EX-99.1 2 ex99-1.htm EXHIBIT 99.1 PRESS RELEASE AND FINANCIALS ex99-1.htm
Exhibit 99.1

First Connecticut Bancorp, Inc. Announces First Quarter 2013 Results

FARMINGTON, Conn., April 30, 2013 – First Connecticut Bancorp, Inc. (the “Company”) (NASDAQ: FBNK), the holding company for Farmington Bank (the “Bank”), reported  net income of $813,000 or $0.05 per diluted share for the quarter ended March 31, 2013 compared to net income of $991,000 or $0.06 per diluted share for the quarter ended March 31, 2012.

“I am pleased to report our results for the first quarter which reflect continued organic franchise growth, reduction of core expenses and continued execution of our strategic plan to exit non-core business,” stated John J. Patrick Jr., First Connecticut Bancorp’s Chairman, President & CEO.

“During the quarter, our Company lost one of the key members of our executive management team, David Blitz, EVP & Director of Commercial Banking, who lost his valiant battle with cancer. Despite the loss of Dave, and a true testament to his legacy, commercial loan outstandings increased $41.5 million in the quarter, which were offset by a strategic decline of $16.0 million in the resort finance portfolio.”

“Dave’s presence will truly be missed by fellow colleagues, directors and the community,” added Patrick.

Financial Highlights

·  
Strong organic loan originations totaled approximately $100 million during the quarter resulting in a $41.7 million increase in our commercial and residential portfolios.

·  
Yield on average interest earning assets decreased 29 basis points to 3.66% for the quarter ended March 31, 2013 driven largely by a faster than anticipated decline in our resort portfolio and higher than normal prepayment penalty fee income in the linked quarter.  Excluding resort and prepayment penalty income for both periods, the yield on average interest earning assets decreased 11 basis points.

·  
Net interest income totaled $12.7 million in the first quarter of 2013 compared to $14.1 million in the linked quarter.

·  
Resort loans decreased $16.0 million to $15.3 million in the first quarter of 2013 compared to the linked quarter and decreased $54.5 million compared to the same period in the prior year as we continue to gradually exit the resort financing market.

·  
Overall deposits increased $45.6 million or 3% in the first quarter of 2013.

·  
Checking accounts grew by 4% or 1,543 net new accounts in the first quarter of 2013.

·  
Net gain on residential loans sold was $2.0 million for the quarter based on $61.8 million in loans sold compared to a net gain of $1.9 million on $57.9 million in loans sold during the linked quarter.
 
 
 
·  
Asset quality remains strong as loan delinquencies 30 days and greater decreased $1.9 million to $15.2 million on a linked quarter basis and decreased $3.0 million from a year ago. Non-accrual loans remained stable at 0.89% of total loans compared to 0.90% of total loans on a linked quarter basis. Net charge-offs totaled $296,000 at March 31, 2013 and $1.0 million at December 31, 2012, a decrease of $710,000.
 
·  
Our 20th branch opened in Newington, CT in February, 2013.

·  
Our tangible book value was $13.76 compared to $13.63 on a linked quarter basis and $13.99 from a year ago.

·  
We paid a cash dividend of $0.03 per share on March 18, 2013. This marks the sixth consecutive quarter we have paid a dividend since First Connecticut Bancorp, Inc. became a public company on June 29, 2011.

First quarter 2013 compared with fourth quarter 2012

Net interest income

·  
Net interest income decreased $1.4 million to $12.7 million in the first quarter of 2013 compared to the linked quarter due primarily to a decrease in commercial borrowers’ prepayment penalty fees, the planned decrease in the resort portfolio and lower yields on new loans originated during the quarter.

·  
Net interest margin decreased 30 basis points to 3.07% in the first quarter of 2013 compared to the linked quarter due primarily to a faster than anticipated decline in our resort portfolio and higher than normal prepayment penalty fees received from commercial borrowers in the linked quarter.  Excluding resort and prepayment penalty income for both periods, the net interest margin would have decreased 11 basis points.

·  
The cost of interest-bearing deposits remained flat at 62 basis points on a linked quarter basis.

Provision for loan losses

·  
Provision for loan losses was $399,000 for the quarter compared to $315,000 for the linked quarter.  The increase in the provision was primarily due to growth in our residential and commercial loan portfolios.

·  
Net charge-offs in the quarter were $296,000 or 0.08% to average loans (annualized) compared to $1.0 million or 0.27% to average loans (annualized) in the linked quarter.

Noninterest income

·  
Total noninterest income decreased $516,000 to $3.5 million compared to the linked quarter primarily due to decreases in mortgage banking derivatives of $349,000 and bank-owned life insurance proceeds of $141,000.
 
 
 
Noninterest expense

·  
Noninterest expense increased $1.3 million to $14.7 million in the first quarter of 2013 compared to the linked quarter.  Excluding one-time costs, total core noninterest expense decreased $832,000 compared to the linked quarter.  These costs were $633,000 in accelerated vesting of stock compensation due to the passing of a key executive in the current quarter and a $1.5 million reduction in employee benefits related to the freezing of our non-contributory defined benefit and other post-retirement benefit plans in the linked quarter.

·  
Salaries and employee benefits on a core basis decreased $641,000 compared to the linked quarter primarily due to a decrease in incentive compensation and other salary related costs.

·  
Occupancy expense increased $145,000 or 13%, mainly due to our strategic de novo branch growth.

Financial condition

·  
Total assets decreased $23.6 million or 1% at March 31, 2013 to $1.8 billion compared to December 31, 2012 reflecting decreases in cash and cash equivalents and securities available for sale offset by an increase in loans.

·  
Our investment portfolio totaled $111.8 million at March 31, 2013 compared to $141.2 million at December 31, 2012, a decrease of $29.5 million.

·  
Net loans increased $24.5 million at March 31, 2013 to $1.6 billion compared to December 31, 2012 due to our continued focus on commercial and residential lending which, combined, increased $41.7 million, offset by a $16.0 million decrease in resort loans as we exit the resort financing market.

·  
Deposits increased $45.6 million at March 31, 2013 compared to December 31, 2012, primarily due to continued growth in checking accounts and de novo branches.

·  
Federal Home Loan Bank of Boston advances decreased $52.0 million to $76.0 million, primarily due to a decrease in overnight borrowings at March 31, 2013 compared to December 31, 2012.

Asset Quality

·  
Loan delinquencies 30 days and greater decreased $1.9 million to $15.2 million at March 31, 2013 compared to December 31, 2012 driven largely by decreases in delinquencies in the residential portfolio.

·  
Non-accrual loans increased slightly to $13.9 million at March 31, 2013 compared to $13.8 million at December 31, 2012 and remained stable at 0.89% of total loans.

·  
Impaired loans increased 6% to $39.2 million at March 31, 2013 from $36.9 million at December 31, 2012 due primarily to one commercial loan, which is current and accruing.

·  
At March 31, 2013, the allowance for loan losses represented 1.11% of total loans and 124.59% of non-accrual loans, compared to 1.12% of total loans and 125.01% of non-accrual loans at December 31, 2012.

Capital and Liquidity

·  
The Company remained well-capitalized with an estimated total capital to risk-weighted asset ratio of 18.61% at March 31, 2013.
 
 
 
·  
At March 31, 2013, 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.

Non-GAAP Financial Measures
 
In addition to results presented in accordance with GAAP, this press release contains certain non-GAAP financial measures. A reconciliation of net income and other performance ratios, as adjusted, is included in the accompanying reconciliation of Non-GAAP Measures table.
 
We believe that providing certain non-GAAP financial measures provides investors with information useful in understanding our financial performance, our performance trends and financial position. Specifically, we provide measures based on what we believe are our operating earnings on a consistent basis and exclude non-core operating items which affect the GAAP reporting of results of operations. We utilize these measures for internal planning and forecasting purposes. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results, and we strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure.
 
 
 
 
 
First Connecticut Bancorp, Inc.
Selected Financial Data (Unaudited)
 
At or for the Three Months Ended
(Dollars in thousands, except per share data)
 
March 31, 2013
   December 31,
2012
   September 30,
2012
  
June 30,
2012
  
March 31,
2012
Selected Financial Condition Data:
                  
                   
Total assets
 $    1,799,392
  
 $   1,822,946
  
 $   1,756,133
  
 $  1,687,431
  
 $    1,677,229
Cash and cash equivalents
           34,946
  
          50,641
  
          33,021
  
          36,727
  
          131,280
Held to maturity securities
             3,003
  
            3,006
  
            3,007
  
           3,007
  
             3,216
Available for sale securities
         108,787
  
        138,241
  
        125,614
  
        130,146
  
          115,716
Federal Home Loan Bank of Boston stock, at cost
             8,383
  
            8,939
  
            8,056
  
           7,137
  
             7,137
Loans receivable, net
       1,544,687
  
     1,520,170
  
      1,485,275
  
     1,415,732
  
       1,326,107
Deposits
       1,376,092
  
     1,330,455
  
      1,257,987
  
     1,218,743
  
       1,249,583
Federal Home Loan Bank of Boston advances
           76,000
  
        128,000
  
        125,200
  
          91,000
  
           63,000
Total stockholders' equity
         242,869
  
        241,522
  
        242,199
  
        248,105
  
          250,196
Allowance for loan losses
           17,332
  
          17,229
  
          17,920
  
          17,927
  
           17,727
Non-accrual loans
           13,911
  
          13,782
  
          13,240
  
          13,478
  
           16,338
Impaired loans
           39,210
  
          36,857
  
          37,863
  
          39,521
  
           39,054
                   
Selected Operating Data:
                  
                   
Interest income
 $        15,047
  
 $       16,507
  
 $       15,780
  
 $       15,146
  
 $         15,427
Interest expense
             2,395
  
            2,415
  
            2,393
  
           2,347
  
             2,473
    Net Interest Income
           12,652
  
          14,092
  
          13,387
  
          12,799
  
           12,954
    Provision for allowance for loan losses
                399
  
              315
  
               215
  
              520
  
                330
Net interest income after provision for loan losses
           12,253
  
          13,777
 
          13,172
  
          12,279
  
           12,624
Noninterest income
             3,538
  
            4,054
  
            2,145
  
           1,978
  
             1,313
Noninterest expense
           14,699
  
          13,411
  
          16,905
  
          13,133
  
           12,629
Income (loss) before income taxes
             1,092
  
            4,420
  
           (1,588)
  
           1,124
  
             1,308
Provision (benefit) for income taxes
                279
  
            1,250
  
              (519)
  
              293
  
                317
                   
Net income (loss)
 $             813
  
 $         3,170
 
 $        (1,069)
 
 $           831
  
 $             991
                   
Performance Ratios (annualized):
                  
                   
Return on average assets
0.18%
  
0.77%
  
-0.25%
  
0.20%
  
0.24%
Return average equity
1.33%
  
5.62%
  
-1.74%
  
1.32%
  
1.57%
Interest rate spread (1)
2.89%
  
3.19%
  
3.09%
  
3.12%
  
3.21%
Net interest rate margin (2)
3.07%
  
3.37%
  
3.28%
  
3.32%
  
3.41%
Non-interest expense to average assets
3.28%
  
3.01%
  
3.89%
  
3.16%
  
3.08%
Efficiency ratio (3)
90.71%
  
73.91%
  
108.84%
  
88.87%
  
88.52%
Average interest-earning assets to average
                
     interest-bearing liabilities
132.04%
  
131.80%
  
131.75%
  
131.86%
  
132.02%
                   
Asset Quality Ratios:
                  
                   
Allowance for loan losses as a percent of total loans
1.11%
  
1.12%
  
1.19%
  
1.25%
  
1.32%
Allowance for loan losses as a percent of
                
     non-accrual loans
124.59%
  
125.01%
  
135.35%
  
133.01%
  
108.50%
Net charge-offs to average loans (annualized)
0.08%
  
0.27%
  
0.06%
  
0.09%
  
0.04%
Non-accrual loans as a percent of total loans
0.89%
  
0.90%
  
0.88%
  
0.94%
  
1.22%
Non-accrual loans as a percent of total assets
0.77%
  
0.76%
  
0.75%
  
0.80%
  
0.97%
                   
Per Share Related Data:
                  
                   
Basic earnings (loss) per share
 $            0.05
  
 $           0.19
  
 $          (0.07)
  
 $          0.05
  
 $            0.06
Diluted earnings (loss) per share
 $            0.05
  
 $           0.19
  
 $          (0.07)
  
 $          0.05
  
 $            0.06
Dividends declared per share
 $            0.03
  
 $           0.03
  
 $            0.03 
 
 $          0.03
  
 $            0.03
                   
(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.
Selected Financial Data (Unaudited) 
                   
 
At or for the Three Months Ended
   March 31, 2013    December 31,
2012
    September 30,
2012
  
 June 30,
2012
    March 31,
2012
(Dollars in thousands)                  
Capital Ratios:
                  
                   
Equity to total assets at end of period
13.50%
  
13.25%
  
13.79%
  
14.70%
  
14.92%
Average equity to average assets
13.62%
  
13.68%
  
14.19%
  
15.09%
  
15.36%
Total capital to risk-weighted assets
18.61%
*
18.85%
  
19.15%
  
20.43%
  
21.84%
Tier I capital to risk-weighted assets
17.37%
*
17.60%
  
17.90%
  
19.18%
  
20.59%
Tier I capital to total average assets
13.84%
*
13.94%
  
14.24%
  
15.21%
  
15.58%
Total equity to total average assets
13.56%
  
13.56%
  
13.95%
  
14.90%
  
15.27%
                   
* Estimated
                  
                   
Loans and Allowance for Loan Losses:
                
                   
Real estate
                  
  Residential
$       619,741
  
$      620,991
  
$       605,794
  
$       576,228
  
$       530,368
  Commercial
         504,722
  
473,788
  
448,684
  
423,939
  
411,450
  Construction
           66,508
  
64,362
  
54,909
  
48,084
  
42,310
Installment
             5,949
  
6,719
  
7,372
  
8,121
  
9,095
Commercial
         200,610
  
192,210
  
196,813
  
180,653
  
160,179
Collateral
             1,945
  
2,086
  
2,161
  
2,165
  
2,549
Home equity line of credit
         143,992
  
142,543
  
134,314
  
126,377
  
115,081
Demand
                    -
  
25
  
25
  
25
  
25
Revolving credit
                 73
  
65
  
86
  
89
  
73
Resort
           15,252
  
31,232
  
49,760
  
64,755
  
69,773
    Total loans
1,558,792
  
1,534,021
  
1,499,918
  
1,430,436
  
1,340,903
Less:
                  
 Allowance for loan losses
          (17,332)
  
         (17,229)
  
(17,920)
  
(17,927)
  
(17,727)
 Net deferred loan costs
             3,227
  
           3,378
  
3,277
  
3,223
  
2,931
    Loans, net
$     1,544,687
  
$    1,520,170
  
$     1,485,275
  
$     1,415,732
  
$     1,326,107
                   
Deposits:
                  
                   
Noninterest-bearing demand deposits
$       245,912
  
$      247,586
  
$       221,464
  
$       223,820
  
$       215,602
Interest-bearing
                  
  NOW accounts
         234,450
  
        227,205
  
         220,490
  
         181,464
  
         221,204
  Money market
         352,759
  
        317,030
  
         285,540
  
         272,287
  
         272,876
  Savings accounts
         186,171
  
        179,290
  
         171,516
  
         178,378
  
         166,530
  Time deposits
         356,800
  
        359,344
  
         358,977
  
         362,794
  
         373,371
Total interest-bearing deposits
      1,130,180
  
     1,082,869
  
      1,036,523
  
         994,923
  
      1,033,981
    Total deposits
$     1,376,092
  
$   1,330,455
  
$     1,257,987
  
$     1,218,743
  
$     1,249,583
 
 
 
 
First Connecticut Bancorp, Inc.
Consolidated Statements of Condition
 
March 31,
2013
  
December 31,
2012
  
March 31,
2012
(Dollars in thousands)
(Unaudited)
      
(Unaudited)
Assets
                
Cash and due from banks
$            34,946
  
$            50,641
  
$            38,280
Federal funds sold
-
  
-
  
93,000
 
Cash and cash equivalents
34,946
  
50,641
  
131,280
Securities held-to-maturity, at amortized cost
3,003
  
3,006
  
3,216
Securities available-for-sale, at fair value
108,787
  
138,241
  
115,716
Loans held for sale
6,601
  
9,626
  
3,408
Loans, net
  
1,544,687
  
1,520,170
  
1,326,107
Premises and equipment, net
20,764
  
19,967
  
21,293
Federal Home Loan Bank of Boston stock, at cost
8,383
  
8,939
  
7,137
Accrued income receivable
4,346
  
4,415
  
4,304
Bank-owned life insurance
37,649
  
37,449
  
36,701
Deferred income taxes
15,810
  
15,682
  
13,672
Prepaid expenses and other assets
14,416
  
14,810
  
14,395
         
Total assets
$       1,799,392
  
$       1,822,946
  
$       1,677,229
Liabilities and Stockholders' Equity
          
Deposits
              
 
Interest-bearing
$       1,130,180
  
$       1,082,869
  
$       1,033,981
 
Noninterest-bearing
245,912
  
247,586
  
215,602
             
1,376,092
  
1,330,455
  
1,249,583
Federal Home Loan Bank of Boston advances
76,000
  
128,000
  
63,000
Repurchase agreement borrowings
21,000
  
21,000
  
21,000
Repurchase liabilities
43,353
  
54,187
  
55,713
Accrued expenses and other liabilities
40,078
  
47,782
  
37,737
         
Total liabilities
1,556,523
  
1,581,424
  
1,427,033
                       
Commitments and contingencies
-
  
-
  
-
Stockholders' Equity
          
 
Common stock
181
  
181
  
179
 
Additional paid-in-capital
173,584
  
172,247
  
174,884
 
Unallocated common stock held by ESOP
(14,545)
  
(14,806)
  
(13,031)
 
Treasury stock, at cost
(5,713)
  
(4,860)
  
-
 
Retained earnings
95,172
  
94,890
  
93,392
 
Accumulated other comprehensive loss
(5,810)
  
(6,130)
  
(5,228)
         
Total stockholders' equity
242,869
  
241,522
  
250,196
         
Total liabilities and stockholders' equity
$       1,799,392
  
$       1,822,946
  
$       1,677,229
                       
 
 
 
First Connecticut Bancorp, Inc.
Consolidated Statements of Income
             
Three Months Ended
             
March 31,
  
December 31,
  
March 31,
(Dollars in thousands, except per share data)
2013
  
2012
  
2012
Interest income
          
Interest and fees on loans
          
 
Mortgage
  
$        11,468
  
$        12,415
  
$        11,110
 
Other
      
3,314
  
3,770
  
3,889
Interest and dividends on investments
          
 
United States Government and agency obligations
139
  
190
  
266
 
Other bonds
59
  
61
  
58
 
Corporate stocks
62
  
66
  
70
Other interest income
5
  
5
  
34
        Total interest income
15,047
  
16,507
  
15,427
Interest expense
          
Deposits
    
1,705
  
1,649
  
1,755
Interest on borrowed funds
469
  
511
  
481
Interest on repo borrowings
171
  
187
  
180
Interest on repurchase liabilities
50
  
68
  
57
        Total interest expense
2,395
  
2,415
  
2,473
        Net interest income
12,652
  
14,092
  
12,954
Provision for allowance for loan losses
399
  
315
  
330
        Net interest income          
        after provision for loan losses
12,253
  
13,777
  
12,624
Noninterest income
          
Fees for customer services
982
  
1,048
  
816
Net gain on loans sold
2,030
  
1,935
  
98
Brokerage and insurance fee income
32
  
32
  
25
Bank owned life insurance income
409
  
571
  
319
Other
        
85
  
468
  
55
        Total noninterest income
3,538
  
4,054
  
1,313
Noninterest expense
          
Salaries and employee benefits
9,034
  
7,542
  
7,424
Occupancy expense
1,240
  
1,095
  
1,190
Furniture and equipment expense
1,018
  
1,050
  
1,099
FDIC assessment
291
  
342
  
279
Marketing
    
594
  
587
  
606
Other operating expenses
2,522
  
2,795
  
2,031
        Total noninterest expense
14,699
  
13,411
  
12,629
        Income before income taxes
1,092
  
4,420
  
1,308
Provision for income taxes
279
  
1,250
  
317
        Net income
$             813
  
$          3,170
  
$             991
                       
Earnings per share:
          
 
Basic and Diluted
 $           0.05
  
 $           0.19
  
 $           0.06
                       
Weighted average shares outstanding:
          
 
Basic and Diluted
16,476,277
  
16,632,586
  
16,784,974
 
 
 
First Connecticut Bancorp, Inc.
Consolidated Average Balances, Yields and Rates (Unaudited)
 
For The Three Months Ended
 
March 31, 2013
  
December 31, 2012
  
March 31, 2012
 
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
 $ 1,522,812
 $    14,782
3.94%
  
 $ 1,504,834
 $ 16,185
4.28%
  
 $1,315,786
 $ 14,999
4.57%
Securities
       126,585
252
0.81%
  
139,396
308
0.88%
  
      132,321
385
1.17%
Federal Home Loan Bank of Boston stock
           8,809
8
0.37%
  
8,670
9
0.41%
  
          7,370
9
0.49%
Federal funds and other earning assets
         11,015
5
0.18%
  
10,598
5
0.19%
  
        66,714
34
0.20%
Total interest-earning assets
    1,669,221
15,047
3.66%
  
1,663,498
16,507
3.95%
  
   1,522,191
15,427
4.07%
Noninterest-earning assets
       121,634
      
118,273
      
      116,614
    
Total assets
 $ 1,790,855
      
 $ 1,781,771
      
 $1,638,805
    
                       
Interest-bearing liabilities:
                      
NOW accounts
 $    233,891
 $         135
0.23%
  
 $    215,266
 $      117
0.22%
  
 $   204,932
 $        89
0.17%
Money market
       336,400
            586
0.71%
  
       299,408
         487
0.65%
  
      262,320
         544
0.83%
Savings accounts
       180,440
85
0.19%
  
178,959
99
0.22%
  
      161,626
61
0.15%
Certificates of deposit
       356,422
899
1.02%
  
358,047
946
1.05%
  
      381,985
1,061
1.11%
Total interest-bearing deposits
    1,107,153
1,705
0.62%
  
1,051,680
1,649
0.62%
  
   1,010,863
1,755
0.70%
Advances from the Federal Home Loan Bank
         80,468
469
2.36%
  
118,339
511
1.72%
  
        63,042
481
3.06%
Repurchase agreement borrowings
         21,000
171
3.30%
  
21,000
187
3.54%
  
        21,000
180
3.44%
Repurchase liabilities
         55,573
50
0.36%
  
71,115
68
0.38%
  
        58,067
57
0.39%
Total interest-bearing liabilities
    1,264,194
2,395
0.77%
  
1,262,134
2,415
0.76%
  
   1,152,972
2,473
0.86%
Noninterest-bearing deposits
       240,105
      
232,286
      
      195,192
    
Other noninterest-bearing liabilities
         42,651
      
43,663
      
        38,932
    
Total liabilities
    1,546,950
      
1,538,083
      
   1,387,096
    
Stockholders' equity
       243,905
      
243,688
      
      251,709
    
Total liabilities and stockholders' equity
 $ 1,790,855
      
 $ 1,781,771
      
 $1,638,805
    
                       
Net interest income
  
 $    12,652
      
 $ 14,092
      
 $ 12,954
  
Net interest rate spread (1)
    
2.89%
      
3.19%
      
3.21%
Net interest-earning assets (2)
 $    405,027
      
 $    401,364
      
 $   369,219
    
Net interest margin (3)
    
3.07%
      
3.37%
      
3.41%
Average interest-earning assets
                      
   to average interest-bearing liabilities
132.04%
      
131.80%
      
132.02%
  
                       
(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.
Reconcilliation of Non-GAAP Financial Measures (Unaudited)
   
At or for the Three Months Ended
  (Dollars in thousands, except per share data) 
March 31, 2013
  
December 31,
2012
  
September 30,
2012
  
June 30,
2012
  
 March 31,
2012
  
                       
Net Income (loss)
 $             813
  
 $          3,170
  
 $        (1,069)
  
 $           831
  
 $             991
  
 
Adjustments:
                    
 
Less: Prepayment penalty fees
              (127)
  
               (771)
  
                (11)
  
-
  
              (122)
  
 
Less: Bank-owned life insurance proceeds
              (108)
  
               (249)
  
-
  
-
  
-
  
 
Less: Pension prior service cost (1)
-
  
            (1,208)
  
-
  
-
  
-
  
 
Less: Post retirement service cost (1)
-
  
               (279)
  
-
  
-
  
-
  
 
Plus: Accelerated vesting of stock compensation (2)
               633
  
-
  
            3,047
  
-
  
-
  
Total core adjustments before taxes
               398
  
            (2,507)
  
            3,036
  
-
  
              (122)
  
 
Tax benefit (provision) - 34% rate
              (135)
  
                852
  
           (1,032)
  
-
  
                 41
  
Total core adjustments after taxes
               263
  
            (1,655)
  
            2,004
  
-
  
                (81)
  
Total core net income (loss)
 $          1,076
  
 $          1,515
  
 $            935
  
 $           831
  
 $             910
  
                       
                       
Total net interest income
 $        12,652
  
 $         14,092
  
 $        13,387
  
 $       12,799
  
 $        12,954
  
 
Less: Prepayment penalty fees
              (127)
  
               (771)
  
                (11)
  
-
  
              (122)
  
Total core net interest income
 $        12,525
  
 $         13,321
  
 $        13,376
  
 $       12,799
  
 $        12,832
  
                       
                       
Total noninterest income
 $          3,538
  
 $          4,054
  
 $         2,145
  
 $         1,978
  
 $          1,313
  
 
Less: Bank-owned life insurance proceeds
              (108)
  
               (249)
  
-
  
-
  
-
  
Total core noninterest income
 $          3,430
  
 $          3,805
  
 $         2,145
  
 $         1,978
  
 $          1,313
  
                       
                       
Total noninterest expense
 $        14,699
  
 $         13,411
  
 $        16,905
  
 $       13,133
  
 $        12,629
  
 
Plus: Pension prior service cost (1)
-
  
             1,208
  
-
  
-
  
-
  
 
Plus: Post retirement service cost (1)
-
  
                279
  
-
  
-
  
-
  
 
Plus: Loss on sale of non-strategic properties
-
  
-
  
               394
  
-
  
-
  
 
Less: Accelerated vesting of stock compensation (2)
              (633)
  
-
  
           (3,047)
  
-
  
-
  
Total core noninterest expense
 $        14,066
  
 $         14,898
  
 $        14,252
  
 $       13,133
  
 $        12,629
  
                       
Core earnings per common share, diluted
 $            0.07
  
 $            0.09
  
 $           0.06
  
 $          0.05
  
 $            0.06
  
                       
Core return on assets (annualized)
0.24%
  
0.34%
  
0.22%
  
0.20%
  
0.22%
  
Core return on equity (annualized)
1.76%
  
2.45%
  
1.52%
  
1.32%
  
1.45%
  
Efficiency ratio (3)
87.97%
  
87.03%
  
91.82%
  
89.03%
  
89.28%
  
                       
(1) Represents recognizing  the unrecognized prior service cost as a result of the freeze of the Company's non-contributory defined benefit and other post-retirement plans.
                       
(2) Represents the passing of a key executive in the first quarter of 2013 and 20% vesting of the 2012 Stock Incentive Plan in the third quarter of 2012.
                       
(3) Represents core noninterest expense divided by the sum of core net interest income and core noninterest income.