total interest-earning assets
1,588,359
62,860
3.96%
  
1,490,439
59,025
3.96%
Noninterest-earning assets
117,209
      
86,446
    
Total assets
 $     1,705,568
      
 $     1,576,885
    
               
Interest-bearing liabilities:
              
NOW accounts
 $        208,161
 $          389
0.19%
  
 $        252,381
 $           632
0.25%
Money market
           278,179
          2,017
0.73%
  
           208,985
           1,993
0.95%
Savings accounts
171,871
291
0.17%
  
149,598
334
0.22%
Certificates of deposit
367,380
3,994
1.09%
  
419,084
4,706
1.12%
Total interest-bearing deposits
1,025,591
6,691
0.65%
  
1,030,048
7,665
0.74%
Advances from the Federal Home Loan Bank
89,419
1,953
2.18%
  
66,314
2,061
3.11%
Repurchase agreement borrowings
21,000
727
3.46%
  
21,000
721
3.43%
Repurchase liabilities
66,436
257
0.39%
  
72,543
379
0.52%
Total interest-bearing liabilities
1,202,446
9,628
0.80%
  
1,189,905
10,826
0.91%
Noninterest-bearing deposits
213,697
      
176,459
    
Other noninterest-bearing liabilities
41,223
      
30,018
    
Total liabilities
1,457,366
      
1,396,382
    
Stockholders' equity
248,202
      
180,503
    
Total liabilities and stockholders' equity
 $     1,705,568
      
 $     1,576,885
    
               
Net interest income
  
 $     53,232
      
 $      48,199
  
Net interest rate spread (1)
    
3.16%
      
3.05%
Net interest-earning assets (2)
 $        385,913
      
 $        300,534
    
Net interest margin (3)
    
3.35%
      
3.23%
Average interest-earning assets
              
   to average interest-bearing liabilities
  
132.09%
      
125.26%
  
               
(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.