Maryland
|
333-171913
|
45-1496206
|
(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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¨
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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¨
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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¨
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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¨
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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TABLE OF CONTENTS
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Item 2.02
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Results of Operations and Financial Conditions
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Item 9.01
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Financial Statements and Exhibits
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SIGNATURES
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EXHIBIT INDEX
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EX-99.1
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Press Release
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Item 2.02
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Results of Operations and Financial Conditions
|
On October 23, 2014, First Connecticut Bancorp, Inc., the holding company for Farmington Bank, issued a Press Release describing its results of operation for the third quarter ended September 30, 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
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Financial Statements and Exhibits
|
(a)
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Not applicable.
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(b)
|
Not applicable.
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(c)
|
Not applicable.
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(d)
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Exhibits.
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Exhibit Number
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Description
|
99.1
|
Press Release dated October 23, 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.
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|
FIRST CONNECTICUT BANCORP, INC.
|
|
Registrant
|
|
October 23, 2014
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By: /s/ John J. Patrick, Jr.
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John J. Patrick, Jr.
|
|
Chairman, President and
|
|
and Chief Executive Officer
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Exhibit Number
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Description
|
99.1
|
Press Release dated October 23, 2014
|
·
|
Net interest income increased $421,000 to $16.0 million in the third quarter of 2014 compared to $15.6 million in the linked quarter and increased $2.7 million or 20% compared to third quarter of 2013.
|
·
|
Strong organic loan growth continued during the quarter as total loans increased $101.5 million to $2.0 billion at September 30, 2014 and increased $319.6 million or 19% from a year ago.
|
·
|
Noninterest expense to average assets was 2.46% in the third quarter of 2014 compared to 2.60% in the linked quarter and 2.95% in the third quarter of 2013.
|
·
|
Tangible book value per share grew to $14.56 compared to $14.39 on a linked quarter basis and $13.88 at September 30, 2013.
|
·
|
Checking accounts grew by 3.3% or 1,419 net new accounts in the third quarter of 2014.
|
·
|
Asset quality remains stable as loan delinquencies 30 days and greater remained flat at 0.78% of total loans at September 30, 2014 and June 30, 2014 and improved from 0.87% of total loans at September 30, 2013. Non-accrual loans represented 0.76% of total loans compared to 0.75% of total loans on a linked quarter basis and improved from 0.80% of total loans at September 30, 2013.
|
·
|
The allowance for loan losses represented 0.91% of total loans at September 30, 2014 compared to 0.92% at June 30, 2014 and 1.02% at September 30, 2013.
|
·
|
The Company paid a cash dividend of $0.05 per share on September 15, 2014, an increase of $0.01 compared to the linked quarter. This marks the twelfth consecutive quarter the Company has paid a dividend since it became a public company on June 29, 2011.
|
·
|
Net interest income increased $421,000 to $16.0 million in the third quarter of 2014 compared to the linked quarter due primarily to an $88.7 million increase in the average net loan balance offset by an 11 basis point decrease in the net interest rate spread to 2.77%.
|
·
|
Net interest margin decreased to 2.89% in the third quarter of 2014 compared to 3.01% in the second quarter of 2014. Excluding prepayment penalty fee income, second quarter net interest margin would have been 2.97%.
|
·
|
The cost of interest-bearing liabilities increased to 59 basis points in the third quarter of 2014 compared to 57 basis points in the second quarter of 2014.
|
·
|
Provision for loan losses was $1.0 million for the third quarter of 2014 compared to $410,000 for the linked quarter. The increase in the third quarter 2014 provision was primarily due to an increase in loan growth and the composition of new loan originations.
|
·
|
Net charge-offs in the quarter were $397,000 or 0.08% to average loans (annualized) compared to $129,000 or 0.03% to average loans (annualized) in the linked quarter.
|
·
|
The allowance for loan losses represented 0.91% of total loans at September 30, 2014 compared to 0.92% at June 30, 2014.
|
·
|
Total noninterest income increased $712,000 to $2.8 million in the third quarter of 2014 compared to the linked quarter due to a $316,000 increase in net gain on loans sold, $142,000 increase in fees for customer services and a $253,000 increase in other income related to swap fees and mortgage banking derivatives.
|
·
|
Noninterest expense remained flat in the third quarter of 2014 at $14.2 million compared to the linked quarter. Marketing expenses decreased $177,000 due to seasonal sponsorships offset by increases in occupancy expense and other operating expenses.
|
·
|
Income tax expense was $997,000 in the third quarter of 2014 compared to $776,000 in the linked quarter.
|
·
|
Net interest income increased $2.7 million or 20% to $16.0 million compared to $13.3 million in the third quarter of 2013 primarily due to a $329.9 million increase in the average net loan balance despite a 12 basis point decrease in the yield on loans.
|
·
|
Net interest margin decreased to 2.89% in the third quarter of 2014 compared to 2.94% in the third quarter of 2013.
|
·
|
The cost of interest-bearing liabilities declined 14 basis points to 59 basis points in the third quarter of 2014 compared to 73 basis points in the third quarter of 2013. The decline was primarily due to a 9 basis point decrease in certificates of deposit and a 135 basis point 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 $1.0 million for the third quarter of 2014 compared to $215,000 for the prior year quarter. The increase in the third quarter 2014 provision was primarily due to the composition of new loan originations.
|
·
|
Net charge-offs in the quarter were $397,000 or 0.08% to average loans (annualized) compared to $42,000 or 0.01% to average loans (annualized) in the prior year quarter.
|
·
|
The allowance for loan losses represented 0.91% of total loans at September 30, 2014 compared to 1.02% at September 30, 2013.
|
·
|
Total noninterest income increased $596,000 to $2.8 million compared to the prior year quarter primarily due to a $230,000 increase in fees for customer services and a $671,000 increase in other income offset by a $304,000 decrease in gain on sale of investments. Other income increased $671,000 primarily due to swap fees and mortgage banking derivatives. There were no sales of investments in the third quarter of 2014.
|
·
|
Noninterest expense increased $109,000 to $14.2 million in the third quarter of 2014 compared to the prior year quarter.
|
·
|
Income tax expense was $997,000 in the third quarter of 2014 compared to $275,000 in the prior year quarter.
|
·
|
Total assets increased $403.2 million or 20% at September 30, 2014 to $2.4 billion compared to $2.0 billion at September 30, 2013 largely reflecting an increase in loans and securities.
|
·
|
Our investment portfolio totaled $207.1 million at September 30, 2014 compared to $123.4 million at September 30, 2013, an increase of $83.8 million.
|
·
|
Net loans increased $319.3 million at September 30, 2014 to $2.0 billion compared to $1.7 billion at September 30, 2013 due to our continued focus on commercial and residential lending, which combined, increased $329.5 million.
|
·
|
Deposits increased $177.4 million at September 30, 2014 to $1.7 billion compared to $1.6 billion at September 30, 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 $200.7 million to $304.7 million at September 30, 2014 compared to $104.0 million at September 30, 2013. Advances were used to support loan and securities growth.
|
·
|
At September 30, 2014, the allowance for loan losses represented 0.91% of total loans and 119.91% of non-accrual loans, compared to 1.02% of total loans and 127.30% of non-accrual loans at September 30, 2013.
|
·
|
Loan delinquencies 30 days and greater decreased to 0.78% of total loans at September 30, 2014 compared to 0.87% of total loans at September 30, 2013.
|
·
|
Non-accrual loans represented 0.76% of total loans at September 30, 2014 compared to 0.80% of total loans at September 30, 2013.
|
·
|
Net charge-offs in the quarter were $397,000 or 0.08% to average loans (annualized) compared to $42,000 or 0.01% to average loans (annualized) in the prior year quarter.
|
·
|
The Company remained well-capitalized with an estimated total capital to risk-weighted asset ratio of 14.11% at September 30, 2014.
|
·
|
Tangible book value per share grew to $14.56 compared to $14.39 on a linked quarter basis and $13.88 at the quarter ended September 30, 2013.
|
·
|
During the third quarter of 2014, the Company repurchased 2,500 shares of common stock at an average price per share of $14.54 at a total cost of $36,000. Repurchased shares are held as treasury stock and will be available for general corporate purposes. The Company has 921,477 shares remaining to repurchase at September 30, 2014 from prior regulatory approval.
|
·
|
At September 30, 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.
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At or for the Three Months Ended
|
||||||||||||||||||||
September 30, |
June 30,
|
March 31,
|
December 31, | September 30, | ||||||||||||||||
(Dollars in thousands, except per share data)
|
2014
|
2014
|
2014
|
2013
|
2013
|
|||||||||||||||
Selected Financial Condition Data:
|
||||||||||||||||||||
Total assets
|
$ | 2,395,674 | $ | 2,267,709 | $ | 2,181,759 | $ | 2,110,028 | $ | 1,992,517 | ||||||||||
Cash and cash equivalents
|
43,914 | 50,778 | 44,110 | 38,799 | 50,323 | |||||||||||||||
Securities held-to-maturity, at amortized cost
|
12,439 | 12,715 | 12,872 | 12,983 | 3,002 | |||||||||||||||
Securities available-for-sale, at fair value
|
194,706 | 160,784 | 163,232 | 150,886 | 120,382 | |||||||||||||||
Federal Home Loan Bank of Boston stock, at cost
|
17,724 | 17,724 | 13,137 | 13,136 | 8,383 | |||||||||||||||
Loans, net
|
2,031,780 | 1,930,502 | 1,854,497 | 1,800,987 | 1,712,507 | |||||||||||||||
Deposits
|
1,727,994 | 1,630,779 | 1,634,400 | 1,513,501 | 1,550,627 | |||||||||||||||
Federal Home Loan Bank of Boston advances
|
304,700 | 291,000 | 206,000 | 259,000 | 104,000 | |||||||||||||||
Total stockholders' equity
|
233,646 | 231,269 | 230,488 | 232,209 | 227,864 | |||||||||||||||
Allowance for loan losses
|
18,556 | 17,912 | 17,631 | 18,314 | 17,678 | |||||||||||||||
Non-accrual loans
|
15,475 | 14,652 | 12,974 | 14,800 | 13,887 | |||||||||||||||
Impaired loans
|
39,579 | 41,891 | 41,782 | 39,623 | 42,587 | |||||||||||||||
Loan delinquencies 30 days and greater
|
15,922 | 15,257 | 14,882 | 15,511 | 15,032 | |||||||||||||||
Selected Operating Data:
|
||||||||||||||||||||
Interest income
|
$ | 18,528 | $ | 17,854 | $ | 16,980 | $ | 16,697 | $ | 15,806 | ||||||||||
Interest expense
|
2,543 | 2,290 | 2,230 | 2,366 | 2,523 | |||||||||||||||
Net interest income
|
15,985 | 15,564 | 14,750 | 14,331 | 13,283 | |||||||||||||||
Provision for loan losses
|
1,041 | 410 | 505 | 660 | 215 | |||||||||||||||
Net interest income after provision for loan losses
|
14,944 | 15,154 | 14,245 | 13,671 | 13,068 | |||||||||||||||
Noninterest income
|
2,778 | 2,066 | 1,762 | 2,183 | 2,182 | |||||||||||||||
Noninterest expense
|
14,219 | 14,254 | 13,960 | 14,398 | 14,110 | |||||||||||||||
Income before income taxes
|
3,503 | 2,966 | 2,047 | 1,456 | 1,140 | |||||||||||||||
Income tax expense
|
997 | 776 | 555 | 322 | 275 | |||||||||||||||
Net income
|
$ | 2,506 | $ | 2,190 | $ | 1,492 | $ | 1,134 | $ | 865 | ||||||||||
Performance Ratios (annualized):
|
||||||||||||||||||||
Return on average assets
|
0.43 | % | 0.40 | % | 0.28 | % | 0.22 | % | 0.18 | % | ||||||||||
Return on average equity
|
4.27 | % | 3.77 | % | 2.56 | % | 1.96 | % | 1.49 | % | ||||||||||
Interest rate spread (1)
|
2.77 | % | 2.88 | % | 2.86 | % | 2.80 | % | 2.77 | % | ||||||||||
Net interest rate margin (2)
|
2.89 | % | 3.01 | % | 2.99 | % | 2.94 | % | 2.94 | % | ||||||||||
Non-interest expense to average assets
|
2.46 | % | 2.60 | % | 2.63 | % | 2.80 | % | 2.95 | % | ||||||||||
Efficiency ratio (3)
|
75.78 | % | 80.85 | % | 84.54 | % | 87.19 | % | 91.24 | % | ||||||||||
Average interest-earning assets to average
|
||||||||||||||||||||
interest-bearing liabilities
|
127.11 | % | 128.04 | % | 128.59 | % | 129.64 | % | 130.77 | % | ||||||||||
Asset Quality Ratios:
|
||||||||||||||||||||
Allowance for loan losses as a percent of total loans
|
0.91 | % | 0.92 | % | 0.94 | % | 1.01 | % | 1.02 | % | ||||||||||
Allowance for loan losses as a percent of
|
||||||||||||||||||||
non-accrual loans
|
119.91 | % | 122.25 | % | 135.89 | % | 123.74 | % | 127.30 | % | ||||||||||
Net charge-offs to average loans (annualized)
|
0.08 | % | 0.03 | % | 0.26 | % | 0.01 | % | 0.01 | % | ||||||||||
Non-accrual loans as a percent of total loans
|
0.76 | % | 0.75 | % | 0.69 | % | 0.81 | % | 0.80 | % | ||||||||||
Non-accrual loans as a percent of total assets
|
0.65 | % | 0.65 | % | 0.59 | % | 0.70 | % | 0.70 | % | ||||||||||
Loan delinquencies 30 days and greater as a
|
||||||||||||||||||||
percent of total loans
|
0.78 | % | 0.78 | % | 0.80 | % | 0.85 | % | 0.87 | % | ||||||||||
Per Share Related Data:
|
||||||||||||||||||||
Basic earnings per share
|
$ | 0.17 | $ | 0.15 | $ | 0.10 | $ | 0.07 | $ | 0.06 | ||||||||||
Diluted earnings per share
|
$ | 0.17 | $ | 0.14 | $ | 0.10 | $ | 0.07 | $ | 0.06 | ||||||||||
Dividends declared per share
|
$ | 0.05 | $ | 0.04 | $ | 0.03 | $ | 0.03 | $ | 0.03 | ||||||||||
Tangible book value (4)
|
$ | 14.56 | $ | 14.39 | $ | 14.22 | $ | 14.11 | $ | 13.88 | ||||||||||
Common stock shares outstanding
|
16,043,031 | 16,072,637 | 16,203,933 | 16,457,642 | 16,416,427 | |||||||||||||||
(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
|
||||||||||||||||||||
September 30, |
June 30,
|
March 31,
|
December 31, | September 30, | ||||||||||||||||
(Dollars in thousands)
|
2014
|
2014
|
2014
|
2013
|
2013
|
|||||||||||||||
Capital Ratios:
|
||||||||||||||||||||
Equity to total assets at end of period
|
9.75 | % | 10.20 | % | 10.56 | % | 11.01 | % | 11.44 | % | ||||||||||
Average equity to average assets
|
10.13 | % | 10.59 | % | 10.99 | % | 11.23 | % | 12.11 | % | ||||||||||
Total capital to risk-weighted assets
|
14.11 | % * | 14.56 | % | 15.05 | % | 15.50 | % | 16.13 | % | ||||||||||
Tier I capital to risk-weighted assets
|
13.06 | % * | 13.51 | % | 13.97 | % | 14.36 | % | 14.97 | % | ||||||||||
Tier I capital to total average assets
|
10.24 | % * | 10.70 | % | 11.02 | % | 11.47 | % | 12.20 | % | ||||||||||
Total equity to total average assets
|
10.09 | % | 10.54 | % | 10.85 | % | 11.30 | % | 11.90 | % | ||||||||||
* Estimated
|
||||||||||||||||||||
Loans and Allowance for Loan Losses:
|
||||||||||||||||||||
Real estate
|
||||||||||||||||||||
Residential
|
$ | 789,166 | $ | 749,124 | $ | 716,836 | $ | 693,046 | $ | 674,804 | ||||||||||
Commercial
|
717,399 | 686,299 | 677,948 | 633,764 | 585,628 | |||||||||||||||
Construction
|
80,242 | 69,047 | 69,476 | 78,191 | 90,033 | |||||||||||||||
Installment
|
3,524 | 3,850 | 4,109 | 4,516 | 4,671 | |||||||||||||||
Commercial
|
289,708 | 277,483 | 244,075 | 252,032 | 213,103 | |||||||||||||||
Collateral
|
1,826 | 1,480 | 1,455 | 1,600 | 1,819 | |||||||||||||||
Home equity line of credit
|
163,608 | 156,625 | 153,619 | 151,606 | 147,026 | |||||||||||||||
Demand
|
- | - | 124 | 85 | - | |||||||||||||||
Revolving credit
|
97 | 75 | 80 | 94 | 78 | |||||||||||||||
Resort
|
1,019 | 1,068 | 1,124 | 1,374 | 9,849 | |||||||||||||||
Total loans
|
2,046,589 | 1,945,051 | 1,868,846 | 1,816,308 | 1,727,011 | |||||||||||||||
Less:
|
||||||||||||||||||||
Allowance for loan losses
|
(18,556 | ) | (17,912 | ) | (17,631 | ) | (18,314 | ) | (17,678 | ) | ||||||||||
Net deferred loan costs
|
3,747 | 3,363 | 3,282 | 2,993 | 3,174 | |||||||||||||||
Loans, net
|
$ | 2,031,780 | $ | 1,930,502 | $ | 1,854,497 | $ | 1,800,987 | $ | 1,712,507 | ||||||||||
Deposits:
|
||||||||||||||||||||
Noninterest-bearing demand deposits
|
$ | 323,499 | $ | 315,916 | $ | 303,966 | $ | 308,459 | $ | 278,275 | ||||||||||
Interest-bearing
|
||||||||||||||||||||
NOW accounts
|
454,650 | 377,570 | 368,700 | 285,392 | 339,350 | |||||||||||||||
Money market
|
417,498 | 401,694 | 427,535 | 387,225 | 386,682 | |||||||||||||||
Savings accounts
|
200,501 | 202,970 | 199,532 | 193,937 | 187,040 | |||||||||||||||
Time deposits
|
331,846 | 332,629 | 334,667 | 338,488 | 359,280 | |||||||||||||||
Total interest-bearing deposits
|
1,404,495 | 1,314,863 | 1,330,434 | 1,205,042 | 1,272,352 | |||||||||||||||
Total deposits
|
$ | 1,727,994 | $ | 1,630,779 | $ | 1,634,400 | $ | 1,513,501 | $ | 1,550,627 |
September 30, |
June 30,
|
December 31, | ||||||||||
2014
|
2014
|
2013
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Assets
|
||||||||||||
Cash and cash equivalents
|
$ | 43,914 | $ | 50,778 | $ | 38,799 | ||||||
Securities held-to-maturity, at amortized cost
|
12,439 | 12,715 | 12,983 | |||||||||
Securities available-for-sale, at fair value
|
194,706 | 160,784 | 150,886 | |||||||||
Loans held for sale
|
5,533 | 4,576 | 3,186 | |||||||||
Loans, net
|
2,031,780 | 1,930,502 | 1,800,987 | |||||||||
Premises and equipment, net
|
19,384 | 20,072 | 20,619 | |||||||||
Federal Home Loan Bank of Boston stock, at cost
|
17,724 | 17,724 | 13,136 | |||||||||
Accrued income receivable
|
5,331 | 5,133 | 4,917 | |||||||||
Bank-owned life insurance
|
39,403 | 39,120 | 38,556 | |||||||||
Deferred income taxes
|
14,529 | 14,756 | 14,884 | |||||||||
Prepaid expenses and other assets
|
10,931 | 11,549 | 11,075 | |||||||||
Total assets
|
$ | 2,395,674 | $ | 2,267,709 | $ | 2,110,028 | ||||||
Liabilities and Stockholders' Equity
|
||||||||||||
Deposits
|
||||||||||||
Interest-bearing
|
$ | 1,404,495 | $ | 1,314,863 | $ | 1,205,042 | ||||||
Noninterest-bearing
|
323,499 | 315,916 | 308,459 | |||||||||
1,727,994 | 1,630,779 | 1,513,501 | ||||||||||
Federal Home Loan Bank of Boston advances
|
304,700 | 291,000 | 259,000 | |||||||||
Repurchase agreement borrowings
|
21,000 | 21,000 | 21,000 | |||||||||
Repurchase liabilities
|
73,855 | 55,326 | 50,816 | |||||||||
Accrued expenses and other liabilities
|
34,479 | 38,335 | 33,502 | |||||||||
Total liabilities
|
2,162,028 | 2,036,440 | 1,877,819 | |||||||||
Stockholders' Equity
|
||||||||||||
Common stock
|
181 | 181 | 181 | |||||||||
Additional paid-in-capital
|
177,937 | 177,431 | 175,766 | |||||||||
Unallocated common stock held by ESOP
|
(12,949 | ) | (13,218 | ) | (13,747 | ) | ||||||
Treasury stock, at cost
|
(28,585 | ) | (28,577 | ) | (22,599 | ) | ||||||
Retained earnings
|
101,089 | 99,386 | 96,832 | |||||||||
Accumulated other comprehensive loss
|
(4,027 | ) | (3,934 | ) | (4,224 | ) | ||||||
Total stockholders' equity
|
233,646 | 231,269 | 232,209 | |||||||||
Total liabilities and stockholders' equity
|
$ | 2,395,674 | $ | 2,267,709 | $ | 2,110,028 | ||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||||||
September 30, |
June 30,
|
September 30, |
September 30,
|
|||||||||||||||||
(Dollars in thousands, except per share data)
|
2014
|
2014
|
2013
|
2014
|
2013
|
|||||||||||||||
Interest income
|
||||||||||||||||||||
Interest and fees on loans
|
||||||||||||||||||||
Mortgage
|
$ | 14,490 | $ | 13,875 | $ | 12,381 | $ | 41,793 | $ | 35,721 | ||||||||||
Other
|
3,608 | 3,573 | 3,199 | 10,389 | 9,746 | |||||||||||||||
Interest and dividends on investments
|
||||||||||||||||||||
United States Government and agency obligations
|
258 | 218 | 103 | 665 | 344 | |||||||||||||||
Other bonds
|
57 | 81 | 59 | 196 | 177 | |||||||||||||||
Corporate stocks
|
109 | 105 | 62 | 307 | 188 | |||||||||||||||
Other interest income
|
6 | 2 | 2 | 12 | 13 | |||||||||||||||
Total interest income
|
18,528 | 17,854 | 15,806 | 53,362 | 46,189 | |||||||||||||||
Interest expense
|
||||||||||||||||||||
Deposits
|
1,845 | 1,711 | 1,914 | 5,250 | 5,446 | |||||||||||||||
Interest on borrowed funds
|
479 | 368 | 383 | 1,166 | 1,253 | |||||||||||||||
Interest on repo borrowings
|
182 | 179 | 181 | 538 | 532 | |||||||||||||||
Interest on repurchase liabilities
|
37 | 32 | 45 | 109 | 136 | |||||||||||||||
Total interest expense
|
2,543 | 2,290 | 2,523 | 7,063 | 7,367 | |||||||||||||||
Net interest income
|
15,985 | 15,564 | 13,283 | 46,299 | 38,822 | |||||||||||||||
Provision for loan losses
|
1,041 | 410 | 215 | 1,956 | 870 | |||||||||||||||
Net interest income
|
||||||||||||||||||||
after provision for loan losses
|
14,944 | 15,154 | 13,068 | 44,343 | 37,952 | |||||||||||||||
Noninterest income
|
||||||||||||||||||||
Fees for customer services
|
1,459 | 1,317 | 1,229 | 3,967 | 3,308 | |||||||||||||||
Gain on sale of investments
|
- | - | 304 | - | 340 | |||||||||||||||
Net gain on loans sold
|
633 | 317 | 625 | 1,072 | 4,244 | |||||||||||||||
Brokerage and insurance fee income
|
47 | 49 | 37 | 140 | 110 | |||||||||||||||
Bank owned life insurance income
|
284 | 281 | 303 | 847 | 1,015 | |||||||||||||||
Other
|
355 | 102 | (316 | ) | 580 | (188 | ) | |||||||||||||
Total noninterest income
|
2,778 | 2,066 | 2,182 | 6,606 | 8,829 | |||||||||||||||
Noninterest expense
|
||||||||||||||||||||
Salaries and employee benefits
|
8,593 | 8,638 | 8,571 | 25,519 | 26,160 | |||||||||||||||
Occupancy expense
|
1,271 | 1,209 | 1,175 | 3,829 | 3,541 | |||||||||||||||
Furniture and equipment expense
|
1,093 | 1,106 | 998 | 3,217 | 3,115 | |||||||||||||||
FDIC assessment
|
361 | 321 | 341 | 1,010 | 943 | |||||||||||||||
Marketing
|
332 | 509 | 423 | 1,219 | 1,627 | |||||||||||||||
Other operating expenses
|
2,569 | 2,471 | 2,602 | 7,639 | 7,978 | |||||||||||||||
Total noninterest expense
|
14,219 | 14,254 | 14,110 | 42,433 | 43,364 | |||||||||||||||
Income before income taxes
|
3,503 | 2,966 | 1,140 | 8,516 | 3,417 | |||||||||||||||
Income tax expense
|
997 | 776 | 275 | 2,328 | 847 | |||||||||||||||
Net income
|
$ | 2,506 | $ | 2,190 | $ | 865 | $ | 6,188 | $ | 2,570 | ||||||||||
Earnings per share:
|
||||||||||||||||||||
Basic
|
$ | 0.17 | $ | 0.15 | $ | 0.06 | $ | 0.41 | $ | 0.16 | ||||||||||
Diluted
|
0.17 | 0.14 | 0.06 | 0.41 | 0.16 | |||||||||||||||
Weighted average shares outstanding:
|
||||||||||||||||||||
Basic
|
14,613,115 | 14,601,416 | 14,947,576 | 14,677,650 | 15,372,552 | |||||||||||||||
Diluted
|
14,710,880 | 14,707,472 | 14,947,576 | 14,778,961 | 15,372,552 | |||||||||||||||
For The Three Months Ended
|
|||||||||||
September 30, 2014
|
June 30, 2014
|
September 30, 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
|
$ 1,978,854
|
$ 18,098
|
3.63%
|
$ 1,890,132
|
$ 17,448
|
3.70%
|
$ 1,648,948
|
$ 15,580
|
3.75%
|
||
Securities
|
189,246
|
369
|
0.77%
|
167,250
|
355
|
0.85%
|
131,602
|
216
|
0.65%
|
||
Federal Home Loan Bank of Boston stock
|
17,724
|
55
|
1.23%
|
14,744
|
49
|
1.33%
|
8,383
|
8
|
0.38%
|
||
Federal funds and other earning assets
|
4,918
|
6
|
0.48%
|
3,567
|
2
|
0.22%
|
3,288
|
2
|
0.24%
|
||
Total interest-earning assets
|
2,190,742
|
18,528
|
3.36%
|
2,075,693
|
17,854
|
3.45%
|
1,792,221
|
15,806
|
3.50%
|
||
Noninterest-earning assets
|
124,823
|
118,056
|
122,886
|
||||||||
Total assets
|
$ 2,315,565
|
$ 2,193,749
|
$ 1,915,107
|
||||||||
Interest-bearing liabilities:
|
|||||||||||
NOW accounts
|
$ 436,303
|
$ 313
|
0.28%
|
$ 332,597
|
$ 185
|
0.22%
|
$ 303,882
|
$ 180
|
0.24%
|
||
Money market
|
406,293
|
748
|
0.73%
|
414,774
|
754
|
0.73%
|
371,614
|
794
|
0.85%
|
||
Savings accounts
|
199,505
|
57
|
0.11%
|
204,217
|
42
|
0.08%
|
185,732
|
79
|
0.17%
|
||
Certificates of deposit
|
330,496
|
727
|
0.87%
|
335,391
|
730
|
0.87%
|
356,994
|
861
|
0.96%
|
||
Total interest-bearing deposits
|
1,372,597
|
1,845
|
0.53%
|
1,286,979
|
1,711
|
0.53%
|
1,218,222
|
1,914
|
0.62%
|
||
Advances from the Federal Home Loan Bank
|
270,250
|
479
|
0.70%
|
259,980
|
368
|
0.57%
|
74,101
|
383
|
2.05%
|
||
Repurchase agreement borrowings
|
21,000
|
182
|
3.44%
|
21,000
|
179
|
3.42%
|
21,000
|
181
|
3.42%
|
||
Repurchase liabilities
|
59,624
|
37
|
0.25%
|
53,159
|
32
|
0.24%
|
57,187
|
45
|
0.31%
|
||
Total interest-bearing liabilities
|
1,723,471
|
2,543
|
0.59%
|
1,621,118
|
2,290
|
0.57%
|
1,370,510
|
2,523
|
0.73%
|
||
Noninterest-bearing deposits
|
321,008
|
303,473
|
272,621
|
||||||||
Other noninterest-bearing liabilities
|
36,482
|
36,891
|
39,772
|
||||||||
Total liabilities
|
2,080,961
|
1,961,482
|
1,682,903
|
||||||||
Stockholders' equity
|
234,604
|
232,267
|
232,204
|
||||||||
Total liabilities and stockholders' equity
|
$ 2,315,565
|
$ 2,193,749
|
$ 1,915,107
|
||||||||
Net interest income
|
$ 15,985
|
$ 15,564
|
$ 13,283
|
||||||||
Net interest rate spread (1)
|
2.77%
|
2.88%
|
2.77%
|
||||||||
Net interest-earning assets (2)
|
$ 467,271
|
$ 454,575
|
$ 421,711
|
||||||||
Net interest margin (3)
|
2.89%
|
3.01%
|
2.94%
|
||||||||
Average interest-earning assets to average interest-bearing liabilities
|
|||||||||||
127.11%
|
128.04%
|
130.77%
|
|||||||||
(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 Nine Months Ended September 30,
|
||||||||||||||||||||||||
2014
|
2013
|
|||||||||||||||||||||||
Average Balance
|
Interest and Dividends
|
Yield/Cost
|
Average Balance
|
Interest and Dividends
|
Yield/Cost
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans, net
|
$ | 1,896,768 | $ | 52,182 | 3.68 | % | $ | 1,583,569 | $ | 45,467 | 3.84 | % | ||||||||||||
Securities
|
172,491 | 1,026 | 0.80 | % | 124,429 | 684 | 0.73 | % | ||||||||||||||||
Federal Home Loan Bank of Boston stock
|
15,218 | 142 | 1.25 | % | 8,524 | 25 | 0.39 | % | ||||||||||||||||
Federal funds and other earning assets
|
3,913 | 12 | 0.41 | % | 9,513 | 13 | 0.18 | % | ||||||||||||||||
Total interest-earning assets
|
2,088,390 | 53,362 | 3.42 | % | 1,726,035 | 46,189 | 3.58 | % | ||||||||||||||||
Noninterest-earning assets
|
123,580 | 121,784 | ||||||||||||||||||||||
Total assets
|
$ | 2,211,970 | $ | 1,847,819 | ||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
NOW accounts
|
$ | 374,084 | $ | 695 | 0.25 | % | $ | 268,483 | $ | 466 | 0.23 | % | ||||||||||||
Money market
|
410,066 | 2,186 | 0.71 | % | 354,291 | 2,105 | 0.79 | % | ||||||||||||||||
Savings accounts
|
198,978 | 154 | 0.10 | % | 180,490 | 237 | 0.18 | % | ||||||||||||||||
Certificates of deposit
|
334,037 | 2,215 | 0.89 | % | 355,934 | 2,638 | 0.99 | % | ||||||||||||||||
Total interest-bearing deposits
|
1,317,165 | 5,250 | 0.53 | % | 1,159,198 | 5,446 | 0.63 | % | ||||||||||||||||
Federal Home Loan Bank of Boston advances
|
237,576 | 1,166 | 0.66 | % | 74,386 | 1,253 | 2.25 | % | ||||||||||||||||
Repurchase agreement borrowings
|
21,000 | 538 | 3.43 | % | 21,000 | 532 | 3.39 | % | ||||||||||||||||
Repurchase liabilities
|
57,984 | 109 | 0.25 | % | 53,106 | 136 | 0.34 | % | ||||||||||||||||
Total interest-bearing liabilities
|
1,633,725 | 7,063 | 0.58 | % | 1,307,690 | 7,367 | 0.75 | % | ||||||||||||||||
Noninterest-bearing deposits
|
308,112 | 256,830 | ||||||||||||||||||||||
Other noninterest-bearing liabilities
|
36,664 | 45,876 | ||||||||||||||||||||||
Total liabilities
|
1,978,501 | 1,610,396 | ||||||||||||||||||||||
Stockholders' equity
|
233,469 | 237,423 | ||||||||||||||||||||||
Total liabilities and stockholders' equity
|
$ | 2,211,970 | $ | 1,847,819 | ||||||||||||||||||||
Net interest income
|
$ | 46,299 | $ | 38,822 | ||||||||||||||||||||
Net interest rate spread (1)
|
2.84 | % | 2.83 | % | ||||||||||||||||||||
Net interest-earning assets (2)
|
$ | 454,665 | $ | 418,345 | ||||||||||||||||||||
Net interest margin (3)
|
2.96 | % | 3.01 | % | ||||||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities
|
||||||||||||||||||||||||
127.83 | % | 131.99 | % | |||||||||||||||||||||
(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
|
||||||||||||||||||||
September 30, |
June 30,
|
March 31,
|
December 31, | September 30, | ||||||||||||||||
(Dollars in thousands, except per share data)
|
2014
|
2014
|
2014
|
2013
|
2013
|
|||||||||||||||
Net Income
|
$ | 2,506 | $ | 2,190 | $ | 1,492 | $ | 1,134 | $ | 865 | ||||||||||
Adjustments:
|
||||||||||||||||||||
Less: Prepayment penalty fees
|
- | (185 | ) | - | (144 | ) | - | |||||||||||||
Less: Net gain on sales of investments
|
- | - | - | - | (304 | ) | ||||||||||||||
Total core adjustments before taxes
|
- | (185 | ) | - | (144 | ) | (304 | ) | ||||||||||||
Tax benefit - 34% rate
|
- | 63 | - | 49 | 103 | |||||||||||||||
Total core adjustments after taxes
|
- | (122 | ) | - | (95 | ) | (201 | ) | ||||||||||||
Total core net income
|
$ | 2,506 | $ | 2,068 | $ | 1,492 | $ | 1,039 | $ | 664 | ||||||||||
Total net interest income
|
$ | 15,985 | $ | 15,564 | $ | 14,750 | $ | 14,331 | $ | 13,283 | ||||||||||
Less: Prepayment penalty fees
|
- | (185 | ) | - | (144 | ) | - | |||||||||||||
Total core net interest income
|
$ | 15,985 | $ | 15,379 | $ | 14,750 | $ | 14,187 | $ | 13,283 | ||||||||||
Total noninterest income
|
$ | 2,778 | $ | 2,066 | $ | 1,762 | $ | 2,183 | $ | 2,182 | ||||||||||
Less: Net gain on sales of investments
|
- | - | - | - | (304 | ) | ||||||||||||||
Total core noninterest income
|
$ | 2,778 | $ | 2,066 | $ | 1,762 | $ | 2,183 | $ | 1,878 | ||||||||||
Total noninterest expense
|
$ | 14,219 | $ | 14,254 | $ | 13,960 | $ | 14,398 | $ | 14,110 | ||||||||||
Total core noninterest expense
|
$ | 14,219 | $ | 14,254 | $ | 13,960 | $ | 14,398 | $ | 14,110 | ||||||||||
Core earnings per common share, diluted
|
$ | 0.17 | $ | 0.14 | $ | 0.10 | $ | 0.07 | $ | 0.04 | ||||||||||
Core return on assets (annualized)
|
0.43 | % | 0.38 | % | 0.28 | % | 0.20 | % | 0.14 | % | ||||||||||
Core return on equity (annualized)
|
4.27 | % | 3.56 | % | 2.56 | % | 1.80 | % | 1.14 | % | ||||||||||
Efficiency ratio (1)
|
75.78 | % | 81.71 | % | 84.54 | % | 87.95 | % | 93.07 | % | ||||||||||
Tangible book value (2)
|
$ | 14.56 | $ | 14.39 | $ | 14.22 | $ | 14.11 | $ | 13.88 | ||||||||||
(1) Represents core noninterest expense divided by the sum of core net interest income and core noninterest income.
|
||||||||||||||||||||
(2) 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.
|