Maryland
|
333-171913
|
45-1496206
|
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
¨
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
¨
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
¨
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
¨
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
TABLE OF CONTENTS
|
|
Item 2.02
|
Results of Operations and Financial Condition
|
Item 9.01
|
Financial Statements and Exhibits
|
SIGNATURES
|
|
EXHIBIT INDEX
|
|
EX-99.1
|
Press Release
|
Item 2.02
|
Results of Operations and Financial Condition
|
On January 30, 2014, First Connecticut Bancorp, Inc., the holding company for Farmington Bank, issued a Press Release describing its results of operations for the fourth quarter and year ended December 31, 2013.
A copy of the Press Release is included as Exhibit 99.1 to this current Form 8-K and is incorporated herein by reference.
|
|
Item 9.01
|
Financial Statements and Exhibits
|
(a)
|
Not applicable.
|
(b)
|
Not applicable.
|
(c)
|
Not applicable.
|
(d)
|
Exhibits.
|
Exhibit Number
|
Description
|
99.1
|
Press Release dated January 30, 2014.
|
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.
|
|
FIRST CONNECTICUT BANCORP, INC.
|
|
Registrant
|
|
January 30, 2014
|
By: /s/ John J. Patrick, Jr.
|
John J. Patrick, Jr.
|
|
Chairman, President and
|
|
and Chief Executive Officer
|
Exhibit Number
|
Description
|
99.1
|
Press Release dated January 30, 2014.
|
·
|
Net interest income increased $939,000 or 7% to $14.2 million in the fourth quarter of 2013 compared to $13.3 million in the linked quarter.
|
·
|
Noninterest expense to average assets was 2.80% in the fourth quarter of 2013 compared to 2.95% in the linked quarter.
|
·
|
Strong organic loan growth continued during the quarter as total loans increased $89.3 million or 5% to $1.8 billion at December 31, 2013 and increased $282.3 million or 18% for the year ended December 31, 2013.
|
·
|
Strong organic loan originations totaled $185.8 million during the quarter. Compared to prior quarter, the Commercial and Industrial, Commercial Real Estate and Residential Real Estate portfolios increased by $38.9 million, $48.1 million and $18.2 million, respectively.
|
·
|
Tangible book value per share grew to $14.08 compared to $13.86 on a linked quarter basis and $13.63 at the quarter ended December 31, 2012.
|
·
|
Checking accounts grew by 3.0% or 1,165 net new accounts in the fourth quarter of 2013.
|
·
|
Asset quality remained stable as non-accrual loans represented 0.81% of total loans compared to 0.80% of total loans on a linked quarter basis. Loan delinquencies 30 days and greater decreased slightly to 0.85% of total loans at December 31, 2013 compared to 0.87% of total loans at September 30, 2013.
|
·
|
The provision for loan losses was $660,000 in the fourth quarter compared to $215,000 in the linked quarter due to continued loan growth, specifically in Commercial Real Estate and Commercial and Industrial portfolios.
|
·
|
During the fourth quarter of 2013, we repurchased 48,585 shares of common stock at an average price per share of $14.75 at a total cost of $717,000. Repurchased shares will be held as treasury stock and will be available for general corporate purposes.
|
·
|
We paid a cash dividend of $0.03 per share on December 16, 2013. This marks the ninth consecutive quarter we have paid a dividend since First Connecticut Bancorp, Inc. became a public company on June 29, 2011.
|
·
|
Net interest income increased $939,000 to $14.2 million in the fourth quarter of 2013 compared to the linked quarter due primarily to an $118.5 million increase in the average loan balance and despite a 6 basis point decrease in the yield on loans.
|
·
|
Yield on average interest earning assets decreased 7 basis points from the linked quarter to 3.43% for the quarter ended December 31, 2013. Net interest margin decreased 2 basis points to 2.92% in the fourth quarter of 2013 compared to the linked quarter.
|
·
|
The cost of interest-bearing deposits decreased slightly to 59 basis points for the quarter ended December 31, 2013 compared to 62 basis points on a linked quarter basis.
|
·
|
Provision for loan losses was $660,000 for the fourth quarter of 2013 compared to $215,000 for the linked quarter.
|
·
|
Net charge-offs in the quarter were $24,000 or 0.01% to average loans (annualized) compared to $42,000 or 0.01% to average loans (annualized) in the linked quarter.
|
·
|
The allowance for loan losses represented 1.01% of total loans at December 31, 2013 compared to 1.02% for the linked quarter.
|
·
|
Total noninterest income decreased $60,000 to $2.2 million for the fourth quarter of 2013 compared to the linked quarter primarily due to a $304,000 decrease in gain on sale of investments offset by a $267,000 increase in other income.
|
·
|
Other income increased $267,000 primarily due to a $202,000 reduction in the mortgage banking derivatives loss due primarily to a decrease in volume in our secondary market residential lending program in the fourth quarter of 2013 when compared to the linked quarter.
|
·
|
Noninterest expense increased $275,000 or 2% to $14.4 million in the fourth quarter of 2013 compared to the linked quarter as a result of an increase in salaries and employee benefits, including severance, and increases in other operating expenses to support growth.
|
·
|
Income tax provision was $288,000 in the fourth quarter of 2013 compared to $292,000 in the linked quarter.
|
·
|
Net interest income increased $130,000 to $14.2 million compared to $14.1 million in the fourth quarter of 2012. The increase was despite a decrease in interest income on the resort portfolio of $561,000 in the current quarter compared to the fourth quarter of 2012.
|
·
|
Net interest margin decreased 45 basis points to 2.92% in the fourth quarter of 2013 compared to 3.37% in the fourth quarter of 2012 primarily due to a lower interest rate environment, lower prepayment penalty fees and a $30.7 million decline in the average balance of the resort portfolio. Excluding resort and prepayment penalty fee income for both quarters, the net interest margin decreased 26 basis points.
|
·
|
The cost of interest-bearing deposits declined slightly to 59 basis points in the fourth quarter of 2013 compared to 62 basis points in the fourth quarter of 2012.
|
·
|
Provision for loan losses was $660,000 for the fourth quarter of 2013 compared to $315,000 for the prior year quarter.
|
·
|
Net charge-offs in the quarter were $24,000 or 0.01% to average loans (annualized) compared to $1.0 million or 0.27% to average loans (annualized) in the prior year quarter.
|
·
|
The allowance for loan losses represented 1.01% of total loans at December 31, 2013 compared to 1.12% for the prior year quarter.
|
·
|
Total noninterest income decreased $1.9 million to $2.2 million compared to the prior year quarter primarily due to decreases in net gains on loans sold of $1.4 million, bank owned life insurance of $270,000 and other income of $465,000 offset by a $202,000 increase in fees for customer service.
|
·
|
Other income decreased $465,000 due to a $121,000 loss in the mortgage banking derivatives in the fourth quarter of 2013 compared to a $355,000 gain in the prior year quarter. The loss in the fourth quarter of 2013 was due to a decrease in volume in our secondary market residential lending program in the fourth quarter of 2013 when compared to the prior year quarter.
|
·
|
Noninterest expense, excluding the $1.5 million reduction in pension and other post-retirement benefits expense recognized in the prior year quarter due to the freezing of these plans, decreased $513,000 to $14.4 million in the fourth quarter of 2013 compared to the prior year quarter.
|
·
|
Salaries and employee benefits, excluding the pension and other post-retirement benefits recognized in the prior year quarter, decreased $351,000 to $8.7 million compared to the prior year quarter.
|
·
|
Marketing expense decreased $219,000 or 37% compared to the prior year quarter primarily due to general expense control initiatives.
|
·
|
Income tax provision was $288,000 in the fourth quarter of 2013 compared to $1.3 million in the prior year quarter.
|
·
|
Total assets increased $117.5 million or 6% at December 31, 2013 to $2.1 billion compared to September 30, 2013 largely reflecting an increase in loans and securities.
|
·
|
Our investment portfolio totaled $163.9 million at December 31, 2013 compared to $123.4 million at September 30, 2013, an increase of $40.5 million.
|
·
|
Net loans increased $88.5 million at December 31, 2013 to $1.8 billion compared to September 30, 2013 due to our continued focus on commercial and residential lending which, combined, increased $98.0 million, offset by an $8.5 million decrease in resort loans as we completed our planned exit of the resort financing market.
|
·
|
Deposits decreased $37.1 million at December 31, 2013 compared to September 30, 2013, due to a $65.6 million seasonal decline in municipal deposits offset by a $30.2 million increase in noninterest bearing customer deposits as we continue to develop and grow relationships in the geographical areas we serve.
|
·
|
Federal Home Loan Bank of Boston advances increased $155.0 million to $259.0 million at December 31, 2013 compared to September 30, 2013 to support loan and securities growth.
|
·
|
Stockholders’ equity increased $4.3 million to $231.8 million at December 31, 2013 compared to September 30, 2013.
|
·
|
At December 31, 2013, the allowance for loan losses represented 1.01% of total loans and 123.74% of non-accrual loans, compared to 1.02% of total loans and 127.30% of non-accrual loans at September 30, 2013.
|
·
|
Non-accrual loans represented 0.81% of total loans at December 31, 2013 compared to 0.80% of total loans at September 30, 2013.
|
·
|
Loan delinquencies 30 days and greater decreased slightly to 0.85% of total loans at December 31, 2013 compared to 0.87% of total loans at September 30, 2013.
|
·
|
The Company remained well-capitalized with an estimated total capital to risk-weighted asset ratio of 15.48% at December 31, 2013.
|
·
|
Tangible book value per share was $14.08 compared to $13.86 on a linked quarter basis and $13.63 from a year ago.
|
·
|
At December 31, 2013, the Company continued to have adequate liquidity including significant unused borrowing capacity at the Federal Home Loan Bank of Boston and the Federal Reserve Bank, as well as access to funding through brokered deposits.
|
At or for the Three Months Ended
|
||||||||||
December 31,
|
September 30,
|
June 30,
|
March 31,
|
December 31,
|
||||||
(Dollars in thousands, except per share data)
|
2013
|
2013
|
2013
|
2013
|
2012
|
|||||
Selected Financial Condition Data:
|
||||||||||
Total assets
|
$ 2,109,716
|
$ 1,992,201
|
$ 1,845,116
|
$ 1,799,392
|
$ 1,822,946
|
|||||
Cash and cash equivalents
|
38,799
|
50,323
|
36,650
|
34,946
|
50,641
|
|||||
Held to maturity securities
|
12,983
|
3,002
|
3,003
|
3,003
|
3,006
|
|||||
Available for sale securities
|
150,886
|
120,382
|
112,801
|
108,787
|
138,241
|
|||||
Federal Home Loan Bank of Boston stock, at cost
|
13,136
|
8,383
|
8,383
|
8,383
|
8,939
|
|||||
Loans receivable, net
|
1,800,987
|
1,712,507
|
1,588,080
|
1,544,687
|
1,520,170
|
|||||
Deposits
|
1,513,501
|
1,550,627
|
1,452,319
|
1,376,092
|
1,330,455
|
|||||
Federal Home Loan Bank of Boston advances
|
259,000
|
104,000
|
51,250
|
76,000
|
128,000
|
|||||
Total stockholders' equity
|
231,797
|
227,536
|
231,180
|
242,869
|
241,522
|
|||||
Allowance for loan losses
|
18,314
|
17,678
|
17,505
|
17,332
|
17,229
|
|||||
Non-accrual loans
|
14,800
|
13,887
|
14,325
|
13,911
|
13,782
|
|||||
Impaired loans
|
39,623
|
42,587
|
39,159
|
39,210
|
36,857
|
|||||
Selected Operating Data:
|
||||||||||
Interest income
|
$ 16,697
|
$ 15,806
|
$ 15,336
|
$ 15,047
|
$ 16,507
|
|||||
Interest expense
|
2,475
|
2,523
|
2,449
|
2,395
|
2,415
|
|||||
Net interest income
|
14,222
|
13,283
|
12,887
|
12,652
|
14,092
|
|||||
Provision for allowance for loan losses
|
660
|
215
|
256
|
399
|
315
|
|||||
Net interest income after provision for loan losses
|
13,562
|
13,068
|
12,631
|
12,253
|
13,777
|
|||||
Noninterest income
|
2,175
|
2,235
|
2,974
|
3,538
|
4,054
|
|||||
Noninterest expense
|
14,385
|
14,110
|
14,555
|
14,699
|
13,411
|
|||||
Income before income taxes
|
1,352
|
1,193
|
1,050
|
1,092
|
4,420
|
|||||
Provision for income taxes
|
288
|
292
|
248
|
279
|
1,250
|
|||||
Net income
|
$ 1,064
|
$ 901
|
$ 802
|
$ 813
|
$ 3,170
|
|||||
Performance Ratios (annualized):
|
||||||||||
Return on average assets
|
0.21%
|
0.19%
|
0.17%
|
0.18%
|
0.71%
|
|||||
Return on average equity
|
1.85%
|
1.55%
|
1.36%
|
1.33%
|
5.20%
|
|||||
Interest rate spread (1)
|
2.77%
|
2.77%
|
2.83%
|
2.89%
|
3.19%
|
|||||
Net interest rate margin (2)
|
2.92%
|
2.94%
|
3.01%
|
3.07%
|
3.37%
|
|||||
Non-interest expense to average assets
|
2.80%
|
2.95%
|
3.17%
|
3.28%
|
3.01%
|
|||||
Efficiency ratio (3)
|
88.51%
|
92.74%
|
92.09%
|
88.16%
|
86.99%
|
|||||
Average interest-earning assets to average
|
||||||||||
interest-bearing liabilities
|
129.65%
|
130.77%
|
132.30%
|
132.04%
|
131.80%
|
|||||
Asset Quality Ratios:
|
||||||||||
Allowance for loan losses as a percent of total loans
|
1.01%
|
1.02%
|
1.09%
|
1.11%
|
1.12%
|
|||||
Allowance for loan losses as a percent of
|
||||||||||
non-accrual loans
|
123.74%
|
127.30%
|
122.20%
|
124.59%
|
125.01%
|
|||||
Net charge-offs to average loans (annualized)
|
0.01%
|
0.01%
|
0.02%
|
0.08%
|
0.27%
|
|||||
Non-accrual loans as a percent of total loans
|
0.81%
|
0.80%
|
0.89%
|
0.89%
|
0.90%
|
|||||
Non-accrual loans as a percent of total assets
|
0.70%
|
0.70%
|
0.78%
|
0.77%
|
0.76%
|
|||||
Per Share Related Data:
|
||||||||||
Basic earnings per share
|
$ 0.07
|
$ 0.06
|
$ 0.05
|
$ 0.05
|
$ 0.19
|
|||||
Diluted earnings per share
|
$ 0.07
|
$ 0.06
|
$ 0.05
|
$ 0.05
|
$ 0.19
|
|||||
Dividends declared per share
|
$ 0.03
|
$ 0.03
|
$ 0.03
|
$ 0.03
|
$ 0.03
|
|||||
Tangible book value (4)
|
$ 14.08
|
$ 13.86
|
$ 13.79
|
$ 13.76
|
$ 13.63
|
|||||
Common stock shares outstanding
|
16,457,642
|
16,416,427
|
16,763,516
|
17,644,449
|
17,714,481
|
|||||
(1) Represents the difference between the weighted-average yield on average interest-earning assets and the weighted-average cost of 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, adjusted for non-recurring items. See "Reconciliation of Non-GAAP Financial Measures" table.
|
||||||||||
(4) Represents ending stockholders’ equity less goodwill and intangible assets (excluding mortgage servicing rights) divided by ending common shares outstanding. The Company does not have goodwill and intangible assets for any of the periods presented. See "Reconciliation of Non-GAAP Financial Measures" table.
|
At or for the Three Months Ended
|
|||||||||
December 31,
|
September 30,
|
June 30,
|
March 31,
|
December 31,
|
|||||
(Dollars in thousands)
|
2013
|
2013
|
2013
|
2013
|
2012
|
||||
Capital Ratios:
|
|||||||||
Equity to total assets at end of period
|
10.99%
|
11.42%
|
12.53%
|
13.50%
|
13.25%
|
||||
Average equity to average assets
|
11.22%
|
12.11%
|
12.83%
|
13.62%
|
13.68%
|
||||
Total capital to risk-weighted assets
|
15.48%
|
*
|
16.12%
|
17.48%
|
18.61%
|
18.78%
|
|||
Tier I capital to risk-weighted assets
|
14.34%
|
*
|
14.96%
|
16.25%
|
17.37%
|
17.53%
|
|||
Tier I capital to total average assets
|
11.45%
|
*
|
12.18%
|
12.92%
|
13.84%
|
13.88%
|
|||
Total equity to total average assets
|
11.28%
|
11.88%
|
12.59%
|
13.56%
|
13.56%
|
||||
* Estimated
|
|||||||||
Loans and Allowance for Loan Losses:
|
|||||||||
Real estate
|
|||||||||
Residential
|
$ 693,046
|
$ 674,804
|
$ 625,345
|
$ 619,741
|
$ 620,991
|
||||
Commercial
|
633,764
|
585,628
|
533,072
|
504,722
|
473,788
|
||||
Construction
|
78,191
|
90,033
|
80,198
|
66,508
|
64,362
|
||||
Installment
|
4,516
|
4,671
|
5,384
|
5,949
|
6,719
|
||||
Commercial
|
252,032
|
213,103
|
199,328
|
200,610
|
192,210
|
||||
Collateral
|
1,600
|
1,819
|
1,801
|
1,945
|
2,086
|
||||
Home equity line of credit
|
151,606
|
147,026
|
144,548
|
143,992
|
142,543
|
||||
Demand
|
85
|
-
|
-
|
-
|
25
|
||||
Revolving credit
|
94
|
78
|
62
|
73
|
65
|
||||
Resort
|
1,374
|
9,849
|
12,425
|
15,252
|
31,232
|
||||
Total loans
|
1,816,308
|
1,727,011
|
1,602,163
|
1,558,792
|
1,534,021
|
||||
Less:
|
|||||||||
Allowance for loan losses
|
(18,314)
|
(17,678)
|
(17,505)
|
(17,332)
|
(17,229)
|
||||
Net deferred loan costs
|
2,993
|
3,174
|
3,422
|
3,227
|
3,378
|
||||
Loans, net
|
$ 1,800,987
|
$ 1,712,507
|
$ 1,588,080
|
$ 1,544,687
|
$ 1,520,170
|
||||
Deposits:
|
|||||||||
Noninterest-bearing demand deposits
|
$ 308,459
|
$ 278,275
|
$ 275,781
|
$ 245,912
|
$ 247,586
|
||||
Interest-bearing
|
|||||||||
NOW accounts
|
285,392
|
339,350
|
280,462
|
234,450
|
227,205
|
||||
Money market
|
387,225
|
386,682
|
349,621
|
352,759
|
317,030
|
||||
Savings accounts
|
193,937
|
187,040
|
191,688
|
186,171
|
179,290
|
||||
Time deposits
|
338,488
|
359,280
|
354,767
|
356,800
|
359,344
|
||||
Total interest-bearing deposits
|
1,205,042
|
1,272,352
|
1,176,538
|
1,130,180
|
1,082,869
|
||||
Total deposits
|
$ 1,513,501
|
$ 1,550,627
|
$ 1,452,319
|
$ 1,376,092
|
$ 1,330,455
|
December 31,
|
September 30,
|
December 31,
|
||||||||||
(Dollars in thousands)
|
2013
|
2013
|
2012
|
|||||||||
Assets
|
||||||||||||
Cash and cash equivalents
|
$ 38,799
|
$ 50,323
|
$ 50,641
|
|||||||||
Securities held-to-maturity, at amortized cost
|
12,983
|
3,002
|
3,006
|
|||||||||
Securities available-for-sale, at fair value
|
150,886
|
120,382
|
138,241
|
|||||||||
Loans held for sale
|
3,186
|
5,357
|
9,626
|
|||||||||
Loans, net
|
1,800,987
|
1,712,507
|
1,520,170
|
|||||||||
Premises and equipment, net
|
20,619
|
21,013
|
19,967
|
|||||||||
Federal Home Loan Bank of Boston stock, at cost
|
13,136
|
8,383
|
8,939
|
|||||||||
Accrued income receivable
|
4,917
|
4,579
|
4,415
|
|||||||||
Bank-owned life insurance
|
38,556
|
38,255
|
37,449
|
|||||||||
Deferred income taxes
|
15,157
|
16,095
|
15,682
|
|||||||||
Prepaid expenses and other assets
|
10,490
|
12,305
|
14,810
|
|||||||||
Total assets
|
$ 2,109,716
|
$ 1,992,201
|
$ 1,822,946
|
|||||||||
Liabilities and Stockholders' Equity
|
||||||||||||
Deposits
|
||||||||||||
Interest-bearing
|
$ 1,205,042
|
$ 1,272,352
|
$ 1,082,869
|
|||||||||
Noninterest-bearing
|
308,459
|
278,275
|
247,586
|
|||||||||
1,513,501
|
1,550,627
|
1,330,455
|
||||||||||
Federal Home Loan Bank of Boston advances
|
259,000
|
104,000
|
128,000
|
|||||||||
Repurchase agreement borrowings
|
21,000
|
21,000
|
21,000
|
|||||||||
Repurchase liabilities
|
50,816
|
50,432
|
54,187
|
|||||||||
Accrued expenses and other liabilities
|
33,602
|
38,606
|
47,782
|
|||||||||
Total liabilities
|
1,877,919
|
1,764,665
|
1,581,424
|
|||||||||
Commitments and contingencies
|
-
|
-
|
-
|
|||||||||
Stockholders' Equity
|
||||||||||||
Common stock
|
181
|
181
|
181
|
|||||||||
Additional paid-in-capital
|
175,612
|
174,817
|
172,247
|
|||||||||
Unallocated common stock held by ESOP
|
(13,747)
|
(14,014)
|
(14,806)
|
|||||||||
Treasury stock, at cost
|
(22,599)
|
(23,053)
|
(4,860)
|
|||||||||
Retained earnings
|
96,592
|
95,873
|
94,890
|
|||||||||
Accumulated other comprehensive loss
|
(4,242)
|
(6,268)
|
(6,130)
|
|||||||||
Total stockholders' equity
|
231,797
|
227,536
|
241,522
|
|||||||||
Total liabilities and stockholders' equity
|
$ 2,109,716
|
$ 1,992,201
|
$ 1,822,946
|
|||||||||
Three Months Ended
|
For the Years Ended
|
||||||||||||||
December 31,
|
September 30,
|
December 31,
|
December 31,
|
||||||||||||
(Dollars in thousands, except per share data)
|
2013
|
2013
|
2012
|
2013
|
2012
|
||||||||||
Interest income
|
|||||||||||||||
Interest and fees on loans
|
|||||||||||||||
Mortgage
|
$ 13,007
|
$ 12,381
|
$ 12,415
|
$ 48,728
|
$ 45,867
|
||||||||||
Other
|
3,437
|
3,199
|
3,770
|
13,183
|
15,445
|
||||||||||
Interest and dividends on investments
|
|||||||||||||||
United States Government and agency obligations
|
134
|
103
|
190
|
478
|
939
|
||||||||||
Other bonds
|
53
|
59
|
61
|
230
|
266
|
||||||||||
Corporate stocks
|
64
|
62
|
66
|
252
|
275
|
||||||||||
Other interest income
|
2
|
2
|
5
|
15
|
68
|
||||||||||
Total interest income
|
16,697
|
15,806
|
16,507
|
62,886
|
62,860
|
||||||||||
Interest expense
|
|||||||||||||||
Deposits
|
1,845
|
1,914
|
1,649
|
7,291
|
6,691
|
||||||||||
Interest on borrowed funds
|
398
|
383
|
511
|
1,651
|
1,953
|
||||||||||
Interest on repo borrowings
|
181
|
181
|
187
|
713
|
727
|
||||||||||
Interest on repurchase liabilities
|
51
|
45
|
68
|
187
|
257
|
||||||||||
Total interest expense
|
2,475
|
2,523
|
2,415
|
9,842
|
9,628
|
||||||||||
Net interest income
|
14,222
|
13,283
|
14,092
|
53,044
|
53,232
|
||||||||||
Provision for allowance for loan losses
|
660
|
215
|
315
|
1,530
|
1,380
|
||||||||||
Net interest income
|
|||||||||||||||
after provision for loan losses
|
13,562
|
13,068
|
13,777
|
51,514
|
51,852
|
||||||||||
Noninterest income
|
|||||||||||||||
Fees for customer services
|
1,250
|
1,230
|
1,048
|
4,559
|
3,714
|
||||||||||
Net gain on sales of investments
|
-
|
304
|
-
|
340
|
-
|
||||||||||
Net gain on loans sold
|
581
|
625
|
1,935
|
4,825
|
3,151
|
||||||||||
Brokerage and insurance fee income
|
40
|
37
|
32
|
150
|
123
|
||||||||||
Bank owned life insurance income
|
301
|
303
|
571
|
1,316
|
1,537
|
||||||||||
Other
|
3
|
(264)
|
468
|
(268)
|
965
|
||||||||||
Total noninterest income
|
2,175
|
2,235
|
4,054
|
10,922
|
9,490
|
||||||||||
Noninterest expense
|
|||||||||||||||
Salaries and employee benefits
|
8,678
|
8,571
|
7,542
|
34,838
|
32,828
|
||||||||||
Occupancy expense
|
1,181
|
1,175
|
1,095
|
4,722
|
4,491
|
||||||||||
Furniture and equipment expense
|
964
|
998
|
1,050
|
4,079
|
4,381
|
||||||||||
FDIC assessment
|
329
|
341
|
342
|
1,272
|
1,170
|
||||||||||
Marketing
|
368
|
423
|
587
|
1,995
|
2,455
|
||||||||||
Other operating expenses
|
2,865
|
2,602
|
2,795
|
10,843
|
10,753
|
||||||||||
Total noninterest expense
|
14,385
|
14,110
|
13,411
|
57,749
|
56,078
|
||||||||||
Income before income taxes
|
1,352
|
1,193
|
4,420
|
4,687
|
5,264
|
||||||||||
Provision for income taxes
|
288
|
292
|
1,250
|
1,107
|
1,341
|
||||||||||
Net income
|
$ 1,064
|
$ 901
|
$ 3,170
|
$ 3,580
|
$ 3,923
|
||||||||||
Earnings per share:
|
|||||||||||||||
Basic
|
$ 0.07
|
$ 0.06
|
$ 0.19
|
$ 0.23
|
$ 0.24
|
||||||||||
Diluted
|
0.07
|
0.06
|
0.19
|
0.23
|
0.24
|
||||||||||
Weighted average shares outstanding:
|
|||||||||||||||
Basic
|
15,281,296
|
15,445,082
|
16,632,586
|
15,744,574
|
16,643,566
|
||||||||||
Diluted
|
15,347,912
|
15,445,082
|
16,632,586
|
15,761,365
|
16,643,566
|
For The Three Months Ended
|
|||||||||||
December 31, 2013
|
September 30, 2013
|
December 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
|
$ 1,767,468
|
$ 16,444
|
3.69%
|
$ 1,648,948
|
$ 15,580
|
3.75%
|
$1,504,834
|
$ 16,185
|
4.28%
|
||
Securities
|
148,653
|
243
|
0.65%
|
131,602
|
216
|
0.65%
|
139,396
|
308
|
0.88%
|
||
Federal Home Loan Bank of Boston stock
|
10,338
|
8
|
0.31%
|
8,383
|
8
|
0.38%
|
8,670
|
9
|
0.41%
|
||
Federal funds and other earning assets
|
5,093
|
2
|
0.16%
|
3,288
|
2
|
0.24%
|
10,598
|
5
|
0.19%
|
||
Total interest-earning assets
|
1,931,552
|
16,697
|
3.43%
|
1,792,221
|
15,806
|
3.50%
|
1,663,498
|
16,507
|
3.95%
|
||
Noninterest-earning assets
|
123,577
|
122,566
|
118,273
|
||||||||
Total assets
|
$ 2,055,129
|
$ 1,914,787
|
$1,781,771
|
||||||||
Interest-bearing liabilities:
|
|||||||||||
NOW accounts
|
$ 305,045
|
$ 172
|
0.22%
|
$ 303,882
|
$ 180
|
0.24%
|
$ 215,266
|
$ 117
|
0.22%
|
||
Money market
|
388,503
|
773
|
0.79%
|
371,614
|
794
|
0.85%
|
299,408
|
487
|
0.65%
|
||
Savings accounts
|
190,258
|
78
|
0.16%
|
185,732
|
79
|
0.17%
|
178,959
|
99
|
0.22%
|
||
Certificates of deposit
|
346,977
|
822
|
0.94%
|
356,994
|
861
|
0.96%
|
358,047
|
946
|
1.05%
|
||
Total interest-bearing deposits
|
1,230,783
|
1,845
|
0.59%
|
1,218,222
|
1,914
|
0.62%
|
1,051,680
|
1,649
|
0.62%
|
||
Advances from the Federal Home Loan Bank
|
170,000
|
398
|
0.93%
|
74,101
|
383
|
2.05%
|
118,339
|
511
|
1.72%
|
||
Repurchase agreement borrowings
|
21,000
|
181
|
3.42%
|
21,000
|
181
|
3.42%
|
21,000
|
187
|
3.54%
|
||
Repurchase liabilities
|
68,122
|
51
|
0.30%
|
57,187
|
45
|
0.31%
|
71,115
|
68
|
0.38%
|
||
Total interest-bearing liabilities
|
1,489,905
|
2,475
|
0.66%
|
1,370,510
|
2,523
|
0.73%
|
1,262,134
|
2,415
|
0.76%
|
||
Noninterest-bearing deposits
|
294,071
|
272,621
|
232,286
|
||||||||
Other noninterest-bearing liabilities
|
40,557
|
39,810
|
43,663
|
||||||||
Total liabilities
|
1,824,533
|
1,682,941
|
1,538,083
|
||||||||
Stockholders' equity
|
230,596
|
231,846
|
243,688
|
||||||||
Total liabilities and stockholders' equity
|
$ 2,055,129
|
$ 1,914,787
|
$1,781,771
|
||||||||
Net interest income
|
$ 14,222
|
$ 13,283
|
$ 14,092
|
||||||||
Net interest rate spread (1)
|
2.77%
|
2.77%
|
3.19%
|
||||||||
Net interest-earning assets (2)
|
$ 441,647
|
$ 421,711
|
$ 401,364
|
||||||||
Net interest margin (3)
|
2.92%
|
2.94%
|
3.37%
|
||||||||
Average interest-earning assets
|
|||||||||||
to average interest-bearing liabilities
|
129.64%
|
130.77%
|
131.80%
|
||||||||
(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.
|
For The Years Ended December 31,
|
|||||||
2013
|
2012
|
||||||
Average
Balance
|
Interest and
Dividends
|
Yield
/Cost
|
Average
Balance
|
Interest and
Dividends
|
Yield/
Cost
|
||
(Dollars in thousands)
|
|||||||
Interest-earning assets:
|
|||||||
Loans, net
|
$ 1,629,921
|
$ 61,911
|
3.80%
|
$ 1,410,822
|
$ 61,312
|
4.35%
|
|
Securities
|
130,593
|
927
|
0.71%
|
136,062
|
1,443
|
1.06%
|
|
Federal Home Loan Bank of Boston stock
|
8,981
|
33
|
0.37%
|
7,714
|
37
|
0.48%
|
|
Federal funds and other earning assets
|
8,398
|
15
|
0.18%
|
33,521
|
68
|
0.20%
|
|
Total interest-earning assets
|
1,777,893
|
62,886
|
3.54%
|
1,588,119
|
62,860
|
3.96%
|
|
Noninterest-earning assets
|
121,981
|
117,449
|
|||||
Total assets
|
$ 1,899,874
|
$ 1,705,568
|
|||||
Interest-bearing liabilities:
|
|||||||
NOW accounts
|
$ 277,698
|
$ 638
|
0.23%
|
$ 208,161
|
$ 389
|
0.19%
|
|
Money market
|
362,914
|
2,878
|
0.79%
|
278,179
|
2,017
|
0.73%
|
|
Savings accounts
|
182,952
|
315
|
0.17%
|
171,871
|
291
|
0.17%
|
|
Certificates of deposit
|
353,677
|
3,460
|
0.98%
|
367,380
|
3,994
|
1.09%
|
|
Total interest-bearing deposits
|
1,177,241
|
7,291
|
0.62%
|
1,025,591
|
6,691
|
0.65%
|
|
Federal Home Loan Bank of Boston advances
|
98,486
|
1,651
|
1.68%
|
89,419
|
1,953
|
2.18%
|
|
Repurchase agreement borrowings
|
21,000
|
713
|
3.40%
|
21,000
|
727
|
3.46%
|
|
Repurchase liabilities
|
56,891
|
187
|
0.33%
|
66,436
|
257
|
0.39%
|
|
Total interest-bearing liabilities
|
1,353,618
|
9,842
|
0.73%
|
1,202,446
|
9,628
|
0.80%
|
|
Noninterest-bearing deposits
|
266,217
|
213,697
|
|||||
Other noninterest-bearing liabilities
|
44,577
|
41,223
|
|||||
Total liabilities
|
1,664,411
|
1,457,366
|
|||||
Stockholders' equity
|
235,463
|
248,202
|
|||||
Total liabilities and stockholders' equity
|
$ 1,899,874
|
$ 1,705,568
|
|||||
Net interest income
|
$ 53,044
|
$ 53,232
|
|||||
Net interest rate spread (1)
|
2.81%
|
3.16%
|
|||||
Net interest-earning assets (2)
|
$ 424,275
|
$ 385,673
|
|||||
Net interest margin (3)
|
2.98%
|
3.35%
|
|||||
Average interest-earning assets to average interest-bearing liabilities
|
|||||||
131.34%
|
132.07%
|
||||||
(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.
|
At or for the Three Months Ended
|
||||||||||
December 31,
|
September 30,
|
June 30,
|
March 31,
|
December 31,
|
||||||
(Dollars in thousands, except per share data)
|
2013
|
2013
|
2013
|
2013
|
2012
|
|||||
Net Income
|
$ 1,064
|
$ 901
|
$ 802
|
$ 813
|
$ 3,170
|
|||||
Adjustments:
|
||||||||||
Less: Prepayment penalty fees
|
(144)
|
-
|
(20)
|
(127)
|
(771)
|
|||||
Less: Net gain on sales of investments
|
-
|
(304)
|
(36)
|
-
|
-
|
|||||
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
|
-
|
|||||
Total core adjustments before taxes
|
(144)
|
(304)
|
(56)
|
398
|
(2,507)
|
|||||
Tax benefit (provision) - 34% rate
|
49
|
-
|
19
|
(135)
|
852
|
|||||
Total core adjustments after taxes
|
(95)
|
(304)
|
(37)
|
263
|
(1,655)
|
|||||
Total core net income
|
$ 969
|
$ 597
|
$ 765
|
$ 1,076
|
$ 1,515
|
|||||
Total net interest income
|
$ 14,222
|
$ 13,283
|
$ 12,887
|
$ 12,652
|
$ 14,092
|
|||||
Less: Prepayment penalty fees
|
(144)
|
-
|
(20)
|
(127)
|
(771)
|
|||||
Total core net interest income
|
$ 14,078
|
$ 13,283
|
$ 12,867
|
$ 12,525
|
$ 13,321
|
|||||
Total noninterest income
|
$ 2,175
|
$ 2,235
|
$ 2,974
|
$ 3,538
|
$ 4,054
|
|||||
Less: Net gain on sales of investments
|
-
|
(304)
|
(36)
|
-
|
-
|
|||||
Less: Bank-owned life insurance proceeds
|
-
|
-
|
-
|
(108)
|
(249)
|
|||||
Total core noninterest income
|
$ 2,175
|
$ 1,931
|
$ 2,938
|
$ 3,430
|
$ 3,805
|
|||||
Total noninterest expense
|
$ 14,385
|
$ 14,110
|
$ 14,555
|
$ 14,699
|
$ 13,411
|
|||||
Plus: Pension prior service cost (1)
|
-
|
-
|
-
|
-
|
1,208
|
|||||
Plus: Post retirement service cost (1)
|
-
|
-
|
-
|
-
|
279
|
|||||
Plus: Loss on sale of non-strategic properties
|
-
|
-
|
-
|
-
|
-
|
|||||
Less: Accelerated vesting of stock compensation (2)
|
-
|
-
|
-
|
(633)
|
-
|
|||||
Total core noninterest expense
|
$ 14,385
|
$ 14,110
|
$ 14,555
|
$ 14,066
|
$ 14,898
|
|||||
Core earnings per common share, diluted
|
$ 0.06
|
$ 0.05
|
$ 0.05
|
$ 0.07
|
$ 0.09
|
|||||
Core return on assets (annualized)
|
0.19%
|
0.15%
|
0.17%
|
0.24%
|
0.34%
|
|||||
Core return on equity (annualized)
|
1.68%
|
1.21%
|
1.30%
|
1.76%
|
2.45%
|
|||||
Efficiency ratio (3)
|
88.51%
|
92.74%
|
92.09%
|
88.16%
|
86.99%
|
|||||
Tangible book value (4)
|
$ 14.08
|
$ 13.86
|
$ 13.79
|
$ 13.76
|
$ 13.63
|
|||||
(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 noninterest expense divided by the sum of net interest income and noninterest income, adjusted for non-recurring items.
|
||||||||||
(4) Represents ending stockholders’ equity less goodwill and intangible assets (excluding mortgage servicing rights) divided by ending common shares outstanding. The Company does not have goodwill and intangible assets for any of the periods presented.
|