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))
|
Emerging growth company
|
☐
|
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
|
☐
|
TABLE OF CONTENTS
|
|
Item 2.02
|
Results of Operations and Financial Conditions
|
Item 9.01
|
Financial Statements and Exhibits
|
SIGNATURES
|
|
EXHIBIT INDEX
|
|
Press Release
|
Item 2.02
|
Results of Operations and Financial Conditions
|
On July 18, 2018, First Connecticut Bancorp, Inc., the holding company for Farmington Bank, issued a Press Release describing its results of operations for the second quarter ended June 30, 2018.
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
|
Press Release dated July 18, 2018.
|
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
|
|
July 18, 2018
|
By: /s/ John J. Patrick, Jr.
|
John J. Patrick, Jr.
|
|
Chairman, President and
|
|
and Chief Executive Officer
|
Exhibit Number
|
Description
|
Press Release dated July 18, 2018.
|
·
|
Net interest income increased $1.1 million to $22.0 million in the second quarter of 2018 compared to the linked quarter and increased $2.2 million compared to the second quarter of 2017.
|
·
|
Organic loan growth remained strong during the second quarter of 2018 as loans increased $106.6 million to $2.9 billion at June 30, 2018 primarily due to an $81.9 million increase in residential real estate loans. Loans increased $256.7 million or 10% from a year ago.
|
·
|
Asset quality remained strong as loan delinquencies 30 days and greater represented 0.44% of total loans at June 30, 2018 compared to 0.46% of total loans at March 31, 2018 and 0.60% of total loans at June 30, 2017. Non-accrual loans represented 0.41% of total loans at June 30, 2018 compared to 0.46% of total loans at March 31, 2018 and 0.60% of total loans at June 30, 2017.
|
·
|
Overall deposits remained flat at $2.4 billion in the second quarter of 2018 compared to the linked quarter and increased $198.8 million or 9% from a year ago.
|
·
|
Loans to deposits ratio was 120% for the quarter ended June 30, 2018 compared to 115% in the linked quarter and 119% in the second quarter of 2017.
|
·
|
Checking accounts grew by 7% or 4,023 net new accounts from a year ago.
|
·
|
Net interest margin was 2.90% in the second quarter of 2018 and in the linked quarter and 2.92% in the prior year quarter.
|
·
|
Efficiency ratio was 63.96% in the second quarter of 2018 compared to 67.54% in the linked quarter and 66.31% in the prior year quarter.
|
·
|
Noninterest expense to average assets was 2.01% in the second quarter of 2018 compared to 2.10% in the linked quarter and 2.12% in the prior year quarter.
|
·
|
Tangible book value per share was $17.60 for the quarter ended June 30, 2018 compared to $17.32 on a linked quarter basis and $16.86 at June 30, 2017.
|
·
|
The allowance for loan losses represented 0.78% of total loans at June 30, 2018 compared to 0.80% of total loans at March 31, 2018 and 0.83% at June 30, 2017.
|
·
|
The Company paid a quarterly cash dividend of $0.17 per share during the second quarter, an increase of $0.01 compared to the linked quarter and an increase of $0.05 from a year ago.
|
·
|
Net interest income increased $1.1 million to $22.0 million in the second quarter of 2018 compared to the linked quarter primarily due to a $106.5 million increase in the average loans balance and a 8 basis point increase in the loan yield to 3.84% offset by a $939,000 increase in interest expense.
|
·
|
Net interest margin was 2.90% in both the second quarter of 2018 and in the linked quarter.
|
·
|
The cost of interest-bearing liabilities increased 10 basis points to 1.07% in the second quarter of 2018 compared to 0.97% in the linked quarter.
|
·
|
Provision for loan losses was $69,000 for the second quarter of 2018 compared to $465,000 for the linked quarter.
|
·
|
Net charge-offs in the quarter were $17,000 or 0.00% to average loans (annualized) compared to $293,000 or 0.04% to average loans (annualized) in the linked quarter.
|
·
|
The allowance for loan losses represented 0.78% of total loans at June 30, 2018 and 0.80% of total loans at March 31, 2018.
|
·
|
Total noninterest income increased $117,000 to $3.3 million in the second quarter of 2018 compared to $3.1 million in the linked quarter.
|
·
|
Other noninterest income includes swap fees totaling $574,000 in the second quarter of 2018 compared to $624,000 in the linked quarter.
|
·
|
Noninterest expense increased $780,000 to $17.0 million in the second quarter of 2018 compared to the linked quarter primarily due to increases in other operating expenses.
|
·
|
Other operating expenses increased to $3.9 million primarily due to a $451,000 other real estate owned writedown, a $211,000 software termination buyout fee and $210,000 in acquisition related expenses.
|
·
|
Net interest income increased $2.2 million or 11% to $22.0 million in the second quarter of 2018 compared to the prior year quarter due primarily to a $249.1 million increase in the average loans balance and a 19 basis point increase in the loans yield to 3.84% offset by a $2.2 million increase in interest expense.
|
·
|
Net interest margin was 2.90% in the second quarter of 2018 compared to 2.92% in the prior year quarter. The Tax Act negatively affected the net interest margin by 4 basis points on a tax-equivalent basis in the second quarter of 2018.
|
·
|
The cost of interest-bearing liabilities increased 28 basis points to 1.07% in the second quarter of 2018 compared to 0.79% in the prior year quarter.
|
·
|
Provision for loan losses was $69,000 for the second quarter of 2018 compared to $710,000 for the prior year quarter.
|
·
|
Net charge-offs in the quarter were $17,000 or 0.00% to average loans (annualized) compared to $22,000 or 0.00% to average loans (annualized) in the prior year quarter.
|
·
|
The allowance for loan losses represented 0.78% of total loans at June 30, 2018 and 0.83% of total loans at June 30, 2018.
|
·
|
Total noninterest income was $3.3 million in the second quarter of 2018 compared to $3.9 million in the prior year quarter.
|
·
|
Net gain on loans sold decreased to $341,000 from $711,000 primarily due to a decrease in volume of loans sold.
|
·
|
Bank owned life insurance income decreased $257,000 primarily due to receiving $271,000 in death benefit proceeds in the prior year quarter.
|
·
|
Other noninterest income includes swap fees totaling $574,000 compared to $562,000 in the prior year quarter.
|
·
|
Noninterest expense increased $1.1 million to $17.0 million in the second quarter of 2018 compared to the prior year quarter primarily due to a $1.1 million increase in other operating expenses.
|
·
|
Other operating expenses increased $1.1 million to $3.9 million primarily due to a $451,000 other real estate owned writedown, a $211,000 software termination buyout fee and $210,000 in acquisition related expenses.
|
·
|
Total assets increased $283.7 million or 10% at June 30, 2018 to $3.3 billion compared to $3.0 billion at June 30, 2017, reflecting a $256.1 million increase in net loans.
|
·
|
Our investment portfolio totaled $185.0 million at June 30, 2018 compared to $156.2 million at June 30, 2017, an increase of $28.8 million.
|
·
|
Net loans increased $256.1 million or 10% at June 30, 2018 to $2.9 billion compared to $2.6 billion at June 30, 2017 due to our continued focus on commercial and residential lending.
|
·
|
Deposits increased $198.8 million or 9% to $2.4 billion at June 30, 2018 compared to $2.2 billion at June 30, 2017 primarily due to an increase in retail deposits as we continue to develop and grow relationships in the geographical areas we serve. We had municipal deposit balances totaling $354.5 million and $351.3 million at June 30, 2018 and 2017, respectively.
|
·
|
Federal Home Loan Bank of Boston advances increased $68.0 million to $457.5 million at June 30, 2018 compared to $389.5 million at June 30, 2017.
|
·
|
At June 30, 2018 the allowance for loan losses represented 0.78% of total loans and 190.12% of non-accrual loans, compared to 0.80% of total loans and 175.73% of non-accrual loans at March 31, 2018 and 0.83% of total loans and 137.54% of non-accrual loans at June 30, 2017.
|
·
|
Loan delinquencies 30 days and greater represented 0.44% of total loans at June 30, 2018 compared to 0.46% of total loans at March 31, 2018 and 0.60% of total loans at June 30, 2017.
|
·
|
Non-accrual loans represented 0.41% of total loans at June 30, 2018 compared to 0.46% of total loans at March 31, 2018 and 0.60% of total loans at June 30, 2017.
|
·
|
Net charge-offs in the quarter were $17,000 or 0.00% to average loans (annualized) compared to $293,000 or 0.04% to average loans (annualized) in the linked quarter and $22,000 or 0.00% 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 12.23% at June 30, 2018.
|
·
|
Tangible book value per share is $17.60 compared to $17.32 on a linked quarter basis and $16.86 at June 30, 2017.
|
·
|
The Company had 600,945 shares remaining to repurchase at June 30, 2018 from prior regulatory approval. Repurchased shares are held as treasury stock and will be available for general corporate purposes.
|
·
|
At June 30, 2018, 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 and pre-approved unsecured lines of credit.
|
At or for the Three Months Ended
|
||||||||||
June 30,
|
March 31,
|
December 31,
|
September 30,
|
June 30,
|
||||||
(Dollars in thousands, except per share data)
|
2018
|
2018
|
2017
|
2017
|
2017
|
|||||
Selected Financial Condition Data:
|
||||||||||
Total assets
|
$ 3,275,838
|
$ 3,137,645
|
$ 3,055,050
|
$ 3,001,679
|
$ 2,992,126
|
|||||
Cash and cash equivalents
|
36,968
|
26,452
|
35,350
|
44,475
|
46,551
|
|||||
Debt securities held-to-maturity, at amortized cost
|
86,981
|
80,977
|
74,985
|
56,848
|
50,655
|
|||||
Debt securities available-for-sale, at fair value
|
98,010
|
89,107
|
80,358
|
80,355
|
105,503
|
|||||
Federal Home Loan Bank of Boston stock, at cost
|
22,195
|
17,665
|
15,537
|
15,954
|
19,583
|
|||||
Loans, net
|
2,900,714
|
2,794,187
|
2,725,633
|
2,676,411
|
2,644,618
|
|||||
Deposits
|
2,443,806
|
2,443,357
|
2,434,100
|
2,382,551
|
2,245,004
|
|||||
Federal Home Loan Bank of Boston advances
|
457,457
|
355,457
|
255,458
|
271,458
|
389,458
|
|||||
Total stockholders' equity
|
281,864
|
276,861
|
272,459
|
273,193
|
268,836
|
|||||
Allowance for loan losses
|
22,672
|
22,620
|
22,448
|
22,202
|
22,037
|
|||||
Non-accrual loans
|
11,925
|
12,872
|
15,792
|
15,305
|
16,022
|
|||||
Non-performing assets (1)
|
13,638
|
15,036
|
15,792
|
15,305
|
16,022
|
|||||
Impaired loans
|
28,814
|
28,383
|
30,194
|
29,924
|
30,007
|
|||||
Loan delinquencies 30 days and greater
|
12,797
|
13,036
|
17,254
|
17,808
|
16,059
|
|||||
Selected Operating Data:
|
||||||||||
Interest income
|
$ 28,471
|
$ 26,463
|
$ 25,551
|
$ 25,604
|
$ 24,116
|
|||||
Interest expense
|
6,480
|
5,541
|
5,023
|
4,756
|
4,293
|
|||||
Net interest income
|
21,991
|
20,922
|
20,528
|
20,848
|
19,823
|
|||||
Provision for loan losses
|
69
|
465
|
299
|
217
|
710
|
|||||
Net interest income after provision for loan losses
|
21,922
|
20,457
|
20,229
|
20,631
|
19,113
|
|||||
Noninterest income
|
3,262
|
3,145
|
3,158
|
3,300
|
3,876
|
|||||
Noninterest expense
|
17,019
|
16,239
|
15,387
|
15,919
|
15,878
|
|||||
Income before income taxes
|
8,165
|
7,363
|
8,000
|
8,012
|
7,111
|
|||||
Income tax expense
|
1,435
|
1,352
|
7,503
|
2,415
|
2,109
|
|||||
Net income
|
$ 6,730
|
$ 6,011
|
$ 497
|
$ 5,597
|
$ 5,002
|
|||||
Performance Ratios (annualized):
|
||||||||||
Return on average assets
|
0.84%
|
0.78%
|
0.07%
|
0.74%
|
0.68%
|
|||||
Core return on average assets
|
0.92%
|
0.78%
|
0.73%
|
0.73%
|
0.68%
|
|||||
Return on average equity
|
9.56%
|
8.68%
|
0.72%
|
8.17%
|
7.43%
|
|||||
Core return on average equity
|
10.53%
|
8.65%
|
7.86%
|
8.01%
|
7.36%
|
|||||
Net interest rate spread (2)
|
2.67%
|
2.69%
|
2.71%
|
2.77%
|
2.74%
|
|||||
Net interest rate margin (3)
|
2.90%
|
2.90%
|
2.91%
|
2.95%
|
2.92%
|
|||||
Non-interest expense to average assets (4)
|
2.01%
|
2.10%
|
2.05%
|
2.11%
|
2.12%
|
|||||
Efficiency ratio (5)
|
63.96%
|
67.54%
|
65.06%
|
66.38%
|
66.31%
|
|||||
Average interest-earning assets to average
|
||||||||||
interest-bearing liabilities
|
127.48%
|
128.49%
|
129.44%
|
128.50%
|
128.46%
|
|||||
Loans to deposits
|
120%
|
115%
|
113%
|
113%
|
119%
|
|||||
Asset Quality Ratios:
|
||||||||||
Allowance for loan losses as a percent of total loans
|
0.78%
|
0.80%
|
0.82%
|
0.82%
|
0.83%
|
|||||
Allowance for loan losses as a percent of
|
||||||||||
non-accrual loans
|
190.12%
|
175.73%
|
142.15%
|
145.06%
|
137.54%
|
|||||
Net charge-offs (recoveries) to average loans (annualized)
|
0.00%
|
0.04%
|
0.01%
|
0.01%
|
0.00%
|
|||||
Non-accrual loans as a percent of total loans
|
0.41%
|
0.46%
|
0.58%
|
0.57%
|
0.60%
|
|||||
Non-performing assets as a percent of total assets
|
0.42%
|
0.48%
|
0.52%
|
0.51%
|
0.54%
|
|||||
Loan delinquencies 30 days and greater as a
|
||||||||||
percent of total loans
|
0.44%
|
0.46%
|
0.63%
|
0.66%
|
0.60%
|
|||||
Per Share Related Data:
|
||||||||||
Basic earnings per share
|
$ 0.44
|
$ 0.39
|
$ 0.03
|
$ 0.37
|
$ 0.33
|
|||||
Diluted earnings per share
|
$ 0.42
|
$ 0.38
|
$ 0.03
|
$ 0.35
|
$ 0.32
|
|||||
Dividends declared per share
|
$ 0.17
|
$ 0.16
|
$ 0.15
|
$ 0.14
|
$ 0.12
|
|||||
Tangible book value (6)
|
$ 17.60
|
$ 17.32
|
$ 17.08
|
$ 17.12
|
$ 16.86
|
|||||
Common stock shares outstanding
|
16,012,664
|
15,984,932
|
15,952,946
|
15,952,946
|
15,942,614
|
|||||
Weighted-average basic shares outstanding
|
15,260,635
|
15,214,839
|
15,174,285
|
15,143,379
|
15,107,190
|
|||||
Weighted-average diluted shares outstanding
|
15,942,471
|
15,900,088
|
15,882,690
|
15,820,659
|
15,791,112
|
(1)
|
Consists of non-accruing loans including non-accruing loans identified as troubled debt restructurings, loans past due more than 90 days and still accruing interest and other real estate owned.
|
(2)
|
Represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities on a tax-equivalent basis.
|
(3)
|
Represents tax-equivalent net interest income as a percent of average interest-earning assets.
|
(4)
|
Represents core noninterest expense annualized divided by average assets.
|
(5)
|
Represents core noninterest expense divided by the sum of core net interest income and core noninterest income. See "Reconciliation of Non-GAAP Financial Measures" table.
|
(6)
|
Represents ending stockholders' equity less goodwill and intangible assets (excluding mortgage servicing rights) divided by ending common shares outstanding.
|
At or for the Three Months Ended
|
||||||||||
June 30,
|
March 31,
|
December 31,
|
September 30,
|
June 30,
|
||||||
(Dollars in thousands)
|
2018
|
2018
|
2017
|
2017
|
2017
|
|||||
Capital Ratios:
|
||||||||||
Equity to total assets at end of period
|
8.60%
|
8.82%
|
8.93%
|
9.10%
|
8.98%
|
|||||
Average equity to average assets
|
8.76%
|
8.96%
|
9.23%
|
9.10%
|
9.18%
|
|||||
Total Capital (to Risk Weighted Assets)
|
12.23%
|
*
|
12.38%
|
12.38%
|
12.50%
|
12.45%
|
||||
Tier I Capital (to Risk Weighted Assets)
|
11.34%
|
*
|
11.47%
|
11.45%
|
11.57%
|
11.53%
|
||||
Common Equity Tier I Capital
|
11.34%
|
*
|
11.47%
|
11.45%
|
11.57%
|
11.53%
|
||||
Tier I Leverage Capital (to Average Assets)
|
8.99%
|
*
|
9.17%
|
9.23%
|
9.23%
|
9.36%
|
||||
Total equity to total average assets
|
8.78%
|
8.96%
|
9.05%
|
9.07%
|
9.17%
|
|||||
* Estimated
|
||||||||||
Loans and Allowance for Loan Losses:
|
||||||||||
Real estate
|
||||||||||
Residential
|
$ 1,141,015
|
$ 1,059,116
|
$ 989,366
|
$ 969,679
|
$ 962,732
|
|||||
Commercial
|
1,085,903
|
1,071,485
|
1,063,755
|
1,028,930
|
1,020,560
|
|||||
Construction
|
94,615
|
98,469
|
90,059
|
86,713
|
74,063
|
|||||
Commercial
|
435,034
|
417,660
|
429,116
|
436,172
|
431,243
|
|||||
Home equity line of credit
|
155,853
|
159,030
|
165,070
|
166,791
|
168,278
|
|||||
Other
|
5,039
|
5,240
|
5,650
|
5,733
|
5,410
|
|||||
Total loans
|
2,917,459
|
2,811,000
|
2,743,016
|
2,694,018
|
2,662,286
|
|||||
Net deferred loan costs
|
5,927
|
5,807
|
5,065
|
4,595
|
4,369
|
|||||
Loans
|
2,923,386
|
2,816,807
|
2,748,081
|
2,698,613
|
2,666,655
|
|||||
Allowance for loan losses
|
(22,672)
|
(22,620)
|
(22,448)
|
(22,202)
|
(22,037)
|
|||||
Loans, net
|
$ 2,900,714
|
$ 2,794,187
|
$ 2,725,633
|
$ 2,676,411
|
$ 2,644,618
|
|||||
Deposits:
|
||||||||||
Noninterest-bearing demand deposits
|
$ 478,319
|
$ 443,555
|
$ 473,428
|
$ 437,372
|
$ 445,049
|
|||||
Interest-bearing
|
||||||||||
NOW accounts
|
570,952
|
625,362
|
623,135
|
652,631
|
547,868
|
|||||
Money market
|
564,810
|
587,389
|
559,297
|
549,674
|
522,070
|
|||||
Savings accounts
|
250,194
|
242,377
|
237,380
|
233,330
|
241,898
|
|||||
Certificates of deposit
|
579,531
|
544,674
|
540,860
|
509,544
|
488,119
|
|||||
Total interest-bearing deposits
|
1,965,487
|
1,999,802
|
1,960,672
|
1,945,179
|
1,799,955
|
|||||
Total deposits
|
$ 2,443,806
|
$ 2,443,357
|
$ 2,434,100
|
$ 2,382,551
|
$ 2,245,004
|
|||||
June 30,
|
March 31,
|
June 30,
|
|||||||||
2018
|
2018
|
2017
|
|||||||||
(Dollars in thousands)
|
|||||||||||
Assets
|
|||||||||||
Cash and due from banks
|
$ 36,028
|
$ 25,385
|
$ 37,308
|
||||||||
Interest bearing deposits with other institutions
|
940
|
1,067
|
9,243
|
||||||||
Total cash and cash equivalents
|
36,968
|
26,452
|
46,551
|
||||||||
Debt securities held-to-maturity, at amortized cost
|
86,981
|
80,977
|
50,655
|
||||||||
Debt securities available-for-sale, at fair value
|
98,010
|
89,107
|
105,503
|
||||||||
Loans held for sale
|
5,331
|
5,980
|
2,537
|
||||||||
Loans (1)
|
2,923,386
|
2,816,807
|
2,666,655
|
||||||||
Allowance for loan losses
|
(22,672)
|
(22,620)
|
(22,037)
|
||||||||
Loans, net
|
2,900,714
|
2,794,187
|
2,644,618
|
||||||||
Premises and equipment, net
|
16,965
|
17,007
|
17,609
|
||||||||
Federal Home Loan Bank of Boston stock, at cost
|
22,195
|
17,665
|
19,583
|
||||||||
Accrued income receivable
|
9,913
|
9,043
|
7,939
|
||||||||
Bank-owned life insurance
|
58,193
|
57,852
|
56,802
|
||||||||
Deferred income taxes
|
7,724
|
7,763
|
13,970
|
||||||||
Prepaid expenses and other assets
|
32,844
|
31,612
|
26,359
|
||||||||
Total assets
|
$ 3,275,838
|
$ 3,137,645
|
$ 2,992,126
|
||||||||
Liabilities and Stockholders' Equity
|
|||||||||||
Deposits
|
|||||||||||
Interest-bearing
|
$ 1,965,487
|
$ 1,999,802
|
$ 1,799,955
|
||||||||
Noninterest-bearing
|
478,319
|
443,555
|
445,049
|
||||||||
2,443,806
|
2,443,357
|
2,245,004
|
|||||||||
Federal Home Loan Bank of Boston advances
|
457,457
|
355,457
|
389,458
|
||||||||
Repurchase agreement borrowings
|
-
|
-
|
10,500
|
||||||||
Repurchase liabilities
|
40,374
|
16,851
|
36,101
|
||||||||
Accrued expenses and other liabilities
|
52,337
|
45,119
|
42,227
|
||||||||
Total liabilities
|
2,993,974
|
2,860,784
|
2,723,290
|
||||||||
Stockholders' Equity
|
|||||||||||
Common stock
|
181
|
181
|
181
|
||||||||
Additional paid-in-capital
|
186,776
|
186,269
|
184,871
|
||||||||
Unallocated common stock held by ESOP
|
(9,043)
|
(9,290)
|
(10,053)
|
||||||||
Treasury stock, at cost
|
(28,802)
|
(29,204)
|
(29,770)
|
||||||||
Retained earnings
|
140,228
|
136,303
|
129,972
|
||||||||
Accumulated other comprehensive loss
|
(7,476)
|
(7,398)
|
(6,365)
|
||||||||
Total stockholders' equity
|
281,864
|
276,861
|
268,836
|
||||||||
Total liabilities and stockholders' equity
|
$ 3,275,838
|
$ 3,137,645
|
$ 2,992,126
|
(1)
|
Loans include net deferred fees and unamortized premiums of $5.9 million, $5.8 million and $4.4 million at June 30, 2018, March 31, 2018 and June 30, 2017, respectively.
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
June 30,
|
March 31,
|
June 30,
|
June 30,
|
||||||||||||
(Dollars in thousands, except per share data)
|
2018
|
2018
|
2017
|
2018
|
2017
|
||||||||||
Interest income
|
|||||||||||||||
Interest and fees on loans
|
|||||||||||||||
Mortgage
|
$ 21,560
|
$ 19,927
|
$ 18,056
|
$ 41,487
|
$ 35,614
|
||||||||||
Other
|
5,672
|
5,465
|
5,209
|
11,137
|
10,156
|
||||||||||
Interest and dividends on investments
|
|||||||||||||||
United States Government and agency obligations
|
954
|
797
|
598
|
1,751
|
1,072
|
||||||||||
Other bonds
|
-
|
-
|
7
|
-
|
14
|
||||||||||
Corporate stocks
|
258
|
241
|
216
|
499
|
415
|
||||||||||
Other interest income
|
27
|
33
|
30
|
60
|
57
|
||||||||||
Total interest income
|
28,471
|
26,463
|
24,116
|
54,934
|
47,328
|
||||||||||
Interest expense
|
|||||||||||||||
Deposits
|
4,702
|
4,339
|
3,026
|
9,041
|
5,937
|
||||||||||
Interest on borrowed funds
|
1,771
|
1,119
|
1,164
|
2,890
|
2,113
|
||||||||||
Interest on repo borrowings
|
-
|
74
|
96
|
74
|
191
|
||||||||||
Interest on repurchase liabilities
|
7
|
9
|
7
|
16
|
14
|
||||||||||
Total interest expense
|
6,480
|
5,541
|
4,293
|
12,021
|
8,255
|
||||||||||
Net interest income
|
21,991
|
20,922
|
19,823
|
42,913
|
39,073
|
||||||||||
Provision for loan losses
|
69
|
465
|
710
|
534
|
1,035
|
||||||||||
Net interest income
|
|||||||||||||||
after provision for loan losses
|
21,922
|
20,457
|
19,113
|
42,379
|
38,038
|
||||||||||
Noninterest income
|
|||||||||||||||
Fees for customer services
|
1,718
|
1,657
|
1,572
|
3,375
|
3,078
|
||||||||||
Net gain on loans sold
|
341
|
288
|
711
|
629
|
1,127
|
||||||||||
Brokerage and insurance fee income
|
63
|
58
|
55
|
121
|
105
|
||||||||||
Bank owned life insurance income
|
341
|
341
|
598
|
682
|
917
|
||||||||||
Other
|
799
|
801
|
940
|
1,600
|
1,814
|
||||||||||
Total noninterest income
|
3,262
|
3,145
|
3,876
|
6,407
|
7,041
|
||||||||||
Noninterest expense
|
|||||||||||||||
Salaries and employee benefits (1)
|
9,704
|
9,772
|
9,848
|
19,476
|
18,986
|
||||||||||
Occupancy expense
|
1,315
|
1,329
|
1,187
|
2,644
|
2,500
|
||||||||||
Furniture and equipment expense
|
947
|
948
|
985
|
1,895
|
1,969
|
||||||||||
FDIC assessment
|
422
|
424
|
410
|
846
|
838
|
||||||||||
Marketing
|
767
|
605
|
708
|
1,372
|
1,275
|
||||||||||
Other operating expenses (1)
|
3,864
|
3,161
|
2,740
|
7,025
|
5,462
|
||||||||||
Total noninterest expense
|
17,019
|
16,239
|
15,878
|
33,258
|
31,030
|
||||||||||
Income before income taxes
|
8,165
|
7,363
|
7,111
|
15,528
|
14,049
|
||||||||||
Income tax expense
|
1,435
|
1,352
|
2,109
|
2,787
|
3,954
|
||||||||||
Net income
|
$ 6,730
|
$ 6,011
|
$ 5,002
|
$ 12,741
|
$ 10,095
|
||||||||||
Earnings per share:
|
|||||||||||||||
Basic
|
$ 0.44
|
$ 0.39
|
$ 0.33
|
$ 0.83
|
$ 0.67
|
||||||||||
Diluted
|
0.42
|
0.38
|
0.32
|
0.80
|
0.64
|
||||||||||
Weighted average shares outstanding:
|
|||||||||||||||
Basic
|
15,260,635
|
15,214,839
|
15,107,190
|
15,237,994
|
15,087,721
|
||||||||||
Diluted
|
15,942,471
|
15,900,088
|
15,791,112
|
15,921,527
|
15,741,500
|
(1)
|
Prior period presentation reflects a reclassification of certain pension related costs between salaries and employee benefits and other operating expenses in accordance with ASU 2017-07.
|
For The Three Months Ended
|
|||||||||||
June 30, 2018
|
March 31, 2018
|
June 30, 2017
|
|||||||||
Average Balance
|
Interest and Dividends (1)
|
Yield/
Cost
|
Average Balance
|
Interest and Dividends (1)
|
Yield/
Cost
|
Average Balance
|
Interest and Dividends (1)
|
Yield/
Cost
|
|||
(Dollars in thousands)
|
|||||||||||
Interest-earning assets:
|
|||||||||||
Loans
|
$ 2,878,570
|
$ 27,537
|
3.84%
|
$ 2,772,063
|
$ 25,692
|
3.76%
|
$ 2,629,493
|
$ 23,900
|
3.65%
|
||
Securities
|
187,681
|
1,010
|
2.16%
|
175,912
|
851
|
1.96%
|
157,230
|
659
|
1.68%
|
||
Federal Home Loan Bank of Boston stock
|
19,566
|
202
|
4.14%
|
14,986
|
187
|
5.06%
|
18,056
|
162
|
3.60%
|
||
Federal funds and other earning assets
|
915
|
27
|
11.84%
|
2,140
|
33
|
6.25%
|
7,715
|
30
|
1.56%
|
||
Total interest-earning assets
|
3,086,732
|
28,776
|
3.74%
|
2,965,101
|
26,763
|
3.66%
|
2,812,494
|
24,751
|
3.53%
|
||
Noninterest-earning assets
|
125,358
|
126,282
|
120,308
|
||||||||
Total assets
|
$ 3,212,090
|
$ 3,091,383
|
$ 2,932,802
|
||||||||
Interest-bearing liabilities:
|
|||||||||||
NOW accounts
|
$ 609,571
|
$ 1,072
|
0.71%
|
$ 664,211
|
$ 1,145
|
0.70%
|
$ 595,350
|
$ 574
|
0.39%
|
||
Money market
|
584,667
|
1,388
|
0.95%
|
568,362
|
1,317
|
0.94%
|
525,266
|
979
|
0.75%
|
||
Savings accounts
|
247,015
|
66
|
0.11%
|
234,660
|
63
|
0.11%
|
242,009
|
63
|
0.10%
|
||
Certificates of deposit
|
581,263
|
2,176
|
1.50%
|
538,189
|
1,814
|
1.37%
|
471,905
|
1,410
|
1.20%
|
||
Total interest-bearing deposits
|
2,022,516
|
4,702
|
0.93%
|
2,005,422
|
4,339
|
0.88%
|
1,834,530
|
3,026
|
0.66%
|
||
Federal Home Loan Bank of Boston Advances
|
372,128
|
1,771
|
1.91%
|
261,580
|
1,119
|
1.73%
|
315,665
|
1,164
|
1.48%
|
||
Repurchase agreement borrowings
|
-
|
-
|
0.00%
|
8,467
|
74
|
3.54%
|
10,500
|
96
|
3.67%
|
||
Repurchase liabilities
|
26,623
|
7
|
0.11%
|
32,104
|
9
|
0.11%
|
28,728
|
7
|
0.10%
|
||
Total interest-bearing liabilities
|
2,421,267
|
6,480
|
1.07%
|
2,307,573
|
5,541
|
0.97%
|
2,189,423
|
4,293
|
0.79%
|
||
Noninterest-bearing deposits
|
458,686
|
451,067
|
431,336
|
||||||||
Other noninterest-bearing liabilities
|
50,639
|
55,634
|
42,857
|
||||||||
Total liabilities
|
2,930,592
|
2,814,274
|
2,663,616
|
||||||||
Stockholders' equity
|
281,498
|
277,109
|
269,186
|
||||||||
Total liabilities and stockholders' equity
|
$ 3,212,090
|
$ 3,091,383
|
$ 2,932,802
|
||||||||
Tax-equivalent net interest income
|
$ 22,296
|
$ 21,222
|
$ 20,458
|
||||||||
Less: tax-equivalent adjustment
|
(305)
|
(300)
|
(635)
|
||||||||
Net interest income
|
$ 21,991
|
$ 20,922
|
$ 19,823
|
||||||||
Net interest rate spread (2)
|
2.67%
|
2.69%
|
2.74%
|
||||||||
Net interest-earning assets (3)
|
$ 665,465
|
$ 657,528
|
$ 623,071
|
||||||||
Net interest margin (4)
|
2.90%
|
2.90%
|
2.92%
|
Average interest-earning assets to average
interest-bearing liabilities
|
127.48%
|
128.49%
|
|
128.46%
|
(1)
|
On a fully-tax equivalent basis calculated using a federal income tax rate of 21% for three months ended June 30, 2018 and March 31, 2018 and 35% for the three months ended June 30, 2017.
|
(2)
|
Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities on a tax-equivalent basis.
|
(3)
|
Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
|
(4)
|
Net interest margin represents tax-equivalent net interest income divided by average total interest-earning assets.
|
For The Six Months Ended June 30,
|
|||||||
2018
|
2017
|
||||||
Average
Balance
|
Interest and Dividends (1)
|
Yield/
Cost
|
Average
Balance
|
Interest and Dividends (1)
|
Yield/
Cost
|
||
(Dollars in thousands)
|
|||||||
Interest-earning assets:
|
|||||||
Loans
|
$ 2,825,611
|
$ 53,229
|
3.80%
|
$ 2,603,041
|
$ 47,001
|
3.64%
|
|
Securities
|
181,592
|
1,861
|
2.07%
|
150,119
|
1,188
|
1.60%
|
|
Federal Home Loan Bank of Boston stock
|
17,289
|
389
|
4.54%
|
17,116
|
313
|
3.69%
|
|
Federal funds and other earning assets
|
1,524
|
60
|
7.94%
|
7,037
|
57
|
1.63%
|
|
Total interest-earning assets
|
3,026,016
|
55,539
|
3.70%
|
2,777,313
|
48,559
|
3.53%
|
|
Noninterest-earning assets
|
126,054
|
119,211
|
|||||
Total assets
|
$ 3,152,070
|
$ 2,896,524
|
|||||
Interest-bearing liabilities:
|
|||||||
NOW accounts
|
$ 636,740
|
$ 2,217
|
0.70%
|
$ 598,970
|
$ 1,102
|
0.37%
|
|
Money market
|
576,560
|
2,705
|
0.95%
|
527,326
|
1,949
|
0.75%
|
|
Savings accounts
|
240,872
|
129
|
0.11%
|
236,766
|
124
|
0.11%
|
|
Certificates of deposit
|
559,845
|
3,990
|
1.44%
|
469,393
|
2,762
|
1.19%
|
|
Total interest-bearing deposits
|
2,014,017
|
9,041
|
0.91%
|
1,832,455
|
5,937
|
0.65%
|
|
Federal Home Loan Bank of Boston Advances
|
317,159
|
2,890
|
1.84%
|
280,822
|
2,113
|
1.52%
|
|
Repurchase agreement borrowings
|
4,210
|
74
|
3.54%
|
10,500
|
191
|
3.67%
|
|
Repurchase liabilities
|
29,348
|
16
|
0.11%
|
26,866
|
14
|
0.11%
|
|
Total interest-bearing liabilities
|
2,364,734
|
12,021
|
1.03%
|
2,150,643
|
8,255
|
0.77%
|
|
Noninterest-bearing deposits
|
454,897
|
432,192
|
|||||
Other noninterest-bearing liabilities
|
53,123
|
46,352
|
|||||
Total liabilities
|
2,872,754
|
2,629,187
|
|||||
Stockholders' equity
|
279,316
|
267,337
|
|||||
Total liabilities and stockholders' equity
|
$ 3,152,070
|
$ 2,896,524
|
|||||
Tax-equivalent net interest income
|
$ 43,518
|
$ 40,304
|
|||||
Less: tax-equivalent adjustment
|
(605)
|
(1,231)
|
|||||
Net interest income
|
$ 42,913
|
$ 39,073
|
|||||
Net interest rate spread (2)
|
2.67%
|
2.76%
|
|||||
Net interest-earning assets (3)
|
$ 661,282
|
$ 626,670
|
|||||
Net interest margin (4)
|
2.90%
|
2.93%
|
|||||
Average interest-earning assets to average interest-bearing liabilities
|
|||||||
127.96%
|
129.14%
|
||||||
(1)
|
On a fully-tax equivalent basis calculated using a federal income tax rate of 21% for six months ended June 30, 2018 and 35% for the six months ended June 30, 2017.
|
(2)
|
Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities on a tax-equivalent basis.
|
(3)
|
Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
|
(4)
|
Net interest margin represents tax-equivalent net interest income divided by average total interest-earning assets.
|
At or for the Three Months Ended
|
|||||||||||
June 30,
|
March 31,
|
December 31,
|
September 30,
|
June 30,
|
|||||||
(Dollars in thousands, except per share data)
|
2018
|
2018
|
2017
|
2017
|
2017
|
||||||
Net Income
|
$ 6,730
|
$ 6,011
|
$ 497
|
$ 5,597
|
$ 5,002
|
||||||
Adjustments:
|
|||||||||||
Plus: Other real estate owned writedown
|
451
|
-
|
-
|
-
|
-
|
||||||
Plus: Software termination buyout fee
|
211
|
-
|
-
|
-
|
-
|
||||||
Plus: Acquisition related expenses
|
210
|
-
|
-
|
-
|
-
|
||||||
Plus: Severance expense
|
-
|
-
|
-
|
-
|
343
|
||||||
Less: Prepayment penalty fees
|
(8)
|
(25)
|
(36)
|
(165)
|
-
|
||||||
Less: Bank-owned life insurance proceeds
|
-
|
-
|
-
|
-
|
(271)
|
||||||
Total core adjustments before taxes
|
864
|
(25)
|
(36)
|
(165)
|
72
|
||||||
Tax (expense) benefit on core adjustments
|
(181)
|
5
|
13
|
58
|
(120)
|
||||||
Tax rate reduction due to Tax Cuts and Jobs Act
|
-
|
-
|
4,981
|
-
|
-
|
||||||
Total core adjustments after taxes
|
683
|
(20)
|
4,958
|
(107)
|
(48)
|
||||||
Total core net income
|
$ 7,413
|
$ 5,991
|
$ 5,455
|
$ 5,490
|
$ 4,954
|
||||||
Total net interest income
|
$ 21,991
|
$ 20,922
|
$ 20,528
|
$ 20,848
|
$ 19,823
|
||||||
Less: Prepayment penalty fees
|
(8)
|
(25)
|
(36)
|
(165)
|
-
|
||||||
Total core net interest income
|
$ 21,983
|
$ 20,897
|
$ 20,492
|
$ 20,683
|
$ 19,823
|
||||||
Total noninterest income
|
$ 3,262
|
$ 3,145
|
$ 3,158
|
$ 3,300
|
$ 3,876
|
||||||
Less: Bank-owned life insurance proceeds
|
-
|
-
|
-
|
-
|
(271)
|
||||||
Total core noninterest income
|
$ 3,262
|
$ 3,145
|
$ 3,158
|
$ 3,300
|
$ 3,605
|
||||||
Total noninterest expense
|
$ 17,019
|
$ 16,239
|
$ 15,387
|
$ 15,919
|
$ 15,878
|
||||||
Less: Other real estate owned writedown
|
(451)
|
-
|
-
|
-
|
-
|
||||||
Less: Software termination buyout fee
|
(211)
|
-
|
-
|
-
|
-
|
||||||
Less: Acquisition related expenses
|
(210)
|
-
|
-
|
-
|
-
|
||||||
Less: Severance expense
|
-
|
-
|
-
|
-
|
(343)
|
||||||
Total core noninterest expense
|
$ 16,147
|
$ 16,239
|
$ 15,387
|
$ 15,919
|
$ 15,535
|
||||||
Core earnings per common share, diluted
|
$ 0.46
|
$ 0.38
|
$ 0.34
|
$ 0.35
|
$ 0.31
|
||||||
Core net interest rate margin (1)
|
2.90%
|
2.90%
|
2.91%
|
2.93%
|
2.92%
|
||||||
Core return on average assets (annualized)
|
0.92%
|
0.78%
|
0.73%
|
0.73%
|
0.68%
|
||||||
Core return on average equity (annualized)
|
10.53%
|
8.68%
|
7.86%
|
8.01%
|
7.36%
|
||||||
Core non-interest expense to average assets (annualized)
|
2.01%
|
2.10%
|
2.05%
|
2.11%
|
2.12%
|
||||||
Efficiency ratio (2)
|
63.96%
|
67.54%
|
65.06%
|
66.38%
|
66.31%
|
||||||
Tangible book value (3)
|
$ 17.60
|
$ 17.32
|
$ 17.08
|
$ 17.12
|
$ 16.86
|
(1)
|
Represents tax-equivalent core net interest income as a percent of average interest-earning assets.
|
(2)
|
Represents core noninterest expense divided by the sum of core net 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.
|