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 Conditions
|
Item 9.01
|
Financial Statements and Exhibits
|
SIGNATURES
|
|
EXHIBIT INDEX
|
|
EX-99.1
|
Press Release
|
Item 2.02
|
Results of Operations and Financial Conditions
|
On April 24, 2014, First Connecticut Bancorp, Inc., the holding company for Farmington Bank, issued a Press Release describing its results of operation for the first quarter ended March 31, 2014.
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 April 24, 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
|
|
April 24, 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 April 24, 2014.
|
·
|
Net interest income increased $419,000 to $14.8 million in the first quarter of 2014 compared to $14.3 million in the linked quarter and increased $2.1 million compared to first quarter of 2013.
|
·
|
Noninterest expense to average assets was 2.63% in the first quarter of 2014 compared to 2.80% in the linked quarter and 3.28% in the first quarter of 2013.
|
·
|
Strong organic loan growth continued during the quarter as total loans increased $52.5 million to $1.9 billion at March 31, 2014 and increased $310.1 million or 20% from a year ago.
|
·
|
Tangible book value per share grew to $14.22 compared to $14.11 on a linked quarter basis and $13.78 at March 31, 2013.
|
·
|
Checking accounts grew by 3.2% or 1,266 net new accounts in the first quarter of 2014.
|
·
|
Net charge-offs were $1.2 million in the first quarter of 2014 compared to $24,000 in the linked quarter. One commercial loan relationship represented the majority of the charge-off which was fully reserved in prior years.
|
·
|
Asset quality remains stable as loan delinquencies 30 days and greater decreased slightly to 0.80% of total loans at March 31, 2014 compared to 0.85% of total loans at December 31, 2013. Non-accrual loans represented 0.69% of total loans compared to 0.81% of total loans on a linked quarter basis.
|
·
|
During the first quarter of 2014, we repurchased 253,709 shares of common stock at an average price per share of $15.49 at a total cost of $3.9 million. 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 March 17, 2014. This marks the tenth consecutive quarter we have paid a dividend since First Connecticut Bancorp, Inc. became a public company on June 29, 2011.
|
·
|
Net interest income increased $419,000 to $14.8 million in the first quarter of 2014 compared to the linked quarter due primarily to a $52.1 million increase in the average loan balance, lower cost of interest-bearing liabilities, higher yields in the loan and securities portfolios and a 7 basis point increase in the net interest rate spread to 2.86%.
|
·
|
Net interest margin increased 5 basis points to 2.99% in the first quarter of 2014 compared to 2.94% in the fourth quarter of 2013 primarily due to a decrease in cost of interest-bearing liabilities and higher yields in the loan and securities portfolios.
|
·
|
The cost of interest-bearing liabilities declined 5 basis points to 58 basis points in the first quarter of 2014 compared to 63 basis points in the fourth quarter of 2013.
|
·
|
Provision for loan losses was $505,000 for the first quarter of 2014 compared to $660,000 for the linked quarter.
|
·
|
Net charge-offs in the quarter were $1.2 million or 0.26% to average loans (annualized) compared to $24,000 or 0.01% to average loans (annualized) in the linked quarter.
|
·
|
The allowance for loan losses represented 0.94% of total loans at March 31, 2014 compared to 1.01% at December 31, 2013.
|
·
|
Total noninterest income decreased $421,000 to $1.8 million for the first quarter of 2014 compared to the linked quarter primarily due to a $459,000 decrease in net gain on loans sold as a result of an overall decrease in volume and margins in our secondary market residential lending program.
|
·
|
Noninterest expense decreased $438,000 or 3% to $14.0 million in the first quarter of 2014 compared to the linked quarter as a result of decreases in salaries and employee benefits and other operating expenses offset by an increase in occupancy expense due to our de novo branch in Rocky Hill, which opened in January 2014, and winter related expenses.
|
·
|
Income tax provision was $555,000 in the first quarter of 2014 compared to $322,000 in the linked quarter.
|
·
|
Net interest income increased $2.1 million or 17% to $14.8 million compared to $12.7 million in the first quarter of 2013 primarily due to a $296.8 million increase in the average loan balance despite a 23 basis point decrease in the yield on loans.
|
·
|
Net interest margin decreased 8 basis points to 2.99% in the first quarter of 2014 compared to 3.07% in the first quarter of 2013 primarily due to lower prepayment penalty fees and a $20.7 million decline in the average balance of the resort portfolio. Excluding resort and prepayment penalty fee income for both quarters, the net interest margin would have been 2.99% and 3.00% in the first quarters of 2014 and 2013, respectively.
|
·
|
The cost of interest-bearing liabilities declined 19 basis points to 58 basis points in the first quarter of 2014 compared to 77 basis points in the first quarter of 2013 due primarily to lower funding costs for municipal deposits and a decrease in Federal Home Loan Bank of Boston advance costs due to an increase in short-term advances which carry lower rates.
|
·
|
Provision for loan losses was $505,000 for the first quarter of 2014 compared to $399,000 for the prior year quarter.
|
·
|
Net charge-offs in the quarter were $1.2 million or 0.26% to average loans (annualized) compared to $296,000 or 0.08% to average loans (annualized) in the prior year quarter.
|
·
|
The allowance for loan losses represented 0.94% of total loans at March 31, 2014 compared to 1.11% at March 31, 2013.
|
·
|
Total noninterest income decreased $1.9 million to $1.8 million compared to the prior year quarter primarily due to a $1.9 million decrease in net gain on loans sold as a result of an overall decrease in volume and margins in our secondary market residential lending program.
|
·
|
Noninterest expense, excluding $633,000 in accelerated vesting of stock compensation due to the passing of a key executive in the prior year quarter, decreased $106,000 to $14.0 million in the first quarter of 2014 compared to the prior year quarter.
|
·
|
Salaries and employee benefits, excluding $633,000 in accelerated vesting of stock compensation, decreased $113,000 to $8.3 million in the first quarter of 2014 compared to the prior year quarter.
|
·
|
Marketing expense decreased $216,000 or 37% compared to the prior year quarter primarily due to general expense control initiatives.
|
·
|
Income tax provision was $555,000 in the first quarter of 2014 compared to $316,000 in the prior year quarter.
|
·
|
Total assets increased $382.1 million or 21% at March 31, 2014 to $2.2 billion compared to $1.8 billion at March 31, 2013 largely reflecting an increase in loans and securities.
|
·
|
Our investment portfolio totaled $176.1 million at March 31, 2014 compared to $111.8 million at March 31, 2013, an increase of $64.3 million.
|
·
|
Net loans increased $309.8 million at March 31, 2014 to $1.9 billion compared to $1.5 million at March 31, 2013 due to our continued focus on commercial and residential lending, which combined, increased $326.4 million.
|
·
|
Deposits increased $258.3 million at March 31, 2014 to $1.6 billion compared to $1.4 billion at March 31, 2013, due to increases in municipal deposits, noninterest-bearing deposits and de novo branch openings as we continue to develop and grow relationships in the geographical areas we serve.
|
·
|
Federal Home Loan Bank of Boston advances increased $130.0 million to $206.0 million at March 31, 2014 compared to $76.0 million at March 31, 2013. Advances were used to support loan and securities growth.
|
·
|
At March 31, 2014, the allowance for loan losses represented 0.94% of total loans and 135.89% of non-accrual loans, compared to 1.11% of total loans and 124.59% of non-accrual loans at March 31, 2013.
|
·
|
Non-accrual loans represented 0.69% of total loans at March 31, 2014 compared to 0.89% of total loans at March 31, 2013.
|
·
|
Loan delinquencies 30 days and greater decreased to 0.80% of total loans at March 31, 2014 compared to 0.97% of total loans at March 31, 2013.
|
·
|
The Company remained well-capitalized with an estimated total capital to risk-weighted asset ratio of 15.05% at March 31, 2014.
|
·
|
Tangible book value per share grew to $14.22 compared to $14.11 on a linked quarter basis and $13.78 at the quarter ended March 31, 2013.
|
·
|
At March 31, 2014, 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
|
|||||||||
March 31,
|
December 31,
|
September 30,
|
June 30,
|
March 31,
|
|||||
(Dollars in thousands, except per share data)
|
2014
|
2013
|
2013
|
2013
|
2013
|
||||
Selected Financial Condition Data:
|
|||||||||
Total assets
|
$ 2,181,759
|
$ 2,110,028
|
$ 1,992,517
|
$ 1,845,440
|
$ 1,799,678
|
||||
Cash and cash equivalents
|
44,110
|
38,799
|
50,323
|
36,650
|
34,946
|
||||
Securities held-to-maturity, at amortized cost
|
12,872
|
12,983
|
3,002
|
3,003
|
3,003
|
||||
Securities available-for-sale, at fair value
|
163,232
|
150,886
|
120,382
|
112,801
|
108,787
|
||||
Federal Home Loan Bank of Boston stock, at cost
|
13,137
|
13,136
|
8,383
|
8,383
|
8,383
|
||||
Loans, net
|
1,854,497
|
1,800,987
|
1,712,507
|
1,588,080
|
1,544,687
|
||||
Deposits
|
1,634,400
|
1,513,501
|
1,550,627
|
1,452,319
|
1,376,092
|
||||
Federal Home Loan Bank of Boston advances
|
206,000
|
259,000
|
104,000
|
51,250
|
76,000
|
||||
Total stockholders' equity
|
230,488
|
232,209
|
227,864
|
231,541
|
243,214
|
||||
Allowance for loan losses
|
17,631
|
18,314
|
17,678
|
17,505
|
17,332
|
||||
Non-accrual loans
|
12,974
|
14,800
|
13,887
|
14,325
|
13,911
|
||||
Impaired loans
|
41,782
|
39,623
|
42,587
|
39,159
|
39,210
|
||||
Loan delinquencies 30 days and greater
|
14,882
|
15,511
|
15,032
|
15,191
|
15,167
|
||||
Selected Operating Data:
|
|||||||||
Interest income
|
$ 16,980
|
$ 16,697
|
$ 15,806
|
$ 15,336
|
$ 15,047
|
||||
Interest expense
|
2,230
|
2,366
|
2,523
|
2,449
|
2,395
|
||||
Net interest income
|
14,750
|
14,331
|
13,283
|
12,887
|
12,652
|
||||
Provision for loan losses
|
505
|
660
|
215
|
256
|
399
|
||||
Net interest income after provision for loan losses
|
14,245
|
13,671
|
13,068
|
12,631
|
12,253
|
||||
Noninterest income
|
1,762
|
2,183
|
2,182
|
2,999
|
3,648
|
||||
Noninterest expense
|
13,960
|
14,398
|
14,110
|
14,555
|
14,699
|
||||
Income before income taxes
|
2,047
|
1,456
|
1,140
|
1,075
|
1,202
|
||||
Provision for income taxes
|
555
|
322
|
275
|
256
|
316
|
||||
Net income
|
$ 1,492
|
$ 1,134
|
$ 865
|
$ 819
|
$ 886
|
||||
Performance Ratios (annualized):
|
|||||||||
Return on average assets
|
0.28%
|
0.22%
|
0.18%
|
0.18%
|
0.20%
|
||||
Return on average equity
|
2.56%
|
1.96%
|
1.49%
|
1.39%
|
1.45%
|
||||
Interest rate spread (1)
|
2.86%
|
2.80%
|
2.77%
|
2.83%
|
2.89%
|
||||
Net interest rate margin (2)
|
2.99%
|
2.94%
|
2.94%
|
3.01%
|
3.07%
|
||||
Non-interest expense to average assets
|
2.63%
|
2.80%
|
2.95%
|
3.17%
|
3.28%
|
||||
Efficiency ratio (3)
|
84.54%
|
87.19%
|
91.24%
|
91.62%
|
90.18%
|
||||
Average interest-earning assets to average
|
|||||||||
interest-bearing liabilities
|
128.59%
|
129.64%
|
130.77%
|
132.30%
|
132.02%
|
||||
Asset Quality Ratios:
|
|||||||||
Allowance for loan losses as a percent of total loans
|
0.94%
|
1.01%
|
1.02%
|
1.09%
|
1.11%
|
||||
Allowance for loan losses as a percent of
|
|||||||||
non-accrual loans
|
135.89%
|
123.74%
|
127.30%
|
122.20%
|
124.59%
|
||||
Net charge-offs to average loans (annualized)
|
0.26%
|
0.01%
|
0.01%
|
0.02%
|
0.08%
|
||||
Non-accrual loans as a percent of total loans
|
0.69%
|
0.81%
|
0.80%
|
0.89%
|
0.89%
|
||||
Non-accrual loans as a percent of total assets
|
0.59%
|
0.70%
|
0.70%
|
0.78%
|
0.77%
|
||||
Loan delinquencies 30 days and greater as a
|
|||||||||
percent of total loans
|
0.80%
|
0.85%
|
0.87%
|
0.95%
|
0.97%
|
||||
Per Share Related Data:
|
|||||||||
Basic earnings per share
|
$ 0.10
|
$ 0.07
|
$ 0.06
|
$ 0.05
|
$ 0.05
|
||||
Diluted earnings per share
|
$ 0.10
|
$ 0.07
|
$ 0.06
|
$ 0.05
|
$ 0.05
|
||||
Dividends declared per share
|
$ 0.03
|
$ 0.03
|
$ 0.03
|
$ 0.03
|
$ 0.03
|
||||
Tangible book value (4)
|
$ 14.22
|
$ 14.11
|
$ 13.88
|
$ 13.81
|
$ 13.78
|
||||
Common stock shares outstanding
|
16,203,933
|
16,457,642
|
16,416,427
|
16,763,516
|
17,644,449
|
||||
(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
|
|||||||||
March 31,
|
December 31,
|
September 30,
|
June 30,
|
March 31,
|
|||||
(Dollars in thousands)
|
2014
|
2013
|
2013
|
2013
|
2013
|
||||
Capital Ratios:
|
|||||||||
Equity to total assets at end of period
|
10.56%
|
11.01%
|
11.44%
|
12.55%
|
13.51%
|
||||
Average equity to average assets
|
10.99%
|
11.23%
|
12.11%
|
12.84%
|
13.65%
|
||||
Total capital to risk-weighted assets
|
15.05%
|
*
|
15.50%
|
16.13%
|
17.49%
|
18.63%
|
|||
Tier I capital to risk-weighted assets
|
13.97%
|
*
|
14.36%
|
14.97%
|
16.26%
|
17.39%
|
|||
Tier I capital to total average assets
|
11.02%
|
*
|
11.47%
|
12.20%
|
12.93%
|
13.91%
|
|||
Total equity to total average assets
|
10.85%
|
11.30%
|
11.90%
|
12.61%
|
13.58%
|
||||
* Estimated
|
|||||||||
Loans and Allowance for Loan Losses:
|
|||||||||
Real estate
|
|||||||||
Residential
|
$ 716,836
|
$ 693,046
|
$ 674,804
|
$ 625,345
|
$ 619,741
|
||||
Commercial
|
677,948
|
633,764
|
585,628
|
533,072
|
504,722
|
||||
Construction
|
69,476
|
78,191
|
90,033
|
80,198
|
66,508
|
||||
Installment
|
4,109
|
4,516
|
4,671
|
5,384
|
5,949
|
||||
Commercial
|
244,075
|
252,032
|
213,103
|
199,328
|
200,610
|
||||
Collateral
|
1,455
|
1,600
|
1,819
|
1,801
|
1,945
|
||||
Home equity line of credit
|
153,619
|
151,606
|
147,026
|
144,548
|
143,992
|
||||
Demand
|
124
|
85
|
-
|
-
|
-
|
||||
Revolving credit
|
80
|
94
|
78
|
62
|
73
|
||||
Resort
|
1,124
|
1,374
|
9,849
|
12,425
|
15,252
|
||||
Total loans
|
1,868,846
|
1,816,308
|
1,727,011
|
1,602,163
|
1,558,792
|
||||
Less:
|
|||||||||
Allowance for loan losses
|
(17,631)
|
(18,314)
|
(17,678)
|
(17,505)
|
(17,332)
|
||||
Net deferred loan costs
|
3,282
|
2,993
|
3,174
|
3,422
|
3,227
|
||||
Loans, net
|
$ 1,854,497
|
$ 1,800,987
|
$ 1,712,507
|
$ 1,588,080
|
$ 1,544,687
|
||||
Deposits:
|
|||||||||
Noninterest-bearing demand deposits
|
$ 303,966
|
$ 308,459
|
$ 278,275
|
$ 275,781
|
$ 245,912
|
||||
Interest-bearing
|
|||||||||
NOW accounts
|
368,700
|
285,392
|
339,350
|
280,462
|
234,450
|
||||
Money market
|
427,535
|
387,225
|
386,682
|
349,621
|
352,759
|
||||
Savings accounts
|
199,532
|
193,937
|
187,040
|
191,688
|
186,171
|
||||
Time deposits
|
334,667
|
338,488
|
359,280
|
354,767
|
356,800
|
||||
Total interest-bearing deposits
|
1,330,434
|
1,205,042
|
1,272,352
|
1,176,538
|
1,130,180
|
||||
Total deposits
|
$ 1,634,400
|
$ 1,513,501
|
$ 1,550,627
|
$ 1,452,319
|
$ 1,376,092
|
March 31,
|
December 31,
|
March 31,
|
|||||||||
2014
|
2013
|
2013
|
|||||||||
(Dollars in thousands)
|
|||||||||||
Assets
|
|||||||||||
Cash and cash equivalents
|
$ 44,110
|
$ 38,799
|
$ 34,946
|
||||||||
Securities held-to-maturity, at amortized cost
|
12,872
|
12,983
|
3,003
|
||||||||
Securities available-for-sale, at fair value
|
163,232
|
150,886
|
108,787
|
||||||||
Loans held for sale
|
3,035
|
3,186
|
6,601
|
||||||||
Loans, net
|
1,854,497
|
1,800,987
|
1,544,687
|
||||||||
Premises and equipment, net
|
20,436
|
20,619
|
20,764
|
||||||||
Federal Home Loan Bank of Boston stock, at cost
|
13,137
|
13,136
|
8,383
|
||||||||
Accrued income receivable
|
4,973
|
4,917
|
4,346
|
||||||||
Bank-owned life insurance
|
38,838
|
38,556
|
37,649
|
||||||||
Deferred income taxes
|
14,603
|
14,884
|
15,632
|
||||||||
Prepaid expenses and other assets
|
12,026
|
11,075
|
14,880
|
||||||||
Total assets |
$ 2,181,759
|
$ 2,110,028
|
$ 1,799,678
|
||||||||
Liabilities and Stockholders' Equity
|
|||||||||||
Deposits
|
|||||||||||
Interest-bearing
|
$ 1,330,434
|
$ 1,205,042
|
$ 1,130,180
|
||||||||
Noninterest-bearing
|
303,966
|
308,459
|
245,912
|
||||||||
1,634,400
|
1,513,501
|
1,376,092
|
|||||||||
Federal Home Loan Bank of Boston advances
|
206,000
|
259,000
|
76,000
|
||||||||
Repurchase agreement borrowings
|
21,000
|
21,000
|
21,000
|
||||||||
Repurchase liabilities
|
52,893
|
50,816
|
43,353
|
||||||||
Accrued expenses and other liabilities
|
36,978
|
33,502
|
40,019
|
||||||||
Total liabilities |
1,951,271
|
1,877,819
|
1,556,464
|
||||||||
Commitments and contingencies
|
-
|
-
|
-
|
||||||||
Stockholders' Equity
|
|||||||||||
Common stock
|
181
|
181
|
181
|
||||||||
Additional paid-in-capital
|
176,602
|
175,766
|
173,723
|
||||||||
Unallocated common stock held by ESOP
|
(13,485)
|
(13,747)
|
(14,545)
|
||||||||
Treasury stock, at cost
|
(26,543)
|
(22,599)
|
(5,713)
|
||||||||
Retained earnings
|
97,830
|
96,832
|
95,361
|
||||||||
Accumulated other comprehensive loss
|
(4,097)
|
(4,224)
|
(5,793)
|
||||||||
Total stockholders' equity |
230,488
|
232,209
|
243,214
|
||||||||
Total liabilities and stockholders' equity |
$ 2,181,759
|
$ 2,110,028
|
$ 1,799,678
|
Three Months Ended
|
|||||||||||
March 31,
|
December 31,
|
March 31,
|
|||||||||
(Dollars in thousands, except per share data)
|
2014
|
2013
|
2013
|
||||||||
Interest income
|
|||||||||||
Interest and fees on loans
|
|||||||||||
Mortgage
|
$ 13,428
|
$ 13,007
|
$ 11,468
|
||||||||
Other
|
3,208
|
3,437
|
3,314
|
||||||||
Interest and dividends on investments
|
|||||||||||
United States Government and agency obligations
|
189
|
134
|
139
|
||||||||
Other bonds
|
58
|
53
|
59
|
||||||||
Corporate stocks
|
93
|
64
|
62
|
||||||||
Other interest income
|
4
|
2
|
5
|
||||||||
Total interest income |
16,980
|
16,697
|
15,047
|
||||||||
Interest expense
|
|||||||||||
Deposits
|
1,694
|
1,736
|
1,705
|
||||||||
Interest on borrowed funds
|
319
|
398
|
469
|
||||||||
Interest on repo borrowings
|
177
|
181
|
171
|
||||||||
Interest on repurchase liabilities
|
40
|
51
|
50
|
||||||||
Total interest expense |
2,230
|
2,366
|
2,395
|
||||||||
Net interest income |
14,750
|
14,331
|
12,652
|
||||||||
Provision for allowance for loan losses
|
505
|
660
|
399
|
||||||||
Net interest income | |||||||||||
after provision for loan losses |
14,245
|
13,671
|
12,253
|
||||||||
Noninterest income
|
|||||||||||
Fees for customer services
|
1,191
|
1,251
|
982
|
||||||||
Net gain on loans sold
|
122
|
581
|
2,030
|
||||||||
Brokerage and insurance fee income
|
44
|
40
|
32
|
||||||||
Bank owned life insurance income
|
282
|
301
|
409
|
||||||||
Other
|
123
|
10
|
195
|
||||||||
Total noninterest income |
1,762
|
2,183
|
3,648
|
||||||||
Noninterest expense
|
|||||||||||
Salaries and employee benefits
|
8,288
|
8,691
|
9,034
|
||||||||
Occupancy expense
|
1,349
|
1,181
|
1,240
|
||||||||
Furniture and equipment expense
|
1,018
|
964
|
1,018
|
||||||||
FDIC assessment
|
328
|
329
|
291
|
||||||||
Marketing
|
378
|
368
|
594
|
||||||||
Other operating expenses
|
2,599
|
2,865
|
2,522
|
||||||||
Total noninterest expense |
13,960
|
14,398
|
14,699
|
||||||||
Income before income taxes |
2,047
|
1,456
|
1,202
|
||||||||
Provision for income taxes
|
555
|
322
|
316
|
||||||||
Net income |
$ 1,492
|
$ 1,134
|
$ 886
|
||||||||
Earnings per share:
|
|||||||||||
Basic
|
$ 0.10
|
$ 0.07
|
$ 0.05
|
||||||||
Diluted
|
0.10
|
0.07
|
0.05
|
||||||||
Weighted average shares outstanding:
|
|||||||||||
Basic
|
14,820,700
|
14,880,971
|
15,940,377
|
||||||||
Diluted
|
14,920,837
|
14,897,762
|
15,940,377
|
For The Three Months Ended
|
|||||||||||
March 31, 2014
|
December 31, 2013
|
March 31, 2013
|
|||||||||
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
|
$ 1,819,567
|
$ 16,636
|
3.71%
|
$ 1,767,468
|
$ 16,444
|
3.69%
|
$1,522,812
|
$ 14,782
|
3.94%
|
||
Securities
|
160,663
|
302
|
0.76%
|
148,653
|
243
|
0.65%
|
126,347
|
252
|
0.81%
|
||
Federal Home Loan Bank of Boston stock
|
13,136
|
38
|
1.17%
|
10,338
|
8
|
0.31%
|
8,809
|
8
|
0.37%
|
||
Federal funds and other earning assets
|
5,858
|
4
|
0.28%
|
5,093
|
2
|
0.16%
|
11,015
|
5
|
0.18%
|
||
Total interest-earning assets
|
1,999,224
|
16,980
|
3.44%
|
1,931,552
|
16,697
|
3.43%
|
1,668,983
|
15,047
|
3.66%
|
||
Noninterest-earning assets
|
125,272
|
123,891
|
121,571
|
||||||||
Total assets
|
$ 2,124,496
|
$ 2,055,443
|
$1,790,554
|
||||||||
Interest-bearing liabilities:
|
|||||||||||
NOW accounts
|
$ 352,428
|
$ 197
|
0.23%
|
$ 305,045
|
$ 172
|
0.22%
|
$ 233,891
|
$ 135
|
0.23%
|
||
Money market
|
409,161
|
684
|
0.68%
|
388,503
|
732
|
0.75%
|
336,400
|
586
|
0.71%
|
||
Savings accounts
|
193,142
|
55
|
0.12%
|
190,258
|
51
|
0.11%
|
180,440
|
85
|
0.19%
|
||
Certificates of deposit
|
336,286
|
758
|
0.91%
|
346,977
|
781
|
0.89%
|
356,422
|
899
|
1.02%
|
||
Total interest-bearing deposits
|
1,291,017
|
1,694
|
0.53%
|
1,230,783
|
1,736
|
0.56%
|
1,107,153
|
1,705
|
0.62%
|
||
Advances from the Federal Home Loan Bank
|
181,522
|
319
|
0.71%
|
170,000
|
398
|
0.93%
|
80,468
|
469
|
2.36%
|
||
Repurchase agreement borrowings
|
21,000
|
177
|
3.42%
|
21,000
|
181
|
3.42%
|
21,000
|
171
|
3.30%
|
||
Repurchase liabilities
|
61,187
|
40
|
0.27%
|
68,122
|
51
|
0.30%
|
55,573
|
50
|
0.36%
|
||
Total interest-bearing liabilities
|
1,554,726
|
2,230
|
0.58%
|
1,489,905
|
2,366
|
0.63%
|
1,264,194
|
2,395
|
0.77%
|
||
Noninterest-bearing deposits
|
299,620
|
294,071
|
239,840
|
||||||||
Other noninterest-bearing liabilities
|
36,625
|
40,543
|
42,140
|
||||||||
Total liabilities
|
1,890,971
|
1,824,519
|
1,546,174
|
||||||||
Stockholders' equity
|
233,525
|
230,924
|
244,380
|
||||||||
Total liabilities and stockholders' equity
|
$ 2,124,496
|
$ 2,055,443
|
$1,790,554
|
||||||||
Net interest income
|
$ 14,750
|
$ 14,331
|
$ 12,652
|
||||||||
Net interest rate spread (1)
|
2.86%
|
2.80%
|
2.89%
|
||||||||
Net interest-earning assets (2)
|
$ 444,498
|
$ 441,647
|
$ 404,789
|
||||||||
Net interest margin (3)
|
2.99%
|
2.94%
|
3.07%
|
||||||||
Average interest-earning assets
|
|||||||||||
to average interest-bearing liabilities
|
128.59%
|
129.64%
|
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.
|
At or for the Three Months Ended
|
||||||||||
March 31,
|
December 31,
|
September 30,
|
June 30,
|
March 31,
|
||||||
(Dollars in thousands, except per share data)
|
2014
|
2013
|
2013
|
2013
|
2013
|
|||||
Net Income
|
$ 1,492
|
$ 1,134
|
$ 865
|
$ 819
|
$ 886
|
|||||
Adjustments:
|
||||||||||
Less: Prepayment penalty fees
|
-
|
(144)
|
-
|
(20)
|
(127)
|
|||||
Less: Net gain on sales of investments
|
-
|
-
|
(304)
|
(36)
|
-
|
|||||
Less: Bank-owned life insurance proceeds (1)
|
-
|
-
|
-
|
-
|
(108)
|
|||||
Plus: Accelerated vesting of stock compensation (1)
|
-
|
-
|
-
|
-
|
633
|
|||||
Total core adjustments before taxes
|
-
|
(144)
|
(304)
|
(56)
|
398
|
|||||
Tax benefit (provision) - 34% rate
|
-
|
49
|
103
|
19
|
(135)
|
|||||
Total core adjustments after taxes
|
-
|
(95)
|
(201)
|
(37)
|
263
|
|||||
Total core net income
|
$ 1,492
|
$ 1,039
|
$ 664
|
$ 782
|
$ 1,149
|
|||||
Total net interest income
|
$ 14,750
|
$ 14,331
|
$ 13,283
|
$ 12,887
|
$ 12,652
|
|||||
Less: Prepayment penalty fees
|
-
|
(144)
|
-
|
(20)
|
(127)
|
|||||
Total core net interest income
|
$ 14,750
|
$ 14,187
|
$ 13,283
|
$ 12,867
|
$ 12,525
|
|||||
Total noninterest income
|
$ 1,762
|
$ 2,183
|
$ 2,182
|
$ 2,999
|
$ 3,648
|
|||||
Less: Net gain on sales of investments
|
-
|
-
|
(304)
|
(36)
|
-
|
|||||
Less: Bank-owned life insurance proceeds (1)
|
-
|
-
|
-
|
-
|
(108)
|
|||||
Total core noninterest income
|
$ 1,762
|
$ 2,183
|
$ 1,878
|
$ 2,963
|
$ 3,540
|
|||||
Total noninterest expense
|
$ 13,960
|
$ 14,398
|
$ 14,110
|
$ 14,555
|
$ 14,699
|
|||||
Less: Accelerated vesting of stock compensation (1)
|
-
|
-
|
-
|
-
|
(633)
|
|||||
Total core noninterest expense
|
$ 13,960
|
$ 14,398
|
$ 14,110
|
$ 14,555
|
$ 14,066
|
|||||
Core earnings per common share, diluted
|
$ 0.10
|
$ 0.07
|
$ 0.04
|
$ 0.05
|
$ 0.07
|
|||||
Core return on assets (annualized)
|
0.28%
|
0.20%
|
0.14%
|
0.17%
|
0.26%
|
|||||
Core return on equity (annualized)
|
2.56%
|
1.80%
|
1.14%
|
1.33%
|
1.88%
|
|||||
Efficiency ratio (2)
|
84.54%
|
87.95%
|
93.07%
|
91.95%
|
87.56%
|
|||||
Tangible book value (3)
|
$ 14.22
|
$ 14.11
|
$ 13.88
|
$ 13.81
|
$ 13.78
|
|||||
(1) Represents the accelerated vesting of stock compensation and insurance proceeds due to the passing of a key executive in the first quarter of 2013.
|
||||||||||
(2) Represents core noninterest expense divided by the sum of net core interest income and core noninterest income.
|
||||||||||
(3) 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.
|